Document:

Exhibit 4.1

 

 

 

 

SYMMETRICOM, INC.,

Issuer

 

 

31⁄4% Contingent Convertible Subordinated Notes due 2025

 

 

 

INDENTURE

 

 

 

Wells Fargo Bank, National Association,

Trustee

 

June 8, 2005

 

 

 

 

CROSS-REFERENCE TABLE*

 

	
  Trust Indenture Act Section

  	
  Indenture Section

  
	
  310

  	
  (a)(1)

  	
   

  	
  7.10

  
	
   

  	
  (a)(2)

  	
   

  	
  7.10

  
	
   

  	
  (a)(3)

  	
   

  	
  N.A.

  
	
   

  	
  (a)(4)

  	
   

  	
  N.A.

  
	
   

  	
  (a)(5)

  	
   

  	
  N.A.

  
	
   

  	
  (b)

  	
   

  	
  7.10

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  311

  	
  (a)

  	
   

  	
  7.11

  
	
   

  	
  (b)

  	
   

  	
  7.11

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  312

  	
  (a)

  	
   

  	
  N.A.

  
	
   

  	
  (b)

  	
   

  	
  12.03

  
	
   

  	
  (c)

  	
   

  	
  12.03

  
	
  313

  	
  (a)

  	
   

  	
  7.06

  
	
   

  	
  (b)

  	
   

  	
  7.06

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
   

  	
  (d)

  	
   

  	
  N.A.

  
	
  314

  	
  (a)

  	
   

  	
  4.02,
  4.03

  
	
   

  	
  (b)

  	
   

  	
  N.A.

  
	
   

  	
  (c)(1)

  	
   

  	
  N.A.

  
	
   

  	
  (c)(2)

  	
   

  	
  N.A.

  
	
   

  	
  (c)(3)

  	
   

  	
  N.A.

  
	
   

  	
  (d)

  	
   

  	
  N.A.

  
	
   

  	
  (e)

  	
   

  	
  N.A.

  
	
   

  	
  (f)

  	
   

  	
  N.A.

  
	
  315

  	
  (a)

  	
   

  	
  7.01(b)

  
	
   

  	
  (b)

  	
   

  	
  7.05

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
   

  	
  (d)

  	
   

  	
  7.01(c)

  
	
   

  	
  (e)

  	
   

  	
  6.11

  
	
  316

  	
  (a)(1)(A)

  	
   

  	
  6.05

  
	
   

  	
  (a)(1)(B)

  	
   

  	
  6.04

  
	
   

  	
  (a)(2)

  	
   

  	
  N.A.

  
	
   

  	
  (b)

  	
   

  	
  N.A.

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  317

  	
  (a)(1)

  	
   

  	
  N.A.

  
	
   

  	
  (a)(2)

  	
   

  	
  N.A.

  
	
   

  	
  (b)

  	
   

  	
  N.A.

  
	
  318

  	
  (a)

  	
   

  	
  N.A.

  

 

N.A. means not applicable.

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

 

i

 

TABLE OF CONTENTS

 

	
  ARTICLE 1

  DEFINITIONS AND INCORPORATION BY REFERENCE

  
	
   

  	
   

  
	
  Section 1.01 . Definitions

  	
   

  
	
  Section 1.02 . Other
  Definitions

  	
   

  
	
  Section 1.03 .
  Incorporation by Reference of Trust Indenture Act

  	
   

  
	
  Section 1.04 .
  Rules of Construction

  	
   

  
	
  Section 1.05 . Acts of
  Holders

  	
   

  
	
   

  	
   

  
	
  ARTICLE 2

  THE SECURITIES

  
	
   

  	
   

  
	
  Section 2.01 .
  Form and Dating

  	
   

  
	
  Section 2.02 .
  Execution and Authentication

  	
   

  
	
  Section 2.03 .
  Registrar, Paying Agent and Conversion Agent

  	
   

  
	
  Section 2.04 . Paying
  Agent to Hold Money in Trust

  	
   

  
	
  Section 2.05 . Holder
  Lists

  	
   

  
	
  Section 2.06 . Transfer and Exchange

  	
   

  
	
  Section 2.07 . Replacement
  Securities

  	
   

  
	
  Section 2.08 . Outstanding
  Securities; Determinations of Holders’ Action

  	
   

  
	
  Section 2.09 .
  Temporary Securities

  	
   

  
	
  Section 2.10 . Cancellation

  	
   

  
	
  Section 2.11 . Persons
  Deemed Owners

  	
   

  
	
  Section 2.12 . Global
  Securities

  	
   

  
	
  Section 2.13 . CUSIP Numbers

  	
   

  
	
   

  	
   

  
	
  ARTICLE 3

  REDEMPTION AND REPURCHASES

  
	
   

  	
   

  
	
  Section 3.01 . Right
  to Redeem; Notices to Trustee

  	
   

  
	
  Section 3.02 .
  Selection of Securities to Be Redeemed

  	
   

  
	
  Section 3.03 . Notice
  of Redemption

  	
   

  
	
  Section 3.04 . Effect
  of Notice of Redemption

  	
   

  
	
  Section 3.05 . Deposit
  of Redemption Price

  	
   

  
	
  Section 3.06 .
  Securities Redeemed in Part

  	
   

  
	
  Section 3.07 . Sinking Fund

  	
   

  
	
  Section 3.08 . Repurchase of
  Securities at Option of the Holder on Specified Dates

  	
   

  
	
  Section 3.09 .
  Repurchase of Securities at Option of the Holder Upon a Change in Control

  	
   

  
	
  Section 3.10 . Effect
  of Repurchase Notice or Change in Control Repurchase Notice

  	
   

  

 

ii

 

	
  Section 3.11 . Deposit
  of Repurchase Price or Change in Control Repurchase Price

  	
   

  
	
  Section 3.12 .
  Securities Repurchased in Part

  	
   

  
	
  Section 3.13 .
  Covenant to Comply with Securities Laws upon Repurchase of Securities

  	
   

  
	
  Section 3.14 .
  Repayment to the Company

  	
   

  
	
   

  	
   

  
	
  ARTICLE 4

  COVENANTS

  
	
   

  	
   

  
	
  Section 4.01 . Payment
  of Securities

  	
   

  
	
  Section 4.02 . SEC and Other Reports

  	
   

  
	
  Section 4.03 .
  Compliance Certificate; Notice of Default

  	
   

  
	
  Section 4.04 . Further
  Instruments and Acts

  	
   

  
	
  Section 4.05 .
  Maintenance of Office or Agency

  	
   

  
	
  Section 4.06 .
  Delivery of Certain Information

  	
   

  
	
  Section 4.07 .
  Liquidated Damages

  	
   

  
	
   

  	
   

  
	
  ARTICLE 5

  SUCCESSOR CORPORATION

  
	
   

  	
   

  
	
  Section 5.01 . When the Company
  May Consolidate, Merge or Transfer Assets

  	
   

  
	
   

  	
   

  
	
  ARTICLE 6

  DEFAULTS AND REMEDIES

  
	
   

  	
   

  
	
  Section 6.01 . Events of Default

  	
   

  
	
  Section 6.02 . Acceleration

  	
   

  
	
  Section 6.03 . Other Remedies

  	
   

  
	
  Section 6.04 . Waiver
  of Past Defaults

  	
   

  
	
  Section 6.05 . Control
  by Majority

  	
   

  
	
  Section 6.06 .
  Limitation on Suits

  	
   

  
	
  Section 6.07 . Rights
  of Holders to Receive Payment and to Convert

  	
   

  
	
  Section 6.08 .
  Collection Suit by Trustee

  	
   

  
	
  Section 6.09 . Trustee
  May File Proofs of Claim

  	
   

  
	
  Section 6.10 . Priorities

  	
   

  
	
  Section 6.11 . Suits

  	
   

  
	
  Section 6.12 . Waiver of Stay,
  Extension or Usury Laws

  	
   

  
	
   

  	
   

  
	
  ARTICLE 7

  TRUSTEE

  
	
   

  	
   

  
	
  Section 7.01 . Duties
  of Trustee

  	
   

  
	
  Section 7.02 . Rights
  of Trustee

  	
   

  
	
  Section 7.03 .
  Individual Rights of Trustee

  	
   

  
	
  Section 7.04 .
  Trustee’s Disclaimer

  	
   

  
	
  Section 7.05 . Notice
  of Defaults

  	
   

  

 

iii

 

	
  Section 7.06 . Reports
  by Trustee to Holders

  	
   

  
	
  Section 7.07 . Compensation
  and Indemnity

  	
   

  
	
  Section 7.08 . Replacement of
  Trustee

  	
   

  
	
  Section 7.09 .
  Successor Trustee by Merger Etc

  	
   

  
	
  Section 7.10 . Eligibility;
  Disqualification

  	
   

  
	
  Section 7.11 .
  Preferential Collection of Claims Against Company

  	
   

  
	
  Section 7.12 . Force
  Majeure

  	
   

  
	
   

  	
   

  
	
  ARTICLE 8

  DISCHARGE OF INDENTURE

  
	
   

  	
   

  
	
  Section 8.01 .
  Discharge of Liability on Securities

  	
   

  
	
  Section 8.02 . Repayment to the
  Company

  	
   

  
	
   

  	
   

  
	
  ARTICLE 9

  AMENDMENTS

  
	
   

  	
   

  
	
  Section 9.01 . Without
  Consent of Holders

  	
   

  
	
  Section 9.02 . With
  Consent of Holders

  	
   

  
	
  Section 9.03 .
  Compliance with Trust Indenture Act

  	
   

  
	
  Section 9.04 .
  Revocation and Effect of Consents

  	
   

  
	
  Section 9.05 .
  Notation on or Exchange of Securities

  	
   

  
	
  Section 9.06 . Trustee
  to Sign Supplemental Indentures

  	
   

  
	
  Section 9.07 . Effect
  of Supplemental Indentures

  	
   

  
	
   

  	
   

  
	
  ARTICLE 10

  CONVERSION OF THE SECURITIES

  
	
   

  	
   

  
	
  Section 10.01 .
  Conversion Privilege

  	
   

  
	
  Section 10.02 .
  Conversion Procedure

  	
   

  
	
  Section 10.03 . Taxes
  on Conversion

  	
   

  
	
  Section 10.04 . Company
  to Provide Stock

  	
   

  
	
  Section 10.05 .
  Adjustment of Conversion Price

  	
   

  
	
  Section 10.06 . No Adjustment

  	
   

  
	
  Section 10.07 .
  Equivalent Adjustments

  	
   

  
	
  Section 10.08 .
  Adjustment for Tax Purposes

  	
   

  
	
  Section 10.09 . Notice
  of Adjustment

  	
   

  
	
  Section 10.10 . Notice of
  Certain Transactions

  	
   

  
	
  Section 10.11 . Effect
  of Reclassification, Consolidation, Merger, Share Exchange or Sale on
  Conversion Privilege

  	
   

  
	
  Section 10.12 . Trustee’s Disclaimer

  	
   

  
	
  Section 10.13 .
  Voluntary Reduction

  	
   

  
	
  Section 10.14 .
  Conversion Value of Securities Tendered

  	
   

  
	
  Section 10.15 .
  Simultaneous Adjustments

  	
   

  

 

iv

 

	
  ARTICLE 11

  SUBORDINATION

  
	
   

  	
   

  
	
  Section 11.01 .
  Agreement of Subordination

  	
   

  
	
  Section 11.02 . Payments
  to Holders

  	
   

  
	
  Section 11.03 . Subrogation
  of Securities

  	
   

  
	
  Section 11.04 . Authorization
  to Effect Subordination

  	
   

  
	
  Section 11.05 . Notice to
  Trustee

  	
   

  
	
  Section 11.06 . Trustee’s
  Relation to Senior Indebtedness

  	
   

  
	
  Section 11.07 . No
  Impairment of Subordination

  	
   

  
	
  Section 11.08 Certain
  Conversions Deemed Payment

  	
   

  
	
  Section 11.09 . Article Applicable
  to Paying Agents

  	
   

  
	
  Section 11.10 . Senior
  Indebtedness Entitled to Rely

  	
   

  
	
   

  	
   

  
	
  ARTICLE 12

  MISCELLANEOUS

  
	
   

  	
   

  
	
  Section 12.01 . Trust Indenture Act
  Controls

  	
   

  
	
  Section 12.02 . Notices

  	
   

  
	
  Section 12.03 . Communication by
  Holders with Other Holders

  	
   

  
	
  Section 12.04 .
  Certificate and Opinion as to Conditions Precedent

  	
   

  
	
  Section 12.05 . Statements Required
  in Certificate or Opinion

  	
   

  
	
  Section 12.06 . Separability
  Clause

  	
   

  
	
  Section 12.07 .
  Rules by Trustee, Paying Agent, Conversion Agent and Registrar

  	
   

  
	
  Section 12.08 . Legal Holidays

  	
   

  
	
  Section 12.09 .
  Governing Law

  	
   

  
	
  Section 12.10 . No
  Recourse Against Others

  	
   

  
	
  Section 12.11 . Successors

  	
   

  
	
  Section 12.12 . Multiple Originals

  	
   

  
	
  Section 12.13 . Table
  of Contents and Headings

  	
   

  
	
   

  	
   

  
	
  Exhibit A

  	
  -

  	
  Form of Global Security

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit B

  	
  -

  	
  Transfer Certificate

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule A

  	
  -

  	
  Additional
  Shares Table

  	
   

  
					

 

v

 

INDENTURE dated as of June 8, 2005 between
SYMMETRICOM, INC., a Delaware corporation (the “Company”),
and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association
organized under the laws of the United States of America (the “Trustee”).

 

Each party agrees as follows for the benefit of the
other party and for the equal and ratable benefit of the Holders (as defined
below) of the Company’s 31⁄4% Contingent Convertible Subordinated Notes due 2025
(the “Securities”):

 

ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

 

Section 1.01.  Definitions.

 

“Acquisition Value” of the Common Stock means, for each
Trading Day in the Valuation Period, the value of the consideration paid per
share of Common Stock in connection with such Public Acquirer Change in Control,
(i) for any cash, 100% of the face amount of such cash; (ii) for any
Acquirer Common Stock, 100% of the closing sale price of such acquirer common
stock on each such Trading Day; and (iii) for any other securities, assets
or property, 102% of the fair market value of such security, asset or property
on each such Trading Day, as determined by two independent nationally
recognized investment banks selected by the Trustee for this purpose.

 

“Affiliate” has
the meaning provided in Rule 405 under the Securities Act.

 

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

 

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

 

“Bankruptcy Law”
means Title 11, U.S. Code or any similar federal, state, or foreign law for the
relief of debtors.

 

“Beneficial Owner”
shall be determined in accordance with Rule 13d-3 and Rule 13d-5
promulgated by the SEC under the Exchange Act or any successor provision,
except that: (i) a person shall be deemed to have “Beneficial Ownership”
of all shares of Common Stock that the Person has the right to acquire, whether
exercisable immediately or only after the passage of time and (ii) any
percentage of “Beneficial Ownership” shall be determined using the definition
in clause (i) in both the numerator and the denominator.

 

 

“Board of Directors”
means either the board of directors of the Company or any duly authorized
committee of such board of directors authorized to act for it with respect to
this Indenture.

 

“Board Resolutions”
means a copy of one or more resolutions, certified by an Officer of the Company
to have been duly adopted or consented to by the Board of Directors and to be
in full force and effect, and delivered to the Trustee.

 

“Business Day”
means any day, other than a Saturday or Sunday, that is neither a legal holiday
nor a day on which commercial banks are authorized or required by law,
regulation or executive order to close in The City of New York.

 

“Capital Stock”
for any corporation means any and all shares, interests, rights to purchase,
warrants, options, participations or other equivalents of or interests in
(however designated) stock issued by that corporation, but excluding from all
of the foregoing any debt securities convertible into Capital Stock, whether or
not such debt securities include any right of participation with Capital Stock.

 

“Change in Control”
means the occurrence of one or more of the following events:

 

(a)                                  any
sale, lease, exchange or other transfer (in one transaction or a series of
related transactions) of all or substantially all of the properties and assets
of the Company, to any Person or group of related Persons, as defined in Section 13(d) of
the Exchange Act (a “Group”);

 

(b)                                 the
approval by the holders of the Capital Stock of the Company of any plan or
proposal for the liquidation or dissolution of the Company, whether or not
otherwise in compliance with this Indenture;

 

(c)                                  any
Person or Group, other than the Company, any Subsidiary of the Company or any
employee benefit plan of the Company or any Subsidiary, becomes the Beneficial
Owner, directly or indirectly, of shares of Voting Stock representing in excess
of 50% of the aggregate ordinary voting power represented by all of the issued
and outstanding Voting Stock of the Company; or

 

(d)           the
first day on which a majority of the members of the Board of Directors are not
Continuing Directors;

 

provided,
however, that a Change in Control will not be deemed
to have occurred if, in the case of a merger or consolidation, at least 90% of
the consideration, excluding cash payments for fractional shares and cash
payments pursuant to dissenters’ appraisal rights, in a merger or consolidation
otherwise constituting a Change in Control consists of common stock traded on a
United States national securities exchange or quoted on the Nasdaq National
Market (or which will be so traded or quoted when issued or exchanged in
connection with such Change in Control) and as a result of such merger or
consolidation the Securities become

 

2

 

convertible
into cash in an amount equal to the lesser of $1,000 and the Conversion Value
and, if the Conversion Value is greater than $1,000, payment of the excess
value in the form of such common stock in accordance with the provisions of Section 10.14.

 

“Closing Sale Price”
on any date means the closing sale price per share (or if no closing sale price
is reported, the average of the bid and ask prices or, if more than one in
either case, the average of the average bid and the average ask prices) on such
date for the Acquirer Common Stock as reported in composite transactions on the
Nasdaq National Market or the principal United States securities exchange on
which such common stock is traded or, if such common stock is not listed on a
United States national or regional securities exchange or traded on the Nasdaq
National Market, as reported by The Nasdaq System.

 

“Common Stock”
shall mean shares of the Company’s Common Stock, $0.0001 par value per share,
as they exist on the date of this Indenture or any other shares of Capital
Stock of the Company into which the Common Stock shall be reclassified or
changed.

 

“Common Stock Price”
on any date means the closing sale price per share (or if no closing sale price
is reported, the average of the bid and ask prices or, if more than one in
either case, the average of the average bid and the average ask prices) on such
date for the Common Stock as reported on the Nasdaq National Market or the
principal United States securities exchange on which the Common Stock is traded
or, if the Common Stock is not traded on the Nasdaq National Market or listed
on a United States national securities exchange, as reported by The Nasdaq
System.  If the Common Stock is not so
quoted, the “Common Stock Price” will be the average of the mid-point of the
last bid and asked prices for the Common Stock on the relevant date quoted by
each of at least three nationally recognized independent investment banking
firms selected by the Company for this purpose.

 

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

 

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

 

“Continuing Directors”
means, as of any date of determination, any member of the Board of Directors
who (a) was a member of the Board of Directors as of the date hereof or (b) was
nominated for election or elected to the Board of Directors with the approval
of a majority of the Continuing Directors who were members of the Board of
Directors at the time of such nomination or election.

 

3

 

“Conversion Price”
means $12.49 per share of Common Stock as of the date of this Indenture,
subject to the adjustments described in Section 10.05 hereof.

 

“Conversion Rate”
means the number of shares of Common Stock equal to $1,000 divided by the
Conversion Price, which shall be approximately 80.0641 prior to any adjustment
thereto.

 

“Corporate Trust Office”
means the office of the Trustee at which at any time the trust created by this
Indenture shall be administered, which office at the date hereof is located at Wells
Fargo Bank, National Association, 707 Wilshire Boulevard, 17th
Floor, MAC-E2818-176, Los Angeles, California 90017, or such other address as
the Trustee may designate from time to time by notice to the Holders and the
Company, or the principal corporate trust office of any successor Trustee (or such
other address as a successor Trustee may designate from time to time by notice
to the Holders and the Company).

 

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

 

“Designated Senior Indebtedness”
means any particular Senior Indebtedness of the Company in which the instrument
creating or evidencing the same or the assumption or guarantee thereof (or any
related agreements or documents to which the Company is a party) expressly
provides that such Senior Indebtedness shall be “Designated Senior Indebtedness”
for purposes of this Indenture (provided  that such instrument, agreement or other document may place
limitations and conditions on the right of such Senior Indebtedness to exercise
the rights of Designated Senior Indebtedness). 
If any payment made to any holder of any Designated Senior Indebtedness
or its Representatives with respect to such Designated Senior Indebtedness is
rescinded or must otherwise be returned by such holder or Representative upon
the insolvency, bankruptcy or reorganization of the Company or otherwise, the
reinstated Indebtedness of the Company arising as a result of such rescission
or return shall constitute Designated Senior Indebtedness effective as of the
date of such rescission or return.

 

“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.

 

“GAAP” means
generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board or in such other statements by such other entity as
may be approved by a significant segment of the accounting profession of the
United States, which are in effect from time to time.

 

4

 

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

 

“Indebtedness”
means, with respect to any Person, without duplication, (a) all
indebtedness, obligations and other liabilities (contingent or otherwise) of
such Person (i) for borrowed money (including obligations of such Person
in respect of overdrafts, and any loans or advances from banks, whether or not
evidenced by notes or similar instruments), (ii) evidenced by credit or
loan agreements, bonds, debentures, notes or similar instruments (whether or
not the recourse of the lender is to the whole of the assets of such Person or
to only a portion thereof) or (iii) incurred in the acquisition of any
business or other assets (whether by way of purchase, merger, consolidation or
otherwise and whether by such Person or another Person), other than any
accounts payable or other accrued current liability or obligation incurred in
the ordinary course of business in connection with the obtaining of materials
or services, (b) all reimbursement obligations and other liabilities
(contingent or otherwise) of such Person with respect to letters of credit, bank
guarantees or bankers’ acceptances, (c) all obligations and liabilities
(contingent or otherwise) of such Person (i) in respect of leases of such
Person required, in conformity with GAAP, to be accounted for as capitalized
lease obligations on the balance sheet of such Person (as determined by the
Company), or (ii) under any lease or related document (including a
purchase agreement, conditional sale or other title retention agreement) in
connection with the lease of real property or improvement thereon (or any
personal property included as part of any such lease) which provides that such
Person is contractually obligated to purchase or cause a third party to
purchase the leased property or pay an agreed upon residual value of the leased
property, including obligations under such lease or related document to
purchase or cause a third party to purchase such lease property or pay an
agreed upon residual value of the leased property to the lessor (whether or not
such lease transaction is characterized as an operating lease or a capitalized
lease in accordance with GAAP), (d) all obligations (contingent or
otherwise) of such Person with respect to any interest rate or other swap, cap,
floor or collar agreement, hedge agreement, forward contract, or other similar instrument
or agreement or foreign currency hedge, exchange, purchase or similar
instrument or agreement; (e) all direct or indirect guaranties or similar
agreements by such Person in respect of, and obligations or liabilities of such
Person to purchase or otherwise acquire or otherwise assure a creditor against
loss in respect of, indebtedness, obligations or liabilities of another Person
of the kind described in clauses (a) through (d), and (f) any and all
deferrals, renewals, extensions, refinancings and refundings of, or amendments,
modifications or supplements to, any indebtedness, obligation or liability of
the kind described in clauses (a) through (e).

 

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

 

5

 

“Initial Purchasers”
shall mean Deutsche Bank Securities Inc. and RBC Capital Markets Corporation.

 

“Liquidated Damages”
has the meaning set forth in the Registration Rights Agreement dated June 8,
2005 between the Company and the Initial Purchasers.

 

“Market Price”
means the average of the Common Stock Prices for 20 consecutive Trading Days
commencing 30 Trading Days before the record date with respect to any distribution,
issuance or other event requiring such computation, appropriately adjusted (as
determined in good faith by the Board of Directors, whose determination shall
be conclusive) to take into account the occurrence, during the period
commencing on the first of such 20 consecutive Trading Days and ending on such
record date, of any event requiring adjustment of the Conversion Price under
this Indenture.

 

“Obligations”
means all obligations for principal, premium, interest, penalties, fees,
indemnifications, reimbursements, damages and other liabilities payable under
the documentation under which any indebtedness is created, evidenced or
secured, including, in the case of the Securities and Liquidated Damages, if
any.

 

“Offering Memorandum”
means the offering memorandum of the Company dated June 2, 2005 relating
to the offering of the Securities.

 

“Officer” means, with respect to
any Person, the Chairman of the Board, the Chief Executive Officer, the
President, any Vice President (whether or not such title is preceded by any
modifier such as “Executive, “Senior” or the like), the Chief Financial
Officer, the Treasurer, the Controller or the Secretary of such Person or any
other officer designated by the board of directors of such Person serving in a
similar capacity; provided that the designation of
any such Officer of the Company by the Board of Directors shall be evidenced in
a Board Resolution.

 

“Officers’ Certificate”
means a written certificate containing the information specified in Sections 12.04
and 12.05, signed in the name of the Company by any two Officers, and delivered
to the Trustee.  An Officers’ Certificate
given pursuant to Section 4.03 shall be signed by the principal executive
officer, principal financial officer or the principal accounting officer of the
Company but need not contain the information specified in Sections 12.04 and 12.05.

 

“Opinion of Counsel”
means a written opinion containing the information specified in Sections 12.04
and 12.05, from legal counsel who is acceptable to the Trustee in its
reasonable discretion.  The counsel may
be an employee of, or counsel to, the Company or the Trustee.

 

“Person” means
any individual, corporation, limited liability company, partnership, joint
venture, association, joint-stock company, trust, unincorporated

 

6

 

organization, government or any
agency or political subdivision thereof or other entity.

 

“Public Acquirer Change in
Control” means any transaction described in clause (c) of the
definition of Change in Control where the acquirer, or any entity that it is a
direct or indirect ‘‘beneficial owner’’ (as defined in Rule 13d-3 under
the Exchange Act) of more than 50% of the aggregate ordinary voting power of
all shares of such acquirer’s capital stock that are entitled to vote generally
in the election of directors, but in each case other than the Company, has a
class of common stock traded on a United States national securities exchange or
quoted on the Nasdaq National Market or which will be so traded or quoted when
issued or exchanged in connection with such Change in Control. Such acquirer’s
or other entity’s class of common stock traded on a United States national
securities exchange or quoted on the Nasdaq National Market or which will be so
traded or quoted when issued or exchanged in connection with such Change in
Control is herein referred to as “Acquirer Common Stock.”

 

“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, 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.

 

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

 

“SEC” means the
Securities and Exchange Commission.

 

“Security” or “Securities” means any of the Company’s 31⁄4% Contingent Convertible
Subordinated Notes due 2025 issued under this Indenture.

 

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

 

“Senior Indebtedness”
means all Indebtedness outstanding at any time, except (i) the Securities,
(ii) Indebtedness that by its terms provides that it is not “senior” in
right of payment to the Securities, (iii) Indebtedness that by its terms
provides that it is “parri passu” or “junior” in right of payment to the
Securities, (iv) Indebtedness for trade payables or any account payable or
other accrued current liability or obligation incurred in the ordinary course
of business in connection with the obtaining of materials or services, and (v) Indebtedness
to any Subsidiary.

 

“Significant Subsidiary”
has the meaning ascribed to such term in Regulation S-X (17 CFR Part 210).

 

7

 

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

 

“Subsidiary”
means, with respect to any Person, (i) any corporation of which the
outstanding Capital Stock having at least a majority of the votes entitled to
be cast in the election of directors under ordinary circumstances (determined
without regard to any classification of directors) shall at the time be owned,
directly or indirectly, by such Person, (ii) any other Person (other than
a partnership) of which at least a majority of the voting interests under
ordinary circumstances is at the time, directly or indirectly, owned by such
Person or (iii) any partnership (a) the sole general partner or the
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 one or more
Subsidiaries of such Person (or any combination thereof).

 

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

 

“Trading Day” means any regular or
abbreviated trading day of the Nasdaq National Market or, if the common stock
is not traded on the Nasdaq National Market, the principal United States
national securities exchange on which the Common Stock is traded, or if the
Common Stock is not traded on the Nasdaq National Market or listed on a United
States national securities exchange, The Nasdaq System.

 

“Trading Price”
on any date of determination means the average of the secondary market bid quotations
per $1,000 principal amount of Securities obtained by the Trustee for
$5,000,000 principal amount of the Securities at approximately 3:30 p.m.,
New York City time, on such determination date from two independent nationally
recognized securities dealers the Company selects, which may include the
Initial Purchasers; provided that
if at least two such bids cannot reasonably be obtained by the Trustee, but one
such bid can reasonably be obtained by the Trustee, this one bid shall be
used.  If the Trustee cannot reasonably
obtain at least one such bid or, in the Company’s reasonable judgment, the bid
quotations are not indicative of the secondary market value of the Securities,
then the Trading Price of the Securities will be deemed to be less than 95% of
the applicable Conversion Rate of the Securities multiplied by the Common Stock
Price on such Determination Date.

 

“Transfer Restricted
Securities Legend” means the legend labeled as such and that is set
forth in Exhibit A hereto.

 

“Trustee” means
the party named as the “Trustee” in the
first paragraph of this Indenture until a successor replaces it pursuant to the
applicable provisions

 

8

 

of this Indenture and,
thereafter, shall mean such successor. 
The foregoing sentence shall likewise apply to any subsequent such
successor or successors.

 

“Volume-Weighted Average Price”
means, on any Trading Day, the volume-weighted average price per share on such
date for the Common Stock as reported in composite transactions on the Nasdaq
National Market or the principal United States national securities exchange on
which the Common Stock is traded or, if the Common Stock is not traded on the
Nasdaq National Market or listed on a United States national securities
exchange, as reported by The Nasdaq System or as provided in the immediately
following sentence herein, in all cases, from 9:30 a.m. to 4:00 p.m.,
New York City time, on such Trading Day, as displayed by Bloomberg or such
other comparable service that has replaced Bloomberg.  If such volume-weighted average price is not
available, then the Board of Directors will in good faith determine the amount
to be used as the volume-weighted average price.

 

“Voting Stock”
of a Person means Capital Stock of such Person of the class or classes pursuant
to which the holders thereof have the general voting power under ordinary
circumstances (determined without regard to any classification of directors) to
elect at least a majority of the board of directors, managers or trustees of
such Person (irrespective of whether or not at the time Capital Stock of any
other class or classes shall have or might have voting power by reason of the
happening of any contingency).

 

Section 1.02.  Other Definitions.  

 

	
  Term

  	
   

  	
  Defined in Section

  
	
   

  	
   

  	
   

  
	
  Acceleration
  Notice

  	
   

  	
  6.02(a)

  
	
  Accepted
  Purchased Shares

  	
   

  	
  10.05(f)

  
	
  Act

  	
   

  	
  1.05(a)

  
	
  Agent
  Members

  	
   

  	
  2.12(e)

  
	
  Authenticating
  Agent

  	
   

  	
  2.02

  
	
  Change in
  Control Repurchase Date

  	
   

  	
  3.09(a)

  
	
  Change in
  Control Repurchase Price

  	
   

  	
  3.09(a)

  
	
  Change in
  Control Repurchase Notice

  	
   

  	
  3.09(c)

  
	
  Company
  Change in Control Repurchase Notice

  	
   

  	
  3.09(b)

  
	
  Company
  Repurchase Notice

  	
   

  	
  3.08(b)

  
	
  Conversion
  Agent

  	
   

  	
  2.03

  
	
  Conversion
  Date

  	
   

  	
  10.02(a)

  
	
  Conversion
  Value

  	
   

  	
  10.14(a)

  
	
  Depositary

  	
   

  	
  2.01(b)

  
	
  Determination
  Date

  	
   

  	
  10.14(b)

  
	
  DTC

  	
   

  	
  2.01(b)

  
	
  Effective
  Date

  	
   

  	
  10.01(b)

  
	
  Event of
  Default

  	
   

  	
  6.01

  
	
  Ex-Dividend
  Date

  	
   

  	
  10.01(d)

  

 

9

 

	
  Term

  	
   

  	
  Defined in Section

  
	
   

  	
   

  	
   

  
	
  Expiration
  Time

  	
   

  	
  10.05(d)

  
	
  Global
  Security

  	
   

  	
  2.01(b)

  
	
  Interest
  Payment Date

  	
   

  	
  Exhibit A

  
	
  Legal
  Holiday

  	
   

  	
  12.08

  
	
  Net Share
  Amount

  	
   

  	
  10.14(b)

  
	
  Net Shares

  	
   

  	
  10.14(b)

  
	
  Non-Stock
  Change in Control

  	
   

  	
  10.01(b)

  
	
  Offer
  Expiration Time

  	
   

  	
  10.05(f)

  
	
  Paying Agent

  	
   

  	
  2.03

  
	
  Payment
  Blockage Notice

  	
   

  	
  11.02(ii)

  
	
  Payment
  Default

  	
   

  	
  6.01(e)

  
	
  Principal
  Return

  	
   

  	
  10.14(b)

  
	
  Pre-Dividend
  Sale Price

  	
   

  	
  10.05(e)

  
	
  Repurchase
  Date

  	
   

  	
  3.08(a)

  
	
  Repurchase
  Notice

  	
   

  	
  3.08(a)

  
	
  Repurchase
  Price

  	
   

  	
  3.08(a)

  
	
  Purchased
  Shares

  	
   

  	
  10.05(d)

  
	
  QIB

  	
   

  	
  2.06(e)

  
	
  Quarter

  	
   

  	
  10.01(a)

  
	
  Rights Plan

  	
   

  	
  10.05(c)

  
	
  Record Date

  	
   

  	
  Exhibit A

  
	
  Redemption
  Date

  	
   

  	
  3.01(a)

  
	
  Redemption
  Price

  	
   

  	
  3.01(a)

  
	
  Registrar

  	
   

  	
  2.03

  
	
  Rule 144A
  Information

  	
   

  	
  4.06

  
	
  Spinoff
  Valuation Period

  	
   

  	
  10.05(c)

  
	
  Transfer

  	
   

  	
  2.06(e)

  
	
  Transfer
  Restricted Securities

  	
   

  	
  2.06(e)

  
	
  Ten Day
  Closing Stock Price

  	
   

  	
  10.14(a)

  

 

Section 1.03.  Incorporation by Reference of Trust Indenture Act. 
Whenever this Indenture refers to a provision of the TIA, the
provision is incorporated by reference in and made a part of this
Indenture.  The following TIA terms incorporated
by reference in this Indenture have the following meanings:

 

“Commission”
means the SEC.

 

“Indenture Securities”
means the Securities.

 

“Indenture Security Holder”
means a Holder.

 

“Indenture to be Qualified”
means this Indenture.

 

“Indenture Trustee” or “Institutional Trustee” means the Trustee.

 

10

 

“Obligor” on the
indenture securities means the Company.

 

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

 

Section 1.04.  Rules of Construction.  Unless the context
otherwise requires:

 

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

 

(b)                                 an
accounting term not otherwise defined has the meaning assigned to it in
accordance with GAAP;

 

(c)                                  “or”
is not exclusive;

 

(d)                                 “including”
means including, without limitation; and

 

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

 

Section 1.05.  Acts of Holders.

 

(a)                                  Any
request, demand, authorization, direction, notice, consent, waiver or other
action provided by this Indenture to be given or taken by Holders may be
embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Holders in person or by agent duly appointed in writing or
in the case of Securities evidenced by a Global Security, by any electronic
transmission or other message, whether or not in written format, that complies
with the Applicable Procedures; and, except as herein otherwise expressly
provided, such action shall become effective when such instrument or
instruments are delivered to the Trustee and, where it is hereby expressly required,
to the Company.  Such instrument or
instruments (and the action embodied therein and evidenced thereby) are herein
sometimes referred to as the “Act”
of Holders.  Proof of execution of any
such instrument or of a writing appointing any such agent shall be sufficient
for any purpose of this Indenture and conclusive in favor of the Trustee and
the Company, if made in the manner provided in this Section.

 

(b)                                 The
fact and date of the execution by any Person of any such instrument or writing
may be proved by the affidavit of a witness of such execution or by a
certificate of a notary public or other officer authorized by law to take
acknowledgments of deeds, certifying that the individual signing such
instrument or writing acknowledged to such officer the execution thereof.  Where such execution is by a signer acting in
a capacity other than such signer’s individual capacity, such certificate or
affidavit shall also constitute sufficient proof of such signer’s authority.  The fact and date of the execution of any
such

 

11

 

instrument or writing, or the authority of
the Person executing the same, may also be proved in any other manner which the
Trustee deems sufficient.

 

(c)                                  The
ownership of Securities shall be proved by the register maintained by the Registrar.

 

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

 

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

 

ARTICLE 2

THE SECURITIES

 

Section 2.01.  Form and Dating.

 

(a)                                  Forms.  The Securities
and the Trustee’s certificate of authentication shall be substantially in the
forms set forth on Exhibit A, which are a part of this Indenture and
incorporated by reference herein.  The
Securities may have notations, legends or endorsements required by law, stock
exchange rule or usage; provided that
any such notation, legend or endorsement required by usage is in a form
acceptable to the Company.  The Company
shall provide any such notations, legends or endorsements to the Trustee in
writing.  Each Security shall be dated
the date of its authentication.

 

The terms and provisions contained in any series of
Securities shall constitute, and are hereby expressly made, a part of this
Indenture and the

 

12

 

Company and the Trustee,
by their execution and delivery of this Indenture, expressly agree to such
terms and provisions and to be bound thereby.

 

(b)                                 Global Securities.  Unless
otherwise required by law or otherwise contemplated by Section 2.12(a),
all of the Securities will be represented by one or more Securities in global
form (a “Global Security”), which shall be
deposited with the Trustee at its Corporate Trust Office, as custodian for the depositary
and registered in the name of The Depository Trust Company (“DTC”) or the nominee thereof (such depositary, or any
successor thereto, and any such nominee being hereinafter referred to as the “Depositary”), duly executed by the Company and authenticated
by the Trustee as hereinafter provided.

 

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

 

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

 

Section 2.02.  Execution and Authentication.  The
Securities shall be executed on behalf of the Company by the manual or facsimile
signature of any Officer.

 

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

 

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

 

The Trustee may appoint an authenticating agent (the “Authenticating Agent”) reasonably acceptable to the Company
to authenticate Securities.  Unless
otherwise provided in the appointment, the Authenticating Agent may
authenticate Securities whenever the Trustee may do so.  Each reference in this Indenture to
authentication by the Trustee includes authentication by the 

 

13

 

Authenticating
Agent.  The Authenticating Agent has the
same rights as an Agent to deal with the Company or with any Affiliate of the
Company.

 

The aggregate principal amount of Securities which may
be authenticated and delivered under this Indenture is unlimited.  The Trustee shall authenticate and deliver
Securities for original issue upon receipt of a Company Order and Board
Resolutions authorizing the issuance of the Securities referenced in such
Company Order.

 

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

 

Section 2.03.  Registrar, Paying Agent and Conversion Agent.  The
Company shall maintain an office or agency where Securities may be presented
for registration of transfer or for exchange (the “Registrar”),
an office or agency where Securities may be presented for repurchase or payment
(the “Paying Agent”) and an office or agency
where Securities may be presented for conversion (the “Conversion
Agent”).  The Registrar shall
keep a register of the Securities and of their transfer and exchange.  The Company, upon prior written notice to the
Trustee, may have one or more co-registrars, one or more additional paying
agents reasonably acceptable to the Trustee and one or more additional
conversion agents.  The term “Paying
Agent” includes any additional paying agent, including any named pursuant to Section 4.05.  The term “Conversion Agent” includes any
additional conversion agent, including any named pursuant to Section 4.05.

 

The Company shall enter into an appropriate agency
agreement with any Registrar, Paying Agent, Conversion Agent or co-registrar (if
other than the Trustee).  Such agreement
shall implement the provisions of this Indenture that relate to such Agent.  The Company shall notify the Trustee, in
advance, of the name and address of any such Agent.  If the Company fails to maintain a Registrar,
Paying Agent or Conversion Agent, the Trustee shall act as such and shall be
entitled to appropriate compensation therefor pursuant to Section 7.07.  The Company or any of its Subsidiaries or an
Affiliate of the Company or any of its Subsidiaries may act as Paying Agent, Registrar,
Conversion Agent or co-registrar.

 

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

 

Section 2.04.  Paying Agent to Hold Money in Trust.  Except
as otherwise provided herein, not later than 11:00 a.m. (New York City
time) on each due date of payments in respect of any Security, the Company
shall deposit with the Paying Agent a sum of money and shares of Common Stock,
as applicable, sufficient to make such payments becoming due.  The Company shall require each Paying Agent
(other than the Trustee) to agree in writing that such Paying

 

14

 

Agent shall
hold in trust for the benefit of Holders or the Trustee all money and shares of
Common Stock, as applicable, held by such Paying Agent for the making of
payments in respect of the Securities and shall notify the Trustee of any default
by the Company in making any such payment. 
At any time during the continuance of any such default, such Paying
Agent shall, upon the written request of the Trustee, forthwith pay to the
Trustee all moneys and shares of Common Stock, as applicable, held in
trust.  If the Company, a Subsidiary of
the Company or an Affiliate of the Company or any of its Subsidiaries acts as
Paying Agent, it shall segregate the money and shares of Common Stock, as
applicable, held by it as Paying Agent and hold it as a separate trust
fund.  The Company at any time may
require each Paying Agent to pay all money and shares of Common Stock, as
applicable, held by it to the Trustee and to account for any funds disbursed by
it.  Upon doing so, such Paying Agent
shall have no further liability for such money or shares of Common Stock, as
the case may be.  The Paying Agent and
Trustee shall return to the Company upon written request any money or shares of
Common Stock held by them for the payment of any amount with respect to the
Securities that remains unclaimed for two years, subject to applicable
unclaimed property law.  After return to
the Company, Holders entitled to the money or shares of Common Stock must look
to the Company for payment as general creditors unless an applicable abandoned
property law designates another person.

 

Section 2.05.  Holder Lists.  The Trustee shall
preserve in as current a form as is reasonably practicable the most recent list
available to it of the names and addresses of Holders.  If the Trustee is not the Registrar, the Company
shall furnish to the Trustee prior to or on each Interest Payment Date and at
such other times as the Trustee may request in writing a list in such form and
as of such date as the Trustee may reasonably require of the names and
addresses of Holders, which list may be conclusively relied upon by the Trustee
and dated not more than 15 days prior to the time such information is
furnished.

 

Section 2.06.  Transfer and Exchange.

 

(a)                                  Subject
to Section 2.12 hereof, upon surrender for registration of transfer of any
Securities to the Registrar, together with a written instrument of transfer
satisfactory to the Registrar, substantially in the form affixed to the form of
Security attached as Exhibit A hereto, duly executed by the Holder thereof
or such Holder’s attorney duly authorized in writing, at the office or agency
of the Registrar or co-registrar, the Company shall execute and the Trustee
shall authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Securities of any authorized denomination or
denominations of a like aggregate principal amount.

 

At the option of the Holder thereof, Securities may be
exchanged for other Securities of any authorized denomination or denominations,
of a like aggregate principal amount, upon surrender of the Securities to be
exchanged, together with a written instrument of transfer satisfactory to the Registrar
duly executed by such

 

15

 

Holder or such Holder’s
attorney duly authorized in writing, at the office or agency of the Registrar
or co-registrar.  Whenever any Securities
are so surrendered for exchange, the Company shall execute, and the Trustee
shall authenticate and deliver, the Securities that the Holder making the
exchange is entitled to receive.

 

The Company shall not charge a service charge for any
registration of transfer or exchange, but the Company may require payment of a
sum sufficient to pay all taxes, assessments or other governmental charges that
may be imposed in connection with the transfer or exchange of the Securities
from the Holder requesting such transfer or exchange.

 

The Company shall not be required to make, and the
Registrar need not register, transfers or exchanges of Securities selected for
redemption (except, in the case of Securities to be redeemed in part, the
portion thereof not to be redeemed) or any Securities in respect of which a Repurchase
Notice or Change in Control Repurchase Notice has been given and not withdrawn
by the Holder thereof in accordance with the terms of this Indenture (except,
in the case of Securities to be repurchased in part, the portion thereof not to
be repurchased) or any Securities for a period of 5 days before the mailing of
a notice of redemption to each Holder of Securities to be redeemed, as provided
in Section 3.03.

 

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

 

(c)                                  The
Registrar shall provide to the Trustee such information as the Trustee may
reasonably require in connection with the delivery by the Registrar of
Securities upon transfer or exchange of Securities.

 

(d)                                 The
Registrar shall not be required to make registrations of transfer or exchange
of Securities during any periods designated in the Securities or in this
Indenture as periods during which such registration of transfers and exchanges
need not be made.

 

(e)                                  Notwithstanding
any other provision of this Indenture or the Securities, until the expiration
of the applicable holding period set forth in Rule 144(k) of the
Securities Act (or any successor provision), the Securities may not be
transferred or exchanged in whole or in part other than (i) to a person
whom the seller reasonably believes is a qualified institutional buyer, as such
term is defined in Rule 144A (a “QIB”), in a
transaction meeting the requirements of Rule 144A, (ii) pursuant to
an exemption from registration under the Securities Act provided by Rule 144
thereunder (if available), (iii) pursuant to an effective registration
statement under the Securities Act or (iv) to the Company or any of its
Subsidiaries, in each of cases (i) through (iv) in accordance with
any applicable securities laws of any state of the United States.  Whenever any Security is presented or
surrendered for registration of transfer or exchange for a Security

 

16

 

registered in a name other than that of the
Holder thereof, such Security must be accompanied by a certificate in
substantially the form set forth in Exhibit B, dated the date of such
surrender and signed by the Holder of such Security, as to compliance with such
restrictions on transfer.  The Registrar
shall not be required to accept for such registration of transfer or exchange
any Security not so accompanied by a properly completed certificate.

 

Any certificate evidencing a Security (and all securities issued in
exchange therefore or substitution thereof) shall bear the Transfer Restricted
Securities Legend, unless (1) such Security 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
pursuant to Rule 144 under the Securities Act or any similar provision
then in force, (2) such Security is eligible for resale pursuant to Rule 144(k)
under the Securities Act (or any successor provision) or (3) otherwise
agreed by the Company in writing, with written notice thereof to the Trustee.

 

Every Security that bears or is required under this Section 2.06(e) to
bear the Transfer Restricted Securities Legend (the “Transfer Restricted
Securities”) shall be subject to the restrictions on transfer set
forth in this Section 2.06(e) (including those set forth in the Transfer
Restricted Securities Legend), and the Holder of each such Transfer Restricted
Security, by such Security Holder’s acceptance thereof, agrees to be bound by
all such restrictions on transfer.  As
used in this Section 2.06(e), the term “transfer”
encompasses any sale, pledge, loan, transfer or other disposition whatsoever of
any Transfer Restricted Security or any interest therein.

 

Any Security (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 Transfer
Restricted Securities Legend have been satisfied may, upon surrender of such
Security for exchange to the Registrar in accordance with the provisions of
this Section 2.06, be exchanged for a new Security or Securities, of like
tenor and aggregate principal amount, which shall not bear the Transfer Restricted
Securities Legend.  If the Transfer Restricted
Security surrendered for exchange is represented by a Global Security bearing a
Transfer Restricted Securities Legend, the principal amount of the Global
Security so legended shall be reduced by the appropriate principal amount and
the principal amount of a Global Security without the Transfer Restricted
Securities Legend shall be increased by an equal principal amount.  If a Global Security without the Transfer Restricted
Securities Legend is not then outstanding, the Company shall execute and the
Trustee shall authenticate and deliver a Global Security without the Transfer Restricted
Securities Legend to the Depositary.

 

Section 2.07.  Replacement Securities.  If any
mutilated Security is surrendered to the Trustee, or the Company and the
Trustee receive evidence to their satisfaction of the mutilation, destruction,
loss or theft of any Security, and

 

17

 

there is
delivered to the Company and the Trustee such security or indemnity, at the
expense of the Holder thereof, as may be required by them to save each of them
harmless, then, in the absence of notice to the Company or the Trustee that
such Security has been acquired by a protected purchaser (within the meaning of
Section 8-303 of the Uniform Commercial Code as adopted in the State of
New York), the Company shall execute, and upon the Company’s written request
the Trustee shall authenticate and deliver, in exchange for any such mutilated
Security or in lieu of any such destroyed, lost or stolen Security, at the
expense of the Holder thereof, a new Security of like tenor and principal
amount and bearing a number not contemporaneously outstanding.

 

In case any such mutilated, destroyed, lost or stolen
Security has become or is about to become due and payable, or is about to be redeemed
or repurchased by the Company pursuant to Article 3 hereof, the Company in
its discretion may, instead of issuing a new Security, pay, redeem or repurchase
such Security, as the case may be.

 

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

 

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

 

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

 

Section 2.08.  Outstanding Securities; Determinations of Holders’ Action.  Securities outstanding at any time
are all the Securities authenticated by the Trustee pursuant to this Indenture,
except for those cancelled by it, those delivered to it for cancellation
pursuant to Section 2.10 and those described in this Section 2.08 as
not outstanding.  A Security does not
cease to be outstanding because the Company or any Affiliate of the Company
holds the Security; provided that
in determining whether the Holders of the requisite principal amount of
Securities have given or concurred in any request, demand, authorization,
direction, notice, consent or waiver hereunder, Securities owned by the Company
or any other obligor upon the Securities or any Affiliate of the Company or
such other obligor shall be disregarded and deemed not to be outstanding,
except that, in determining whether the Trustee shall be protected in relying
upon any such request, demand, authorization, direction, notice, consent or
waiver, only Securities which a Responsible Officer of the Trustee actually

 

18

 

knows to be so
owned shall be so disregarded; and provided further
that Securities that the Company or an Affiliate offers to purchase or acquires
pursuant to an offer, exchange offer, tender offer or otherwise shall not be
deemed to be owned by the Company or an Affiliate until legal title to such Securities
passes to the Company or such Affiliate, as the case may be.  Subject to the foregoing, only Securities
outstanding at the time of such determination shall be considered in any such
determination (including, without limitation, determinations pursuant to
Articles 6 and 9).

 

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

 

If the Paying Agent holds, in accordance with this
Indenture, prior to 11:00 a.m., New York City time, on a Redemption Date,
or on the Business Day following a Repurchase Date or a Change in Control Repurchase
Date, or on Stated Maturity, money sufficient to pay amounts owed with respect
to Securities payable on that date, then immediately after such Redemption
Date, Repurchase Date, Change in Control Repurchase Date or Stated Maturity, as
the case may be, such Securities shall cease to be outstanding and interest
(including Liquidated Damages, if any) on such Securities shall cease to
accrue; provided that if such Securities are to
be redeemed, notice of such redemption has been duly given pursuant to this Indenture
or provision therefor satisfactory to the Trustee has been made.

 

If a Security is converted in accordance with Article 10,
then from and after the time of conversion on the Conversion Date, such
Security shall cease to be outstanding and interest (including Liquidated
Damages, if any) shall cease to accrue on such Security, unless the Company
shall fail to provide the Holder such cash and shares of Common Stock, if any,
due upon conversion in accordance with the provisions of Section 10.14
after the fifth Business Day after the Determination Date.

 

Section 2.09.  Temporary Securities.  Pending the
preparation of definitive Securities, the Company may execute, and upon Company
Order the Trustee shall authenticate and deliver, temporary Securities that are
printed, lithographed, typewritten, mimeographed or otherwise produced, in any
authorized denomination, substantially of the tenor of the definitive
Securities in lieu of which they are issued, and with such appropriate
insertions, omissions, substitutions and other variations as the Officers
executing such Securities may determine, as conclusively evidenced by their
execution of such Securities.

 

If temporary Securities are issued, the Company will
cause definitive Securities to be prepared without unreasonable delay.  After the preparation of definitive
Securities, the temporary Securities shall be exchangeable for definitive
Securities upon surrender of the temporary Securities at the office or agency
of the Company designated for such purpose pursuant to Section 2.03,
without 

 

19

 

charge to the
Holder.  Upon surrender for cancellation
of any one or more temporary Securities, the Company shall execute and the
Trustee shall authenticate and deliver in exchange therefor a like principal
amount of definitive Securities of authorized denominations.  Until so exchanged, the temporary Securities
shall in all respects be entitled to the same benefits under this Indenture as
definitive Securities.

 

Section 2.10.  Cancellation.  All Securities
surrendered for payment, redemption, repurchase, conversion, exchange or
registration of transfer shall, if surrendered to any Person other than the
Trustee, be delivered to the Trustee and shall be promptly cancelled by it, or,
if surrendered to the Trustee, shall be promptly cancelled by it.  The Company may, to the extent permitted by
law, purchase the Securities in the open market or by tender offer at any price
or by private placement. Any Securities purchased by the Company (other than
Securities acquired by the Company in the manner described in the first
sentence of this Section 2.10) to the extent permitted by law, may be
resold or reissued.   The Company may at
any time deliver to the Trustee for cancellation any Securities previously
authenticated and delivered hereunder that the Company may have acquired in any
manner whatsoever, and all Securities so delivered shall be promptly cancelled
by the Trustee.  The Company may not issue
new Securities to replace Securities it has paid or delivered to the Trustee
for cancellation or that any Holder has converted pursuant to Article 10.  No Securities shall be authenticated in lieu
of or in exchange for any Securities cancelled as provided in this Section,
except as expressly permitted by this Indenture.  All cancelled Securities held by the Trustee
shall be disposed of by the Trustee in accordance with the Trustee’s customary
procedures.

 

Section 2.11.  Persons Deemed Owners.  Prior to due
presentment of a Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in
whose name such Security is registered as the owner of such Security for the
purpose of receiving payment of the principal amount of the Security or the
payment of any Redemption Price, Repurchase Price or Change in Control Repurchase
Price in respect thereof, and accrued but unpaid interest (including Liquidated
Damages, if any) thereon, for the purpose of conversion and for all other
purposes whatsoever, whether or not such Security be overdue, and neither the
Company, the Trustee nor any agent of the Company or the Trustee shall be
affected by notice to the contrary.

 

Section 2.12.  Global Securities.

 

(a)                                  Notwithstanding
any other provisions of this Indenture or the Securities, a Global Security
shall not be exchanged in whole or in part for a Security registered in the
name of any Person other than the Depositary, any successor Depositary or one
or more nominees thereof; provided that a
Global Security may be exchanged for Securities registered in the name of any
Person designated by the Company if  (1) the
Depositary has notified the Company that it is unwilling or unable to continue
as Depositary for such Global Security or such

 

20

 

Depositary has ceased to be a “clearing
agency” registered under the Exchange Act, and a successor Depositary is not
appointed by the Company within 90 days, (2) the Company has provided the
Depositary with written notice in its sole discretion that it has decided to
discontinue use of the system of book-entry transfer through the Depositary or
any successor Depositary or (3) an Event of Default has occurred or is
continuing with respect to the Securities, and either (i) the Depositary
notifies the Trustee that it elects to cause the issuance of Securities in
definitive form or (ii) a holder of a beneficial interest in a Global
Security requests to exchange such beneficial interest for Securities
registered in the name of another Person. 
Any Global Security exchanged pursuant to clauses (1) or (2) above
shall be so exchanged in whole and not in part, and any Global Security
exchanged pursuant to clause (3) above may be exchanged in whole or from
time to time in part as directed by the Depositary.  Any Security issued in exchange for a Global
Security or any portion thereof shall be a Global Security; provided that any such Security so issued that is registered
in the name of a Person other than the Depositary or a nominee thereof shall
not be a Global Security.

 

(b)                                 Securities
issued in exchange for a Global Security or any portion thereof shall be issued
in definitive, fully registered form, without interest coupons, shall have an
aggregate principal amount equal to that of such Global Security or portion
thereof to be so exchanged, shall be registered in such names and be in such
authorized denominations as the Depositary shall designate and shall bear the
applicable legends provided for herein. 
Any Global Security to be exchanged in whole shall be surrendered by the
Depositary to the Trustee, as Registrar. 
With regard to any Global Security to be exchanged in part, either such
Global Security shall be so surrendered for exchange or, if the Trustee is
acting as custodian for the Depositary or its nominee with respect to such
Global Security, the principal amount thereof shall be reduced by an amount
equal to the portion thereof to be so exchanged, by means of an appropriate
adjustment made on the records of the Trustee. 
Upon any such surrender or adjustment, the Trustee shall authenticate
and deliver the Security issuable on such exchange to or upon the order of the
Depositary or an authorized representative thereof.

 

(c)                                  Subject
to the provisions of Section 2.12(e), the registered Holder may grant
proxies and otherwise authorize any Person, including Agent Members (as defined
below) and Persons that may hold interests through Agent Members, to take any
action which a Holder is entitled to take under this Indenture or the
Securities.

 

(d)                                 If
any of the events specified in Section 2.12(a) occurs, the Company
will promptly make available to the Trustee a reasonable supply of Securities
in definitive form.

 

(e)                                  Neither
any members of, or participants in, the Depositary (collectively, the “Agent Members”) nor any other Persons on whose behalf Agent
Members may act shall have any rights under this Indenture with respect to any
Global Security registered in the name of the Depositary or any nominee

 

21

 

thereof, or under any such Global Security,
and the Depositary or such nominee, as the case may be, may be treated by the
Company, the Trustee and any agent of the Company or the Trustee as the
absolute owner and holder of such Global Security for all purposes
whatsoever.  Notwithstanding the
foregoing, nothing herein shall prevent the Company, the Trustee or any agent
of the Company or the Trustee from giving effect to any written certification,
proxy or other authorization furnished by the Depositary or such nominee, as
the case may be, or impair, as between the Depositary, its Agent Members and
any other Person on whose behalf an Agent Member may act, the operation of
customary practices of such Persons governing the exercise of the rights of a
holder of any Security.

 

(f)                                    With
respect to any Global Security, the Company, the Registrar and the Trustee
shall be entitled to treat the Person in whose name such Global Security is
registered as the absolute owner of such Security for all purposes of this
Indenture, and neither the Company, the Registrar nor the Trustee shall have
any responsibility or obligation to any Agent Members or other beneficial
owners of the Securities represented by such Global Security.  Without limiting the immediately preceding
sentence, neither the Company, the Registrar nor the Trustee shall have any
responsibility or obligation with respect to (1) the accuracy of the
records of the Depositary or any other Person with respect to any ownership
interest in any Global Security, (2) the delivery to any Person, other
than a Holder, of any notice with respect to the Securities represented by a
Global Security, including any notice of redemption or repurchase, (3) the
selection of the particular Securities or portions thereof to be redeemed or repurchased
in the event of a partial redemption or repurchase of part of the Securities
outstanding or (4) the payment to any Person, other than a Holder, of any
amount with respect to the principal of or Redemption Price, Repurchase Price,
Change in Control Repurchase Price or accrued but unpaid interest (including
Liquidated Damages, if any) with respect to any Global Security.

 

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

 

22

 

ARTICLE 3

REDEMPTION AND REPURCHASES

 

Section 3.01.  Right to Redeem; Notices to Trustee.

 

(a)                                  Optional Redemption. 
On or after June 20, 2012, the Company, at its option, may redeem
the Securities in whole at any time or in part from time to time (each such
date, a “Redemption Date”), in any integral
multiple of $1,000, for cash at a price equal to 100% of the principal amount
of the Securities to be redeemed (the “Redemption Price”),
together with accrued but unpaid interest (including Liquidated Damages, if
any) thereon, up to but not including the Redemption Date; provided
that if the Redemption Date is between the close of business on an interest
record date and the opening of business on the related Interest Payment Date, accrued
but unpaid interest (including Liquidated Damages, if any) will be payable to
the Holders in whose names the Securities are registered at the close of
business on the relevant interest record date.

 

(b)                                 Notice to Trustee.  If
the Company elects to redeem Securities pursuant to this Section 3.01, it
shall notify the Trustee in writing of the Redemption Date, the principal
amount of Securities to be redeemed and the Redemption Price.  The Company shall give the notice to the
Trustee provided for in this Section 3.01(b) by a Company Order prior
to the date notice of redemption is to be given to Holders pursuant to Section 3.03
(unless a shorter notice shall be satisfactory to the Trustee).

 

Section 3.02.  Selection of Securities to Be Redeemed.  If less
than all the Securities are to be redeemed, subject to the Applicable
Procedures in the case of Global Securities to be so redeemed, the Trustee
shall select the Securities to be redeemed by any method that the Trustee deems
fair and appropriate.  In the event of a
partial redemption, the Trustee may select for redemption portions of the
principal amount of Securities in principal amounts of $1,000 and integral
multiples thereof.

 

Provisions of this Indenture that apply to Securities
called for redemption also apply to portions of Securities called for
redemption.  The Trustee shall notify the
Company promptly of the Securities or portions of Securities to be redeemed.

 

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

 

Section 3.03.  Notice of Redemption.  At least 30
days but not more than 60 days before any Redemption Date, the Company shall
mail a notice of redemption (the “Notice of Redemption”)
by first-class mail, postage prepaid, to each Holder of Securities to be
redeemed at such Holder’s registered address.

 

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

 

23

 

(a)                                  the
Redemption Date;

 

(b)                                 the
Redemption Price and, to the extent known at the time of such notice the amount
of accrued but unpaid interest (including Liquidated Damages, if any) payable
on the Redemption Date;

 

(c)                                  the
current Conversion Price;

 

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

 

(e)                                  that
Securities called for redemption may be converted at any time before the close
of business on the Business Day immediately preceding the Redemption Date;

 

(f)                                    that
Holders who want to convert Securities must satisfy the requirements set forth
in the Securities and Article 10 of this Indenture;

 

(g)                                 that
Securities called for redemption must be surrendered to the Paying Agent in
order to collect the Redemption Price therefor, together with accrued but
unpaid interest (including Liquidated Damages, if any) thereon;

 

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

 

(i)                                     that,
unless the Company defaults in paying the Redemption Price, interest (including
Liquidated Damages, if any) on Securities called for redemption will cease to
accrue on and after the Redemption Date and the Securities called for
redemption will cease to be outstanding; and

 

(j)                                     the
CUSIP number of the Securities called for redemption.

 

At the Company’s request, the Trustee shall give the
Notice of Redemption in the Company’s name and at the Company’s expense, so
long as the Company makes such request at least three Business Days prior to
the date by which such Notice of Redemption is to be given to Holders in
accordance with this Section 3.03 and the Company provides the Trustee
with all information required for such notice of redemption.

 

If any of the Securities is in the form of a Global
Security, then the Company shall modify such Notice of Redemption to the extent
necessary to accord with the Applicable Procedures that apply to the redemption
of Global Securities.

 

Section 3.04.  Effect of Notice of Redemption.  Once
notice of redemption is given, Securities called for redemption become due and
payable on the Redemption Date and at the Redemption Price stated in the notice
of redemption, together with accrued but unpaid interest (including Liquidated
Damages, if any)

 

24

 

thereon,
except for Securities which are converted in accordance with the terms of this
Indenture.  Upon surrender to the Paying
Agent, such Securities shall be paid at the Redemption Price stated in the
notice of redemption, together with accrued but unpaid interest (including Liquidated
Damages, if any) thereon, up to but not including the Redemption Date.

 

Section 3.05.  Deposit of Redemption Price.  Prior to 11:00 a.m.
(New York City time) on the Redemption Date, the Company shall deposit with the
Paying Agent (or if the Company or a Subsidiary thereof or an Affiliate of
either of them is the Paying Agent, shall segregate and hold in trust) money
sufficient to pay the aggregate Redemption Price of all Securities to be
redeemed on the Redemption Date, together with accrued but unpaid interest
(including Liquidated Damages, if any) thereon, up to but not including the
Redemption Date, other than Securities or portions of Securities called for
redemption that on or prior thereto have been delivered by the Company to the
Trustee for cancellation or have been converted pursuant to Article 10.  The Paying Agent shall as promptly as
practicable return to the Company any money not required for making payments on
the Redemption Date because of the conversion of Securities pursuant to Article 10.  If such money is then held by the Company in
trust and is not required for making payments on the Redemption Date, it shall
be discharged from such trust.

 

Section 3.06.  Securities Redeemed in Part.  Upon
surrender of a Security that is redeemed in part, the Company shall execute and
the Trustee shall authenticate and deliver to the Holder thereof, without
service charge, a new Security or Securities of any authorized denomination as
requested by such Holder in an aggregate principal amount equal to, and in
exchange for, the unredeemed portion of the principal amount of the Security
surrendered.

 

Section 3.07.  Sinking Fund.  There shall be
no sinking fund provided for the Securities.

 

Section 3.08.  Repurchase of Securities at Option of the Holder on Specified Dates.

 

(a)                                  At
the option of the Holder, the Company shall repurchase on June 15, 2012, June 15,
2015 and June 15, 2020 (each, a “Repurchase Date”)
all or a portion of the Securities held by such Holder for cash at a price per
Security equal to 100% of the aggregate principal amount of the Security (the “Repurchase Price”), together with accrued but unpaid
interest (including Liquidated Damages, if any) thereon, up to but not
including the Repurchase Date.

 

Securities shall be repurchased pursuant to this Section 3.08
at the option of the Holder thereof upon:

 

(i)             delivery to the
Company and the Paying Agent by the Holder of a written notice (a “Repurchase Notice”) at any time from the

 

25

opening of business on the date that is 30
Business Days prior to the Repurchase Date until the close of business on such Repurchase
Date stating:

 

(A)          if the Security which
the Holder will deliver to be repurchased is a Security in definitive form, the
certificate number of such Security, or if such Security is a Global Security,
the notice must comply with the Applicable Procedures;

 

(B)           the portion of the
principal amount of the Security which the Holder will deliver to be repurchased,
which portion must be in a principal amount of $1,000 or any integral multiple
thereof; and

 

(C)           that such Security
shall be repurchased as of the Repurchase Date pursuant to the terms and
conditions specified in this Indenture; and

 

(ii)           delivery or book-entry transfer of such
Security to the Paying Agent prior to, on or after the Repurchase Date
(together with all necessary endorsements) at the offices of the Paying Agent,
such delivery being a condition to receipt by the Holder of the Repurchase
Price therefor, together with accrued but unpaid interest (including Liquidated
Damages, if any); provided that the Repurchase
Price, together with accrued but unpaid interest (including Liquidated Damages,
if any) thereon, shall be so paid pursuant to this Section 3.08 only if
the Security so delivered to the Paying Agent shall conform in all respects to
the description thereof in the related Repurchase Notice.

 

The Company shall repurchase from the Holder thereof,
pursuant to this Section 3.08, a portion of a Security if the principal
amount of such portion is $1,000 or an integral multiple of $1,000.  Provisions of this Indenture that apply to
the repurchase of all of a Security also apply to the repurchase of a portion
of a Security.

 

Any repurchase by the Company contemplated pursuant to
the provisions of this Section 3.08 shall be consummated by the delivery to
the Paying Agent of the Repurchase Price, together with accrued but unpaid
interest (including Liquidated Damages, if any) thereon, to be received by the
Holder promptly following the later of the Repurchase Date and the time of
delivery or book-entry transfer of the Security to the Paying Agent in
accordance with this Section 3.08.

 

Notwithstanding anything herein to the contrary, any
Holder delivering to the Paying Agent the Repurchase Notice contemplated by
this Section 3.08(a) shall have the right to withdraw such Repurchase
Notice at any time prior to the close of business on the Repurchase Date by
delivery of a written notice of

 

26

 

withdrawal to the Paying
Agent at the principal office of the Paying Agent in accordance with Section 3.10.

 

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

 

(b)           Company Repurchase Notice.  In connection with any repurchase of
Securities pursuant to this Section 3.08, the Company shall give written
notice of the Repurchase Date to the Holders (the “Company Repurchase
Notice”).  The Company Repurchase
Notice shall be sent by first-class mail to the Trustee and to each Holder not
less than 30 Business Days prior to any Repurchase Date.  Each Company Repurchase Notice shall include
a form of Repurchase Notice to be completed by a Holder and shall state:

 

(i)          the Repurchase Price,
the Conversion Price and, to the extent known at the time of such notice, the
amount of accrued but unpaid interest (including Liquidated Damages, if any)
that will be payable with respect to the Securities on the Repurchase Date;

 

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

 

(iii)        that Securities as to
which a Repurchase Notice has been given may be converted only if (x) the
applicable Repurchase Notice has been withdrawn in accordance with the terms of
this Indenture and (y) the Securities may be converted pursuant to Article 10
of the Indenture;

 

(iv)       that Securities must be
surrendered to the Paying Agent to collect payment of the Repurchase Price and
accrued but unpaid interest (including Liquidated Damages, if any);

 

(v)        that the Repurchase
Price for any Securities as to which a Repurchase Notice has been given and not
withdrawn, together with accrued but unpaid interest (including Liquidated
Damages, if any) payable with respect thereto, shall be paid promptly following
the later of the Repurchase Date and the time of surrender of such Securities
as described in clause (iv);

 

(vi)       the procedures the
Holder must follow under this Section 3.08;

 

(vii)      the conversion rights
of the Securities;

 

(viii)     that, unless the
Company defaults in making payment of such Repurchase Price, interest
(including Liquidated Damages, if any) on Securities covered by any Repurchase
Notice will cease to accrue on and after the Repurchase Date;

 

27

 

(ix)        the CUSIP number of
the Securities; and

 

(x)         the procedures for
withdrawing a Repurchase Notice or (as specified in Section 3.10).

 

At the Company’s request, which shall be made at least
three Business Days prior to the date by which the Company Repurchase Notice is
to be given to the Holders in accordance with this Section 3.08, and at
the Company’s expense, the Trustee shall give the Company Repurchase Notice in
the Company’s name; provided that,
in all cases, the text of the Company Repurchase Notice shall be prepared by
the Company.

 

If any of the Securities is in the form of a Global
Security, then the Company shall modify such notice to the extent necessary to
accord with the Applicable Procedures that apply to the repurchase of Global
Securities.

 

Section 3.09.  Repurchase of Securities at Option of the Holder Upon a Change in Control.

 

(a)           If at any time that Securities remain
outstanding there shall have occurred a Change in Control, Securities shall be
repurchased by the Company, at the option of the Holder thereof, at a price in
cash (the “Change in Control Repurchase Price”)
equal to 100% of the aggregate principal amount of such Securities plus accrued
but unpaid interest (including Liquidated Damages, if any) thereon, up to but
not including the date (the “Change in Control Repurchase
Date”) fixed by the Company that is not less than 30 days nor more
than 45 days after the date the Company Change in Control Repurchase Notice (as
defined below) is given, subject to satisfaction by or on behalf of the Holder
of the requirements set forth in Section 3.09(c); provided
that if the Change in Control Repurchase Date is between the close of business
on an interest record date and the opening of business on the related Interest
Payment Date, accrued but unpaid interest (including Liquidated Damages, if any)
will be payable to the Holders in whose names the Securities are registered at
the close of business on the relevant interest record date.

 

(b)           Company Change in Control Repurchase
Notice.  In connection with
any repurchase of Securities pursuant to this Section 3.09, the Company
shall give written notice of the occurrence of a Change in Control, the
repurchase right arising as a result thereof and the Change in Control Repurchase
Date to the Holders and the Trustee (the “Company Change in Control
Repurchase Notice”).  The
Company Change in Control Repurchase Notice shall be sent by first-class mail
to the Trustee and to each Holder not more than 30 days after the occurrence of
a Change in Control.  Each Company Change
in Control Repurchase Notice shall include a form of Change in Control
Repurchase Notice to be completed by a Holder and shall state:

 

(i)            the Change in Control Repurchase
Date;

 

28

 

(ii)           the Change in Control Repurchase
Price, the Conversion Price and, to the extent known at the time of such
notice, the amount of accrued but unpaid interest (including Liquidated
Damages, if any) that will be payable with respect to the Securities on the Change
in Control Repurchase Date;

 

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

 

(iv)          that the Company must receive the
Holder’s Change in Control Repurchase Notice on or before the close of business
on the third Business Day prior to the Change in Control Repurchase Date;

 

(v)           that Securities must be surrendered
to the Paying Agent to collect payment of the Change in Control Repurchase
Price and accrued but unpaid interest (including Liquidated Damages, if any);

 

(vi)          that the Change in Control Repurchase
Price for any Securities as to which a Change in Control Repurchase Notice has
been given and not withdrawn, together with any accrued but unpaid interest
(including Liquidated Damages, if any) payable with respect thereto, shall be
paid promptly following the later of the Change in Control Repurchase Date and
the time of surrender of such Securities as described in clause (v);

 

(vii)         the procedures the Holder must follow
under this Section 3.09;

 

(viii)        the conversion rights of the Securities,
including that Securities as to which a Change in Control Repurchase Notice has
been given may be converted only if such Change in Control Repurchase Notice
has been withdrawn in accordance with the terms of this Indenture;

 

(ix)           that, unless the Company defaults in
making payment of such Change in Control Repurchase Price, interest (including Liquidated
Damages, if any) on Securities covered by any Change in Control Repurchase
Notice will cease to accrue on and after the Change in Control Repurchase Date;

 

(x)            the CUSIP number of the Securities;
and

 

(xi)           the procedures for withdrawing a
Change in Control Repurchase Notice (as specified in Section 3.10).

 

At the Company’s request, which shall be made at least
three Business Days prior to the date by which the Company Change in Control
Repurchase Notice is to be given to the Holders in accordance with this Section 3.09
and at the Company’s expense, the Trustee shall give the Company Change in
Control

 

29

 

Repurchase Notice in the
Company’s name; provided that, in all cases, the
text of the Company Change in Control Repurchase Notice shall be prepared by
the Company.

 

If any of the Securities is in the form of a Global
Security, then the Company shall modify such notice to the extent necessary to
accord with the Applicable Procedures that apply to the repurchase of Global
Securities.

 

(c)           For a Security to be
so repurchased at the option of the Holder upon a Change in Control, the Paying
Agent must receive such Security with the form entitled “Option to Elect
Repurchase Upon a Change in Control” (a “Change in Control Repurchase
Notice”) on the reverse thereof duly completed, together with such
Security duly endorsed for transfer, on or before the close of business on the third
Business Day prior to the Change in Control Repurchase Date.  All questions as to the validity, eligibility
(including time of receipt) and acceptance of any Security for repurchase shall
be determined by the Company, whose determination shall be final and binding.

 

The Company shall repurchase from the Holder thereof,
pursuant to this Section 3.09, a portion of a Security if the principal
amount of such portion is $1,000 or an integral multiple of $1,000.  Provisions of this Indenture that apply to
the repurchase of all of a Security also apply to the repurchase of a portion
of a Security.

 

Any repurchase by the Company contemplated pursuant to
the provisions of this Section 3.09 shall be consummated by the delivery to
the Paying Agent of the Change in Control Repurchase Price, together with
accrued but unpaid interest (including Liquidated Damages, if any) thereon, to
be received by the Holder promptly following the later of the Change in Control
Repurchase Date and the time of delivery or book-entry transfer of the Security
to the Paying Agent in accordance with this Section 3.09.

 

Notwithstanding anything herein to the contrary, any
Holder delivering to the Paying Agent the Change in Control Repurchase Notice
contemplated by this Section 3.09(c) shall have the right to withdraw
such Change in Control Repurchase Notice at any time prior to the close of
business on the Change in Control Repurchase Date by delivery of a written
notice of withdrawal to the Paying Agent at the principal office of the Paying
Agent in accordance with Section 3.10.

 

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

 

Notwithstanding anything herein to the contrary, the
Company’s obligations pursuant to this Section 3.09 shall be satisfied if
a third party makes an offer to repurchase outstanding Securities after a
Change in Control in the manner and at the times and otherwise in compliance in
all material respects with

 

30

 

the requirements of this Section 3.09
and such third party purchases all Securities properly tendered and not
withdrawn pursuant to the requirements of this Section 3.09.

 

(d)           Not more than 30 days after the
occurrence of a Change in Control, the Company shall use its commercially reasonable
efforts to either (i) obtain the consents under all existing indebtedness
required to permit the repurchase of the Securities pursuant to any Company
Change in Control Repurchase Notice or (ii) repay in full all existing
indebtedness and terminate all commitments under all existing indebtedness, in
each case the terms of which would prohibit the repurchase of the Securities
pursuant to any Company Change in Control Repurchase Notice; provided that if
no Holders deliver a Change in Control Repurchase Notice prior to such date or
if the Company shall have satisfied its obligations to repurchase the
Securities of all Holders that have submitted a Change in Control Repurchase
Notice, the Company shall be deemed to have satisfied the requirements of this Section 3.09(d).

 

Section 3.10.  Effect of Repurchase Notice or Change in Control Repurchase Notice.  Upon receipt by the Paying Agent
of a Repurchase Notice or Change in Control Repurchase Notice, the Holder of
the Security in respect of which such Repurchase Notice or Change in Control Repurchase
Notice, as the case may be, was given shall (unless such Repurchase Notice or
Change in Control Repurchase Notice is withdrawn as specified in the following
two paragraphs) thereafter be entitled to receive solely the Repurchase Price
or Change in Control Repurchase Price, together with accrued but unpaid
interest (including Liquidated Damages, if any) thereon, to but not including
the Repurchase Date or Change in Control Repurchase Date, as the case may be,
with respect to such Security.  Such Repurchase
Price or Change in Control Repurchase Price, together with accrued but unpaid
interest (including Liquidated Damages, if any) thereon, to but not including
the Repurchase Date or Change in Control Repurchase Date, as the case may be,
shall be paid to such Holder, subject to receipt of funds by the Paying Agent,
promptly following the later of (x) the Repurchase Date or the Change in
Control Repurchase Date, as the case may be, with respect to such Security (provided that the conditions in Section 3.08 or Section 3.09,
as applicable, have been satisfied) and (y) the time of delivery or book-entry
transfer of such Security to the Paying Agent by the Holder thereof in the
manner required by Section 3.08 or Section 3.09(c), as
applicable.  Securities in respect of
which a Repurchase Notice or Change in Control Repurchase Notice, as the case
may be, has been given by the Holder thereof may not be converted pursuant to Article 10
hereof on or after the date of the delivery of such Repurchase Notice or Change
in Control Repurchase Notice, as the case may be, unless such Repurchase Notice
or Change in Control Repurchase Notice, as the case may be, has first been
validly withdrawn as specified in the following two paragraphs.

 

A Repurchase Notice or Change in Control Repurchase
Notice, as the case may be, may be withdrawn by means of a written notice of
withdrawal delivered

 

31

 

to the office of the
Paying Agent in accordance with the Repurchase Notice or Change in Control Repurchase
Notice, as the case may be, at any time prior to the close of business on the
Business Day prior to the Repurchase Date or the Change in Control Repurchase
Date, as the case may be, specifying:

 

(i)            if the Security
with respect to which such notice of withdrawal is being submitted is a
Security in definitive form, the certificate number of such Security, or if
such Security is a Global Security, the notice must comply with the Applicable
Procedures;

 

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

 

(iii)          the principal
amount, if any, of such Security which remains subject to the original Repurchase
Notice or Change in Control Repurchase Notice, as the case may be, and which
has been or will be delivered for repurchase by the Company.

 

There shall be no repurchase of any Securities pursuant
to Section 3.08 if an Event of Default (other than a default in the
payment of the Redemption Price) has occurred prior to, on or after, as the
case may be, the giving by the Holders of such Securities of the required Repurchase
Notice and such Event of Default is continuing. 
The Paying Agent will promptly return to the respective Holders thereof
any Securities (x) with respect to which a Repurchase Notice has been withdrawn
in compliance with this Indenture, or (y) held by it during the continuance of
an Event of Default (other than a default in the payment of the Repurchase Price)
in which case, upon such return, the Repurchase Notice with respect thereto
shall be deemed to have been withdrawn.

 

Section 3.11.  Deposit of Repurchase Price or Change in Control Repurchase Price.  Prior to 11:00 a.m. (New York
City time) on the Business Day immediately following the Repurchase Date or the
Change in Control Repurchase Date, as the case may be, the Company shall
deposit with the Trustee or with the Paying Agent (or, if the Company or a
Subsidiary thereof or an Affiliate of either of them is acting as the Paying
Agent, shall segregate and hold in trust as provided in Section 2.04) an
amount of money (in immediately available funds if deposited on such Business
Day) sufficient to pay the aggregate Repurchase Price or Change in Control Repurchase
Price, as the case may be, together with accrued but unpaid interest (including
Liquidated Damages, if any) thereon, to but not including the Repurchase Date
or Change in Control Repurchase Date, as the case may be, of all the Securities
or portions thereof which are to be repurchased as of the Repurchase Date or
Change in Control Repurchase Date, as the case may be.

 

Section 3.12.  Securities Repurchased in Part.  Any
Security in definitive form that is to be repurchased only in part shall be
surrendered at the office of the Paying Agent (with, if the Company or the
Trustee so requires, due endorsement by, or a written instrument of transfer in
form satisfactory to the Company and the

 

32

 

Trustee duly
executed by, the Holder thereof or such Holder’s attorney duly authorized in
writing) and the Company shall execute and the Trustee shall authenticate and
deliver to the Holder of such Security, without service charge, one or more new
Securities in definitive form, of any authorized denomination as requested by
such Holder in aggregate principal amount equal to, and in exchange for, the
portion of the principal amount of the Security in definitive form so
surrendered which is not repurchased.

 

Section 3.13.  Covenant to Comply with Securities Laws upon Repurchase of Securities.  When complying with the provisions
of Sections 3.08 or 3.09 hereof (so long as such offer or repurchase
constitutes an “issuer tender offer” for purposes of Rule 13e-4
(which term, as used herein, includes any successor provision thereto) under
the Exchange Act at the time of such offer or repurchase), the Company shall (i) comply
in all material respects with Rule 13e-4 and Rule 14e-1
under the Exchange Act, (ii) file the related Schedule TO (or any
successor schedule, form or report) under the Exchange Act and (iii) otherwise
comply in all material respects with all federal and state securities laws so
as to permit the rights and obligations under Sections 3.08 or 3.09 to be
exercised in the time and in the manner specified in Sections 3.08 or 3.09.

 

Section 3.14.  Repayment to the Company.  To the
extent that the aggregate amount of cash deposited by the Company pursuant to Section 3.11
exceeds the aggregate Repurchase Price or Change in Control Repurchase Price,
as the case may be, of the Securities or portions thereof which the Company is
obligated to repurchase as of the Repurchase Date or Change in Control Repurchase
Date, as the case may be, together with accrued but unpaid interest (including Liquidated
Damages, if any) thereon, then, unless otherwise agreed in writing with the
Company, promptly after the Business Day following the Repurchase Date or
Change in Control Repurchase Date, as the case may be, the Trustee shall return
any such excess to the Company together with interest, if any, thereon (subject
to the provisions of Section 7.01(f)).

 

ARTICLE 4

COVENANTS

 

Section 4.01.  Payment of Securities.  The Company
shall promptly make all payments and deliveries in respect of the Securities on
the dates and in the manner provided in the Securities or pursuant to this
Indenture.  Any amounts to be given to
the Trustee or Paying Agent, as the case may be, shall be deposited with the
Trustee or Paying Agent, as the case may be, by 11:00 a.m. (New York City
time), on the dates required pursuant to Section 2.04 hereof.  Interest installments, Liquidated Damages, principal
amount, Redemption Price, Repurchase Price, Change in Control Repurchase Price
and interest, if any, due on overdue amounts shall be considered paid on the
applicable date due if at 11:00 a.m. (New York City time) on such date,
the Trustee or the Paying Agent, as the case may be, holds, in accordance with
this Indenture, money sufficient to pay all such amounts then due.

 

33

 

The Company shall, to the extent permitted by law, pay
interest on overdue amounts at the rate per annum set forth in paragraph 1 of
the Securities, compounded semi-annually, which interest shall accrue from the
date such overdue amount was originally due to the date payment of such amount,
including interest thereon, has been made or duly provided for.  All such interest shall be payable on
demand.  The accrual of such interest on
overdue amounts shall be in addition to the continued accrual of interest on
the Securities.

 

Section 4.02.  SEC and Other Reports.  The
Company shall file with the Trustee, within 15 days after it files such annual
and quarterly reports, information, documents and other reports with the SEC,
copies of its annual report and the information, documents and other reports
(or copies of such portions of any of the foregoing as the SEC may by rules and
regulations prescribe) which the Company is required to file with the SEC
pursuant to Section 13 or 15(d) of the Exchange Act provided that
such information shall be deemed to be filed with the Trustee to the extent it
has been filed on the SEC’s EDGAR System and such information is publicly
available.  In the event the Company is
at any time no longer subject to the reporting requirements of Section 13
or 15(d) of the Exchange Act, it shall continue to provide the Trustee
with reports containing substantially the same information as would have been
required to be filed with the SEC had the Company continued to have been
subject to such reporting requirements. 
In such event, such reports shall be provided to the Trustee at the
times the Company would have been required to provide reports had it continued
to have been subject to such reporting requirements.  In addition, the Company shall comply with
the other provisions of TIA Section 314(a).

 

Section 4.03.  Compliance Certificate; Notice of Default.

 

(a)           The Company shall deliver to the
Trustee within 120 days after the end of each fiscal year of the Company
(beginning with the fiscal year ending on June 30, 2005) an Officers’
Certificate, stating whether or not to the best knowledge of the signers
thereof the Company is in default in the performance and observance of any of
the terms, provisions and conditions of this Indenture (without regard to any
period of grace or requirement of notice provided hereunder), and if the
Company shall be in default, specifying all such defaults and the nature and
status thereof of which the signers thereof may have knowledge.

 

(b)           The Company shall, so long as any of
the Securities are outstanding, deliver to the Trustee promptly, and in any
event within 15 days after becoming aware of any Default or Event of Default
under this Indenture, an Officers’ Certificate specifying such Default or Event
of Default and what action the Company is taking or proposes to take with
respect thereto.  The Trustee shall not
be deemed to have knowledge of a Default or Event of Default unless one of its
Responsible Officers receives written notice of the Default or Event of Default
from the Company or any of the Holders.

 

34

 

Section 4.04.  Further Instruments and Acts.  Upon
request of the Trustee, the Company will execute and deliver such further
instruments and do such further acts as may be reasonably necessary or proper
to carry out more effectively the purposes of this Indenture.

 

Section 4.05.  Maintenance of Office or Agency.  The
Company will maintain in the Borough of Manhattan, The City of New York, an
office or agency of the Trustee, Registrar, Paying Agent and Conversion Agent
where Securities may be presented or surrendered for payment, where Securities
may be surrendered for registration of transfer, exchange, repurchase,
redemption or conversion and where notices and demands to or upon the Company
in respect of the Securities and this Indenture may be served.  The Trustee’s Corporate Trust Office shall
initially be such office or agency where Securities may be surrendered for
payment, and shall initially be such office or agency for all of the other
aforesaid purposes.  The Company shall
give prompt written notice to the Trustee of the location, and of any change in
the location, of any such office or agency (other than a change in the location
of the office or agency of the Trustee). 
If at any time the Company shall fail to maintain any such required
office or agency or shall fail to furnish the Trustee with the address thereof,
such presentations, surrenders, notices and demands may be made or served at
the address of the Trustee set forth in Section 12.02.  The Company may also from time to time
designate one or more other offices or agencies where the Securities may be
presented or surrendered for any or all such purposes, and may from time to
time rescind such designations; provided that
no such designation or rescission shall in any manner relieve the Company of
its obligation to maintain at least one Paying Agent having an office or agency
in the Borough of Manhattan, The City of New York.

 

Section 4.06.  Delivery of Certain Information.  At
any time when the Company is not subject to Section 13 or 15(d) of
the Exchange Act, upon the request of a Holder or any Beneficial Owner of
Securities or holder or Beneficial Owner of Common Stock delivered upon
conversion thereof, the Company will promptly furnish or cause to be furnished Rule 144A
Information (as defined below) to such Holder or any Beneficial Owner of
Securities or holder or Beneficial Owner of Common Stock delivered upon
conversion thereof or to a prospective purchaser of any such security
designated by any such holder, as the case may be, to the extent required to
permit compliance by such Holder or holder with Rule 144A under the
Securities Act in connection with the resale of any such security.  “Rule 144A Information”
shall be such information as is specified pursuant to Rule 144A(d)(4) under
the Securities Act or any successor provisions. 
Whether a Person is a Beneficial Owner shall be determined by the
Company to the Company’s reasonable satisfaction.

 

Section 4.07.  Liquidated Damages.  If at any
time Liquidated Damages become payable by the Company pursuant to the Registration
Rights Agreement, the Company shall promptly deliver to the Trustee a
certificate to that effect and stating (i) the amount of such Liquidated
Damages that are payable and (ii) the

 

35

 

date on which
such Liquidated Damages are payable pursuant to the terms of the Registration
Rights Agreement.  Unless and until a
Responsible Officer of the Trustee receives such a certificate, the Trustee may
assume without inquiry that no Liquidated Damages are payable.

 

ARTICLE 5

SUCCESSOR CORPORATION

 

Section 5.01.  When the Company May Consolidate, Merge or Transfer Assets.  The Company shall not consolidate
with or merge with or into any other Person or sell, lease exchange or
otherwise transfer (in one transaction or a series of related transactions) all
or substantially all of its properties and assets to any other Person, unless:

 

(a)           (i) the Company shall be the
resulting or surviving corporation or (ii) the Person (if other than the
Company) formed by such consolidation or into which the Company is merged or
the Person which acquires by sale, lease, exchange or other transfer all or
substantially all of the properties and assets of the Company (A) shall be
a corporation, limited partnership, limited liability company or other business
entity organized and validly existing under the laws of the United States or
any State thereof or the District of Columbia, and (B) shall expressly
assume, by an indenture supplemental hereto, executed and delivered to the
Trustee, in form satisfactory to the Trustee, all of the obligations of the
Company under the Securities and this Indenture;

 

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

 

(c)           the Company shall have delivered to
the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating
that such consolidation, merger, sale, lease, exchange or other transfer and,
if a supplemental indenture is required in connection with such transaction,
such supplemental indenture, comply with this Article 5 and that all
conditions precedent herein provided for relating to such transaction have been
satisfied.

 

For purposes of the foregoing, the transfer (by lease,
assignment, sale or otherwise) of the properties and assets of one or more
Subsidiaries (other than to the Company or another Subsidiary of the Company),
which, if such assets were owned by the Company would constitute all or
substantially all of the properties and assets of the Company, shall be deemed
to be the transfer of all or substantially all of the properties and assets of
the Company.  The successor Person formed
by such consolidation or into which the Company is merged or the successor
Person to which such sale, lease, exchange or other transfer is made shall
succeed to, and (except in the case of a lease) be substituted for, and may
exercise every right and power of, the Company under this Indenture with the
same effect as if such successor had been named as the Company herein; and
thereafter, except in the case of a lease and except for obligations the
Company

 

36

 

may have under a
supplemental indenture pursuant to Section 9.06, the Company shall be
discharged from all obligations and covenants under this Indenture and the
Securities.  Subject to Section 9.06,
the Company, the Trustee and the successor Person shall enter into a
supplemental indenture to evidence the succession and substitution of such
successor Person and such discharge and release of the Company, as applicable.

 

ARTICLE 6

DEFAULTS AND REMEDIES

 

Section 6.01.  Events of Default.  Subject to
the provisions set forth below in this Section 6.01, each of the following
events is an “Event of Default”:

 

(a)           the failure to pay interest
(including Liquidated Damages, if any) on any Securities when the same becomes
due and payable and the continuation of such default for a period of 30 days,
whether or not such failure shall be due to compliance with agreements with respect
to any other indebtedness or any other cause and whether or not prohibited by
the subordination provisions of this Indenture;

 

(b)           the failure to pay the principal of
any Securities, when such principal becomes due and payable, at Stated Maturity,
upon acceleration, upon redemption or otherwise (including the failure to make
cash payments due upon conversion or make a payment to repurchase Securities
tendered pursuant to a Repurchase Notice or Change in Control Repurchase Notice),
whether or not such failure shall be due to compliance with agreements with
respect to any other indebtedness or any other cause and whether or not
prohibited by the subordination provisions of this Indenture;

 

(c)           the failure to provide a Company
Change in Control Repurchase Notice in accordance with the terms of Section 3.09(b) hereof;

 

(d)           a default in the observance or
performance of any other covenant or agreement contained in this Indenture
which default continues for a period of 60 days after the Company receives
written notice specifying the default (and demanding that such default be
remedied) from the Trustee or the beneficial Holders of at least 25% of the
outstanding principal amount of the Securities (except in the case of a default
with respect to Section 5.01, which will constitute an Event of Default
with such notice requirement but without such passage of time requirement);

 

(e)           a default under any mortgage,
indenture or instrument under which there may be issued or by which there may
be secured or evidenced any indebtedness of the Company or any of its
Subsidiaries, or the payment of which is guaranteed by the Company or any of
its Subsidiaries, whether such indebtedness now exists or is created after the
issuance of the Securities, which 

 

37

 

default (i) is caused by a failure to
pay principal of or premium, if any, or interest on such indebtedness after any
applicable grace period provided in such indebtedness on the date of such
default (a “Payment Default”) or (ii) results
in the acceleration of such indebtedness prior to its express maturity and, in
either such case, the principal amount of such indebtedness, together with the
principal amount of any other such indebtedness under which there has been a
Payment Default or the maturity of which has been so accelerated, aggregates at
least $10,000,000; provided that
if any such default is cured or waived or any such acceleration rescinded, or
such indebtedness is repaid, within a period of 45 days from the continuation
of such default beyond the applicable grace period or the occurrence of such
acceleration, as the case may be, such event of default and any consequential
acceleration of the Securities shall be automatically rescinded, so long as
such rescission does not conflict with any judgment or decree;

 

(f)            one or more judgments in an
uninsured aggregate amount in excess of $10,000,000 shall have been rendered
against the Company or any of its Subsidiaries and remain undischarged, unpaid
or unstayed for a period of 60 days after such judgment or judgments become
final and nonappealable;

 

(g)           the Company or any of its Significant
Subsidiaries pursuant to or under or within the meaning of any Bankruptcy Law:

 

(i)    commences a voluntary case or proceeding;

 

(ii)   consents to the entry of an order for relief
against it in an involuntary case or proceeding;

 

(iii)  consents to the appointment of a custodian of
it or for all or substantially all of its property;

 

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

 

(v)   shall generally not pay its debts when such
debts become due or shall admit in writing its inability to pay its debts
generally; or

 

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

 

(i)    is for relief against the Company or any
Significant Subsidiary of the Company in an involuntary case or proceeding;

 

(ii)   appoints a custodian of the Company or any
Significant Subsidiary of the Company for all or substantially all of its
properties; or

 

(iii)  orders the liquidation of the Company or any
Significant Subsidiary of Company;

 

38

 

and in each
case the order or decree remains unstayed and in effect for 60 consecutive
days.

 

Section 6.02.  Acceleration.

 

(a)           If an Event of Default (other than an
Event of Default specified in  clause (g) or
(h) of Section 6.01) shall occur and be continuing, the Trustee may,
and at the written request of the Holders of at least 25% in principal amount
of outstanding Securities shall, declare the principal of and accrued but
unpaid interest (including Liquidated Damages, if any) on all the Securities to
be due and payable by notice in writing to the Company (the “Acceleration Notice”). 
Such notice shall specify the respective Event of Default and that it is
a “notice of acceleration.”  Upon the
giving of an Acceleration Notice, the principal of and accrued but unpaid
interest (including Liquidated Damages, if any) on all the Securities shall
become immediately due and payable.  If
an Event of Default specified in clause (g) or (h) of Section 6.01
occurs and is continuing, then all unpaid Obligations on all of the outstanding
Securities shall ipso facto become and be
immediately due and payable without any declaration or other act on the part of
the Trustee or any Holder.

 

(b)           At any time after a declaration of
acceleration with respect to the Securities as described in the preceding
paragraph, the Holders of a majority in aggregate principal amount of the
Securities at the time outstanding may rescind and cancel such declaration and
its consequences (i) if the rescission would not conflict with any
judgment or decree, (ii) if all existing Events of Default have been cured
or waived except nonpayment of principal or interest (including Liquidated
Damages, if any) that has become due solely because of such acceleration, (iii) if
interest on overdue installments of interest (to the extent the payment of such
interest is lawful) and on overdue principal, which has become due otherwise
than by such declaration of acceleration, has been paid and (iv) if the
Company has paid the Trustee its reasonable compensation and reimbursed the
Trustee for its expenses, disbursements and advances.  No such rescission shall affect any
subsequent Event of Default or impair any right consequent thereto.

 

Section 6.03.  Other Remedies.  If an Event of
Default occurs and is continuing, the Trustee may pursue any available remedy
to collect the payment of the principal amount of all the Securities plus accrued
but unpaid interest (including Liquidated Damages, if any) thereon, or to
enforce the performance of any provision of the Securities or this Indenture.

 

The Trustee may maintain a proceeding even if the
Trustee does not possess any of the Securities or does not produce any of the
Securities in the proceeding.  A delay or
omission by the Trustee or any Holder in exercising any right or remedy
accruing upon an Event of Default shall not impair the right or remedy or
constitute a waiver of, or acquiescence in, the Event of Default.  No

 

39

 

remedy is exclusive of
any other remedy.  All available remedies
are cumulative to the extent permitted by law.

 

Section 6.04.  Waiver of Past Defaults.  The Holders
of a majority in aggregate principal amount of the Securities at the time
outstanding, by notice in writing to the Trustee (and without notice to any
other Holder), may waive an existing Event of Default and its consequences,
except (i) an Event of Default described in Section 6.01(a) or 6.01(b),
(ii) an Event of Default in respect of a provision that under Section 9.02
cannot be amended without the consent of each Holder affected or (iii) an
Event of Default which constitutes a failure to convert any Security in
accordance with the terms of Article 10. 
When an Event of Default is waived, it is deemed cured, but no such
waiver shall extend to any subsequent or other Event of Default or impair any
consequent right.  This Section 6.04
shall be in lieu of Section 316(a)(1)(B) of the TIA and such Section 316(a)(1)(B) is
hereby expressly excluded from this Indenture, as permitted by the TIA.

 

Section 6.05.  Control by Majority.  The Holders
of a majority in aggregate principal amount of the Securities at the time outstanding
may direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee or of exercising any trust or power conferred
on the Trustee.  However, the Trustee may
refuse to follow any direction that conflicts with law or this Indenture or
that the Trustee determines in good faith is unduly prejudicial to the rights
of other Holders or would involve the Trustee in personal liability unless the
Trustee is offered indemnity satisfactory to it.  This Section 6.05 shall be in lieu of Section 316(a)(1)(A) of
the TIA and such Section 316(a)(1)(A) is hereby expressly excluded
from this Indenture, as permitted by the TIA.

 

Section 6.06.  Limitation on Suits.  A Holder may
not pursue any remedy with respect to this Indenture or the Securities unless:

 

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

 

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

 

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

 

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

 

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

 

40

 

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

 

Section 6.07.  Rights of Holders to Receive Payment and to Convert. 
Notwithstanding any other provision of this Indenture, the
right of any Holder to receive payment of interest installments (including Liquidated
Damages, if any), the principal amount, Redemption Price, Repurchase Price,
Change in Control Repurchase Price or interest, if any, due on overdue amounts
in respect of the Securities held by such Holder, on or after the respective
due dates expressed in the Securities, and to convert the Securities in
accordance with Article 10, or to bring suit for the enforcement of any
such payment on or after such respective dates or the enforcement of the right
to convert, shall not be impaired or affected adversely without the consent of
such Holder.

 

Section 6.08.  Collection Suit by Trustee.  If an
Event of Default described in Section 6.01(a) or 6.01(b) occurs
and is continuing, the Trustee may recover judgment in its own name and as
trustee of an express trust against the Company or any other obligor upon the
Securities for the whole amount owing with respect to the Securities and the
amounts provided for in Section 7.07.

 

Section 6.09.  Trustee May File Proofs of Claim.  In
case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to the Company or any other obligor upon the Securities or
the property of the Company or of such other obligor or their creditors, the
Trustee (irrespective of whether any amounts in respect of the Securities shall
then be due and payable as therein expressed or by declaration or otherwise and
irrespective of whether the Trustee shall have made any demand on the Company
for the payment of any such amounts) shall be entitled and empowered, by
intervention in such proceeding or otherwise,

 

(a)           to file and prove a claim for any
accrued but unpaid amounts due in respect of the Securities, and to file such
other papers or documents as may be necessary or advisable in order to have the
claims of the Trustee (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel or
any other amounts due the Trustee under Section 7.07) and of the Holders
allowed in such judicial proceeding, and

 

(b)           to collect and receive any moneys or
other property payable or deliverable on any such claims and to distribute the
same;

 

and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or similar
official in any such judicial proceeding is hereby authorized by each Holder to
make such payments to the Trustee and, in the event that the Trustee shall
consent to the making of such payments directly to the Holders, to pay the
Trustee any amount due it for the reasonable compensation, expenses,
disbursements and 

 

41

 

advances of
the Trustee, its agents and counsel, and any other amounts due the Trustee
under Section 7.07.

 

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

 

Section 6.10.  Priorities.  If the Trustee
collects any money pursuant to this Article 6, it shall pay out the money
in the following order:

 

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

 

SECOND:  to
Holders for amounts due and unpaid on the Securities and for any accrued but
unpaid interest amounts due (including Liquidated Damages, if any) in respect
of the Securities, ratably, without preference or priority of any kind,
according to such amounts due and payable on the Securities; and

 

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

 

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

 

Section 6.11.  Suits.  In any suit for
the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as Trustee, a court in
its discretion may require the filing by any party litigant (other than the
Trustee) in the suit of an undertaking to pay the costs of the suit, and the
court in its discretion may assess reasonable costs, including reasonable
attorneys’ fees and expenses, against any party litigant in the suit, having
due regard to the merits and good faith of the claims or defenses made by the
party litigant.  This Section 6.11
does not apply to a suit by the Trustee, a suit by a Holder pursuant to Section 6.07
or a suit by Holders of more than 10% in aggregate principal amount of the
Securities at the time outstanding.  This
Section 6.11 shall be in lieu of Section 315(e) of the TIA and
such Section 315(e) is hereby expressly excluded from this Indenture,
as permitted by the TIA.

 

Section 6.12.  Waiver of Stay, Extension or Usury Laws. 
The Company covenants (to the fullest extent that it may
lawfully do so) that it will not at any time insist upon, or plead, or in any
manner whatsoever claim or take the benefit or advantage of, any stay or
extension law or any usury or other law wherever enacted, now or at any time
hereafter in force, which would prohibit or forgive the Company from paying all
or any portion of any amounts due in respect of the Securities, as contemplated
herein, or which may affect the covenants or the performance of this Indenture;
and the Company (to the fullest extent that it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law

 

42

 

and covenants
that it will not hinder, delay or impede the execution of any power herein
granted to the Trustee, but will suffer and permit the execution of every such
power as though no such law had been enacted.

 

ARTICLE 7

TRUSTEE

 

Section 7.01.  Duties of Trustee.

 

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

 

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

 

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

 

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

 

This Section 7.01(b) shall be in lieu of Section 315(a) of
the TIA and such Section 315(a) is hereby expressly excluded from
this Indenture, as permitted by the TIA.

 

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

 

(i)    this paragraph (c) does not limit the
effect of paragraph (b) of this Section 7.01;

 

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

 

43

 

(iii)  the Trustee shall not be liable with respect
to any action it takes or omits to take in good faith in accordance with a
direction received by it pursuant to Section 6.02, 6.04 or 6.05.

 

Sections 7.01(c)(i),
(ii) and (iii) shall be in lieu of Sections 315(d)(1), 315(d)(2) and
315(d)(3) of the TIA and such Sections 315(d)(1), 315(d)(2) and
315(d)(3) are hereby expressly excluded from this Indenture, as permitted
by the TIA.

 

(d)           Every provision of this Indenture
that in any way relates to the Trustee is subject to Sections 7.01(a), (b), (c),
(e) and (f).

 

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

 

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

 

Section 7.02.  Rights of Trustee.  Subject to its
duties and responsibilities under the TIA,

 

(a)           the Trustee may conclusively rely and
shall be fully protected in acting or refraining from acting upon any
resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of
indebtedness or other paper or document reasonably believed by it to be genuine
and to have been signed or presented by the proper party or parties;

 

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

 

(c)           the Trustee may execute any of the
trusts or powers hereunder or perform any duties hereunder either directly or
by or through agents, attorneys, custodians or nominees, and without limiting
the generality of the foregoing, the Trustee may appoint an agent (i) to
obtain the quotations referred to in the definition of “Trading Price of the
Securities, “and (ii) to report such quotations or determinations to the
Company and the Depositary on behalf of the Trustee; and the Trustee shall not
be responsible for any misconduct or negligence on the part of any agent,
attorney, custodian or nominee appointed with due care by it hereunder;

 

44

 

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

 

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

 

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

 

(g)           any request or direction of the
Company mentioned herein shall be sufficiently evidenced by a Company Order and
any resolution of the Board of Directors shall be sufficiently evidenced by a
Board Resolution;

 

(h)           the Trustee shall not be bound to
make any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture, note, other evidence of
indebtedness or other paper or document, but the Trustee, in its discretion,
may make such further inquiry or investigation into such facts or matters as it
may see fit, and, if the Trustee shall determine to make such further inquiry
or investigation, it shall be entitled, during normal business hours, to
examine the books, records and premises of the Company, personally or by agent
or attorney at the sole cost of the Company and shall incur no liability or
additional liability of any kind by reason of such inquiry or investigation;

 

(i)            except with respect to Section 4.01,
the Trustee shall have no duty to inquire as to the performance of the Company
with respect to the covenants contained in Article 4 of this
Indenture.  In addition, the Trustee
shall not be deemed to have knowledge of an Event of Default except (i) any
Default or Event of Default occurring pursuant to Sections 4.01, 6.01(a) and
6.01(b) or (ii) any Default or Event of Default of which the Trustee
shall have received written notification or obtained actual knowledge;

 

(j)            delivery of reports, information and
documents to the Trustee under Section 4.02 of this Indenture is for
informational purposes only and the Trustee’s receipt of the foregoing shall
not constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Company’s
compliance with any of their covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officers’ Certificates)

 

(k)           the rights, privileges, protections,
immunities and benefits given to the Trustee, including its right to be
indemnified, are extended to, and shall be

 

45

 

enforceable by, the Trustee in each of its
capacities hereunder (including Paying Agent, Registrar and Conversion Agent),
and to all other Persons employed to act hereunder, including the Trustee’s
officers, employees, agents and custodians;

 

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

 

(m)          neither the Trustee nor any of its officers,
directors, employees or agents shall be liable for any action taken or omitted
under this Indenture or in connection therewith except to the extent caused by
the Trustee’s gross negligence, bad faith or willful misconduct, as determined
by the final judgment of a court of competent jurisdiction, no longer subject
to appeal or review; and anything in this Indenture to the contrary
notwithstanding, to the extent permitted by the TIA in no event shall the
Trustee be liable for special, indirect or consequential loss or damage of any
kind whatsoever (including but not limited to lost profits), even if the
Trustee has been advised of the likelihood of such loss or damage and
regardless of the form of action;

 

(n)           the Trustee is not required to give
any bond or surety with respect to the performance of its duties or the
exercise of its powers under this Indenture; and

 

(o)           notwithstanding anything else herein
contained, whenever any provision of this Indenture indicates that any
confirmation of a condition or event is qualified by the words “to the
knowledge of” or “known to” the Trustee or other words of similar meaning, said
words shall mean and refer to the current awareness of one or more Responsible
Officers who are located at the Corporate Trust Office.

 

Section 7.03.  Individual Rights of Trustee.  The Trustee
in its individual or any other capacity may become the owner or pledgee of
Securities and may otherwise deal with the Company or its Affiliates with the
same rights it would have if it were not Trustee.  Any Paying Agent, Registrar, Conversion Agent
or co-registrar may do the same with like rights.  However, the Trustee must comply with
Sections 7.10 and 7.11.

 

Section 7.04.  Trustee’s Disclaimer.  The Trustee
makes no representation as to the validity or adequacy of this Indenture or the
Securities, shall not be accountable for the Company’s use or application of
the proceeds from the Securities, and shall not be responsible for any
statement in any registration statement for the Securities under the Securities
Act or in any offering document for the Securities, the Indenture or the
Securities (other than its certificate of

 

46

 

authentication),
or the determination as to which Beneficial Owners are entitled to receive any
notices hereunder.

 

Section 7.05.  Notice of Defaults.  If an Event of
Default occurs and if it is actually known to a Responsible Officer of the
Trustee, the Trustee shall give to each Holder notice of all current Event of Defaults
known to it within 30 days after any such Event of Default occurs or, if later,
within 15 days after it is known to the Trustee, unless such Event of Default
shall have been cured or waived before the giving of such notice.  Notwithstanding the preceding sentence,
except in the case of an Event of Default described in Sections 6.01(a) and
6.01(b), the Trustee may withhold the notice if and so long as a trust
committee of officers of the Trustee in good faith determines that withholding
the notice is in the interests of Holders. 
The second sentence of this Section 7.05 shall be in lieu of the
proviso to Section 315(b) of the TIA and such proviso is hereby
expressly excluded from this Indenture, as permitted by the TIA.

 

Section 7.06.  Reports by Trustee to Holders.  Within 60
days after each May 15 beginning with the May 15 following the date
of this Indenture, the Trustee shall mail to each Holder a brief report dated
as of such May 15 that complies with TIA Section 313(a), if required
by such Section 313(a), but only to the extent any such report is required
to be given pursuant to said TIA Section 313(a), or any successor
provision of the TIA.  The Trustee also
shall comply with TIA Section 313(b).

 

Commencing at the time this Indenture is qualified
under the TIA, a copy of each report at the time of its mailing to Holders
shall be filed with the SEC and each securities exchange, if any, on which the
Securities are listed.  The Company
agrees to notify the Trustee in writing promptly whenever the Indenture is
qualified under the TIA and the Securities become listed on any securities exchange
and of any delisting thereof.

 

Section 7.07.  Compensation and Indemnity.  The Company
agrees:

 

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

 

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

 

47

 

(c)           to indemnify the Trustee or any
predecessor Trustee and their respective agents, officers, directors and
employees for, and to hold them harmless against, any loss, damage, claim,
liability, cost or expense (including attorneys’ fees and expenses and taxes
(other than franchise, capital, net worth, employment and ad valorem taxes and taxes
based upon, measured by or determined by the income or gross receipts of the
Trustee)) incurred without negligence or bad faith on their part, arising out
of or in connection with the acceptance or administration of this trust,
including the costs and expenses of defending themselves against any claim
(whether asserted by the Company or any Holder or any other Person) or
liability in connection with the Trustee’s exercise or performance of any of
its powers or duties hereunder.

 

To secure the Company’s payment obligations in this Section 7.07,
the Trustee shall have a lien prior to the Securities on all money or property
held or collected by the Trustee, except any money or property held in trust to
pay interest installments (including Liquidated Damages, if any), the principal
amount, Redemption Price, Repurchase Price, Change in Control Repurchase Price
or interest, if any, due on overdue amounts, as the case may be, in respect of
any particular Securities.

 

The Company’s payment obligations pursuant to this Section 7.07
shall survive the discharge of this Indenture or the earlier termination or
resignation of the Trustee.  When the
Trustee incurs expenses after the occurrence of an Event of Default specified
in Section 6.01(g) or Section 6.01(h), the expenses, including
the reasonable charges and expenses of its counsel, are intended to constitute
expenses of administration under any Bankruptcy Law.

 

Any amounts due and owing the Trustee hereunder
(whether in nature of fees, expenses, indemnification payments or reimbursement
for advances) which have not been paid by or on behalf of the Company within 15
days following written notice thereof given to the Company in accordance with
the provisions of Section 12.02, shall bear interest at an interest rate
equal to the Trustee’s announced prime rate in effect from time to time, plus
four percent (4.0%) per annum.

 

Section 7.08.  Replacement of Trustee.  The
Trustee may resign by so notifying the Company; provided
that no such resignation shall be effective until a successor Trustee has
accepted its appointment pursuant to this Section 7.08.  The Holders of a majority in aggregate
principal amount of the Securities at the time outstanding may remove the
Trustee by so notifying the Trustee and the Company in writing.  The Company shall remove the Trustee if:

 

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

 

(b)           the Trustee is adjudged bankrupt or
insolvent;

 

48

 

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

 

(d)           the Trustee otherwise becomes
incapable of acting.

 

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

 

A successor Trustee shall deliver a written acceptance
of its appointment to the retiring Trustee and to the Company satisfactory in
form and substance to the retiring Trustee and the Company.  Thereupon the resignation or removal of the
retiring Trustee shall become effective, and the successor Trustee shall have
all the rights, powers and duties of the Trustee under this Indenture; provided, notwithstanding the foregoing, the effectiveness
of any such resignation or removal shall be conditioned on receipt by the
retiring Trustee of all amounts due and owing under Section 7.07
hereof.  The successor Trustee shall mail
a notice of its succession to Holders. 
The retiring Trustee shall promptly transfer all property held by it as
Trustee to the successor Trustee, subject to the lien provided for in Section 7.07.

 

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

 

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

 

Section 7.09.  Successor Trustee by Merger Etc.  If the
Trustee consolidates with, merges or converts into, or transfers all or
substantially all its corporate trust business or assets (including the
administration of the trust created by this Indenture) to, another Person, the
resulting or surviving Person without any further act shall be the successor
Trustee.  As soon as practicable, the
successor Trustee shall mail a notice of its succession to the Company and the
Holders.  Any such successor must
nevertheless be eligible and qualified under the provisions of Section 7.01
hereof.

 

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

 

49

 

excluded from
the operation of TIA Section 310(b)(1) any indenture or indentures
under which other securities or certificates of interest or participation in
other securities of the Company are outstanding if the requirements for such
exclusion set forth in TIA Section 310(b)(1) are met.

 

If at any time the Trustee shall cease to be eligible
in accordance with this Section 7.10, it shall resign immediately in the
manner and with the effect specified in Article 7.

 

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

 

Section 7.12.  Force Majeure.  To the extent
permitted by the TIA, in no event shall the Trustee be liable for any failure
or delay in the performance of its obligations hereunder because of
circumstances beyond the Trustee’s control, including, but not limited to, acts
of God, flood, war (whether declared or undeclared), terrorism, fire, riot,
embargo or government action, including any laws, ordinances, regulations,
governmental action or the like which delay, restrict or prohibit the providing
of the services contemplated by this Indenture.

 

ARTICLE 8

DISCHARGE OF INDENTURE

 

Section 8.01.  Discharge of Liability on Securities.  When
(a) the Company delivers to the Trustee all outstanding Securities (other
than Securities replaced pursuant to Section 2.07) for cancellation or (b) all
outstanding Securities have become due and payable and the Company deposits
with the Trustee cash and shares of Common Stock (as applicable under the terms
of this Indenture) sufficient to pay all amounts due and owing on all
outstanding Securities (other than Securities replaced pursuant to Section 2.07),
and if in either case the Company pays all other sums payable hereunder by the
Company, then this Indenture shall, subject to Section 7.07, cease to be
of further effect.  The Trustee shall
join in the execution of a document prepared by the Company acknowledging
satisfaction and discharge of this Indenture on demand at the cost and expense
of the Company and accompanied by an Officers’ Certificate and Opinion of
Counsel.

 

Section 8.02.  Repayment to the Company.  The
Trustee, the Paying Agent and the Conversion Agent shall return to the Company
upon written request any money or shares of Common Stock held by them for the
payment of any amount and any shares of Common Stock with respect to the
Securities that remain unclaimed for two years, subject to applicable unclaimed
property law.  After return to the
Company, as applicable, Holders entitled to the money or shares of Common Stock
must look to the Company for payment as general creditors unless an applicable
abandoned property law designates another person and the Trustee,

 

50

 

the Paying
Agent and the Conversion Agent shall have no further liability to the Holders
with respect to such money or shares of Common Stock for that period commencing
after the return thereof.

 

ARTICLE 9

AMENDMENTS

 

Section 9.01.  Without Consent of Holders.  The
Company and the Trustee may amend or supplement this Indenture or the
Securities without notice to or consent of any Holder:

 

(a)           to comply with Article 5 or Section 10.11;

 

(b)           to cure any ambiguity, omission,
defect or inconsistency in this Indenture;

 

(c)           to make any other change that does
not adversely affect the rights of any Holder in any material respect; provided that any change to conform this Indenture to the
Offering Memorandum shall be deemed not to adversely affect the rights of any
Holder;

 

(d)           to make provisions with respect to
the conversion right of the Holders pursuant to the requirements hereof;

 

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

 

(f)            to comply with the provisions of the
TIA, or with any requirement of the SEC arising as a result of the
qualification of this Indenture under the TIA.

 

Section 9.02.  With Consent of Holders.

 

The Company and the Trustee may amend or supplement
this Indenture or the Securities without notice to any Holder but with the
consent of the Holders of a majority in aggregate principal amount of the
Securities at the time outstanding.  The
Holders of a majority in aggregate principal amount of the Securities at the
time outstanding may waive compliance by the Company with restrictive
provisions of this Indenture other than as set forth in this Section 9.02
below, and waive any past Event of Default under this Indenture and its
consequences, except a default in the payment of the principal of, or
Redemption Price, Repurchase Price, Change in Control Repurchase Price of, or
any interest on, any Security, or in respect of a provision which under this
Indenture cannot be modified or amended without the consent of the Holder of
each outstanding Security affected.

 

Subject to Section 9.04, without the consent of
each Holder affected, however, an amendment, supplement or waiver, including a
waiver pursuant to Section 6.04, may not:

 

51

(a)           change the Stated Maturity of, or any
payment date of any installment of interest (including Liquidated Damages, if
any) on, any Security;

 

(b)           reduce the principal amount or
Redemption Price of, or the rate of interest (including Liquidated Damages, if
any) on, any Security, whether upon acceleration, redemption or otherwise, or
alter the manner of calculation of interest or the rate of accrual thereof on
any Security;

 

(c)           change the currency for payment of
principal of, or interest (including Liquidated Damages, if any) on, any
Security;

 

(d)           impair the right to institute suit
for the enforcement of any payment of any amount with respect to any Security
when due;

 

(e)           adversely affect the conversion
rights provided in Article 10;

 

(f)            modify the provisions of this
Indenture requiring the Company to make an offer to repurchase Securities upon
a Change in Control pursuant to Section 3.09, or to repurchase the
Securities at the option of the Holders pursuant to Section 3.08;

 

(g)           reduce the percentage of principal
amount of the outstanding Securities necessary to modify or amend this
Indenture or to consent to any waiver provided for in this Indenture;

 

(h)           modify the subordination provisions
in a manner adverse to the holders;

 

(i)            waive a default in the payment of
any amount or shares of Common Stock with respect to any Security when due
(except as provided in Section 6.02); or

 

(j)            make any changes to Section 6.04,
Section 6.07 or this Section 9.02.

 

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

 

After an amendment under this Section 9.02
becomes effective, the Company shall mail to each Holder a notice briefly
describing the amendment.  Failure to
mail the notice or a defect in the notice shall not affect the validity of the
amendment.

 

Section 9.03.  Compliance with Trust Indenture Act.  Every
supplemental indenture executed pursuant to this Article 9 shall comply
with the TIA.

 

Section 9.04.  Revocation and Effect of Consents.  Until an
amendment, waiver or other action by Holders becomes effective, a consent
thereto by a

 

52

 

Holder of a Security hereunder is a continuing consent by such Holder
and every subsequent Holder of such Security or portion of such Security that
evidences the same obligation as the consenting Holder’s Security, even if
notation of the consent, waiver or action is not made on such Security.  However, unless otherwise agreed by such
Holder or a predecessor Holder, any such Holder or subsequent Holder may revoke
the consent, waiver or action as to such Holder’s Security or portion of the
Security if the Trustee receives the notice of revocation before the date the
amendment, waiver or action becomes effective. 
After an amendment, waiver or action becomes effective, it shall bind
every Holder.

 

Section 9.05.  Notation on or Exchange of Securities.  Securities
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article 9 may, and shall if required by the Trustee, bear
a notation in form approved by the Trustee as to any matter provided for in
such supplemental indenture.  If the
Company shall so determine, new Securities so modified as to conform, in the
opinion of the Trustee and the Board of Directors, to any such supplemental
indenture may be prepared and executed by the Company, and such new Securities may
be authenticated and delivered by the Trustee in exchange for outstanding
Securities.

 

Section 9.06.  Trustee to Sign Supplemental Indentures.  The
Trustee shall sign any supplemental indenture authorized pursuant to this Article 9
if the amendment contained therein does not, in the sole determination of the
Trustee, adversely affect the rights, duties, powers, privileges, benefits,
indemnities, liabilities or immunities of the Trustee.  If it does, the Trustee may, but need not,
sign such supplemental indenture.  In
signing any supplemental indenture the Trustee shall be entitled to receive,
and (subject to the provisions of Section 7.01) shall be fully protected
in relying upon, an Officers’ Certificate and an Opinion of Counsel stating
that such amendment is authorized or permitted by this Indenture.

 

Section 9.07.  Effect of Supplemental Indentures.  Upon
the execution of any supplemental indenture under this Article 9, this
Indenture shall be modified in accordance therewith, and such supplemental indenture
shall form a part of this Indenture for all purposes, and every Holder of
Securities theretofore or thereafter authenticated and delivered hereunder
shall be bound thereby.

 

ARTICLE 10

CONVERSION OF THE SECURITIES

 

Section 10.01.  Conversion Privilege.

 

(a)           Subject to the provisions of this Article 10,
a Holder of a Security may convert such Security into cash and Common Stock, if
any, equal to the Conversion Value on or prior to June 15, 2025, if any of
the following conditions is satisfied:

 

53

 

(i)            prior to June 15, 2023, during
any calendar quarter (the “Quarter”), if
the Common Stock Price for at least 20 Trading Days in the period of 30
consecutive Trading Days ending on the last Trading Day of the Quarter
immediately preceding such Quarter (appropriately adjusted to take into account
the occurrence, during such 30 consecutive Trading Day period, of any event
requiring adjustment of the Conversion Price under this Indenture) is more than
125% of the Conversion Price on such 30th Trading Day;

 

(ii)           on or after June 15, 2023, at
all times on or after any date thereafter on which the Common Stock Price is
more than 125% of the then current Conversion Price of the Securities;

 

(iii)          during the five consecutive Business
Day period after any five consecutive Trading Day period in which the Trading
Price per $1,000 principal amount of Securities, as determined following a
request by a Holder in accordance with the procedures described below in Section 10.01(f),
for each Trading Day of such five Trading Day period was less than 95% of the
product of the average of the Common Stock Price for such five Trading Day
period and the then current Conversion Rate.

 

(iv)          such Security has been called for
redemption by the Company pursuant to Section 3.01 and the redemption has
not yet occurred, so long as the Holder surrenders such Security for conversion
prior to the close of business on the date that is one Business Day prior to
the applicable Redemption Date, even if the Security is not otherwise
convertible at such time;

 

(v)           (A)          a
distribution to all or substantially all holders of Common Stock of rights,
warrants or options entitling them (for a period commencing no earlier than the
date of distribution and expiring not more than 60 days after the date of
distribution) to subscribe for or purchase shares of Common Stock at a price
less than the average Common Stock Price for the 10 Trading Days immediately
preceding the date such distribution was first publicly announced; or

 

(B)           a distribution to all or
substantially all holders of Common Stock of cash or other assets, evidences of
Company indebtedness, rights or warrants to purchase or subscribe for Capital
Stock or other securities of the Company, where the fair market value of such
distribution per share of Common Stock (as determined by the Board of Directors,
whose determination shall be conclusive evidence of such fair market value) exceeds
10% of the Common Stock Price on the Trading Day immediately preceding the date
such distribution was first publicly announced;

 

54

 

provided that
the Holder shall have no right to convert any Security pursuant to this Section 10.01(a)(v) if
the Holder of a Security otherwise participates in the distribution described
in this Section 10.01(a)(v) on an as-converted basis solely into
Common Stock at the then applicable Conversion Price without conversion of such
Holder’s Securities; or

 

(vi)          if the Company is party to a Change in
Control or a consolidation, merger, share exchange, sale of all or
substantially all of its properties and assets or other similar transaction, in
each case pursuant to which the Common Stock is subject to conversion into cash,
securities or other property from and after the effective date of such
transaction until and including the date that is 30 days after the effective
date of such transaction.

 

(b)           If a Holder elects to convert its
Securities in connection with a specified corporate transaction pursuant to
Sections 10.01(a)(v)(A) and 10.01(a)(v)(B) that occurs on or prior to
June 15, 2012, which constitutes a Change in Control (other than relating
to the composition of our Board of Directors as described in clause (d) of
the definition of Change in Control in Section 1.01) and 10% or more of
the fair market value of the consideration for the common shares (as determined
by the Board of Directors, whose determination shall be conclusive evidence of
such fair market value) in the corporate transaction consists of (i) cash
(not including cash payments for fractional shares and cash payments pursuant
to dissenters’ appraisal rights), (ii) other property or (iii) securities
that are not traded or scheduled to be traded (not including cash payments for
fractional shares and cash payments pursuant to dissenters’ appraisal rights) immediately
following such transaction on a U.S. national securities exchange or the Nasdaq
National Market (a “Non-Stock Change in
Control”), then the Conversion Price of the Securities being
converted by such Holder at that time shall be adjusted so that such Holder
will be entitled to receive a number of Common Shares equal to the sum of (A) the
aggregate principal amount of the Securities to be converted divided by the
Conversion Price per $1,000 principal amount of Securities and (B) the
number of additional Common Stock (the “Additional Shares”)
determined in the manner set forth below; provided that
if the Share Price in such transaction is equal to or greater than $34.0 or
less than $9.91 (subject in each case to adjustment as described below), no
increase in the Conversion Rate shall be made; and provided
further that in no event will the Conversion Rate exceed 100.9081 per
$1,000 principal amount of Securities, subject to adjustments in the same
manner as the Conversion Price as set forth in this Indenture.  For the avoidance of doubt, the adjustment
provided for in this Section 10.01(b) shall only be made with respect
to the Securities being converted in connection with such Change in Control and
shall not be effective as to any Securities not so converted.

 

The increase in the Conversion Rate expressed as a number
of Additional Shares per $1,000 principal amount of Securities will be
determined by the Company by reference to the table attached as Schedule A
hereto, based on the

 

55

 

date the corporate
transaction becomes effective (the “Effective Date”)
and the share price paid per share of Common Stock in the corporate transaction
(the “Share Price”); provided
that if holders of the Common Stock receive only cash in such
corporate transaction, the Stock Price shall be the cash amount paid per share.
Otherwise, the Stock Price will be the average of the stock price per share of
the Common Stock on the five Trading Days prior to but not including the
Effective Date of the Non-Stock Change in Control,  provided  further that if the Share
Price is between two Share Price amounts in the table or the Effective Date is
between two Effective Dates in the table, the Company shall determine the
number of Additional Shares by a straight-line interpolation between the number
of Additional Shares set forth for the higher and lower Share Price amounts and
the two dates, as applicable, based on a 365-day year.

 

The Share Prices set forth in the first row of the
table (i.e., column headers) in Schedule A hereto and set forth in the
proviso at the end of paragraph (d) above will be adjusted as of any date
on which the Conversion Price of the Securities is adjusted pursuant to the
Indenture.  The adjusted Share Prices
will equal the Share Prices applicable immediately prior to such adjustment,
multiplied by a fraction, the numerator of which is the Conversion Price immediately
prior to the adjustment giving rise to the Common Stock Price adjustment and
the denominator of which is the Conversion Price as so adjusted.  The number of Additional Shares will be
adjusted in the same manner as the Conversion Price as set forth in this
Indenture.

 

(c)           Notwithstanding the foregoing, and in
lieu of adjusting the Conversion Rate as set forth in Section 10.01(b), in
the case of a Non-Stock Change in Control constituting a Public Acquirer Change
in Control, the Company may elect that, from and after the Effective Date of such
Public Acquirer Change in Control, the right to convert a Security will be changed
into a right to convert a Security into a number of shares of Acquirer Common
Stock at the Conversion Rate specified below. 
At any time prior to the twentieth day immediately preceding the
proposed Effective Date of the Public Acquirer Change in Control, the Company
may irrevocably elect to adjust the terms of the Holder’s conversion privilege
set forth in Section 10.14 such that following such adjustment Acquirer
Common Stock shall be deemed to be the Common Stock and the Conversion Rate on
and following the Effective Date of such transaction described in this Section 10.01(c) shall
be the product of:

 

(i)      the Conversion Rate in effect immediately
prior to the Effective Date of such Change in Control, times

 

(ii)     the average of the quotients obtained, for
each Trading Day in the 10 consecutive Trading Day period commencing on the
Trading Day next succeeding the Effective Date of such Public Acquirer Change
in Control (the ‘‘Valuation Period’’),
of:

 

56

 

(A)          the
Acquisition Value of our Common Stock on each such Trading Day in the Valuation
Period, divided by

 

(B)           the Closing Sale Price
of the Acquirer Common Stock on each such Trading Day in the Valuation Period.

 

(d)           In the case of the foregoing Sections
10.01(a)(v)(A) and 10.01(a)(v)(B), the Company shall cause a notice of
such distribution to be filed with the Trustee and the Conversion Agent and to
be mailed to each Holder of Securities no later than 20 days prior to the
Ex-Dividend Date for such distribution. 
Once the Company has given such notice, Holders may surrender their
Securities for conversion at any time thereafter until the earlier of the close
of business on the Business Day prior to the Ex-Dividend Date or the Company’s
announcement that such distribution will not take place.  The “Ex-Dividend Date”
for any such issuance or distribution means the date immediately prior to the
commencement of “ex-dividend” trading for such issuance or distribution on the
Nasdaq National Market or such other United States national securities exchange
or The Nasdaq Stock Market or similar system of automated dissemination of
quotations of securities prices on which the Common Stock is then listed or
quoted.

 

(e)           For each Quarter of the Company
commencing prior to June 15, 2023, the Conversion Agent, on behalf of the
Company, will determine, on the first Business Day following the last Trading
Day of the prior Quarter, whether the Securities are convertible pursuant to
clause (i) of Section 10.01(a), and, if so, will notify the Trustee
and the Company in writing.  From June 15,
2023, the Conversion Agent will determine, on behalf of the Company, on a daily
basis, whether the Securities are convertible pursuant to clause (ii) of Section 10.01(a) and,
if so, will notify the Trustee and the Company in writing.

 

(f)            The Trustee shall have no obligation
to determine the Trading Price of the Securities and whether the Securities are
convertible pursuant to clause (iii) of Section 10.01(a) unless
the Company has requested such determination; and the Company shall have no
obligation to make such request unless a Holder of the Securities provides the
Company with reasonable evidence that the Trading Price per $1,000 principal
amount of Securities is reasonably likely to be less than 95% of the product of
the Common Stock Price and the Conversion Rate then in effect per $1,000
principal amount of Securities.  At such
time, the Company shall instruct the Trustee to determine the Trading Price of
the Securities beginning on the next Trading Day and on each successive Trading
Day for 10 consecutive Trading Days to determine whether the Trading Prices for
the Securities for each Trading Day in any five consecutive Trading Day period
within such 10 Trading Day period is less than 95% of the product of (A) the
average of the Common Stock Price for such five Trading Day Period and (B) the
then current Conversion Rate, and to notify the Company accordingly.

 

57

 

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

 

If a Security is called for redemption pursuant to Section 3.01,
in order to convert such Security if such Security is then convertible pursuant
to the terms of the Indenture, the Holder must deliver the Security to the
Conversion Agent (or, if the Security is held in book-entry form, complete and
deliver to the Depositary appropriate instructions in accordance with the
Applicable Procedures) at any time prior to the close of business on the day
that is one Business Day prior to the applicable Redemption Date (unless the
Company shall default in paying the Redemption Price when due, in which case
the conversion right shall terminate on the date such default is cured and such
Security is redeemed).  A Security in
respect of which a Holder has delivered a Repurchase Notice pursuant to Section 3.08
or a Change in Control Repurchase Notice pursuant to Section 3.09
exercising the option of such Holder to require the Company to repurchase such
Security may be converted only if such Repurchase Notice or Change in Control Repurchase
Notice, as the case may be, is withdrawn by a written notice of withdrawal
delivered to the Paying Agent prior to the close of business on the Business
Day prior to the Repurchase Date or the Change in Control Repurchase Date, as
the case may be, in accordance with Section 3.10.

 

(h)           A Holder of Securities is not
entitled to any rights of a holder of Common Stock until such Holder has
converted its Securities into Common Stock.

 

Section 10.02.  Conversion Procedure.

 

(a)           To convert a Security, a Holder must (i) if
the Security is in definitive form, complete and manually sign the irrevocable
conversion notice on the back of the Security and deliver such notice to the
Conversion Agent, (ii) if the Security is in definitive form, surrender
the Security to the Conversion Agent, (iii) if the Security is in
definitive form, furnish appropriate endorsements and transfer documents if
required by the Registrar or the Conversion Agent, (iv) pay any transfer
or other tax, if required by Section 10.03 and (v) if the Security is
held in book-entry form, complete and deliver to the Depositary appropriate
instructions pursuant to the Applicable Procedures.  The later of (x) the date on which the Holder
satisfies all of the foregoing requirements and (y) the Determination Date is
the “Conversion Date.”  As promptly as practicable after the
Conversion Date and in any event within five Business Days thereof, the Company
shall deliver to the Holder through the Conversion Agent cash and shares of
Common Stock in the amounts calculated in accordance with Section 10.14.

 

(b)           The Person in whose name the Security
is registered shall be deemed to be a stockholder of record on the Conversion
Date; provided that no surrender of a Security
on any date when the stock transfer books of the Company

 

58

 

shall be closed shall be effective to
constitute the Person or Persons entitled to receive the shares of Common Stock
upon such conversion as the record holder or holders of such shares of Common
Stock on such date, but such surrender shall be effective to constitute the
Person or Persons entitled to receive such shares of Common Stock as the record
holder or holders thereof for all purposes at the close of business on the next
succeeding day on which such stock transfer books are open; provided, further that such conversion shall be at the
Conversion Price in effect on the date that such Security shall have been
surrendered for conversion, as if the stock transfer books of the Company had
not been closed.  Upon conversion of a
Security, such Person shall no longer be a Holder of such Security.

 

(c)           No payment or adjustment will be made
for accrued but unpaid interest (including Liquidated Damages, if any) on a
converted Security or for dividends or distributions on shares of Common Stock
issued upon conversion of a Security. 
The Company shall not adjust the Conversion Price to account for the
accrued but unpaid interest.  Notwithstanding
the foregoing, if Securities are converted after the close of business on a
regular record date and prior to the opening of business on the next Interest
Payment Date, including the date of maturity, Holders of such Securities at the
close of business on such regular record date shall receive the accrued but
unpaid interest (including Liquidated Damages, if any) payable on such
Securities on the corresponding Interest Payment Date notwithstanding the
conversion.  In such event, such
Security, when surrendered for conversion, must be accompanied by delivery of a
check payable to the Conversion Agent in an amount equal to the accrued but
unpaid interest (including Liquidated Damages, if any) payable on such Interest
Payment Date on the portion so converted. 
If such payment does not accompany such Security, the Security shall not
be converted; provided that no such check shall
be required if such Security has been called for redemption on a Redemption Date
within the period between the close of business on such record date and the
opening of business on such Interest Payment Date, or if such Security is
surrendered for conversion on the Interest Payment Date.  If the Company defaults in the payment of
interest (including Liquidated Damages, if any) payable on the Interest Payment
Date, the Conversion Agent shall promptly repay such funds to the Holder.

 

(d)           Upon surrender of a Security that is
converted in part, the Company shall execute, and the Trustee shall, upon
receipt of a Company Order, authenticate and deliver to the Holder, a new
Security equal in principal amount to the unconverted portion of the Security
surrendered.

 

Section 10.03.  Taxes on Conversion.  If a Holder
converts a Security, the Company shall pay any documentary, stamp or similar
issue or transfer tax due on the issue of shares of Common Stock upon such
conversion.  However, the Holder shall
pay any tax which is due because the Holder requests the shares to be issued in
a name other than the Holder’s name.  The
Conversion Agent may refuse to deliver the certificates representing the Common
Stock being issued in a

 

59

 

name other than the Holder’s name until the Conversion Agent receives a
sum sufficient to pay any tax which will be due because the shares are to be
issued in a name other than the Holder’s name. 
Nothing herein shall preclude any tax withholding required by law or
regulations.

 

Section 10.04.  Company to Provide Stock.  The Company
shall, prior to issuance of any Securities hereunder, and from time to time as
may be necessary, reserve, out of its authorized but unissued Common Stock, a
sufficient number of shares of Common Stock to permit the conversion of all
outstanding Securities into shares of Common Stock.  The certificates representing the shares of
Common Stock issued upon conversion of Transfer Restricted Securities shall
bear a legend substantially in the following form:

 

“THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE ‘‘SECURITIES ACT’’), OR ANY STATE OR OTHER SECURITIES
LAWS.  NEITHER THIS SECURITY NOR ANY
INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF
SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. BY ITS ACQUISITION HEREOF
OR OF A BENEFICIAL INTEREST HEREIN, THE HOLDER (1) REPRESENTS THAT IT IS A
‘‘QUALIFIED INSTITUTIONAL BUYER’’ (AS DEFINED IN RULE 144A UNDER THE SECURITIES
ACT (‘‘RULE 144A’’)) AND IS PURCHASING IN COMPLIANCE WITH RULE 144A UNDER THE
SECURITIES ACT, (2) AGREES NOT TO OFFER, SELL OR OTHERWISE TRANSFER SUCH
SECURITY PRIOR TO THE DATE WHICH IS THE LATER OF (X) TWO YEARS (OR SUCH SHORTER
PERIOD OF TIME AS PERMITTED BY RULE 144(k) OF THE SECURITIES ACT) AFTER THE
LATER OF THE LAST DATE OF ORIGINAL ISSUANCE OF THIS SECURITY (OR ANY
PREDECESSOR OF THIS SECURITY) AND THE LAST DATE ON WHICH SYMMETRICOM, INC. OR
ANY AFFILIATE OF SYMMETRICOM, INC. WAS THE OWNER OF THIS SECURITY (OR ANY
PREDECESSOR OF THIS SECURITY) AND (Y) SUCH LATER DATE, IF ANY, AS MAY BE
REQUIRED BY APPLICABLE LAW (THE ‘‘RESALE RESTRICTION TERMINATION DATE’’) EXCEPT
(A) TO SYMMETRICOM, INC. OR ANY SUBSIDIARY THEREOF, (B) PURSUANT TO A
REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES
ACT AND WHICH CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER, (C)

 

60

 

PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE) OR (D) 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 THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
BEING MADE IN RELIANCE ON RULE 144A AND (3) AGREES THAT IT WILL GIVE TO
EACH PERSON TO WHOM THIS SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE
EFFECT OF THIS LEGEND; AND, IN EACH OF THE FOREGOING CASES, TO REQUIRE THAT A
CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF THIS
SECURITY IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO SYMMETRICOM, INC. AND
THE TRUSTEE (WITH RESPECT TO TRANSFERS OF SECURITIES) OR THE TRANSFER AGENT
(WITH RESPECT TO TRANSFERS OF COMMON STOCK). THIS LEGEND WILL BE REMOVED UPON
THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.”

 

The Company covenants that all shares of Common Stock
delivered upon conversion of the Securities shall be newly issued shares or
treasury shares, shall be duly authorized, validly issued, fully paid and
non-assessable and shall be free from preemptive rights and free of any lien or
adverse claim.

 

The Company will endeavor promptly to comply with all
federal and state securities laws regulating the offer and delivery of shares
of Common Stock upon conversion of Securities, if any, and will list or cause
to have quoted such shares of Common Stock on each national securities exchange
or in the over-the-counter market or such other market on which the Common
Stock is then listed or quoted.

 

Section 10.05.  Adjustment of Conversion Price.  The Conversion
Price shall be adjusted (without duplication) from time to time by the Company
as follows:

 

(a)           In case the Company shall (i) pay
a dividend or other distribution in shares of Common Stock to all or
substantially all holders of Common Stock, (ii) subdivide its outstanding
Common Stock into a greater number of shares or (iii) combine its
outstanding Common Stock into a smaller number of shares, the Conversion Price
shall be adjusted so that the Holder of any Security thereafter surrendered for
conversion shall be entitled to receive the number of shares of Common Stock
which it would have owned or been entitled to receive had such

 

61

 

Security been converted immediately prior to
the happening of such event.  For the
purposes of calculating the Conversion Price adjustment pursuant to this Section 10.05(a),
Holders of a Security shall be treated as if they had the right to convert the
Security solely into Common Stock at the then applicable Conversion Price.  An adjustment made pursuant to this Section 10.05(a) shall
become effective immediately after the record date in the case of a dividend or
distribution and shall become effective immediately after the effective date in
the case of subdivision, combination or reclassification.

 

(b)           In case the Company shall issue to
all or substantially all holders of Common Stock rights, warrants or options
entitling such holders (for a period commencing no earlier than the date of
distribution and expiring not more than 60 days after the date of distribution)
to subscribe for or purchase shares of Common Stock (or securities convertible
into Common Stock) at a price per share less than the average Common Stock
Price for the 10 Trading Days immediately preceding the date the distribution
of such rights, warrants or options was first publicly announced by the Company,
the Conversion Price shall be decreased so that the Conversion Price shall
equal the price determined by multiplying the Conversion Price in effect
immediately prior to the record date for such issue by a fraction,

 

(i)      the numerator of which shall be the number
of shares of Common Stock outstanding on such date of public announcement, plus
the number of shares which the aggregate subscription or purchase price for the
total number of shares of Common Stock offered by the rights, warrants or
options so issued (or the aggregate conversion price of the convertible
securities offered by such rights, warrants or options) would purchase at such average
Common Stock Price, and

 

(ii)     the denominator of which shall be the
number of shares of Common Stock outstanding on such date of public
announcement plus the number of additional shares of Common Stock offered by
such rights, warrants or options (or into which the convertible securities so
offered by such rights, warrants or options are convertible).

 

provided
that no adjustment will be made if Holders of the notes are entitled to
participate in the distribution on substantially the same terms as holders of
our Common Stock as if such Holders had converted their Securities solely into
Common Stock immediately prior to such distribution at the then applicable
Conversion Price.  Such adjustment shall
be made successively whenever any such rights, warrants or options are issued,
and shall become effective immediately after such record date.  If at the end of the period during which such
rights, warrants or options are exercisable not all rights, warrants or options
shall have been exercised, the adjusted Conversion Price shall be immediately
readjusted to what it would have been upon application of the foregoing
adjustment substituting the number of additional shares of Common Stock
actually issued (or the number of shares of Common Stock issuable upon

 

62

 

conversion of
convertible securities actually issued) for the total number of shares of
Common Stock offered (or convertible securities offered).

 

(c)           In case the Company shall distribute
to all or substantially all holders of Common Stock any shares of Capital Stock
of the Company (other than Common Stock) or evidences of its indebtedness,
other securities or other assets, or shall distribute to all holders of Common
Stock, rights (other than the rights distributed pursuant to the Rights Plan to
the extent that such rights have been distributed to the holders of the
Securities as described below), warrants or options to subscribe for or
purchase any of its securities (excluding (i) those rights, options and
warrants referred to in Section 10.05(b); (ii) those dividends, distributions,
subdivisions and combinations referred to in Section 10.05(a); and (iii) those
dividends and distributions paid in cash referred to in Section 10.05(e)),
then in each such case the Conversion Price shall be decreased so that the same
shall equal the price determined by multiplying the Conversion Price in effect
immediately prior to the date of such distribution by a fraction,

 

(i)      the numerator of which shall be the Market
Price on the record date for the determination of holders of Common Stock
entitled to receive such distribution less the fair market value on such record
date (as determined by the Board of Directors, whose determination shall be
conclusive evidence of such fair market value) of the portion of the Capital
Stock or evidences of indebtedness, securities or assets so distributed or of
such rights, warrants or options, in each case 
applicable to one share of Common Stock, and

 

(ii)     the denominator of which shall be the
Market Price on such record date,

 

such
adjustment to become effective immediately after the record date for such
distribution; provided that if the numerator of
the foregoing fraction is less than $1.00 (including a negative amount), then
in lieu of the foregoing adjustment, adequate provision shall be made so that each
Holder shall have the right to receive upon conversion, in addition to the cash
and Common Stock issuable upon such conversion, the distribution such Holder
would have received had such Holder converted its Security solely into Common
Stock at the then applicable Conversion Price immediately prior to the record
date for such distribution; provided that
no adjustment will be made if Holders of the notes are entitled to participate
in the distribution on substantially the same terms as holders of our Common
Stock as if such Holders had converted their Securities solely into Common
Stock immediately prior to such distribution at the then applicable Conversion
Price;

 

Notwithstanding the foregoing, if the distribution by
the Company to all holders of its Common Stock consists of Capital Stock of, or
similar equity interests in, a Subsidiary or other business unit of the Company
(unless such Capital Stock or similar equity interests are distributed to
holders in such

 

63

 

distribution as if such
holders had converted their Securities into Common Stock), the Conversion Price
shall be decreased so that the same shall be equal to the rate determined by
multiplying the Conversion Price in effect on the record date with respect to
such distribution by a fraction:

 

(i)            the numerator of which shall be the
average Common Stock Price over the Spinoff Valuation Period; and

 

(ii)           the denominator of which shall be the
sum of (x) the average Common Stock Price over the ten (10) consecutive
Trading Day period (the “Spinoff Valuation Period”)
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 the New York Stock Exchange or such other quotation system or national
or regional exchange or market on which the Common Stock is then listed or
quoted plus (y) the average fair market value (as determined by the Board of
Directors and described in a resolution of the Board of Directors, which
determination shall equal the average closing sale price where such closing
sale price is available) over the Spinoff Valuation Period of the portion of
the assets 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 that the Company may in lieu of the
foregoing adjustment make adequate provision so that each Holder shall have the
right to receive upon conversion the amount of the distribution such holder
would have received had such holder converted each Security on the record date
with respect to such distribution.  If
any dividend or distribution of the type described in this Section 10.05(c) is
declared but not so paid or made, such adjustment to the Conversion Price shall
be reversed.  In any case in which this
paragraph is applicable, Section 10.05(a), Section 10.05(b) and
the first paragraph of this Section 10.05(c) shall not be applicable.

 

To the Extent that the Company has a proffered share
rights plan (“Rights Plan”) in effect upon
conversion of Securities, the holders of the Securities will receive, in
addition to the Principal Amount and the Net Shares, the rights under the
Rights Plan, unless the rights have separated from the Common Stock at the time
of the conversion, and as a result, up on conversion the Securities, the holder
of the Securities would not be entitled to receive the rights, then in such
case the Conversion Price will be adjusted as described in this Section 10.05(b).

 

(d)           In case the Company or any Subsidiary
of the Company makes a payment in respect of a tender or exchange offer to
holders of our Common Stock where the cash and other consideration included in
the payment per share exceeds the Common Stock Price on the last day on which
tenders or exchanges may be made pursuant to the tender or exchange offer, the
Conversion Price shall be

 

64

 

decreased so that the same shall equal the
price determined by multiplying the Conversion Price in effect immediately
prior to the Expiration Time by a fraction,

 

(i)            the numerator of which shall be the
number of shares of Common Stock outstanding (including any tendered or
exchanged shares) at the last time (the “Offer Expiration Time”)
tenders or exchanges may be made pursuant to such tender or exchange offer (as
it may be amended) multiplied by the Common Stock Price on the Trading Day next
succeeding the Offer Expiration Time, and

 

(ii)           the denominator of which shall be the
sum of (x) the fair market value (determined as aforesaid) of the aggregate
consideration payable to holders of Common Stock based on the acceptance (up to
any maximum specified in the terms of the tender or exchange offer) of all
shares of Common Stock 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 Offer Expiration Time and the Common Stock Price
on the Trading Day next succeeding the Offer Expiration Time,

 

such
adjustment to become effective immediately prior to the opening of business on
the day following the Expiration Time. 
If the Company is obligated to purchase shares pursuant to any such
tender or exchange offer, but the Company is permanently prevented by
applicable law from effecting any such purchases or all such purchases are
rescinded, the Conversion Price shall again be adjusted to be the Conversion
Price that would then be in effect if such tender or exchange offer had not
been made.

 

(e)           In case the Company shall declare a
cash dividend or cash distribution to all or substantially all of the holders
of Common Stock, the Conversion Price shall be decreased so that the Conversion
Price shall equal the price determined by multiplying the Conversion Price in
effect immediately prior to the record date for such dividend or distribution
by a fraction,

 

(i)      the numerator of which shall be the
average of the Common Stock Price for the three consecutive Trading Days ending
on the Trading Day immediately preceding the record date for such dividend or
distribution (the “Pre-Dividend Sale Price”),
minus the full amount of the dividend or distribution to the extent payable in
cash applicable to one share of our Common Stock, and

 

(ii)     the denominator of which shall be the
Pre-Dividend Sale Price,

 

65

 

such
adjustment to become effective immediately after the record date for such
dividend or distribution; provided that
if the numerator of the foregoing fraction is less than $1.00 (including a
negative amount), then in lieu of the foregoing adjustment, adequate provision
shall be made so that each Holder shall have the right to receive upon
conversion, in addition to the cash and Common Stock issuable upon such
conversion, the amount of cash such Holder would have received had such Holder
converted its Security solely into Common Stock at the then applicable
Conversion Price immediately prior to the record date for such cash dividend or
cash distribution.  If such cash dividend
or cash distribution is not so paid or made, the Conversion Price shall again
be adjusted to be the Conversion Price that would then be in effect if such
dividend or distribution had not been declared.

 

(f)       In case of a tender or
exchange offer made by a Person other than the Company or any Subsidiary of the
Company for an amount that increases the offeror’s ownership of Common Stock to
more than twenty-five percent (25%) of the Common Stock outstanding and shall
involve the payment by such Person 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 Offer Expiration Time exceeds the Common Stock
Price on the Trading Day next succeeding the Offer Expiration Time, and in
which, as of the Offer Expiration Time the Board of Directors is not
recommending rejection of the offer, the Conversion Price shall be decreased so
that the same shall equal the price determined by multiplying the Conversion
Price in effect immediately prior to the Offer Expiration Time by a fraction,

 

(i)      the numerator of which shall be the number
of shares of Common Stock outstanding (including any tendered or exchanged
shares) at the Offer Expiration Time multiplied by the Common Stock Price on the
Trading Day next succeeding the Offer Expiration Time, and

 

(ii)     the denominator of which shall be the sum
of (x) the fair market value (determined as aforesaid) of the aggregate
consideration payable to holders of Common Stock 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 Offer Expiration
Time (the shares deemed so accepted up to any such maximum being referred to as
the “Accepted Purchased Shares”) and (y) the
product of the number of shares of Common Stock outstanding (less any Accepted Purchased
Shares) at the Offer Expiration Time and the Common Stock Price on the Trading
Day next succeeding the Offer Expiration Time,

 

such adjustment
to become effective immediately prior to the opening of business on the day
following the Offer Expiration Time.  If
such Person is obligated to purchase shares pursuant to any such tender or
exchange offer, but such Person is

 

66

 

permanently
prevented by applicable law from effecting any such purchases or all such
purchases are rescinded, the Conversion Price shall again be adjusted to be the
Conversion Price that would then be in effect if such tender or exchange offer
had not been made.  Notwithstanding the
foregoing, the adjustment described in this Section 10.05(f) shall
not be made if, as of the Offer Expiration Time, the offering documents with
respect to such offer disclose a plan or intention to cause the Company to
engage in any transaction described in Article 5.

 

(g)           In any case in which this Section 10.05
shall require that an adjustment be made immediately following a record date
established for purposes of this Section 10.05, the Company may elect to
defer (but only until five Business Days following the filing by the Company
with the Trustee of the certificate described in Section 10.09) issuing to
the holder of any Security converted after such record date the cash, shares of
Common Stock and other Capital Stock of the Company issuable upon such
conversion over and above the cash, shares of Common Stock and other Capital
Stock of the Company issuable upon such conversion only on the basis of the
Conversion Price prior to adjustment; and, in lieu of the cash and shares the
issuance of which is so deferred, the Company shall issue or cause its transfer
agents to issue due bills or other appropriate evidence of the right to receive
such shares.

 

(h)           Before taking any action which would
cause an adjustment decreasing the Conversion Price so that the shares of
Common Stock issuable upon conversion of the Securities would be issued for
less than the par value of such Common Stock, the Company will take all
corporate action which may be necessary in order that the Company may validly
and legally issue fully paid and non-assessable shares of such Common Stock at
such adjusted Conversion Price.

 

Section 10.06.  No Adjustment.  No adjustment
in the Conversion Price shall be required unless the adjustment would require
an increase or decrease of at least 1% in the Conversion Price as last
adjusted; provided that any adjustments which by
reason of this Section 10.06 are not required to be made shall be carried
forward and taken into account in any subsequent adjustment.  All calculations under this Article 10
shall be made to the nearest cent, with one-half cent rounded up, or to the
nearest ten thousandth (0.0001) of a share, with each five hundred thousandth
(0.00005) of a share being rounded up, as the case may be.

 

No adjustment need be made upon the issuance of Common
Stock under any present or future employee benefits plan or program of the
Company or in connection with an acquisition made by the Company.

 

No adjustment need be made upon the issuance of Common
Stock pursuant to (i) the exercise of any options, warrants or rights to
purchase such Common Stock, (ii) the exchange of any exchangeable
securities for such Common Stock or (iii) the conversion of any
convertible securities into such Common Stock (except as expressly set forth
herein).

 

67

 

No adjustment need be made for a change in the par
value or a change to no par value of the Common Stock.

 

To the extent that the Securities become convertible
into cash, no adjustment need be made thereafter as to the cash.  Interest will not accrue on the cash.

 

Section 10.07.  Equivalent Adjustments.  If, as a
result of an adjustment made pursuant to Section 10.05 above, the Holder
of any Security thereafter surrendered for conversion shall become entitled to
receive any shares of Capital Stock of the Company other than shares of Common
Stock, thereafter the Conversion Price of such other shares so receivable upon
conversion of any Securities shall be subject to adjustment from time to time
in a manner and on terms as nearly equivalent as practicable to the provisions
with respect to Common Stock contained in this Article 10.

 

Section 10.08.  Adjustment for Tax Purposes.  The
Company shall be entitled to make such reductions in the Conversion Price, in
addition to those required by Section 10.05, as the Board of Directors in
its discretion shall determine to be advisable in order that any stock
dividends, subdivisions of shares, distributions of rights to purchase stock or
other securities, or distributions of securities convertible into or
exchangeable for stock hereafter made by the Company to its holders of Common
Stock shall not be taxable to such holders.

 

Section 10.09.  Notice of Adjustment.  Whenever the Conversion
Price is adjusted, or Holders become entitled to other securities or due bills,
the Company shall promptly mail to Holders a notice of the adjustment and file
with the Trustee an Officers’ Certificate briefly stating the facts requiring
the adjustment and the manner of computing it. 
The certificate shall be conclusive evidence of the correctness of such
adjustment, absent manifest error, and the Trustee may conclusively assume
that, unless and until such certificate is received by it, no such adjustment
is required.

 

Section 10.10.  Notice of
Certain Transactions. 
In case:

 

(a)           the Company shall declare a dividend
(or any other distribution) on the Common Stock; or

 

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

 

(c)           of any reclassification 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, merger, or
share exchange to which the Company is a party and for which approval of any
holders of Common Stock is required, or of

 

68

 

the sale or transfer of all or substantially
all of the properties and assets of the Company; or

 

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

 

the Company
shall cause to be filed with the Trustee and the Conversion Agent and to be
mailed to each Holder of Securities at its address appearing on the list
provided for in Section 2.05, as promptly as possible but in any event at
least ten 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, warrants or options, 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, share exchange,
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, share exchange, sale, transfer, dissolution, 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,
share exchange, transfer, dissolution, liquidation or winding-up.

 

Section 10.11.  Effect of Reclassification, Consolidation, Merger, Share Exchange or Sale on Conversion
Privilege.  If any of the
following shall occur, namely:  (i) any
reclassification or change of outstanding shares of Common Stock (other than a
change in par value, or from par value to no par value, or from no par value to
par value, or as a result of a subdivision or combination); (ii) any
consolidation, combination, merger or share exchange to which the Company is a
party other than a merger in which the Company is the resulting or surviving
corporation and which does not result in any reclassification of, or change
(other than a change in name, or par value, or from par value to no par value,
or from no par value to par value, or as a result of a subdivision or
combination) in, outstanding shares of Common Stock; or (iii) any sale or
conveyance of all or substantially all of the properties and assets of the
Company, then the Company, or such successor or purchasing corporation, as the
case may be, shall, as a condition precedent to such reclassification, change,
consolidation, merger, share exchange, sale or conveyance, execute and deliver
to the Trustee a supplemental indenture providing that the Holder of each
Security then outstanding shall have the right to convert such Security into
the kind and amount of cash, securities or other property receivable upon such
reclassification, change, consolidation, merger, share exchange, sale or
conveyance by a holder of the number of shares of Common Stock equal to the
Conversion Rate of such Security immediately prior to such reclassification,
change, consolidation, merger, share exchange, sale or conveyance.  Such supplemental indenture shall (a) provide
for adjustments of the Conversion Price which shall be as nearly equivalent as
may be practicable to

 

69

 

the
adjustments of the conversion privilege and Conversion Price provided for in
this Article 10, including, without limitation, the provisions of Section 10.14,
(b) set forth appropriate modifications to the means of determining the
Conversion Value and settlement provisions specified in this Article 10 so
as to be nearly equivalent to such provisions as may be practicable and (c) specify
the Conversion Price immediately after such transactions.  If, in the case of any such consolidation,
merger, share exchange, sale or conveyance, the stock or other securities and
property (including cash) receivable thereupon by a holder of Common Stock
includes shares of Capital Stock or other securities and property of a
corporation other than the successor or purchasing corporation, as the case may
be, in such consolidation, merger, share exchange, sale or conveyance, then such
supplemental indenture shall also be executed by such other corporation and
shall contain such additional provisions to protect the interests of the
Holders of the Securities as the Board of Directors shall reasonably consider
necessary by reason of the foregoing. 
The provision of this Section 10.11 shall similarly apply to
successive consolidations, mergers, share exchanges, sales or conveyances.  Notwithstanding the foregoing, a distribution
by the Company to all or substantially all holders of Common Stock for which an
adjustment to the Conversion Price or provision for conversion of the
Securities may be made pursuant to Section 10.05 shall not be deemed to be
a sale or conveyance of all or substantially all of the properties and assets
of the Company for purposes of this Section 10.11.

 

In the event the Company shall execute a supplemental
indenture pursuant to this Section 10.11, the Company shall promptly file
with the Trustee an Opinion of Counsel stating that such supplemental indenture
is authorized or permitted by this Indenture and an Officers’ Certificate
briefly stating the reasons therefor, the kind or amount of cash, securities or
other property receivable by Holders of the Securities upon the conversion of
their Securities after any such reclassification, change, consolidation,
merger, share exchange, sale or conveyance, any adjustment to be made with
respect thereto and that all conditions precedent have been complied with.

 

Section 10.12.  Trustee’s Disclaimer.  The
Trustee has no duty to determine when an adjustment under this Article 10
should be made, how it should be made or what such adjustment should be made,
but may accept as conclusive evidence of the correctness of any such
adjustment, and shall be fully protected in relying upon, the Officers’
Certificate with respect thereto which the Company is obligated to file with
the Trustee pursuant to Section 10.09. 
The Trustee shall not be accountable for and makes no representation as
to the validity or value of any securities or assets issued upon conversion of
Securities, and the Trustee shall not be responsible for the Company’s failure
to comply with any provisions of this Article 10.  Each Conversion Agent (other than the Company
or an Affiliate of the Company) shall have the same protection under this Section 10.12
as the Trustee.

 

70

 

The Trustee shall not be under any responsibility to
determine the correctness of any provisions contained in any supplemental
indenture executed pursuant to Section 10.11, but may accept as conclusive
evidence of the correctness thereof, and shall be protected in relying upon,
the Officers’ Certificate with respect thereto which the Company is obligated
to file with the Trustee pursuant to Section 10.11.

 

Section 10.13.  Voluntary Reduction.  The Company
from time to time may reduce the Conversion Price by any amount for any period
of time if such period is at least 20 Trading Days or such longer period as may
be required by law and if the reduction is irrevocable during such period; if
the Board of Directors determines, in good faith, that such decrease would be
in the best interests of the Company; provided that
in no event may the Conversion Price be less than the par value of a share of
Common Stock. Any such determination by the Board of Directors shall be
conclusive.

 

Section 10.14.  Conversion Value of Securities Tendered.

 

(a)           Holders tendering the Securities for
conversion shall be entitled to receive, upon conversion of such Securities,
cash and shares of Common Stock, the value of which (the “Conversion
Value”) shall be equal to the product of:

 

(i)        (A) the aggregate principal amount
of Securities to be converted divided by 1,000 multiplied by (B) the then
applicable Conversion Rate as such rate may be adjusted in accordance with the
terms of this Indenture; and

 

(ii)       the average of the daily Volume-Weighted
Average Price per share of our Common Stock for each of the ten consecutive
Trading Days (appropriately adjusted to take into account the occurrence during
such period of stock splits, stock dividends and similar events) beginning on
the second Trading Day immediately following the day the Securities are
tendered for conversion (the “Ten Day Closing Stock
Price”).

 

(b)           Subject to certain exceptions
described below and under Sections 10.01(b) and 10.01(a)(v), the Company
shall deliver the Conversion Value to converting holders as follows:

 

(i)        an amount in cash (the “Principal Return”) equal to the lesser of (a) the
Conversion Value of the Securities to be converted and (b) the aggregate
principal amount of the Securities to be converted;

 

(ii)       if the Conversion Value of the Securities
to be converted is greater than the Principal Return, an amount in whole shares
(the “Net Shares”), determined as set forth
below, equal to such aggregate Conversion Value less the Principal Return (the “Net Share Amount”); and

 

71

 

(iii)      an amount paid in cash, determined as set
forth below, in lieu of any fractional shares of Common Stock.

 

The number of Net Shares to be paid shall be
determined by dividing the Net Share Amount by the Ten Day Closing Stock Price,
and rounding down to the nearest whole share. 
Holders of Securities will not receive fractional shares upon conversion
of Securities.  In lieu of fractional
shares, Holders will receive cash for the value of the fractional shares, which
cash payment shall be based on the Ten Day Closing Stock Price.

 

The Conversion Value, Principal Return, number of Net
Shares, Net Share Amount and the cash payment for fractional shares shall be
determined by the Company on the first Business Day (the “Determination
Date”) following the ten consecutive Trading Day period beginning on
the second Trading Day immediately following the day the Securities are
tendered for conversion.

 

(c)           The Company shall pay the Principal
Return and cash for fractional shares and deliver the Net Shares, if any, as
promptly as practicable after the Conversion Date, but in no event later than
five Business Days thereafter.  Except as
provided in Section 10.02(c), delivery of the Principal Return, Net Shares
and cash in lieu of fractional shares shall be deemed to satisfy the Company’s
obligation to pay the principal amount of a converted Security and accrued but
unpaid interest (including Liquidated Damages, if any) thereon.  Any accrued interest (including Liquidated
Damages, if any) payable on a converted Security shall be deemed paid in full
rather than canceled, extinguished or forfeited.

 

(d)           Neither the Trustee nor the
Conversion Agent has any duty to determine or calculate the Conversion Value,
Principal Return, number of Net Shares, the Net Share Amount or any other
computation required under this Article 10, all of which shall be
determined by the Company (or the Trustee, as the case may be) in accordance
with the provisions of this Indenture, and the Trustee and Conversion Agent
shall not be under any responsibility to determine the correctness of any such
determinations and/or calculations and may conclusively rely on the correctness
thereof.

 

Section 10.15.  Simultaneous Adjustments.  In the
event that this Article 10 requires adjustments to the Conversion Price
under more than one of Sections 10.05(a) and (c), and the record dates for
the distributions giving rise to such adjustments shall occur on the same date,
then such adjustments shall be made by applying, first, the provisions of Section 10.05(c),
as applicable, and, second, the provisions of Section 10.05(a).  If more than one event requiring adjustment
pursuant to Section 10.05 shall occur before completing the determination
of the Conversion Price for the first event requiring such adjustment, then the
Board of Directors (whose determination shall, if made in good faith, be
conclusive) shall make such adjustments to the Conversion Price (and the
calculation thereof) after giving effect to all such events as shall preserve
for Holders the Conversion Price protection provided in Section 10.05.

 

72

 

ARTICLE 11

SUBORDINATION

 

Section 11.01.  Agreement of Subordination. The Company covenants and agrees, and each Holder
of Securities issued hereunder by its acceptance thereof likewise covenants and
agrees, that all Securities shall be issued subject to the provisions of this Article 11;
and each Person holding any Security, whether upon original issue or upon
transfer, assignment or exchange thereof, accepts and agrees to be bound by
such provisions.

 

The payment of the principal of, premium, if any, and
interest (including Liquidated Damages, if any) on, and cash upon conversion
of, all Securities (including, but not limited to, the Redemption Price with
respect to the Securities called for redemption, the Repurchase Price or the
Change in Control Purchase Price with respect to the Securities subject to
purchase in accordance with Article 3 as provided in this Indenture)
issued hereunder shall, to the extent and in the manner hereinafter set forth,
be subordinated and subject in right of payment to the prior payment in full in
cash or other payment satisfactory to the holders of Senior Indebtedness of all
Senior Indebtedness, whether outstanding at the date of this Indenture or
thereafter incurred.

 

No provision of this Article 11 shall prevent the
occurrence of any Default or Event of Default hereunder.

 

Section 11.02.  Payments to Holders. No payment shall be made with respect to the
principal of, or premium, if any, or interest (including Liquidated Damages, if
any) on, and cash upon conversion of, the Securities (including, but not
limited to, the Redemption Price with respect to the Securities to be called
for redemption or the Repurchase Price or Change in Control Purchase Price with
respect to the Securities subject to purchase in accordance with Article 3
as provided in this Indenture), except payments and distributions made by the
Trustee as permitted by the first or second paragraph of Section 11.05,
if:

 

(i)      a default in the payment of principal,
premium, interest, rent or other obligations due on any Designated Senior
Indebtedness occurs and is continuing (or, in the case of Designated Senior
Indebtedness for which there is a period of grace, in the event of such a
default that continues beyond the period of grace, if any, specified in the instrument
or lease evidencing such Designated Senior Indebtedness); or

 

(ii)     a default, other than a payment default
described in (i) above, on any Designated Senior Indebtedness occurs and
is continuing that then permits holders of such Designated Senior Indebtedness
to accelerate its maturity and the Trustee receives a notice of the default (a “Payment Blockage Notice”) from a Representative or holder of
Designated Senior Indebtedness or the Company.

 

73

 

Subject to the provisions of Section 11.05, if
the Trustee receives any Payment Blockage Notice pursuant to clause (ii) above,
no subsequent Payment Blockage Notice shall be effective for purposes of this Section unless
and until (i) at least 365 days shall have elapsed since the initial
effectiveness of the immediately prior Payment Blockage Notice and (ii) all
scheduled payments on the Securities that have come due have been paid in full
in cash. No nonpayment default that existed or was continuing on the date of
delivery of any Payment Blockage Notice to the Trustee (unless such default was
waived, cured or otherwise ceased to exist and thereafter subsequently
reoccurred) shall be, or be made, the basis for a subsequent Payment Blockage
Notice.

 

The Company may and shall resume payments on and
distributions in respect of the Securities upon:

 

(a)           in the case of a default referred to
in clause (i) above, the date upon which the default is cured or waived or
ceases to exist, or

 

(b)           in the case of a default referred to
in clause (ii) above, the earlier of the date on which such default is
cured or waived or ceases to exist or 179 days pass after the date on which the
applicable Payment Blockage Notice is received, unless this Article 11
otherwise prohibits the payment or distribution at the time of such payment or
distribution.

 

Upon any payment by the Company, or distribution of
assets of the Company of any kind or character, whether in cash, property or
securities, to creditors upon any dissolution or winding-up or liquidation or
reorganization of the Company (whether voluntary or involuntary) or in
bankruptcy, insolvency, receivership or similar proceedings, all amounts due or
to become due upon all Senior Indebtedness shall first be paid in full in cash,
or other payments satisfactory to the holders of Senior Indebtedness before any
payment is made on account of the principal of, premium, if any, or interest
(including Liquidated Damages, if any) on, and cash upon conversion of, the
Securities (except payments made pursuant to Article 8 from monies
deposited with the Trustee pursuant thereto prior to commencement of
proceedings for such dissolution, winding-up, liquidation or reorganization);
and upon any such dissolution or winding-up or liquidation or reorganization of
the Company or bankruptcy, insolvency, receivership or other proceeding, any
payment by the Company, or distribution of assets of the Company of any kind or
character, whether in cash, property or securities, to which the Holders of the
Securities or the Trustee would be entitled, except for the provision of this Article 11,
shall (except as aforesaid) be paid by the Company or by any receiver, trustee
in bankruptcy, liquidating trustee, agent or other Person making such payment
or distribution, or by the Holders of the Securities or by the Trustee under
this Indenture if received by them or it, directly to the holders of Senior
Indebtedness (pro rata to such holders on the basis of the respective amounts
of Senior Indebtedness held by such holders, or as otherwise required by law or
a court order) or their representative or representatives, or to the trustee or
trustees under any indenture pursuant to which

 

74

 

any instruments
evidencing any Senior Indebtedness may have been issued, as their respective
interests may appear, to the extent necessary to pay all Senior Indebtedness in
full in cash, or other payment satisfactory to the holders of Senior
Indebtedness, after giving effect to any concurrent payment or distribution to
or for the holders of Senior Indebtedness, before any payment or distribution
is made to the Holders of the Securities or to the Trustee.

 

For purposes of this Article 11, the words, “cash,
property or securities” shall not be deemed to include shares of stock of the
Company as reorganized or readjusted, or securities of the Company or any other
corporation provided for by a plan of reorganization or readjustment, the
payment of which is subordinated at least to the extent provided in this Article 11
with respect to the Securities to the payment of all Senior Indebtedness which
may at the time be outstanding; provided that (i) the Senior Indebtedness
is assumed by the new corporation, if any, resulting from any reorganization or
readjustment, and (ii) the rights of the holders of Senior Indebtedness
(other than leases which are not assumed by the Company or the new corporation,
as the case may be) are not, without the consent of such holders, altered by
such reorganization or readjustment. The consolidation of the Company with, or
the merger of the Company into, another corporation or the liquidation or
dissolution of the Company following the conveyance, transfer or lease of its
property as an entirety, or substantially as an entirety, to another
corporation upon the terms and conditions provided for in Article 5 shall
not be deemed a dissolution, winding-up, liquidation or reorganization for the
purposes of this Section 11.02 if such other corporation shall, as a part
of such consolidation, merger, conveyance, transfer or lease, comply with the
conditions stated in Article 5.

 

In the event of the acceleration of the Securities
because of an Event of Default, no payment or distribution shall be made to the
Trustee or any Holder of Securities in respect of the principal of, premium, if
any, or interest (including Liquidated Damages, if any) on, and cash upon
conversion of, the Securities by the Company (including, but not limited to,
the Redemption Price with respect to the Securities called for redemption or
the Repurchase Price or Change in Control Purchase Price with respect to the
Securities subject to purchase in accordance with Article 3 as provided in
this Indenture), except payments and distributions made by the Trustee as
permitted by Section 11.05, until all Senior Indebtedness has been paid in
full in cash or other payment satisfactory to the holders of Senior
Indebtedness or such acceleration is rescinded in accordance with the terms of
this Indenture. If payment of the Securities is accelerated because of an Event
of Default, the Company shall promptly notify holders of Senior Indebtedness of
such acceleration.

 

In the event that, notwithstanding the foregoing
provisions, any payment or distribution of assets of the Company of any kind or
character, whether in cash, property or securities (including, without
limitation, by way of setoff or otherwise), prohibited by the foregoing, shall
be received by the Trustee or the Holders of the Securities before all Senior
Indebtedness is paid in full, in cash or 

 

75

 

other payment
satisfactory to the holders of Senior Indebtedness, or provision is made for
such payment thereof in accordance with its terms in cash or other payment
satisfactory to the holders of Senior Indebtedness, such payment or
distribution shall be held in trust for the benefit of and shall be paid over
or delivered to the holders of Senior Indebtedness or their representative or
representatives, or to the trustee or trustees under any indenture pursuant to
which any instruments evidencing any Senior Indebtedness may have been issued,
as their respective interests may appear, as calculated by the Company, for
application to the payment of all Senior Indebtedness remaining unpaid to the
extent necessary to pay all Senior Indebtedness in full, in cash or other
payment satisfactory to the holders of Senior Indebtedness, after giving effect
to any concurrent payment or distribution to or for the holders of such Senior
Indebtedness.

 

Nothing in this Article 11 shall apply to claims
of, or payments to, the Trustee under or pursuant to Section 6.10 or Section 7.07.
This Section 11.02 shall be subject to the further provisions of Section 11.05.

 

Section 11.03.  Subrogation of Securities. Subject to the payment in full, in cash or other
payment satisfactory to the holders of Senior Indebtedness, of all Senior
Indebtedness, the rights of the Holders of the Securities shall be subrogated
to the extent of the payments or distributions made to the holders of such
Senior Indebtedness pursuant to the provisions of this Article 11 (equally
and ratably with the holders of all indebtedness of the Company which by its
express terms is subordinated to other indebtedness of the Company to
substantially the same extent as the Securities are subordinated and is
entitled to like rights of subrogation) to the rights of the holders of Senior
Indebtedness to receive payments or distributions of cash, property or
securities of the Company applicable to the Senior Indebtedness until the
principal, premium, if any, and interest (including Liquidated Damages, if any)
on, and cash upon conversion of, the Securities shall be paid in full in cash
or other payment satisfactory to the holders of Senior Indebtedness; and, for
the purposes of such subrogation, no payments or distributions to the holders
of the Senior Indebtedness of any cash, property or securities to which the
Holders of the Securities or the Trustee would be entitled except for the
provisions of this Article 11, and no payment over pursuant to the
provisions of this Article 11, to or for the benefit of the holders of
Senior Indebtedness by Holders of the Securities or the Trustee, shall, as
between the Company, its creditors other than holders of Senior Indebtedness,
and the Holders of the Securities, be deemed to be a payment by the Company to
or on account of the Senior Indebtedness; and no payments or distributions of
cash, property or securities to or for the benefit of the Holders of the
Securities pursuant to the subrogation provisions of this Article 11,
which would otherwise have been paid to the holders of Senior Indebtedness
shall be deemed to be a payment by the Company to or for the account of the
Securities. It is understood that the provisions of this Article 11 are
and are intended solely for the purposes of defining the relative rights of the
Holders of the Securities, on the one hand, and the holders of the Senior
Indebtedness, on the other hand.

 

76

 

Nothing contained in this Article 11 or elsewhere
in this Indenture or in the Securities is intended to or shall impair, as among
the Company, its creditors other than the holders of Senior Indebtedness, and
the Holders of the Securities, the obligation of the Company, which is absolute
and unconditional, to pay to the Holders of the Securities the principal of
(and premium, if any) and interest on, and cash upon conversion of, the
Securities as and when the same shall become due and payable in accordance with
their terms, or is intended to or shall affect the relative rights of the
Holders of the Securities and creditors of the Company other than the holders
of the Senior Indebtedness, nor shall anything herein or therein prevent the
Trustee or the Holder of any Security from exercising all remedies otherwise
permitted by applicable law upon default under this Indenture, subject to the
rights, if any, under this Article 11 of the holders of Senior
Indebtedness in respect of cash, property or securities of the Company received
upon the exercise of any such remedy.

 

Upon any payment or distribution of assets of the
Company referred to in this Article 11, the Trustee, subject to the
provisions of Section 7.01, and the Holders of the Securities shall be
entitled to rely upon any order or decree made by any court of competent
jurisdiction in which such bankruptcy, dissolution, winding-up, liquidation or
reorganization proceedings are pending, or a certificate of the receiver,
trustee in bankruptcy, liquidating trustee, agent or other person making such
payment or distribution, delivered to the Trustee or to the Holders of the
Securities, for the purpose of ascertaining the persons entitled to participate
in such distribution, the holders of the Senior Indebtedness and other
indebtedness of the Company, the amount thereof or payable thereon and all
other facts pertinent thereto or to this Article 11.

 

Section 11.04.  Authorization to Effect Subordination. 
Each Holder of a Security by the Holder’s acceptance thereof authorizes
and directs the Trustee on the Holder’s behalf to take such action as may be
necessary or appropriate to effectuate the subordination as provided in this Article 11
and appoints the Trustee to act as the Holder’s attorney-in-fact for any and
all such purposes. If the Trustee does not file a proper proof of claim or
proof of debt in the form required in any proceeding referred to in Section 11.03
hereof at least 30 days before the expiration of the time to file such
claim, the holders of any Senior Indebtedness or their representatives are
hereby authorized to file an appropriate claim for and on behalf of the Holders
of the Securities.

 

Section 11.05.  Notice to Trustee.  The Company
shall give prompt written notice in the form of an Officers’ Certificate to a
Responsible Officer of the Trustee and to any Paying Agent of any fact known to
the Company which would prohibit the making of any payment of monies to or by
the Trustee or any Paying Agent in respect of the Securities pursuant to the
provisions of this Article 11. Notwithstanding the provisions of this Article 11
or any other provision of this Indenture, the Trustee shall not be charged with
knowledge of the existence of any facts which would prohibit the making of any
payment of monies to or by the Trustee in respect of the Securities pursuant to
the provisions of this Article 11,

 

77

unless and
until a Responsible Officer of the Trustee shall have received written notice
thereof at the Corporate Trust Office from the Company (in the form of an
Officers’ Certificate) or a Representative or a holder or holders of Senior
Indebtedness or from any trustee thereof; and before the receipt of any such
written notice, the Trustee, subject to the provisions of Section 7.01,
shall be entitled in all respects to assume that no such facts exist; provided
that if on a date not less than one Business Day prior to the date upon which
by the terms hereof any such monies may become payable for any purpose
(including, without limitation, the payment of the principal of, or premium, if
any, or interest on, and cash upon conversion of, any Security) the Trustee
shall not have received, with respect to such monies, the notice provided for
in this Section 11.05, then, anything herein contained to the contrary
notwithstanding, the Trustee shall have full power and authority to receive
such monies and to apply the same to the purpose for which they were received,
and shall not be affected by any notice to the contrary which may be received
by it on or after such prior date. 
Notwithstanding anything in this Article 11 to the contrary,
nothing shall prevent any payment by the Trustee to the Holders of monies
deposited with it pursuant to Article 8, and any such payment shall not be
subject to the provisions of Article 11.

 

The Trustee, subject to the provisions of Section 7.01,
shall be entitled to rely on the delivery to it of a written notice by a
Representative or a person representing himself to be a holder of Senior
Indebtedness (or a trustee on behalf of such holder) to establish that such
notice has been given by a Representative or a holder of Senior Indebtedness or
a trustee on behalf of any such holder or holders. In the event that the
Trustee determines in good faith that further evidence is required with respect
to the right of any person as a holder of Senior Indebtedness to participate in
any payment or distribution pursuant to this Article 11, the Trustee may
request such Person to furnish evidence to the reasonable satisfaction of the
Trustee as to the amount of Senior Indebtedness held by such Person, the extent
to which such Person is entitled to participate in such payment or distribution
and any other facts pertinent to the rights of such Person under this Article 11,
and if such evidence is not furnished the Trustee may defer any payment to such
Person pending judicial determination as to the right of such Person to receive
such payment.

 

Section 11.06.  Trustee’s Relation to Senior Indebtedness. 
The Trustee in its individual capacity shall be entitled to all the
rights set forth in this Article 11 in respect of any Senior Indebtedness
at any time held by it, to the same extent as any other holder of Senior
Indebtedness, and nothing in Section 9.03 or elsewhere in this Indenture
shall deprive the Trustee of any of its rights as such holder.

 

With respect to the holders of Senior Indebtedness,
the Trustee undertakes to perform or to observe only such of its covenants and
obligations as are specifically set forth in this Article 11, and no
implied covenants or obligations with respect to the holders of Senior
Indebtedness shall be read into this Indenture against the Trustee. The Trustee
shall not be deemed to owe any fiduciary duty to 

 

78

 

the holders of Senior
Indebtedness and, subject to the provisions of Section 7.01, the Trustee
shall not be liable to any holder of Senior Indebtedness if it shall pay over
or deliver to Holders of Securities, the Company or any other person money or
assets to which any holder of Senior Indebtedness shall be entitled by virtue
of this Article 11 or otherwise.

 

Section 11.07.  No Impairment of Subordination.  No right
of any present or future holder of any Senior Indebtedness to enforce
subordination as herein provided shall at any time in any way be prejudiced or
impaired by any act or failure to act on the part of the Company or by any act
or failure to act, in good faith, by any such holder, or by any noncompliance
by the Company with the terms, provisions and covenants of this Indenture,
regardless of any knowledge thereof which any such holder may have or otherwise
be charged with.

 

Section 11.08  Certain Conversions Deemed Payment.  For
the purposes of this Article 11 only, (1) the issuance and delivery
of junior securities upon conversion of Securities in accordance with Article 10
shall not be deemed to constitute a payment or distribution on account of the
principal of (or premium, if any) or interest on Securities or on account of
the purchase or other acquisition of Securities, and (2) the payment,
issuance or delivery of cash (except in satisfaction of fractional shares
pursuant to Section 10.04), property or securities (other than junior
securities) upon conversion of a Security shall be deemed to constitute payment
on account of the principal of such Security. For the purposes of this Section 11.08,
the term “junior securities” means (a) shares of any stock of any class of
the Company, or (b) securities of the Company which are subordinated in
right of payment to all Senior Indebtedness which may be outstanding at the
time of issuance or delivery of such securities to substantially the same
extent as, or to a greater extent than, the Securities are so subordinated as
provided in this Article. Nothing contained in this Article 11 or
elsewhere in this Indenture or in the Securities is intended to or shall
impair, as among the Company, its creditors other than holders of Senior
Indebtedness and the Holders, the right, which is absolute and unconditional,
of the Holder of any Security to convert such Security in accordance with Article 10.

 

Section 11.09.  Article Applicable to Paying Agents. 
If at any time any Paying Agent other than the Trustee shall have been
appointed by the Company and be then acting hereunder, the term “Trustee” as
used in this Article 11 shall (unless the context otherwise requires) be
construed as extending to and including such Paying Agent within its meaning as
fully for all intents and purposes as if such Paying Agent were named in this Article 11
in addition to or in place of the Trustee; provided, however, that the first
paragraph of Section 11.05 shall not apply to the Company or any Affiliate
of the Company if it or such Affiliate acts as Paying Agent.

 

Section 11.10.  Senior Indebtedness Entitled to Rely. 
The holders of Senior Indebtedness (including, without limitation,
Designated Senior Indebtedness) shall have the right to rely upon this Article 11,
and no amendment

 

79

 

or
modification of the provisions contained herein shall diminish the rights of
such holders unless such holders shall have agreed in writing thereto.

 

ARTICLE 12

MISCELLANEOUS

 

Section 12.01.  Trust Indenture Act Controls.  If
any provision of this Indenture limits, qualifies, or conflicts with another
provision which is required to be included in this Indenture by the TIA, the
required provision shall control.

 

Section 12.02.  Notices.  Any request,
demand, authorization, notice, waiver, consent or communication shall be in
writing, in the English language and delivered in person or mailed by
first-class mail, postage prepaid, addressed as follows, or transmitted by
facsimile transmission (confirmed orally) to the following facsimile numbers:

 

if to the Company, to:

 

Symmetricom, Inc.

2300 Orchard Parkway
San Jose, California 95131

 

if to the Trustee, to:

 

Wells Fargo Bank,
National Association

707 Wilshire Boulevard, 17th Floor

MAC-E2818-176

Los Angeles, California 90017

 

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

 

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

 

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

 

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

 

80

 

Section 12.03.  Communication by Holders with Other Holders. 
Holders may communicate pursuant to TIA Section 312(b) with
other Holders with respect to their rights under this Indenture or the
Securities.  The Company, the Trustee,
the Registrar, the Paying Agent, the Conversion Agent and anyone else shall
have the protection of TIA Section 312(c).

 

Section 12.04.  Certificate and Opinion as to Conditions Precedent. 
Upon any request or application by the Company to the Trustee
to take or refrain from taking any action under this Indenture, the Company
shall furnish to the Trustee:

 

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

 

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

 

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

 

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

 

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

 

Section 12.05.  Statements Required in Certificate or Opinion. 
Each Officers’ Certificate or Opinion of Counsel with respect
to compliance with a covenant or condition provided for in this Indenture shall
include:

 

(a)           a statement that each person making
such Officers’ Certificate or Opinion of Counsel has read such covenant or
condition;

 

81

 

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

 

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

 

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

 

Section 12.06.  Separability Clause.  In case any
provision in this Indenture or in the Securities shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

 

Section 12.07.  Rules by Trustee, Paying Agent, Conversion Agent and Registrar.  The Trustee may make reasonable rules for
action by or a meeting of Holders.  The
Registrar, the Conversion Agent and the Paying Agent may make reasonable rules for
their functions.

 

Section 12.08.  Legal Holidays.  A “Legal Holiday” is any day other than a Business Day.  If any specified date (including a date for
giving notice) is a Legal Holiday, the action shall be taken on the next
succeeding day that is not a Legal Holiday, and, if the action to be taken on
such date is a payment in respect of the Securities, no interest (including
Liquidated Damages, if any), shall accrue for the intervening period.

 

Section 12.09.  Governing Law.  THIS INDENTURE
AND EACH SECURITY SHALL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF THE
STATE OF NEW YORK.

 

Section 12.10.  No Recourse Against Others.  A
director, officer, employee or stockholder, as such, of the Company shall not
have any liability for any Obligations of the Company under the Securities or
for any claim based on, in respect of or by reason of such Obligations or their
creation.  By accepting a Security, each Holder
shall waive and release all such liability. 
The waiver and release shall be part of the consideration for the issue
of the Securities.

 

Section 12.11.  Successors.  All agreements
of the Company in this Indenture and the Securities shall bind its
successor.  All agreements of the Trustee
in this Indenture shall bind its successor.

 

Section 12.12.  Multiple Originals.  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.

 

82

 

Section 12.13.  Table of Contents and Headings. The Table of Contents and the headings
of the Articles or Sections of this Indenture have been inserted for
convenience of reference only, are not to be considered as part of this
Indenture and shall in no way modify or restrict any of the terms or provisions
hereof.

 

[Remainder of page intentionally left blank].

 

83

 

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

 

	
   

  	
  SYMMETRICOM, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ William Slater

  	
   

  
	
   

  	
   

  	
  Name:

  	
  William Slater

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK, NATIONAL

  ASSOCIATION, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Jeanie Mar

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Jeanie Mar

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

84

 

EXHIBIT A

 

[FORM OF FACE OF GLOBAL SECURITY]

 

[Transfer Restricted Securities Legend – Include only on Transfer
Restricted Securities]

 

[THIS SECURITY
HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE ‘‘SECURITIES
ACT’’), OR ANY STATE OR OTHER SECURITIES LAWS. 
NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE
REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS
EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT. BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE HOLDER (1) REPRESENTS
THAT IT IS A ‘‘QUALIFIED INSTITUTIONAL BUYER’’ (AS DEFINED IN RULE 144A UNDER
THE SECURITIES ACT (‘‘RULE 144A’’)) AND IS PURCHASING IN COMPLIANCE WITH RULE
144A UNDER THE SECURITIES ACT, (2) AGREES NOT TO OFFER, SELL OR OTHERWISE
TRANSFER SUCH SECURITY PRIOR TO THE DATE WHICH IS THE LATER OF (X) TWO YEARS
(OR SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144(k) OF THE SECURITIES
ACT) AFTER THE LATER OF THE LAST DATE OF ORIGINAL ISSUANCE OF THIS SECURITY (OR
ANY PREDECESSOR OF THIS SECURITY) AND THE LAST DATE ON WHICH SYMMETRICOM, INC. OR
ANY AFFILIATE OF SYMMETRICOM, INC. WAS THE OWNER OF THIS SECURITY (OR ANY
PREDECESSOR OF THIS SECURITY) AND (Y) SUCH LATER DATE, IF ANY, AS MAY BE
REQUIRED BY APPLICABLE LAW (THE ‘‘RESALE RESTRICTION TERMINATION DATE’’) EXCEPT
(A) TO SYMMETRICOM, INC. OR ANY SUBSIDIARY THEREOF, (B) PURSUANT TO A
REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES
ACT AND WHICH CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER, (C) PURSUANT
TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144
UNDER THE SECURITIES ACT (IF AVAILABLE) OR (D) 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 THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A AND (3) AGREES THAT IT WILL GIVE TO EACH PERSON TO
WHOM THIS SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS
LEGEND; AND, IN EACH OF THE FOREGOING CASES, TO REQUIRE THAT A

 

A-1

 

CERTIFICATE OF
TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF THIS SECURITY IS
COMPLETED AND DELIVERED BY THE TRANSFEROR TO SYMMETRICOM, INC. AND THE TRUSTEE
(WITH RESPECT TO TRANSFERS OF SECURITIES) OR THE TRANSFER AGENT (WITH RESPECT
TO TRANSFERS OF COMMON STOCK). THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF
THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.]

 

[Global Securities Legend – Include only on Global Securities]

 

[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO THE COMPANY OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND
ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.  TRANSFERS OF THIS
GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS TO NOMINEES OF THE DEPOSITORY
TRUST COMPANY OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND
TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS
MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO
ON THE REVERSE HEREOF.]

 

A-2

 

SYMMETRICOM, INC.

 

31⁄4% Contingent
Convertible Subordinated Notes Due 2025

 

	
  No.:

  	
   

  	
  CUSIP:

  	
  [                ]*

  
	
  Issue Date:

  	
   

  	
  Principal Amount:

  	
   

  
						

 

Symmetricom, Inc., a Delaware corporation, promises to
pay to [Cede & Co.]** or registered assigns, the principal amount of              
Dollars ($            )[,
or such greater or lesser principal amount as set forth on Schedule I
hereto]**, on June 15, 2025, subject to the further provisions of this
Security set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.  This Security is convertible as specified on
the other side of this Security.

 

Interest Payment Dates:  June 15 and December 15, commencing December 15, 2005.

 

Record Dates: June 1 and December 1.

 

 

	
   

  	
  SYMMETRICOM, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

*For Rule 144A Global Security only

**Include only on Global Security

 

A-3

 

Trustee’s
Certificate of Authentication:  This is
one of the Securities referred to in the within-mentioned Indenture.

 

	
  WELLS FARGO BANK, NATIONAL

  ASSOCIATION, as trustee

  	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  
				

 

A-4

 

[FORM OF REVERSE SIDE OF NOTE]

 

SYMMETRICOM, INC.

 

31⁄4% Contingent Convertible Subordinated Notes
Due 2025

 

(1)           Interest.

 

This Security will bear interest from June 8, 2005 or from the most
recent date to which interest has been paid or duly provided for, semi-annually
in arrears on June 15 and December 15 of each year (each, an “Interest Payment Date”), subject to Section 12.08 of
the Indenture, commencing December 15,
2005.  The Company will pay interest on
any overdue principal amount at the interest rate borne by the Securities at
the time such interest on the overdue principal amount accrues, compounded semi-annually,
and it shall pay interest on overdue installments of interest and Liquidated
Damages, if any (without regard to any applicable grace period), at the same
interest rate, compounded semi-annually. 
Interest (including Liquidated Damages, if any) on the Securities will
be computed on the basis of a 360-day year comprised of twelve 30-day
months.

 

(2)           Method
of Payment.

 

The Company will pay interest (including Liquidated
Damages, if any) on this Security to the Person who is the registered Holder of
this Security at the close of business on June 1 or December 1 (each, a “Record
Date”), as the case may be, immediately preceding the related
Interest Payment Date.  Subject to the
terms and conditions of the Indenture, the Company will make all payments and
deliveries in respect of the Redemption Price, Repurchase Price, Change in
Control Repurchase Price and the principal amount at Stated Maturity, as the
case may be, to the Holder who surrenders a Security to a Paying Agent to
collect such payments in respect of the Security.  The Company will pay cash amounts in money of
the United States that at the time of payment is legal tender for payment of
public and private debts.  However, the
Company may pay interest (including Liquidated Damages, if any), the Redemption
Price, Repurchase Price, Change in Control Repurchase Price and the principal
amount at Stated Maturity, as the case may be, to a Holder holding Securities in
definitive form by check or wire payable in such money; provided that
a Holder holding Securities in definitive form with an aggregate principal
amount in excess of $1,000,000 may request payment by wire transfer in
immediately available funds to an account in North America at the election of
such Holder.  The Company may mail an
interest check to the Holder’s registered address.  Notwithstanding the foregoing, so long as
this Security is registered in the name of a Depositary or its nominee, all
payments hereon shall be made by wire transfer of immediately available funds
to the account of the Depositary or its nominee.

 

A-5

 

(3)           Paying
Agent, Conversion Agent and Registrar.

 

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

 

(4)           Indenture.

 

The Company issued the Securities under an Indenture
dated as of June 8, 2005 (the “Indenture”),
between the Company and the Trustee.  The
terms of the Securities include those stated in the Indenture and those made
part of the Indenture by reference to the Trust Indenture Act of 1939, as in
effect from time to time (the “TIA”).  Capitalized terms used herein and not defined
herein have the meanings ascribed thereto in the Indenture.  The Securities are subject to all such terms,
and Holders are referred to the Indenture and the TIA for a statement of those
terms.

 

The Securities are general unsecured obligations of
the Company and may be issued in unlimited principal amount under the Indenture.  The Indenture does not limit other
indebtedness of the Company, secured or unsecured.

 

(5)           Redemption
at the Option of the Company.

 

No sinking fund is provided for the Securities.  Beginning on June 20, 2012 and during
the periods thereafter to maturity, the Securities are redeemable as a whole at
any time, or in part from time to time, in any integral multiple of $1,000, at
the option of the Company for cash at a Redemption Price equal to 100% of the
principal amount, together with accrued but unpaid interest (including
Liquidated Damages, if any) thereon, up to but not including the Redemption
Date; provided that, if the Redemption Date is
between the close of business on a Record Date and the opening of business on the
related Interest Payment Date, interest will be payable to the Holders in whose
names the Securities are registered at the close of business on the relevant Record
Date.

 

Notice of redemption pursuant to paragraph 5 of this
Security will be mailed at least 30 days but not more than 60 days before the
Redemption Date to each Holder of Securities to be redeemed at the Holder’s
registered address.  If money sufficient
to pay the Redemption Price of all Securities (or portions thereof) to be
redeemed on the Redemption Date is deposited with the Paying Agent prior to 11:00 a.m.,
New York City time, on the Redemption Date, immediately after such Redemption
Date, interest (including Liquidated Damages, if any) shall cease to accrue on
such Securities or portions thereof.

 

A-6

 

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

 

(6)           Repurchase
By the Company at the Option of the Holder on Specified Dates; Repurchase at
the Option of the Holder Upon a Change in Control.

 

Subject to the terms and conditions of the Indenture,
the Company shall become obligated to repurchase, at the option of the Holder,
on June 15, 2012, June 15, 2015 and June 15, 2020 (each, a “Repurchase Date”), all or a portion of the Securities held
by such Holder, in any integral multiple of $1,000, for cash at a price per
Security equal to 100% of the aggregate principal amount of the Security (the “Repurchase Price”), together with accrued but unpaid
interest (including Liquidated Damages, if any) thereon, up to but not
including the Repurchase Date upon delivery of a Repurchase Notice containing
the information set forth in the Indenture, together with the Securities
subject thereto, at any time from the opening of business on the date that is
30 Business Days prior to such Repurchase Date until the close of business on
the Repurchase Date, and upon delivery of the Securities to the Paying Agent by
the Holder as set forth in the Indenture.

 

At the option of the Holder and subject to the terms
and conditions of the Indenture, the Company shall become obligated to repurchase
the Securities held by such Holder after the occurrence of a Change in Control
of the Company for a Change in Control Repurchase Price equal to 100% of the
principal amount thereof plus accrued but unpaid interest (including Liquidated
Damages, if any) thereon, up to but not including the Change in Control Repurchase
Date, which Change in Control Repurchase Price shall be paid in cash (provided that if the Change in Control Repurchase Date is between
the close of business on a Record Date and the opening of business on the
related Interest Payment Date, accrued but unpaid interest will be payable to
the Holders in whose names the Securities are registered at the close of business
on the relevant Record Date).  Holders
have the right to withdraw any Repurchase Notice or Change in Control Repurchase
Notice, as the case may be, by delivering to the Paying Agent a written notice
of withdrawal in accordance with the provisions of the Indenture.

 

If cash sufficient to pay the Repurchase Price or
Change in Control Repurchase Price, as the case may be, and accrued but unpaid
interest (including Liquidated Damages, if any) on all Securities or portions
thereof to be repurchased as of the Repurchase Date or the Change in Control Repurchase
Date, as the case may be, is held by the Paying Agent by 11:00 a.m., New
York City time, on the Business Day immediately following the Repurchase Date
or the Change in Control Repurchase Date, interest (including Liquidated
Damages, if any) shall cease to accrue on such Securities (or portions thereof)
as of such Repurchase Date or Change in Control Repurchase Date, and the Holder
thereof shall have no other rights as such, other than the right to receive the
Repurchase 

 

A-7

 

Price or Change in Control
Repurchase Price, as the case may be, and interest (including Liquidated
Damages, if any) upon surrender of such Security.

 

(7)           Conversion.

 

Upon satisfaction of the conditions set forth in Section 10.01(a) of
the Indenture, a Holder of a Security may convert any portion of the principal
amount of any Security that is an integral multiple of $1,000 into cash and
fully paid and non-assessable shares (calculated as to each conversion to the
nearest 1/10,000th of a share) of Common Stock in accordance with the
provisions of Section 10.14 of the Indenture; provided that
if such Security is called for redemption or subject to repurchase, the
conversion right will terminate at the close of business on the Business Day
immediately preceding the Redemption Date, Repurchase Date or Change in Control
Repurchase Date, as applicable of such Security (unless the Company shall
default in making the redemption or repurchase payment when due, in which case
the conversion right shall terminate at the close of business on the date such default
is cured and such Security is redeemed or repurchased).  Subject to the satisfaction of the conditions
set forth in Section 10.01(a) of the Indenture, such conversion right
shall commence on the initial issuance date of the Securities and expire at the
close of business on the date of maturity, subject, in the case of conversion
of any Global Security, to any Applicable Procedures.  The Conversion Price shall, as of the date of
the Indenture, initially be $12.49 per share of Common Stock.  The Conversion Rate shall, as of the date of
the Indenture, initially be approximately 80.0641.  The Conversion Price and Conversion Rate will
be adjusted under the circumstances specified in the Indenture.  Upon conversion, no adjustment for interest
(including Liquidated Damages, if any) or dividends will be made.  No fractional shares will be issued upon
conversion; in lieu thereof, an amount will be paid in cash based upon the Ten
Day Closing Stock Price.  Except as
provided in Section 10.02(c) of the Indenture, delivery of the
Principal Return, Net Shares and cash in lieu of fractional shares shall be
deemed to satisfy the Company’s obligation to pay the principal amount of a converted
Security and accrued but unpaid interest (including Liquidated Damages, if any)
thereon.  Any accrued interest (including
Liquidated Damages, if any) payable on a converted Security will be deemed paid
in full, rather than canceled, extinguished or forfeited.

 

In addition, following certain corporate transactions
as set forth in Sections 10.01(a)(iii)(A) and 10.01(a)(iii)(B) that
occur on or prior to June 15, 2012 and that constitute a Change in Control
(other than relating to the composition of the Board of Directors as described
in clause (d) of the definition of Change in Control in Section 1.01)
and for which 10% or more of the fair market value of the consideration for the
Common Stock (as determined by the Board of Directors) in the corporate
transaction consists of (i) cash (not including cash payments for fractional
shares and cash payments pursuant to dissenters’ appraisal rights), (ii) other
property or (iii) securities that are not traded or scheduled to be traded
immediately following such transaction on a U.S. national securities exchange
or the Nasdaq National Market, a Holder who elects to

 

A-8

 

convert its Securities in
connection with such corporate transaction will be entitled to receive
Additional Shares of Common Stock upon conversion in certain circumstances set
forth in the Indenture, subject to the provisions of Section 10.01(c) of
the Indenture.

 

To convert a Security, a Holder must (a) complete
and manually sign the conversion notice set forth below and deliver such notice
to the Conversion Agent, (b) surrender the Security to the Conversion
Agent, (c) furnish appropriate endorsements and transfer documents if
required by the Registrar or the Conversion Agent, (d) pay any transfer or
other tax, if required and (e) if the Security is held in book-entry form,
complete and deliver to the Depositary appropriate instructions pursuant to the
Applicable Procedures.  If a Holder
surrenders a Security for conversion between the close of business on the Record
Date and the opening of business on the related Interest Payment Date, the
Security must be accompanied by payment of an amount equal to the interest
(including Liquidated Damages, if any) payable on such Interest Payment Date on
the principal amount of the Security or portion thereof then converted; provided that no such payment shall be required if such
Security has been called for redemption on a Redemption Date within the period
between close of business on such Record Date and the opening of business on such
Interest Payment Date, or if such Security is surrendered for conversion on the
Interest Payment Date.  A Holder may
convert a portion of a Security equal to $1,000 or any integral multiple
thereof.

 

A Security in respect of which a Holder has delivered
a Repurchase Notice or a Change of Control Repurchase Notice exercising the
option of such Holder to require the Company to repurchase such Security as
provided in Section 3.08 or Section 3.09, respectively, of the
Indenture may be converted only if such notice of exercise is withdrawn in
accordance with the terms of the Indenture.

 

(8)           Subordination.

 

The indebtedness evidenced by the Securities is, to
the extent and in the manner provided in the Indenture, subordinate and junior
in right of payment to the prior payment in full of all Senior Indebtedness of
the Company.  Any Holder by accepting
this Security agrees to and shall be bound by such subordination provisions and
authorizes the Trustee to give them effect. 
In addition to all other rights of Senior Indebtedness described in the
Indenture, the Senior Indebtedness shall continue to be Senior Indebtedness and
entitled to the benefits of the subordination provisions irrespective of any
amendment, modification or waiver of any terms of any instrument relating to
the Senior Indebtedness or any extension or renewal of the Senior Indebtedness.

 

(9)           Denominations;
Transfer; Exchange.

 

The Securities are in fully registered form, without
coupons, in denominations of $1,000 of principal amount and integral multiples
of $1,000.  A

 

A-9

 

Holder may transfer or
exchange Securities in accordance with the Indenture.  The Registrar may require a Holder, among
other things, to furnish appropriate endorsements and transfer documents and to
pay any taxes and fees required by law or permitted by the Indenture.  The Registrar need not transfer or exchange
any Securities selected for redemption (except, in the case of a Security to be
redeemed in part, the portion of the Security not to be redeemed), or any
Securities in respect of which a Repurchase Notice or a Change in Control Repurchase
Notice has been given and not withdrawn (except, in the case of a Security to
be repurchased in part, the portion of the Security not to be repurchased), or
any Securities for a period of 15 days before the mailing of a notice of
redemption of Securities to be redeemed.

 

(10)         Persons
Deemed Owners.

 

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

 

(11)         Amendment;
Waiver.

 

Subject to certain exceptions set forth in the
Indenture, (i) the Indenture or the Securities may be amended with the
written consent of the Holders of at least a majority in aggregate principal
amount of the Securities at the time outstanding and (ii) certain defaults
may be waived with the written consent of the Holders of a majority in
aggregate principal amount of the Securities at the time outstanding.  Subject to certain exceptions set forth in
the Indenture, without the consent of any Holder, the Company and the Trustee
may amend the Indenture or the Securities (i) to cure any ambiguity,
omission, defect or inconsistency, or make any other change that does not
adversely affect the rights of any Holder in any material respect, (ii) to
comply with Article 5 or Section 10.11 of the Indenture, (iii) to
make provisions with respect to the conversion right of Holders pursuant to the
requirements of the Indenture, (iv) to evidence and provide for the
acceptance of appointment under the Indenture by a successor Trustee, or (v) to
comply with the provisions of the TIA or any requirement of the SEC in
connection with the qualification of the Indenture under the TIA.

 

(12)         Defaults
and Remedies.

 

Except as set forth in the Indenture, if an Event of
Default occurs and is continuing, the Trustee or the Holders of not less than
25% in principal amount of Securities then outstanding may declare all the
Securities to be due and payable in the manner, at the time and with the effect
provided in the Indenture.  Holders of
Securities may not enforce the Indenture or the Securities except as provided
in the Indenture.  The Trustee is not
obligated to enforce the Indenture or the Securities unless it has received
security or indemnity reasonably satisfactory to it.  The Indenture permits, subject to certain
limitations therein provided, Holders of a majority in aggregate principal
amount of the Securities at the time outstanding to direct the Trustee in its
exercise of any trust or power.  The
Trustee

 

A-10

 

may withhold from Holders
of Securities notice of any continuing Default or Event of Default (except a
default in payment of principal or interest when due, for any reason) if it
determines in good faith that withholding notice is in the interests of
Holders.

 

(13)         Trustee
Dealings with the Company.

 

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

 

(14)         No
Recourse Against Others.

 

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

 

(15)         Authentication.

 

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

 

(16)         Abbreviations
and Defined Terms.

 

Capitalized terms used and not defined herein shall
have the meanings assigned to them in the Indenture.  Customary abbreviations may be used in the
name of a Holder or an assignee, such as TEN COM (“Tenants In
Common”), TEN ENT (“Tenants By The Entireties”), JT TEN (“Joint Tenants With Right Of Survivorship And Not As Tenants In Common”),
CUST (“Custodian”) and U/G/M/A (“Uniform Gift To Minors Act”).

 

(17)         Governing
Law.

 

THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN THE
INDENTURE AND THIS SECURITY.

 

(18)         CUSIP
Numbers.

 

Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Company has caused
CUSIP numbers to be printed on the Securities as a convenience to the Holders
of the Securities.  No representation is
made as to the accuracy of such numbers as printed on the

 

A-11

 

Securities and reliance
may be placed only on the other identification numbers printed hereon.

 

A-12

 

ASSIGNMENT FORM

 

	
  To assign
  this Security, fill in the form below:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  I or we
  assign and transfer this Security to

  	
   

  	
   

  
	
   

  
	
   

  
	
   

  
	
   

  	
   

  	
   

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

  	
   

  	
   

  
	
   

  
	
   

  
	
   

  	
   

  	
   

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

  	
   

  	
   

  
	
   

  
	
   

  
	
  and
  irrevocably appoint

  	
   

  
	
  agent to
  transfer this Security on the books of the Company. The agent may substitute
  another to act for him.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  	
   

  
					

 

CONVERSION NOTICE

 

	
  To convert
  this Security into Cash and Common Stock of the Company, check the box o

  
	
   

  	
   

  
	
  To convert
  only part of this Security, state the principal amount to be converted (which
  must be $1,000 or an 

  
	
  integral
  multiple of  $1,000):

  	
   

  
	
   

  	
   

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

  	
   

  
	
   

  
	
   

  
	
   

  
	
   

  	
   

  
	
  (Insert the
  other person’s soc. sec. or tax ID no.)

  	
   

  
	
   

  
	
   

  
	
   

  
	
   

  	
   

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

  	
   

  
	
   

  	
   

  
	
  Your
  Signature:

  	
   

  
	
   

  	
   

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

  	
   

  
					

 

 

	
  Signature Guaranteed

  
	
   

  	
   

  
	
  Participant in a Recognized Signature Guarantee Medallion Program

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  

 

A-13

 

FORM OF REPURCHASE NOTICE

 

To:          Symmetricom, Inc.

 

The undersigned registered holder of this Security
requests and instructs the Company to repurchase this Security, or the portion
hereof (which is $1,000 principal amount or a multiple thereof) designated
below, on the date specified below, in accordance with the terms and conditions
specified in paragraph 6 of this Security and the Indenture referred to in this
Security and directs that the check in payment for this Security or the portion
thereof and any Securities representing the portion of principal amount hereof
not to be so repurchased, be issued and delivered to the registered holder
hereof unless a different name has been indicated below.  If any portion of this Security not repurchased
is to be issued in the name of a Person other than the undersigned, the
undersigned shall pay all transfer taxes payable with respect thereto.

 

	
  Dated: 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
    Signature(s)

  

 

 

Fill in for registration of Securities not repurchased if to be issued
other than to and in the name of registered holder:

 

 

	
   

  	
   

  
	
  (Name)

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Street Address)

  
	
   

  	
   

  
	
   

  	
   

  
	
  (City, state and zip code)

  

 

 

Please print
name and address

 

principal
amount to be repurchased (if less than all): 
$  ,000

 

date of requested repurchase:  June 15, 20   

(specify either June 15, 2012, 2015 or 2020)

 

A-14

 

FORM OF OPTION TO ELECT REPURCHASE 

UPON A CHANGE IN CONTROL

 

To:  Symmetricom, Inc.

 

The undersigned registered holder of this Security
hereby acknowledges receipt of a notice from Symmetricom, Inc. (the “Company”)
as to the occurrence of a Change in Control with respect to the Company and
requests and instructs the Company to repurchase this Security, or the portion
hereof (which is $1,000 principal amount or a multiple thereof) designated
below, in accordance with the terms of the Indenture referred to in this
Security and directs that the check in payment for this Security or the portion
thereof and any Securities representing any unrepurchased principal amount
hereof, be issued and delivered to the registered holder hereof unless a
different name has been indicated below. If any portion of this Security not
repurchased is to be issued in the name of a Person other than the undersigned,
the undersigned shall pay all transfer taxes payable with respect thereto.

 

 

	
  Dated: 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
    Signature(s)

  

 

 

Fill in for registration of Securities not repurchased if to be issued
other than to and in the name of registered holder:

 

 

	
   

  	
   

  
	
  (Name)

  
	
   

  
	
   

  	
   

  
	
  (Street Address)

  
	
   

  
	
   

  	
   

  
	
  (City, state and zip code)

  

 

 

Please print name and address

 

principal amount to be repurchased (if less than all):  $  ,000

 

A-15

 

SCHEDULE I*

 

SYMMETRICOM, INC.

31⁄4% Contingent Convertible Subordinated Notes Due 2025

 

No:

 

 

	
  Date

  	
   

  	
  Principal Amount

  	
   

  	
  Notation

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

* Include only on Global Security

 

A-16

 

EXHIBIT B

 

Transfer Certificate

 

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

 

o            The transfer of the Surrendered Securities complies with Rule 144A
under the U.S.  Securities Act of 1933,
as amended (the “Securities Act”); or

 

o            The transfer of the Surrendered Securities is pursuant to
an exemption from the registration requirement of the Securities Act provided by Rule 144 thereunder; or

 

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

 

o            A transfer of the Surrendered Securities is made to the
Company or any of its subsidiaries.

 

The undersigned confirms
that, to the undersigned’s knowledge, such Securities are not being transferred to an “affiliate” of the Company as defined
in Rule 144 under the Securities Act (an “Affiliate”).

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature(s)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (If the registered owner is a corporation,

  partnership or fiduciary, the title of the

  Person signing on behalf of such

  registered owner must be stated.)

  	
   

  
	
   

  	
   

  
	
  Signature(s)e Guaranteed

  	
   

  
	
   

  	
   

  	
   

  
	
  Participant in a Recognized Signature

  Guarantee Medallion Program

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  	
   

  
								

 

B-1

 

SCHEDULE A

 

The following table sets forth the increase in the Conversion Rate,
expressed as a number of Additional Shares to be received per $1,000 principal
amount of Securities:

 

Change in Control Date

 

	
  Stock

  price

  	
   

  	
  June 8,

  2005

  	
   

  	
  June 15,

  2006

  	
   

  	
  June 15,

  2007

  	
   

  	
  June 15,

  2008

  	
   

  	
  June 15,

  2009

  	
   

  	
  June 15,

  2010

  	
   

  	
  June 15,

  2011

  	
   

  	
  June 15,

  2012

  	
   

  
	
  $

  	
  9.91

  	
   

  	
  20.8

  	
   

  	
  20.3

  	
   

  	
  19.8

  	
   

  	
  19.2

  	
   

  	
  18.8

  	
   

  	
  18.6

  	
   

  	
  18.6

  	
   

  	
  13.6

  	
   

  
	
  $

  	
  10.00

  	
   

  	
  20.5

  	
   

  	
  20.0

  	
   

  	
  19.4

  	
   

  	
  18.8

  	
   

  	
  18.4

  	
   

  	
  18.1

  	
   

  	
  18.0

  	
   

  	
  13.1

  	
   

  
	
  $

  	
  11.00

  	
   

  	
  17.5

  	
   

  	
  16.8

  	
   

  	
  16.0

  	
   

  	
  15.1

  	
   

  	
  14.2

  	
   

  	
  13.2

  	
   

  	
  11.9

  	
   

  	
  7.6

  	
   

  
	
  $

  	
  12.00

  	
   

  	
  15.2

  	
   

  	
  14.4

  	
   

  	
  13.5

  	
   

  	
  12.4

  	
   

  	
  11.3

  	
   

  	
  9.9

  	
   

  	
  7.9

  	
   

  	
  3.6

  	
   

  
	
  $

  	
  13.00

  	
   

  	
  13.4

  	
   

  	
  12.5

  	
   

  	
  11.6

  	
   

  	
  10.5

  	
   

  	
  9.2

  	
   

  	
  7.6

  	
   

  	
  5.4

  	
   

  	
  1.3

  	
   

  
	
  $

  	
  14.00

  	
   

  	
  11.9

  	
   

  	
  11.1

  	
   

  	
  10.1

  	
   

  	
  9.0

  	
   

  	
  7.6

  	
   

  	
  6.0

  	
   

  	
  3.8

  	
   

  	
  0.2

  	
   

  
	
  $

  	
  15.00

  	
   

  	
  10.8

  	
   

  	
  9.9

  	
   

  	
  9.0

  	
   

  	
  7.9

  	
   

  	
  6.5

  	
   

  	
  4.9

  	
   

  	
  2.8

  	
   

  	
  0.0

  	
   

  
	
  $

  	
  16.00

  	
   

  	
  9.8

  	
   

  	
  9.0

  	
   

  	
  8.1

  	
   

  	
  7.0

  	
   

  	
  5.7

  	
   

  	
  4.2

  	
   

  	
  2.2

  	
   

  	
  0.0

  	
   

  
	
  $

  	
  17.00

  	
   

  	
  9.0

  	
   

  	
  8.2

  	
   

  	
  7.3

  	
   

  	
  6.3

  	
   

  	
  5.1

  	
   

  	
  3.6

  	
   

  	
  1.9

  	
   

  	
  0.0

  	
   

  
	
  $

  	
  18.00

  	
   

  	
  8.3

  	
   

  	
  7.5

  	
   

  	
  6.7

  	
   

  	
  5.7

  	
   

  	
  4.6

  	
   

  	
  3.2

  	
   

  	
  1.6

  	
   

  	
  0.0

  	
   

  
	
  $

  	
  19.00

  	
   

  	
  7.7

  	
   

  	
  7.0

  	
   

  	
  6.2

  	
   

  	
  5.2

  	
   

  	
  4.2

  	
   

  	
  2.9

  	
   

  	
  1.5

  	
   

  	
  0.0

  	
   

  
	
  $

  	
  20.00

  	
   

  	
  7.2

  	
   

  	
  6.5

  	
   

  	
  5.7

  	
   

  	
  4.8

  	
   

  	
  3.8

  	
   

  	
  2.7

  	
   

  	
  1.4

  	
   

  	
  0.0

  	
   

  
	
  $

  	
  21.00

  	
   

  	
  6.7

  	
   

  	
  6.1

  	
   

  	
  5.3

  	
   

  	
  4.5

  	
   

  	
  3.6

  	
   

  	
  2.5

  	
   

  	
  1.3

  	
   

  	
  0.0

  	
   

  
	
  $

  	
  22.00

  	
   

  	
  6.3

  	
   

  	
  5.7

  	
   

  	
  5.0

  	
   

  	
  4.2

  	
   

  	
  3.3

  	
   

  	
  2.3

  	
   

  	
  1.2

  	
   

  	
  0.0

  	
   

  
	
  $

  	
  23.00

  	
   

  	
  5.9

  	
   

  	
  5.4

  	
   

  	
  4.7

  	
   

  	
  4.0

  	
   

  	
  3.1

  	
   

  	
  2.2

  	
   

  	
  1.1

  	
   

  	
  0.0

  	
   

  
	
  $

  	
  24.00

  	
   

  	
  5.6

  	
   

  	
  5.1

  	
   

  	
  4.4

  	
   

  	
  3.7

  	
   

  	
  2.9

  	
   

  	
  2.1

  	
   

  	
  1.1

  	
   

  	
  0.0

  	
   

  
	
  $

  	
  25.00

  	
   

  	
  5.3

  	
   

  	
  4.8

  	
   

  	
  4.2

  	
   

  	
  3.5

  	
   

  	
  2.8

  	
   

  	
  2.0

  	
   

  	
  1.0

  	
   

  	
  0.0

  	
   

  
	
  $

  	
  26.00

  	
   

  	
  5.0

  	
   

  	
  4.5

  	
   

  	
  4.0

  	
   

  	
  3.4

  	
   

  	
  2.6

  	
   

  	
  1.9

  	
   

  	
  1.0

  	
   

  	
  0.0

  	
   

  
	
  $

  	
  27.00

  	
   

  	
  4.8

  	
   

  	
  4.3

  	
   

  	
  3.8

  	
   

  	
  3.2

  	
   

  	
  2.5

  	
   

  	
  1.8

  	
   

  	
  0.9

  	
   

  	
  0.0

  	
   

  
	
  $

  	
  28.00

  	
   

  	
  4.5

  	
   

  	
  4.1

  	
   

  	
  3.6

  	
   

  	
  3.0

  	
   

  	
  2.4

  	
   

  	
  1.7

  	
   

  	
  0.9

  	
   

  	
  0.0

  	
   

  
	
  $

  	
  29.00

  	
   

  	
  4.3

  	
   

  	
  3.9

  	
   

  	
  3.4

  	
   

  	
  2.9

  	
   

  	
  2.3

  	
   

  	
  1.6

  	
   

  	
  0.8

  	
   

  	
  0.0

  	
   

  
	
  $

  	
  30.00

  	
   

  	
  4.1

  	
   

  	
  3.7

  	
   

  	
  3.3

  	
   

  	
  2.8

  	
   

  	
  2.2

  	
   

  	
  1.5

  	
   

  	
  0.8

  	
   

  	
  0.0

  	
   

  
	
  $

  	
  31.00

  	
   

  	
  3.9

  	
   

  	
  3.6

  	
   

  	
  3.1

  	
   

  	
  2.7

  	
   

  	
  2.1

  	
   

  	
  1.5

  	
   

  	
  0.8

  	
   

  	
  0.0

  	
   

  
	
  $

  	
  32.00

  	
   

  	
  3.8

  	
   

  	
  3.4

  	
   

  	
  3.0

  	
   

  	
  2.5

  	
   

  	
  2.0

  	
   

  	
  1.4

  	
   

  	
  0.7

  	
   

  	
  0.0

  	
   

  
	
  $

  	
  33.00

  	
   

  	
  3.6

  	
   

  	
  3.3

  	
   

  	
  2.9

  	
   

  	
  2.4

  	
   

  	
  1.9

  	
   

  	
  1.4

  	
   

  	
  0.7

  	
   

  	
  0.0

  	
   

  
	
  $

  	
  34.00

  	
   

  	
  3.5

  	
   

  	
  3.1

  	
   

  	
  2.8

  	
   

  	
  2.3

  	
   

  	
  1.9

  	
   

  	
  1.3

  	
   

  	
  0.7

  	
   

  	
  0.0Exhibit 4.3

 

REGISTRATION
RIGHTS AGREEMENT

 

Dated
as of June 8, 2005

 

by
and between

 

SYMMETRICOM,
INC.

 

and

 

DEUTSCHE
BANK SECURITIES INC.

 

RBC CAPITAL MARKETS CORPORATION

 

31⁄4% Contingent Convertible Subordinated
Notes Due 2025

 

 

TABLE
OF CONTENTS

 

	
  1.

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Shelf Registration

  	
   

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Liquidated Damages

  	
   

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Registration Procedures

  	
   

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Registration Expenses

  	
   

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Indemnification

  	
   

  
	
   

  	
   

  	
   

  
	
  7.

  	
  Rules 144 and 144A

  	
   

  
	
   

  	
   

  	
   

  
	
  8.

  	
  Underwritten Registrations

  	
   

  
	
   

  	
   

  	
   

  
	
  9.

  	
  Miscellaneous

  	
   

  

 

i

 

REGISTRATION
RIGHTS AGREEMENT

 

This Registration Rights Agreement (this “Agreement”) is dated
as of June 8, 2005, by and between Symmetricom, Inc., a Delaware
corporation (the “Company”), and Deutsche Bank Securities Inc. and RBC
Capital Markets Corporation (the “Initial Purchasers”).

 

This Agreement is entered into in connection with the Purchase
Agreement dated June 2, 2005 (the “Purchase Agreement”) between the
Company and the Initial Purchasers, which provides for the sale by the Company
to the Initial Purchasers of $100,000,000 aggregate principal amount of the
Company’s 31⁄4% Contingent Convertible Subordinated Notes Due 2025 (the “Firm
Notes”), plus up to an additional $20,000,000 aggregate principal amount of
the same which the Initial Purchasers may subsequently elect to purchase
pursuant to the terms of the Purchase Agreement (the “Option Notes” and,
together with the Firm Notes, the “Notes”), which are convertible into
common stock, par value $0.0001 per share, of the Company (the “Underlying
Shares”).  The Notes are being issued
pursuant to an Indenture dated as of the date hereof (the “Indenture”),
by and between the Company and Wells Fargo Bank, National Association, as
Trustee.

 

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 for the benefit of the Initial Purchasers and subsequent
holders of the Notes or Underlying Shares as provided herein.  The execution and delivery of this Agreement
is a condition to the Initial Purchasers’ obligation to purchase the Firm Notes
under the Purchase Agreement.

 

The parties hereto hereby agree as follows:

 

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

 

“Agreement”:  See the
first introductory paragraph hereto.

 

“Amendment Effectiveness Deadline Date”:  See Section 2(d)(i) hereof.

 

“Amount of Registrable Securities”:  (a) With respect to Notes constituting
Registrable Securities, the aggregate principal amount of all such Notes then outstanding,
(b) with respect to Underlying Shares constituting Registrable Securities,
the aggregate number of such Underlying Shares outstanding multiplied by the
Conversion Price (as defined in the Indenture) in effect at the time of
computing the Amount of Registrable Securities or, if no Notes are then
outstanding, the Conversion Price shall be calculated as if the Notes were
continuously outstanding to the date of calculation, giving effect to any
adjustments to the Conversion Price set forth in the Indenture as if the
Indenture continued to be in effect, and (c) with respect to combinations
thereof, the sum of (a) and (b) for the relevant Registrable
Securities.

 

“Business Day”:  Any day
that is not a Saturday, Sunday or a day on which banking institutions in the
City of New York are authorized or required by law or executive order to be
closed.

 

“Closing Date”:  June 8,
2005.

 

 

“Company”:  See the first
introductory paragraph hereto.

 

“Controlling Person”:  See
Section 6 hereof.

 

“Damages Payment Date”: 
See Section 3(c) hereof.

 

“Deferral Period”:  See Section 3(b) hereof.

 

“Depositary”:  The
Depository Trust Company until a successor is appointed by the Company.

 

“Designated Counsel”:  One
firm of counsel chosen by the Holders of a majority in Amount of Registrable
Securities to be included in a Registration Statement for a Shelf Registration
and identified to the Company in writing prior to the filing of such
Registration Statement.

 

“Effectiveness Date”:  The
180th day after the Closing Date.

 

“Effectiveness Period”: 
See Section 2(a) hereof.

 

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

 

“Filing Date”:  The 90th
day after the Closing Date.

 

“Firm Notes”:  See the
second introductory paragraph hereto.

 

“Holder”:  Any beneficial
owner from time to time of Registrable Securities.

 

“Indemnified Holder”:  See
Section 6 hereof.

 

“Indemnified Person”:  See
Section 6 hereof.

 

“Indemnifying Person”: 
See Section 6 hereof.

 

“Indenture”:  See the
second introductory paragraph hereto.

 

“Initial Purchasers”:  See
the first introductory paragraph hereto.

 

“Initial Shelf Registration”: 
See Section 2(a) hereof.

 

“Inspectors”:  See Section 4(k)
hereof.

 

“Liquidated Damages”:  See
Section 3(a) hereof.

 

“Notes”:  See the second
introductory paragraph hereto.

 

“Notice and Questionnaire”:  means a written notice delivered to the
Company containing substantially the information called for by the Form of
Selling Securityholder Notice

 

2

 

and Questionnaire attached as Appendix A to the Offering Memorandum of
the Company relating to the Notes.

 

“Option Notes”:  See the
second introductory paragraph hereto.

 

“Person”:  An individual,
partnership, corporation, limited liability company, unincorporated
association, trust or joint venture, or a governmental agency or political
subdivision thereof.

 

“Prospectus”:  The
prospectus included in any Registration Statement (including, without
limitation, any prospectus subject to completion and a prospectus that includes
any 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 prospectus
supplement, and all other amendments and supplements to the Prospectus,
including post-effective amendments, and all material incorporated by reference
or deemed to be incorporated by reference in such Prospectus.

 

“Purchase Agreement”:  See
the second introductory paragraph hereto.

 

“Records”:  See Section 4(k)
hereof.

 

“Registrable Securities”:  All Notes and all Underlying Shares upon
original issuance thereof and at all times subsequent thereto until the
earliest to occur of (i) a Registration Statement covering such Notes and
Underlying Shares having been declared effective by the SEC and such Notes or
Underlying Shares having been disposed of in accordance with such effective
Registration Statement, (ii) such Notes or Underlying Shares having been
sold in compliance with Rule 144 or being able to (except with respect to
affiliates of the Company within the meaning of the Securities Act) be sold in
compliance with Rule 144(k), or (iii) such Notes or Underlying Shares
ceasing to be outstanding.

 

“Registration Default”: 
See Section 3(a) hereof.

 

“Registration Statement”:  Any registration statement of the Company
filed with the SEC 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 documents
incorporated by reference or deemed to be incorporated by reference in such
registration statement.

 

“Rule 144”:  Rule 144
promulgated under the Securities Act, as such Rule may be amended from
time to time, or any similar rule (other than Rule 144A) or
regulation hereafter adopted by the SEC providing for offers and sales of
securities made in compliance therewith resulting in offers and sales by
subsequent holders that are not affiliates of an issuer of such securities
being free of the registration and prospectus delivery requirements of the
Securities Act.

 

“Rule 144A”:  Rule 144A
promulgated under the Securities Act, as such Rule may be amended from
time to time, or any similar rule (other than Rule 144) or regulation
hereafter adopted by the SEC.

 

3

 

“Rule 415”:  Rule 415
promulgated 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”:  The U.S. Securities
and Exchange Commission.

 

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

 

“Selling Holder”:  On any
date, any Holder that has delivered a Notice and Questionnaire to the Company
on or prior to such date.

 

“Shelf Registration”:  See
Section 2(b) hereof.

 

“Shelf Registration Statement”: 
See Section 2(b) hereof.

 

“Subsequent Shelf Registration”: 
See Section 2(b) hereof.

 

“TIA”:  The Trust
Indenture Act of 1939, as amended, and the rules and regulations of the
SEC promulgated thereunder.

 

“Trustee”:  The Trustee
under the Indenture.

 

“Underlying Shares”:  See
the second introductory paragraph hereto.

 

“Underwritten Registration” or “Underwritten Offering”:  A registration in which Registrable Securities
are sold to an underwriter for reoffering to the public.

 

2.                                       Shelf Registration.

 

(a)                                  Shelf Registration.  The Company shall file with the SEC a
Registration Statement for an offering to be made on a continuous basis
pursuant to Rule 415 covering all of the Registrable Securities (the “Initial
Shelf Registration”) on or prior to the Filing Date.

 

The Initial Shelf Registration shall be on Form S-3 or another
appropriate form permitting registration of the Registrable Securities for
resale by Holders in the manner or manners designated by them (excluding
Underwritten Offerings).  The Company
shall not permit any securities other than the Registrable Securities to be
included in the Initial Shelf Registration or any Subsequent Shelf Registration
(as defined below).

 

The Company shall use its commercially reasonable efforts to cause the
Initial Shelf Registration to be declared effective under the Securities Act on
or prior to the Effectiveness Date and to keep the Initial Shelf Registration
continuously effective under the Securities Act until the date that is two
years after the Closing Date, or if later, the date on which the Option Notes
were issued, (such period, as it may be shortened pursuant to clauses (i), (ii) or
(iii) immediately following, the “Effectiveness Period”), or such
shorter period ending when (i) all of the Registrable Securities covered
by the Initial Shelf Registration have been sold in the manner set forth and as
contemplated in the Initial Shelf Registration, (ii) the date on which all
of the Registrable Securities (x) held by Persons who are not affiliates of the
Company may be

 

4

 

resold pursuant to Rule 144(k) under the Securities Act or (y)
cease to be outstanding, or (iii) all the Registrable Securities have been
resold pursuant to Rule 144 under the Securities Act.

 

(b)                                 Subsequent Shelf Registrations.  If the Initial Shelf Registration ceases to
be effective for any reason at any time during the Effectiveness Period (other
than because of the sale of all of the Registrable Securities registered
thereunder), the Company shall use its commercially reasonable efforts to
obtain the prompt withdrawal of any order suspending the effectiveness thereof,
and in any event shall within 45 days of such cessation of effectiveness amend
the Initial Shelf Registration in a manner to obtain the withdrawal of the
order suspending the effectiveness thereof, or file an additional “shelf” Registration
Statement pursuant to Rule 415 covering all of the Registrable Securities
(a “Subsequent Shelf Registration”). 
If a Subsequent Shelf Registration is filed, the Company shall use its
commercially reasonable efforts to cause the Subsequent Shelf Registration to
be declared effective under the Securities Act as soon as practicable after
such filing and to keep such Registration Statement continuously effective for the
balance of the Effectiveness Period.  As
used herein, the term “Shelf Registration” means the Initial Shelf
Registration or any Subsequent Shelf Registration and the term “Shelf
Registration Statement” means any Registration Statement filed in
connection with a Shelf Registration.

 

(c)                                  Supplements and Amendments.  The Company shall promptly supplement and
amend a Shelf Registration if required by the rules, regulations or
instructions applicable to the registration form used for such Shelf
Registration, if required by the Securities Act, or if reasonably requested by
the Holders of a majority in Amount of Registrable Securities covered by such Shelf
Registration Statement.

 

(d)                                 Notice and Questionnaire.  Each Holder 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 4A hereof.  Each Holder
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 two (2) Business Days prior to the date that the
Initial Shelf Registration Statement is declared effective under the Securities
Act.  From and after the date the Initial
Shelf Registration Statement is declared effective, the Company shall, as
promptly as practicable after the date a Notice and Questionnaire is delivered,
and in any event upon the later of (x) ten (10) days after such date, if a
supplement to the related Prospectus may be filed, (y) forty-five (45) days
after such date, if a post-effective amendment to the Shelf Registration
Statement or an additional Shelf Registration Statement is required to be filed,
provided, that in no event shall the Company be required to file a
post-effective amendment to the Shelf Registration Statement for the purpose of
naming Holders as selling securityholders more frequently than once per fiscal
quarter, or (z) ten (10) Business Days after the expiration of any
Deferral Period in effect when the Notice and Questionnaire is delivered:

 

(i)                                     if required by applicable law,
file with the SEC a post-effective amendment to the Shelf Registration Statement
or prepare and, if permitted 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 so that the Holder delivering
such Notice and Questionnaire is

 

5

 

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 (subject to the rights of the Company under Section 3(b) to
create a Deferral Period) in accordance with applicable law and, if the Company
shall file a post-effective amendment to the Shelf Registration Statement, use its
commercially reasonable efforts to cause such post-effective amendment to be
declared effective under the Securities Act as promptly as 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.  Notwithstanding anything
contained herein to the contrary, (i) the Company shall be under no
obligation to name any Holder that has not delivered a Notice and Questionnaire
to the Company in accordance with this Section 2(d).

 

3.                                       Liquidated Damages.

 

(a)                                  The Company and the Initial
Purchasers agree that the Holders of Registrable Securities will suffer damages
if the Company fails to fulfill its obligations under Section 2 hereof and
that it would not be feasible to ascertain the extent of such damages with
precision.  Accordingly, the Company
agrees to pay liquidated damages on the Registrable Securities (“Liquidated
Damages”) under the circumstances and to the extent set forth below (each
of which shall be given independent effect; each a “Registration Default”):

 

(i)                                     if the Initial Shelf
Registration is not filed on or prior to the Filing Date, then commencing on
the day after the Filing Date, Liquidated Damages shall accrue on the Registrable
Securities at a rate of 0.25% per annum on the Amount of Registrable Securities;

 

(ii)                                  if a Shelf Registration is not
declared effective by the SEC on or prior to the Effectiveness Date, then
commencing on the day after the Effectiveness Date, Liquidated Damages shall
accrue on the Registrable Securities at a rate of 0.50% per annum on the Amount
of Registrable Securities;

 

(iii)                               if a Shelf Registration has been
declared effective and such Shelf Registration ceases to be effective at any
time during the Effectiveness Period (other than as permitted under Section 3(b)),
then commencing on the day after the date such Shelf Registration ceases to be
effective, Liquidated Damages shall

 

6

 

accrue on the Registrable Securities held by
Selling Holders at a rate of 0.50% per annum on the Amount of Registrable
Securities held by Selling Holders;

 

(iv)                              if any post-effective amendment
filed pursuant to Section 2(d)(i) has not become effective under the
Securities Act on or prior to the Amendment Effectiveness Deadline Date, then
commencing on the day after the Amendment Effectiveness Deadline Date,
Liquidated Damages shall accrue on the Registrable Securities held by Selling
Holders at a rate of 0.50% per annum on the Amount of Registrable Securities
held by Selling Holders; and

 

(v)                                 if the aggregate duration of
Deferral Periods in any period exceeds the number of days permitted in respect
of such period pursuant to Section 3(b), then commencing on the day that
caused the limit on the aggregate duration of Deferral Periods to be exceeded,
Liquidated Damages shall accrue on the Registrable Securities held by Selling
Holders at a rate of 0.50% per annum on the Amount of Registrable Securities
held by Selling Holders;

 

provided that Liquidated Damages on the
Registrable Securities may not accrue under more than one of the foregoing
clauses (i), (ii), (iii), (iv) and (v) at any one time; and provided further that (1) upon the filing of the
Initial Shelf Registration as required hereunder (in the case of clause (a)(i) of
this Section 3), (2) upon the effectiveness of a Shelf Registration
as required hereunder (in the case of clause (a)(ii) of this Section 3),
(3) upon the effectiveness of a Shelf Registration which had ceased to
remain effective (in the case of clause (a)(iii) of this Section 3), (4) upon
the effectiveness of a post-effective amendment as required hereunder (in the
case of clause (a)(iv) of this Section 3), or (5) upon the
termination of the Deferral Period that caused the limit on the aggregate
duration of Deferral Periods to be exceeded (in the case of clause (a)(v) of
this Section 3), Liquidated Damages on the Registrable Securities as a
result of such clause shall cease to accrue. 
It is understood and agreed that, notwithstanding
any provision to the contrary, no Liquidated Damages shall accrue on any
Registrable Securities that are then covered by, and may be sold under, an
effective Shelf Registration Statement.

 

(b)                                 Notwithstanding Section 3(a),
the Company, upon written notice to the Holders, shall be permitted to suspend
the availability of a Registration Statement covering the Registrable
Securities for any bona fide reason whatsoever for up to 30 consecutive days
(the “Deferral Period”) in any 90-day period without being obligated to pay
Liquidated Damages; provided that
Deferral Periods may not total more than 90 days in the aggregate in any
twelve-month period.  The Company shall
not be required to specify in the written notice to the Holders the nature of
the event giving rise to the Deferral Period.

 

(c)                                  So long as Notes that are
Registrable Securities remain outstanding, the Company shall notify the Trustee
within five Business Days after each and every date on which an event occurs in
respect of which Liquidated Damages are required to be paid.  Any amounts of Liquidated Damages due
pursuant to clause (a)(i), (a)(ii), (a)(iii), (a)(iv) or (a)(v) of
this Section 3 will be payable in cash semiannually on December 15
and June 15 of each year (each, a “Damages Payment Date”),
commencing with the first such Damages Payment Date occurring after any such
Liquidated Damages commences to accrue, to Holders to whom regular interest is
payable on the Damages Payment Date, with respect to Notes that are Registrable
Securities, and

 

7

 

to Persons that are registered Holders on December 1
and June 1 immediately prior to a Damages Payment Date with respect to
Underlying Shares that are Registrable Securities, provided that any Liquidated Damages accrued with respect to
any Note or portion thereof called for redemption by the Company on a redemption
date or converted into Underlying Shares on a conversion date prior to the
Damages 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).  The amount of Liquidated Damages for
Registrable Securities will be determined by multiplying the applicable rate of
Liquidated Damages by the Amount of Registrable Securities outstanding on the first
Damages Payment Date following such Registration Default in the case of the
first such payment of Liquidated Damages with respect to a Registration Default
(and thereafter at the next succeeding Damages Payment Date until the cure of
such Registration Default), multiplied by a fraction, the numerator of which is
the number of days such Liquidated Damages rate was applicable during such
period (determined on the basis of a 360-day year comprised of twelve 30-day
months and, in the case of a partial month, the actual number of days elapsed),
and the denominator of which is 360.

 

4.                                       Registration Procedures.

 

In connection with its registration obligations pursuant to Section 2
hereof, the Company shall:

 

(a)                                  Prepare and file with the SEC,
on or prior to the Filing Date, a Registration Statement or Registration
Statements as prescribed by Section 2 hereof, and use its commercially 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, the Company shall furnish to and afford the Initial
Purchasers a reasonable opportunity to review copies of all such documents
proposed to be filed (in each case, where possible, at least three Business
Days prior to such filing, or such later date as is reasonable under the
circumstances) and to reflect in each such document when so filed reasonable
comments of the Initial Purchasers.  The
Company shall not file any Registration Statement or Prospectus or any
amendments or supplements thereto if the Holders of a majority in Amount of Registrable
Securities shall reasonably object in writing within such period.  The Company shall be deemed not to have used all reasonable
efforts to keep a Registration Statement effective during the Effectiveness
Period if it voluntarily takes any action that would result in Selling Holders
of the Registrable Securities covered thereby not being able to sell such
Registrable Securities during that period unless such action is required by
applicable law or unless the Company complies with this Agreement, including
without limitation the provisions of Section 4(i) hereof.

 

(b)                                 Prepare and file with the SEC
such amendments and post-effective amendments to each Shelf Registration, as
may be necessary to keep such Registration Statement continuously effective for
the Effectiveness Period; cause the related Prospectus to be supplemented by
any prospectus supplement required by applicable law, and as so supplemented to
be filed pursuant to Rule 424 (or any similar provisions then in force)
promulgated under the Securities Act; and comply with the provisions of the
Securities Act applicable to it with respect

 

8

 

to the disposition of all Registrable
Securities covered by such Registration Statement as so amended or in such
Prospectus as so supplemented.

 

(c)                                  Notify the Selling Holders and
Designated Counsel, if any, promptly (but in any event within two Business
Days), (i) when a Prospectus or any prospectus supplement or
post-effective amendment to a Registration Statement has been filed, and, with
respect to a Registration Statement or any post-effective amendment, when the
same has become effective under the Securities Act (including in such notice a
written statement that any Holder may, upon request, obtain, at the sole
expense of the Company, one conformed copy of such Registration Statement or
post-effective amendment, including financial statements and schedules,
documents incorporated or deemed to be incorporated by reference and exhibits),
(ii) of the issuance by the SEC of any stop order suspending the
effectiveness of a Registration Statement or of any order preventing or
suspending the use of any Prospectus or the initiation of any proceedings for
that purpose, (iii) of the happening of any event, the existence of any
condition or any information becoming known (but not the nature or details
concerning such event, condition or information) that makes any statement made
in such Registration Statement or related Prospectus or any document
incorporated or deemed to be incorporated therein by reference untrue in any
material respect or that requires the making of any changes in or amendments or
supplements to such Registration Statement, Prospectus or documents so that, in
the case of the Registration Statement, it will 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, and
that in the case of the Prospectus, it will 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 and (iv) of the
Company’s determination that a post-effective amendment to a Registration
Statement would be appropriate.

 

(d)                                 Use its commercially reasonable
efforts to prevent the issuance of any order suspending the effectiveness of a
Registration Statement or of any order preventing or suspending the use of a
Prospectus and, if any such order is issued, to use its commercially reasonable
efforts to obtain the withdrawal of any such order at the earliest possible
moment, and provide immediate notice to the Selling Holders of the withdrawal
of any such order.

 

(e)                                  Furnish to each Selling Holder,
if requested, and Designated Counsel, if any, at the sole expense of the
Company, one conformed copy of the Registration Statement or Registration
Statements and each post-effective amendment thereto, including financial
statements and schedules, and, if requested, all documents incorporated or
deemed to be incorporated therein by reference and all exhibits.

 

(f)                                    Deliver to each Selling Holder
and Designated Counsel, if any, at the sole expense of the Company, as many
copies of the Prospectus (including each form of preliminary prospectus) and
each amendment or supplement thereto and any documents incorporated by
reference therein as such Persons may reasonably request; and, subject to
Sections 4A(a) and 4A(c) hereof, the Company hereby consents to the
use of such Prospectus and each amendment or supplement thereto by each of the
Selling Holders of Registrable Securities and dealers, if any, in connection
with the offering and sale of the Registrable Securities covered by such
Prospectus and any amendment or supplement thereto.

 

9

 

(g)                                 Cause the Company’s counsel to
perform Blue Sky law investigations and file registrations and qualifications
required to be filed in connection with the registration or qualification (or
exemption from such registration or qualification) of such Registrable
Securities or offer and sale under the securities or Blue Sky laws of such
jurisdictions within the United States as any Selling Holder reasonably
requests, keep each such registration or qualification (or exemption therefrom)
effective during the period such Registration Statement is required to be kept
effective and do any and all other acts or things reasonably necessary or
advisable under Blue Sky laws to enable the disposition in such jurisdictions
of the Registrable Securities covered by the applicable Registration Statement;
provided that the Company shall
not be required to (i) qualify generally to do business in any
jurisdiction where it is not then so qualified, (ii) take any action that
would subject it to general service of process in any such jurisdiction where
it is not then so subject or (iii) subject itself to taxation in any such
jurisdiction where it is not then so subject.

 

(h)                                 Cooperate with the Selling Holders
and their respective counsel to facilitate the timely preparation and delivery
of certificates representing shares of Registrable Securities to be sold, which
certificates shall not bear any restrictive legends and shall be in a form
eligible for deposit with The Depository Trust Company; and enable such shares
of Registrable Securities to be in such denominations and registered in such
names as the Selling Holders may reasonably request.

 

(i)                                     Upon the occurrence of any event
contemplated by Section 4(c)(ii), 4(c)(iii) or 4(c)(iv) hereof,
as promptly as practicable prepare and (subject to Section 4(a) hereof)
file with the SEC, at the sole expense of the Company, a supplement or
post-effective amendment to the Registration Statement or a supplement to the
related Prospectus or any document incorporated or deemed to be incorporated
therein by reference, or file any other required document so that, as
thereafter delivered to the purchasers of the Registrable Securities being sold
thereunder, any such Prospectus will not contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading.

 

(j)                                     Prior to the effective date of
the first Registration Statement relating to the Registrable Securities, (i) provide
the Trustee for the Notes and the transfer agent for the Common Stock with
certificates for the Registrable Securities in a form eligible for deposit with
The Depository Trust Company and (ii) provide a CUSIP number for the
Registrable Securities.

 

(k)                                  During the Effectiveness Period,
make available at reasonable times for inspection by one or more
representatives of the Selling Holders and any attorney or accountant retained
by any such Selling Holders (collectively, the “Inspectors”), at the
offices where normally kept, during reasonable business hours, at such time or
times as shall be mutually convenient for the Company and the Inspectors as a
group, all financial and other records, pertinent corporate documents and
instruments of the Company and its subsidiaries (collectively, the “Records”)
as shall be reasonably necessary to enable them to exercise any applicable due
diligence responsibilities, and cause the officers, directors and employees of
the Company and its subsidiaries to supply all information reasonably requested
by any such Inspector in connection with such Registration Statement; provided that the Company shall have no
obligation to provide any such information prior to the execution by the party
receiving such information of a

 

10

 

confidentiality agreement in a form
reasonably acceptable to the Company. 
Records that the Company determines, in good faith, to be confidential
and any Records that it notifies the Inspectors are confidential shall not be
disclosed by any Inspector unless (i) the disclosure of such Records is
necessary to avoid or correct a material misstatement or material omission in
such Registration Statement, (ii) the release of such Records is ordered
pursuant to a subpoena or other order from a court of competent jurisdiction, (iii) disclosure
of such information is, in the opinion of counsel for the Selling Holder or any
Inspector, necessary or advisable in connection with any action, claim, suit or
proceeding, directly involving or potentially involving such Selling Holder or Inspector
and arising out of, based upon, relating to, or involving this Agreement or any
transactions contemplated hereby or arising hereunder or (iv) the
information in such Records has been made generally available to the public
other than through the acts of such Inspector; provided
that prior notice shall be provided as soon as practicable to the Company of
the potential disclosure of any information by such Inspector pursuant to
clauses (ii) or (iii) of this sentence to permit the Company to
obtain a protective order (or waive the provisions of this paragraph (k)).  Each Inspector shall take such actions as are
reasonably necessary to protect the confidentiality of such information (if
practicable) to the extent such actions are otherwise not inconsistent with, an
impairment of or in derogation of the rights and interests of the Holder or any
Inspector, unless and until such information in such Records has been made
generally available to the public other than as a result of a breach of this
Agreement.

 

(l)                                     Provide (i) the Holders of
the Registrable Securities to be included in such Registration Statement and
Designated Counsel, if any, (ii) the sales or placement agent, if any,
thereof, and (iii) one counsel for such agents, reasonable opportunity to
participate in the preparation of such Registration Statement, each prospectus
included therein or filed with the SEC, and each amendment or supplement
thereto.

 

(m)                               During the Effectiveness Period,
comply with all applicable rules and regulations of the SEC and make
generally available to its security holders earning statements 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 12-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 after the effective date of a Registration
Statement, which statements shall cover said 12-month periods.

 

(n)                                 Cause the Indenture to be
qualified under the TIA not later than the effective date of the first
Registration Statement relating to the Registrable Securities; and in
connection therewith, cooperate with the Trustee and the Holders of the
Registrable Securities and their respective counsel to effect such changes to
the Indenture as may be required for the Indenture to be so qualified in
accordance with the terms of the TIA; and execute, and use all reasonable
efforts to cause the Trustee to execute, all documents as may be required to
effect such changes and all other forms and documents required to be filed with
the SEC to enable the Indenture to be so qualified in a timely manner.

 

(o)                                 Use its commercially reasonable
efforts to cause the Registrable Securities covered by any Shelf Registration
Statement to be registered with or approved by such other governmental agencies
or authorities as may be reasonably necessary to enable the Selling Holder or
Holders thereof to consummate the disposition of such Registrable Securities,
except

 

11

 

as may be required solely as a consequence of
the nature of such Selling Holder’s business, in which case the Company will
cooperate in all reasonable respects with the filing of such Registration
Statement and the granting of such approvals.

 

(p)                                 If requested by Designated
Counsel, if any, or the Holders of a majority in Amount of Registrable
Securities, (i) promptly incorporate in a prospectus supplement or
post-effective amendment such information as the Designated Counsel, if any, or
such Holders reasonably determine is necessary to be included therein, (ii) make
all required filings of such prospectus supplement or such post-effective
amendment as soon as reasonably practicable after the Company has received
notification of the matters to be incorporated in such prospectus supplement or
post-effective amendment and (iii) supplement or make amendments to such
Registration Statement.

 

(q)                                 Use its commercially reasonable
efforts to take all other steps necessary or advisable to effect the
registration of the Registrable Securities covered by a Registration Statement
contemplated hereby.

 

4A.                             Holders’ Obligations. (a) Each Holder agrees, by acquisition
of the Registrable Securities, that no Holder 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 Selling 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 Selling Holder
not misleading and any other information regarding such Selling 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.

 

(b)                                 The Company may require each Selling Holder of
Registrable Securities as to which any registration is being effected to
furnish to the Company such additional information regarding such Holder and
its plan of distribution of such Registrable Securities as the Company may,
from time to time, reasonably request to the extent necessary or advisable to
comply with the Securities Act.  The
Company may exclude from such registration the Registrable Securities of any
Selling Holder if such Holder fails to furnish such additional information
within twenty (20) Business Days after receiving such request.  Each Selling Holder as to which any Shelf
Registration is being effected agrees to furnish promptly to the Company all
information required to be disclosed so that the information previously
furnished to the Company by such Holder is not materially misleading and does
not omit to state any material

 

12

 

fact
required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances under which they were made.

 

(c)                                  Each Holder of Registrable Securities agrees
by acquisition of such Registrable Securities that, upon receipt of any notice
from the Company suspending the availability of the Registration Statement
pursuant to Section 3(b) hereof, or upon the happening of any event
of the kind described in Section 4(c)(ii), 4(c)(iii) or 4(c)(iv) hereof
(each Holder agrees to keep any such notice confidential), such Holder will
forthwith discontinue disposition of such Registrable Securities covered by
such Registration Statement or Prospectus until such Holder’s receipt of the
copies of the supplemented or amended Prospectus contemplated by Section 4(i) hereof,
or until it is advised in writing by the Company that the use of the applicable
Prospectus may be resumed, and it has received copies of any additional or
supplemental filings that are incorporated or deemed incorporated by reference
in such Prospectus thereto.

 

5.                                       Registration Expenses.

 

(a)                                  All fees and expenses incident
to the performance of or compliance with this Agreement by the Company shall be
borne by the Company, including, without limitation, (i) all registration
and filing fees (including, without limitation, fees and expenses of compliance
with state securities or Blue Sky laws, including, without limitation,
reasonable fees and disbursements of counsel in connection with Blue Sky
qualifications of the Registrable Securities and determination of the
eligibility of the Registrable Securities for investment under the laws of such
jurisdictions as provided in Section 4(g) hereof), (ii) printing
expenses, including, without limitation, expenses of printing certificates for
Registrable Securities in a form eligible for deposit with The Depository Trust
Company and of printing prospectuses if the printing of prospectuses is
requested by the Holders of a majority in Amount of Registrable Securities
included in any Registration Statement, (iii) messenger, telephone and
delivery expenses, (iv) fees and disbursements of counsel for the Company,
(v) Securities Act liability insurance, if the Company desires such
insurance, (vi) fees and expenses of all other Persons retained by the
Company, (vii) internal expenses of the Company (including, without
limitation, all salaries and expenses of officers and employees of the Company
performing legal or accounting duties), (viii) the expense of any annual
audit, (ix) the fees and expenses incurred in connection with the listing
of the securities to be registered on any securities exchange, if applicable,
and (x) the expenses relating to printing, word processing and distributing all
Registration Statements and any other documents necessary in order to comply
with this Agreement.  Notwithstanding
anything in this Agreement to the contrary, each Holder shall pay all brokerage
commissions with respect to any Registrable Securities sold by it and, except
as set forth in Section 5(b) below, the Company shall not be
responsible for the fees and expenses of any counsel, accountant or advisor for
the Holders.

 

(b)                                 The Company shall bear or reimburse
the Holders of the Registrable Securities being registered in a Shelf
Registration for the reasonable fees and disbursements of Designated Counsel.

 

13

 

6.                                       Indemnification.

 

(a)                                  The
Company agrees to indemnify and hold harmless (x) each Holder (which, for the
absence of doubt, for purposes of this Section 6 shall include the Initial
Purchasers), (y) each Person, if any, who controls (within the meaning of
either Section 15 of the Securities Act or Section 20 of the Exchange
Act) any Holder (any of the Persons referred to in this clause (b) being
hereinafter referred to as a “Controlling Person”), (z) the respective
officers, directors, partners, employees, representatives and agents of any
Holder (including any predecessor holder) or any Controlling Person (any person
referred to in clause (x), (y) or (z) may hereinafter be referred to as an “Indemnified
Holder”), against any losses, claims, damages or liabilities to which such
Indemnified Holder may become subject under the Securities Act or otherwise,
insofar as such losses, claims, damages or liabilities (or actions or
proceedings in respect thereof) arise out of or are based upon (i) any
untrue statement or alleged untrue statement of any material fact contained in
any Registration Statement or Prospectus, or any amendment or supplement
thereto or any related preliminary prospectus or (ii) the omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, in the light of the
circumstances under which they were made; provided
that the Company will not be liable under this Section 6(a),
(x) to the extent that any such loss, claim, damage or liability arises out of
or is based upon an untrue statement or alleged untrue statement, or omission
or alleged omission made in any such Registration Statement or Prospectus, or
any amendment or supplement thereto or any related preliminary prospectus in
reliance upon and in conformity with written information relating to any Holder
furnished to the Company by or on behalf of such Holder specifically for use
therein, (y) with respect to any untrue statement or alleged untrue statement,
or omission or alleged omission made in any preliminary prospectus if the
person asserting any such loss, claim, damage or liability who purchased
Registrable Securities which are the subject thereof did not receive a copy of
the Prospectus (or the preliminary prospectus as then amended or supplemented
if the Company shall have furnished such Indemnified Holder with such amendment
or supplement thereto on a timely basis) at or prior to the written
confirmation of the sale of such Registrable Securities to such person and, in
any case where such delivery is required by applicable law, the untrue
statement or alleged untrue statement or omission or alleged omission of a
material fact made in such preliminary prospectus was corrected in the
Prospectus (or the preliminary prospectus as then amended or supplemented if
the Company shall have furnished such Indemnified Holder with such amendment or
supplement thereto on a timely basis). 
The Company shall notify such Indemnified Holder promptly of the
institution, threat or assertion of any claim, proceeding (including any
governmental investigation) or litigation in connection with the matters
addressed by this Agreement that involves the Company or such Indemnified
Holder.

 

(b)                                 The Company
agrees to reimburse each Indemnified Holder upon demand for any legal or other
out-of-pocket expenses reasonably incurred by such Indemnified Holder in
connection with investigating or defending any such loss, claim, damage or
liability, any action or proceeding or in responding to a subpoena or
governmental inquiry related to the offering of the Registrable Securities,
whether or not such Indemnified Holder is a party to any action or proceeding.  In the event that it is finally
judicially determined that an Indemnified Holder was not entitled to receive
payments for legal and other expenses pursuant to this

 

14

 

Section 6,
such Indemnified Holder will promptly return all sums that had been advanced
pursuant hereto.

 

(c)                                  Each Holder
agrees, severally and not jointly, to indemnify and hold harmless the Company,
its directors, officers, employees, representatives and agents and each Person
who controls the Company (within the meaning of either Section 15 of the
Securities Act or Section 20 of the Exchange Act) to the same extent as
the indemnity provided in Section 6(a) from the Company to each
Holder, but only with reference to such losses, claims, damages or liabilities
which are caused by any untrue statement or omission or alleged untrue
statement or omission made in reliance upon and in conformity with information
relating to a Holder furnished to the Company in writing by such Holder
expressly for use in any Registration Statement or Prospectus, or any amendment
or supplement thereto or any related preliminary prospectus.  The liability of any Holder under this Section 6(c) shall
in no event exceed the proceeds received by such Holder from sales of
Registrable Securities giving rise to such obligation.

 

(d)                                 In case
any suit, action, proceeding (including any governmental or regulatory
investigation), claim or demand shall be brought or asserted against any Person
in respect of which indemnity may be sought pursuant to Section 6(a) or
(c), such Person (the “Indemnified Person”) shall promptly notify the
Person or Persons against whom such indemnity may be sought (each an “Indemnifying
Person”) in writing.  No
indemnification provided for in Section 6(a) or (c) shall be
available to any Person who shall have failed to give notice as provided in
this Section 6(d) if the party to whom notice was not given was
unaware of the proceeding to which such notice would have related and was
materially prejudiced by the failure to give such notice.  Nevertheless, the failure to give such notice
shall not relieve the Indemnifying Person or Persons from any liability which
it or they may have to the Indemnified Person for contribution or otherwise
than on account of the provisions of Section 6(a) or (c).  In case any such proceeding shall be brought
against any Indemnified Person and it shall notify the Indemnifying Person of
the commencement thereof, the Indemnifying Person shall be entitled to
participate therein and, to the extent that it shall wish, jointly with any
other Indemnifying Person similarly notified, to assume the defense thereof,
with counsel reasonably satisfactory to such Indemnified Person and shall pay
as incurred (or within 30 days of presentation) the fees and disbursements of
such counsel related to such proceeding. 
In any such proceeding, any Indemnified Person shall have the right to
retain its own counsel at its own expense. 
Notwithstanding the foregoing, the Indemnifying Person shall pay as
incurred (or within 30 days of presentation) the fees and expenses of the
counsel retained by the Indemnified Person in the event (i) the
Indemnifying Person and the Indemnified Person shall have mutually agreed to
the retention of such counsel, (ii) the named parties to any such
proceeding (including any impleaded parties) include both the Indemnifying
Person and the Indemnified Person and representation of both parties by the
same counsel would be inappropriate due to actual or potential differing
interests between them or (iii) the Indemnifying Person shall have failed
to assume the defense of and employ counsel reasonably acceptable to the
Indemnified Person within a reasonable period of time after notice of
commencement of the action.  It is
understood that the Indemnifying Person shall not, in connection with any
proceeding or related proceedings in the same jurisdiction, be liable for the
reasonable fees and expenses of more than one separate firm for all such
Indemnified Persons.  Such firm shall be
designated in writing by Holders of a majority in Amount of Registrable

 

15

 

Securities
in the case of parties indemnified pursuant to Section 6(a) and by
the Company in the case of parties indemnified pursuant to Section 6(c).  The Indemnifying Person 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 Person agrees to indemnify the Indemnified Person from and
against any loss or liability by reason of such settlement or judgment.  In addition, the Indemnifying Person will
not, without the prior written consent of the Indemnified Person, settle or
compromise or consent to the entry of any judgment in any pending or threatened
claim, action or proceeding of which indemnification may be sought hereunder
(whether or not any Indemnified Person is an actual or potential party to such
claim, action or proceeding) unless such settlement, compromise or consent
includes an unconditional release of each Indemnified Person from all liability
arising out of such claim, action or proceeding.

 

(e)                          To the
extent the indemnification provided for in this Section 6 is unavailable
to or insufficient to hold harmless an Indemnified Person under Section 6(a) or
(c) in respect of any losses, claims, damages or liabilities (or actions
or proceedings in respect thereof) referred to therein, except by reason of the
exceptions set forth in Section 6(a) or (c) or the failure of
the Indemnified Person to give notice as required in Section 6(d), then
each Indemnifying Person shall contribute to the amount paid or payable by such
Indemnified Person as a result of such losses, claims, damages or liabilities
(or actions or proceedings in respect thereof) in such proportion as is
appropriate to reflect the relative benefits received by the Indemnifying
Person on the one hand and the Indemnified Person on the other hand from the
offering of the Notes pursuant to the Purchase Agreement and the Registrable
Securities pursuant to any Shelf Registration. 
If, however, the allocation provided by the immediately preceding
sentence is not permitted by applicable law, then each Indemnifying Person
shall contribute to such amount paid or payable by such Indemnified Person in
such proportion as is appropriate to reflect not only such relative benefits
but also the relative fault of the Indemnifying Person on the one hand and the
Indemnified Person on the other in connection with the statements or omissions
which resulted in such losses, claims, damages or liabilities (or actions or
proceedings in respect thereof), as well as any other relevant equitable
considerations.  The relative benefits
received by the Company shall be deemed to be equal to the total net proceeds
(before deducting expenses) received by the Company under the Purchase
Agreement from the offering and sale of the Registrable Securities giving rise
to such obligations.  The relative
benefits received by any Holder shall be deemed to be equal to the value of
receiving registration rights for the Registrable Securities under this
Agreement.  The relative fault of the
parties 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 Company on the one hand, such Indemnified Holder on the other, and the
parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission.

 

(f)                                    The
Company and the Initial Purchasers agree that it would not be just and
equitable if contribution pursuant to Section 6(e) were determined by
pro rata allocation or by any other method of allocation which does not take
account of the equitable considerations referred to in Section 6(e).  The amount paid or payable by an Indemnified
Person as a result of the losses, claims, damages or liabilities (or actions or
proceedings in respect thereof) referred to in Section 6(e) shall be
deemed to include any legal or other expenses reasonably incurred by

 

16

 

such
Indemnified Person in connection with investigating or defending any such
action or claim or enforcing any rights hereunder.  Notwithstanding the provisions of Section 6(e) and
(f), (i) in no event shall any Holder be required to contribute any amount
in excess of the amount by which the net proceeds received by such Holder from
the offering or sale of the Registrable Securities pursuant to a Shelf
Registration Statement exceeds the amount of damages which such Holder would
have otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission and (ii) 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.

 

(g)                                 Except
as otherwise provided in this Section 6, any losses, claims, damages,
liabilities or expenses for which an Indemnified Person is entitled to
indemnification or contribution under this Section 6 shall be paid by the
Indemnifying Person to the Indemnified Person as such losses, claims, damages,
liabilities or expenses are incurred (or within 30 days of presentation).

 

(h)                                 The remedies provided for in
this Section 6 are not exclusive and shall not limit any rights or
remedies that may otherwise be available to any indemnified party at law or in
equity.

 

(i)                                     The indemnity and contribution
agreements 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 by or on behalf of the Company, its officers or directors or any
other Person controlling the Company and (iii) acceptance of and payment
for any of the Registrable Securities.

 

7.                                       Rules 144 and 144A.

 

The Company covenants that it will file the reports required to be
filed by it under the Securities Act and the Exchange Act and the rules and
regulations adopted by the SEC thereunder in a timely manner in accordance with
the requirements of the Securities Act and the Exchange Act and, for so long as
any Registrable Securities remain outstanding, if at any time the Company is
not required to file such reports, it will, upon the request of any Holder,
make available such information necessary to permit sales pursuant to Rule 144A
under the Securities Act.  The Company
further covenants that, for so long as any Registrable Securities remain
outstanding, it will use all reasonable efforts to take such further action as
any Holder of Registrable Securities 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 (a) Rule 144 and Rule 144A under the
Securities Act, as such rules may be amended from time to time, or (b) any
similar rule or regulation hereafter adopted by the SEC.  The Company will provide a copy of this
Agreement to prospective purchasers of Registrable Securities identified to the
Company by the Initial Purchasers upon request. 
Upon the request of any Holder, the Company shall deliver to such Holder
a written statement as to whether it is subject to and has complied with such
requirements.  Notwithstanding the
foregoing, nothing in this Section 7 shall be deemed to require the
Company to register any of its securities pursuant to the Exchange Act.

 

17

 

8.                                       Underwritten Registrations.

 

No
Holder of Registrable Securities may participate in any Underwritten
Registration hereunder.

 

9.                                       Miscellaneous.

 

Specific Performance.

 

(a)                                  Remedies.  The Company acknowledges and agrees that any
failure by the Company to comply with its obligations under Sections 2 and 4
may result in material irreparable injury to the Initial Purchasers or the
Holders for which there is no adequate remedy at law, that it will not be
possible to measure damages for such injuries precisely and that, in the event
of any such failure, the Initial Purchasers or any Holder may obtain such
relief as may be required to specifically enforce the Company’s obligations
under Sections 2 and 4.  The Company
further agrees to waive the defense in any action for specific performance that
a remedy at law would be adequate.

 

(b)                                 No Inconsistent Agreements.  The Company has not, as of the date hereof,
and the Company shall not, after the date of this Agreement, enter into any
agreement with respect to any of its securities that is inconsistent with the
rights granted to the Holders of Registrable Securities in this Agreement or
otherwise conflicts with the provisions hereof.

 

(c)                                  Adjustments Affecting
Registrable Securities.  The Company shall not, directly or
indirectly, take any action with respect to the Registrable Securities as a
class with the intent of adversely affect the ability of the Holders of
Registrable Securities to include such Registrable Securities in a registration
undertaken pursuant to this Agreement.

 

(d)                                 Amendments and Waivers.  The provisions of this Agreement may not be
amended, modified or supplemented, and waivers or consents to departures from
the provisions hereof may not be given, otherwise than with the prior written
consent of the Company and the Holders of not less than a majority in Amount of
Registrable Securities; provided
that Section 6 and this Section 9(d) may not be amended, modified
or supplemented without the prior written consent of the Company and each
Holder (including, in the case of an amendment, modification or supplement of Section 6,
any Person who was a Holder of Registrable Securities disposed of pursuant to
any Registration Statement). 
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, impair, limit or compromise the rights of other Holders of Registrable
Securities may be given by Holders of at least a majority in Amount of
Registrable Securities being sold by such Holders pursuant to such Registration
Statement.

 

(e)                                  Notices.  All notices, requests and other
communications (including without limitation any notices or other
communications to the Trustee) provided for or permitted hereunder shall be
made in writing and delivered by hand-delivery, registered first-class mail,
next-day air courier or facsimile:

 

18

 

(1)                                  if
to a Holder of Registrable Securities, at the most current address of such
Holder set forth on (x) the records of the registrar under the Indenture, in
the case of Holders of Notes, and (y) the stock ledger of the Company, in the
case of Holders of common stock of the Company, unless, in either such case,
any Holder shall have provided notice information in a Notice and Questionnaire
or any amendment thereto, in which case such information shall control.

 

(2)                                  if
to the Initial Purchasers:

 

c/o Deutsche
Bank Securities Inc.

60 Wall Street

New York, New York 10005

Facsimile No.: (212) 797-8974

Attention: Equity Capital Markets 

with a copy to the General Counsel

Facsimile No.: (212) 797-4564

 

with a copy to:

 

Wilson Sonsini
Goodrich & Rosati, P.C.

650 Page Mill Road

Palo Alto, California 94304

Facsimile No.: (650) 493-6811

Attention: John A. Fore

 

(3)                                  if
to the Company:

 

Symmetricom, Inc.

2300 Orchard Parkway

San Jose, California 95131

Facsimile No.: (408) 428-7895

Attention: Chief Financial Officer

 

with a copy to:

 

Latham &
Watkins LLP

135 Commonwealth Drive

Menlo Park, California 94025

Facsimile No.: (650) 463-2600

Attention: Ora T. Fisher, Esq.

 

All
such notices, requests and communications shall be deemed to have been duly
given: when delivered by hand, if personally delivered; the earlier of the date
indicated on the notice of receipt and five (5) Business Days after being
deposited in the mail, postage prepaid, if mailed; one Business Day after being
timely delivered to a next-day air courier; and when the addressor receives
facsimile confirmation, if sent by facsimile during normal business hours, and
otherwise on the next Business Day during normal business hours.

 

19

 

(f)                                    Successors and Assigns.  This Agreement shall inure to the benefit of
and be binding upon the successors and assigns of each of the parties hereto,
including the Holders; provided
that this Agreement shall not inure to the benefit of or be binding upon a
successor or assign of a Holder unless and except to the extent such successor
or assign holds Registrable Securities.

 

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

 

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

 

(i)                                     Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO
CONTRACTS MADE AND PERFORMED WHOLLY WITHIN THE STATE OF NEW YORK, WITHOUT
REGARD TO PRINCIPLES OF CONFLICTS OF LAW. 
EACH OF THE PARTIES HERETO AGREES TO SUBMIT TO THE JURISDICTION OF THE
FEDERAL AND NEW YORK STATE COURTS SITTING IN MANHATTAN, NEW YORK CITY, THE
STATE OF NEW YORK, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO
THIS AGREEMENT.

 

(j)                                     Severability.  If any term, provision, covenant or
restriction of this Agreement is held by a court of competent jurisdiction 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, 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 is hereby stipulated and declared to be the
intention of the parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of such that may
be hereafter declared invalid, illegal, void or unenforceable.

 

(k)                                  Securities Held by the Company or
Its Affiliates.  Whenever the consent or approval of Holders
of a specified percentage in Amount 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) shall not be
counted in determining whether such consent or approval was given by the
Holders of such required percentage.

 

(l)                                     Third-Party Beneficiaries.  Holders of Registrable Securities are
intended third party beneficiaries of this Agreement and this Agreement may be
enforced by such Persons.

 

(m)                               Entire Agreement.  This Agreement, together with the Purchase
Agreement and the Indenture, is intended by the parties as a final and
exclusive statement of the agreement and understanding of the parties hereto in
respect of the subject matter contained herein and therein and any and all
prior oral or written agreements, representations, or warranties, contracts,
understandings, correspondence, conversations and memoranda between

 

20

 

the Initial Purchasers on the one hand and
the Company on the other, or between or among any agents, representatives,
parents, subsidiaries, affiliates, predecessors in interest or successors in
interest with respect to the subject matter hereof and thereof are merged
herein and replaced hereby.

 

[Signature page follows]

 

21

 

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

 

 

	
   

  	
  SYMMETRICOM,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
  /s/ William
  Slater

  	
   

  
	
   

  	
  Name: 

  	
  William
  Slater

  
	
   

  	
  Title: 

  	
  Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DEUTSCHE
  BANK SECURITIES INC.

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
  /s/ Tor
  Braham

  	
   

  
	
   

  	
  Name: 

  	
  Tor Braham

  
	
   

  	
  Title: 

  	
  Managing
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
  /s/ Richard
  Hart

  	
   

  
	
   

  	
  Name: 

  	
  Richard Hart

  
	
   

  	
  Title: 

  	
  Managing
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  RBC CAPITAL
  MARKETS CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
  /s/
  [illegible]

  	
   

  
	
   

  	
  Name: 

  	
   

  
	
   

  	
  Title: 

  	
   

  

 

 

[Signature Page to Registration Rights Agreement]

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