Document:

EXHIBIT
10.1

UNITED DOMINION REALTY TRUST, INC., as Issuer

U.S. BANK NATIONAL ASSOCIATION, as Trustee

INDENTURE

Dated as of

October 12, 2006

3.625% Convertible Senior Notes due 2011

 

TABLE OF
CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  1

  	
   

  	
   

  
	
   

  	
   

  	
  DEFINITIONS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1.01.

  	
   

  	
  Definitions

  	
   

  	
  1

  
	
   

  	
   

  	
  ARTICLE
  2

  	
   

  	
   

  
	
   

  	
   

  	
  ISSUE,
  DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF NOTES

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 2.01.

  	
   

  	
  Designation Amount and Issue of Notes

  	
   

  	
  8

  
	
  Section 2.02.

  	
   

  	
  Form of Notes

  	
   

  	
  8

  
	
  Section 2.03.

  	
   

  	
  Date and Denomination of Notes; Payments of
  Interest

  	
   

  	
  9

  
	
  Section 2.04.

  	
   

  	
  Execution of Notes

  	
   

  	
  11

  
	
  Section 2.05.

  	
   

  	
  Exchange and Registration of Transfer of Notes;
  Restrictions on Transfer

  	
   

  	
  11

  
	
  Section 2.06.

  	
   

  	
  Mutilated, Destroyed, Lost or Stolen Notes

  	
   

  	
  16

  
	
  Section 2.07.

  	
   

  	
  Temporary Notes

  	
   

  	
  17

  
	
  Section 2.08.

  	
   

  	
  Cancellation of Notes

  	
   

  	
  17

  
	
  Section 2.09.

  	
   

  	
  CUSIP Numbers

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  3

  
	
  REDEMPTION AND
  REPURCHASE OF NOTES

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 3.01.

  	
   

  	
  Optional Redemption of Notes

  	
   

  	
  18

  
	
  Section 3.02.

  	
   

  	
  Notice of Optional Redemption; Selection of Notes

  	
   

  	
  18

  
	
  Section 3.03.

  	
   

  	
  Payment of Notes Called for Redemption by the
  Issuer

  	
   

  	
  20

  
	
  Section 3.04.

  	
   

  	
  Sinking Fund

  	
   

  	
  20

  
	
  Section 3.05.

  	
   

  	
  Repurchase at Option of Holders Upon a Change in
  Control

  	
   

  	
  20

  
	
  Section 3.06.

  	
   

  	
  [Intentionally Omitted]

  	
   

  	
  22

  
	
  Section 3.07.

  	
   

  	
  Issuer Repurchase Notice

  	
   

  	
  22

  
	
  Section 3.08.

  	
   

  	
  Withdrawal of Repurchase Notice

  	
   

  	
  23

  
	
  Section 3.09.

  	
   

  	
  Deposit of Repurchase Price

  	
   

  	
  23

  
	
  Section 3.10.

  	
   

  	
  Notes Repurchased in Part

  	
   

  	
  24

  
	
  Section 3.11.

  	
   

  	
  Third Party Purchase

  	
   

  	
  24

  
	
  Section 3.12.

  	
   

  	
  Repayment to the Issuer

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  4

  
	
  PARTICULAR
  COVENANTS OF THE ISSUER

  
	
   

  
	
  Section 4.01.

  	
   

  	
  Payment of Principal, Premium and Interest

  	
   

  	
  24

  
	
  Section 4.02.

  	
   

  	
  Maintenance of Office or Agency

  	
   

  	
  24

  
	
  Section 4.03.

  	
   

  	
  Appointments to Fill Vacancies in Trustee’s
  Office

  	
   

  	
  25

  
	
  Section 4.04.

  	
   

  	
  Provisions as to Paying Agent

  	
   

  	
  25

  
	
  Section 4.05.

  	
   

  	
  Existence

  	
   

  	
  26

  
	
  Section 4.06.

  	
   

  	
  [Intentionally Omitted]

  	
   

  	
  26

  

 

 i
 

 

 

	
  Section 4.07.

  	
   

  	
  Rule 144A Information Requirement

  	
   

  	
  26

  
	
  Section 4.08.

  	
   

  	
  Stay, Extension and Usury Laws

  	
   

  	
  27

  
	
  Section 4.09.

  	
   

  	
  Compliance Certificate

  	
   

  	
  27

  
	
  Section 4.10.

  	
   

  	
  Additional Interest Notice

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  5

  
	
  NOTEHOLDERS’
  LISTS AND REPORTS BY THE ISSUER AND THE TRUSTEE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 5.01.

  	
   

  	
  Noteholders’ Lists

  	
   

  	
  27

  
	
  Section 5.02.

  	
   

  	
  Preservation and Disclosure of Lists

  	
   

  	
  28

  
	
  Section 5.03.

  	
   

  	
  Reports by Trustee

  	
   

  	
  28

  
	
  Section 5.04.

  	
   

  	
  Reports by Issuer

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  6

  
	
  REMEDIES OF THE
  TRUSTEE AND NOTEHOLDERS ON AN EVENT OF DEFAULT

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 6.01.

  	
   

  	
  Events of Default

  	
   

  	
  29

  
	
  Section 6.02.

  	
   

  	
  Payments of Notes on Default; Suit Therefor

  	
   

  	
  31

  
	
  Section 6.03.

  	
   

  	
  Application of Monies Collected by Trustee

  	
   

  	
  33

  
	
  Section 6.04.

  	
   

  	
  Proceedings by Noteholder

  	
   

  	
  33

  
	
  Section 6.05.

  	
   

  	
  Proceedings by Trustee

  	
   

  	
  34

  
	
  Section 6.06.

  	
   

  	
  Remedies Cumulative and Continuing

  	
   

  	
  34

  
	
  Section 6.07.

  	
   

  	
  Direction of Proceedings and Waiver of Defaults
  by Majority of Noteholders

  	
   

  	
  34

  
	
  Section 6.08.

  	
   

  	
  Notice of Defaults

  	
   

  	
  35

  
	
  Section 6.09.

  	
   

  	
  Undertaking to Pay Costs

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  7

  
	
  THE TRUSTEE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 7.01.

  	
   

  	
  Duties and Responsibilities of Trustee

  	
   

  	
  36

  
	
  Section 7.02.

  	
   

  	
  Reliance on Documents, Opinions, etc

  	
   

  	
  37

  
	
  Section 7.03.

  	
   

  	
  No Responsibility for Recitals, etc

  	
   

  	
  38

  
	
  Section 7.04.

  	
   

  	
  Trustee, Paying Agents, Conversion Agents or Note
  Registrar May Own Notes

  	
   

  	
  38

  
	
  Section 7.05.

  	
   

  	
  Monies to be Held in Trust

  	
   

  	
  39

  
	
  Section 7.06.

  	
   

  	
  Compensation and Expenses of Trustee

  	
   

  	
  39

  
	
  Section 7.07.

  	
   

  	
  Officers’ Certificate as Evidence

  	
   

  	
  .39

  
	
  Section 7.08.

  	
   

  	
  Conflicting Interests of Trustee

  	
   

  	
  40

  
	
  Section 7.09.

  	
   

  	
  Eligibility of Trustee

  	
   

  	
  40

  
	
  Section 7.10.

  	
   

  	
  Resignation or Removal of Trustee

  	
   

  	
  40

  
	
  Section 7.11.

  	
   

  	
  Acceptance by Successor Trustee

  	
   

  	
  41

  
	
  Section 7.12.

  	
   

  	
  Succession by Merger

  	
   

  	
  41

  
	
  Section 7.13.

  	
   

  	
  Preferential Collection of Claims

  	
   

  	
  42

  

 

 ii
 

 

 

	
  ARTICLE 8

  
	
  THE NOTEHOLDERS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 8.01.

  	
   

  	
  Action by Noteholders

  	
   

  	
  42

  
	
  Section 8.02.

  	
   

  	
  Proof of Execution by Noteholders

  	
   

  	
  42

  
	
  Section 8.03.

  	
   

  	
  Absolute Owners

  	
   

  	
  42

  
	
  Section 8.04.

  	
   

  	
  Issuer-Owned Notes Disregarded

  	
   

  	
  43

  
	
  Section 8.05.

  	
   

  	
  Revocation of Consents; Future Holders Bound

  	
   

  	
  43

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  9

  
	
  SUPPLEMENTAL
  INDENTURES

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 9.01.

  	
   

  	
  Supplemental Indentures Without Consent of
  Noteholders

  	
   

  	
  43

  
	
  Section 9.02.

  	
   

  	
  Supplemental Indenture With Consent of
  Noteholders

  	
   

  	
  45

  
	
  Section 9.03.

  	
   

  	
  Effect of Supplemental Indenture

  	
   

  	
  46

  
	
  Section 9.04.

  	
   

  	
  Notation on Notes

  	
   

  	
  46

  
	
  Section 9.05.

  	
   

  	
  Evidence of Compliance of Supplemental Indenture
  to be Furnished to Trustee

  	
   

  	
  46

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  10

  
	
  CONSOLIDATION,
  MERGER, SALE, CONVEYANCE AND LEASE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 10.01.

  	
   

  	
  Issuer May Consolidate on Certain Terms

  	
   

  	
  46

  
	
  Section 10.02.

  	
   

  	
  Issuer Successor to be Substituted

  	
   

  	
  47

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  11

  
	
  SATISFACTION AND
  DISCHARGE OF INDENTURE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 11.01.

  	
   

  	
  Discharge of Indenture

  	
   

  	
  48

  
	
  Section 11.02.

  	
   

  	
  Deposited Monies to be Held in Trust by Trustee

  	
   

  	
  48

  
	
  Section 11.03.

  	
   

  	
  Paying Agent to Repay Monies Held

  	
   

  	
  49

  
	
  Section 11.04.

  	
   

  	
  Return of Unclaimed Monies

  	
   

  	
  49

  
	
  Section 11.05.

  	
   

  	
  Reinstatement

  	
   

  	
  49

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  12

  
	
  IMMUNITY OF
  INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 12.01.

  	
   

  	
  Indenture and Notes Solely Corporate Obligations

  	
   

  	
  49

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  13

  
	
  CONVERSION OF
  NOTES

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 13.01.

  	
   

  	
  Right to Convert

  	
   

  	
  50

  
	
  Section 13.02.

  	
   

  	
  Exercise of Conversion Right; No Adjustment for
  Interest or Dividends

  	
   

  	
  53

  
	
  Section 13.03.

  	
   

  	
  Cash Payments in Lieu of Fractional Shares

  	
   

  	
  54

  
	
  Section 13.04.

  	
   

  	
  Conversion Rate

  	
   

  	
  54

  
	
  Section 13.05.

  	
   

  	
  Adjustment of Conversion Rate

  	
   

  	
  54

  

 

 iii
 

 

 

	
  Section 13.06.

  	
   

  	
  Change in Conversion Right Upon Certain
  Reclassifications, Business Combinations and Asset Sales

  	
   

  	
  61

  
	
  Section 13.07.

  	
   

  	
  Taxes on Shares Issued

  	
   

  	
  61

  
	
  Section 13.08.

  	
   

  	
  Reservation of Shares, Shares to be Fully Paid;
  Compliance with Governmental Requirements

  	
   

  	
  62

  
	
  Section 13.09.

  	
   

  	
  Responsibility of Trustee

  	
   

  	
  62

  
	
  Section 13.10.

  	
   

  	
  Notice to Holders Prior to Certain Actions

  	
   

  	
  63

  
	
  Section 13.11.

  	
   

  	
  Stockholder Rights Plans

  	
   

  	
  63

  
	
  Section 13.12.

  	
   

  	
  Settlement Upon Conversion

  	
   

  	
  64

  
	
  Section 13.13.

  	
   

  	
  Conversion Rate Adjustment After Certain Change
  in Control Transactions

  	
   

  	
  65

  
	
  Section 13.14.

  	
   

  	
  Ownership Limit; Withholding Tax

  	
   

  	
  66

  
	
  Section 13.15.

  	
   

  	
  Calculation In Respect of Notes

  	
   

  	
  66

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  14

  
	
  [INTENTIONALLY
  OMITTED]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  15

  
	
  MISCELLANEOUS
  PROVISIONS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 15.01.

  	
   

  	
  Provisions Binding on Issuer’s Successors

  	
   

  	
  67

  
	
  Section 15.02.

  	
   

  	
  Official Acts by Successor Corporation

  	
   

  	
  67

  
	
  Section 15.03.

  	
   

  	
  Addresses for Notices, etc

  	
   

  	
  67

  
	
  Section 15.04.

  	
   

  	
  Governing Law

  	
   

  	
  68

  
	
  Section 15.05.

  	
   

  	
  Evidence of Compliance with Conditions Precedent,
  Certificates to Trustee

  	
   

  	
  68

  
	
  Section 15.06.

  	
   

  	
  Legal Holidays

  	
   

  	
  68

  
	
  Section 15.07.

  	
   

  	
  Trust Indenture Act

  	
   

  	
  68

  
	
  Section 15.08.

  	
   

  	
  No Security Interest Created

  	
   

  	
  68

  
	
  Section 15.09.

  	
   

  	
  Benefits of Indenture

  	
   

  	
  69

  
	
  Section 15.10.

  	
   

  	
  Table of Contents, Headings, etc

  	
   

  	
  69

  
	
  Section 15.11.

  	
   

  	
  Authenticating Agent

  	
   

  	
  69

  
	
  Section 15.12.

  	
   

  	
  Execution in Counterparts

  	
   

  	
  70

  
	
  Section 15.13.

  	
   

  	
  Severability

  	
   

  	
  70

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A  Form
  of Note

  	
   

  	
  A-1

  

 

 iv
 

 

CROSS-REFERENCE TABLE*

	
  Trust
  Indenture Act Section

  	
   

  	
  Indenture Section

  
	
  310

  	
  (a)(1)

  	
   

  	
  7.09

  
	
   

  	
  (a)(2)

  	
   

  	
  7.09

  
	
   

  	
  (a)(3)

  	
   

  	
  N.A.

  
	
   

  	
  (a)(4)

  	
   

  	
  N.A.

  
	
   

  	
  (a)(5)

  	
   

  	
  N.A.

  
	
   

  	
  (b)

  	
   

  	
  7.08

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  311

  	
  (a)

  	
   

  	
  7.13

  
	
   

  	
  (b)

  	
   

  	
  7.13

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  312

  	
  (a)

  	
   

  	
  5.01

  
	
   

  	
  (b)

  	
   

  	
  5.02

  
	
   

  	
  (c)

  	
   

  	
  5.02

  
	
  313

  	
  (a)

  	
   

  	
  5.03

  
	
   

  	
  (b)

  	
   

  	
  5.03

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
   

  	
  (d)

  	
   

  	
  5.03

  
	
  314

  	
  (a)

  	
   

  	
  4.09, 5.04

  
	
   

  	
  (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)

  	
   

  	
  6.08

  
	
   

  	
  (c)

  	
   

  	
  6.05

  
	
   

  	
  (d)

  	
   

  	
  7.01

  
	
   

  	
  (e)

  	
   

  	
  6.09

  
	
  316

  	
  (a)(1)(A)

  	
   

  	
  6.07

  
	
   

  	
  (a)(1)(B)

  	
   

  	
  6.07

  
	
   

  	
  (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.

 v

INDENTURE

INDENTURE, dated as of October 12, 2006, between
United Dominion Realty Trust, Inc., a Maryland corporation (hereinafter called
the “Issuer”), having its principal
executive office at 1745 Shea Center Drive, Suite 200, Highlands Ranch,
Colorado 80129, and U.S. Bank National Association, a banking association organized
under the laws of the United States, as trustee hereunder (hereinafter called
the “Trustee”).

Each party agrees as follows for the benefit of the
other parties and for the equal and ratable benefit of the holders of the
Issuer’s 3.625% Convertible Senior Notes due 2011 (hereinafter called the “Notes”) on the date hereof.

ARTICLE 1

DEFINITIONS

Section 1.01.  Definitions.  The terms defined in this Section 1.01
(except as herein otherwise expressly provided or unless the context otherwise
requires) for all purposes of this Indenture and of any indenture supplemental
hereto shall have the respective meanings specified in this Section 1.01.  All other terms used in this Indenture that
are defined in the Trust Indenture Act (as defined below) or which are by
reference therein defined in the Securities Act (except as herein otherwise
expressly provided or unless the context otherwise requires) shall have the
respective meanings assigned to such terms in the Trust Indenture Act and in
the Securities Act as in force at the date of the execution of this
Indenture.  The words “herein,” “hereof,”
“hereunder” and words of similar
import refer to this Indenture as a whole and not to any particular Article,
Section or other Subdivision.  The terms
defined in this Article include the plural as well as the singular.

“Additional Interest”
has the meaning specified for Additional Interest Amount in Section 2(e) of the
Registration Rights Agreement (as defined below).

“Additional Interest
Notice” has the meaning specified in Section 4.10.

“Additional
Notes” has the
meaning specified in Section 2.01.

“Additional
Shares” has the
meaning specified in Section 13.13.

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

“Agent Members”
has the meaning specified in Section 2.05(b).

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

 

“Board of Directors”
means the Board of Directors of the Issuer or a committee of such Board duly
authorized to act for it hereunder.

“Business Day”
means, with respect to any Note, any day, other than a Saturday, Sunday or any
other day on which banking institutions in The City of New York are authorized
or obligated by law or executive order to close.

“Change in Control”
means the occurrence at any time any of the following events:
(1) consummation of any transaction or event (whether by means of a share
exchange or tender offer applicable to Common Stock, a liquidation,
consolidation, recapitalization, reclassification, combination or merger of the
Issuer or a sale, lease or other transfer of all or substantially all of the
consolidated assets of the Issuer) or a series of related transactions or
events pursuant to which all of the outstanding shares of Common Stock are
exchanged for, converted into or constitute solely the right to receive, cash,
securities or other property; (2) any “person” or “group” (as such terms are
used for purposes of Sections 13(d) and 14(d) of the Exchange Act, whether or
not applicable), other than the Issuer or any majority-owned subsidiary
of the Issuer or any employee benefit plan of the Issuer or such subsidiary, is
or becomes the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of more than 50% of the total voting power
in the aggregate of all classes of shares of capital stock of the Issuer then
outstanding entitled to vote generally in elections of the Issuer’s directors;
or (3) during any period of 12 consecutive months after the date of
original issuance of the Notes, persons who at the beginning of such 12-month
period constituted the Board of Directors of the Issuer, together with any new
persons whose election was approved by a vote of a majority of the persons then
still comprising the Board of Directors of the Issuer who were either members
of the Board of Directors of the Issuer at the beginning of such period or
whose election, designation or nomination for election was previously so
approved, cease for any reason to constitute a majority of the Board of Directors
of the Issuer.  Notwithstanding the
foregoing, even if any of the events specified in the preceding clauses (1)
through (3) have occurred, except as specified in clause (x), a Change in
Control will not be deemed to have occurred if either: (x) the Closing Sale
Price of the Common Stock for any five Trading Days within (i) the period
of 10 consecutive Trading Days ending immediately after the later of the Change
in Control or the public announcement of the Change in Control, in the case of
a Change in Control relating to an acquisition of capital stock, or
(ii) the period of 10 consecutive Trading Days ending immediately after
the Change in Control, in the case of a Change in Control relating to a merger,
consolidation or asset sale, equals or exceeds 105% of the Conversion Price
applicable to the Notes in effect on each of those Trading Days; provided, however, that the exception to the definition of “Change
in Control” specified in this clause (x) shall not apply in the context of a
Change in Control for purposes of Section 13.01(a)(iv) or Section 13.13; or (y)
at least 90% of the consideration (excluding cash payments for fractional
shares and cash payments made pursuant to dissenters’ appraisal rights) in a
merger, consolidation or other transaction otherwise constituting a Change in
Control consists of shares of common stock (or depositary receipts or other
certificates representing common equity interests) traded on a U.S. national
securities exchange or an established automated over-the-counter trading
market in the United States (or will be so traded immediately following such
merger, consolidation or other transaction) and as a result of the merger,
consolidation or other transaction the Notes become convertible into such
shares of common stock (or depositary receipts or other certificates
representing common equity 

 2
 

 

interests).  For the purposes of this definition, “person”
includes any syndicate or group that would be deemed to be a “person” under
Section 13(d)(3) of the Exchange Act.

“Change in Control Purchase
Price” has the meaning provided in Section 3.05(a) hereof.

“Change in Control
Repurchase Date” has the meaning provided in Section 3.05(a) hereof.

“Charter” means
the Articles of Restatement of the Issuer, as amended or supplemented from time
to time in accordance with the terms thereof and applicable law.

“Closing Sale Price,”
with respect to shares of Common Stock or other capital stock or similar equity
interests or other publicly traded securities on any date means the closing
sale price per share (or, if no closing sale price is reported, the average of
the closing bid and ask prices or, if more than one in either case, the average
of the average closing bid and the average closing ask prices) on such date as
reported on the principal United States securities exchange on which the Common
Stock or such other capital stock or similar equity interests or other
securities are traded or, if the Common Stock or such other capital stock or
similar equity interests or other securities are not listed on a United States
national or regional securities exchange, as reported by the National Quotation
Bureau Incorporated or another established over-the-counter trading
market in the United States. The Closing Sale Price shall be determined without
regard to after-hours trading or extended market making. In the absence
of the foregoing, the Issuer shall determine the Closing Sale Price on such
basis as it considers appropriate.

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

“Common Stock”
means the common stock of the Issuer, par value $0.01, as it exists on the date
of this Indenture or shares of any class or classes resulting from any
reclassification or reclassifications thereof and which have no preference in
respect of dividends or of amounts payable in the event of any voluntary or
involuntary liquidation, dissolution or winding up of the Issuer and which are
not subject to redemption by the Issuer; provided that
if at any time there shall be more than one such resulting class, the shares of
each such class then so issuable on conversion shall be substantially in the
proportion which the total number of shares of such class resulting from all
such reclassifications bears to the total number of shares of all such classes
resulting from all such reclassifications.

“Conversion Agent”
means the conversion agent appointed by the Issuer to act as set forth in
Article 13, which, initially, shall be the Trustee.

“Conversion Date”
has the meaning specified in Section 13.02.

“Conversion Notice”
has the meaning specified in Section 13.02.

 3
 

 

“Conversion Price”
on any date of determination means $1,000 divided by the Conversion Rate as of
such date.

“Conversion Rate”
has the meaning specified in Section 13.04.

“Corporate Trust Office”
or other similar term, means the designated office or agency of the Trustee at
which at any particular time its corporate trust business as it relates to this
Indenture shall be administered, which office is, at the date as of which this
Indenture is dated, located at 919 East Main Street, 10th Floor, Richmond,
Virginia 23219, Attention: Corporate Trust Services, or at any other time at
such other address as the Trustee may designate from time to time by notice to
the Issuer.

 “CUSIP” means the Committee on Uniform
Securities Identification Procedures.

“Custodian”
means U.S. Bank National Association, as custodian with respect to the Notes in
global form, or any successor entity thereto.

“Daily Conversion Value”
has the meaning provided in Section 13.12(b).

“Daily Settlement Amount”
has the meaning provided in Section 13.12(b).

“Daily VWAP” has
the meaning provided in Section 13.12(b).

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

“Defaulted Interest”
has the meaning specified in Section 2.03.

“Depositary”
means the clearing agency registered under the Exchange Act that is designated
to act as the Depositary for the Global Notes. 
DTC shall be the initial Depositary, until a successor shall have been
appointed and become such pursuant to the applicable provisions of this
Indenture, and thereafter, “Depositary”
shall mean or include such successor.

 “DTC” means The Depository Trust Company.

“Effective
Date” has the meaning
specified in Section 13.13(b).

“Event of Default”
means any event specified in Section 6.01 as an Event of Default.

“ex-dividend date”
has the meaning specified in Section 13.01(a)(iv).

“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.

“Expiration Time”
has the meaning specified in Section 13.05(e).

“Global Note”
has the meaning specified in Section 2.02.

 4
 

 

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

“Initial Notes”
has the meaning specified in Section 2.01.

“Initial Purchasers” means J.P.
Morgan Securities Inc, Merrill Lynch, Pierce, Fenner & Smith Incorporated,
Wachovia Capital Markets, LLC and Bear, Stearns & Co. Inc.

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

“Interest Payment Date”
means March 15 and September 15 of each year, beginning on March 15, 2007.

“Issuer”
means the party named as the “Issuer” in the first paragraph of this Indenture,
and, subject to the provisions of Article 10, shall include its successors and
assigns.

“Issuer Repurchase Notice”
has the meaning specified in Section 3.07(a).

“Issuer Repurchase Notice
Date” means the date on which the Issuer provides the Issuer
Repurchase Notice to holders in accordance with the provisions of Section 3.05(b).

“Legal Holiday”
means any day other than a Business Day.

“Market Disruption Event”
has the meaning provided in Section 13.12(b).

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

“Note Register”
has the meaning specified in Section 2.05(a).

“Note Registrar”
has the meaning specified in Section 2.05(a).

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

“Observation Period”
has the meaning specified in Section 13.12(b).

“Offering Memorandum”
means the Issuer’s offering memorandum dated October 5, 2006 relating to the
Notes.

“Officer” means
any person holding any of the following positions with the Issuer:  the Chairman of the Board, the Chief
Executive Officer, the President, any Vice President (whether or not designated
by a number or numbers or word or words added before or after the title “Vice
President”), the Chief Financial Officer, the Treasurer and the Secretary.

 5
 

 

“Officers’ Certificate”,
when used with respect to the Issuer, means a certificate signed by any two
Officers.

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

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

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

(b)           Notes,
or portions thereof, (i) for the redemption or repurchase of which monies in
the necessary amount shall have been deposited in trust with the Trustee or
with any Paying Agent (other than the Issuer) or (ii) which shall have been
otherwise discharged in accordance with Article 11;

(c)           Notes
in lieu of which, or in substitution for which, other Notes shall have been
authenticated and delivered pursuant to the terms of Section 2.06;
and

(d)           Notes
converted pursuant to Article 13.

“Paying Agent”
has the meaning specified in Section 2.08.

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

“PORTAL Market”
means The PORTAL Market operated by the Nasdaq Stock Market or any successor
thereto.

“Predecessor Note”
of any particular Note means every previous Note evidencing all or a portion of
the same debt as that evidenced by such particular Note, and, for the purposes
of this definition, any Note authenticated and delivered under Section 2.06 in
lieu of a lost, destroyed or stolen Note shall be deemed to evidence the same
debt as the lost, destroyed or stolen Note that it replaces.

“Purchase Agreement”
means the Purchase Agreement, dated October 5, 2006, between the Issuer and the
Initial Purchasers.

“Record Date”
has the meaning specified in Section 2.03.

“Redemption Date”
means the date fixed by the Issuer for redemption of all or any portion of the
Notes in accordance with the provisions of Section 3.02 hereof.

“Repurchase Notice”
has the meaning specified in Section 3.05(c).

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“Reference Dividend”
has the meaning specified in Section 13.05(d).

“Registration Rights
Agreement” means the Registration Rights Agreement, dated as of
October 12, 2006, among the Issuer and the Initial Purchasers, as amended from
time to time in accordance with its terms.

“Responsible Officer”
shall mean, when used with respect to the Trustee, any officer within the
corporate trust department of the Trustee with direct responsibility for the
administration of this Indenture and also means, with respect to a particular
corporate trust matter, any other officer to whom such matter is referred
because of such person’s knowledge of or familiarity with the particular
subject.

“Restricted Securities”
has the meaning specified in Section 2.05(c).

“Rule 144A”
means Rule 144A as promulgated under the Securities Act as it may be amended
from time to time hereafter.

“Scheduled Trading Day”
has the meaning specified in Section 13.12(b) hereof.

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

“Significant Subsidiary”
means, as of any date of determination, a Subsidiary of the Issuer that would
constitute a “significant subsidiary” as such
term is defined under Rule 1-02(w) of Regulation S-X of the Commission as in
effect on the date of this Indenture.

“Spin-Off” has the meaning specified in
Section 13.05(c).

“Stated Maturity” means September 15,
2011.

“Stock Price” has the meaning specified in
Section 13.13(b).

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

“Trading Day”
means a day during which trading in securities generally occurs on the New York
Stock Exchange or, if the Common Stock is not then listed on the New York Stock
Exchange, on the principal other United States national or regional securities
exchange on which the Common Stock is then listed or, if the Common Stock is
not then listed on a United States national or regional securities exchange, on
the principal other market on which the Common

 7
 

 

Stock is then traded;
provided that, for purposes of Section 13.12, the term Trading Day shall have
the meaning set forth in Section 13.12(b).

“Trading Price”
has the meaning specified in Section 13.01(a)(ii).

“Trust Indenture Act”
means the Trust Indenture Act of 1939, as amended, as it was in force at the
date of this Indenture; provided that
if the Trust Indenture Act of 1939 is amended after the date hereof, the term “Trust Indenture Act” shall mean, to the extent required by
such amendment, the Trust Indenture Act of 1939 as so amended.

“Trustee” means
U.S. Bank National Association and its successors and any corporation resulting
from or surviving any consolidation or merger to which it or its successors may
be a party and any successor trustee at the time serving as successor trustee
hereunder.

ARTICLE 2

ISSUE, DESCRIPTION,
EXECUTION, REGISTRATION AND EXCHANGE OF NOTES

Section 2.01.  Designation Amount and Issue of Notes.  The Notes shall be designated as the “3.625% Convertible Senior Notes due 2011.”  Upon the execution of this Indenture, and
from time to time thereafter, Notes may be executed by the Issuer and delivered
to the Trustee for authentication, and the Trustee shall thereupon authenticate
and deliver Notes upon a written order of the Issuer, such order signed by two
Officers, without any further action by the Issuer hereunder.

The aggregate principal amount of Notes which may be
authenticated and delivered under this Indenture is initially limited to
$250,000,000 (or $287,500,000 if the Initial Purchasers’ option set forth in
the Purchase Agreement is exercised in full). 
The Issuer may, without the consent of the holders of Notes, issue additional
debt securities (the “Additional Notes”)
from time to time in the future with the same terms, except for any difference
in the issue price and interest accrued prior to the issue date of the
Additional Notes, and with the same CUSIP number as the Notes originally issued
under this Indenture (the “Initial Notes”)
in an unlimited principal amount, provided that such Additional Notes must be
part of the same issue as the Initial Notes for United States federal income
tax purposes.  The Initial Notes and any
such Additional Notes will constitute a single series of debt securities, and
in circumstances in which this Indenture provides for the holders of Notes to
vote or take any action, the holders of Initial Notes and the holders of any
such Additional Notes will vote or take that action as a single class.

Section 2.02.  Form of Notes.  The Notes and the Trustee’s certificate of
authentication to be borne by such Notes shall be substantially in the form set
forth in Exhibit A hereto.  The
terms and provisions contained in the form of Note attached as Exhibit A
hereto shall constitute, and are hereby expressly made, a part of this
Indenture and, to the extent applicable, the Issuer and the Trustee, by their
execution and delivery of this Indenture, expressly agree to such terms and
provisions and to be bound thereby.

Any of the Notes may have such letters, numbers or
other marks of identification and such notations, legends, endorsements or
changes as the officers executing the same may approve (execution thereof to be
conclusive evidence of such approval) and as are not

 8
 

 

inconsistent with the
provisions of this Indenture, or as may be required by the Custodian, the
Depositary or by the National Association of Securities Dealers, Inc. in order
for the Notes to be tradable on The PORTAL Market or as may be required for the
Notes to be tradable on any other market developed for trading of securities
pursuant to Rule 144A or as may be required to comply with any applicable law
or with any rule or regulation made pursuant thereto or with any rule or
regulation of any securities exchange or automated quotation system on which
the Notes may be listed, or to conform to usage, or to indicate any special
limitations or restrictions to which any particular Notes are subject.

So long as the Notes are eligible for book-entry
settlement with the Depositary, or unless otherwise required by law, or
otherwise contemplated by Section 2.05(b), all of the Notes will be represented
by one or more Notes in global form registered in the name of the Depositary or
the nominee of the Depositary (a “Global Note”).  The transfer and exchange of beneficial
interests in any such Global Note shall be effected through the Depositary in
accordance with this Indenture and the applicable procedures of the
Depositary.  Except as provided in
Section 2.05(b), beneficial owners of a Global Note shall not be entitled to
have certificates registered in their names, will not receive or be entitled to
receive physical delivery of certificates in definitive form and will not be
considered holders of such Global Note.

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

Section 2.03.  Date and Denomination of Notes; Payments of Interest.  The Notes shall be issuable in registered
form without coupons in denominations of $1,000 principal amount and integral
multiples thereof.  Each Note shall be
dated the date of its authentication and shall bear interest from the date
specified on the face of the form of Note attached as Exhibit A hereto.  Interest on the Notes shall be computed on
the basis of a 360-day year consisting of twelve 30-day months.

The Person in whose name any Note (or its Predecessor
Note) is registered on the Note Register at the close of business, New York
City time, on any Record Date with respect to any Interest Payment Date shall
be entitled to receive the interest payable on such Interest Payment Date; provided that interest payable on the Stated Maturity shall
be payable to the Person to whom principal is payable; and provided,
further that if an Interest Payment Date
falls on or prior to a Redemption Date or a Change in Control Repurchase Date,
as the case may be, the semi-annual payment of interest becoming due on such
Interest Payment Date shall be payable to the holder of such Note registered as
such on the related Record Date. 
Interest shall be payable at the office of the Issuer maintained by the
Issuer for such purposes in the Borough of Manhattan, The City of New York, which
shall initially be an office or agency of the Trustee.

 9

 

The Issuer shall pay
interest (i) on any Notes in certificated form by check mailed to the address
of the Person entitled thereto as it appears in the Note Register; provided, however,
that a holder of any Notes in certificated form in the aggregate principal
amount of more than $5.0 million may specify by written notice to the Issuer
that it pay interest by wire transfer of immediately available funds to the
account specified by the Noteholder in such notice, or (ii) on any Global Note
by wire transfer of immediately available funds to the account of the
Depositary or its nominee.  If a payment
date is not a Business Day, payment shall be made on the next succeeding
Business Day, and no additional interest shall accrue thereon.  The term “Record Date”
with respect to any Interest Payment Date shall mean the March 1 or the
September 1, in each case whether or not such day is a Business Day, next
preceding the applicable Interest Payment Date. 
Interest payable on each Interest Payment Date or any other date on
which interest shall be payable shall equal the amount of interest accrued for
the period from and including the immediately preceding Interest Payment Date
in respect of which interest has been paid (or from and including October 12,
2006 if no interest shall have been payable) to but excluding such Interest
Payment Date or other date on which such interest should be payable.

Any interest on any Note which is payable, but is not
punctually paid or duly provided for, on any Interest Payment Date (herein called
“Defaulted Interest”) shall forthwith
cease to be payable to the Noteholder registered as such on the relevant Record
Date, and such Defaulted Interest shall be paid by the Issuer, at its election
in each case, as provided in clause (1) or (2) below:

(1)           The Issuer may elect
to make payment of any Defaulted Interest to the Persons in whose names the
Notes (or their respective Predecessor Notes) are registered at the close of
business, New York City time, on a special record date for the payment of such
Defaulted Interest, which shall be fixed in the following manner.  The Issuer shall notify the Trustee in
writing of the amount of Defaulted Interest proposed to be paid on each Note
and the date of the proposed payment (which shall be not less than twenty five
(25)  calendar days after the receipt by
the Trustee of such notice, unless the Trustee shall consent to an earlier
date), and at the same time the Issuer shall deposit with the Trustee an amount
of money equal to the aggregate amount to be paid in respect of such Defaulted
Interest or shall make arrangements satisfactory to the Trustee for such
deposit on or prior to the date of the proposed payment, such money when
deposited to be held in trust for the benefit of the Persons entitled to such
Defaulted Interest as in this clause provided. 
Thereupon the Trustee shall fix a special record date for the payment of
such Defaulted Interest which shall be not more than fifteen (15) calendar days
and not less than ten (10) calendar days prior to the date of the proposed
payment, and not less than ten (10) calendar days after the receipt by the
Trustee of the notice of the proposed payment (unless, the Trustee shall
consent to an earlier date).  The Trustee
shall promptly notify the Issuer of such special record date and, in the name
and at the expense of the Issuer, shall cause notice of the proposed payment of
such Defaulted Interest and the special record date therefor to be mailed,
first-class postage prepaid, to each holder at its address as it appears in the
Note Register, not less than ten calendar days prior to such special record
date (unless, the Trustee shall consent to an earlier date).  Notice of the proposed payment of such
Defaulted Interest and the special record date therefor having been so mailed,
such Defaulted Interest shall be paid to the Persons in whose names the Notes
(or their respective Predecessor Notes) are registered at the close of
business, New York City time, on such special record date and shall no longer
be payable pursuant to the following clause (2) of this Section 2.03.

 10
 

 

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

Section 2.04.  Execution of Notes.  The Notes shall be signed in the name and on
behalf of the Issuer by the manual or facsimile signature of an Officer.  Only such Notes as shall bear thereon a
certificate of authentication substantially in the form set forth on the form
of Note attached as Exhibit A hereto, manually executed by the Trustee
(or an authenticating agent appointed by the Trustee as provided by Section
15.11), shall be entitled to the benefits of this Indenture or be valid or
obligatory for any purpose.  Such
certificate by the Trustee (or such an authenticating agent) upon any Note
executed by the Issuer shall be conclusive evidence that the Note so
authenticated has been duly authenticated and delivered hereunder and that the
holder is entitled to the benefits of this Indenture.

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

Section 2.05.  Exchange and Registration of Transfer of Notes;
Restrictions on Transfer.  (a)  The
Issuer shall cause to be kept at the Corporate Trust Office a register (the
register maintained in such office and in any other office or agency of the
Issuer designated pursuant to Section 4 being herein sometimes collectively
referred to as the “Note Register”)
in which, subject to such reasonable regulations as it may prescribe, the
Issuer shall provide for the registration of Notes and of transfers of
Notes.  The Note Register shall be in
written form or in any form capable of being exchanged into written form within
a reasonably prompt period of time.  The
Trustee is hereby appointed “Note Registrar”
for the purpose of registering Notes and transfers of Notes as herein provided.
The Issuer may appoint one or more co-registrars in accordance with Section
4.02.

Upon surrender for registration of transfer of any
Note to the Note Registrar or any co-registrar, and satisfaction of the
requirements for such transfer set forth in this Section 2.05, the Issuer shall
execute, and the Trustee shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Notes of any authorized
denominations and of a like aggregate principal amount and bearing such
restrictive legends as may be required by this Indenture.

Notes may be exchanged for other Notes of any
authorized denominations and of a like aggregate principal amount, upon
surrender of the Notes to be exchanged at any such office or agency maintained
by the Issuer pursuant to Section 4.02. 
Whenever any Notes are so surrendered for exchange, the Issuer shall
execute, and the Trustee shall authenticate and deliver,

 11
 

 

the Notes which the
Noteholder making the exchange is entitled to receive bearing registration
numbers not contemporaneously outstanding.

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

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

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

In connection with the redemption of the Notes in
part, neither the Trustee nor any Note Registrar shall be required to issue or
register the transfer or exchange of (a) any Notes during a period beginning at
the opening of business fifteen (15) days before any selection of Notes to be
redeemed and ending at the close of business on the day of mailing of the
relevant notice of redemption, or (b) any Notes or portions thereof called for
redemption pursuant to Section 3.02, except the unredeemed portion of any Note
redeemed in part.

(b)           The following
provisions shall apply only to Global Notes:

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

(ii)           Notwithstanding any other provision
in this Indenture, no Global Note may be exchanged in whole or in part for
Notes registered, and no transfer of a Global Note in whole or in part may be
registered, in the name of any Person other than the Depositary or a nominee
thereof unless (1) the Depositary (x) has notified the Issuer that it is
unwilling or unable to continue as Depositary for such Global Note or (y) has
ceased to be a clearing agency registered under the Exchange Act, and a
successor depositary has not been appointed by the Issuer within ninety (90)
calendar days, (2) an Event of Default has occurred and is continuing or (3)
the Issuer, in its sole discretion, notifies the Trustee in writing that it no
longer wishes to have all the Notes represented by Global Notes.  Any Global Note exchanged pursuant to clause
(1) or (2) above shall be so exchanged in whole and not in part and any Global
Note exchanged pursuant to clause (3) above may be exchanged in whole or from
time to time in part as directed by the Issuer. 
Any Note issued in exchange for a Global Note or any portion thereof
shall be a Global Note; provided that
any such Note so issued that is registered in the name of a Person other than
the Depositary or a nominee thereof shall not be a Global Note.

 12
 

 

(iii)          Notes issued in exchange for a Global
Note or any portion thereof pursuant to clause (ii) above shall be issued in
definitive, fully registered form, without interest coupons, shall have an
aggregate principal amount equal to that of such Global Note 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 any legends
required hereunder.  Any Global Note to
be exchanged in whole shall be surrendered by the Depositary to the Trustee, as
Note Registrar.  With regard to any
Global Note to be exchanged in part, either such Global Note 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 Note, 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 make available for delivery the
Note issuable on such exchange to or upon the written order of the Depositary
or an authorized representative thereof.

(iv)          In the event of the occurrence of any
of the events specified in clause (ii) above, the Issuer will promptly make
available to the Trustee a reasonable supply of certificated Notes in
definitive, fully registered form, without interest coupons.

(v)           Neither any members of, or
participants in, the Depositary (“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 Note
registered in the name of the Depositary or any nominee thereof, and the
Depositary or such nominee, as the case may be, may be treated by the Issuer,
the Trustee and any agent of the Issuer or the Trustee as the absolute owner
and holder of such Global Note for all purposes whatsoever.  Notwithstanding the foregoing, nothing herein
shall prevent the Issuer, the Trustee or any agent of the Issuer 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 Note.

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

(c)           Every Note (and all
securities issued in exchange therefor or in substitution thereof) that bears
or is required under this Section 2.05(c) to bear the legend set forth in this
Section 2.05(c) (together with any Common Stock issued upon conversion of the
Notes, collectively, the “Restricted
Securities”) shall be subject to the restrictions on transfer set
forth

 13
 

 

in this
Section 2.05(c) (including those set forth in the legend below) unless such
restrictions on transfer shall be waived by written consent of the Issuer, and
the holder of each such Restricted Security, by such Noteholder’s acceptance
thereof, agrees to be bound by all such restrictions on transfer.  As used in this Section 2.05(c), the term “transfer” means any sale, pledge, loan,
transfer or other disposition whatsoever of any Restricted Security or any
interest therein.

Until the expiration of the holding period applicable
to sales of Restricted Securities under Rule 144(k) under the Securities Act
(or any successor provision), any certificate evidencing a Restricted Security
shall bear a legend in substantially the following form, unless such Restricted
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 sold pursuant to Rule 144 under the
Securities Act or any similar provision then in force, or unless otherwise
agreed by the Issuer in writing, with written notice thereof to the Trustee:

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE
SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE
FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER:

(1) REPRESENTS THAT IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED
IN RULE 144A UNDER THE SECURITIES ACT), IS AWARE THAT THE TRANSFER TO IT IS
BEING MADE IN RELIANCE ON RULE 144A UNDER THE SECURITIES ACT AND IS ACQUIRING
THIS SECURITY IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT;

(2) AGREES THAT IT WILL NOT, WITHIN TWO YEARS AFTER THE LATER OF THE
ORIGINAL ISSUE DATE OF THIS SECURITY AND THE LAST DATE ON WHICH UNITED DOMINION
REALTY TRUST, INC. OR AN AFFILIATE THEREOF WAS THE OWNER OF THIS SECURITY,
RESELL OR OTHERWISE TRANSFER THIS SECURITY OR THE COMMON STOCK ISSUABLE UPON
CONVERSION OF SUCH SECURITY EXCEPT (A) TO UNITED DOMINION REALTY TRUST, INC. OR
ANY OF ITS SUBSIDIARIES, (B) TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE
WITH RULE 144A UNDER THE SECURITIES ACT, (C) PURSUANT TO THE EXEMPTION FROM
REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE), OR
(D) 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 RESALE OR TRANSFER; AND

(3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS SECURITY IS
TRANSFERRED (OTHER THAN A TRANSFER PURSUANT TO CLAUSE 2(C) OR 2(D) ABOVE) A
NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. IN CONNECTION WITH ANY
TRANSFER OF THIS SECURITY WITHIN TWO YEARS AFTER THE LATER OF THE ORIGINAL
ISSUE DATE OF THIS SECURITY AND THE LAST DATE ON WHICH UNITED DOMINION REALTY
TRUST, INC. OR AN AFFILIATE THEREOF WAS THE OWNER OF THIS SECURITY, THE HOLDER
MUST

 14
 

 

CHECK THE APPROPRIATE BOX SET FORTH ON THE REVERSE HEREOF RELATING TO
THE MANNER OF SUCH TRANSFER AND SUBMIT THIS SECURITY TO THE TRUSTEE (OR ANY
SUCCESSOR TRUSTEE, AS APPLICABLE). IF THE PROPOSED TRANSFER IS PURSUANT TO
CLAUSE 2(C) ABOVE, THE HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO THE
TRUSTEE (OR ANY SUCCESSOR TRUSTEE, AS APPLICABLE), SUCH CERTIFICATIONS, LEGAL
OPINIONS OR OTHER INFORMATION AS UNITED DOMINION REALTY TRUST, INC. OR THE
TRUSTEE MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE
PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THIS LEGEND WILL BE REMOVED
UPON THE EARLIER OF THE TRANSFER OF THIS SECURITY PURSUANT TO CLAUSE 2(C) OR 2(D)
ABOVE OR THE EXPIRATION OF TWO YEARS FROM THE LATER OF THE ORIGINAL ISSUE DATE
OF THIS SECURITY AND THE LAST DATE ON WHICH UNITED DOMINION REALTY TRUST, INC.
OR AN AFFILIATE THEREOF WAS THE OWNER OF THIS SECURITY.

Any Notes that are Restricted Securities and as to
which such restrictions on transfer shall have expired in accordance with their
terms or as to conditions for removal of the foregoing legend set forth therein
have been satisfied may, upon surrender of such Note for exchange to the Note
Registrar in accordance with the provisions of this Section 2.05, be exchanged
for a new Note or Notes, of like tenor and aggregate principal amount, which
shall not bear the restrictive legend required by this Section 2.05(c).  If such Restricted Security surrendered for
exchange is represented by a Global Note bearing the legend set forth in this
Section 2.05(c), the principal amount of the legended Global Note shall be
reduced by the appropriate principal amount and the principal amount of a
Global Note without the legend set forth in this Section 2.05(c) shall be
increased by an equal principal amount. 
If a Global Note without the legend set forth in this Section 2.05(c) is
not then outstanding, the Issuer shall execute and the Trustee shall
authenticate and deliver an unlegended Global Note to the Depositary.

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

(d)           The Issuer or any of
its affiliates may, to the extent permitted by applicable law, at any time
purchase Notes in the open market, by tender at any price or by private
agreement.  Any Note purchased by the
Issuer or any of its affiliates (a) after the date that is two years from the
latest issuance of the Notes may, to the extent permitted by applicable law, be
reissued or sold or may be surrendered to the Trustee for cancellation or (b)
on or prior to the date in clause

 15
 

 

(a), shall be
surrendered to the Trustee for cancellation. 
Any Notes surrendered for cancellation may not be reissued or resold and
shall be canceled promptly.

(e)           The Trustee shall
have no responsibility or obligation to any Agent Members or any other Person
with respect to the accuracy of the books or records, or the acts or omissions,
of the Depositary or its nominee or of any participant or member thereof, with
respect to any ownership interest in the Notes or with respect to the delivery
to any Agent Member or other Person (other than the Depositary) of any notice
(including any notice of redemption) or the payment of any amount, under or
with respect to such Notes.  All notices
and communications to be given to the Noteholders and all payments to be made to
Noteholders under the Notes shall be given or made only to or upon the order of
the registered Noteholders (which shall be the Depositary or its nominee in the
case of a Global Note).  The rights of
beneficial owners in any Global Note shall be exercised only through the
Depositary subject to the customary procedures of the Depository.  The Trustee may rely and shall be fully
protected in relying upon information furnished by the Depositary with respect
to its Agent Members.

The Trustee shall have no obligation or duty to
monitor, determine or inquire as to compliance with any restrictions on
transfer imposed under this Indenture or under applicable law with respect to
any transfer of any interest in any Note (including any transfers between or
among Agent Members in any Global Indenture) other than to require delivery of
such certificates and other documentation or evidence as are expressly required
by, and to do so if and when expressly required by, the terms of this
Indenture, and to examine the same to determine substantial compliance as to
form with the express requirements hereof.

Section 2.06.  Mutilated, Destroyed, Lost or Stolen Notes.  In case any Note shall become mutilated or be
destroyed, lost or stolen, the Issuer in its discretion may execute, and upon
its written request the Trustee or an authenticating agent appointed by the
Trustee shall authenticate and make available for delivery, a new Note, bearing
a number not contemporaneously outstanding, in exchange and substitution for
the mutilated Note, or in lieu of and in substitution for the Note so
destroyed, lost or stolen.  In every
case, the applicant for a substituted Note shall furnish to the Issuer, to the
Trustee and, if applicable, to such authenticating agent such security or
indemnity as may be required by them to save each of them harmless for any
loss, liability, cost or expense caused by or connected with such substitution,
and, in every case of destruction, loss or theft, the applicant shall also
furnish to the Issuer, to the Trustee and, if applicable, to such
authenticating agent evidence to their satisfaction of the destruction, loss or
theft of such Note and of the ownership thereof.

Following receipt by the Trustee or such
authenticating agent, as the case may be, of satisfactory security or indemnity
and evidence, as described in the preceding paragraph, the Trustee or such
authenticating agent may authenticate any such substituted Note and make
available for delivery such Note. Upon the issuance of any substituted Note,
the Issuer may require the payment by the holder of a sum sufficient to cover
any tax, assessment or other governmental charge that may be imposed in
relation thereto and any other expenses connected therewith.  In case any Note which has matured or is
about to mature or has been called for redemption or has been properly tendered
for repurchase on a Change in Control Repurchase Date (and not withdrawn), as
the case may be, or is to be converted pursuant to this Indenture, shall become
mutilated or be destroyed, lost or stolen, the Issuer may, instead of issuing a

 16
 

 

substitute Note, pay or
authorize the payment of or authorize the conversion of the same (without
surrender thereof except in the case of a mutilated Note), as the case may be,
if the applicant for such payment or conversion shall furnish to the Issuer, to
the Trustee and, if applicable, to such authenticating agent such security or
indemnity as may be required by them to save each of them harmless for any
loss, liability, cost or expense caused by or in connection with such
substitution, and, in every case of destruction, loss or theft, the applicant
shall also furnish to the Issuer, the Trustee and, if applicable, any Paying
Agent or Conversion Agent evidence to their satisfaction of the destruction, loss
or theft of such Note and of the ownership thereof.

Every substitute Note issued pursuant to the
provisions of this Section 2.06 by virtue of the fact that any Note is
destroyed, lost or stolen shall constitute an additional contractual obligation
of the Issuer, whether or not the destroyed, lost or stolen Note shall be found
at any time, and shall be entitled to all the benefits of (but shall be subject
to all the limitations set forth in) this Indenture equally and proportionately
with any and all other Notes duly issued hereunder.  To the extent permitted by law, all Notes
shall be held and owned upon the express condition that the foregoing
provisions are exclusive with respect to the replacement or payment or exchange
or redemption or repurchase of mutilated, destroyed, lost or stolen Notes and
shall preclude any and all other rights or remedies notwithstanding any law or
statute existing or hereafter enacted to the contrary with respect to the
replacement or payment or exchange or redemption or repurchase of negotiable
instruments or other securities without their surrender.

Section 2.07.  Temporary Notes.  Pending the preparation of Notes in
certificated form, the Issuer may execute and the Trustee or an authenticating
agent appointed by the Trustee shall, upon the written request of the Issuer,
authenticate and deliver temporary Notes (printed or lithographed).  Temporary Notes shall be issuable in any
authorized denomination, and substantially in the form of the Notes in
certificated form, but with such omissions, insertions and variations as may be
appropriate for temporary Notes, all as may be determined by the Issuer.  Every such temporary Note shall be executed
by the Issuer and authenticated by the Trustee or such authenticating agent
upon the same conditions and in substantially the same manner, and with the
same effect, as the Notes in certificated form. Without unreasonable delay, the
Issuer will execute and deliver to the Trustee or such authenticating agent
Notes in certificated form and thereupon any or all temporary Notes may be
surrendered in exchange therefor, at each office or agency maintained by the
Issuer pursuant to Section 4.02 and the Trustee or such authenticating agent
shall authenticate and make available for delivery in exchange for such
temporary Notes an equal aggregate principal amount of Notes in certificated
form.  Such exchange shall be made by the
Issuer at its own expense and without any charge therefor.  Until so exchanged, the temporary Notes shall
in all respects be entitled to the same benefits and subject to the same
limitations under this Indenture as Notes in certificated form authenticated
and delivered hereunder.

Section 2.08.  Cancellation of Notes.  All Notes surrendered for the purpose of
payment, redemption, repurchase, conversion, exchange or registration of
transfer shall, if surrendered to the Issuer or any paying agent to whom Notes
may be presented for payment (the “Paying Agent”)
or Conversion Agent, which shall initially be the Trustee, or any Note Registrar,
be surrendered to the Trustee and promptly canceled by it or, if surrendered to
the Trustee, shall be promptly canceled by it and no Notes shall be issued in
lieu thereof except as expressly permitted by any of the provisions of this
Indenture.  The Trustee shall dispose of
such canceled Notes in

 17
 

 

accordance
with its customary procedures.  If the
Issuer shall acquire any of the Notes, such acquisition shall not operate as a
redemption, repurchase or satisfaction of the indebtedness represented by such
Notes unless and until the same are delivered to the Trustee for cancellation.

Section 2.09.  CUSIP Numbers.  The Issuer in issuing the Notes may use “CUSIP” numbers (if then generally in use),
and, if so, the Trustee shall use “CUSIP”
numbers in notices of redemption as a convenience to Noteholders; provided that
any such notice may state that no representation is made as to the correctness
of such numbers either as printed on the Notes or as contained in any notice of
a redemption and that reliance may be placed only on the other identification
numbers printed on the Notes, and any such redemption shall not be affected by
any defect in or omission of such numbers. 
The Issuer will promptly notify the Trustee of any change in the “CUSIP” numbers.

ARTICLE 3

REDEMPTION AND REPURCHASE OF NOTES

Section 3.01.  Optional Redemption of Notes.  The Issuer shall have the right to redeem the
Notes on the terms set forth in this Section 3.01 in order to preserve its
status as a real estate investment trust. 
If the Issuer determines it is necessary to redeem the Notes in order to
preserve its status as a real estate investment trust, the Issuer may, upon the
notice set forth in Section 3.02, redeem the Notes for cash, in whole or in
part, at a redemption price equal to 100% of the principal amount of the Notes
to be redeemed plus unpaid interest, if any, accrued thereon to the Redemption
Date; provided  that, in connection with any such
redemption, the Issuer shall provide the Trustee with an Officers’ Certificate
evidencing that the Board of Directors has, in good faith, made the
determination that it is necessary to redeem the Notes in order to preserve the
Issuer’s status as a real estate investment trust.

Other than as set forth in the preceding paragraph,
the Notes shall not be subject to redemption at the option of the Issuer prior
the Stated Maturity thereof.

Section 3.02.  Notice of Optional Redemption; Selection of Notes.  In case the Issuer shall desire to exercise
the right to redeem all or, as the case may be, any part of the Notes pursuant
to Section 3.01, it shall fix a date for redemption and it or, at its written
request received by the Trustee not fewer than five (5) Business Days prior (or
such shorter period of time as may be acceptable to the Trustee) to the date
the notice of redemption is to be mailed, the Trustee in the name of and at the
expense of the Issuer, shall mail or cause to be mailed a notice of such
redemption not fewer than thirty (30) calendar days nor more than sixty (60)
calendar days prior to the Redemption Date to each holder of Notes so to be
redeemed in whole or in part at its last address as the same appears on the
Note Register; provided that
if the Issuer makes such request of the Trustee, the text of the notice shall
be prepared by the Issuer.  Such mailing
shall be by first class mail.  The
notice, if mailed in the manner herein provided, shall be conclusively presumed
to have been duly given, whether or not the holder receives such notice.  In any case, failure to give such notice by
mail or any defect in the notice to the holder of any Note designated for
redemption as a whole or in part shall not affect the validity of the
proceedings for the redemption of any other Note.  Concurrently with the mailing of any such
notice of redemption, the Issuer shall issue a press release announcing such
redemption, the form and content of which press release shall be determined by
the Issuer in its sole discretion.  The
failure

 18
 

 

to issue any
such press release or any defect therein shall not affect the validity of the
redemption notice or any of the proceedings for the redemption of any Note
called for redemption.

Each such notice of redemption shall specify: (i) the
aggregate principal amount of Notes to be redeemed, (ii) the CUSIP number or numbers
of the Notes being redeemed, (iii) the date fixed for redemption (which shall
be a Business Day), (iv) the redemption price at which Notes are to be
redeemed, (v) the place or places of payment and that payment will be made upon
presentation and surrender of such Notes, (iv) that interest accrued and unpaid
to the date fixed for redemption will be paid as specified in said notice, and
that on and after said date interest thereon or on the portion thereof to be
redeemed will cease to accrue, (vii) that the holder has a right to convert the
Notes called for redemption, (viii) the Conversion Rate on the date of such
notice and (ix) the time and date on which the right to convert such Notes or
portions thereof pursuant to this Indenture will expire.  If fewer than all the Notes are to be
redeemed, the notice of redemption shall identify the Notes to be redeemed
(including CUSIP numbers, if any).  In
case any Note is to be redeemed in part only, the notice of redemption shall
state the portion of the principal amount thereof to be redeemed and shall
state that, on and after the Redemption Date, upon surrender of such Note, a
new Note or Notes in principal amount equal to the unredeemed portion thereof
will be issued.

Whenever any Notes are to be redeemed, the Issuer
shall give the Trustee written notice of the Redemption Date, together with an
Officers’ Certificate as to the aggregate principal amount of Notes to be
redeemed, not fewer than thirty (30) calendar days (or such shorter period of
time as may be acceptable to the Trustee) prior to the Redemption Date.

On or prior to the Redemption Date specified in the
notice of redemption given as provided in this Section 3.02, the Issuer shall
deposit with the Paying Agent (or, if the Issuer is acting as its own Paying
Agent, set aside, segregate and hold in trust as provided in Section 4.04) an
amount of money in immediately available funds sufficient to redeem on the
Redemption Date all the Notes (or portions thereof) so called for redemption
(other than those theretofore surrendered for exchange) at the appropriate
redemption price, together with accrued interest to the Redemption Date; provided that if such payment is made on the Redemption
Date, it must be received by the Paying Agent, by 11:00 a.m., New York City
time, on such date.  The Issuer shall be
entitled to retain any interest, yield or gain on amounts deposited with the
Paying Agent pursuant to this Section 3.02 in excess of amounts required
hereunder to pay the redemption price and accrued interest to the Redemption
Date.  If any Note called for redemption
is converted pursuant hereto prior to such Redemption Date, any money deposited
with the Paying Agent or so segregated and held in trust for the redemption of
such Note shall be paid to the Issuer or, if then held by the Issuer, shall be
discharged from such trust.

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

 19
 

 

all purposes hereof, notwithstanding
that any such Note is submitted for conversion in part before the mailing of
the notice of redemption.

Upon any redemption of less than all of the
outstanding Notes, the Issuer and the Trustee may (but need not), solely for
purposes of determining the pro rata allocation among such Notes that are
outstanding at the time of redemption, treat as outstanding any Notes
surrendered for conversion during the period in which Notes are selected for
redemption.

Section 3.03.  Payment of Notes Called for Redemption by the Issuer.  If notice of redemption has been given as
provided in Section 3.02, the Notes or portion of Notes with respect to which
such notice has been given shall, unless converted pursuant to the terms
hereof, become due and payable on the date fixed for redemption at the place or
places stated in such notice at the redemption price, plus interest accrued to
the Redemption Date, and unless the Issuer shall default in the payment of the
amounts owing on the Notes upon such redemption, interest on the Notes or
portion of Notes so called for redemption shall cease to accrue on and after
such date and, except as provided in Section 7.05 and Section 11.02, the Notes
shall cease to be entitled to any benefit or security under this Indenture, and
the holders thereof shall have no right in respect of such Notes except the
right to receive the redemption price thereof plus accrued and unpaid interest
to the Redemption Date.  On presentation
and surrender of such Notes at a place of payment in said notice specified, the
said Notes or the specified portions thereof shall be paid and redeemed by the
Issuer at the redemption price, together with interest accrued thereon to the
Redemption Date.

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

Notes and portions of Notes that are to be redeemed
pursuant to this Article 3 shall be convertible by the Holder thereof until
5:00 p.m., New York City time, on the second Business Day immediately preceding
the Redemption Date, unless the Issuer shall fail to pay the redemption price.

Section 3.04.  Sinking Fund.  There shall be no sinking fund provided for
the Notes.

Section 3.05.  Repurchase at Option of Holders Upon a Change in
Control.

(a)           If there shall occur
a Change in Control at any time prior to the Stated Maturity of the Notes, then
each Noteholder shall have the right to require the Issuer to repurchase its
Notes for cash, in whole or in part (in principal amounts of $1,000 and
integral multiples thereof), on a date (the “Change
in Control Repurchase Date”) specified by the Issuer (which date
shall be not earlier than fifteen (15) days and not more than thirty (30) days
after the Issuer Repurchase Notice Date related to such Change in Control) at a
purchase price equal to 100% of the principal amount of the Notes being
repurchased, plus accrued and unpaid interest to the Change in Control
Repurchase Date (such amount, the “Change in
Control Purchase Price”).

(b)           Within 20 days after
the occurrence of a Change in Control, the Issuer shall mail or cause to be
mailed to all holders of record on the date of the Change in Control (and to

 20
 

 

beneficial
owners as required by applicable law) an Issuer Repurchase Notice as set forth
in Section 3.07 with respect to such Change in Control.  The Issuer shall also deliver a copy of the
Issuer Repurchase Notice to the Trustee and the Paying Agent at such time as it
is mailed to Noteholders.  In addition to
the mailing of such Issuer Repurchase Notice, the Issuer shall disseminate a
press release through Dow Jones & Company, Inc., Bloomberg Business News or
a substantially similar financial news organization announcing the occurrence
of such Change in Control and publish such information in a newspaper of
general circulation in The City of New York or on the Issuer’s web site, or
through such other public medium as the Issuer shall deem appropriate at such
time.  The failure to issue any such
press release or any defect therein shall not affect the validity of the Issuer
Repurchase Notice or any proceedings for the repurchase of any Note which any
Noteholder may elect to have the Issuer redeem as provided in this Section
3.05.

No failure of the Issuer to give the foregoing notices
and no defect therein shall limit the Noteholders’ repurchase rights or affect the
validity of the proceedings for the repurchase of the Notes pursuant to this
Section 3.05.

(c)           In order to exercise
its repurchase right, the holder must deliver to the Paying Agent, prior to the
close of business on the third Business Day prior to the Change in Control
Repurchase Date, a written notice of repurchase (the “Repurchase Notice”).  Such Repurchase Notice shall state:  (A) the certificate number (if the Note is in
certificated form) of the Note which the holder will deliver to be repurchased,
(B) the portion of the principal amount of the Note which the holder will
deliver to be repurchased, in multiples of $1,000, provided that the remaining
principal amount of Notes is in an authorized denomination and (C) that such
Note shall be repurchased pursuant to the terms and conditions specified in the
Note and in this Indenture.  Any
Repurchase Notice provided in respect of a beneficial interest in a Global Note
shall be required to comply with the applicable procedures of the Depositary.

(d)           The Issuer, if so
requested, shall repurchase from the holder thereof, pursuant to this Section
3.05, a portion of a Note, if the principal amount of such portion is $1,000 or
a whole multiple of $1,000.  Provisions
of this Indenture that apply to the repurchase of all of a Note also apply to
the repurchase of such portion of such Note.

(e)           Notwithstanding the
foregoing, no Notes may be repurchased by the Issuer pursuant to this Section
3.05 if there has occurred and is continuing an Event of Default with respect
to the Notes (other than a default in the payment of the Change in Control
Purchase Price for the Notes to be repurchased).

(f)            The Paying Agent
shall promptly notify the Issuer of the receipt by it of any Repurchase Notice
or written notice of withdrawal thereof. 
All questions as to the validity, eligibility (including time of
receipt) and acceptance of any Note for repurchase shall be determined by the
Issuer, whose determination shall be final and binding absent manifest error.

(g)           Payment of the Change
in Control Purchase Price for a Note for which a Repurchase Notice has been
delivered and not withdrawn is conditioned upon book-entry transfer or delivery
of the Notes, together with necessary endorsements, to the Paying Agent.  Such Change in Control Purchase Price shall
be paid to such holder, subject to receipt of funds

 21
 

 

and/or Notes
by the Paying Agent, within two (2) Business Days following the later of (x)
the Change in Control Repurchase Date with respect to such Note (provided the
holder has satisfied the conditions in this Section 3.05) and (y) the time of
book-entry transfer or delivery of such Note or beneficial interest therein to
the Paying Agent by the holder thereof.

Section 3.06.  [Intentionally Omitted]

Section 3.07.  Issuer Repurchase Notice.

(a)           In connection with
any repurchase of Notes, the Issuer shall, on the applicable Issuer Repurchase
Notice Date, give written notice to holders (with a copy to the Trustee)
setting forth the information specified in this Section 3.07 (in either case,
the “Issuer Repurchase Notice”).

Each Issuer Repurchase Notice shall:

(1)           state the Change in
Control Purchase Price and the amount of interest accrued and unpaid per $1,000
principal amount of Notes to the Change in Control Repurchase Date;

(2)           the Change in
Control Repurchase Date;

(3)           the circumstances
constituting the Change in Control;

(4)           state that holders
must exercise their right to elect to repurchase prior to the close of business
on the third Business Day prior to the Change in Control Repurchase Date;

(5)           include a form of
Repurchase Notice;

(6)           state the name and
address of the Trustee and the Paying Agent and, if the Notes are then
convertible (including in connection with a Change in Control), state the name
and address of the Conversion Agent;

(7)           state that Notes
must be surrendered to the Paying Agent to collect the Change in Control
Purchase Price and accrued and unpaid interest;

(8)           state that a holder
may withdraw its Repurchase Notice at any time prior to the close of business
on the third Business Day prior to the Change in Control Repurchase Date by
delivering a valid written notice of withdrawal in accordance with Section
3.08;

(9)           if the Notes are
then convertible (including in connection with a Change in Control), state that
Notes as to which a Repurchase Notice has been given may be converted from and
including the Effective Date of such Change in Control up to and including the
earlier of the 30th Business Day following such Effective Date and the second
Business Day prior the Stated Maturity of the Notes provided the Repurchase
Notice is withdrawn by the holder in accordance with the terms of this
Indenture;

(10)         state that, unless
the Issuer defaults in making payment of the Change in Control Purchase Price,
interest on Notes in respect of which a Repurchase Notice shall have been

 22
 

 

submitted and
not withdrawn will cease to accrue on and after the Change in Control
Repurchase Date; and

(11)         state the CUSIP
number of the Notes, if CUSIP numbers are then in use.

An Issuer Repurchase Notice may be given by the Issuer
or, at the Issuer’s request, the Trustee shall give such Issuer Repurchase
Notice in the Issuer’s name and at the Issuer’s expense; provided
that the text of the Issuer Repurchase Notice shall be prepared by the Issuer.

If any of the Notes is represented by a Global Note,
then the Issuer will modify such notice to the extent necessary to accord with
the applicable procedures of the Depositary that apply to the repurchase of
Global Notes.

(b)           The Issuer will, to
the extent applicable, comply with the provisions of Rule 13e-4 and Rule 14e-1
(or any successor provision) under the Exchange Act that may be applicable at
the time of the repurchase of the Notes, file the related Schedule TO (or any
successor schedule, form or report) under the Exchange Act and comply with all
other applicable federal and state securities laws in connection with the
repurchase of the Notes.

Section 3.08.  Withdrawal of Repurchase Notice.  A Repurchase Notice may be withdrawn, in
whole or in part, by means of a written notice of withdrawal delivered to the
office of the Paying Agent at any time prior to the close of business on the
third Business Day prior to a Change in Control Repurchase Date.  Such notice of withdrawal must specify:

(a)           the name of the
holder;

(b)           the certificate
number(s) of all withdrawn Notes in certificated form;

(c)           the principal amount
of Notes with respect to which such notice of withdrawal is being submitted,
which must be an integral multiple of $1,000; and

(d)           the principal amount
of Notes, if any, which remains subject to the original Repurchase Notice,
which must be an integral multiple of $1,000.

Any withdrawal notice provided in respect of a
beneficial interest in a Global Note shall be required to comply with the applicable
procedures of the Depositary.

Section 3.09.  Deposit of Repurchase Price.

(a)           Prior to 11:00 a.m.,
New York City time, on the Change in Control Repurchase Date, the Issuer shall
deposit with the Paying Agent or, if the Issuer is acting as the Paying Agent,
shall segregate and hold in trust as provided in Section 4.04 an amount of cash
(in immediately available funds if deposited on the Change in Control
Repurchase Date), sufficient to pay the aggregate Change in Control Purchase
Price of all the Notes or portions thereof that are to be repurchased as of the
Change in Control Repurchase Date.

(b)           If on the Change in
Control Repurchase Date the Paying Agent holds money sufficient to pay the
Change in Control Purchase Price of the Notes that holders have elected to

 23
 

 

require the
Issuer to repurchase in accordance with Section 3.05 then, on and after the
Change in Control Repurchase Date such Notes will cease to be outstanding,
interest will cease to accrue with respect to such Notes and all other rights of
the holders of such Notes will terminate, other than the right to receive the
Change in Control Purchase Price.  Such
will be the case whether or not book-entry transfer of the Note to the Paying
Agent is made or whether or not Notes in certificated form, together with
necessary endorsements, are delivered to the Paying Agent.

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

Section 3.11.  Third Party Purchase.  The Issuer may arrange for a third party to
purchase Notes for which the Issuer has received a valid Repurchase Notice that
has not been properly withdrawn, in the manner and otherwise in compliance with
the requirements set forth herein and in the Notes. If a third party purchases
any Notes under such circumstances, then interest will continue to accrue on
the Notes and such Notes will continue to be outstanding after the Change in
Control Repurchase Date for all purposes of the Indenture and will be fungible
with all other Notes then outstanding.

Section 3.12.  Repayment to the Issuer.  Subject to Section 11.04, the Paying Agent shall return to the
Issuer any cash that remains unclaimed, together with interest, if any,
thereon, held by them for the payment of the Change in Control Purchase Price; provided that to the extent that the
aggregate amount of cash deposited by the Issuer pursuant to Section 3.09
exceeds the aggregate Change in Control Purchase Price of the Notes or portions
thereof which the Issuer is obligated to repurchase as of the Change in Control
Repurchase Date, then, unless otherwise agreed in writing with the Issuer,
promptly after the second Business Day following the Change in Control
Repurchase Date, the Paying Agent shall return any such excess to the Issuer,
together with interest, if any, thereon.

ARTICLE 4

PARTICULAR COVENANTS OF
THE ISSUER

Section 4.01.  Payment of Principal, Premium and Interest.  The Issuer covenants and agrees that it will
duly and punctually pay or cause to be paid when due the principal of
(including the redemption price upon redemption or the Change in Control
Purchase Price upon repurchase, in each case pursuant to Article 3), and
interest on, each of the Notes at the places, at the respective times and in
the manner provided herein and in the Notes.

Section 4.02.  Maintenance of Office or Agency.  The Issuer will maintain an office or agency
in the Borough of Manhattan, The City of New York, where the Notes may be
surrendered for registration of transfer or exchange or for presentation for
payment or for conversion, redemption or repurchase and where notices and
demands to or upon the Issuer in respect of the Notes and this Indenture may be
served.  As of the date of this
Indenture, such office shall be the U.S. Bank, Corporate Trust Services, 16th
Floor, 100 Wall Street, New York, New York 10005, and, at any other time, at
such other address as the Trustee may designate from

 24
 

 

time to time
by notice to the Issuer.  The Issuer will
give prompt written notice to the Trustee of the location, and any change in
the location, of such office or agency not designated or appointed by the
Trustee.  If at any time the Issuer shall
fail to maintain any such required office or agency or shall fail to furnish
the Trustee with the address thereof, such presentations, surrenders, notices
and demands may be made or served at the Corporate Trust Office.

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

The Issuer hereby initially designates the Trustee as
Paying Agent, Note Registrar, Custodian and Conversion Agent and the Corporate
Trust Office shall be considered as one such office or agency of the Issuer for
each of the aforesaid purposes.

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

Section 4.03.  Appointments to Fill Vacancies in Trustee’s Office.  The Issuer, whenever necessary to avoid or
fill a vacancy in the office of Trustee, will appoint, upon the terms and
conditions and otherwise as provided in Section 7.10, a Trustee, so that there
shall at all times be a Trustee hereunder.

Section 4.04.  Provisions as to Paying Agent.

(a)           If the Issuer shall
appoint a Paying Agent other than the Trustee, or if the Trustee shall appoint
such a Paying Agent, the Issuer will cause such Paying Agent to execute and
deliver to the Trustee an instrument in which such agent shall agree with the
Trustee, subject to the provisions of this Section 4.04:

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

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

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

The Issuer shall, on or before each due date of the
principal of, or interest on, the Notes, deposit with the Paying Agent a sum (in
funds which are immediately available on the due date for such payment)
sufficient to pay such principal, or interest and (unless such Paying Agent is

 25
 

 

the Trustee) the Issuer
will promptly notify the Trustee of any failure to take such action; provided that if such deposit is made on the due date, such
deposit shall be received by the Paying Agent by 11:00 a.m. New York City time,
on such date.

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

(c)           Anything in this
Section 4.04 to the contrary notwithstanding, the Issuer may, at any time, for
the purpose of obtaining a satisfaction and discharge of this Indenture, or for
any other reason, pay or cause to be paid to the Trustee all sums held in trust
by the Issuer or any Paying Agent hereunder as required by this Section 4.04,
such sums to be held by the Trustee upon the trusts herein contained and upon
such payment by the Issuer or any Paying Agent to the Trustee, the Issuer or
such Paying Agent shall be released from all further liability with respect to
such sums.

(d)           Anything in this
Section 4.04 to the contrary notwithstanding, the agreement to hold sums in
trust as provided in this Section 4.04 is subject to Section 11.02 and Section
11.03.

The Trustee shall not be responsible for the actions
of any other Paying Agents (including the Issuer if acting as its own Paying
Agent) and shall have no control of any funds held by such other Paying Agents.

Section 4.05.  Existence. 
Subject to Article 10, the Issuer will do or cause to be done all things
necessary to preserve and keep in full force and effect its existence and
rights (charter and statutory); provided
that the Issuer shall not be required to preserve any such right if the Issuer
shall determine that the preservation thereof is no longer desirable in the
conduct of its business and that the loss thereof is not disadvantageous in any
material respect to the Noteholders.

Section 4.06.  [Intentionally Omitted]

Section 4.07.  Rule 144A Information Requirement.  Within the period prior to the expiration of
the holding period applicable to sales thereof under Rule 144(k) under the
Securities Act (or any successor provision), the Issuer covenants and agrees
that it shall, during any period in which it is not subject to Section 13 or
15(d) under the Exchange Act, make available to any holder or beneficial holder
of Notes or any shares of Common Stock issued upon conversion thereof which
continue to be Restricted Securities in connection with any sale thereof and
any prospective purchaser of Notes or such shares of Common Stock designated by
such holder or beneficial holder, the information required pursuant to Rule
144A(d)(4) under the Securities Act upon the request of any holder or
beneficial holder of the Notes or such shares of Common Stock, all to the
extent required to enable such holder or beneficial holder to sell its Notes or
shares of Common Stock without registration under the Securities Act within the
limitation of the exemption provided by Rule 144A.

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Section 4.08.  Stay, Extension and Usury Laws.  The Issuer covenants (to the extent that it
may lawfully do so) that it shall not at any time insist upon, plead, or in any
manner whatsoever claim or take the benefit or advantage of, any stay,
extension or usury law or other law which would prohibit or forgive the Issuer
from paying all or any portion of the principal, premium, if any, or interest
on the Notes as contemplated herein, wherever enacted, now or at any time
hereafter in force, or which may affect the covenants or the performance of
this Indenture and the Issuer (to the extent it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law, and covenants that
it will not, by resort to any such law, hinder, delay or impede the execution
of any power herein granted to the Trustee, but will suffer and permit the
execution of every such power as though no such law had been enacted.

Section 4.09.  Compliance Certificate.  The Issuer shall deliver to the Trustee, within one hundred
twenty (120) calendar days after the end of each fiscal year of the Issuer, a
certificate signed by any of the principal executive officer, principal
financial officer or principal accounting officer of the Issuer, stating
whether or not to the knowledge of the signer thereof the Issuer 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 Issuer shall be in
default, specifying all such defaults and the nature and the status thereof of
which the signer may have knowledge.

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

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

Section 4.10.  Additional Interest Notice. 
In the event that the Issuer is required to pay Additional Interest to
holders of Notes pursuant to the Registration Rights Agreement, the Issuer will
provide written notice (“Additional Interest Notice”)
to the Trustee of its obligation to pay Additional Interest no later than
fifteen (15) calendar days prior to the proposed payment date for Additional
Interest, and the Additional Interest Notice shall set forth the amount of
Additional Interest to be paid by the Issuer on such payment date.  The Trustee shall not at any time be under
any duty or responsibility to any holder of Notes to determine the Additional Interest,
or with respect to the nature, extent or calculation of the amount of
Additional Interest when made, or with respect to the method employed in such
calculation of the Additional Interest.

ARTICLE 5

NOTEHOLDERS’ LISTS AND REPORTS BY THE ISSUER AND THE TRUSTEE

Section 5.01.  Noteholders’ Lists.  The Issuer covenants and agrees that it will
furnish or cause to be furnished to the Trustee, semi-annually, not more than
fifteen (15) calendar days after each January 1 and July 1 in each year
beginning with January 1, 2007, and at such other times as the Trustee may
reasonably request in writing, within thirty (30) calendar days after receipt
by the Issuer of any such request (or such lesser time as the Trustee may
reasonably

 27
 

 

request in
order to enable it to timely provide any notice to be provided by it
hereunder), a list in such form as the Trustee may reasonably require of the
names and addresses of the holders of Notes as of a date not more than fifteen
(15) calendar days (or such other date as the Trustee may reasonably request in
order to so provide any such notices) prior to the time such information is
furnished, except that no such list need be furnished by the Issuer to the
Trustee so long as the Trustee is acting as the sole Note Registrar.

Section 5.02.  Preservation and Disclosure of Lists.

(a)           The Trustee shall
preserve, in as current a form as is reasonably practicable, all information as
to the names and addresses of the holders of Notes contained in the most recent
list furnished to it as provided in Section 5.01 or maintained by the Trustee
in its capacity as Note Registrar or co-registrar in respect of the Notes, if
so acting.  The Trustee may destroy any
list furnished to it as provided in Section 5.01 upon receipt of a new list so
furnished.

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

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

Section 5.03.  Reports by Trustee.  (a) 
Within sixty (60) calendar days after May 15 of each year
commencing with the year 2007, the Trustee shall transmit to holders of Notes
such reports dated as of May 15 of the year in which such reports are made
concerning the Trustee and its actions under this Indenture as may be required
pursuant to Section 313(a) of the Trust Indenture Act at the times and in the
manner provided pursuant thereto.  In the
event that no events have occurred under the applicable sections of the Trust
Indenture Act the Trustee shall be under no duty or obligation to provide such
reports.

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

Section 5.04.  Reports by Issuer.  The Issuer will file with the Trustee within
15 days after the Issuer is required to file the same with the Commission,
copies of the annual reports and of the information, documents and other
reports (or copies of such portions of any of the foregoing as the Commission
may prescribe) which the Issuer is required to file with the Commission
pursuant to Section 13 or Section 15(d) of the Exchange Act. If the Issuer is
not required to file information, documents or reports pursuant to either of
those sections, then it will file with the Trustee and the Commission such
reports as may be prescribed by the Commission at such time.  Delivery of such reports, information and
documents to the Trustee is for informational purposes only and the Trustee’s
receipt of such shall not constitute constructive

 28
 

 

notice of any
information contained therein or determinable from information contained
therein, including the Issuer’s compliance with any of its covenants hereunder
(as to which the Trustee is entitled to rely exclusively on an Officers’
Certificate).

ARTICLE 6

REMEDIES OF THE TRUSTEE AND NOTEHOLDERS ON AN EVENT OF DEFAULT

Section 6.01.  Events of Default.  “Event of Default,” wherever used herein,
means any one of the following events (whatever the reason for such Event of
Default and whether it shall be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body):

(a)           default in the
payment of any principal amount or any redemption price or Change in Control
Purchase Price due with respect to the Notes when the same shall be due and
payable, whether at maturity, upon redemption or repurchase, by acceleration or
otherwise; or

(b)           default in the
payment of interest (including Additional Interest, if any) under the Notes as
and when the same shall be due and payable, and continuance of such default for
a period of thirty (30) calendar days; or

(c)           default in the
delivery when due of the amounts owing upon conversion, whether due in cash or
shares of the Issuer’s Common Stock, on the terms set forth herein and in the
Notes, upon exercise of a holder’s conversion right in accordance with Article
13; or

(d)           failure by the
Issuer to provide an Issuer Repurchase Notice after the occurrence of a Change
in Control within the time period required by Section 3.05(b); or

(e)           failure on the part
of the Issuer to comply with any other term, covenant or agreement in the Notes
or in this Indenture (other than a covenant or agreement a default in whose
performance or whose breach is elsewhere in this Section 6.01 specifically
dealt with) and such failure continues for a period of thirty (30) calendar
days after the date on which written notice of such failure, requiring the
Issuer to remedy the same, shall have been given to the Issuer by the Trustee,
or to the Issuer and a Responsible Officer of the Trustee by the holders of not
less than twenty-five percent (25%) in aggregate principal amount of the Notes
at the time outstanding; or

(f)            default in the
payment of principal when due, or resulting in acceleration of, other
indebtedness of the Issuer or any Significant Subsidiary of the Issuer for
borrowed money where the aggregate principal amount with respect to which the
default or acceleration has occurred exceeds $50.0 million and such
indebtedness has not been discharged, or such default in payment or
acceleration has not been cured or rescinded, prior to written notice of such
failure to the Issuer by the Trustee or to the Issuer and the Trustee by
holders of not less than ten percent (10%) in aggregate principal amount of the
Notes outstanding; or

(g)           failure by the
Issuer or any of its Subsidiaries to pay final judgments entered by a court or
courts of competent jurisdiction aggregating in excess of $50.0 million, which

 29
 

 

judgments are
not paid, discharged or stayed for a period of thirty (30) calendar days after
such judgments become final and non-appealable; or

(h)           the Issuer or any
Significant Subsidiary of the Issuer pursuant to or under or within meaning of
any Bankruptcy Law:

(i)            commences a voluntary case or
proceeding seeking liquidation, reorganization or other relief with respect to
it or its debts or seeking the appointment of a trustee, receiver, liquidator,
custodian or other similar official of it or any substantial part of its
property; or

(ii)           consents to any such relief or to the
appointment of or taking possession by any such official in an involuntary case
or other proceeding commenced against it; or

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

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

(i)            an involuntary case
or other proceeding shall be commenced against the Issuer or any Significant
Subsidiary of the Issuer seeking liquidation, reorganization or other relief
with respect to it or its debts under any bankruptcy, insolvency or other
similar law now or hereafter in effect or seeking the appointment of a trustee,
receiver, liquidator, custodian or other similar official of it or any
substantial part of its property, and such involuntary case or other proceeding
shall remain undismissed and unstayed for a period of sixty (60) calendar days;
or

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

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

(ii)           appoints a trustee, receiver,
liquidator, custodian or other similar official of the Issuer or any
Significant Subsidiary of the Issuer or any substantial part of their
respective properties; or

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

and, in each case in this clause (j), the order or
decree remains unstayed and in effect for sixty (60) calendar days.

If an Event of Default
(other than an Event of Default specified in Section 6.01(h), 6.01(i) and
6.01(j)) with respect to the Issuer) shall occur and be continuing, unless the
principal of all of the Notes shall have already become due and payable, either
the Trustee or the holders of at least twenty-five percent (25%) in aggregate
principal amount of the Notes then outstanding, by notice in writing to the
Issuer (and to the Trustee if given by Noteholders), may declare the principal
of, and interest (including Additional Interest, if any) accrued and unpaid on,
all the

 30
 

 

Notes to be immediately due and payable, and upon any
such declaration the same shall be immediately due and payable.

If an Event of Default specified in Section 6.01(h),
6.01(i) or 6.01(j) occurs with respect to the Issuer, the principal of, and
interest (including Additional Interest, if any) accrued and unpaid on, all the
Notes shall be immediately and automatically due and payable without necessity
of further action.

If, at any time after the principal of and interest on
the Notes shall have been so declared due and payable, and before any judgment
or decree for the payment of the monies due shall have been obtained or entered
as hereinafter provided, holders of a majority in aggregate principal amount of
the Notes then outstanding on behalf of the holders of all of the Notes then
outstanding, by written notice to the Issuer and to the Trustee, may waive all
defaults or Events of Default and rescind and annul such declaration and its
consequences subject to Section 6.07 if: 
(a) such rescission would not conflict with any judgment or decree of a
court of competent jurisdiction; (b) interest on overdue installments of
interest (including Additional Interest, if any) (to the extent that payment of
such interest is lawful) and on overdue principal, which has become due
otherwise than by such declaration of acceleration, has been paid; (c) the
Issuer has paid the Trustee its reasonable compensation and reimbursed the
Trustee for its expenses, disbursements and advances pursuant to Section 7.06;
and (d) all Events of Default, other than the nonpayment of the principal amount
and any accrued and unpaid interest that has become due solely because of such
acceleration, have been cured or waived. 
No such rescission and annulment shall extend to or shall affect any
subsequent default or Event of Default, or shall impair any right consequent
thereon.  The Issuer shall notify in
writing a Responsible Officer of the Trustee, promptly upon becoming aware
thereof, of any Event of Default, as provided in Section 4.09.

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

Section 6.02.  Payments of Notes on Default; Suit Therefor.  The Issuer covenants that in the case of an
Event of Default pursuant to Section 6.01(a) or 6.01(b), upon demand of the
Trustee, the Issuer will pay to the Trustee, for the benefit of the holders of
the Notes, (i) the whole amount that then shall be due and payable on all such
Notes for principal or interest, as the case may be, with interest upon the
overdue principal and premium, if any, and (to the extent that payment of such
interest is enforceable under applicable law) upon the overdue installments of
accrued and unpaid interest at the rate borne by the Notes, plus 1%, from the
required payment date and, (ii) in addition thereto, any amounts due the
Trustee under Section 7.06.  Until such
demand by the Trustee, the Issuer may pay the principal of and interest on the
Notes to the registered holders, whether or not the Notes are overdue.

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

In case there shall be pending proceedings for the
bankruptcy or for the reorganization of the Issuer or any other obligor on the
Notes under any Bankruptcy Law, or any other applicable law, or in case a
receiver, assignee or trustee in bankruptcy or reorganization, liquidator,
sequestrator or similar official shall have been appointed for or taken
possession of the Issuer or such other obligor, the property of the Issuer or
such other obligor, or in the case of any other judicial proceedings relative
to the Issuer or such other obligor upon the Notes, or to the creditors or
property of the Issuer or such other obligor, the Trustee, irrespective of
whether the principal of the Notes shall then be due and payable as therein
expressed or by declaration or otherwise and irrespective of whether the
Trustee shall have made any demand pursuant to the provisions of this Section
6.02, shall be entitled and empowered, by intervention in such proceedings or
otherwise, to file and prove a claim or claims for the whole amount of
principal and accrued and unpaid interest in respect of the Notes, and, in case
of any judicial proceedings, to file such proofs of claim and other papers or
documents as may be necessary or advisable in order to have the claims of the
Trustee and of the Noteholders allowed in such judicial proceedings relative to
the Issuer or any other obligor on the Notes, its or their creditors, or its or
their property, and to collect and receive any monies or other property payable
or deliverable on any such claims, and to distribute the same after the
deduction of any amounts due the Trustee under Section 7.06, and to take any
other action with respect to such claims, including participating as a member
of any official committee of creditors, as it reasonably deems necessary or
advisable, unless prohibited by law or applicable regulations, and any
receiver, assignee or trustee in bankruptcy or reorganization, liquidator,
custodian or similar official is hereby authorized by each of the Noteholders
to make such payments to the Trustee, and, in the event that the Trustee shall
consent to the making of such payments directly to the Noteholders, to pay to
the Trustee any amount due it for reasonable compensation, expenses, advances
and disbursements, including counsel fees and expenses incurred by it up to the
date of such distribution.  To the extent
that such payment of reasonable compensation, expenses, advances and
disbursements out of the estate in any such proceedings shall be denied for any
reason, payment of the same shall be secured by a lien on, and shall be paid
out of, any and all distributions, dividends, monies, securities and other
property which the holders of the Notes may be entitled to receive in such
proceedings, whether in liquidation or under any plan of reorganization or
arrangement or otherwise.

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

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

Section 6.03.  Application of Monies Collected by Trustee.  Any monies collected by the Trustee pursuant
to this Article 6, shall be applied, in the following order, at the date or
dates fixed by the Trustee for the distribution of such monies, upon
presentation of the several Notes, and stamping thereon the payment, if only
partially paid, and upon surrender thereof, if fully paid:

FIRST:  To the payment of all amounts due the Trustee
under Section 7.06;

SECOND:  In case the principal of the outstanding
Notes shall not have become due and be unpaid, to the payment of accrued and
unpaid interest, if any, on the Notes in default in the order of the maturity
of the installments of such interest, with interest (to the extent that such
interest has been collected by the Trustee) as provided in Section 6.02 upon
the overdue installments of interest at the annual rate borne by the Notes plus
1%, such payments to be made ratably to the Persons entitled thereto;

THIRD:  In case the principal of the outstanding
Notes shall have become due, by declaration or otherwise, and be unpaid to the
payment of the whole amount then owing and unpaid upon the Notes for principal
and interest, with interest on the overdue principal and (to the extent that
such interest has been collected by the Trustee) upon overdue installments of
accrued and unpaid interest, as provided in Section 6.02, and in case such
monies shall be insufficient to pay in full the whole amounts so due and unpaid
upon the Notes, then to the payment of such principal and interest without
preference or priority of principal over interest, or of interest over
principal, or of any installment of interest over any other installment of
interest, or of any Note over any other Note, ratably to the aggregate of such
principal and accrued and unpaid interest; and

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

Section 6.04.  Proceedings by Noteholder.  No holder of any Note shall have any right by
virtue of or by reference to any provision of this Indenture to institute any
suit, action or proceeding in equity or at law upon or under or with respect to
this Indenture, or for the appointment of a receiver, trustee, liquidator,
custodian or other similar official, or for any other remedy hereunder, except
in the case of a default in the payment of principal of, or interest on, the
Notes, unless (a) such holder previously shall have given to the Trustee
written notice of an Event of Default and of the continuance thereof, as hereinbefore
provided, (b) the holders of at least twenty-five percent (25%) in aggregate
principal amount of the Notes then outstanding shall have made written request
upon the Trustee to institute such action, suit or proceeding in its own name
as Trustee hereunder and shall have offered to the Trustee such reasonable
security or indemnity as it may require against the costs, liabilities or
expenses to be incurred therein or thereby, (c) the Trustee for sixty (60)
calendar days after its receipt of such notice, request and offer of indemnity,
shall have neglected or refused to institute any such action, suit or
proceeding

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and (d) no
direction inconsistent with such written request shall have been given to the
Trustee pursuant to Section 6.07; it being understood and intended, and being
expressly covenanted by the taker and holder of every Note with every other
taker and holder and the Trustee, that no one or more holders of Notes shall
have any right in any manner whatever by virtue of or by reference to any
provision of this Indenture to affect, disturb or prejudice the rights of any
other holder of Notes, or to obtain or seek to obtain priority over or
preference to any other such holder, or to enforce any right under this
Indenture, except in the manner herein provided and for the equal, ratable and
common benefit of all holders of Notes (except as otherwise provided herein).  For the protection and enforcement of this
Section 6.04, each and every Noteholder and the Trustee shall be entitled to
such relief as can be given either at law or in equity.

Notwithstanding any other provision of this Indenture
and any provision of any Note, the right of any holder of any Note to receive
payment of the principal of (including the redemption price or Change in
Control Purchase Price upon redemption or repurchase pursuant to Article 3) and
accrued interest on such Note, on or after the respective due dates expressed
in such Note or in the event of redemption or repurchase, or to institute suit
for the enforcement of any such payment on or after such respective dates
against the Issuer shall not be impaired or affected without the consent of
such holder.

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

Section 6.05.  Proceedings by Trustee.  In case of an Event of Default, the Trustee
may, in its discretion, proceed to protect and enforce the rights vested in it
by this Indenture by such appropriate judicial proceedings as are necessary to
protect and enforce any of such rights, either by suit in equity or by action
at law or by proceeding in bankruptcy or otherwise, whether for the specific enforcement
of any covenant or agreement contained in this Indenture or in aid of the
exercise of any power granted in this Indenture, or to enforce any other legal
or equitable right vested in the Trustee by this Indenture or by law.

Section 6.06.  Remedies Cumulative and Continuing.  All powers and remedies given by this Article
6 to the Trustee or to the Noteholders shall, to the extent permitted by law,
be deemed cumulative and not exclusive of any thereof or of any other powers
and remedies available to the Trustee or the holders of the Notes, by judicial
proceedings or otherwise, to enforce the performance or observance of the
covenants and agreements contained in this Indenture, and no delay or omission
of the Trustee or of any holder of any of the Notes to exercise any right or
power accruing upon any default or Event of Default occurring and continuing as
aforesaid shall impair any such right or power, or shall be construed to be a
waiver of any such default or any acquiescence therein, and, subject to the
provisions of Section 6.04, every power and remedy given by this Article 6 or
by law to the Trustee or to the Noteholders may be exercised from time to time,
and as often as shall be deemed expedient, by the Trustee or by the
Noteholders.

Section 6.07.  Direction of Proceedings and Waiver of Defaults by
Majority of Noteholders.  The
holders of not less than a majority in aggregate principal amount of the Notes 

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at the time
outstanding shall have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee or exercising
any trust or power conferred on the Trustee; provided that (a) such direction
shall not be in conflict with any rule of law or with this Indenture, (b) the
Trustee may take any other action which is not inconsistent with such
direction, (c) the Trustee may decline to take any action that would benefit
some Noteholder to the detriment of other Noteholders and (d) the Trustee may
decline to take any action that would involve the Trustee in personal
liability.

The holders of a majority in aggregate principal
amount of the Notes at the time outstanding may, on behalf of the holders of
all of the Notes, waive any past default or Event of Default hereunder and its
consequences except (i) a default in the payment of the principal of, or
interest (including Additional Interest, if any) on, the Notes, (ii) a failure
by the Issuer to convert any Notes as required by this Indenture, (iii) a
default in the payment of the redemption price on the Redemption Date pursuant
to Article 3, (iv) a default in the payment of the Change in Control Purchase
Price on the Change in Control Repurchase Date pursuant to Article 3 or (v) a
default in respect of a covenant or provisions hereof which under Article 9 cannot
be modified or amended without the consent of the holders of all Notes then
outstanding or each Note affected thereby.

Upon any such waiver, the Issuer, the Trustee and the
holders of the Notes shall be restored to their former positions and rights hereunder;
but no such waiver shall extend to any subsequent or other default or Event of
Default or impair any right consequent thereon. 
Whenever any default or Event of Default hereunder shall have been
waived as permitted by this Section 6.07, said default or Event of Default
shall for all purposes of the Notes and this Indenture be deemed to have been
cured and to be not continuing; but no such waiver shall extend to any
subsequent or other default or Event of Default or impair any right consequent
thereon.

Section 6.08.  Notice of Defaults.  The Trustee shall, within ninety (90)
calendar days after a Responsible Officer of the Trustee has knowledge of the
occurrence of a default, mail to all Noteholders, as the names and addresses of
such holders appear upon the Note Register, notice of all defaults known to a
Responsible Officer, unless such defaults shall have been cured or waived
before the giving of such notice; provided
that except in the case of default in the payment of the principal of, or
interest (including Additional Interest, if any) on, any of the Notes, the
Trustee shall be protected in withholding such notice if and so long as a trust
committee of directors and/or Responsible Officers of the Trustee in good faith
determines that the withholding of such notice is in the interest of the
Noteholders.

Section 6.09.  Undertaking to Pay Costs.  All parties to this Indenture agree, and each
holder of any Note by its acceptance thereof shall be deemed to have agreed,
that any court may, in its discretion, require, in any suit for the enforcement
of any right or remedy under this Indenture, or in any suit against the Trustee
for any action taken or omitted by it as Trustee, the filing by any party
litigant in such suit of an undertaking to pay the costs of such suit and that
such court may in its discretion assess reasonable costs, including reasonable
attorneys’ fees and expenses, against any party litigant in such suit, having
due regard to the merits and good faith of the claims or defenses made by such
party litigant; provided that the
provisions of this Section 6.09 (to the extent permitted by law) shall not
apply to any suit instituted by the Trustee, to any 

 35
 

 

suit
instituted by any Noteholder, or group of Noteholders, holding in the aggregate
more than ten percent in principal amount of the Notes at the time outstanding
determined in accordance with Section 8.04, or to any suit instituted by any
Noteholder for the enforcement of the payment of the principal of, or interest
on, any Note on or after the due date expressed in such Note or to any suit for
the enforcement of the right to convert any Note in accordance with the
provisions of Article 13.

ARTICLE 7

THE TRUSTEE

Section 7.01.  Duties and Responsibilities of Trustee.  The Trustee, prior to the occurrence of an
Event of Default and after the curing or waiver of all Events of Default which
may have occurred, undertakes to perform such duties and only such duties as
are specifically set forth in this Indenture. 
In case an Event of Default has occurred (which has not been cured or
waived), the Trustee shall exercise such of the rights and powers vested in it
by this Indenture, and use the same degree of care and skill in their exercise,
as a prudent person would exercise or use under the circumstances in the
conduct of its own affairs.

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

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

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

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

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

(c)           the
Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the written direction of the
holders of not less than a majority in principal amount of the Notes at the
time outstanding determined as provided in Section 8.04 relating to the time,
method and place of conducting any proceeding for any remedy 

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available to
the Trustee, or exercising any trust or power conferred upon the Trustee, under
this Indenture;

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

(e)           the
Trustee shall not be liable in respect of any payment (as to the correctness of
amount, entitlement to receive or any other matters relating to payment) or
notice effected by the Issuer or any Paying Agent (other than the Trustee) or
any records maintained by any co-registrar (other than the Trustee) with
respect to the Notes;

(f)            if
any party fails to deliver a notice relating to an event the fact of which,
pursuant to this Indenture, requires notice to be sent to the Trustee, the
Trustee may conclusively rely on its failure to receive such notice as reason
to act as if no such event occurred unless a Responsible Officer of the Trustee
has actual knowledge thereof or unless the Trustee has otherwise received
written notice thereof; and

(g)           the
Trustee shall not be deemed to have knowledge of any Event of Default hereunder
unless a Responsible Officer of the Trustee has actual knowledge thereof or
unless the Trustee shall have been notified in writing of such Event of Default
by the Issuer or a holder of Notes.

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

Section 7.02.  Reliance on Documents, Opinions, etc.  Except as otherwise provided in Section 7.01:

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

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

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

 37
 

 

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

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

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

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

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

(i)            the
Trustee may request that the Issuer 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; and

(j)            any
permissive right or authority granted to the Trustee shall not be construed as
a mandatory duty.

Section 7.03.  No Responsibility for Recitals, etc.  The recitals contained herein and in the
Notes (except in the Trustee’s certificate of authentication) shall be taken as
the statements of the Issuer, and the Trustee assumes no responsibility for the
correctness of the same.  The Trustee
makes no representations as to the validity or sufficiency of this Indenture or
of the Notes.  The Trustee shall not be
accountable for the use or application by the Issuer of any Notes or the
proceeds of any Notes authenticated and delivered by the Trustee in conformity
with the provisions of this Indenture.

Section 7.04.  Trustee, Paying Agents, Conversion Agents or Note
Registrar May Own Notes.  The
Trustee, any Paying Agent, the Conversion Agent or Note Registrar, in its
individual or any other capacity, may become the owner or pledgee of Notes with
the same rights it would have if it were not Trustee, Paying Agent, Conversion
Agent or Note Registrar.

 38
 

 

Section 7.05.  Monies to be Held in Trust.  Subject to the provisions of Section 11.02,
all monies received by the Trustee shall, until used or applied as herein
provided, be held in trust for the purposes for which they were received.  Money held by the Trustee in trust hereunder
need not be segregated from other funds except to the extent required by
law.  Except as otherwise provided
herein, the Trustee shall be under no liability for interest on any money
received by it hereunder except as may be agreed in writing from time to time
by the Issuer and the Trustee.

Section 7.06.  Compensation and Expenses of Trustee.  The Issuer covenants and agrees to pay to the
Trustee from time to time, and the Trustee shall be entitled to, such
compensation for all services rendered by it hereunder in any capacity (which
shall not be limited by any provision of law in regard to the compensation of a
trustee of an express trust) as mutually agreed to from time to time in writing
between the Issuer and the Trustee, and the Issuer will pay or reimburse the
Trustee upon its request for all reasonable expenses, disbursements and
advances reasonably incurred or made by the Trustee in accordance with any of
the provisions of this Indenture (including the reasonable compensation and the
reasonable expenses and disbursements of its counsel and of all Persons not
regularly in its employ) except any such expense, disbursement or advance as
may arise from its negligence, willful misconduct, recklessness or bad
faith.  The Issuer also covenants to
indemnify the Trustee and any predecessor Trustee (or any officer, director or
employee of the Trustee), in any capacity under this Indenture and any
authenticating agent for, and to hold them harmless against, any and all loss,
liability, damage, claim or reasonable expense including taxes (other than
taxes based on the income of the Trustee) incurred without negligence, willful
misconduct, recklessness or bad faith on the part of the Trustee or such
officers, directors, employees or authenticating agent, as the case may be, and
arising out of or in connection with the acceptance or administration of this
trust or in any other capacity hereunder, including the reasonable costs and
expenses of defending themselves against any claim (whether asserted by the
Issuer, any holder or any other Person) of liability in the premises.  The obligations of the Issuer under this
Section 7.06 to compensate or indemnify the Trustee and to pay or reimburse the
Trustee for reasonable expenses, disbursements and advances shall be secured by
a lien prior to that of the Notes upon all property and funds held or collected
by the Trustee as such, except funds held in trust for the benefit of the
holders of particular Notes.  The
obligation of the Issuer under this Section shall survive the satisfaction and
discharge of this Indenture.

When the Trustee and its agents and any authenticating
agent incur expenses or render services after an Event of Default specified in
Section 6.01(h), 6.01(i) or 6.01(j) with respect to the Issuer occurs, the
expenses and the compensation for the services are intended to constitute
reasonable expenses of administration under any bankruptcy, insolvency or
similar laws.

Section 7.07.  Officers’ Certificate as Evidence.  Except as otherwise provided in Section 7.01,
whenever in the administration of the provisions of this Indenture the Trustee
shall deem it necessary or desirable that a matter be proved or established
prior to taking or omitting any action hereunder, such matter (unless other
evidence in respect thereof be herein specifically prescribed) may, in the
absence of gross negligence, bad faith, recklessness or willful misconduct on
the part of the Trustee, be deemed to be conclusively proved and established by
an Officers’ Certificate delivered to the Trustee.

 39
 

 

Section 7.08.  Conflicting Interests of Trustee.  If the Trustee has or shall acquire a
conflicting interest within the meaning of the Trust Indenture Act, the Trustee
shall either eliminate such interest or resign, to the extent and in the manner
provided by, and subject to the provisions of, the Trust Indenture Act and this
Indenture.

Section 7.09.  Eligibility of Trustee.  There shall at all times be a Trustee
hereunder which shall be a Person that is eligible pursuant to the Trust
Indenture Act to act as such and has a combined capital and surplus of at least
$50.0 million (or if such Person is a member of a bank holding company system,
its bank holding company shall have a combined capital and surplus of at least
$50.0 million).  If such Person publishes
reports of condition at least annually, pursuant to law or to the requirements
of any supervising or examining authority, then for the purposes of this
Section the combined capital and surplus of such Person shall be deemed to be
its combined capital and surplus as set forth in its most recent report of
condition so published.  If at any time
the Trustee shall cease to be eligible in accordance with the provisions of
this Section 7.09, it shall resign immediately in the manner and with the
effect hereinafter specified in this Article.

Section 7.10.  Resignation or Removal of Trustee.

(a)           Subject
to Section 7.10(c), the Trustee may at any time resign by giving written notice
of such resignation to the Issuer and to the holders of Notes.  Upon receiving such notice of resignation,
the Issuer shall promptly appoint a successor trustee by written instrument, in
duplicate, executed by order of the Board of Directors, one copy of which
instrument shall be delivered to the resigning Trustee and one copy to the
successor trustee.  If no successor
trustee shall have been so appointed and have accepted appointment sixty (60)
calendar days after the mailing of such notice of resignation to the
Noteholders, the resigning Trustee may, upon ten Business Days’ notice to the
Issuer and the Noteholders, petition, at the expense of the Issuer, any court
of competent jurisdiction for the appointment of a successor trustee.  Such court may thereupon, after such notice,
if any, as it may deem proper and prescribe, appoint a successor trustee.

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

(i)            the Trustee shall fail
to comply with Section 7.08 after written request therefor by the Issuer or by
any Noteholder who has been a bona fide holder of a Note or Notes for at least
six months; or

(ii)           the Trustee shall cease
to be eligible in accordance with the provisions of Section 7.09 and shall fail
to resign after written request therefor by the Issuer or by any such
Noteholder; or

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

then, in any such case, the Issuer may remove the
Trustee and appoint a successor trustee by written instrument, in duplicate,
executed by order of the Board of Directors, one copy of which instrument shall
be delivered to the Trustee so removed and one copy to the successor trustee,
or, 

 40
 

 

subject to the provisions of Section 6.09, any
Noteholder who has been a bona fide holder of a Note or Notes for at least six
months may, on behalf of itself and all others similarly situated, petition any
court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor trustee.  Such
court may thereupon, after such notice, if any, as it may deem proper and
prescribe, remove the Trustee and appoint a successor trustee.

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

(d)           Notwithstanding
the replacement of the Trustee pursuant to this Section, the Issuer’s
obligations under Section 7.06 shall continue for the benefit of the retiring
Trustee.

Section 7.11.  Acceptance by Successor Trustee.  Any successor trustee appointed as provided
in Section 7.10 shall execute, acknowledge and deliver to the Issuer and to its
predecessor trustee an instrument accepting such appointment hereunder, and
thereupon the resignation or removal of the predecessor trustee shall become
effective and such successor trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, duties and
obligations of its predecessor hereunder, with like effect as if originally
named as trustee herein; but, nevertheless, on the written request of the
Issuer or of the successor trustee, the trustee ceasing to act shall, upon
payment of any amount then due it pursuant to the provisions of Section 7.06,
execute and deliver an instrument transferring to such successor trustee all
the rights and powers of the trustee so ceasing to act.  Upon request of any such successor trustee,
the Issuer shall execute any and all instruments in writing for more fully and
certainly vesting in and confirming to such successor trustee all such rights
and powers.  Any trustee ceasing to act
shall, nevertheless, retain a lien upon all property and funds held or
collected by such trustee as such, except for funds held in trust for the
benefit of holders of particular Notes, to secure any amounts then due it
pursuant to the provisions of Section 7.06.

No successor trustee shall accept appointment as
provided in this Section 7.11 unless, at the time of such acceptance, such successor
trustee shall be qualified under the provisions of Section 7.08 and be eligible
under the provisions of Section 7.09.

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

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

 41
 

 

trust business
of the Trustee, such corporation shall be qualified under the provisions of
Section 7.08 and eligible under the provisions of Section 7.09.

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

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

ARTICLE 8

THE NOTEHOLDERS

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

Section
8.02.  Proof
of Execution by Noteholders. 
Subject to the provisions of Sections 7.01 and 7.02, proof of the
execution of any instrument by a Noteholder or its agent or proxy shall be
sufficient if made in accordance with such reasonable rules and regulations as
may be prescribed by the Trustee or in such manner as shall be satisfactory to
the Trustee.  The holding of Notes shall
be proved by the registry of such Notes or by a certificate of the Note
Registrar.

Section
8.03.  Absolute
Owners.  The Issuer, the
Trustee, any Paying Agent, any Conversion Agent and any Note Registrar may deem
the Person in whose name such Note shall be registered upon the Note Register
to be, and may treat it as, the absolute owner of such Note (whether or not
such Note shall be overdue and notwithstanding any notation of ownership or 

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other writing thereon made by any Person
other than the Issuer or any Note Registrar) for the purpose of receiving
payment of or on account of the principal of, and interest on, such Note, for
conversion of such Note and for all other purposes; and neither the Issuer nor
the Trustee nor any Paying Agent nor any Conversion Agent nor any Note
Registrar shall be affected by any notice to the contrary.  All such payments so made to any holder for
the time being, or upon its order, shall be valid, and, to the extent of the
sum or sums so paid, effectual to satisfy and discharge the liability for
monies payable upon any such Note.

Section
8.04.  Issuer-Owned
Notes Disregarded.  In
determining whether the holders of the requisite aggregate principal amount of
Notes have concurred in any direction, consent, waiver or other action under
this Indenture, Notes which are owned by the Issuer or any other obligor on the
Notes or any Affiliate of the Issuer or any other obligor on the Notes shall be
disregarded and deemed not to be outstanding for the purpose of any such
determination; provided that for
the purposes of determining whether the Trustee shall be protected in relying
on any such direction, consent, waiver or other action, only Notes which a
Responsible Officer knows are so owned shall be so disregarded.  Notes so owned which have been pledged in
good faith may be regarded as outstanding for the purposes of this Section 8.04
if the pledgee shall establish to the satisfaction of the Trustee the pledgee’s
right to vote such Notes and that the pledgee is not the Issuer, any other
obligor on the Notes or any Affiliate of the Issuer or any such other
obligor.  In the case of a dispute as to
such right, any decision by the Trustee taken upon the advice of counsel shall
be full protection to the Trustee.  Upon
request of the Trustee, the Issuer shall furnish to the Trustee promptly an
Officers’ Certificate listing and identifying all Notes, if any, known by the
Issuer to be owned or held by or for the account of any of the above described
Persons, and, subject to Section 7.01, the Trustee shall be entitled to accept
such Officers’ Certificate as conclusive evidence of the facts therein set
forth and of the fact that all Notes not listed therein are outstanding for the
purpose of any such determination.

Section
8.05.  Revocation
of Consents; Future Holders Bound. 
At any time prior to (but not after) the evidencing to the Trustee, as
provided in Section 8.01, of the taking of any action by the holders of the
percentage in aggregate principal amount of the Notes specified in this
Indenture in connection with such action, any holder of a Note which is shown
by the evidence to be included in the Notes the holders of which have consented
to such action may, by filing written notice with the Trustee at its Corporate
Trust Office and upon proof of holding as provided in Section 8.02, revoke such
action so far as concerns such Note. 
Except as aforesaid, any such action taken by the holder of any Note
shall be conclusive and binding upon such holder and upon all future holders
and owners of such Note and of any Notes issued in exchange or substitution
therefor, irrespective of whether any notation in regard thereto is made upon
such Note or any Note issued in exchange or substitution therefor.

ARTICLE 9

SUPPLEMENTAL INDENTURES

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

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(a)           to evidence a successor
to the Issuer and the assumption by that successor of the obligations of the
Issuer under this Indenture and the Notes;

(b)           to provide for
conversion right of holders of the Notes if any reclassification or change of
shares of Common Stock or any consolidation, merger or sale of all or
substantially all of the property or assets of the Issuer occurs;

(c)           to add to the covenants
of the Issuer for the benefit of the holders of the Notes or to surrender any
right or power conferred upon the Issuer;

(d)           to secure the
obligations of the Issuer in respect of the Notes;

(e)           to add guarantees;

(f)            to evidence and
provide the acceptance of the appointment of a successor Trustee under this
Indenture;

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

(h)           to cure any ambiguity,
omission, defect or inconsistency in this Indenture or make any other provision
with respect to matters or questions arising under this Indenture which the
Issuer may deem necessary or desirable and which shall not be inconsistent with
provisions of this Indenture; provided that such modification or amendment does
not, in the good faith opinion of the Board of Directors, adversely affect the
interests of the holders of the Notes in any material respect;

(i)            to add or modify any
provision with respect to matters or questions arising under this Indenture
which the Issuer and the Trustee may deem necessary or desirable and which will
not adversely affect the interests of the holders of the Notes in any material
respect; or

(j)            to modify any
provision of this Indenture to conform that provision to the description
thereof set forth in the Offering Memorandum.

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

Any supplemental
indenture authorized by the provisions of this Section 9.01 may be executed by
the Issuer and the Trustee without the consent of the holders of any of the Notes
at the time outstanding, notwithstanding any of the provisions of Section 9.02.

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Section 9.02.  Supplemental Indenture
With Consent of Noteholders. 
With the consent (evidenced as provided in Article 8) of the holders of
not less than a majority in aggregate principal amount of the Notes at the time
outstanding, the Issuer, when authorized by the resolutions of the Board of
Directors, and the Trustee may, from time to time and at any time, enter into
an indenture or indentures supplemental hereto for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Indenture or any supplemental indenture or modifying in any manner the
rights of the holders of the Notes; provided that
no such supplemental indenture shall, without the consent of the holder of each
Note so affected:

(a)           impair or adversely
affect the manner of calculation or rate of accrual of interest on the Notes or
change the time of payment thereof;

(b)           make the Note payable
in money or securities other than that stated in the note;

(c)           change the Stated
Maturity of the Notes;

(d)           reduce the principal
amount of, or the redemption price or Change in Control Purchase Price
specified in Article 3 hereof with respect to, the Notes;

(e)           make any change that
impairs or adversely affects the conversion rights of the holders of the Notes;

(f)            make any change that
impairs or adversely affects the right to require the Issuer to repurchase the
Notes;

(g)           impair the right to
institute suit for the enforcement of any payment with respect to the Notes or
with respect to conversion of the Notes;

(h)           change the obligation
of the Issuer to redeem any Notes called for redemption on a Redemption Date in
a manner adverse to the holders;

(i)            change the obligation
of the Issuer to maintain an office or agency in New York City pursuant to
Section 4.02;

(j)            make the Notes
subordinate in right of payment to any other indebtedness;

(k)           reduce the percentage
in aggregate principal amount of outstanding Notes required to modify or amend
this Indenture or to waive compliance by the Issuer with the provisions of the
Indenture; or

(l)            modify Section 6.07 or
this Section 9.02.

Upon the written request
of the Issuer, accompanied by a copy of the resolutions of the Board of Directors
certified by the Issuer’s Secretary or Assistant Secretary authorizing the
execution of any such supplemental indenture, and upon the filing with the
Trustee of evidence of the consent of Noteholders as aforesaid, the Trustee
shall join with the Issuer in the execution of such supplemental indenture
unless such supplemental indenture affects the Trustee’s own 

 45
 

 

rights, duties or
immunities under this Indenture or otherwise, in which case the Trustee may in
its discretion, but shall not be obligated to, enter into such supplemental
indenture.

It shall not be necessary
for the consent of the Noteholders under this Section 9.02 to approve the
particular form of any proposed supplemental indenture, but it shall be
sufficient if such consent shall approve the substance thereof.

Section
9.03.  Effect
of Supplemental Indenture. 
Any supplemental indenture executed pursuant to the provisions of this
Article 9 shall comply with the Trust Indenture Act, as then in effect,
provided that this Section 9.03 shall not require such supplemental indenture
or the Trustee to be qualified under the Trust Indenture Act prior to the time,
if ever, such qualification is in fact required under the terms of the Trust
Indenture Act or the Indenture has been qualified under the Trust Indenture
Act, nor shall it constitute any admission or acknowledgment by any party to
such supplemental indenture that any such qualification is required prior to
the time, if ever, such qualification is in fact required under the terms of
the Trust Indenture Act or the Indenture has been qualified under the Trust
Indenture Act.  Upon the execution of any
supplemental indenture pursuant to the provisions of this Article 9, this
Indenture shall be and be deemed to be modified and amended in accordance therewith
and the respective rights, limitation of rights, obligations, duties and
immunities under this Indenture of the Trustee, the Issuer and the holders of
Notes shall thereafter be determined, exercised and enforced hereunder, subject
in all respects to such modifications and amendments and all the terms and
conditions of any such supplemental indenture shall be and be deemed to be part
of the terms and conditions of this Indenture for any and all purposes.

Section
9.04.  Notation
on Notes.  Notes authenticated
and delivered after the execution of any supplemental indenture pursuant to the
provisions of this Article 9 may bear a notation in form approved by the
Trustee as to any matter provided for in such supplemental indenture.  If the Issuer or the Trustee shall so
determine, new Notes so modified as to conform, in the opinion of the Trustee
and the Board of Directors, to any modification of this Indenture contained in
any such supplemental indenture may, at the Issuer’s expense, be prepared and
executed by the Issuer, authenticated by the Trustee (or an authenticating
agent duly appointed by the Trustee pursuant to Section 15.11) and delivered in
exchange for the Notes then outstanding, upon surrender of such Notes then
outstanding.

Section
9.05.  Evidence
of Compliance of Supplemental Indenture to be Furnished to Trustee.  Prior to entering into any supplemental
indenture pursuant to this Article 9, the Trustee shall be provided with an
Officers’ Certificate and an Opinion of Counsel as conclusive evidence that any
supplemental indenture executed pursuant hereto complies with the requirements
of this Article 9 and is otherwise authorized or permitted by this Indenture.

ARTICLE 10

CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

Section
10.01.  Issuer
May Consolidate on Certain Terms. 
Subject to the provisions of Section 10.02, the Issuer shall not, in a
single transaction or a series of related transactions, consolidate with, or
sell, lease or convey all or substantially all of its property and assets to,
or merge with or into, any other Person (whether or not affiliated with the
Issuer), unless: (i) the 

 46
 

 

Issuer is the continuing entity, or the
successor (if other than the Issuer) formed by or resulting from any
consolidation or merger or which shall have received the transfer of assets
shall be an entity organized and existing under the laws of the United States
of America, any state thereof or the District of Columbia and shall expressly
assume (x) the due and punctual payment of the principal of, and interest on,
all of the Notes, and the due and punctual performance and observance of all of
the covenants and conditions in the Notes and this Indenture to be performed or
satisfied by the Issuer (including, without limitations, the obligation to
convert Notes in accordance with the provisions of Article 13 hereof) by a
supplemental indenture reasonably satisfactory in form to the Trustee and (y)
all of the obligations of the Issuer under the Registration Rights Agreement by
a supplemental agreement, in each case, executed and delivered to the Trustee
by such successor; (ii) if as a result of any such consolidation, sale, lease,
conveyance or merger, the Notes become convertible into common stock or other
securities issued by a Person that is other than the Issuer or such successor
Person, such Person shall fully and unconditionally guarantee all obligations
under the Notes and this Indenture; (iii) immediately after giving effect
to the transaction described above, no Event of Default or event which, after notice
or lapse of time, or both, would become an Event of Default, has occurred and
is continuing; and (iv) the Issuer has delivered to the Trustee the Officers’
Certificate and Opinion of Counsel, if any, requested pursuant to Section
15.03.

Section 10.02.  Issuer
Successor to be Substituted. 
In case of any such consolidation, sale, lease, conveyance or merger in
which the Issuer is not the continuing entity and upon the assumption by the
successor Person, by supplemental indenture, executed and delivered to the
Trustee and reasonably satisfactory in form to the Trustee, of the due and
punctual payment of the principal of, and interest on, all of the Notes, and
the due and punctual performance and observance of all of the covenants and
conditions of this Indenture to be performed or satisfied by the Issuer, and by
supplemental agreement, executed and delivered to the Trustee and reasonably
satisfactory in form to the Trustee, of all of the obligations of the Issuer
under the Registration Rights Agreement, such successor Person shall succeed to
and be substituted for the Issuer, with the same effect as if it had been named
herein as the party of this first part, and the Issuer shall be discharged from
its obligations under the Notes, this Indenture and the Registration Rights
Agreement.  Such successor Person
thereupon may cause to be signed, and may issue either in its own name or in
the name of the Issuer any or all of the Notes, issuable hereunder that
theretofore shall not have been signed by the Issuer and delivered to the
Trustee; and, upon the order of such successor Person instead of the Issuer and
subject to all the terms, conditions and limitations in this Indenture
prescribed, the Trustee shall authenticate and shall deliver, or cause to be
authenticated and delivered, any Notes that previously shall have been signed
and delivered by the officers of the Issuer to the Trustee for authentication,
and any Notes that such successor Person thereafter shall cause to be signed
and delivered to the Trustee for that purpose. 
All the Notes so issued shall in all respects have the same legal rank
and benefit under this Indenture as the Notes theretofore or thereafter issued
in accordance with the terms of this Indenture as though all of such Notes had
been issued at the date of the execution hereof.  In the event of any such consolidation,
merger, sale, conveyance, transfer or lease, upon compliance with this Article
10 the Person named as the “Issuer” in the first paragraph of this Indenture or
any successor that shall thereafter have become such in the manner prescribed
in this Article 10 may be dissolved, wound up and liquidated at any time
thereafter and such Person shall be discharged from its liabilities as obligor
and maker of the Notes and from its obligations under this Indenture and under
the Registration Rights Agreement.

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

ARTICLE 11

SATISFACTION AND DISCHARGE OF INDENTURE

Section
11.01.  Discharge
of Indenture.  This Indenture
shall cease to be of further effect (except as to any surviving rights of
conversion, registration of transfer or exchange of Notes herein expressly
provided for and except as further provided below), and the Trustee, on demand
of and at the expense of the Issuer, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture, when (a) either:
(1) all Notes theretofore authenticated and delivered (other than (i) Notes
which have been destroyed, lost or stolen and which have been replaced or paid
as provided in Section 11.04 and (ii) Notes for whose payment money has
theretofore been deposited in trust and thereafter repaid to the Issuer as
provided in Section 11.04) have been delivered to the Trustee for cancellation;
or (2) all such Notes not theretofore delivered to the Trustee for cancellation
have become due and payable, whether upon the Stated Maturity of the Notes, a
Redemption Date or a Change in Control Repurchase Date or otherwise, or have
all been converted in accordance with the provisions of Article 13 hereof, and
the Issuer has irrevocably deposited or caused to be irrevocably deposited with
the Trustee a Paying Agent or the Conversion Agent (other than the Issuer or
any of its Affiliates), as applicable, as trust funds in trust cash and, if
applicable, shares of Common Stock in an amount sufficient to pay and discharge
the entire indebtedness on such Notes not theretofore delivered to the Trustee
for cancellation, for principal and interest to the date of such deposit (in
the case of Notes which have become due and payable) or for amounts owing upon
conversion; provided, however, that there shall not exist, on
the date of such deposit, a default or Event of Default; provided, further,
that such deposit shall not result in a breach or violation of, or constitute a
default under, this Indenture or any other agreement or instrument to which the
Issuer is a party or to which the Issuer is bound; (b) the Issuer has paid or
caused to be paid all other sums payable hereunder by the Issuer; and (c) the
Issuer has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for
relating to the satisfaction and discharge of this Indenture have been complied
with.

Notwithstanding the
satisfaction and discharge of this Indenture, the obligations of the Issuer to
the Trustee under Section 7.06 shall survive and, if money shall have been
deposited with the Trustee pursuant to subclause (2) of clause (a) of this
Section, the provisions of Sections 2.05, 2.06, 2.07, 3.05, 5.01, Article 13
and this Article 11, shall survive until the Notes have been paid in full.

Section
11.02.  Deposited
Monies to be Held in Trust by Trustee.  Subject to Section 11.04, all monies
deposited with the Trustee pursuant to Section 7.05, shall be held in trust for
the sole benefit of the Noteholders, and such monies shall be applied by the
Trustee to the payment, either directly or through any Paying Agent (including
the Issuer if acting as its own Paying Agent), to the holders of the particular
Notes for the payment or redemption of which such monies have been deposited
with the Trustee, of all sums due and to become due thereon for principal,
premium, if any, and interest.  All
moneys deposited with the Trustee pursuant to Section 7.05 (and held by it or
any Paying Agent) for the payment of Notes subsequently 

 48
 

 

converted shall be returned to the Issuer
upon request.  The Trustee is not
responsible to anyone for interest on any deposited funds except as agreed in
writing.

Section
11.03.  Paying
Agent to Repay Monies Held. 
Subject to the provisions of Section 11.04, the Trustee or a Paying
Agent shall hold in trust, for the benefit of the Noteholders, all money
deposited with it pursuant to Section 11.01 and shall apply the deposited money
in accordance with this Indenture and the Notes to the payment of the principal
of and interest on the Notes.

Section
11.04.  Return
of Unclaimed Monies.  The
Trustee and each Paying Agent shall pay to the Issuer upon written request any
money held by them for the payment of principal or interest that remains
unclaimed for two years after a right to such money has matured; provided, however,
that the Trustee or such Paying Agent, before being required to make any such
payment, may, at the expense of the Issuer, either publish in a newspaper of
general circulation in The City of New York, or cause to be mailed to each
holder entitled to such money, notice that such money remains unclaimed and
that after a date specified therein, which shall be at least thirty (30)
calendar days from the date of such mailing or publication, any unclaimed balance
of such money then remaining will be repaid to the Issuer.  After payment to the Issuer, holders entitled
to money must look to the Issuer for payment as general creditors unless an
applicable abandoned property law designates another person, and the Trustee
and each Paying Agent shall be relieved of all liability with respect to such
money.

Section
11.05.  Reinstatement.  If the Trustee or the Paying Agent is unable
to apply any money in accordance with Section 11.02 by reason of any order or
judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, the Issuer’s obligations under this
Indenture and the Notes shall be revived and reinstated as though no deposit
had occurred pursuant to Section 11.01 until such time as the Trustee or the
Paying Agent is permitted to apply all such money in accordance with Section
11.02; provided that if the
Issuer makes any payment of principal of or premium, if any, or interest on any
Note following the reinstatement of its obligations, the Issuer shall be
subrogated to the rights of the holders of such Notes to receive such payment
from the money held by the Trustee or Paying Agent.

ARTICLE 12

IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

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

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ARTICLE
13

CONVERSION OF NOTES

Section
13.01.  Right
to Convert.

(a)           Subject to the
restrictions on ownership of shares of Common Stock as set forth in Section
13.14 and upon compliance with the provisions of this Indenture, the holder of
any Notes may convert its Notes, or any portion thereof which is a multiple of
$1,000, into cash and, if applicable, shares of Common Stock by surrender of
such Notes so to be converted in whole or in part, together with any required
funds, under the circumstances and in the manner described in this Article
13.  Holders may surrender any Notes for
conversion not previously redeemed or repurchased at the applicable Conversion
Rate prior to the close of business on the second Business Day immediately
preceding the Stated Maturity of the Notes at any time on or after July 15,
2011 and also upon the occurrence of one of the events set forth in clauses (i)
through (v) below.

(i)            Conversion Upon
Satisfaction of Market Price Condition.  A holder may surrender any of its Notes for
conversion during any calendar quarter beginning after December 31, 2006 (and
only during such calendar quarter) if, and only if, the Closing Sale Price of
the Common Stock for at least twenty (20) Trading Days (whether or not
consecutive) in the period of thirty (30) consecutive Trading Days ending on
the last Trading Day of the preceding calendar quarter is more than 125% of the
Conversion Price per share of Common Stock in effect on the applicable Trading
Day.  The Board of Directors will make
appropriate adjustments, in its good faith determination, to account for any
adjustment to the Conversion Rate that becomes effective, or any event
requiring an adjustment to the Conversion Rate where the ex-dividend date
of the event occurs, during that thirty (30) consecutive Trading Day period.

(ii)           Conversion Upon
Satisfaction of Trading Price Condition.  A holder may surrender any of its Notes for
conversion during the five (5) consecutive Trading Day period following any
five (5) consecutive Trading Day period in which the Trading Price per $1,000
principal amount of Notes (as determined following a reasonable request by a
holder of the Notes) was less than 98% of the product of the Closing Sale Price
of the Common Stock multiplied by the Conversion Rate.

“Trading Price” means, with respect to the Notes on any date
of determination, the average of the secondary market bid quotations per $1,000
principal amount of Notes obtained by the Trustee for a $5.0 million principal
amount of Notes at approximately 3:30 p.m., New York City time, on such
determination date from two independent nationally recognized securities
dealers selected by the Issuer, which may include one or more of the Initial
Purchasers or any successor to such entities. 
If at least two such bids cannot reasonably be obtained by the Trustee,
but one such bid can reasonably be obtained by the Trustee, then one bid shall
be used. If the Trustee cannot reasonably obtain at least one bid for a
$5,000,000 principal amount of Notes from a nationally recognized securities
dealer or, in the reasonable judgment of the Issuer, the bid quotations are not
indicative of the secondary market value of the Notes, then the Trading Price
per $1,000 principal amount of Notes shall be deemed to be less than 98% of the

 50
 

 

product
of the Closing Sale Price of the Common Stock and the Conversion Rate on such
determination date.

The Trustee shall
have no obligation to determine the Trading Price of the Notes unless the
Issuer shall have requested such determination, and the Issuer shall have no
obligation to make such request unless a holder provides the Issuer with
written reasonable evidence that the Trading Price per $1,000 principal amount
of the Notes would be less than 98% of the product of the Closing Sale Price of
the Common Stock and the Conversion Rate, whereupon the Issuer shall instruct
the Trustee to determine the Trading Price of the Notes beginning on the next
Trading Day and on each successive Trading Day until the Trading Price is
greater than or equal to 98% of the product of the Closing Sale Price of the
Common Stock and the applicable Conversion Rate.

(iii)          Conversion Upon Notice of
Redemption.  A holder may
surrender for conversion any of the Notes called for redemption at any time
prior to the close of business on the second Business Day prior to the
Redemption Date, even if the Notes are not otherwise convertible at such
time.  The right to convert Notes pursuant
to this clause (iii) will expire after the close of business on the second
Business Day prior to the Redemption Date unless the Issuer defaults in making
the payment due upon redemption.  A
holder may convert fewer than all of its Notes so long as the Notes converted
are an integral multiple of $1,000 principal amount and the remaining principal
amount of Notes is in an authorized denomination. However, if a holder has
already delivered a Repurchase Notice with respect to a Note, such holder may
not surrender such Note for conversion until it has withdrawn such notice in
accordance with the applicable provisions of Section 3.08 hereof.

(iv)          Conversion Upon Specified
Transactions.  If the Issuer
elects to: (1) distribute to all holders of Common Stock rights entitling them
to purchase, for a period expiring within forty five (45) days after the date
fixed for determination of stockholders entitled to receive such rights, shares
of Common Stock at less than the Closing Sale Price of the Common Stock on the
Trading Day immediately preceding the declaration date of such distribution; or
(ii) distribute to all holders of Common Stock assets, debt securities or
certain rights to purchase securities of the Issuer, which distribution has a
per share value exceeding 10% of the Closing Sale Price of Common Stock on the
Trading Day immediately preceding the declaration date of such distribution,
the Issuer shall notify holders of the Notes at least twenty (20) calendar days
prior to the ex-dividend date for such distribution.  Following the issuance of such notice,
holders may surrender their Notes for conversion at any time until the earlier
of the close of business on the Business Day prior to the ex-dividend date or
an announcement by the Issuer that such distribution will not take place; provided, however, that a holder may not convert its Notes
pursuant to this Section 13.01(a)(iv) if such holder may participate, on an
as-converted basis (assuming for this purpose that the Notes were convertible
solely into Common Stock at the then applicable Conversion Rate), in the
distribution without any conversion of Notes. The “ex-dividend date” means,
with respect to any distribution on shares of Common Stock, the first date upon
which a sale of shares of Common Stock does not automatically transfer the
right to receive the relevant distribution from the seller of shares of Common
Stock to the buyer.

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In addition, if the Issuer is party to a
consolidation, merger or binding share exchange pursuant to which all of the
Common Stock would be exchanged for cash, securities or other property that is
not otherwise a Change in Control, a holder may surrender Notes for conversion
at any time from and including the date that is fifteen (15) Business Days
prior to the anticipated Effective Date of the transaction up to and including
five (5) Business Days after the Effective Date of such transaction.  The Issuer shall notify holders of Notes as
promptly as practicable following the date it publicly announces such
transaction (but in no event less than fifteen (15) Business Days prior to the
anticipated effective time of such transaction).

If a Change in
Control occurs prior to the Stated Maturity as a result of a transaction
described in clauses (1) or (2) of the definition of “Change in Control,” a
holder will have the right to convert its Notes at any time from and including
the Effective Date of such transaction up to and including the earlier of the
30th Business Day following the Effective Date of the transaction and the
second Business Day prior to the Stated Maturity, provided that, if a holder
has already delivered a Repurchase Notice with respect to a Note, such holder
may not surrender such Note for conversion until it has withdrawn such notice
in accordance with the applicable provisions of Section 3.08 hereof. The Issuer
will notify holders as promptly as practicable following the date that it
publicly announces such Change in Control (but in no event later than five (5)
Business Days prior to the Effective Date of such Change in Control).

(v)           Conversion Upon Delisting
of the Common Stock. A holder of Notes may surrender any of its
Notes for conversion at any time beginning on the first Business Day after the
Common Stock has ceased to be listed on a U.S. national or regional securities
exchange for a 30 consecutive Trading Day period.

(b)           Whenever the Notes
shall become convertible pursuant to this Section 13.01, the Issuer or, at the
Issuer’s request, the Trustee in the name and at the expense of the Issuer,
shall notify the holders of the event triggering such convertibility in the
manner provided in Section 15.03, and the Issuer shall also publicly announce
such information and publish it on its web site.  Any notice so given shall be conclusively
presumed to have been duly given, whether or not the holder receives such
notice.

(c)           A Note in respect of
which a holder has delivered a Repurchase Notice exercising such holder’s right
to require the Issuer to repurchase such Note pursuant to Section 3.05 may be
converted only if such Repurchase Notice is withdrawn in accordance with
Section 3.08 prior to the close of business on the third Business Day prior to
the Change in Control Repurchase Date.

(d)           A holder of Notes is
not entitled to any rights of a holder of Common Stock until such holder has
converted its Notes and received upon conversion thereof shares of Common
Stock.  The person in whose name any
certificate or certificates for shares of Common Stock shall be issuable upon
such conversion, if any, shall become on the date any such certificate or
certificates are delivered to such holder in accordance with the provisions of
this Article 13, the holder of record of the shares represented thereby.

 52
 

 

Section
13.02.  Exercise of
Conversion Right; No Adjustment for Interest or Dividends.  In order to exercise the conversion
right with respect to any Note in certificated form, the Issuer must receive at
the office or agency of the Issuer maintained for that purpose in The City of
New York or, at the option of such holder, the Corporate Trust Office, such
Note with the original or facsimile of the form entitled “Conversion Notice” on the reverse thereof,
duly completed and manually signed, together with such Notes duly endorsed for
transfer, accompanied by the funds, if any, required by this Section
13.02.  Such notice shall also state the
name or names (with address or addresses) in which the certificate or
certificates for shares of Common Stock, if any, which shall be issuable on
such conversion shall be issued (if other than in the name of the holder
tendering such Note for conversion), and shall be accompanied by transfer or
similar taxes, if required pursuant to Section 13.07.

In order to exercise the
conversion right with respect to any interest in a Global Note, the beneficial
holder must complete, or cause to be completed, the appropriate instruction
form for conversion pursuant to the Depositary’s book-entry conversion program;
deliver, or cause to be delivered, by book-entry delivery such interest in such
Global Note; furnish appropriate endorsements and transfer documents if
required by the Issuer or the Trustee or the Conversion Agent; and pay the
funds, if any, required by this Section 13.02 and any transfer taxes if
required pursuant to Section 13.07.

Each conversion shall be
deemed to have been effected as to any such Note (or portion thereof) on the
date on which the requirements set forth above in this Section 13.02 have been
satisfied as to such Note (or portion thereof) (the “Conversion Date”).

Except as set forth in
the next succeeding paragraph, upon conversion of a Note, a holder shall not be
entitled to receive any cash payment in respect of interest, and the Issuer
shall not be required to adjust the Conversion Rate to account for any accrued
and unpaid interest (including Additional Interest, if any).  The delivery by the Issuer to the holder of
cash and Common Stock, if any, upon conversion shall be deemed to satisfy the
Issuer’s obligation with respect to Notes tendered for conversion. Accordingly,
upon conversion of Notes, any accrued but unpaid interest shall be deemed to be
paid in full, rather than cancelled, extinguished or forfeited.

Holders of Notes at the
close of business on a Record Date for an interest payment shall receive
payment of the interest payable on the corresponding Interest Payment Date
notwithstanding the conversion of such Notes at any time after the close of
business on the applicable Record Date and on or prior to the corresponding
Interest Payment Date.  Accordingly, any
Note or portion thereof surrendered for conversion after the close of business
on the Record Date for any Interest Payment Date and on or prior to the
corresponding Interest Payment Date shall be accompanied by payment, in
immediately available funds or other funds acceptable to the Issuer, of an
amount equal to the interest otherwise payable on such Interest Payment Date on
the principal amount being converted; provided that
no such payment need be made (1) if the Issuer has specified a Redemption Date
that is after a Record Date and on or prior to the corresponding Interest
Payment Date, (2) to the extent of any overdue interest and Additional
Interest, if any overdue interest and Additional Interest, as applicable,
exists at the time of conversion with respect to such Notes, or (3) in respect
of any conversion that occurs after the Record Date for the interest payment
due on September 15, 2011.  Except as
otherwise provided above in this Article 13, no payment or other adjustment
shall be made for interest 

 53
 

 

accrued on any
Note converted or for dividends on any shares issued upon the conversion of
such Note as provided in this Article 13.

In case any Note of a
denomination greater than $1,000 shall be surrendered for partial conversion,
and subject to Section 2.04, the Issuer shall execute and the Trustee shall authenticate
and deliver to the holder of the Note so surrendered, without charge to the
holder, a new Note or Notes in authorized denominations in an aggregate
principal amount equal to the unconverted portion of the surrendered Note.

Upon surrender of
a Note for conversion, the holder shall deliver to the Issuer an amount in cash
equal to the amount that the Issuer is required to deduct and withhold under
applicable law in connection with such conversion; provided, however,
that if the holder does not deliver such cash, the Issuer may deduct and
withhold from the consideration otherwise deliverable to such holder the amount
required to be deducted and withheld under applicable law.

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

Section
13.03.  Cash
Payments in Lieu of Fractional Shares.  No fractional shares of Common Stock or scrip
certificates representing fractional shares shall be issued upon conversion of
Notes.   If more than one Note shall be
surrendered for conversion at one time by the same holder, the number of full
shares that shall be issuable upon conversion shall be computed on the basis of
the aggregate principal amount of the Notes (or specified portions thereof to
the extent permitted hereby) so surrendered.  
The Issuer shall deliver cash in lieu of any fractional shares of Common
Stock issuable in connection with payment of the settlement amount determined
in accordance with the provisions of Section 13.12 based on the Closing Sale
Price of the Common Stock on the last day of the applicable Observation Period.

Section
13.04.  Conversion
Rate.  The Conversion Rate for
the Notes is 26.6326 shares of Common Stock per each $1,000 principal amount of
the Notes (herein called the “Conversion Rate”),
subject to adjustment as provided in Sections 13.05 and 13.13.

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

(a)           If the Issuer issues Common Stock as a
dividend or distribution on Common Stock to all holders of Common Stock, or if
the Issuer effects a share split or share combination, the Conversion Rate will
be adjusted based on the following formula:

CR1 = CR0 x
OS1/OS0

where

 54
 

 

CR0 =     the Conversion Rate in effect
immediately prior to the adjustment relating to such event

CR1 =     the new Conversion Rate in
effect taking such event into account

OS0 =     the number of shares of Common
Stock outstanding immediately prior to such event

OS1 =     the number of shares of Common
Stock outstanding immediately after such event.

Any adjustment
made pursuant to this clause (a) shall become effective on the date that is
immediately after (x) the date fixed for the determination of stockholders
entitled to receive such dividend or other distribution or (y) the date on
which such split or combination becomes effective, as applicable. If any
dividend or distribution described in this clause (a) is declared but not so
paid or made, the new Conversion Rate shall be readjusted to the Conversion
Rate that would then be in effect if such dividend or distribution had not been
declared.

(b)           If the Issuer issues to all holders of
Common Stock any rights, warrants, options or other securities entitling them
for a period of not more than 45 days after the date of issuance thereof to
subscribe for or purchase Common Stock, or if the Issuer issues to all holders
of Common Stock securities convertible into Common Stock for a period of not
more than 45 days after the date of issuance thereof, in either case at an
exercise price per share of Common Stock or a conversion price per share of
Common Stock less than the Closing Sale Price of the Common Stock on the
Business Day immediately preceding the time of announcement of such issuance,
the Conversion Rate will be adjusted based on the following formula:

CR1 = CR0 x
(OS0+X)/(OS0+Y)

where

CR0 =     the Conversion Rate in effect
immediately prior to the adjustment relating to such event

CR1 =     the new Conversion Rate taking
such event into account

OS0 =     the number of shares of Common
Stock outstanding immediately prior to such event

X =          the total number of
shares of Common Stock issuable pursuant to such rights, warrants, options,
other securities or convertible securities

Y =          the number of shares of
Common Stock equal to the quotient of (A) the aggregate price payable to
exercise such rights, warrants, options, other securities or convertible
securities and (B) the 

 55
 

 

average of the Closing
Sale Prices of the Common Stock for the 10 consecutive Trading Days prior to
the Business Day immediately preceding the date of announcement for the
issuance of such rights, warrants, options, other securities or convertible securities.

For purposes of
this clause (b), in determining whether any rights, warrants, options, other
securities or convertible securities entitle the holders to subscribe for or
purchase, or exercise a conversion right for, Common Stock at less than the applicable
Closing Sale Price of the Common Stock, and in determining the aggregate
exercise or conversion price payable for such Common Stock, there shall be
taken into account any consideration received by the Issuer for such rights,
warrants, options, other securities or convertible securities and any amount
payable on exercise or conversion thereof, with the value of such
consideration, if other than cash, to be determined by the Board of Directors
of the Issuer.  If any right, warrant,
option, other security or convertible security described in this clause (b) is
not exercised or converted prior to the expiration of the exercisability or
convertibility thereof, the new Conversion Rate shall be readjusted to the
Conversion Rate that would then be in effect if such right, warrant, option,
other security or convertible security had not been so issued.

(c)           If the Issuer distributes capital stock,
evidences of indebtedness or other assets or property of the Issuer to all
holders of Common Stock, excluding:

(i)            dividends, distributions, rights, warrants,
options, other securities or convertible securities referred to in clause (a)
or (b) above,

(ii)           dividends or distributions paid exclusively
in cash, and

(iii)          Spin-Offs described below in this
clause (c),

then the
Conversion Rate will be adjusted based on the following formula:

CR1 =     CR0 x SP0/(SP0-FMV)

where

CR0 =     the Conversion Rate in effect
immediately prior to the adjustment relating to such event

CR1 =     the new Conversion Rate taking
such event into account

SP0 =      the Closing Sale Price of the
Common Stock on the Trading Day immediately preceding the ex-dividend
date for such distribution

FMV=     the fair market value (as
determined in good faith by the Board of Directors of the Issuer) of the
capital stock, evidences of indebtedness, assets or property distributed with
respect to each outstanding share of Common Stock on the earlier of the record
date or the ex-dividend date for such distribution.

 56
 

 

An adjustment to
the Conversion Rate made pursuant to the immediately preceding clause shall be
made successively whenever any such distribution is made and shall become
effective on the ex-dividend date for such distribution.

If the
Issuer distributes to all holders of Common Stock capital stock of any class or
series, or similar equity interest, of or relating to a subsidiary or other
business unit of the Issuer (a “Spin-Off”),
the Conversion Rate in effect immediately before the close of business on the
date fixed for determination of holders of Common Stock entitled to receive
such distribution will be adjusted based on the following formula:

CR1 =     CR0 x (FMV0+MP0)/MP0

where

CR0 =     the Conversion Rate in effect
immediately prior to the adjustment relating to such event

CR1 =     the new Conversion Rate
taking such event into account

FMV0 =          the average of the Closing Sale Prices of the
capital stock or similar equity interest distributed to holders of Common Stock
applicable to one share of Common Stock over the first 10 consecutive Trading
Days after the effective date of the Spin-Off

MP0 =            the average of the Closing Sale Prices of
the Common Stock over the first 10 consecutive Trading Days after the effective
date of the Spin-Off.

An adjustment to
the Conversion Rate made pursuant to the immediately preceding clause will
occur on the 10th Trading Day from and including the effective date of the Spin-Off.

If any
such dividend or distribution described in this clause (c) is declared but not
paid or made, the new Conversion Rate shall be readjusted to be the Conversion
Rate that would then be in effect if such dividend or distribution had not been
declared.

(d)           If the Issuer pays or makes any cash
dividend or distribution in respect of any of its quarterly fiscal periods
(without regard to when paid) to all holders of Common Stock in an aggregate
amount that, together with other cash dividends or distributions paid or made
in respect of such quarterly fiscal period, exceeds the product of $0.3125 (the
“Reference Dividend”) multiplied
by the number of shares of Common Stock outstanding on the record date for such
distribution, the Conversion Rate will be adjusted based on the following
formula:

CR1 =     CR0 x SP0/(SP0-C)

where

 57
 

 

CR0 =     the Conversion Rate in effect
immediately prior to the adjustment relating to such event

CR1 =     the new Conversion Rate
taking such event into account

SP0 =      the Closing Sale Price of
the Common Stock on the Trading Day immediately preceding the ex-dividend
date for such distribution

C =          the amount in cash per
share of Common Stock that the Issuer distributes to holders of Common Stock in
respect of such quarterly fiscal period that exceeds the Reference Dividend.

An adjustment to
the Conversion Rate made pursuant to this clause (d) shall become effective on
the ex-dividend date for such dividend or distribution.  If any dividend or distribution described in
this clause (d) is declared but not so paid or made, the new Conversion Rate
shall be readjusted to the Conversion Rate that would then be in effect if such
dividend or distribution had not been declared.

The
Reference Dividend shall be subject to adjustment on account of any of the
events set forth in clauses (a), (b) and (c) above and clause (e)
below.  Any such adjustment will be
effected by multiplying the Reference Dividend by a fraction, the numerator of
which will equal the Conversion Rate in effect immediately prior to the
adjustment on account of such event and the denominator of which will equal the
Conversion Rate as adjusted.

(e)           If the Issuer or any of its subsidiaries
makes a payment in respect of a tender offer or exchange offer for Common Stock
to the extent that the cash and value of any other consideration included in
the payment per share of Common Stock exceeds the Closing Sale Price of the
Common Stock on the Trading Day next succeeding the last date on which tenders
or exchanges may be made pursuant to such tender or exchange offer (the “Expiration Time”), the Conversion Rate will
be adjusted based on the following formula:

CR1 = CR0 x (AC +
(SP1 x OS1))/(SP1 x OS0)

where

CR0 =     the Conversion Rate in effect
immediately prior to the adjustment relating to such event

CR1 =     the new Conversion Rate
taking such event into account

AC =       the aggregate value of all
cash and any other consideration (as determined by the Board of Directors of the
Issuer) paid or payable for Common Stock purchased in such tender or exchange
offer

OS0 =     the number of shares of Common Stock outstanding
immediately prior to the date such tender or exchange offer expires

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OS1 =     the number of shares of
Common Stock outstanding immediately after such tender or exchange offer
expires (after giving effect to the purchase or exchange of shares pursuant to
such tender or exchange offer)

SP1 =      the average of the Closing
Sale Prices of Common Stock for the 10 consecutive Trading Days commencing on
the Trading Day next succeeding the date such tender or exchange offer expires.

If the
application of the foregoing formula would result in a decrease in the
Conversion Rate, no adjustment to the Conversion Rate will be made.

Any
adjustment to the Conversion Rate made pursuant to this clause (e) shall become
effective on the date immediately following the determination of the average of
the Closing Sale Prices of Common Stock for purposes of SP1 above.  If the Issuer or one of its subsidiaries is
obligated to purchase Common Stock pursuant to any such tender or exchange
offer but is permanently prevented by applicable law from effecting any such
purchase or all such purchases are rescinded, the new Conversion Rate shall be
readjusted to be the Conversion Rate that would be in effect if such tender or
exchange offer had not been made.

(f)            In addition to the adjustments pursuant to
clauses (a) through (e) above, the Issuer may increase the Conversion Rate in
order to avoid or diminish any income tax to holders of Common Stock resulting
from any dividend or distribution of capital shares (or rights to acquire
Common Stock) or from any event treated as such for income tax purposes.  The Issuer may also, from time to time, to
the extent permitted by applicable law, increase the Conversion Rate by any
amount for any period if the Issuer has determined that such increase would be
in the best interests of the Issuer.  If
the Issuer makes such determination, it will be conclusive and the Issuer will
mail to holders of the Notes a notice of the increased Conversion Rate and the
period during which it will be in effect at least fifteen (15) days prior to
the date the increased Conversion Rate takes effect in accordance with
applicable law.

(g)           If, in connection with any adjustment to the
Conversion Rate as set forth in this Section 13.05 a holder shall be deemed for
U.S. federal tax purposes to have received a distribution, the Issuer may set
off any withholding tax it reasonably believes it is required to collect with
respect to any such deemed distribution against cash payments of interest in
accordance with the provisions of Section 4.01 hereof or from cash and Common
Stock, if any, otherwise deliverable to a holder upon a conversion of Notes in
accordance with the provisions of Section 13.12 hereof or a redemption or
repurchase of a Note in accordance with the provisions of Article 3 hereof.

(h)           The Issuer will not make any adjustment to
the Conversion Rate if holders of the Notes are permitted to participate, on an
as-converted basis, in the transactions described above.

 59
 

 

(i)            Notwithstanding anything to the contrary
contained herein, in addition to the other events set forth herein on account
of which no adjustment to the Conversion Rate shall be made, the applicable
Conversion Rate shall not be adjusted for: (i) the issuance of any Common Stock pursuant to
any present or future plan providing for the reinvestment of dividends or
interest payable on securities of the Issuer and the investment
of additional optional amounts in Common Stock under any plan; (ii) the
issuance of any shares of Common Stock or options or rights to purchase those
shares pursuant to any present or future employee, director or consultant
benefit plan, employee agreement or arrangement or program of the Issuer; (iii)
the issuance of any shares of Common Stock pursuant to any option, warrant,
right, or exercisable, exchangeable or convertible security outstanding as of
the date the Notes were first issued; (iv) a change in the par value of the
Common Stock; (v) accumulated and unpaid dividends or distributions; and (vi)
as a result of a tender offer solely to holders of fewer than 100 shares of
Common Stock.

(j)            No adjustment in the Conversion Rate will
be required unless the adjustment would require an increase or decrease of at
least 1% of the Conversion Price. If the adjustment is not made because the
adjustment does not change the Conversion Price by at least 1%, then the
adjustment that is not made will be carried forward and taken into account in
any future adjustment.  All required
calculations will be made to the nearest cent or 1/1000th of a share, as the
case may be.  Notwithstanding the
foregoing, if the Notes are called for redemption, all adjustments not
previously made will be made on the applicable Redemption Date.

(k)           Whenever the Conversion Rate is adjusted as
herein provided, the Issuer shall promptly file with the Trustee and any
Conversion Agent other than the Trustee, an Officers’ Certificate setting forth
the Conversion Rate after such adjustment and setting forth a brief statement
of the facts requiring such adjustment. 
Unless and until a Responsible Officer of the Trustee shall have received
such Officers’ Certificate, the Trustee shall not be deemed to have knowledge
of any adjustment of the Conversion Rate and may assume that the last
Conversion Rate of which it has knowledge is still in effect.  Promptly after delivery of such certificate,
the Issuer shall prepare a notice of such adjustment of the Conversion Rate
setting forth the adjusted Conversion Rate and the date on which each
adjustment becomes effective and shall mail such notice of such adjustment of
the Conversion Rate to the holders of the Notes within 20 Business Days of the
effective date of such adjustment. 
Failure to deliver such notice shall not affect the legality or validity
of any such adjustment.

(l)            For purposes of this Section 13.05, the
number of shares of Common Stock at any time outstanding shall not include
shares held in the treasury of the Issuer but shall include shares issuable in
respect of scrip certificates issued in lieu of fractions of shares of Common
Stock.

(m)          Notwithstanding anything in this Section
13.05 to the contrary, in no event shall the Conversion Rate be adjusted so
that the Conversion Price would be less than $0.01.

 60
 

 

Section
13.06.  Change
in Conversion Right Upon Certain Reclassifications, Business Combinations and
Asset Sales.

(a)           If the Issuer is a
party to a consolidation, merger or binding share exchange (including, without
limitation, by way of a recapitalization, reclassification or change of Common
Stock (other than changes resulting from a subdivision or combination) or a
sale, lease or transfer to a third party of the Issuer’s and the Issuer’s
subsidiaries’ consolidated assets substantially as an entirety) pursuant to
which all of the Common Stock is converted into cash, securities or other
property, then the Issuer, or such successor or purchasing corporation, as the
case may be, shall, as a condition precedent to such consolidation, merger or
binding share exchange or sale, lease or transfer, execute and deliver to the
Trustee a supplemental indenture providing that at the Effective Date of the
transaction any conversion of Notes and the determination of the sum of the
Daily Share Amounts will be based on, and determined by reference to, the kind
and amount of cash, securities or other property that the holder would have
received if such holder had converted its Notes into shares of Common Stock
immediately prior to the Effective Date of the transaction.

(b)           In the event the Issuer
shall execute a supplemental indenture pursuant to this Section 13.06, the
Issuer 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 Notes upon
the conversion of their Notes after any such reclassification, change,
consolidation, merger, binding share exchange, sale, transfer, lease or
conveyance, any adjustment to be made with respect thereto and that all
conditions precedent have been complied with.

(c)           For purposes of this
Section 13.06, where a consolidation, merger or binding share exchange involves
a transaction that causes Common Stock to be converted into the right to
receive more than a single type of consideration based upon any form of
shareholder election, such consideration will be deemed to be the weighted
average of the types and amounts of consideration received by the holders of
Common Stock that affirmatively make such an election.

(d)           If this Section 13.06
applies to any event or occurrence, Section 13.05 shall not apply.  The provisions of this Section 13.06 shall
similarly apply to successive reclassifications, changes, consolidations,
mergers, sales, transfers, leases, conveyances or other dispositions.

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

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

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

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

Section
13.09.  Responsibility
of Trustee.  The Trustee and
any other Conversion Agent shall not at any time be under any duty or
responsibility to any holder of Notes to determine the Conversion Rate or
whether any facts exist which may require any adjustment of the Conversion
Rate, or with respect to the nature or extent or calculation of any such
adjustment when made, or with respect to the method employed, or herein or in
any supplemental indenture provided to be employed, in making the same.  The Trustee and any other Conversion Agent
shall not be accountable with respect to the validity or value (or the kind or
amount) of any shares of Common Stock, or of any capital stock, other securities
or other assets or property, which may at any time be issued or delivered upon
the conversion of any Note; and the Trustee and any other Conversion Agent make
no representations with respect thereto. 
Neither the Trustee nor any Conversion Agent shall be responsible for
any failure of the Issuer to issue, transfer or deliver any shares of Common
Stock or stock certificates or other securities or property or cash upon the
surrender of any Note for the purpose of conversion or to comply with any of the
duties, responsibilities or covenants of the Issuer contained in this Article
13.  Without limiting the generality of
the foregoing, neither the Trustee nor any Conversion Agent shall be under any
responsibility to determine the correctness of any provisions contained in any
supplemental indenture entered into pursuant to Section 13.06 relating either
to the kind or amount of shares of capital stock or other securities or other
assets or property (including cash) receivable by Noteholders upon the conversion
of their Notes after any event referred to in such Section 13.06 or to any
adjustment to be made with respect thereto, but, subject to the provisions of
Section 7.01, may accept as conclusive evidence of the correctness of any such
provisions, and shall be protected in relying upon, the Officers’ Certificate
(which the Issuer shall be obligated to file with the Trustee prior to the
execution of any such supplemental indenture) with respect thereto. The Trustee
shall not at any time be under any duty or responsibility to any holder of
Notes to determine the accuracy of the method employed in calculating the
Trading Price or whether any facts exist which may require any adjustment of
the Trading Price.

 62
 

 

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

(a)           the Issuer shall
declare a dividend (or any other distribution) on its Common Stock that would
require an adjustment in the Conversion Rate pursuant to Section 13.05; or

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

(c)           of any reclassification
or reorganization of the Common Stock (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,
combination, merger or share exchange to which the Issuer is a party and for
which approval of any stockholders of the Issuer is required, or of the sale or
transfer of all or substantially all of the assets of the Issuer; or

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

the Issuer shall
cause to be filed with the Trustee and to be mailed to each holder of Notes at
its address appearing on the Note Register provided for in Section 2.05 of this
Indenture, as promptly as possible but in any event at least ten (10) calendar
days prior to the applicable date hereinafter specified, a notice stating (x)
the date on which a record is to be taken for the purpose of such dividend,
distribution or rights or warrants, or, if a record is not to be taken, the
date as of which the holders of Common Stock of record to be entitled to such
dividend, distribution or rights are to be determined, or (y) the date on which
such reclassification, consolidation, merger, sale, transfer, dissolution,
liquidation or winding up is expected to become effective or occur, and the
date as of which it is expected that holders of Common Stock of record shall be
entitled to exchange their Common Stock for securities or other property
deliverable upon such reclassification, consolidation, merger, sale, transfer,
dissolution, liquidation or winding up. 
Failure to give such notice, or any defect therein, shall not affect the
legality or validity of such dividend, distribution, reclassification,
consolidation, merger, sale, transfer, dissolution, liquidation or winding up.

Section
13.11.  Stockholder
Rights Plans.  If the Issuer
has in effect a rights plan while any Notes remain outstanding, holders of
Notes will receive, upon a conversion of Notes in respect of which the Issuer
is required to deliver shares of Common Stock, in addition to such shares of
Common Stock, rights under the Issuer’s stockholder rights agreement unless,
prior to conversion, the rights have expired, terminated or been redeemed or
unless the rights have separated from the Common Stock. If the rights provided
for in the rights plan adopted by the Issuer have separated from the Common
Stock in accordance with the provisions of the applicable stockholder rights
agreement so that holders of Notes would not be entitled to receive any rights
in respect of Common Stock, if any, that the Issuer is required to deliver upon
conversion of Notes, the Conversion Rate will be adjusted at the time of
separation as if the Issuer had distributed to all holders of Common Stock
capital shares, evidences of indebtedness or other assets or property pursuant
to Section 13.05(c) above, subject to readjustment upon the subsequent
expiration, termination or redemption of the rights.

 63
 

 

Section
13.12.  Settlement
Upon Conversion.

(a)           Upon a conversion of
Notes, the Issuer shall deliver, in respect of each $1,000 principal amount of
Notes being converted, cash and shares of Common Stock, if any, equal to the
sum of the Daily Settlement Amounts for each of the 30 Trading Days during the
Observation Period.

(b)           The “Daily Settlement Amount,” for each of the
30 Trading Days during the Observation Period, shall consist of:

(i)            cash equal to the lesser of (i)
one-thirtieth of $1,000 and (ii) the Daily Conversion Value; and

(ii)           to the extent the Daily Conversion Value
exceeds one-thirtieth of $1,000, a number of shares of Common Stock equal to
(i) the difference between the Daily Conversion Value and one-thirtieth of
$1,000, divided by (ii) the Daily VWAP (defined below) for such day.

“Daily
Conversion Value” means, for each of the 30 consecutive Trading Days
during the Observation Period, one-thirtieth of the product of (i) the
applicable Conversion Rate and (ii) the Daily VWAP of the Common Stock on such
day.

“Daily VWAP”
means, for each of the 30 consecutive Trading Days during the Observation
Period, the per share volume-weighted average price as displayed under the
heading “Bloomberg VWAP” on Bloomberg page “UDR.N <equity> AQR” (or any
successor thereto) in respect of the period from the scheduled open of the
primary exchange or market on which the Common Stock is listed or traded to the
scheduled close of such exchange or market on such Trading Day (or if such
volume-weighted average price is unavailable, the market value of one share of
Common Stock on such Trading Day determined, using a volume-weighted average
method, by a nationally recognized independent investment banking firm retained
for this purpose by the Issuer).

“Observation
Period” with respect to any Note means the 30 consecutive Trading
Day period beginning on and including the second Trading Day after the
Conversion Date relating to such Note, except that with respect to any Note
surrendered for conversion during the period beginning on July 15, 2011 and
ending on the second Business Day prior to the Stated Maturity, “Observation
Period” means the first 30 Trading Days beginning on and including the 32nd
Scheduled Trading Day prior to the Stated Maturity.

For the purposes of
determining payment upon conversion in accordance with the provisions of this
Section 13.12 only, “Trading Day”
means a day on which (i) there is no Market Disruption Event and (ii) trading
in securities generally occurs on the New York Stock Exchange or, if the Common
Stock is not then listed on the New York Stock Exchange, on the principal other
United States national or regional securities exchange on which the Common
Stock is then listed or, if the Common Stock is not then listed on a United
States national or regional securities exchange, in the principal other market
on which the Common Stock is then traded. If the Common Stock (or other
security for which a Daily VWAP must be determined) is not so listed or quoted,
“Trading Day” means a “Business Day.”

 64
 

 

“Scheduled
Trading Day” means a day that is scheduled to be a Trading Day.

“Market
Disruption Event” means the occurrence or existence for more than
one half-hour period in the aggregate on any scheduled Trading Day for the
Common Stock of any suspension or limitation imposed on trading (by reason of
movements in price exceeding limits permitted by the New York Stock Exchange or
otherwise) in the Common Stock or in any options, contracts or future contracts
relating to the Common Stock, and such suspension or limitation occurs or
exists at any time before 1:00 p.m. (New York City time) on such day.

(c)           The Issuer shall
deliver the sum of the Daily Settlement Amounts for each of the 30 Trading Days
during the Observation Period to converting holders on the third Business Day
immediately following the last day of the Observation Period.

Section
13.13.  Conversion
Rate Adjustment After Certain Change in Control Transactions.

(a)            If the Effective Date
of a Change in Control occurs prior to the Stated Maturity as a result of a
transaction or event described in clauses (1) or (2) of the definition of
Change in Control and a holder elects to convert its Notes in connection with
such Change in Control pursuant to Section 13.01(a)(iv) hereof, the Issuer
shall increase the applicable Conversion Rate for such Notes surrendered for
conversion by a number of additional shares of Common Stock (the “Additional Shares”) as specified
below.  A conversion of Notes will be
deemed for these purposes to be “in connection with” such a Change in Control
if the Conversion Notice is received by the Conversion Agent on any date from
and including the date that is the Effective Date of such Change in Control up
to and including the earlier of the 30th Business Day following the Effective
Date of such Change in Control and the second Business Day preceding the Stated
Maturity.

(b)           The number of
Additional Shares will be determined by reference to the table in Section
13.13(e) and is based on the date on which the Change in Control becomes
effective (the “Effective Date”)
and the price paid per share of Common Stock in the Change in Control
transaction (the “Stock Price”).  If holders of Common Stock receive only cash
in the Change in Control transaction, the Stock Price shall equal the cash
amount paid per share of Common Stock in such transaction.  In all other cases, the Stock Price shall
equal the average of the Closing Sale Prices of the Common Stock on the ten
(10) consecutive Trading Days up to but excluding the Effective Date.

(c)           The Stock Prices set
forth in the first row of the table set forth in Section 13.13(e) (i.e., the
column headers) shall be adjusted as of any date on which the Conversion Rate
of the Notes is adjusted pursuant to Section 13.05.  The adjusted Stock Prices shall equal the
Stock Prices applicable immediately prior to such adjustment multiplied by a
fraction, (i) the numerator of which shall be the Conversion Rate immediately
prior to the adjustment giving rise to the Stock Price adjustment and (ii) the
denominator of which shall be the Conversion Rate as so adjusted.

(d)           The number of
Additional Shares shall be adjusted in the same manner and for the same events
as the Conversion Rate is adjusted pursuant to Section 13.05.

 65
 

 

(e)           The following table
sets forth the Stock Price and number of Additional Shares to be received per
$1,000 principal amount of Notes:

	
  Effective

  	
   

  	
  Stock Price

  	
   

  
	
  Date

  	
   

  	
  $31.29

  	
   

  	
  $32.50

  	
   

  	
  $35.00

  	
   

  	
  $37.50

  	
   

  	
  $40.00

  	
   

  	
  $42.50

  	
   

  	
  $45.00

  	
   

  	
  $47.50

  	
   

  	
  $50.00

  	
   

  	
  $52.50

  	
   

  	
  $55.00

  	
   

  	
  $57.50

  	
   

  	
  $60.00

  	
   

  
	
  October
  12, 2006

  	
   

  	
  5.3265

  	
   

  	
  4.5367

  	
   

  	
  3.3104

  	
   

  	
  2.3911

  	
   

  	
  1.7060

  	
   

  	
  1.1955

  	
   

  	
  0.8183

  	
   

  	
  0.5403

  	
   

  	
  0.3370

  	
   

  	
  0.1895

  	
   

  	
  0.0836

  	
   

  	
  0.0119

  	
   

  	
  0.0000

  	
   

  
	
  September
  15, 2007

  	
   

  	
  5.3265

  	
   

  	
  4.5038

  	
   

  	
  3.2321

  	
   

  	
  2.2886

  	
   

  	
  1.5974

  	
   

  	
  1.0917

  	
   

  	
  0.7262

  	
   

  	
  0.4644

  	
   

  	
  0.2791

  	
   

  	
  0.1495

  	
   

  	
  0.0601

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  
	
  September
  15, 2008

  	
   

  	
  5.3265

  	
   

  	
  4.4367

  	
   

  	
  3.1085

  	
   

  	
  2.1377

  	
   

  	
  1.4397

  	
   

  	
  0.9449

  	
   

  	
  0.5993

  	
   

  	
  0.3614

  	
   

  	
  0.2000

  	
   

  	
  0.0925

  	
   

  	
  0.0223

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  
	
  September
  15, 2009

  	
   

  	
  5.3265

  	
   

  	
  4.2752

  	
   

  	
  2.8651

  	
   

  	
  1.8605

  	
   

  	
  1.1664

  	
   

  	
  0.7009

  	
   

  	
  0.3974

  	
   

  	
  0.2049

  	
   

  	
  0.0861

  	
   

  	
  0.0150

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  
	
  September
  15, 2010

  	
   

  	
  5.3265

  	
   

  	
  4.0719

  	
   

  	
  2.4873

  	
   

  	
  1.4070

  	
   

  	
  0.7275

  	
   

  	
  0.3346

  	
   

  	
  0.1254

  	
   

  	
  0.0227

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  
	
  September 15, 2011

  	
   

  	
  5.3265

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  

 

(f)            If the exact Stock
Price and Effective Date are not set forth in the table above, then:

(i)            If the Stock Price is between two Stock
Price amounts in the table or the Effective Date is between two Effective Dates
in the table, the number of Additional Shares shall be determined by straight-line
interpolation between the number of Additional Shares set forth for the higher
and lower Stock Price amounts and the two dates, as applicable, based on a 365-day
year;

(ii)           If the Stock Price is equal to or in excess
of $60.00 per share of Common Stock (subject to adjustment as specified in
Section 13.13(c)), no Additional Shares will be issued upon a conversion of
Notes; and

(iii)          If the Stock Price is less than $31.29 per
share of Common Stock (subject to adjustment as specified in Section 13.13(c)),
no Additional Shares will be issued upon a conversion of Notes.

(g)           Notwithstanding the
provisions of this Section 13.13, in no event shall the total number of shares
of Common Stock issuable upon conversion of the Notes exceed 31.9591 shares per
$1,000 principal amount of Notes, subject to adjustment in the same manner as
the Conversion Rate as set forth in Section 13.05.

Section 13.14.  Ownership
Limit; Withholding Tax.

(a)           Notwithstanding any
other provision of the Notes, no holder of Notes shall be entitled to receive
shares of Common Stock upon a conversion of Notes to the extent that receipt of
such shares would cause such holder (together with such holder’s Affiliates) to
exceed the ownership limit contained in the Charter of the Issuer.

(b)           At the Stated Maturity
or upon earlier redemption or repurchase of the Notes or otherwise, and as
otherwise required by law, the Issuer may deduct and withhold from the amount
of consideration otherwise deliverable to the holder the amount required to be
deducted and withheld under applicable law.

Section
13.15.  Calculation
In Respect of Notes.  Except
as otherwise specifically stated herein or in the Notes, all calculations to be
made in respect of the Notes shall be the obligation of the Issuer. All
calculations made by the Issuer or its agent as contemplated pursuant to the
terms hereof and of the Notes shall be made in good faith and be final and
binding on the Notes and the holders of the Notes absent manifest error. The
Issuer shall provide a schedule of 

 66
 

 

calculations to the Trustee, and the Trustee
shall be entitled to rely upon the accuracy of the calculations by the Issuer
without independent verification.  The
Trustee shall forward calculations made by the Issuer to any holder of Notes
upon request.

ARTICLE 14

[INTENTIONALLY OMITTED]

ARTICLE 15

MISCELLANEOUS PROVISIONS

Section
15.01.  Provisions
Binding on Issuer’s Successors. 
All the covenants, stipulations, promises and agreements by the Issuer
contained in this Indenture shall bind their respective successors and assigns
whether so expressed or not.

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

Section
15.03.  Addresses
for Notices, etc.  Any notice
or demand which by any provision of this Indenture is required or permitted to
be given or served by the Trustee or by the holders of Notes on the Issuer
shall be in writing and shall be deemed to have been sufficiently given or
made, for all purposes, if given or served by being deposited postage prepaid
by registered or certified mail in a post office letter box, or sent by
overnight courier, or sent by telecopier transmission addressed as follows:

United Dominion Realty
Trust, Inc. 

1745 Shea Center Drive, Suite 200

Highlands Ranch, Colorado 80129 

Telecopier No.: (720) 283-2454

Attention:  Vice President - Legal
Administration and Corporate Secretary

Any notice, direction,
request or demand hereunder to or upon the Trustee shall be deemed to have been
sufficiently given or made, for all purposes, if given or served by being
deposited, postage prepaid, by registered or certified mail in a post office
letter box, or sent by overnight courier, or sent by telecopier transmission
addressed as follows: U.S. Bank National Association, 919 East Main Street,
10th Floor, Richmond, Virginia 23219, Telecopier No.: (804) 782-7855,
Attention:  Corporate Trust Services.

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

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

 67
 

 

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

Section
15.04.  Governing
Law.  This Indenture shall be
governed by, and construed in accordance with, the laws of the State of New
York.

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

Each certificate or
opinion provided for in this Indenture and delivered to the Trustee with
respect to compliance with a condition or covenant provided for in this
Indenture shall include: (1) a statement that the person making such
certificate or opinion has read such covenant or condition; (2) a brief
statement as to the nature and scope of the examination or investigation upon
which the statement or opinion contained in such certificate or opinion is
based; (3) a statement that, in the opinion of such person, such person has
made such examination or investigation as is necessary to enable such person to
express an informed opinion as to whether or not such covenant or condition has
been complied with; and (4) a statement as to whether or not, in the opinion of
such person, such condition or covenant has been complied with; provided, however, that
with respect to matters of fact an Opinion of Counsel may rely on an Officers’
Certificate or certificates of public officials.

Section
15.06.  Legal
Holidays.  If any specified
date (including a date for giving notice) on which action is to be taken under
this Indenture 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 Notes, no interest shall accrue for the intervening
period.

Section
15.07.  Trust
Indenture Act.  This Indenture
is hereby made subject to, and shall be governed by, the provisions of the
Trust Indenture Act required to be part of and to govern indentures qualified
under the Trust Indenture Act; provided
that this Section 15.07 shall not require this Indenture or the Trustee to be
qualified under the Trust Indenture Act prior to the time such qualification is
in fact required under the terms of the Trust Indenture Act, nor shall it
constitute any admission or acknowledgment by any party to the Indenture that
any such qualification is required prior to the time such qualification is in
fact required under the terms of the Trust Indenture Act.  If any provision hereof limits, qualifies or
conflicts with another provision hereof which is required to be included in an
indenture qualified under the Trust Indenture Act, such required provision
shall control.

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

 68
 

 

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

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

Section
15.11.  Authenticating
Agent.  The Trustee may
appoint an authenticating agent that shall be authorized to act on its behalf,
and subject to its direction, in the authentication and delivery of Notes in
connection with the original issuance thereof and transfers and exchanges of
Notes hereunder, including under Sections 2.04, 2.05, 2.06, 2.07, 3.03 and
3.05, as fully to all intents and purposes as though the authenticating agent
had been expressly authorized by this Indenture and those Sections to
authenticate and deliver Notes.  For all
purposes of this Indenture, the authentication and delivery of Notes by the
authenticating agent shall be deemed to be authentication and delivery of such
Notes “by the Trustee” and a certificate of authentication executed on behalf
of the Trustee by an authenticating agent shall be deemed to satisfy any
requirement hereunder or in the Notes for the Trustee’s certificate of
authentication.  Such authenticating
agent shall at all times be a Person eligible to serve as trustee hereunder
pursuant to Section 7.09.

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

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

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

 69
 

 

The provisions of
Sections 7.02, 7.03, 7.04 and 8.03 and this Section 15.11 shall be applicable
to any authenticating agent.

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

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

U.S. Bank National
Association hereby accepts the trusts in this Indenture declared and provided,
upon the terms and conditions herein above set forth.

 70

 

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

	
  

  	
  UNITED DOMINION REALTY TRUST, INC., 

  
	
   

  	
  as Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael A. Ernst

  	
   

  
	
   

  	
   

  	
  Name: Michael A.
  Ernst

  
	
   

  	
   

  	
  Title: Executive
  Vice President, Treasurer

  
	
   

  	
   

  	
   

  	
   and Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
  U.S. BANK NATIONAL ASSOCIATION, as 

  
	
   

  	
  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Craig A. Robinson

  	
   

  
	
   

  	
   

  	
  Name: Craig A.
  Robinson

  
	
   

  	
   

  	
  Title:
  Authorized Agent

  
						

 

EXHIBIT A

[Include only for Global
Notes]

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

[Include only for Notes
that are Restricted Securities]

THIS SECURITY HAS NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD EXCEPT AS
SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER:

(1) REPRESENTS THAT IT IS A “QUALIFIED INSTITUTIONAL
BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT), IS AWARE THAT THE
TRANSFER TO IT IS BEING MADE IN RELIANCE ON RULE 144A UNDER THE SECURITIES ACT
AND IS ACQUIRING THIS SECURITY IN COMPLIANCE WITH RULE 144A UNDER THE
SECURITIES ACT;

(2) AGREES THAT IT WILL NOT, WITHIN TWO YEARS AFTER
THE LATER OF THE ORIGINAL ISSUE DATE OF THIS SECURITY AND THE LAST DATE ON
WHICH UNITED DOMINION REALTY TRUST, INC. OR AN AFFILIATE THEREOF WAS THE OWNER
OF THIS SECURITY, RESELL OR OTHERWISE TRANSFER THIS SECURITY OR THE COMMON
STOCK ISSUABLE UPON CONVERSION OF SUCH SECURITY EXCEPT (A) TO UNITED DOMINION
REALTY TRUST, INC. OR ANY OF ITS SUBSIDIARIES, (B) TO A QUALIFIED INSTITUTIONAL
BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, (C) PURSUANT TO
THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT
(IF AVAILABLE), OR (D) 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 RESALE OR TRANSFER; AND

(3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM
THIS SECURITY IS TRANSFERRED (OTHER THAN A TRANSFER PURSUANT TO CLAUSE 2(C) OR
2(D) ABOVE) A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS 

 A-1

 

LEGEND. IN CONNECTION WITH ANY TRANSFER OF THIS
SECURITY WITHIN TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE OF THIS
SECURITY AND THE LAST DATE ON WHICH UNITED DOMINION REALTY TRUST, INC. OR AN
AFFILIATE THEREOF WAS THE OWNER OF THIS SECURITY, THE HOLDER MUST CHECK THE
APPROPRIATE BOX SET FORTH ON THE REVERSE HEREOF RELATING TO THE MANNER OF SUCH
TRANSFER AND SUBMIT THIS SECURITY TO THE TRUSTEE (OR ANY SUCCESSOR TRUSTEE, AS
APPLICABLE). IF THE PROPOSED TRANSFER IS PURSUANT TO CLAUSE 2(C) ABOVE, THE
HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO THE TRUSTEE (OR ANY SUCCESSOR TRUSTEE,
AS APPLICABLE), SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS
UNITED DOMINION REALTY TRUST, INC. OR THE TRUSTEE MAY REASONABLY REQUIRE TO
CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A
TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT. THIS LEGEND WILL BE REMOVED UPON THE EARLIER OF THE TRANSFER OF THIS
SECURITY PURSUANT TO CLAUSE 2(C) OR 2(D) ABOVE OR THE EXPIRATION OF TWO YEARS
FROM THE LATER OF THE ORIGINAL ISSUE DATE OF THIS SECURITY AND THE LAST DATE ON
WHICH UNITED DOMINION REALTY TRUST, INC. OR AN AFFILIATE THEREOF WAS THE OWNER
OF THIS SECURITY.

THE HOLDER OF THIS
SECURITY IS ENTITLED TO THE BENEFITS OF A REGISTRATION RIGHTS AGREEMENT (AS
SUCH TERM IS DEFINED IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF) AND,
BY ITS ACCEPTANCE HEREOF, AGREES TO BE BOUND BY AND TO COMPLY WITH THE
PROVISIONS OF SUCH REGISTRATION RIGHTS AGREEMENT.

[Include for all Notes]

PURSUANT TO SECTION 1271 ET SEQ. OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED, THIS SECURITY HAS BEEN ISSUED WITH ORIGINAL
ISSUE DISCOUNT. TO OBTAIN (I) THE ISSUE PRICE OF THIS SECURITY, (II) THE AMOUNT
OF ORIGINAL ISSUE DISCOUNT, (III) THE ISSUE DATE, OR (IV) THE YIELD TO
MATURITY, CONTACT INVESTOR RELATIONS AT 1745 SHEA CENTER DRIVE, SUITE 200,
HIGHLANDS RANCH, COLORADO, 80129, OR BY PHONE AT (720) 283-6120.

 A-2
 

 

UNITED DOMINION REALTY TRUST, INC.

3.625% CONVERTIBLE SENIOR NOTES DUE 2011

	
  

  	
  CUSIP:

  
	
   

  	
   

  
	
  No.

  	
  $250,000,000

  

 

United Dominion Realty Trust,
Inc., a Maryland corporation (herein called the “Issuer,” which term includes
any successor corporation under the Indenture referred to on the reverse
hereof), for value received hereby promises to pay to              or
its registered assigns, [the principal sum of TWO HUNDRED FIFTY MILLION
DOLLARS] [or such other principal amount as shall be set forth on Schedule I
hereto](1) on September 15, 2011 at the office or agency of the Issuer
maintained for that purpose in accordance with the terms of the Indenture, in
such coin or currency of the United States of America as at the time of payment
shall be legal tender for the payment of public and private debts, and to pay
interest, semi-annually, on March 15 and September 15 of each year (each, an “Interest
Payment Date”), commencing March 15, 2007, on said principal sum at said office
or agency, in like coin or currency, at the rate per annum of 3.625%, from and
including the most recent Interest Payment Date in respect of which interest
has been paid (or commencing October 12, 2006 if no interest has been paid
hereon).

Reference is made to the
further provisions of this Note set forth on the reverse hereof, including,
without limitation, provisions giving the holder of this Note the right to
convert this Note in the manner specified in the Indenture.  Such further provisions shall for all
purposes have the same effect as though fully set forth at this place.

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

(1)           For Global Notes
only.  

 A-3
 

 

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

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  UNITED DOMINION REALTY TRUST, 

  
	
   

  	
  INC., a Maryland corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
    Name:

  
	
   

  	
   

  	
    Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  ATTEST:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
								

 

 A-4
 

 

TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

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

	
  U.S. BANK NATIONAL ASSOCIATION, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  
					

 

 A-5
 

 

FORM OF REVERSE OF
NOTE

UNITED DOMINION REALTY TRUST, INC.

3.625% CONVERTIBLE SENIOR NOTES DUE 2011

This note is one of a duly
authorized issue of notes of the Issuer, designated as its “3.625% Convertible
Senior Notes due 2011” (herein called the “Notes”), issued under and pursuant
to an Indenture, dated as of October 12, 2006 (herein called the “Indenture”),
between the Issuer and U.S. Bank National Association, as trustee (herein
called the “Trustee”), to which Indenture and all indentures supplemental
thereto reference is hereby made for a description of the rights, limitations
of rights, obligations, duties and immunities thereunder of the Trustee, the
Issuer and the holders of the Notes. 
Capitalized terms used but not otherwise defined in this Note shall have
the respective meanings ascribed thereto in the Indenture.

The Issuer shall have the
right to redeem the Notes at its option in accordance with the provisions of
Article 3 of the Indenture in order to preserve its status as a real estate
investment trust.  If the Issuer
determines it is necessary to redeem the Notes in order to preserve its status
as a real estate investment trust, the Issuer may redeem the Notes for cash, in
whole or in part, at a redemption price equal to 100% of the principal amount
of the Notes to be redeemed plus unpaid interest, if any, accrued thereon to
the Redemption Date.  In accordance with
the provisions of the Indenture, the Issuer may not otherwise redeem the Notes
at its option prior to the Stated Maturity thereof.

Subject to the terms and
conditions set forth in the Indenture, following the occurrence of a Change in
Control at any time prior to the Stated Maturity of the Notes, the Notes shall
be subject to repurchase by the Issuer, at the option of the holder, on the
Change in Control Repurchase Date, at a Change in Control Purchase Price equal
to 100% of the principal amount of the Notes to be repurchased together with
accrued and unpaid interest accrued thereon to the Change in Control Repurchase
Date.  To exercise such right, the holder
shall be required to satisfy the conditions to such repurchase set forth in the
Indenture and to deliver to the Paying Agent the Repurchase Notice set forth on
the reverse hereof prior to the close of business on the third Business Day
prior to the Change in Control Repurchase Date.

The Issuer may not
repurchase any Notes if there has occurred and is continuing an Event of
Default with respect to the Notes (other than a default in the payment of the
Change in Control Purchase Price for such Notes).

Holders have
the right to withdraw any Repurchase Notice by delivering to the Paying Agent a
written notice of withdrawal at any time prior to the close of business on the
third Business Day prior to the Change in Control Repurchase Date, all as
provided in the Indenture.

Subject to and in
compliance with the provisions of the Indenture, holders of Notes shall have
the right to convert each $1,000 principal amount of Notes at the applicable
Conversion Rate into the consideration specified in the Indenture, upon
surrender of the Note to be converted with the form entitled “Conversion Notice”
on the reverse hereof duly completed and manually signed, to the Issuer at the
office or agency of the Issuer maintained for that purpose in The City of New
York in accordance with the terms of the Indenture, together with any funds
required 

 A-6
 

 

pursuant to the
terms of the Indenture.  The Conversion
Rate shall initially be 26.6326 shares of Common Stock per $1,000 principal
amount of Notes, subject to adjustment in the manner set forth in the
Indenture.

Notes surrendered
for conversion at any time after the close of business on any applicable Record
Date for the payment of interest and on or prior to the corresponding Interest
Payment Date must be accompanied by payment, in immediately available funds or
other funds acceptable to the Issuer, of an amount equal to the interest otherwise
payable on such Interest Payment Date on the principal amount being converted; provided  that no such
payment shall be required (1) if the Issuer has specified a Redemption Date
that is after a Record Date and on or prior to the corresponding Interest
Payment Date, (2) to the extent of any overdue interest and Additional
Interest, if any overdue interest and Additional Interest, as applicable,
exists at the time of conversion with respect to such Notes, or (3) in respect
of any conversion that occurs after the Record Date for the interest payment
due on September 15, 2011.

In the event the
holder surrenders this Note for conversion in connection with a Change in
Control resulting from a transaction described in clause (1) or (2) of the
definition of such term, the Issuer shall increase the applicable Conversion
Rate in accordance with the provisions of Section 13.13 of the Indenture.

In the event that shares
of Common Stock are issued upon conversion of Notes, no fractional shares shall
be issued upon such conversion, but an adjustment and payment in cash will be
made, as provided in the Indenture, in respect of any fraction of a share which
would otherwise be issuable upon such conversion.

A Note in respect
of which a holder has submitted a Repurchase Notice may be converted only if
such holder validly withdraws such Repurchase Notice in accordance with the
terms of the Indenture.

If an Event of Default
(other than an Event of Default specified in Section 6.01(h), 6.01(i) and
6.01(j) of the Indenture) with respect to the Issuer) shall occur and be
continuing, the principal of, and accrued and unpaid interest on, the Notes may
be declared to be due and payable in the manner specified in the
Indenture.  If an Event of Default
specified in Section 6.01(h), 6.01(i) or 6.01(j) of the Indenture shall occur
with respect to the Issuer, the principal of, and interest accrued and unpaid
on, the Notes shall be immediately and automatically due and payable without
necessity of further action. Subject to the provisions of the Indenture, the
holders of not less than a majority in aggregate principal amount of the Notes
at the time outstanding may, on behalf of the holders of all of the Notes,
waive any past default or Event of Default, subject to exceptions set forth in
the Indenture.  Upon any such waiver,
said default shall for all purposes of this Note and the Indenture be deemed to
have been cured and to be not continuing, but no such waiver shall extend to
any subsequent or other default or impair any right consequent thereon.

The Indenture contains
provisions permitting the Issuer and the Trustee, with the consent of the
holders of not less than a majority in aggregate principal amount of the Notes
at the time outstanding, to execute supplemental indentures to modify
provisions of the Indenture, subject to exceptions permitting the modification
of the Indenture without the consent of any holder of 

 A-7
 

 

Notes or requiring
the consent of each holder of a Note affected by such modification all as set
forth in Article 9 of the Indenture.

The Notes are issuable in
fully registered form, without coupons, in denominations of $1,000 principal
amount and any multiple of $1,000.  At
the office or agency of the Issuer referred to on the face hereof, and in the
manner and subject to the limitations provided in the Indenture, without
payment of any service charge but with payment of a sum sufficient to cover any
tax, assessment or other governmental charge that may be imposed in connection
with any registration or exchange of Notes, Notes may be exchanged for a like
aggregate principal amount of Notes of any other authorized denominations. Upon
surrender for registration of transfer of any Note to the Note Registrar or any
co-registrar, and satisfaction of the requirements for such transfer set forth
in the Indenture, the Issuer shall execute, and the Trustee shall authenticate
and deliver, in the name of the designated transferee or transferees, one or
more new Notes of any authorized denominations and of a like aggregate
principal amount and bearing such restrictive legends as may be required by the
Indenture.  No service charge shall be
made to any holder for any registration of transfer or exchange of Notes, but
the Issuer may require payment by the holder of a sum sufficient to cover any
tax, assessment or other governmental charge that may be imposed in connection
with any registration of transfer or exchange of Notes.

The Issuer, the Trustee,
any Paying Agent, any Conversion Agent and any Note Registrar may deem the
Person in whose name this Note shall be registered upon the Note Register to
be, and may treat it as, the absolute owner of this Note (whether or not this
Note shall be overdue and notwithstanding any notation of ownership or other
writing thereon made by any Person other than the Issuer or any Note Registrar)
for the purpose of receiving payment of or on account of the principal of, and
interest on this Note, for conversion of this Note and for all other purposes;
and neither the Issuer or the Trustee nor any Paying Agent, Conversion Agent or
any Note Registrar shall be affected by any notice to the contrary.  All such payments so made to any holder for
the time being, or upon its order, shall be valid, and, to the extent of the
sum or sums so paid, effectual to satisfy and discharge the liability for
monies payable upon any this Note.

No recourse for the
payment of the principal of or interest on this Note, or for any claim based
hereon or otherwise in respect hereof, and no recourse under or upon any
obligation, covenant or agreement of the Issuer in the Indenture or any
supplemental indenture or in any Note, or because of the creation of any
indebtedness represented hereby, shall be had against any incorporator,
stockholder, partner, member, manager, employee, agent, officer, director or
subsidiary, as such, past, present or future, of the Issuer or any of the
Issuer’s Subsidiaries or of any successor thereto, either directly or through
the Issuer or any of the Issuer’s Subsidiaries or of any successor thereto,
whether by virtue of any constitution, statute or rule of law, or by the
enforcement of any assessment or penalty or otherwise; it being expressly
understood that all such liability is hereby expressly waived and released as a
condition of, and as consideration for, the execution of the Indenture and the
issue of this Note.

In the case of any
conflict between the provisions of this Note and the Indenture, the provisions
of the Indenture shall control. The Indenture and this Note shall be governed
by, and construed in accordance with, the laws of the state of New York.

 A-8
 

 

In addition to the rights
provided to holders of Notes under the Indenture, holders shall have all the
rights set forth in the Registration Rights Agreement, dated as of October 12,
2006, between the Issuer and the Initial Purchasers named therein.

 A-9
 

 

 

ABBREVIATIONS

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

	
  TEN-COM -

  	
  as tenants in common

  	
  UNIF GIFT MIN ACT -       

  	
   

  
	
   

  	
   

  	
  Custodian      

  	
   

  
	
  TEN-ENT -

  	
  as tenant by the entireties

  	
  (Cust)   (Minor)

  	
   

  
	
  JT-TEN -

  	
  as joint tenants with right 

  	
  under Uniform Gifts to Minors Act

  	
   

  
	
   

  	
  of survivorship and not as 

  	
   

  	
   

  
	
   

  	
  tenants in common

  	
  (State)

  	
   

  

 

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

 A-10

 

CONVERSION NOTICE

TO:         UNITED DOMINION REALTY
TRUST, INC.

U.S. BANK NATIONAL ASSOCIATION, as Trustee

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

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature(s)

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature
  Guarantee

  

 

 A-11
 

 

Fill in the registration
of shares of Common Stock, if any, if to be issued, and Notes if to be
delivered, and the person to whom cash and payment for fractional shares is to
be made, if to be made, other than to and in the name of the registered holder:

	
  Please print name and
  address

  
	
   

  
	
   

  
	
   

  	
   

  
	
  (Name)

  
	
   

  
	
   

  
	
   

  	
   

  
	
  (Street Address)

  
	
   

  
	
   

  
	
   

  	
   

  
	
  (City, State and
  Zip Code)

  
	
   

  
	
   

  
	
  Principal amount
  to be converted

  
	
   (if less than all):

  
	
   

  
	
  $

  	
   

  	
   

  
	
   

  
	
  Social Security
  or Other Taxpayer

  
	
   Identification Number:

  
	
   

  
	
   

  
	
   

  	
   

  
				

 

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

 A-12
 

 

REPURCHASE NOTICE

TO:         UNITED DOMINION REALTY
TRUST, INC.

U.S. BANK NATIONAL ASSOCIATION

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

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

Note Certificate Number:                                               

Principal amount to be
repurchased (if less than all, must be $1,000 or whole multiples thereof):                       

Social Security or Other Taxpayer
Identification Number:                              

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature(s)

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature
  Guarantee

  

 

 A-13
 

 

ASSIGNMENT

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

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

o            To United Dominion Realty Trust, Inc. or a
subsidiary thereof; or

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

o            Pursuant to any other
available exemption from registration under the Securities Act of 1933, as
amended, including the exemption provided by Rule 144 thereunder; or

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

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

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature(s)

  
	
   

  	
   

  
	
   

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

  

 

 A-14
 

 

 

	
  

  	
   

  	
   

  
	
   

  	
  Signature
  Guarantee

  

 

NOTICE:  The signature on this Assignment must
correspond with the name as written upon the face of the Note in every
particular without alteration or enlargement or any change whatever.

 A-15
 

 

Schedule
I

UNITED
DOMINION REALTY TRUST, INC.

3.625% CONVERTIBLE SENIOR NOTES DUE 2011

	
  Date

  	
   

  	
  Principal Amount

  	
   

  	
  Notation Explaining

  Principal Amount

  Recorded

  	
   

  	
  Authorized

  Signature of Trustee

  or Custodian

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 A-16Exhibit 10.1

FOURTH AMENDMENT
AGREEMENT

This FOURTH
AMENDMENT AGREEMENT (this “Amendment”) is made as of the 29th day of September,
2006 among:

(a)           EPIQ SYSTEMS, INC.,
a Missouri corporation (“Borrower”);

(b)           the Lenders, as
defined in the Credit Agreement, as hereinafter defined;

(c)           KEYBANK NATIONAL
ASSOCIATION, as lead arranger, sole book runner and administrative agent for
the Lenders under the Credit Agreement (“Agent”);

(d)           NATIONAL CITY BANK
OF THE MIDWEST, as co-documentation agent; and

(e)           SILICON VALLEY BANK,
as co-documentation agent.

WHEREAS, Borrower,
Lenders and Agent are parties to that certain Amended and Restated Credit and
Security Agreement, dated as of November 15, 2005, that provides, among other
things, for loans and letters of credit aggregating One Hundred Twenty-Five
Million Dollars ($125,000,000), all upon certain terms and conditions (as
amended and as the same may from time to time be further amended, restated or
otherwise modified, the “Credit Agreement”);

WHEREAS, Borrower,
Agent and the Lenders desire to amend the Credit Agreement to modify certain
provisions thereof and add certain provisions thereto;

WHEREAS, each
capitalized term used herein and defined in the Credit Agreement, but not
otherwise defined herein, shall have the meaning given such term in the Credit
Agreement; and

WHEREAS, unless
otherwise specifically provided herein, the provisions of the Credit Agreement
revised herein are amended effective as of the date of this Amendment;

NOW, THEREFORE, in
consideration of the premises and of the mutual covenants herein and for other
valuable consideration, Borrower, Agent and the Lenders agree as follows:

1.             Amendment to Financial Covenants.  Section 5.7 of the Credit Agreement is hereby
amended to delete subsections (a) and (b) therefrom and to insert in place
thereof, respectively, the following:

(a)           Leverage
Ratio.  The Companies shall not
suffer or permit at any time the Leverage Ratio to exceed (i) 3.50 to 1.00 on
the Closing Date through March 30, 2007, (ii) 3.25 to 1.00 on March 31, 2007
through September 29, 2007, and (iii) 3.00 to 1.00 on September 30, 2007 and
thereafter.

(b)           Senior
Leverage Ratio.  The Companies shall
not suffer or permit at any time the Senior Leverage Ratio to exceed (i) 2.50
to 1.00 on the Closing Date through March 30, 2007, (ii) 2.25 to 1.00 on March
31, 2007 through September 29, 2007, and (iii) 2.00 to 1.00 on September 30,
2007 and thereafter.

 1
 

 

2.             Retroactive Amendment to
Post-Closing Items.  Section 4.3 of
the Credit Agreement is hereby retroactively amended, effective as of the
Closing Date, to delete subsection (a) therefrom and to insert in place thereof
the following:

(a)           Control
Agreement.  No later than thirty (30)
days after the Closing Date (unless a longer period is provided for in this
Section 4.3(a) or otherwise agreed to by Agent), Borrower shall have delivered
to Agent an executed copy of a Control Agreement, in form and substance
reasonably satisfactory to Agent, for each deposit account or securities
account maintained by a Credit Party, unless (i) a Control Agreement was
already provided for such deposit account in connection with the Original
Credit Agreement, or (ii) otherwise agreed by Agent; provided that, in the
event Borrower is not able to deliver any such Control Agreement, Borrower
shall use its best efforts to move such account to a depository institution
that can provide such Control Agreement as soon as practicable. Notwithstanding
anything in this Agreement to the contrary, Borrower will not be required to
deliver a Control Agreement for the securities account of Borrower (#48604181)
held at Silicon Valley Bank, so long as (i) if the Leverage Ratio is equal to
or greater than 2.50 to 1.00, the balance in such account does not exceed Five
Million Dollars ($5,000,000) at any time, (ii) if the Leverage Ratio is less
than 2.50 to 1.00 but greater than or equal to 2.00 to 1.00, the balance in
such account does not exceed Ten Million Dollars ($10,000,000) at any time, or
(iii) the Leverage Ratio is less than 2.00 to 1.00.

3.             Closing Items.  Concurrently with the execution of this
Amendment, Borrower shall:

(a)          
cause each Guarantor of Payment to execute the attached Acknowledgement and
Agreement; and

(b)           pay
all legal fees and expenses of Agent in connection with this Amendment.

4.             Representations and Warranties.  Borrower hereby represents and warrants to
Agent and the Lenders that (a) Borrower has the legal power and authority to
execute and deliver this Amendment; (b) the officers executing this
Amendment have been duly authorized to execute and deliver the same and bind
Borrower with respect to the provisions hereof; (c) the execution and
delivery hereof by Borrower and the performance and observance by Borrower of
the provisions hereof do not violate or conflict with the organizational
agreements of Borrower or any law applicable to Borrower or result in a breach
of any provision of or constitute a default under any other agreement,
instrument or document binding upon or enforceable against Borrower;
(d) no Default or Event of Default exists under the Credit Agreement, nor
will any occur immediately after the execution and delivery of this Amendment
or by the performance or observance of any provision hereof; (e) Borrower is
not aware of any claim or offset against, or defense or counterclaim to,
Borrower’s obligations or liabilities under the Credit Agreement or any Related
Writing; and (f) this Amendment constitutes a valid and binding obligation
of Borrower in every respect, enforceable in accordance with its terms.

5.             References to Credit Agreement.  Each reference that is made in the Credit
Agreement or any Related Writing shall hereafter be construed as a reference to
the Credit Agreement as amended hereby. Except as herein otherwise specifically
provided, all terms and provisions of the Credit Agreement are confirmed and
ratified and shall remain in full force and effect and be unaffected hereby.
This Amendment is a Related Writing.

6.             Waiver.  Borrower, by signing below, hereby waives and
releases Agent and each of the Lenders, and their respective directors,
officers, employees, attorneys, affiliates and subsidiaries, from any and all
claims, offsets, defenses and counterclaims of which Borrower is aware, such
waiver and 

 2
 

 

release being with full
knowledge and understanding of the circumstances and effect thereof and after
having consulted legal counsel with respect thereto.

7.             Counterparts.  This Amendment may be executed in any number
of counterparts, by different parties hereto in separate counterparts and by
facsimile signature, each of which when so executed and delivered shall be
deemed to be an original and all of which taken together shall constitute but
one and the same agreement.

8.             Headings.  The headings, captions and arrangements used
in this Amendment are for convenience only and shall not affect the
interpretation of this Amendment.

9.             Severability.  Any term or provision of this Amendment held
by a court of competent jurisdiction to be invalid or unenforceable shall not
impair or invalidate the remainder of this Amendment and the effect thereof
shall be confined to the term or provision so held to be invalid or
unenforceable.

10.           Governing Law.  The rights and obligations of all parties
hereto shall be governed by the laws of the State of Ohio, without regard to
principles of conflicts of laws.

[Remainder of page intentionally left blank.]

 3

JURY TRIAL WAIVER.  BORROWER, THE LENDERS AND AGENT, TO THE
EXTENT PERMITTED BY LAW, EACH HEREBY WAIVES ANY RIGHT TO HAVE A JURY
PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR
OTHERWISE, AMONG BORROWER, THE LENDERS AND AGENT, OR ANY THEREOF, ARISING OUT
OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP
ESTABLISHED AMONG THEM IN CONNECTION WITH THIS AMENDMENT OR ANY NOTE OR OTHER
INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR
THE TRANSACTIONS RELATED THERETO.

IN WITNESS WHEREOF, the parties have executed and
delivered this Amendment as of the date first set forth above.

	
  

  	
  EPIQ SYSTEMS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Elizabeth M. Braham

  
	
   

  	
   

  	
  Elizabeth M. Braham

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KEYBANK NATIONAL ASSOCIATION,

     as Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NATIONAL CITY BANK OF THE MIDWEST,

     as Co-Documentation Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SILICON VALLEY BANK,

     as Co-Documentation Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
									

 

 Signature Page to
 Fourth Amendment Agreement
 

 

ACKNOWLEDGMENT AND
AGREEMENT

The undersigned consent
and agree to and acknowledge the terms of the foregoing Fourth Amendment
Agreement dated as of September 29, 2006. 
The undersigned further agree that the obligations of the undersigned
pursuant to the Guaranty of Payment executed by the undersigned shall remain in
full force and effect and be unaffected hereby.

The undersigned hereby
waive and release Agent and the Lenders and their respective directors,
officers, employees, attorneys, affiliates and subsidiaries from any and all
claims, offsets, defenses and counterclaims of which the undersigned are aware,
such waiver and release being with full knowledge and understanding of the circumstances
and effect thereof and after having consulted legal counsel with respect
thereto.

JURY TRIAL WAIVER.  THE UNDERSIGNED, TO THE EXTENT PERMITTED BY
LAW, HEREBY WAIVE ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY
DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG BORROWERS,
AGENT, THE LENDERS AND THE UNDERSIGNED, OR ANY THEREOF, ARISING OUT OF, IN
CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED
AMONG THEM IN CONNECTION WITH THIS AMENDMENT OR ANY NOTE OR OTHER INSTRUMENT,
DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE
TRANSACTIONS RELATED THERETO.

 

	
  BANKRUPTCY SERVICES LLC

  	
  FINANCIAL BALLOTING GROUP, LLC

  
	
  EPIQ SYSTEMS
  ACQUISITION, INC.

  	
   

  
	
  POORMAN-DOUGLAS
  CORPORATION

  	
  By:

  	
  /s/ Elizabeth M. Braham

  
	
  HILSOFT, INC.

  	
   

  	
  Elizabeth M. Braham

  
	
   

  	
   

  	
  Secretary, Chief Financial Officer and

     Treasurer

  
	
  By:

  	
  /s/   Elizabeth
  M. Braham

  	
   

  	
   

  
	
   

  	
  Elizabeth M.
  Braham

  	
   

  
	
   

  	
  Secretary

  	
  NMATRIX, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Elizabeth M. Braham

  
	
  NOVARE, INC.

  	
   

  	
  Elizabeth M. Braham

  
	
   

  	
   

  	
  Executive Vice President and Chief Financial

  Officer

  
	
  By:

  	
  /s/ Elizabeth
  M. Braham

  	
   

  	
   

  
	
   

  	
  Elizabeth M.
  Braham

  	
   

  
	
   

  	
  Treasurer and
  Secretary

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  EPIQ ADVISORY
  SERVICES, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Elizabeth
  M. Braham

  	
   

  	
   

  
	
   

  	
  Elizabeth M.
  Braham

  	
   

  
	
   

  	
  Executive Vice
  President and Chief

     Financial Officer

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