Document:

Exhibit 4.2

 

EXECUTION
COPY

 

 

DRS TECHNOLOGIES,
INC.

 

AND EACH OF THE
GUARANTORS PARTY HERETO

 

75/8%
SENIOR SUBORDINATED NOTES DUE 2018

 

 

FIRST SUPPLEMENTAL
INDENTURE

 

Dated as of January 31,
2006

 

 

THE BANK OF NEW
YORK

 

Trustee

 

 

 

 

CROSS-REFERENCE TABLE*

 

	
  Trust Indenture

  Act Section

  	
   

  	
  Indenture
  Section

  
	
   

  	
   

  	
   

  
	
  310(a)(1)

  	
   

  	
  7.10

  
	
  (a)(2)

  	
   

  	
  7.10

  
	
  (a)(3)

  	
   

  	
  N.A.

  
	
  (a)(4)

  	
   

  	
  N.A.

  
	
  (a)(5)

  	
   

  	
  7.10

  
	
  (b)

  	
   

  	
  7.10

  
	
  (c)

  	
   

  	
  N.A.

  
	
  311(a)

  	
   

  	
  7.11

  
	
  (b)

  	
   

  	
  7.11

  
	
  (c)

  	
   

  	
  N.A.

  
	
  312(a)

  	
   

  	
  2.05

  
	
  (b)

  	
   

  	
  13.03

  
	
  (c)

  	
   

  	
  13.03

  
	
  313(a)

  	
   

  	
  7.06

  
	
  (b)(2)

  	
   

  	
  7.06; 7.07

  
	
  (c)

  	
   

  	
  7.06

  
	
  (d)

  	
   

  	
  7.06

  
	
  314(a)

  	
   

  	
  4.03; 13.02; 13.05

  
	
  (c)(1)

  	
   

  	
  13.04

  
	
  (c)(2)

  	
   

  	
  13.04

  
	
  (c)(3)

  	
   

  	
  N.A.

  
	
  (e)

  	
   

  	
  13.05

  
	
  (f)

  	
   

  	
  N.A.

  
	
  315(a)

  	
   

  	
  7.01

  
	
  (b)

  	
   

  	
  7.05,13.02

  
	
  (c)

  	
   

  	
  7.01

  
	
  (d)

  	
   

  	
  7.01

  
	
  (e)

  	
   

  	
  6.11

  
	
  316(a) (last
  sentence)

  	
   

  	
  2.09

  
	
  (a)(1)(A)

  	
   

  	
  6.05

  
	
  (a)(1)(B)

  	
   

  	
  6.04

  
	
  (a)(2)

  	
   

  	
  N.A.

  
	
  (b)

  	
   

  	
  6.07

  
	
  (c)

  	
   

  	
  2.12

  
	
  317(a)(1)

  	
   

  	
  6.08

  
	
  (a)(2)

  	
   

  	
  6.09

  
	
  (b)

  	
   

  	
  2.04

  
	
  318(a)

  	
   

  	
  N.A.

  
	
  (b)

  	
   

  	
  N.A.

  
	
  (c)

  	
   

  	
  13.01

  

 

N.A. means not applicable.

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

 

 

TABLE OF
CONTENTS

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE 1                                   DEFINITIONS
  AND INCORPORATION BY REFERENCE

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 1.01

  	
  Definitions

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 1.02

  	
  Other Definitions

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 1.03

  	
  Incorporation by
  Reference of Trust Indenture Act

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 1.04

  	
  Rules of
  Construction

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 2                                   THE
  NOTES

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.01

  	
  Form and Dating

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.02

  	
  Execution and
  Authentication

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.03

  	
  Registrar and Paying
  Agent

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.04

  	
  Paying Agent to Hold
  Money in Trust

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.05

  	
  Holder Lists

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.06

  	
  Transfer and Exchange

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.07

  	
  Replacement Notes

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.08

  	
  Outstanding Notes

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.09

  	
  Treasury Notes

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.10

  	
  Temporary Notes

  	
  34

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.11

  	
  Cancellation

  	
  34

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.12

  	
  Defaulted Interest

  	
  34

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.13

  	
  CUSIP Numbers

  	
  34

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 3                                   REDEMPTION
  AND PREPAYMENT

  	
  35

  
	
   

  	
   

  
	
   

  	
  Section 3.01

  	
  Notices to Trustee

  	
  35

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.02

  	
  Selection of Notes to
  Be Redeemed or Purchased

  	
  35

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.03

  	
  Notice of Redemption

  	
  35

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.04

  	
  Effect of Notice of
  Redemption

  	
  36

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.05

  	
  Deposit of Redemption
  or Purchase Price

  	
  36

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.06

  	
  Notes Redeemed or
  Purchased in Part

  	
  37

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.07

  	
  Optional Redemption

  	
  37

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.08

  	
  Mandatory Redemption

  	
  38

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.09

  	
  Offer to Purchase by
  Application of Excess Proceeds

  	
  38

  

 

i

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE 4                                   COVENANTS

  	
  40

  
	
   

  	
   

  
	
   

  	
  Section 4.01

  	
  Payment of Notes

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.02

  	
  Maintenance of Office
  or Agency

  	
  41

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.03

  	
  Reports

  	
  41

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.04

  	
  Compliance Certificate

  	
  42

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.05

  	
  Taxes

  	
  42

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.06

  	
  Stay, Extension and
  Usury Laws

  	
  42

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.07

  	
  Restricted Payments

  	
  43

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.08

  	
  Dividend and Other
  Payment Restrictions Affecting Subsidiaries

  	
  46

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.09

  	
  Incurrence of
  Indebtedness and Issuance of Preferred Stock

  	
  48

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.10

  	
  Asset Sales

  	
  52

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.11

  	
  Transactions with
  Affiliates

  	
  54

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.12

  	
  Liens

  	
  56

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.13

  	
  Business Activities

  	
  56

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.14

  	
  Corporate Existence

  	
  56

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.15

  	
  Offer to Repurchase
  Upon Change of Control

  	
  56

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.16

  	
  No Layering of Debt

  	
  58

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.17

  	
  Limitation on Sale and
  Leaseback Transactions

  	
  58

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.18

  	
  Payments for Consent

  	
  59

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.19

  	
  Additional Subsidiary
  Guarantees

  	
  59

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.20

  	
  Designation of
  Restricted and Unrestricted Subsidiaries

  	
  59

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.21

  	
  Changes in Covenants
  when Notes Rated Investment Grade

  	
  59

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 5                                   SUCCESSORS

  	
  60

  
	
   

  	
   

  
	
   

  	
  Section 5.01

  	
  Merger, Consolidation,
  or Sale of Assets

  	
  60

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.02

  	
  Successor Corporation
  Substituted

  	
  61

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 6                                   DEFAULTS
  AND REMEDIES

  	
  62

  
	
   

  	
   

  
	
   

  	
  Section 6.01

  	
  Events of Default

  	
  62

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.02

  	
  Acceleration

  	
  64

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.03

  	
  Other Remedies

  	
  64

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.04

  	
  Waiver of Past Defaults

  	
  64

  

 

ii

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.05

  	
  Control by Majority

  	
  65

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.06

  	
  Limitation on Suits

  	
  65

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.07

  	
  Rights of Holders of Notes
  to Receive Payment

  	
  65

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.08

  	
  Collection Suit by
  Trustee

  	
  65

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.09

  	
  Trustee May File
  Proofs of Claim

  	
  66

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.10

  	
  Priorities

  	
  66

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.11

  	
  Undertaking for Costs

  	
  66

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 7                                   TRUSTEE

  	
  67

  
	
   

  	
   

  
	
   

  	
  Section 7.01

  	
  Duties of Trustee

  	
  67

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.02

  	
  Rights of Trustee

  	
  68

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.03

  	
  Individual Rights of
  Trustee

  	
  69

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.04

  	
  Trustee’s Disclaimer

  	
  69

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.05

  	
  Notice of Defaults

  	
  69

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.06

  	
  Reports by Trustee to
  Holders of the Notes

  	
  69

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.07

  	
  Compensation and
  Indemnity

  	
  70

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.08

  	
  Replacement of Trustee

  	
  70

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.09

  	
  Successor Trustee by
  Merger, etc

  	
  71

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.10

  	
  Eligibility;
  Disqualification

  	
  71

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.11

  	
  Preferential Collection
  of Claims Against Company

  	
  72

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 8                                   LEGAL
  DEFEASANCE AND COVENANT DEFEASANCE

  	
  72

  
	
   

  	
   

  
	
   

  	
  Section 8.01

  	
  Option to Effect Legal
  Defeasance or Covenant Defeasance

  	
  72

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.02

  	
  Legal Defeasance and
  Discharge

  	
  72

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.03

  	
  Covenant Defeasance

  	
  73

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.04

  	
  Conditions to Legal or
  Covenant Defeasance

  	
  73

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.05

  	
  Deposited Money and
  Government Securities to be Held in Trust; Other Miscellaneous Provisions

  	
  74

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.06

  	
  Repayment to Company

  	
  75

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.07

  	
  Reinstatement

  	
  75

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 9                                   AMENDMENT,
  SUPPLEMENT AND WAIVER

  	
  75

  
	
   

  	
   

  
	
   

  	
  Section 9.01

  	
  Without Consent of
  Holders of Notes

  	
  75

  

 

iii

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.02

  	
  With Consent of Holders
  of Notes

  	
  76

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.03

  	
  Compliance with Trust
  Indenture Act

  	
  78

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.04

  	
  Revocation and Effect
  of Consents

  	
  78

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.05

  	
  Notation on or Exchange
  of Notes

  	
  78

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.06

  	
  Trustee to Sign
  Amendments, etc

  	
  79

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 10                             SUBORDINATION

  	
  79

  
	
   

  	
   

  
	
   

  	
  Section 10.01

  	
  Agreement to
  Subordinate

  	
  79

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.02

  	
  Liquidation;
  Dissolution; Bankruptcy

  	
  79

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.03

  	
  Default on Designated
  Senior Debt

  	
  79

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.04

  	
  Acceleration of Notes

  	
  80

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.05

  	
  When Distribution Must
  Be Paid Over

  	
  80

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.06

  	
  Notice by Company

  	
  81

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.07

  	
  Subrogation

  	
  81

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.08

  	
  Relative Rights

  	
  81

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.09

  	
  Subordination May Not
  Be Impaired by Company

  	
  81

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.10

  	
  Distribution or Notice
  to Representative

  	
  81

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.11

  	
  Rights of Trustee and
  Paying Agent

  	
  82

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.12

  	
  Authorization to Effect
  Subordination

  	
  82

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.13

  	
  Amendments

  	
  82

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.14

  	
  Trustee Not Fiduciary
  for Holders of Senior Debt

  	
  82

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 11                             SUBSIDIARY
  GUARANTEES

  	
  83

  
	
   

  	
   

  
	
   

  	
  Section 11.01

  	
  Guarantee

  	
  83

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.02

  	
  Subordination of
  Subsidiary Guarantee

  	
  84

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.03

  	
  Limitation on Guarantor
  Liability

  	
  84

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.04

  	
  Execution and Delivery
  of Subsidiary Guarantee

  	
  84

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.05

  	
  Guarantors May Consolidate,
  etc., on Certain Terms

  	
  85

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.06

  	
  Releases

  	
  86

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 12                             SATISFACTION
  AND DISCHARGE

  	
  86

  
	
   

  	
   

  
	
   

  	
  Section 12.01

  	
  Satisfaction and
  Discharge

  	
  86

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 12.02

  	
  Application of Trust
  Money

  	
  87

  

 

iv

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE 13                             MISCELLANEOUS

  	
  88

  
	
   

  	
   

  
	
   

  	
  Section 13.01

  	
  Trust Indenture Act
  Controls

  	
  88

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.02

  	
  Notices

  	
  88

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.03

  	
  Communication by
  Holders of Notes with Other Holders of Notes

  	
  89

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.04

  	
  Certificate and Opinion
  as to Conditions Precedent

  	
  89

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.05

  	
  Statements Required in
  Certificate or Opinion

  	
  89

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.06

  	
  Rules by Trustee
  and Agents

  	
  90

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.07

  	
  No Personal Liability
  of Directors, Officers, Employees and Stockholders

  	
  90

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.08

  	
  Governing Law

  	
  90

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.09

  	
  No Adverse
  Interpretation of Other Agreements

  	
  90

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.10

  	
  Successors

  	
  90

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.11

  	
  Severability

  	
  90

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.12

  	
  Counterpart Originals

  	
  91

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.13

  	
  Table of Contents,
  Headings, etc

  	
  91

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.14

  	
  Supremacy

  	
  91

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.15

  	
  Force Majeure

  	
  91

  
	
   

  	
   

  	
   

  	
   

  
	
  EXHIBITS

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  FORM OF NOTE

  	
   

  
	
  Exhibit B

  	
  FORM OF SUBSIDIARY
  GUARANTEE

  	
   

  
	
  Exhibit C

  	
  FORM OF SUPPLEMENTAL
  INDENTURE

  	
   

  
					

 

v

 

FIRST
SUPPLEMENTAL INDENTURE dated as of January 31, 2006 among DRS Technologies, Inc.,
a Delaware corporation (the “Company”), the Guarantors (as defined
herein) and The Bank of New York, a New York banking corporation, as trustee
(the “Trustee”).

 

WHEREAS, the
Company and the Trustee have entered into an Indenture providing for the
issuance of subordinated debt securities, dated as of January 31, 2006
(the “Base Indenture” and, as amended and supplemented by this
Supplemental Indenture, the “Indenture”);

 

WHEREAS,
Sections 301 and 901 of the Base Indenture provide, among other things, that
the Company and the Trustee may enter into a supplemental indenture to the Base
Indenture for, among other things, the purpose of establishing the designation,
form, terms and provisions of Securities of any series (as defined in the Base
Indenture);

 

WHEREAS,
clause (5) of Section 901 of the Base Indenture provides that the
Company and the Trustee may enter into a supplemental indenture adding to,
changing or eliminating any provision of the Base Indenture with respect to one
or more series of Securities (as defined in the Base Indenture); provided,
that any such change shall become effective only when there is no such Security
outstanding;

 

WHEREAS, at
the time this Supplemental Indenture is being executed and delivered there are
no Securities outstanding;

 

WHEREAS, the
Company desires to establish and issue a new series of Securities, the Company’s
75/8% Senior Notes Subordinated due 2018 (the “ Notes”,
which term shall include any Additional Notes issued under this Indenture),
pursuant to the Base Indenture, as modified by this Supplemental Indenture; and

 

WHEREAS, the
Company desires to enter into a supplemental indenture pursuant to Sections 301
and 901 of the Base Indenture to supplement the Base Indenture to establish the
form, terms and provisions of the Notes and to make deletions, modifications
and additions to the Base Indenture pertaining to the Notes as contemplated by
Sections 301 and 901 of the Base Indenture;

 

NOW,
THEREFORE, in consideration of the foregoing, the parties hereto, for the
benefit of each other and for the equal and proportionate benefit of all
Persons who hereafter become Holders (as defined), hereby enter into this
Supplemental Indenture which amends, modifies, supplements and restates (as
applicable) the Base Indenture with respect to (and only with respect to) the
Notes, as follows:

 

All section references
contained herein refer to the sections of the Supplemental Indenture unless
otherwise indicated.

 

 

ARTICLE 1

 

DEFINITIONS AND INCORPORATION

BY REFERENCE

 

Section 1.01                                Definitions.  For the purposes of this series of Securities
(as defined in the Base Indenture), this Section 1.01 shall amend and
restate in its entirety Section 101 of the Base Indenture.

 

“2013
Senior Subordinated Notes” means the $550 million aggregate principal
amount of 67/8% Senior Subordinated Notes issued by the
Company prior to January 31, 2006.

 

 “Acquired Debt” means, with respect to
any specified Person:

 

(1)                                  Indebtedness
of any other Person existing at the time such other Person is merged with or
into or became a Subsidiary of such specified Person, whether or not such
Indebtedness is incurred in connection with, or in contemplation of, such other
Person merging with or into, or becoming a Restricted Subsidiary of, such
specified Person; and

 

(2)                                  Indebtedness
secured by a Lien encumbering any asset acquired by such specified Person.

 

“Additional
Notes” means an unlimited principal amount of additional Notes (other than
the Initial Notes) issued under this Indenture in accordance with Sections
2.02 and 4.09 hereof, as part of the same series as the Initial
Notes.

 

“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 purposes of
this definition, “control,” as used with respect to any Person, means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of such Person, whether through the
ownership of voting securities, by agreement or otherwise; provided that
beneficial ownership of 10% or more of the Voting Stock of a Person will be
deemed to be control.  For purposes of
this definition, the terms “controlling,” “controlled by” and “under common
control with” have correlative meanings.

 

“Agent”
means any Registrar, co-registrar, Paying Agent or additional paying agent.

 

“Applicable
Procedures” means, with respect to any transfer or exchange of or for
beneficial interests in any Global Note, the rules and procedures of the
Depositary that apply to such transfer or exchange.

 

“Asset Sale”
means:

 

(1)                                  the
sale, lease, conveyance or other disposition of any assets or rights; provided
that the sale, conveyance or other disposition of all or substantially all of
the assets of the Company and its Restricted Subsidiaries taken as a whole will
be governed by Section 4.15 or 5.01 of this Indenture not by
Section 4.10 of this Indenture; and

 

2

 

(2)                                  the
issuance of Equity Interests in any of the Company’s Restricted Subsidiaries or
the sale of Equity Interests in any of its Subsidiaries.

 

Notwithstanding
the preceding, none of the following items will be deemed to be an Asset Sale:

 

(1)                                  any
single transaction or series of related transactions that involves assets
having a Fair Market Value of less than $10.0 million;

 

(2)                                  a
sale or transfer of assets between or among the Company and its Restricted
Subsidiaries;

 

(3)                                  an
issuance of Equity Interests by a Restricted Subsidiary of the Company to the
Company or to a Restricted Subsidiary of the Company;

 

(4)                                  the
sale or lease of products, services or accounts receivable in the ordinary
course of business and any sale or other disposition of damaged, worn-out or
obsolete assets;

 

(5)                                  the
sale or other disposition of cash or Cash Equivalents;

 

(6)                                  the
granting of Liens not otherwise prohibited by this Indenture;

 

(7)                                  surrender
or waiver of contract rights or the settlement, release or surrender of
contract, tort or other claims;

 

(8)                                  a
Restricted Payment that does not violate Section 4.07 of this
Indenture or a Permitted Investment; and

 

(9)                                  the
sale or discount without recourse of accounts receivable arising in the
ordinary course of business in connection with the compromise or collection
thereof.

 

“Attributable
Debt” in respect of a sale and leaseback transaction means, at the time of
determination, the present value of the obligation of the lessee for net rental
payments during the remaining term of the lease included in such sale and
leaseback transaction including any period for which such lease has been
extended or may, at the option of the lessor, be extended.  Such present value shall be calculated using
a discount rate equal to the rate of interest implicit in such transaction,
determined in accordance with GAAP; provided, however, that if
such sale and leaseback transaction results in a Capital Lease Obligation, the
amount of Indebtedness represented thereby will be determined in accordance
with the definition of “Capital Lease Obligation.”

 

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

 

“Base
Indenture” has the meaning set forth in the preamble.

 

3

 

“Beneficial
Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5
under the Exchange Act, except that in calculating the beneficial ownership of
any particular “person” (as that term is used in Section 13(d)(3) of
the Exchange Act), such “person” will be deemed to have beneficial ownership of
all securities that such “person” has the right to acquire by conversion or
exercise of other securities, whether such right is currently exercisable or is
exercisable only after the passage of time. 
The terms “Beneficially Owns” and “Beneficially Owned” have a
corresponding meaning.

 

“Board of
Directors” means:

 

(1)                                  with
respect to a corporation, the board of directors of the corporation or any
committee thereof duly authorized to act on behalf of such board;

 

(2)                                  with
respect to a partnership, the Board of Directors of the general partner of the
partnership;

 

(3)                                  with
respect to a limited liability company, the managing member or members or any
controlling committee of managing members thereof; and

 

(4)                                  with
respect to any other Person, the board or committee of such Person serving a
similar function.

 

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

 

“Capital
Lease Obligation” means, at the time any determination is to be made, the
amount of the liability in respect of a capital lease that would at that time
be required to be capitalized on a balance sheet in accordance with GAAP, and
the Stated Maturity thereof shall be the date of the last payment of rent or
any other amount due under such lease prior to the first date upon which such
lease may be prepaid by the lessee without payment of a penalty.

 

“Capital
Stock” means:

 

(1)                                  in
the case of a corporation, corporate stock or other equivalents (however
designated);

 

(2)                                  in
the case of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate
stock;

 

(3)                                  in
the case of a partnership or limited liability company, partnership interests
(whether general or limited) or membership interests; and

 

(4)                                  any
other interest or participation that confers on a Person the right to receive a
share of the profits and losses of, or distributions of assets of, the issuing
Person, but excluding from all of the foregoing any debt securities convertible
into Capital Stock (including the Convertible Notes), whether or not such debt
securities include any right of participation with Capital Stock.

 

4

 

“Cash
Equivalents” means:

 

(1)                                  United
States dollars;

 

(2)                                  securities
issued or directly and fully guaranteed or insured by the United States
government or any agency or instrumentality of the United States government (provided
that the full faith and credit of the United States is pledged in support of
those securities) having maturities of not more than one year from the date of
acquisition;

 

(3)                                  certificates
of deposit and eurodollar time deposits with maturities of one year or less
from the date of acquisition, bankers’ acceptances with maturities not
exceeding six months and overnight bank deposits, in each case, with any
domestic commercial bank having capital and surplus in excess of $500.0 million
and a Thomson Bank Watch Rating of “B” or better;

 

(4)                                  repurchase
obligations with a term of not more than one year for underlying securities of
the types described in clauses (2) and (3) above
entered into with any financial institution meeting the qualifications
specified in clause (3) above;

 

(5)                                  commercial
paper having one of the two highest ratings obtainable from Moody’s Investors
Service, Inc. or Standard & Poor’s Rating Services and in each
case maturing within one year after the date of acquisition;

 

(6)                                  marketable
direct obligations issued by the United States of America or any political
subdivision of any state or any public instrumentality thereof having one of
the two highest ratings obtainable from Moody’s Investors Service, Inc. or
Standard & Poor’s Rating Services and in each case maturing within one
year after the date of acquisition; and

 

(7)                                  money
market funds at least 95% of the assets of which constitute Cash Equivalents of
the kinds described in clauses (1) through (6) of this
definition.

 

“Certificated
Note” means a certificated Note registered in the name of the Holder
thereof and issued in accordance with Section 2.06 hereof,
substantially in the form of Exhibit A hereto.

 

“Change of
Control” means the occurrence of any of the following:

 

(1)                                  the
direct or indirect sale, transfer, conveyance or other disposition (other than
by way of merger or consolidation), in one or a series of related transactions,
of all or substantially all of the properties or assets of the Company and its
Subsidiaries taken as a whole to any “person” (as that term is used in Section 13(d) of
the Exchange Act);

 

(2)                                  the
adoption of a plan relating to the liquidation or dissolution of the Company;

 

(3)                                  the
consummation of any transaction (including, without limitation, any merger or
consolidation) the result of which is that any “person” (as defined above),

 

5

 

directly or indirectly, becomes the Beneficial Owner
of more than 50% of the Voting Stock of the Company, measured by voting power
rather than number of shares; or

 

(4)                                  the
Company consolidates with, or merges with or into, any Person, or any Person
consolidates with, or merges with or into, the Company, in any such event
pursuant to a transaction in which any of the outstanding Voting Stock of the
Company or such other Person is converted into or exchanged for cash,
securities or other property, other than any such transaction where the Voting
Stock of the Company outstanding immediately prior to such transaction is
converted into or exchanged for Voting Stock (other than Disqualified Stock) of
the surviving or transferee Person constituting a majority of the outstanding
shares of such Voting Stock of such surviving or transferee Person (immediately
after giving effect to such issuance).

 

“Company”
means DRS Technologies, Inc. and any and all successors thereto.

 

“Comparable
Treasury Issue” means the United States Treasury security selected by a
Reference Treasury Dealer appointed by the Company as having a maturity
comparable to the remaining term of the Notes (as if the final maturity of the
Notes was February 1, 2011) that would be utilized at the time of the
selection and in accordance with customary financial practice in pricing new
issues of corporate debt securities of comparable maturity to the remaining
term of the relevant Notes (as if the final maturity of the Notes was February 1,
2011).

 

“Comparable
Treasury Price” means, with respect to any redemption date, (1) the
average of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) on the third
Business Day preceding such redemption date, as set forth in the daily
statistical release (or any successor release) published by the Federal Reserve
Bank of New York and designated “Composite 3:30 p.m. Quotations for U.S.
Government Securities” or (2) if such release (or any successor release)
is not published or does not contain such prices on such Business Day, (A) the
average of the Reference Treasury Dealer Quotations (as defined blow) for such
redemption date, after excluding the highest and lowest such Reference Treasury
Dealer Quotation or (B) if the Company obtains fewer than three such
Reference Treasury Dealer Quotations, the average of all such Reference
Treasury Dealer Quotations.

 

“Consolidated
Cash Flow” means, with respect to any specified Person for any period, the
Consolidated Net Income of such Person for such period plus, without
duplication:

 

(1)                                  an
amount equal to any extraordinary loss plus any net loss realized by such
Person or any of its Restricted Subsidiaries in connection with an Asset Sale,
to the extent such losses were deducted in computing such Consolidated Net
Income; plus

 

(2)                                  provision
for taxes based on income or profits of such Person and its Restricted
Subsidiaries for such period, to the extent that such provision for taxes was
deducted in computing such Consolidated Net Income; plus

 

(3)                                  the
Fixed Charges of such Person and its Restricted Subsidiaries for such period,
to the extent that such Fixed Charges were deducted in computing such
Consolidated Net Income; plus

 

6

 

(4)                                  depreciation,
amortization (including amortization of intangibles but excluding amortization
of prepaid cash expenses that were paid in a prior period) and other non-cash
expenses (excluding any such non-cash expense to the extent that it represents
an accrual of or reserve for cash expenses in any future period or amortization
of a prepaid cash expense that was paid in a prior period) of such Person and
its Restricted Subsidiaries for such period to the extent that such
depreciation, amortization and other non-cash expenses were deducted in
computing such Consolidated Net Income; minus

 

(5)                                  non-cash
items increasing such Consolidated Net Income for such period, other than the
accrual of revenue in the ordinary course of business,

 

in each case, on a
consolidated basis and determined in accordance with GAAP.

 

Notwithstanding
the preceding, the provision for taxes based on the income or profits of, and
the depreciation and amortization and other non-cash expenses of, a Restricted
Subsidiary of the Company will be added to Consolidated Net Income to compute
Consolidated Cash Flow of the Company only to the extent that a corresponding
amount would be permitted at the date of determination to be dividended to the
Company by such Restricted Subsidiary without prior governmental approval (that
has not been obtained), and without direct or indirect restriction pursuant to
the terms of its charter and all agreements, instruments, judgments, decrees,
orders, statutes, rules and governmental regulations applicable to that
Restricted Subsidiary or its stockholders.

 

“Consolidated
Net Income” means, with respect to any specified Person for any period, the
aggregate of the Net Income of such Person and its Restricted Subsidiaries for
such period, on a consolidated basis, determined in accordance with GAAP; provided
that:

 

(1)                                  the
Net Income (but not loss) of any Person that is not a Restricted Subsidiary or
that is accounted for by the equity method of accounting will be included only
to the extent of the amount of dividends or similar distributions paid in cash
to the specified Person or a Restricted Subsidiary of the Person;

 

(2)                                  the
Net Income of any Restricted Subsidiary will be excluded to the extent that the
declaration or payment of dividends or similar distributions by that Restricted
Subsidiary of that Net Income is not at the date of determination permitted
without any prior governmental approval (that has not been obtained) or,
directly or indirectly, by operation of the terms of its charter or any
agreement, instrument, judgment, decree, order, statute, rule or
governmental regulation applicable to that Restricted Subsidiary or its
stockholders;

 

(3)                                  the
cumulative effect of a change in accounting principles will be excluded;

 

(4)                                  any
fees and expenses incurred during such period, or any amortization thereof for
such period, in connection with any acquisition, investment, asset disposition,
issuance or repayment of debt, issuance of equity securities, refinancing
transaction or amendment or other modification of any debt instrument and any
charges or non

 

7

 

recurring merger costs incurred during such period as
a result of any such transaction will be excluded;

 

(5)                                  non-cash
minority interest deductions will be excluded;

 

(6)                                  non-cash
charges related to the issuance of stock options will be excluded;

 

(7)                                  restricted
stock amortization expense will be excluded; and

 

(8)                                  notwithstanding
clause (1) above, the Net Income of any Unrestricted Subsidiary
will be excluded, whether or not distributed to the specified Person or one of
its Subsidiaries.

 

“Consolidated
Tangible Assets” means, with respect to the Company as of any date, the
aggregate of the assets of the Company and its Restricted Subsidiaries
excluding goodwill, patents, trade names, trade marks, copyrights, franchises,
experimental expense, organization expense and any other assets properly
classified as intangible assets in accordance with GAAP, as of such date on a
consolidated basis, determined in accordance with GAAP.  In the event that information relating to
Consolidated Tangible Assets is not available as of any date, then the most
recently available information will be utilized.

 

“Convertible
Notes” means the $300.0 million aggregate principal amount of convertible
notes due 2026 issued by the Company as of the date hereof plus any Convertible
Notes issued upon exercise of the initial purchasers’ option to purchase up to
an additional $45.0 million aggregate principal amount of Convertible Notes.

 

“Corporate
Trust Office of the Trustee” will be at the address of the Trustee specified
in Section 13.02 hereof or such other address as to which the
Trustee may give notice to the Company.

 

“Credit
Agreement” means the Existing Credit Agreement as such credit agreement
will be amended and restated pursuant to the senior credit agreement among the
Company, the guarantors named therein, the institutions who are or may become
party thereto (the “Lenders”), Bear Stearns Corporate Lending Inc., as
Syndication Agent for the Lenders and Wachovia Bank, National Association, as
Administrative Agent for the Lenders, upon the consummation of the ESSI Merger,
providing for a revolving credit facility, a letter of credit facility and a
term loan facility.

 

“Credit
Facilities” means, one or more debt facilities (including, without
limitation, the Credit Agreement) or commercial paper facilities, in each case
with banks or other institutional lenders providing for debt securities,
revolving credit loans, term loans, receivables financing (including through
the sale of receivables to such lenders or to special purpose entities formed
to borrow from such lenders against such receivables), synthetic leases or
letters of credit, in each case, as amended, restated, modified, renewed,
refunded, replaced or refinanced (including by means of sales of debt securities
to institutional investors) in whole or in part from time to time.

 

“Custodian”
means the Trustee, as custodian with respect to the Notes in global form, or
any successor entity thereto.

 

8

 

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

 

“Depositary”
means, with respect to the Notes issuable or issued in whole or in part in
global form, the Person specified in Section 2.03 hereof as the
Depositary with respect to the Notes, and any and all successors thereto
appointed as depositary hereunder and having become such pursuant to the
applicable provision of this Indenture.

 

“Designated
Non-cash Consideration” means the fair market value of non-cash
consideration received by the Company or a Restricted Subsidiary in connection
with an Asset Sale that is so designated as Designated Non-cash Consideration
pursuant to a resolution of the Board of Directors of the Company, setting
forth the basis of such valuation, less the amount of cash or Cash Equivalents
received in connection with a subsequent sale of or collection on such
Designated Non-cash Consideration.

 

“Designated
Senior Debt” means:

 

(1)                                  any
Indebtedness outstanding under the Credit Facilities; and

 

(2)                                  after
payment in full of all Obligations under the Credit Agreement, any other Senior
Debt permitted under this Indenture the principal amount of which is $25.0
million or more and that has been designated by the Company as “Designated
Senior Debt.”

 

“Disqualified
Stock” means any Capital Stock that, by its terms (or by the terms of any
security into which it is convertible, or for which it is exchangeable, in each
case at the option of the holder of the Capital Stock), or upon the happening
of any event, matures or is mandatorily redeemable, pursuant to a sinking fund
obligation or otherwise, or redeemable at the option of the holder of the
Capital Stock, in whole or in part, on or prior to the date that is 91 days
after the date on which the Notes mature. 
Notwithstanding the preceding sentence, any Capital Stock that would
constitute Disqualified Stock solely because the holders of the Capital Stock
have the right to require the Company to repurchase such Capital Stock upon the
occurrence of a change of control or an asset sale will not constitute
Disqualified Stock if the terms of such Capital Stock provide that the Company
may not repurchase or redeem any such Capital Stock pursuant to such provisions
unless such repurchase or redemption complies with Section 4.07
hereof.  The amount of Disqualified Stock
deemed to be outstanding at any time for purposes of this Indenture will be the
maximum amount that the Company and its Restricted Subsidiaries may become
obligated to pay upon the maturity of, or pursuant to any mandatory redemption
provisions of, such Disqualified Stock, exclusive of accrued dividends.

 

“Domestic
Subsidiary” means any Restricted Subsidiary of the Company that was formed
under the laws of the United States or any state of the United States or the
District of Columbia or that guarantees or otherwise provides direct credit
support for any Indebtedness of the Company. 
The pledge of Capital Stock of a Restricted Subsidiary of the Company
will not be considered to be a provision of direct credit support for
Indebtedness of the Company by such Restricted Subsidiary.  Notwithstanding the foregoing, Laurel
Technologies Partnership (d/b/a DRS Laurel Technologies), Canopy Technologies
LLC and MSSC Company LP and their

 

9

 

respective subsidiaries will not be Domestic Subsidiaries for so long
as such entities are not directly or indirectly wholly-owned by the Company, provided
that should Laurel Technologies Partnership (d/b/a DRS Laurel Technologies),
Canopy Technologies LLC or MSSC Company LP and their respective subsidiaries be
directly or indirectly wholly-owned by the Company at any point after the date
of this Indenture, they and their respective subsidiaries will become Subsidiary
Guarantors in compliance with Section 4.19 hereof.

 

“Equity
Interests” means Capital Stock and all warrants, options or other rights to
acquire Capital Stock (but excluding any debt security that is convertible
into, or exchangeable for, Capital Stock).

 

“Equity
Offering” means any public or private issuance or sale of Equity Interests
(other than Disqualified Stock) of the Company.

 

“ESSI
Merger” means the acquisition by the Company of all of the outstanding
stock of Engineered Support Systems, Inc. and the merger of Engineered
Support Systems, Inc. into a wholly-owned subsidiary of the Company.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

“Existing
Credit Agreement” means the amended and restated senior credit agreement dated
as of November 4, 2003 among the Company, the guarantors named therein,
the institutions who are or may become party thereto (the “Lenders”) and
Bear Stearns Corporate Lending Inc., as Syndication Agent for the Lenders,
Fleet National Bank, as Documentation Agent for the Lenders and Wachovia Bank,
National Association, as Administrative Agent for the Lenders providing for a
revolving credit facility, a letter of credit facility and a term loan
facility.

 

“Existing
Indebtedness” means any and all Indebtedness of the Company and its
Subsidiaries (other than Indebtedness under the Credit Agreement), in existence
on the date of this Indenture including the Convertible Notes and all Acquired
Debt acquired pursuant to the ESSI Merger, until such amounts are repaid.

 

“Fair
Market Value” means the value that would be paid by a willing buyer to an
unaffiliated willing seller in a transaction not involving distress or
necessity of either party, determined in good faith by an officer of the
Company if such value is below $2.0 million, or by the Board of Directors of
the Company (unless otherwise provided in this Indenture).

 

 “Fixed Charge Coverage Ratio” means
with respect to any specified Person for any period, the ratio of the
Consolidated Cash Flow of such Person for such period to the Fixed Charges of
such Person for such period.  In the
event that the specified Person or any of its Restricted Subsidiaries incurs,
assumes, Guarantees, repays, repurchases, redeems, defeases or otherwise
discharges any Indebtedness (other than ordinary working capital borrowings) or
issues, repurchases or redeems preferred stock subsequent to the commencement
of the period for which the Fixed Charge Coverage Ratio is being calculated and
on or prior to the date on which the event for which the calculation of the
Fixed Charge Coverage Ratio is made (the “Calculation Date”), then the
Fixed Charge Coverage Ratio will be calculated giving pro forma effect to such incurrence, assumption, Guarantee,
repayment, repurchase, redemption,

 

10

 

defeasance or other discharge of Indebtedness, or such issuance,
repurchase or redemption of preferred stock, and the use of the proceeds
therefrom, as if the same had occurred at the beginning of the applicable
four-quarter reference period.

 

In addition, for purposes of
calculating the Fixed Charge Coverage Ratio and Senior Secured Indebtedness
Leverage Ratio:

 

(1)                                  acquisitions
that have been made by the specified Person or any of its Restricted
Subsidiaries, including through mergers or consolidations, or any Person or any
of its Restricted Subsidiaries acquired by the specified Person or any of its
Restricted Subsidiaries, and including any related financing transactions and
including increases in ownership of Restricted Subsidiaries, during the
four-quarter reference period or subsequent to such reference period and on or
prior to the Calculation Date will be given pro
forma effect (in accordance with Regulation S-X under the Securities Act)
as if they had occurred on the first day of the four-quarter reference period;

 

(2)                                  the
Consolidated Cash Flow attributable to discontinued operations, as determined
in accordance with GAAP, and operations or businesses (and ownership interests
therein) disposed of prior to the Calculation Date, will be excluded;

 

(3)                                  the
Fixed Charges attributable to discontinued operations, as determined in
accordance with GAAP, and operations or businesses (and ownership interests
therein) disposed of prior to the Calculation Date, will be excluded, but only
to the extent that the obligations giving rise to such Fixed Charges will not
be obligations of the specified Person or any of its Restricted Subsidiaries
following the Calculation Date;

 

(4)                                  any
Person that is a Restricted Subsidiary on the Calculation Date will be deemed
to have been a Restricted Subsidiary at all times during such four-quarter
period;

 

(5)                                  any
Person that is not a Restricted Subsidiary on the Calculation Date will be
deemed not to have been a Restricted Subsidiary at any time during such
four-quarter period; and

 

(6)                                  if
any Indebtedness bears a floating rate of interest, the interest expense on
such Indebtedness will be calculated as if the rate in effect on the
Calculation Date had been the applicable rate for the entire period (taking
into account any Hedging Obligation applicable to such Indebtedness if such
Hedging Obligation has a remaining term as at the Calculation Date in excess of
twelve months).

 

“Fixed
Charges” means, with respect to any specified Person for any period, the
sum, without duplication, of:

 

(1)                                  the
consolidated interest expense of such Person and its Restricted Subsidiaries
for such period, whether paid or accrued, including, without limitation,
amortization of debt issuance costs and original issue discount, non-cash
interest payments, the interest component of any deferred payment obligations,
the interest component of all payments associated with Capital Lease
Obligations, imputed interest with respect to Attributable Debt, commissions, discounts
and other fees and charges

 

11

 

incurred in respect of letter of credit or bankers’
acceptance financings, and net of the effect of all payments made or received
pursuant to Hedging Obligations in respect of interest rates; plus

 

(2)                                  the
consolidated interest of such Person and its Restricted Subsidiaries that was
capitalized during such period; plus

 

(3)                                  any
interest accruing on Indebtedness of another Person that is Guaranteed by such
Person or one of its Restricted Subsidiaries or secured by a Lien on assets of
such Person or one of its Restricted Subsidiaries, whether or not such
Guarantee or Lien is called upon; plus

 

(4)                                  the
product of (a) all dividends, whether paid or accrued and whether or not in
cash, on any series of preferred stock of such Person or any of its Restricted
Subsidiaries, other than dividends on Equity Interests payable solely in Equity
Interests of the Company (other than Disqualified Stock) or to the Company or a
Restricted Subsidiary of the Company, times (b) a fraction, the numerator
of which is one and the denominator of which is one minus the then
current combined federal, state and local statutory tax rate of such Person,
expressed as a decimal, in each case, on a consolidated basis and in accordance
with GAAP.

 

“Foreign
Borrowing Base” means, as of any date, an amount equal to:

 

(1)                                  85%
of the face amount of all accounts receivable owned by the Company’s Foreign
Subsidiaries as of the end of the most recent fiscal quarter preceding such
date that were not more than 90 days past due; plus

 

(2)                                  65%
of the gross book value of all inventory owned by the Company’s Foreign
Subsidiaries as of the end of the most recent fiscal quarter preceding such
date.

 

“Foreign
Subsidiary” means any Restricted Subsidiary that is not a Domestic
Subsidiary.  Notwithstanding the
foregoing, Laurel Technologies Partnership (d/b/a DRS Laurel Technologies),
MSSC Company LP and Canopy Technologies LLC and their respective subsidiaries
will not be a Foreign Subsidiary.

 

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

 

“Global
Note Legend” means the legend set forth in Section 2.06(e)(2),
which is required to be placed on all Global Notes issued under this Indenture.

 

“Global
Notes” means, individually and collectively, each of the Global Notes
registered in the name of the Depositary or its nominee, substantially in the
form of Exhibit A hereto and that bears the Global Note Legend and
that has the “Schedule of Exchanges of Interests in the

 

12

 

Global Note” attached thereto, issued in accordance with Section 2.01,
2.06(d)(1) or 2.06(f) hereof.

 

“Government
Securities” means direct obligations of, or obligations guaranteed by, the
United States of America for the payment of which guarantees or obligations the
full faith and credit of the United States is pledged.

 

“Guarantee”
means a guarantee other than by endorsement of negotiable instruments for
collection in the ordinary course of business, direct or indirect, in any
manner including, without limitation, by way of a pledge of assets or through
letters of credit or reimbursement agreements in respect thereof, of all or any
part of any Indebtedness (whether arising by virtue of partnership
arrangements, or by agreements to keep-well, to purchase assets, goods,
securities or services, to take or pay or to maintain financial statement conditions
or otherwise).

 

“Guarantors”
means each of:

 

(1)                                  the
Company’s direct and indirect Domestic Subsidiaries (other than T-S Holding
Corporation) that are also Restricted Subsidiaries existing on the date of this
Indenture; and

 

(2)                                  any
other Subsidiary of the Company that executes a Subsidiary Guarantee in
accordance with the provisions of this Indenture,

 

and their respective
successors and assigns.

 

“Hedging
Obligations” means, with respect to any specified Person, the obligations
of such Person under:

 

(1)                                  interest
rate swap agreements (whether from fixed to floating or from floating to
fixed), interest rate cap agreements and interest rate collar agreements;

 

(2)                                  other
agreements or arrangements designed to manage interest rates or interest rate risk;
and

 

(3)                                  other
agreements or arrangements designed to protect such Person against fluctuations
in currency exchange rates or commodity prices.

 

“Holder”
means a Person in whose name a Note is registered.

 

“Immaterial
Subsidiary” means, as of any date, any Restricted Subsidiary whose total
assets, as of that date, are less than $100,000 and whose total revenues for
the most recent twelve-month period do not exceed $100,000; provided
that a Restricted Subsidiary will not be considered to be an Immaterial
Subsidiary if it, directly or indirectly, guarantees or otherwise provides
direct credit support for any Indebtedness of the Company.

 

“Indebtedness”
means, with respect to any specified Person, any indebtedness of such Person
(excluding accrued expenses and trade payables), whether or not contingent:

 

13

 

(1)                                  in
respect of borrowed money;

 

(2)                                  evidenced
by bonds, notes, debentures or similar instruments or letters of credit (or
reimbursement agreements in respect thereof);

 

(3)                                  in
respect of banker’s acceptances;

 

(4)                                  representing
Capital Lease Obligations or Attributable Debt in respect of sale and leaseback
transactions;

 

(5)                                  representing
the balance deferred and unpaid of the purchase price of any property or
services due more than six months after such property is acquired or such
services are completed; or

 

(6)                                  representing
the net obligations under any Hedging Obligations,

 

if and to the extent any of
the preceding items (other than letters of credit, Attributable Debt and
Hedging Obligations) would appear as a liability upon a balance sheet of the
specified Person prepared in accordance with GAAP.  In addition, the term “Indebtedness” includes
all Indebtedness of others secured by a Lien on any asset of the specified
Person (whether or not such Indebtedness is assumed by the specified Person)
and, to the extent not otherwise included, the Guarantee by the specified
Person of any Indebtedness of any other Person.

 

“Indenture”
has the meaning set forth in the preamble hereto.

 

“Indirect
Participant” means a Person who holds a beneficial interest in a Global
Note through a Participant.

 

“Initial
Notes” means the first $250,000,000 aggregate principal amount of Notes
issued under this Indenture on the date hereof.

 

“Investments”
means, with respect to any Person, all direct or indirect investments by such
Person in other Persons (including Affiliates) in the forms of loans (including
Guarantees or other obligations, other than advances to customers in the ordinary
course of business that are recorded as accounts receivable), advances or
capital contributions (excluding commission, travel and similar advances to
officers and employees made in the ordinary course of business), purchases or
other acquisitions for consideration of Indebtedness, Equity Interests or other
securities, together with all items that are or would be classified as
investments on a balance sheet prepared in accordance with GAAP.  If the Company or any Subsidiary of the
Company sells or otherwise disposes of any Equity Interests of any direct or
indirect Subsidiary of the Company such that, after giving effect to any such
sale or disposition, such Person is no longer a Subsidiary of the Company, the
Company will be deemed to have made an Investment on the date of any such sale
or disposition equal to the Fair Market Value of the Company’s Investments in
such Subsidiary that were not sold or disposed of in an amount determined as
provided in the final paragraph of Section 4.07 hereof.  The acquisition by the Company or any
Subsidiary of the Company of a Person that holds an Investment in a third
Person will be deemed to be an Investment by the Company or such Subsidiary in
such third Person in

 

14

 

an amount equal to the Fair Market Value of the Investments held by the
acquired Person in such third Person in an amount determined as provided in the
final paragraph of Section 4.07 hereof.  Except as otherwise provided in this
Indenture, the amount of an Investment will be determined at the time the
Investment is made and without giving effect to subsequent changes in value.

 

“Legal
Holiday” means a Saturday, a Sunday or a day on which banking institutions
in the City of New York or at a place of payment are authorized by law,
regulation or executive order to remain closed. 
If a payment date is a Legal Holiday at a place of payment, payment may
be made at that place on the next succeeding day that is not a Legal Holiday,
and no interest shall accrue on such payment for the intervening period.

 

“Lien”
means, with respect to any asset, any mortgage, lien, pledge, charge, security
interest or encumbrance of any kind in respect of such asset, whether or not
filed, recorded or otherwise perfected under applicable law, including any
conditional sale or other title retention agreement, any lease in the nature
thereof, any option or other agreement to sell, give a security interest in and
any filing of or agreement to give any financing statement under the Uniform
Commercial Code (or equivalent statutes) of any jurisdiction.

 

“Maximum
Credit Facilities Cap” means, as of any date of determination, an amount
equal to the greatest principal amount of Indebtedness that could have been
incurred on such date pursuant to Section 4.09(a), provided,
that such amount shall not be limited to the extent the Senior Secured
Indebtedness Leverage Ratio for the Company’s most recently ended four full
fiscal quarters for which internal financial statements are available
immediately preceding such date would not have been in excess of 3.0 to 1,
determined on a pro forma basis (including a pro forma application of the net
proceeds of such Senior Secured Indebtedness), as if such Senior Secured
Indebtedness had been incurred at the beginning of such four-quarter period.

 

“Moody’s”
means Moody’s Investor Services, Inc.

 

“Net Income”
means, with respect to any specified Person, the net income (loss) of such
Person, determined in accordance with GAAP and before any reduction in respect
of preferred stock dividends, excluding, however:

 

(1)                                  any
gain (but not loss), together with any related provision for taxes on such gain
(but not loss), realized in connection with: 
(a) any Asset Sale; or (b) the disposition of any securities
by such Person or any of its Restricted Subsidiaries or the extinguishment of
any Indebtedness of such Person or any of its Restricted Subsidiaries; and

 

(2)                                  any
extraordinary gain (but not loss), together with any related provision for
taxes on such extraordinary gain (but not loss).

 

“Net
Proceeds” means the aggregate cash proceeds received by the Company or any
of its Restricted Subsidiaries in respect of any Asset Sale (including, without
limitation, any cash received upon the sale or other disposition of any non-cash
consideration received in any Asset Sale), net of the direct costs relating to
such Asset Sale incurred by the Company or any Restricted Subsidiary,
including, without limitation, legal, accounting and investment banking fees,
and sales commissions, and any relocation expenses incurred as a result of the
Asset Sale, taxes paid or payable as a result of the Asset Sale, in each case,
after taking into account any

 

15

 

available tax credits or deductions and any tax sharing arrangements,
and amounts required to be applied to the repayment of Indebtedness, secured by
a Lien on the asset or assets that were the subject of such Asset Sale and any
reserve for adjustment in respect of the sale price of such asset or assets
established in accordance with GAAP.

 

“Non-Recourse
Debt” means Indebtedness:

 

(1)                                  as
to which neither the Company nor any of its Restricted Subsidiaries (a) provides
credit support of any kind (including any undertaking, agreement or instrument
that would constitute Indebtedness, other than the pledge of stock of an
Unrestricted Subsidiary), (b) is directly or indirectly liable as a
Guarantor or otherwise, or (c) constitutes the lender;

 

(2)                                  no
default with respect to which (including any rights that the holders of the
Indebtedness may have to take enforcement action against an Unrestricted
Subsidiary) would permit upon notice, lapse of time or both any holder of any
other Indebtedness (other than the Notes) of the Company or any of its
Restricted Subsidiaries to declare a default on such other Indebtedness or
cause the payment of the Indebtedness to be accelerated or payable prior to its
Stated Maturity; and

 

(3)                                  as
to which the lenders have been notified in writing that they will not have any
recourse to the stock or assets of the Company or any of its Restricted
Subsidiaries.

 

“Non-U.S.
Person” means a Person who is not a U.S. Person.

 

“Notes”
has the meaning assigned to it in the preamble to this Indenture.  The Initial Notes and the Additional Notes
shall be treated as a single class for all purposes under this Indenture, and
unless the context otherwise requires, all references to the Notes shall
include the Initial Notes and any Additional Notes.

 

“Obligations”
means any principal, interest, penalties, fees, expenses, indemnifications,
reimbursements (including, without limitation, reimbursement for legal fees and
expenses), damages and other liabilities payable under the documentation
governing any Indebtedness.

 

“Officer”
means, with respect to any Person, the Chairman of the Board, the Chief
Executive Officer, the President, the Chief Operating Officer, the Chief
Financial Officer, the Treasurer, any Assistant Treasurer, the Controller, the
Secretary or any Vice-President of such Person.

 

“Officers’
Certificate” means a certificate signed on behalf of the Company by two
Officers of the Company, one of whom must be the principal executive officer,
the principal financial officer, the treasurer or the principal accounting
officer of the Company, that meets the requirements of Section 13.05
hereof.

 

“Opinion of
Counsel” means an opinion from legal counsel who is reasonably acceptable
to the Trustee, that meets the requirements of Section 13.05
hereof.  The counsel may be an employee
of or counsel to the Company or any Subsidiary of the Company.

 

16

 

“Participant”
means, with respect to the Depositary, a Person who has an account with the
Depositary.

 

“Permitted
Business” means any of the lines of business conducted by the Company and
its Subsidiaries on the date of this Indenture and any businesses similar,
related, incidental or ancillary thereto or that constitutes a reasonable
extension or expansion thereof.

 

“Permitted
Investments” means:

 

(1)                                  any
Investment in the Company or in a Restricted Subsidiary of the Company;

 

(2)                                  any
Investment in Cash Equivalents;

 

(3)                                  any
Investment by the Company or any Restricted Subsidiary of the Company in a
Person, if as a result of such Investment:

 

(a)                                  such
Person becomes a Restricted Subsidiary of the Company; or

 

(b)                                 such
Person is merged, consolidated or amalgamated with or into, or transfers or
conveys substantially all of its assets to, or is liquidated into, the Company
or a Restricted Subsidiary of the Company;

 

(4)                                  any
Investment made as a result of the receipt of non-cash consideration from an
Asset Sale that was made pursuant to and in compliance with Section 4.10
hereof;

 

(5)                                  any
Investment solely in exchange for the issuance of Equity Interests (other than Disqualified
Stock) of the Company;

 

(6)                                  any
Investments received in compromise or resolution of (A) obligations of
trade creditors or customers that were incurred in the ordinary course of
business of the Company or any of its Restricted Subsidiaries, including
pursuant to any plan of reorganization or similar arrangement upon the
bankruptcy or insolvency of any trade creditor or customer; or (B) litigation,
arbitration or other disputes with Persons who are not Affiliates;

 

(7)                                  Investments
represented by Hedging Obligations;

 

(8)                                  repurchases
of the Notes or the Senior Notes;

 

(9)                                  receivables
owing to the Company or any Restricted Subsidiary created in the ordinary
course of business;

 

(10)                            payroll,
travel and similar advances that are expected at the time of such advances
ultimately to be treated as expenses for accounting purposes;

 

(11)                            Investments
in existence on the date of this Indenture;

 

17

 

(12)                            guarantees
of Indebtedness otherwise permitted to be incurred pursuant to this Indenture;

 

(13)                            Investments
in joint ventures and other business entities (in each case that are not
Subsidiaries of the Company) that are engaged in the same line of business as
the Company and its Restricted Subsidiaries, in an aggregate amount not to
exceed $25.0 million at any one time outstanding provided that the
original amount of any such Investment will be deemed reduced by any permanent
return of principal or equity thereon up to but not exceeding the original
amount of such Investment; and

 

(14)                            other
Investments in any Person having an aggregate Fair Market Value (measured on
the date each such Investment was made and without giving effect to subsequent
changes in value), when taken together with all other Investments made pursuant
to this clause (14) that are at the time outstanding not to exceed the
greater of (x) $50.0 million and (y) 5.0% of Consolidated Tangible Assets.

 

“Permitted
Junior Securities” means:

 

(1)                                  Equity
Interests in the Company or any Guarantor; or

 

(2)                                  debt
securities that are subordinated to all Senior Debt and any debt securities
issued in exchange for Senior Debt to substantially the same extent as, or to a
greater extent than, the Notes and the Subsidiary Guarantees are subordinated
to Senior Debt under this Indenture.

 

“Permitted
Liens” means:

 

(1)                                  Liens
on assets of the Company or any Restricted Subsidiary securing Senior Debt that
was permitted by the terms of this Indenture to be incurred;

 

(2)                                  Liens
in favor of the Company or the Guarantors;

 

(3)                                  Liens
on property of a Person existing at the time such Person is merged with or into
or consolidated with the Company or any Subsidiary of the Company; provided
that such Liens were in existence prior to the contemplation of such merger or
consolidation and do not extend to any assets other than those of the Person
merged into or consolidated with the Company or the Subsidiary;

 

(4)                                  Liens
on property (including Capital Stock) existing at the time of acquisition of
the property by the Company or any Subsidiary of the Company, provided
that such Liens were in existence prior to, such acquisition, and not incurred
in contemplation of, such acquisition;

 

(5)                                  Liens
to secure the performance of statutory obligations, surety or appeal bonds,
performance bonds or other obligations of a like nature incurred in the
ordinary course of business;

 

18

 

(6)                                  Liens
to secure Indebtedness (including Capital Lease Obligations) permitted by Section 4.09(b)(4) covering
only the assets acquired with or financed by such Indebtedness;

 

(7)                                  Liens
existing on the date of this Indenture;

 

(8)                                  Liens
for taxes, assessments or governmental charges or claims that are not yet
delinquent or that are being contested in good faith by appropriate proceedings
promptly instituted and diligently concluded; provided that any reserve
or other appropriate provision as is required in conformity with GAAP has been
made therefor;

 

(9)                                  Liens
imposed by law, such as carriers’, warehousemen’s, landlord’s and mechanics’
Liens, in each case, incurred in the ordinary course of business or good faith
deposits in connection with bids, tenders, contracts or leases to which the
Company or any Restricted Subsidiary is a party;

 

(10)                            survey
exceptions, easements, or reservations of, or rights of others for, licenses,
rights-of-way, sewers, electric lines, telegraph and telephone lines and other
similar purposes, or zoning or other restrictions as to the use of real
property that were not incurred in connection with Indebtedness and that do not
in the aggregate materially adversely affect the value of said properties or
materially impair their use in the operation of the business of such Person;

 

(11)                            Liens
created for the benefit of (or to secure) the Notes (or the Subsidiary
Guarantees);

 

(12)                            Liens
to secure any Permitted Refinancing Indebtedness permitted to be incurred under
this Indenture; provided, however, that:

 

(a)                                  the
new Lien shall be limited to all or part of the same property and assets that
secured or, under the written agreements pursuant to which the original Lien
arose, could secure the original Lien (plus improvements and accessions
to, such property or proceeds or distributions thereof); and

 

(b)                                 the
Indebtedness secured by the new Lien is not increased to any amount greater
than the sum of (x) the outstanding principal amount or, if greater, committed
amount, of the Permitted Referencing Indebtedness and (y) an amount necessary
to pay any fees and expenses, including premiums, related to such refinancings,
refunding, extension, renewal or replacement;

 

(13)                            licenses
of intellectual property in the ordinary course of business;

 

(14)                            Liens
arising out of judgments, decrees, orders or awards in respect of which the
Company shall in good faith be prosecuting on appeal or proceeding for review,
which appeal or proceeding shall not have been finally terminated or if the
period within such appeal or proceeding may be initiated shall not have
expired;

 

(15)                            Liens
securing Hedging Obligations;

 

19

 

(16)                            Liens
on Capital Stock of an Unrestricted Subsidiary that secure Indebtedness or
other obligations of such Unrestricted Subsidiary;

 

(17)                            leases,
subleases, licenses or sublicenses to third parties and related UCC Financing
Statements entered into in the ordinary course of business;

 

(18)                            Liens
securing a defeasance trust entered into in accordance with this Indenture;

 

(19)                            (i) Liens
of a collecting bank arising in the ordinary course of business under Section 4-208
of the Uniform Commercial Code in effect in the relevant jurisdiction and (ii) Liens
of any depositary bank in connection with statutory, common law and contractual
rights of set off and recoupment for customary account fees or charges with
respect to any deposit account of the Company or any Restricted Subsidiary; and

 

(20)                            Liens
incurred in the ordinary course of business of the Company or any Subsidiary of
the Company with respect to obligations that do not exceed $25.0 million or
2.5% of Consolidated Tangible Assets at any one time outstanding.

 

“Permitted
Refinancing Indebtedness” means any Indebtedness of the Company or any of
its Restricted Subsidiaries issued in exchange for, or the net proceeds of
which are used to refund, refinance, replace, defease or discharge other
Indebtedness of the Company or any of its Restricted Subsidiaries (other than
intercompany Indebtedness); provided that

 

(1)                                  the
principal amount (or accreted value, if applicable) of such Permitted
Refinancing Indebtedness does not exceed the principal amount (or accreted
value, if applicable) of the Indebtedness extended, refinanced, renewed,
replaced, defeased or refunded (plus all accrued interest on the
Indebtedness and the amount of all expenses and premiums incurred in connection
therewith);

 

(2)                                  such
Permitted Refinancing Indebtedness has a final maturity date later than the
final maturity date of, and has a Weighted Average Life to Maturity equal to or
greater than the Weighted Average Life to Maturity of, the Indebtedness being
extended, refinanced, renewed, replaced, defeased or refunded;

 

(3)                                  if
the Indebtedness being extended, refinanced, renewed, replaced, defeased or
refunded is subordinated in right of payment to the Notes, such Permitted
Refinancing Indebtedness has a final maturity date later than the final
maturity date of, and is subordinated in right of payment to, the Notes on
terms at least as favorable, taken as a whole, to the holders of Notes as those
contained in the documentation governing the Indebtedness being extended,
refinanced, renewed, replaced, defeased or refunded; and

 

(4)                                  such
Indebtedness is incurred either by the Company or by the Restricted Subsidiary
who is the obligor on the Indebtedness being extended, refinanced, renewed,
replaced, defeased or refunded.

 

20

 

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

 

“Reference
Treasury Dealer Quotation” means, with respect to each Reference Treasury
Dealer and any redemption date, the average, as determined by the Company, of
the bid and asked prices for the Comparable Treasury Issue (expressed in each
case as a percentage of its principal amount) quoted in writing to the Company
by such Reference Treasury Dealer at 5:00 p.m. on the third business date
preceding such redemption date.

 

“Reference
Treasury Dealer” means any primary U.S. government securities dealer in the
City of New York selected by the Company.

 

“Representative”
means the indenture trustee or other trustee, agent or representative for any
Senior Debt.

 

“Responsible
Officer,” when used with respect to the Trustee, means any officer within
the Corporate Trust Administration of the Trustee (or any successor group of
the Trustee) or any other officer of the Trustee customarily performing
functions similar to those performed by any of the above designated officers
and also means, with respect to a particular corporate trust matter, any other
officer to whom such matter is referred because of his knowledge of and
familiarity with the particular subject and who shall have direct
responsibility for the administration of this Indenture.

 

“Restricted
Investment” means an Investment other than a Permitted Investment.

 

“Restricted
Subsidiary” of a Person means any Subsidiary of the referent Person that is
not an Unrestricted Subsidiary.

 

“S&P”
means Standard & Poor’s Ratings Group.

 

“SEC”
means the Securities and Exchange Commission.

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Senior
Debt” means:

 

(1)                                  all
Indebtedness of the Company or any Guarantor outstanding under the Senior
Notes, Credit Facilities and all Hedging Obligations with respect thereto;

 

(2)                                  any
other Indebtedness of the Company or any Guarantor permitted to be incurred
under the terms of this Indenture, unless the instrument under which such
Indebtedness is incurred expressly provides that it is on a parity with or
subordinated in right of payment to the Notes or any Subsidiary Guarantee; and

 

(3)                                  all
Obligations with respect to the items listed in the preceding clauses (1) and
(2).

 

21

 

Notwithstanding anything to
the contrary in the foregoing, Senior Debt will not include:

 

(1)                                  any
liability for federal, state, local or other taxes owed or owing by the
Company;

 

(2)                                  any
intercompany Indebtedness of the Company or any of its Subsidiaries to the
Company or any of its Affiliates;

 

(3)                                  any
trade payables;

 

(4)                                  the
portion of any Indebtedness that is incurred in violation of this Indenture; or

 

(5)                                  Indebtedness
which is classified as non-recourse in accordance with GAAP or any unsecured
claim arising in respect thereof by reason of the application of section 1111(b)(1) of
the Bankruptcy Code.

 

“Senior Notes” means
the $350.0 million in aggregate principal amount of 65/8%
Senior Notes due 2016 and any additional Senior Notes issued by the Company.

 

“Senior Secured
Indebtedness Leverage Ratio” means, as of any date of determination, the
ratio of the principal amount of Senior Secured Indebtedness of the Company and
its Restricted Subsidiaries as of such date, determined on a consolidated basis
for the Company and its Restricted Subsidiaries in accordance with GAAP, to the
Consolidated Cash Flow of the Company with respect to the four most recently
completed fiscal quarters of such Person through such date. In the event that
the specified Person or any of its Restricted Subsidiaries incurs, assumes,
Guarantees, repays, repurchases, redeems, defeases or otherwise discharges any
Senior Secured Indebtedness subsequent to the commencement of the period for
which the Senior Secured Indebtedness Leverage Ratio is being calculated and on
or prior to the date on which the event for which the calculation of the Senior
Secured Indebtedness Leverage Ratio is made, then the Senior Secured
Indebtedness Leverage Ratio will be calculated giving pro forma effect to such
incurrence, assumption, Guarantee, repayment, repurchase, redemption,
defeasance or other discharge of Senior Secured Indebtedness, or such issuance,
repurchase or redemption of preferred stock, and the use of the proceeds
therefrom, as if the same had occurred at the beginning of the applicable
four-quarter reference period.

 

“Senior Secured Indebtedness”
means, with respect to any Person, at any date of determination, the aggregate
principal amount of secured indebtedness of such Person (other than any
Subordinated Indebtedness of such Person) at such date, as determined on a
consolidated basis for such Person and its Restricted Subsidiaries in
accordance with GAAP.

 

“Senior Subordinated
Indebtedness” means

 

(1)                                  with
respect to the Company, Indebtedness which ranks equal in right of payment to
the Notes, and

 

(2)                                  with
respect to any Guarantor, Indebtedness which ranks equal in right of payment to
the Guarantee of such entity of the Notes.

 

22

 

“Significant
Subsidiary” means any Subsidiary that would be a “significant subsidiary”
as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated
pursuant to the Securities Act, as such Regulation is in effect on the date of
this Indenture.

 

“Stated
Maturity” means, with respect to any installment of interest or principal
on any series of Indebtedness, the date on which the payment of interest or
principal was scheduled to be paid in the documentation governing such
Indebtedness as of the date of this Indenture, and will not include any
contingent obligations to repay, redeem or repurchase any such interest or
principal prior to the date originally scheduled for the payment thereof.

 

“Subordinated
Indebtedness” means, with respect to each series of Notes,

 

(1)                                  with
respect to the Company, any Indebtedness which is by its terms subordinated in
right of payment to such series of Notes, and

 

(2)                                  any
Indebtedness of any Guarantor which is by its terms subordinated in right of
payment to the guarantee of such entity of such series of Notes.

 

“Subsidiary”
means, with respect to any specified Person:

 

(1)                                  any
corporation, association or other business entity of which more than 50% of the
total voting power of shares of Capital Stock entitled (without regard to the
occurrence of any contingency and after giving effect to any voting agreement
or stockholders’ agreement that effectively transfers voting power) to vote in
the election of directors, managers or trustees of the corporation, association
or other business entity is at the time owned or controlled, directly or
indirectly, by that Person or one or more of the other Subsidiaries of that
Person (or a combination thereof); and

 

(2)                                  any
partnership (a) the sole general partner or the managing general partner
of which is such Person or a Subsidiary of such Person or (b) the only
general partners of which are that Person or one or more Subsidiaries of that
Person (or any combination thereof).

 

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

 

“TIA”
means the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in
effect on the date on which this Indenture is qualified thereunder, as may be
amended from time to time.

 

“Treasury
Rate” means, with respect to any redemption date, the rate per annum equal
to the semi-annual equivalent yield to maturity of the Comparable Treasury
Issue, assuming a price for the Comparable Treasury Issue (expressed as a
percentage of its principal amount) equal to the Comparable Treasury Price for
such redemption period.

 

23

 

“Trustee”
means the party named as such in the preamble to this Indenture until a
successor replaces it in accordance with the applicable provisions of this
Indenture and thereafter means the successor serving hereunder.

 

 “Unrestricted Subsidiary” means any
Subsidiary of the Company that is designated by the Board of Directors as an
Unrestricted Subsidiary pursuant to a resolution of the Board of Directors, but
only to the extent that such Subsidiary:

 

(1)                                  has
no Indebtedness other than Non-Recourse Debt;

 

(2)                                  except
as permitted by Section 4.11 hereof, is not party to any agreement,
contract, arrangement or understanding with the Company or any Restricted
Subsidiary of the Company unless the terms of any such agreement, contract,
arrangement or understanding are no less favorable to the Company or such
Restricted Subsidiary, taken as a whole, than those that might be obtained at
the time from Persons who are not Affiliates of the Company;

 

(3)                                  is
a Person with respect to which neither the Company nor any of its Restricted
Subsidiaries has any direct or indirect obligation (a) to subscribe for
additional Equity Interests or (b) to maintain or preserve such Person’s
financial condition or to cause such Person to achieve any specified levels of
operating results; and

 

(4)                                  has
not guaranteed or otherwise directly or indirectly provided credit support for
any Indebtedness of the Company or any of its Restricted Subsidiaries.

 

Any designation
of a Subsidiary of the Company as an Unrestricted Subsidiary will be evidenced
to the Trustee by filing with the Trustee a certified copy of the Board
Resolution giving effect to such designation and an Officers’ Certificate
certifying that such designation complied with the preceding conditions and was
permitted by Section 4.07 hereof. 
If, at any time, any Unrestricted Subsidiary would fail to meet the
preceding requirements as an Unrestricted Subsidiary, it will thereafter cease
to be an Unrestricted Subsidiary for purposes of this Indenture and any
Indebtedness of such Subsidiary will be deemed to be incurred by a Restricted
Subsidiary of the Company as of such date and, if such Indebtedness is not
permitted to be incurred as of such date pursuant to Section 4.09
hereof, the Company will be in default of such covenant.  The Board of Directors of the Company may at
any time designate any Unrestricted Subsidiary to be a Restricted Subsidiary, provided
that such designation will be deemed to be an incurrence of Indebtedness by a
Restricted Subsidiary of the Company of any outstanding Indebtedness of such
Unrestricted Subsidiary and such designation will only be permitted if (1) such
Indebtedness is permitted under Section 4.09 hereof calculated on a
pro forma basis as if such designation had
occurred at the beginning of the four-quarter reference period; and (2) no
Default or Event of Default would be in existence following such designation.

 

“Voting
Stock” of any Person as of any date means the Capital Stock of such Person
that is at the time entitled to vote in the election of the Board of Directors
of such Person.

 

“Weighted
Average Life to Maturity” means, when applied to any Indebtedness at any
date, the number of years obtained by dividing:

 

24

 

(1)                                  the
sum of the products obtained by multiplying (a) the amount of each then
remaining installment, sinking fund, serial maturity or other required payments
of principal, including payment at final maturity, in respect of the
Indebtedness, by (b) the number of years (calculated to the nearest
one-twelfth) that will elapse between such date and the making of such payment;
by

 

(2)                                  the
then outstanding principal amount of such Indebtedness.

 

Section 1.02                                Other
Definitions.

 

	
   

  	
   

  	
  Defined in

  
	
  Term

  	
   

  	
  Section

  
	
   

  	
   

  	
   

  
	
  “Affiliate Transaction”

  	
   

  	
  4.11

  
	
  “Asset Sale Offer”

  	
   

  	
  3.09

  
	
  “Authentication Order”

  	
   

  	
  2.02

  
	
  “Change of Control Offer”

  	
   

  	
  4.15

  
	
  “Change of Control Payment”

  	
   

  	
  4.15

  
	
  “Change of Control Payment Date”

  	
   

  	
  4.15

  
	
  “Covenant Defeasance”

  	
   

  	
  8.03

  
	
  “DTC”

  	
   

  	
  2.03

  
	
  “Event of Default”

  	
   

  	
  6.01

  
	
  “Excess Proceeds”

  	
   

  	
  4.10

  
	
  “incur”

  	
   

  	
  4.09

  
	
  “Legal Defeasance”

  	
   

  	
  8.02

  
	
  “Offer Amount”

  	
   

  	
  3.09

  
	
  “Offer Period”

  	
   

  	
  3.09

  
	
  “Paying Agent”

  	
   

  	
  2.03

  
	
  “Permitted Debt”

  	
   

  	
  4.09

  
	
  “Payment Blockage Notice”

  	
   

  	
  10.03 

  
	
  “Payment Default”

  	
   

  	
  6.01

  
	
  “Purchase Date”

  	
   

  	
  3.09

  
	
  “Registrar”

  	
   

  	
  2.03

  
	
  “Restricted Payments”

  	
   

  	
  4.07

  

 

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

 

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

 

“indenture
securities” means the Notes;

 

“indenture
security Holder” means a Holder of a Note;

 

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

 

25

 

“obligor”
on the Notes and the Subsidiary Guarantees means the Company and the
Guarantors, respectively, and any successor obligor upon the Notes and the
Subsidiary Guarantees, respectively.

 

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

 

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

 

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

 

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

 

(3)                                  “or”
is not exclusive;

 

(4)                                  words
in the singular include the plural, and in the plural include the singular;

 

(5)                                  “will”
shall be interpreted to express a command;

 

(6)                                  provisions
apply to successive events and transactions; and

 

(7)                                  references
to sections of or rules under the Securities Act will be deemed to include
substitute, replacement of successor sections or rules adopted by the SEC
from time to time.

 

ARTICLE 2

 

THE NOTES

 

For
the purposes of this series of Securities (as defined in the Base Indenture),
this Article 2 shall amend and restate in its entirety Article Two of
the Base Indenture.

 

Section 2.01                                Form and
Dating.  (a)  General.  The Notes and the Trustee’s certificate of
authentication will be substantially in the form of Exhibit A
hereto.  The Notes may have notations,
legends or endorsements required by law, stock exchange rule or
usage.  Each Note will be dated the date
of its authentication.  The Notes shall
be in denominations of $1,000 and integral multiples thereof.

 

The terms and
provisions contained in the Notes will constitute, and are hereby expressly
made, a part of this Indenture and the Company, the Guarantors and the Trustee,
by their execution and delivery of this Indenture, expressly agree to such
terms and provisions and to be bound thereby. 
However, to the extent any provision of any Note conflicts with the express
provisions of this Indenture, the provisions of this Indenture shall govern and
be controlling.

 

26

 

(b)                                 Global
Notes.  Notes issued in global form
will be substantially in the form of Exhibit A attached hereto
(including the Global Note Legend thereon and the “Schedule of Exchanges
of Interests in the Global Note” attached thereto).  Certificated Notes will be substantially in
the form of Exhibit A attached hereto (but without the Global Note
Legend thereon and without the “Schedule of Exchanges of Interests in the
Global Note” attached thereto).  Each
Global Note will represent such of the outstanding Notes as will be specified
therein and each shall provide that it represents the aggregate principal amount
of outstanding Notes from time to time endorsed thereon and that the aggregate
principal amount of outstanding Notes represented thereby may from time to time
be reduced or increased, as appropriate, to reflect exchanges and redemptions.  Any endorsement of a Global Note to reflect
the amount of any increase or decrease in the aggregate principal amount of
outstanding Notes represented thereby will be made by the Trustee or the
Custodian, at the direction of the Trustee, in accordance with instructions
given by the Holder thereof as required by Section 2.06 hereof.

 

Section 2.02                                Execution
and Authentication.  At least one
Officer must sign the Notes for the Company by manual or facsimile signature.

 

If an Officer
whose signature is on a Note no longer holds that office at the time a Note is
authenticated, the Note will nevertheless be valid.

 

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

 

The Trustee
will, upon receipt of a written order of the Company signed by two Officers (an
“Authentication Order”), authenticate Notes for original issue up to the
aggregate principal amount stated on the face of the Notes.

 

The Trustee
may appoint an authenticating agent acceptable to the Company to authenticate
Notes.  An authenticating agent may
authenticate Notes whenever the Trustee may do so.  Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent.  An authenticating agent has the same rights
as an Agent to deal with Holders or an Affiliate of the Company.

 

Section 2.03                                Registrar
and Paying Agent.  The Company will
maintain an office or agency where Notes may be presented for registration of
transfer or for exchange (“Registrar”) and an office or agency where
Notes may be presented for payment (“Paying Agent”).  The Registrar will keep a register of the
Notes and of their transfer and exchange. 
The Company may appoint one or more co-registrars and one or more
additional paying agents.  The term “Registrar”
includes any co-registrar and the term “Paying Agent” includes any additional
paying agent.  The Company may change any
Paying Agent or Registrar without notice to any Holder.  The Company will notify the Trustee in
writing of the name and address of any Agent not a party to this
Indenture.  If the Company fails to
appoint or maintain another entity as Registrar or Paying Agent, the Trustee
shall act as such.  The Company or any of
its Subsidiaries may act as Paying Agent or Registrar.

 

The Company
initially appoints The Depository Trust Company (“DTC”) to act as
Depositary with respect to the Global Notes.

 

27

 

The Company
initially appoints the Trustee to act as the Registrar and Paying Agent and to
act as Custodian with respect to the Global Notes.

 

So long as the
Holder is the registered owner of any Notes, the Holder will be considered the
sole holder under this Indenture of any Notes evidenced by the Global
Notes.  Beneficial owners of Notes
evidenced by the Global Notes will not be considered the owners or holders of
the Notes under this Indenture for any purpose, including with respect to the
giving of any directions, instructions or approvals to the Trustee.

 

Section 2.04                                Paying
Agent to Hold Money in Trust.  The
Company will require each Paying Agent other than the Trustee to agree in
writing that the Paying Agent will hold in trust for the benefit of Holders or
the Trustee all money held by the Paying Agent for the payment of principal,
premium, if any, or interest on the Notes, and will notify the Trustee of any
default by the Company in making any such payment.  While any such default continues, the Trustee
may require a Paying Agent to pay all money held by it to the Trustee.  The Company at any time may require a Paying
Agent to pay all money held by it to the Trustee.  Upon payment over to the Trustee, the Paying
Agent (if other than the Company or a Subsidiary) will have no further
liability for the money.  If the Company
or a Subsidiary acts as Paying Agent, it will segregate and hold in a separate
trust fund for the benefit of the Holders all money held by it as Paying Agent.  Upon any bankruptcy or reorganization proceedings
relating to the Company, the Trustee will serve as Paying Agent for the Notes.

 

Section 2.05                                Holder
Lists.  The Trustee will preserve in
as current a form as is reasonably practicable the most recent list available
to it of the names and addresses of all Holders and shall otherwise comply with
TIA § 312(a).  If the Trustee is not
the Registrar, the Company will furnish to the Trustee at least seven Business
Days before each interest payment date and at such other times as the Trustee
may request in writing, a list in such form and as of such date as the Trustee
may reasonably require of the names and addresses of the Holders of Notes and
the Company shall otherwise comply with TIA § 312(a).

 

Neither the Company nor the
Trustee will be liable for any delay by the Holder or DTC in identifying the
beneficial owners of Notes and the Company and the Trustee may conclusively
rely on, and will be protected in relying on, instructions from the Holder or
DTC for all purposes.

 

Section 2.06                                Transfer
and Exchange.  (a)  Transfer
and Exchange of Global Notes.  A
Global Note may not be transferred as a whole except by the Depositary to a
nominee of the Depositary, by a nominee of the Depositary to the Depositary or
to another nominee of the Depositary, or by the Depositary or any such nominee
to a successor Depositary or a nominee of such successor Depositary.  All Global Notes will be exchanged by the
Company for Certificated Notes if:

 

(1)                                  the
Company delivers to the Trustee notice from the Depositary that it is unwilling
or unable to continue to act as Depositary and the Company fails to appoint a
successor Depositary within 120 days after the date of such notice from the
Depositary or that it is no longer a clearing agency registered under the
Exchange Act; or

 

28

 

(2)                                  the
Company in its sole discretion determines that the Global Notes (in whole but
not in part) should be exchanged for Certificated Notes and delivers a written
notice to such effect to the Trustee.

 

(3)                                  Upon
the occurrence of either of the preceding events in (1) or (2) above,
Certificated Notes shall be issued in such names as the Depositary shall
instruct the Trustee.  Global Notes also
may be exchanged or replaced, in whole or in part, as provided in Sections
2.07 and 2.10 hereof.  Every
Note authenticated and delivered in exchange for, or in lieu of, a Global Note
or any portion thereof, pursuant to this Section 2.06 or Section 2.07
or 2.10 hereof, shall be authenticated and delivered in the form of, and
shall be, a Global Note.  A Global Note
may not be exchanged for another Note other than as provided in this Section 2.06(a),
however, beneficial interests in a Global Note may be transferred and exchanged
as provided in Section 2.06(b) hereof.

 

(b)                                 Transfer
and Exchange of Beneficial Interests in the Global Notes.  The transfer and exchange of beneficial
interests in the Global Notes will be effected through the Depositary, in
accordance with the provisions of this Indenture and the Applicable Procedures.  Transfers of beneficial interests in the
Global Notes also will require compliance with either subparagraph (1) or
(2) below, as applicable, as well as one or more of the other
following subparagraphs, as applicable:

 

(1)                                  Transfer
of Beneficial Interests in the Same Global Note.  Beneficial interests in any Global Note may
be transferred to Persons who take delivery thereof in the form of a beneficial
interest in a Global Note.  No written
orders or instructions shall be required to be delivered to the Registrar to
effect the transfers described in this Section 2.06(b)(1).

 

(2)                                  All
Other Transfers and Exchanges of Beneficial Interests in Global Notes.  In connection with all transfers and
exchanges of beneficial interests that are not subject to Section 2.06(b)(1) above,
the transferor of such beneficial interest must deliver to the Registrar
either:

 

(A)                              both:

 

(i)                                     a
written order from a Participant or an Indirect Participant given to the
Depositary in accordance with the Applicable Procedures directing the
Depositary to credit or cause to be credited a beneficial interest in another
Global Note in an amount equal to the beneficial interest to be transferred or
exchanged; and

 

(ii)                                  instructions
given in accordance with the Applicable Procedures containing information
regarding the Participant account to be credited with such increase; or

 

(B)                                both:

 

(i)                                     a
written order from a Participant or an Indirect Participant given to the
Depositary in accordance with the Applicable Procedures 

 

29

 

directing the Depositary to cause to be issued a
Certificated Note in an amount equal to the beneficial interest to be
transferred or exchanged; and

 

(ii)                                  instructions
given by the Depositary to the Registrar containing information regarding the
Person in whose name such Certificated Note shall be registered to effect the
transfer or exchange referred to in (1) above.  Upon satisfaction of all of the requirements
for transfer or exchange of beneficial interests in Global Notes contained in
this Indenture and the Notes or otherwise applicable under the Securities Act,
the Trustee shall adjust the principal amount of the relevant Global Note(s)
pursuant to Section 2.06(f) hereof.

 

(c)                                  Transfer
or Exchange of Beneficial Interests for Certificated Notes.

 

(1)                                  Beneficial
Interests in Global Notes to Certificated Notes.  If any holder of a beneficial interest in a
Global Note proposes to exchange such beneficial interest for a Certificated
Note or to transfer such beneficial interest to a Person who takes delivery
thereof in the form of a Certificated Note, then, upon satisfaction of the
conditions set forth in Section 2.06(b)(2) hereof, the Trustee
will cause the aggregate principal amount of the applicable Global Note to be
reduced accordingly pursuant to Section 2.06(f) hereof, and
the Company will execute and the Trustee will authenticate and deliver to the
Person designated in the instructions a Certificated Note in the appropriate
principal amount.  Any Certificated Note
issued in exchange for a beneficial interest pursuant to this Section 2.06(c)(3) will
be registered in such name or names and in such authorized denomination or
denominations as the holder of such beneficial interest requests through
instructions to the Registrar from or through the Depositary and the
Participant or Indirect Participant.  The
Trustee will deliver such Certificated Notes to the Persons in whose names such
Notes are so registered.

 

(d)                                 Transfer
and Exchange of Certificated Notes for Beneficial Interests.

 

(1)                                  Certificated
Notes to Beneficial Interests in Global Notes.  A Holder of an Certificated Note may exchange
such Note for a beneficial interest in a Global Note or transfer such
Certificated Notes to a Person who takes delivery thereof in the form of a
beneficial interest in a Global Note at any time.  Upon receipt of a request for such an
exchange or transfer, the Trustee will cancel the applicable Certificated Note
and increase or cause to be increased the aggregate principal amount of one of
the Global Notes.

 

If any such
exchange or transfer from a Certificated Note to a beneficial interest is
effected pursuant to subparagraph (1) above at a time when a Global
Note has not yet been issued, the Company will issue and, upon receipt of an
Authentication Order in accordance with Section 2.02 hereof, the
Trustee will authenticate one or more Global Notes in an aggregate principal
amount equal to the principal amount of Certificated Notes so transferred.

 

(e)                                  Transfer
and Exchange of Certificated Notes for Certificated Notes.  Upon request by a Holder of Certificated
Notes and such Holder’s compliance with the provisions of this Section 2.06(e),
the Registrar will register the transfer or exchange of Certificated Notes. Prior

 

30

 

to such
registration of transfer or exchange, the requesting Holder must present or
surrender to the Registrar the Certificated Notes duly endorsed or accompanied
by a written instruction of transfer in form satisfactory to the Registrar duly
executed by such Holder or by its attorney, duly authorized in writing.  In addition, the requesting Holder must
provide any additional certifications, documents and information, as
applicable, required pursuant to the following provisions of this Section 2.06(e).

 

(1)                                  Certificated
Notes to Certificated Notes.  A
Holder of Certificated Notes may transfer such Notes to a Person who takes
delivery thereof in the form of an Certificated Note.  Upon receipt of a request to register such a
transfer, the Registrar shall register the Certificated Notes pursuant to the
instructions from the Holder thereof.

 

(2)                                  Global
Note Legend.  Each Global Note will
bear a legend in substantially the following form:

 

“THIS GLOBAL
NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE SUPPLEMENTAL INDENTURE
GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE
BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY
CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS
HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.06 OF THE
SUPPLEMENTAL INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED IN
WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE
SUPPLEMENTAL INDENTURE, (3) THIS GLOBAL NOTE MAY BE DELIVERED TO THE
TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE
SUPPLEMENTAL INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO
A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.

 

UNLESS AND
UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM,
THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A
NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY
OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE
TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.  UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW
YORK, NEW YORK) (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

31

 

(f)                                    Cancellation
and/or Adjustment of Global Notes. 
At such time as all beneficial interests in a particular Global Note
have been exchanged for Certificated Notes or a particular Global Note has been
redeemed, repurchased or canceled in whole and not in part, each such Global
Note will be returned to or retained and canceled by the Trustee in accordance
with Section 2.11 hereof.  At
any time prior to such cancellation, if any beneficial interest in a Global
Note is exchanged for or transferred to a Person who will take delivery thereof
in the form of a beneficial interest in another Global Note or for Certificated
Notes, the principal amount of Notes represented by such Global Note will be
reduced accordingly and an endorsement will be made on such Global Note by the
Trustee or by the Depositary at the direction of the Trustee to reflect such
reduction; and if the beneficial interest is being exchanged for or transferred
to a Person who will take delivery thereof in the form of a beneficial interest
in another Global Note, such other Global Note will be increased accordingly
and an endorsement will be made on such Global Note by the Trustee or by the
Depositary at the direction of the Trustee to reflect such increase.

 

(g)                                 General
Provisions Relating to Transfers and Exchanges.

 

(1)                                  To
permit registrations of transfers and exchanges, the Company will execute and
the Trustee will authenticate Global Notes and Certificated Notes upon receipt
of an Authentication Order in accordance with Section 2.02 or at
the Registrar’s request.

 

(2)                                  No
service charge will be made to a Holder of a beneficial interest in a Global
Note or to a Holder of a Certificated Note for any registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
transfer tax or similar governmental charge payable in connection therewith
(other than any such transfer taxes or similar governmental charge payable upon
exchange or transfer pursuant to Sections 2.10, 3.06, 3.09,
4.10, 4.15 and 9.05 hereof).

 

(3)                                  The
Registrar will not be required to register the transfer of or exchange of any
Note selected for redemption in whole or in part, except the unredeemed portion
of any Note being redeemed in part.

 

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

 

(5)                                  Neither
the Registrar nor the Company will be required:

 

(A)                              to
issue, to register the transfer of or to exchange any Notes during a period
beginning at the opening of business 15 days before the day of any selection of
Notes for redemption under Section 3.02 hereof and ending at the
close of business on the day of selection;

 

32

 

(B)                                to
register the transfer of or to exchange any Note selected for redemption in
whole or in part, except the unredeemed portion of any Note being redeemed in
part; or

 

(C)                                to
register the transfer of or to exchange a Note between a record date and the
next succeeding interest payment date.

 

(6)                                  Prior
to due presentment for the registration of a transfer of any Note, the Trustee,
any Agent and the Company may deem and treat the Person in whose name any Note
is registered as the absolute owner of such Note for the purpose of receiving
payment of principal of and interest on such Notes and for all other purposes,
and none of the Trustee, any Agent or the Company shall be affected by notice
to the contrary.

 

(7)                                  The
Trustee will authenticate Global Notes and Certificated Notes in accordance
with the provisions of Section 2.02 hereof.

 

(8)                                  All
certifications, certificates and Opinions of Counsel required to be submitted
to the Registrar pursuant to this Section 2.06 to effect a
registration of transfer or exchange may be submitted by facsimile.

 

Section 2.07                                Replacement
Notes.  If any mutilated Note is
surrendered to the Trustee or the Company and the Trustee receives evidence to
its satisfaction of the destruction, loss or theft of any Note, the Company
will issue and the Trustee, upon receipt of an Authentication Order, will authenticate
a replacement Note if the Trustee’s requirements are met.  If required by the Trustee or the Company, an
indemnity bond must be supplied by the Holder that is sufficient in the
judgment of the Trustee and the Company to protect the Company, the Trustee,
any Agent and any authenticating agent from any loss that any of them may
suffer if a Note is replaced.  The
Company may charge for its expenses in replacing a Note.

 

Every
replacement Note is an additional obligation of the Company and will be entitled
to all of the benefits of this Indenture equally and proportionately with all
other Notes duly issued hereunder.

 

Section 2.08                                Outstanding
Notes.  The Notes outstanding at any
time are all the Notes authenticated by the Trustee except for those canceled
by it, those delivered to it for cancellation, those reductions in the interest
in a Global Note effected by the Trustee in accordance with the provisions
hereof and those described in this Section as not outstanding.  Except as set forth in Section 2.09
hereof, a Note does not cease to be outstanding because the Company or an
Affiliate of the Company holds the Note; however, Notes held by the Company or
a Subsidiary of the Company shall not be deemed to be outstanding for purposes
of Section 3.07(a) hereof.

 

If a Note is
replaced pursuant to Section 2.07 hereof, it ceases to be
outstanding.

 

If the
principal amount of any Note is considered paid under Section 4.01
hereof, it ceases to be outstanding and interest on it ceases to accrue.

 

If the Paying
Agent (other than the Company, a Subsidiary or an Affiliate of any thereof)
holds, on a redemption date or maturity date, money sufficient to pay Notes
payable on that date,

 

33

 

 then on and after that date such
Notes will be deemed to be no longer outstanding and will cease to accrue
interest.

 

Section 2.09                                Treasury
Notes.  In determining whether the
Holders of the required principal amount of Notes have concurred in any
direction, waiver or consent, Notes owned by the Company or any Guarantor, or
by any Person directly or indirectly controlling or controlled by or under
direct or indirect common control with the Company or any Guarantor, will be
considered as though not outstanding, except that for the purposes of
determining whether the Trustee will be protected in relying on any such
direction, waiver or consent, only Notes that a Responsible Officer of the
Trustee actually knows are so owned will be so disregarded.

 

Section 2.10                                Temporary
Notes.  Until certificates
representing Notes are ready for delivery, the Company may prepare and the
Trustee, upon receipt of an Authentication Order, will authenticate temporary
Notes.  Temporary Notes will be
substantially in the form of Certificated Notes but may have variations that
the Company considers appropriate for temporary Notes and as may be reasonably
acceptable to the Trustee.  Without
unreasonable delay, the Company will prepare and the Trustee will authenticate
Certificated Notes in exchange for temporary Notes.

 

Holders of
temporary Notes will be entitled to all of the benefits of this Indenture.

 

Section 2.11                                Cancellation.  The Company at any time may deliver Notes to
the Trustee for cancellation.  The
Registrar and Paying Agent will forward to the Trustee any Notes surrendered to
them for registration of transfer, exchange or payment The Trustee and no one
else will cancel all Notes surrendered for registration of transfer, exchange,
payment, replacement or cancellation and will dispose of such canceled Notes
(subject to the record retention requirement of the Exchange Act in its
customary manner).  Certification of the
destruction of all canceled Notes will be delivered to the Company upon its
request therefor.  The Company may not
issue new Notes to replace Notes that it has paid or that have been delivered
to the Trustee for cancellation.

 

Section 2.12                                Defaulted
Interest.  If the Company defaults in
a payment of interest on the Notes, it will pay the defaulted interest in any
lawful manner plus, to the extent lawful, interest payable on the defaulted
interest, to the Persons who are Holders on a subsequent special record date,
in each case at the rate provided in the Notes and in Section 4.01
hereof.  The Company will 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. 
The Company will fix or cause to be fixed each such special record date
and payment date, provided that no such special record date may be less
than 10 days prior to the related payment date for such defaulted
interest.  At least 15 days before the
special record date, the Company (or, upon the written request of the Company,
the Trustee in the name and at the expense of the Company) will mail or cause
to be mailed to Holders a notice that states the special record date, the
related payment date and the amount of such interest to be paid.

 

Section 2.13                                CUSIP
Numbers.  The Company in issuing the
Securities 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
Holders; provided that any such notice may state that 

 

34

 

no representation
is made as to the correctness of such numbers either as printed on the
Securities or as contained in any notice of a redemption and that reliance may
be placed only on the other identification numbers printed on the Securities,
and any such redemption shall not be affected by any defect in or omission of
such numbers.  The Company will promptly
notify the Trustee in writing of any change in the “CUSIP” numbers.

 

ARTICLE 3

 

REDEMPTION AND PREPAYMENT

 

For purposes of this series
of Securities (as defined in the Base Indenture), this Article 3 hereby
amends and restates in its entirety Article Eleven of the Base Indenture.

 

Section 3.01                                Notices
to Trustee.  If the Company elects to
redeem Notes pursuant to the optional redemption provisions of Section 3.07
hereof, it must furnish to the Trustee, at least 30 days but not more than 60
days before a redemption date, an Officers’ Certificate setting forth:

 

(1)                                  the
clause of this Indenture pursuant to which the redemption shall occur;

 

(2)                                  the
redemption date;

 

(3)                                  the
principal amount of Notes to be redeemed;

 

(4)                                  the
redemption price; and

 

(5)                                  applicable
CUSIP numbers.

 

Section 3.02                                Selection
of Notes to Be Redeemed or Purchased. 
If less than all of the Notes are to be redeemed or purchased in an
offer to purchase at any time, the Trustee will select Notes for redemption or
purchase as follows:

 

(1)                                  if
the Notes are listed on any national securities exchange, in compliance with
the requirements of the principal national securities exchange on which the
Notes are listed; or

 

(2)                                  if
the Notes are not listed on any national securities exchange, on a pro rata basis, by lot or by such method as
the Trustee shall deem fair and appropriate.

 

In the event
of partial redemption or purchase by lot, the particular Notes to be redeemed
or purchased will be selected, unless otherwise provided herein, not less than
30 nor more than 60 days prior to the redemption or purchase date by the
Trustee from the outstanding Notes not previously called for redemption or
purchase.

 

The Trustee
will promptly notify the Company in writing of the Notes selected for
redemption or purchase and, in the case of any Note selected for partial
redemption or purchase, the principal amount thereof to be redeemed or
purchased.  Notes and portions of Notes
selected will be in amounts of $1,000 or whole multiples of $1,000; except that
if all of the Notes of a Holder are to be redeemed or purchased, the entire
outstanding amount of Notes held by such 

 

35

 

Holder, even if not a multiple of $1,000, shall be redeemed or
purchased.  Except as provided in the
preceding sentence, provisions of this Indenture that apply to Notes called for
redemption or purchase also apply to portions of Notes called for redemption or
purchase.

 

Section 3.03                                Notice
of Redemption.  Subject to the
provisions of Section 3.09 hereof, at least 30 days but not more
than 60 days before a redemption date, the Company will mail or cause to be
mailed, by first class mail, a notice of redemption to each Holder whose Notes
are to be redeemed at its registered address, except that redemption notices
may be mailed more than 60 days prior to a redemption date if the notice is
issued in connection with a defeasance of the Notes or a satisfaction and
discharge of this Indenture pursuant to Articles 8 or 12 of this
Indenture.

 

The notice
will identify the Notes to be redeemed and will state:

 

(1)                                  the
redemption date;

 

(2)                                  the
redemption price;

 

(3)                                  if
any Note is being redeemed in part, the portion of the principal amount of such
Note to be redeemed and that, after the redemption date upon surrender of such
Note, a new Note or Notes in principal amount equal to the unredeemed portion
will be issued upon cancellation of the original Note;

 

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

 

(5)                                  that
Notes called for redemption must be surrendered to the Paying Agent to collect
the redemption price;

 

(6)                                  that,
unless the Company defaults in making such redemption payment, interest on
Notes called for redemption ceases to accrue on and after the redemption date;

 

(7)                                  the
paragraph of the Notes and/or Section of this Indenture pursuant to which
the Notes called for redemption are being redeemed; and

 

(8)                                  that
no representation is made as to the correctness or accuracy of the CUSIP
number, if any, listed in such notice or printed on the Notes.

 

At the Company’s
request, the Trustee will give the notice of redemption in the Company’s name
and at its expense; provided, however, that the Company has
delivered to the Trustee, at least 45 days prior to the redemption date, an
Officers’ Certificate requesting that the Trustee give such notice and setting
forth the information to be stated in such notice as provided in the preceding
paragraph.

 

Section 3.04                                Effect
of Notice of Redemption.  Once notice
of redemption is mailed in accordance with Section 3.03 hereof,
Notes called for redemption become irrevocably due and payable on the
redemption date at the redemption price. 
A notice of redemption may not be conditional.

 

36

 

Section 3.05                                Deposit
of Redemption or Purchase Price.  One
Business Day prior to the redemption or purchase date, the Company will deposit
with the Trustee or with the Paying Agent money sufficient to pay the
redemption or purchase price of and accrued interest, if any, on all Notes to
be redeemed or purchased on that date. 
The Trustee or the Paying Agent will promptly return to the Company any
money deposited with the Trustee or the Paying Agent by the Company in excess
of the amounts necessary to pay the redemption or purchase price of, and
accrued interest, if any, on, all Notes to be redeemed or purchased.

 

If the Company
complies with the provisions of the preceding paragraph, on and after the
redemption or purchase date, interest will cease to accrue on the Notes or the
portions of Notes called for redemption or purchase.  If a Note is redeemed or purchased on or
after an interest record date but on or prior to the related interest payment
date, then any accrued and unpaid interest shall be paid to the Person in whose
name such Note was registered at the close of business on such record
date.  If any Note called for redemption
or purchase is not so paid upon surrender for redemption or purchase because of
the failure of the Company to comply with the preceding paragraph, interest
shall be paid on the unpaid principal, from the redemption or purchase date
until such principal is paid, and to the extent lawful on any interest not paid
on such unpaid principal, in each case at the rate provided in the Notes and in
Section 4.01 hereof.

 

Section 3.06                                Notes
Redeemed or Purchased in Part.  Upon
surrender of a Note that is redeemed or purchased in part, the Company will
issue and, upon receipt of an Authentication Order, the Trustee will
authenticate for the Holder at the expense of the Company a new Note equal in
principal amount to the unredeemed or unpurchased portion of the Note
surrendered.

 

Section 3.07                                Optional
Redemption.

 

(a)                                  At
any time prior to February 1, 2011, the Company may redeem the Notes
issued under this Indenture for cash at its option, in whole or in part, at any
time or from time to time, upon not less than 30 days’ nor more than 60 days’
notice to each Holder, at a redemption price equal to the greater of:

 

(1)                                  100%
of the principal amount of the Notes being redeemed and

 

(2)                                  the
sum of the present values of 103.813% of the principal amount of the Notes
being redeemed and scheduled payments of interest on such Notes to but not
including February 1, 2011 discounted to the date of redemption on a
semi-annual basis (assuming a 360-day year consisting of twelve 30-day months)
at the Treasury Rate plus 50 basis points,

 

together with
accrued and unpaid interest, if any, to but not including the date of
redemption.

 

(b)                                 At
any time prior to February 1, 2009, the Company may on any one or more
occasions redeem up to 35% of the aggregate principal amount of Notes issued
under this Indenture (including any Additional Notes issued after the date
hereof) at a redemption price of 107.625% of the principal amount thereof, plus
accrued and unpaid interest, if any, to, but excluding, the redemption date,
with the net cash proceeds of one or more Equity Offerings; provided
that:

 

37

 

(1)                                  at
least 65% of the aggregate principal amount of Notes originally issued under
this Indenture (excluding Notes held by the Company and its Subsidiaries)
remains outstanding immediately after the occurrence of such redemption; and

 

(2)                                  the
redemption occurs within 120 days of the date of the closing of such Equity
Offering.

 

Except
pursuant to the preceding two paragraphs, the Notes will not be redeemable at
the Company’s option prior to February 1, 2011.

 

(c)                                  On
or after February 1, 2011, the Company may redeem all or a part of the
Notes upon not less than 30 nor more than 60 days’ notice, at the redemption
prices (expressed as percentages of principal amount) set forth below plus
accrued and unpaid interest, if any, on the Notes redeemed, to, but excluding,
the applicable redemption date, if redeemed during the twelve-month period
beginning on February 1 of the years indicated below, subject to the
rights of Holders on the relevant record date to receive interest on the
relevant interest payment date:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
  2011

  	
   

  	
  103.813

  	
  %

  
	
  2012

  	
   

  	
  102.542

  	
  %

  
	
  2013

  	
   

  	
  101.271

  	
  %

  
	
  2014 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

Unless the Company defaults
in the payment of the redemption price, interest will cease to accrue on the
Notes or portions thereof called for redemption on the applicable redemption
date.

 

(d)                                 Any
redemption pursuant to this Section 3.07 shall be made pursuant to
the provisions of Section 3.01 through 3.06 hereof.

 

Section 3.08                                Mandatory
Redemption.  The Company is not
required to make mandatory redemption or sinking fund payments with respect to
the Notes.

 

Section 3.09                                Offer
to Purchase by Application of Excess Proceeds.  In the event that, pursuant to Section 4.10
hereof, the Company is required to commence an offer to all Holders to purchase
Notes (an “Asset Sale Offer”), it will follow the procedures specified
below.

 

The Asset Sale
Offer shall be made to all Holders and all holders of other Indebtedness pari
passu with the Notes containing
provisions similar to those set forth in this Indenture with respect to offers
to purchase or redeem with the proceeds of sales of assets.  The Asset Sale Offer will remain open for a
period of at least 20 Business Days following its commencement and not more
than 30 Business Days, except to the extent that a longer period is required by
applicable law (the “Offer Period”). 
No later than three Business Days after the termination of the Offer
Period (the “Purchase Date”), the Company will apply all Excess Proceeds
(the “Offer Amount”) to (i) first to purchase or redeem the maximum
principal amount of Senior Notes and such other Indebtedness pari  passu
with the Senior Notes and (ii) second, if any Excess Proceeds remain
following such purchase or redemption, to purchase or redeem the maximum
principal amount of Notes and such other Indebtedness pari  passu
with the Notes.  Payment for any Notes so
purchased will be made in the same manner as interest payments are made.

 

38

 

If any Excess
Proceeds remain after consummation of an Asset Sale Offer, the Company may use
those Excess Proceeds for any purpose not otherwise prohibited by this
Indenture.  If the aggregate principal
amount of Senior Notes and other Indebtedness pari  passu with the
Senior Notes tendered into such Asset Sale Offer exceeds the amount of Excess
Proceeds, the Trustee will select the Senior Notes and such other Indebtedness pari
passu with the Senior Notes to be purchased on a pro  rata
basis.  If the aggregate principal amount
of Notes and other Indebtedness pari  passu with the Notes
tendered into such Asset Sale Offer exceeds the amount of Excess Proceeds
following the purchase in full of all of the Senior Notes and other
Indebtedness pari  passu with the Senior Notes, the Trustee will
select the Notes and such other Indebtedness pari  passu with the
Notes to be purchased on a pro  rata basis. Upon completion of
each Asset Sale Offer, the amount of Excess Proceeds will be reset at zero.

 

If the
Purchase Date is on or after an interest record date and on or before the
related interest payment date, any accrued and unpaid interest, if any, will be
paid to the Person in whose name a Note is registered at the close of business
on such record date, and no additional interest will be payable to Holders who
tender Notes pursuant to the Asset Sale Offer.

 

Upon the
commencement of an Asset Sale Offer, the Company will send, by first class
mail, a notice to the Trustee and each of the Holders, with a copy to the
Trustee.  The notice will contain all
instructions and materials necessary to enable such Holders to tender Notes
pursuant to the Asset Sale Offer.  The
notice, which will govern the terms of the Asset Sale Offer, will state:

 

(1)                                  that
the Asset Sale Offer is being made pursuant to this Section 3.09
and Section 4.10 hereof and the length of time the Asset Sale Offer
will remain open;

 

(2)                                  the
Offer Amount, the purchase price and the Purchase Date;

 

(3)                                  that
any Note not tendered or accepted for payment will continue to accrue interest;

 

(4)                                  that,
unless the Company defaults in making such payment, any Note accepted for
payment pursuant to the Asset Sale Offer will cease to accrue interest after
the Purchase Date;

 

(5)                                  that
Holders electing to have a Note purchased pursuant to an Asset Sale Offer may
elect to have Notes purchased in integral multiples of $1,000 only;

 

(6)                                  that
Holders electing to have Notes purchased pursuant to any Asset Sale Offer will
be required to surrender the Note, with the form entitled “Option of Holder to
Elect Purchase” attached to the Notes completed, or transfer by book-entry
transfer, to the Company, a Depositary, if appointed by the Company, or a
Paying Agent at the address specified in the notice at least three days before
the Purchase Date;

 

(7)                                  that
Holders will be entitled to withdraw their election if the Company, the
Depositary or the Paying Agent, as the case may be, receives, not later than
the expiration of the Offer Period, a telegram, telex, facsimile transmission
or letter setting forth the name of the Holder, the principal amount of the
Note the Holder delivered for purchase

 

39

 

and a statement that such Holder is withdrawing his
election to have such Note purchased;

 

(8)                                  that,
if the aggregate principal amount of Notes and other pari  passu Indebtedness surrendered by holders thereof exceeds the
Offer Amount, the Company will select the Notes and other pari  passu
Indebtedness to be purchased on a pro rata
basis based on the principal amount of Notes and such other pari  passu Indebtedness surrendered (with such adjustments as may be
deemed appropriate by the Company so that only Notes in denominations of
$1,000, or integral multiples thereof, will be purchased); and

 

(9)                                  that
Holders whose Notes were purchased only in part will be issued new Notes equal
in principal amount to the unpurchased portion of the Notes surrendered (or
transferred by book-entry transfer).

 

On or before
the Purchase Date, the Company will, to the extent lawful, accept for payment,
on a pro rata basis to the extent
necessary, the Offer Amount of Notes or portions thereof tendered pursuant to
the Asset Sale Offer, or if less than the Offer Amount has been tendered, all
Notes tendered, and will deliver or cause to be delivered to the Trustee the
Notes properly accepted together with an Officers’ Certificate stating that
such Notes or portions thereof were accepted for payment by the Company in
accordance with the terms of this Section 3.09.  The Company, the Depositary or the Paying
Agent, as the case may be, will promptly (but in any case not later than seven
days after the Purchase Date) mail or deliver to each tendering Holder an
amount equal to the purchase price of the Notes tendered by such Holder and
accepted by the Company for purchase, and the Company, will promptly issue a
new Note, and the Trustee, upon written request from the Company will
authenticate and mail or deliver (or cause to be transferred by book entry)
such new Note to such Holder, in a principal amount equal to any unpurchased
portion of the Note surrendered.  Any Note
not so accepted shall be promptly mailed or delivered by the Company to the
Holder thereof.  The Company will
publicly announce the results of the Asset Sale Offer on the Purchase Date.

 

Other than as
specifically provided in this Section 3.09, any purchase pursuant
to this Section 3.09 shall be made pursuant to the provisions of Sections
3.01 through 3.06 hereof

 

ARTICLE 4

 

COVENANTS

 

For purposes of this series
of Securities (as defined in the Base Indenture), this Article 4 hereby
amends and restates in its entirety Article Ten of the Base Indenture.

 

Section 4.01                                Payment
of Notes.  The Company will pay or
cause to be paid the principal of, premium, if any, and interest on the Notes
on the dates and in the manner provided in the Notes.  Principal, premium, if any, and interest will
be considered paid on the date due if the Paying Agent, if other than the
Company or a Subsidiary thereof, holds as of 10:00 a.m. Eastern Time on
the due date money deposited by the Company in immediately available funds and designated
for and sufficient to pay all principal, premium, if any, and interest then
due.

 

40

 

The Company
will pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal at the rate equal to 1% per annum in
excess of the then applicable interest rate on the Notes to the extent lawful;
it will pay interest (including post-petition interest in any proceeding under
any Bankruptcy Law) on overdue installments of interest (without regard to any
applicable grace period) at the same rate to the extent lawful.

 

Section 4.02                                Maintenance
of Office or Agency.  The Company
will maintain in the Borough of Manhattan, the City of New York, an office or
agency (which may be an office of the Trustee or an affiliate of the Trustee,
Registrar or co-registrar) where Notes may be surrendered for registration of
transfer or for exchange and where notices and demands to or upon the Company
in respect of the Notes and this Indenture may be served.  The Company will give prompt written notice
to the Trustee of the location, and any change in the location, of such office
or agency.  If at any time the Company
fails to maintain any such required office or agency or fails to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and
demands may be made or served at the Corporate Trust Office of the Trustee.

 

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

 

The Company
hereby designates the Corporate Trust Office of the Trustee as one such office
or agency of the Company in accordance with Section 2.03 hereof.

 

Section 4.03                                Reports.  (a)  Whether or not required by the SEC’s
rules and regulations, so long as any Notes are outstanding, the Company
will file with the SEC and provide to the Trustee, within one Business Day of
the time periods specified in the SEC’s rules and regulations:

 

(1)                                  all
quarterly and annual reports that would be required to be filed with the SEC on
Forms 10-Q and 10-K if the Company were required to file such reports; and

 

(2)                                  all
current reports that would be required to be filed with the SEC on Form 8-K
if the Company were required to file such reports.

 

All such reports will be
prepared in all material respects in accordance with the rules and
regulations applicable to such reports. 
Each annual report on Form 10-K will include a report on the
Company’s consolidated financial statements by the Company’s certified
independent accountants.  In addition,
the Company will file a copy of each of the reports referred to in clauses (1) and
(2) above with the SEC for public availability within the time
periods specified in the rules and regulations applicable to such reports
(unless the SEC will not accept such a filing) and will post the reports on its
website within the time periods specified in this Indenture.  Delivery of such reports, information and
documents to the Trustee is for informational purposes only and the Trustee’s
receipt of such shall not constitute constructive notice of any information 

 

41

 

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

 

(b)                                 If
the Company has designated any of its Subsidiaries as Unrestricted
Subsidiaries, then the quarterly and annual financial information required by
the preceding paragraph will include a presentation, either on the face of the
financial statements or in the footnotes thereto, and in Management’s
Discussion and Analysis of Financial Condition and Results of Operations, of
the financial condition and results of operations of the Company and its
Restricted Subsidiaries separate from the financial condition and results of
operations of the Unrestricted Subsidiaries of the Company.

 

(c)                                  If,
at any time, the Company is no longer subject to the periodic reporting
requirements of the Exchange Act for any reason, the Company will nevertheless
continue filing the reports specified in the preceding paragraph with the SEC
within the time periods specified above unless the SEC will not accept such a
filing.  The Company agrees that it will not
take any action for the purpose of causing the SEC not to accept any such
filings.  If, notwithstanding the
foregoing, the SEC will not accept the Company’s filings for any reason, the
Company will post the reports referred to in Section 4.03(a) on
its website within the time periods that would apply if the Company were
required to file those reports with the SEC.

 

(d)                                 In
addition, the Company and the Guarantors agree that, for so long as any Notes
remain outstanding, at any time they are not required to file the reports
required by the preceding paragraphs with the SEC, they will furnish to the
Holders and to securities analysts and prospective investors, upon their
request, the information required to be delivered pursuant to Rule 144A(d)(4) under
the Securities Act.

 

Section 4.04                                Compliance
Certificate.  (a)  The Company
and each Guarantor (to the extent that such Guarantor is so required under the
TIA) shall deliver to the Trustee, within 90 days after the end of each fiscal
year, an Officers’ Certificate stating that a review of the activities of the
Company and its Subsidiaries during the preceding fiscal year has been made
under the supervision of the signing Officers with a view to determining
whether the Company has kept, observed, performed and fulfilled its obligations
under this Indenture, and further stating, as to each such Officer signing such
certificate, that to the best of his or her knowledge the Company has kept,
observed, performed and fulfilled each and every covenant contained in this
Indenture and is not in default in the performance or observance of any of the
terms, provisions and conditions of this Indenture (or, if a Default or Event
of Default has occurred, describing all such Defaults or Events of Default of
which he or she may have knowledge and what action the Company is taking or
proposes to take with respect thereto).

 

(b)                                 So
long as any of the Notes are outstanding, the Company will deliver to the
Trustee, forthwith upon any Officer becoming aware of any Default or Event of Default,
an Officers’ Certificate specifying such Default or Event of Default and what
action the Company is taking or proposes to take with respect thereto.

 

Section 4.05                                Taxes.  The Company will pay, and will cause each of
its Subsidiaries to pay, prior to delinquency, all material taxes, assessments,
and governmental levies except such 

 

42

 

as are contested
in good faith and by appropriate proceedings or where the failure to effect
such payment is not adverse in any material respect to the Holders of the
Notes.

 

Section 4.06                                Stay,
Extension and Usury Laws.  The
Company and each of the Guarantors (to the extent that it may lawfully do so)
covenants that it will not at any time insist upon, plead, or in any manner
whatsoever claim or take the benefit or advantage of, any stay, extension or
usury law wherever enacted, now or at any time hereafter in force, that may
affect the covenants or the performance of this Indenture; and the Company and
each of the Guarantors (to the extent that it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law, and covenants that
it will not, by resort to any such law, hinder, delay or impede the execution
of any power herein granted to the Trustee, but will suffer and permit the
execution of every such power though no such law has been enacted.

 

Section 4.07                                Restricted
Payments.  (a)  The Company will
not, and will not permit any of its Restricted Subsidiaries to, directly or
indirectly:

 

(1)                                  declare
or pay any dividend or make any other payment or distribution on account of the
Company’s or any of its Restricted Subsidiaries’ Equity Interests (including,
without limitation, any payment in connection with any merger or consolidation
involving the Company or any of its Restricted Subsidiaries) or to the direct
or indirect holders of the Company’s or any of its Restricted Subsidiaries’
Equity Interests in their capacity as such (other than dividends or
distributions payable in Equity Interests (other than Disqualified Stock) of
the Company and other than dividends or distributions payable to the Company or
a Restricted Subsidiary of the Company);

 

(2)                                  purchase,
redeem or otherwise acquire or retire for value (including, without limitation,
in connection with any merger or consolidation involving the Company) any
Equity Interests of the Company or any direct or indirect parent of the
Company;

 

(3)                                  make
any payment on or with respect to, or purchase, redeem, defease or otherwise
acquire or retire for value any Subordinated Indebtedness of the Company or any
Guarantor (excluding any intercompany Indebtedness between or among the Company
and any of its Restricted Subsidiaries), except a payment of interest or
principal at the Stated Maturity thereof; or

 

(4)                                  make
any Restricted Investment

 

(all such payments
and other actions set forth in clauses (1) through (4) above
being collectively referred to as “Restricted Payments”), unless, at the
time, of and after giving effect to such Restricted Payment:

 

(1)                                  no
Default or Event of Default has occurred and is continuing or would occur as a
consequence of such Restricted Payment;

 

(2)                                  the
Company would, at the time of such Restricted Payment and after giving pro forma effect thereto as if such Restricted
Payment had been made at the beginning of the applicable four-quarter period,
have been permitted to incur at least 

 

43

 

$1.00 of additional Indebtedness pursuant to the Fixed
Charge Coverage Ratio test set forth in the first paragraph of Section 4.09
hereof; and

 

(3)                                  such
Restricted Payment, together with the aggregate amount of all other Restricted
Payments made by the Company and its Restricted Subsidiaries since October 1,
2003 (excluding Restricted Payments permitted by clauses (2), (3),
(4), (6), (7), (8), (9), (10), (11),
(12), (13) and (14) of paragraph (b) below),
is less than the sum, without duplication, of:

 

(A)                              50%
of the Consolidated Net Income of the Company for the period (taken as one
accounting period) from October 1, 2003 to the end of the Company’s most
recently ended fiscal quarter for which internal financial statements are
available at the time of such Restricted Payment (or, if such Consolidated Net
Income for such period is a deficit, less 100% of such deficit), plus

 

(B)                                100%
of the aggregate net cash proceeds received by the Company since the October 1,
2003 as a contribution to its common equity capital or from the issue or sale
of Equity Interests of the Company including the payment of the exercise price
of options and warrants (other than Disqualified Stock) or from the issue or
sale of convertible or exchangeable Disqualified Stock or convertible or
exchangeable debt securities of the Company that have been converted into or
exchanged for such Equity Interests (other than Equity Interests (or
Disqualified Stock or debt securities) sold to a Subsidiary of the Company); plus

 

(C)                                to
the extent that any Restricted Investment that was made after the date hereof
is sold for cash or otherwise liquidated or repaid for cash, the greater of (i) the
cash return of capital with respect to such Restricted Investment (less the
cost of disposition, if any) and (ii) the initial amount of such
Restricted Investment; plus

 

(D)                               to
the extent that any Unrestricted Subsidiary of the Company designated as such
after the date hereof is redesignated as a Restricted Subsidiary after the date
hereof, the greater of (i) the Fair Market Value of the Company’s
Investment in such Subsidiary as of the date of such redesignation or (ii) such
Fair Market Value as of the date on which such Subsidiary was originally
designated as an Unrestricted Subsidiary after the date hereof; plus

 

(E)                                 50%
of any dividends received by the Company or a Restricted Subsidiary of the
Company that is a Guarantor after the date hereof from an Unrestricted
Subsidiary of the Company, to the extent that such dividends were not otherwise
included in Consolidated Net Income of the Company for such period.

 

(b)                                 So
long as no Default has occurred and is continuing or would be caused thereby,
the preceding provisions of Section 4.07(a) will not prohibit:

 

44

 

(1)                                  the
payment of any dividend within 60 days after the date of declaration of the
dividend, if at the date of declaration the dividend payment would have
complied with the provisions of this Indenture;

 

(2)                                  the
making of any Restricted Payment in exchange for, or out of the net cash
proceeds of the substantially concurrent sale (other than to a Subsidiary of the
Company) of, Equity Interests of the Company (other than Disqualified Stock) or
from the substantially concurrent contribution of common equity capital to the
Company, provided that the amount of any such net cash proceeds that are
utilized for any such Restricted Payment will be excluded from clause (3)(B) of
the preceding paragraph;

 

(3)                                  the
defeasance, redemption, repurchase or other acquisition of Indebtedness of the
Company or any Guarantor that is contractually subordinated to the Notes or to
any Subsidiary Guarantee with the net cash proceeds from a substantially
concurrent incurrence of Permitted Refinancing Indebtedness;

 

(4)                                  the
payment of any dividend (or, in the case of any partnership or limited
liability company, any similar distribution) by a Restricted Subsidiary of the
Company to the holders of its Equity Interests on a pro rata basis;

 

(5)                                  the
repurchase, redemption or other acquisition or retirement for value of any
Equity Interests of the Company or any Restricted Subsidiary of the Company
held by any current or former officer, director, employee or consultant of the
Company or any Restricted Subsidiary (or any permitted transferees of such
persons) of the Company pursuant to any equity subscription agreement, stock
option agreement, shareholders’ agreement or similar agreement; provided
that the aggregate price paid for all such repurchased, redeemed, acquired or
retired Equity Interests may not exceed $5.0 million in any twelve-month
period, provided, that the Company may carry forward and make in a
subsequent twelve-month period, in addition to the amounts permitted for such
twelve-month period, the amount of such repurchase, redemptions or other
acquisitions or retirements for value permitted to have been made but not made
in any preceding twelve-month period up to a maximum of $10.0 million in any
twelve-month period;

 

(6)                                  the
repurchase of Equity Interests deemed to occur upon the exercise of stock
options to the extent such Equity Interests represent a portion of the exercise
price of those stock options;

 

(7)                                  the
declaration and payment of regularly scheduled or accrued dividends to holders
of any class or series of Disqualified Stock of the Company or any Restricted
Subsidiary of the Company issued on or after the date of this Indenture in
accordance with the Fixed Charge Coverage Ratio test described in Section 4.09
hereof;

 

(8)                                  make
cash payments in lieu of the issuance of fractional shares in an aggregate
amount not to exceed $10.0 million in any twelve-month period;

 

(9)                                  the
repayment of intercompany debt, the incurrence of which was permitted pursuant
to Section 4.09 hereof;

 

45

 

(10)                            payments
made in connection with the ESSI Merger;

 

(11)                            satisfaction
of change of control obligations on subordinated obligations once the Company
has fulfilled its obligations relating to a Change of Control under the
indenture governing the Senior Notes;

 

(12)                            payments
made in satisfaction of an Asset Sale Offer with respect to the Notes or the
2013 Senior Subordinated Notes;

 

(13)                            any
distributions (whether direct or indirect and whether in the form of cash,
property, securities or otherwise) to shareholders, employees or other
permitted distributees under the Company’s 1996 Omnibus Plan and other benefit
or retirement plans maintained and created by the Company, its Restricted
Subsidiaries and its Affiliates; and

 

(14)                            other
Restricted Payments in an aggregate amount not to exceed $50.0 million since
the date of this Indenture.

 

The amount of
all Restricted Payments (other than cash) will be the Fair Market Value on the
date of the Restricted Payment of the asset(s) or securities proposed to be
transferred or issued by the Company or such Restricted Subsidiary, as the case
may be, pursuant to the Restricted Payment. 
The Fair Market Value of any assets or securities (other than cash or
cash equivalents) that are required to be valued by this Section 4.07
will be determined by the Board of Directors whose resolution with respect
thereto will be delivered to the Trustee. 
The Board of Directors’ determination must be based upon an opinion or
appraisal issued by an accounting, appraisal or investment banking firm of
national standing if the Fair Market Value exceeds $25.0 million.

 

Section 4.08                                Dividend
and Other Payment Restrictions Affecting Subsidiaries.  (a)  The Company will not, and will not
permit any of its Restricted Subsidiaries to, directly or indirectly, create or
permit to exist or become effective any consensual encumbrance or restriction
on the ability of any Restricted Subsidiary to:

 

(1)                                  pay
dividends or make any other distributions on its Capital Stock to the Company
or any of its Restricted Subsidiaries, or with respect to any other interest or
participation in, or measured by, its profits, or pay any indebtedness owed to
the Company or any of its Restricted Subsidiaries;

 

(2)                                  make
loans or advances to the Company or any of its Restricted Subsidiaries; or

 

(3)                                  sell,
lease or transfer any of its properties or assets to the Company or any of its
Restricted Subsidiaries.

 

(b)                                 The
restrictions in Section 4.08(a) will not apply to encumbrances
or restrictions existing under or by reason of:

 

46

 

(1)                                  the
Credit Agreement and related agreements and any amendments, modifications,
restatements, renewals, increases, supplements, refundings, replacements or
refinancings of those agreements; provided that the amendments,
modifications, restatements, renewals, increases, supplements, refundings,
replacements or refinancings are not materially more restrictive, taken as a
whole, with respect to such dividend and other payment restrictions than those
contained in those agreements as of the later of the date thereof or the date
of this Indenture as determined by the Board of Directors of the Company;

 

(2)                                  agreements
governing Existing Indebtedness and Credit Facilities as in effect on the date
of this Indenture and any amendments, modifications, restatements, renewals,
increases, supplements, refundings, replacements or refinancings of those
agreements; provided that the amendments, modifications, restatements,
renewals, increases, supplements, refundings, replacements or refinancings are
not materially more restrictive, taken as a whole, with respect to such dividend
and other payment restrictions than those contained in those agreements on the
date of this Indenture as determined by the Board of Directors of the Company;

 

(3)                                  this
Indenture, the indenture governing the Senior Notes, the Senior Notes, the
Notes and the Subsidiary Guarantees;

 

(4)                                  applicable
law, rule, regulation or order, approval, license, permit or similar
restriction;

 

(5)                                  any
instrument of a Person acquired by the Company or any of its Restricted
Subsidiaries as in effect at the time of such acquisition (except to the extent
if Indebtedness was incurred in connection with or in contemplation of such
acquisition), which encumbrance or restriction is not applicable to any Person,
or the properties or assets of any Person, other than the Person, or the
property or assets of the Person, so acquired; provided that, in the
case of Indebtedness, such Indebtedness was permitted to be incurred by the
terms of this Indenture;

 

(6)                                  customary
non-assignment provisions in contracts, leases and licenses entered into in the
ordinary course of business;

 

(7)                                  purchase
money obligations for property acquired in the ordinary course of business and
Capital Lease Obligations that impose restrictions on the property purchased or
leased of the nature described in clause (3) of Section 4.08(a);

 

(8)                                  any
agreement for the sale or other disposition of a Restricted Subsidiary that
restricts distributions by that Restricted Subsidiary pending the sale or other
disposition;

 

(9)                                  Permitted
Refinancing Indebtedness; provided that the restrictions contained in
the agreements governing such Permitted Refinancing Indebtedness are not
materially more restrictive, taken as a whole, than those contained in the
agreements governing the Indebtedness being refinanced as determined by the Board
of Directors of the Company;

 

47

 

(10)                            Liens
permitted to be incurred under the provisions of Section 4.12
hereof that limit the right of the debtor to dispose of the assets subject to
such Liens;

 

(11)                            provisions
limiting the disposition or distribution of assets or property in joint venture
agreements, asset sale agreements, sale-leaseback agreements, stock sale
agreements and other similar agreements entered into in the ordinary course of
business;

 

(12)                            encumbrances
on property that exist at the time the property was acquired by the Company or
a Restricted Subsidiary;

 

(13)                            restrictions
on cash or other deposits or net worth imposed by customers under contracts
entered into in the ordinary course of business; and

 

(14)                            any
encumbrances or restrictions of the type referred to in clauses (1), (2) or
(3) in the immediately preceding paragraph above imposed by any
amendments, modifications, restatements, renewals, supplements, refundings,
replacements or refinancings of the contracts, instruments or obligations
referred to in clauses (1) through (13) above, provided that such
amendments, modifications, restatements, renewals, supplements, refundings,
replacements or refinancings are, in the good faith judgment of the Board of
Directors of the Company, not materially more restrictive, taken as a whole,
with respect to such encumbrance and other restrictions than those prior to
such amendment, modification, restatement, renewal, supplement, refunding,
replacement or refinancing.

 

Section 4.09                                Incurrence
of Indebtedness and Issuance of Preferred Stock.  (a)  The Company will not, and will not
permit any of its Restricted Subsidiaries to, directly or indirectly, create,
incur, issue, assume, guarantee or otherwise become directly or indirectly
liable, contingently or otherwise, with respect to (collectively, “incur”)
any Indebtedness (including Acquired Debt), and the Company will not issue any
Disqualified Stock and will not permit any of its Restricted Subsidiaries to
issue any shares of preferred stock; provided, however, that the
Company may incur Indebtedness (including Acquired Debt) or issue Disqualified
Stock, and the Guarantors may incur Indebtedness or issue preferred stock, if
the Fixed Charge Coverage Ratio for the Company’s most recently ended four full
fiscal quarters for which internal financial statements are available
immediately preceding the date on which such additional Indebtedness is
incurred or such Disqualified Stock or preferred stock is issued would have
been at least 2.0 to 1, determined on a pro
forma basis (including a pro forma
application of the net proceeds therefrom), as if such additional Indebtedness
had been incurred or the Disqualified Stock or preferred stock had been issued,
as the case may be, at the beginning of such four-quarter period.

 

(b)                                 The
provisions of Section 4.09(a) will not prohibit the incurrence
of any of the following items of Indebtedness (collectively, “Permitted Debt”):

 

(1)                                  the
incurrence by the Company and any Guarantor of additional Indebtedness and
letters of credit under Credit Facilities in an aggregate principal amount at
any one time outstanding under this clause (1) (with letters of
credit being deemed to have a principal amount equal to the maximum potential
liability of the Company and its Restricted Subsidiaries thereunder) not to
exceed the greater of (x) $675.0 million and (y) 

 

48

 

the Maximum Credit Facilities Cap as of the date of
such incurrence, in the case of clauses (x) and (y)(A) less
the aggregate amount of all Net Proceeds of Asset Sales applied by the Company
or any of its Restricted Subsidiaries since the date of this Indenture to repay
any Indebtedness under a term loan under a Credit Facility or to repay any
revolving credit Indebtedness under a Credit Facility and effect a
corresponding commitment reduction thereunder pursuant to Section 4.10
hereof provided that the guarantee by Laurel Technologies Partnership
(d/b/a DRS Laurel Technologies), MSSC Company LP and Canopy Technologies LLC of
additional Indebtedness and letters of credit under Credit Facilities shall be
permitted by this clause (1) in the amount set forth in this Section 4.09(b)(1);

 

(2)                                  the
incurrence by the Company and its Restricted Subsidiaries of the Existing
Indebtedness;

 

(3)                                  the
incurrence by the Company and the Guarantors of Indebtedness represented by the
Senior Notes, the Notes and the related Subsidiary Guarantees to be issued on
the date of this Indenture;

 

(4)                                  the
incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness
represented by Capital Lease Obligations, mortgage financings or purchase money
obligations, synthetic leases or the Attributable Debt with respect to sale and
leaseback transactions, in each case, incurred for the purpose of financing all
or any part of the purchase price or cost of design, construction, installation
or improvement of property, plant or equipment used in the business of the
Company or any of its Restricted Subsidiaries, in an aggregate principal
amount, including all Permitted Refinancing Indebtedness incurred to refund,
refinance, replace, defease or discharge any Indebtedness incurred pursuant to
this clause (4), not to exceed the greater of $75.0 million and 5.0% of
Consolidated Tangible Assets at any time outstanding;

 

(5)                                  the
incurrence by the Company or any of its Restricted Subsidiaries of Permitted
Refinancing Indebtedness in exchange for, or the net proceeds of which are used
to refund, refinance, replace, defease or discharge Indebtedness (other than
intercompany Indebtedness) that was permitted by this Indenture to be incurred
under Section 4.09(a) or clauses (2), (3), (4),
(5), (12) or (13) of this Section 4.09(b);

 

(6)                                  the
incurrence by the Company or any of its Restricted Subsidiaries of intercompany
Indebtedness between or among the Company and any of its Restricted
Subsidiaries; provided, however, that:

 

(A)                              if
the Company or any Guarantor is the obligor on such Indebtedness and the payee
is not the Company or a Guarantor, such Indebtedness must be expressly
subordinated to the prior payment in full in cash of all Obligations then due
with respect to the Notes, in the case of the Company, or the Subsidiary
Guarantee, in the case of a Guarantor, and

 

(B)                                (i) any
subsequent issuance or transfer of Equity Interests that results in any such
Indebtedness being held by a Person other than the Company 

 

49

 

or a Restricted Subsidiary of the Company and (ii) any
sale or other transfer of any such Indebtedness to a Person that is not either
the Company or a Restricted Subsidiary of the Company,

 

will be deemed, in each case, to constitute an incurrence of such
Indebtedness by the Company or such Restricted Subsidiary, as the case may be,
that was not permitted by this clause (6);

 

(7)                                  the
issuance by any of the Company’s Restricted Subsidiaries to the Company or to
any of its Restricted Subsidiaries of shares of preferred stock; provided,
however, that:

 

(a)                                  any
subsequent issuance or transfer of Equity Interests that results in any such
preferred stock being held by a Person other than the Company or a Restricted
Subsidiary of the Company; and

 

(b)                                 any
sale or other transfer of any such preferred stock to a Person that is not
either the Company or a Restricted Subsidiary of the Company,

 

will be deemed, in each case, to constitute an issuance of such
preferred stock by such Restricted Subsidiary that was not permitted by this clause
(7);

 

(8)                                  the
incurrence by the Company or any of its Restricted Subsidiaries of Hedging
Obligations in the ordinary course of business;

 

(9)                                  the
guarantee by the Company or any of the Guarantors of Indebtedness of the
Company or a Restricted Subsidiary of the Company that was permitted to be
incurred by another provision of this covenant; provided that if the
Indebtedness being guaranteed is subordinated to or pari  passu with the Notes, then the guarantee shall be subordinated or
pari  passu to the same extent as the Indebtedness guaranteed;

 

(10)                            the
incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness
in respect of workers’ compensation claims, self-insurance obligations, bankers’
acceptances, performance and surety bonds, completion guarantees or similar
arrangements in the ordinary course of business;

 

(11)                            the
incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness
arising from the honoring by a bank or other financial institution of a check,
draft or similar instrument inadvertently drawn against insufficient funds, so
long as such Indebtedness is covered within five Business Days;

 

(12)                            the
incurrence by Foreign Subsidiaries of Indebtedness in an aggregate principal
amount at any time outstanding pursuant to this clause (12), including
all Permitted Refinancing Indebtedness incurred to refund, refinance, defease,
renew, extend or replace Indebtedness incurred pursuant to this clause (12),
not to exceed the greater of (x) $40.0 million and (y) the Foreign Borrowing
Base as of the date of such incurrence, (in the case of (x) and (y), or the
equivalent thereof, measured at the time of each incurrence, in applicable
foreign currency);

 

50

 

 

(13)                            Indebtedness
of a Subsidiary incurred and outstanding on or prior to the date on which such
Subsidiary was acquired by the Company (other than Indebtedness incurred in
contemplation of, or in connection with, the transaction or series of related
transactions pursuant to which such Subsidiary became a Subsidiary of or was
otherwise acquired by the Company); provided, however, that for
any such Indebtedness outstanding at any time under this clause (13), in
excess of $35.0 million, on the date that such Subsidiary is acquired by the
Company, the Company would have been able to incur $1.00 of additional
Indebtedness pursuant Section 4.09(a) hereof after giving
effect to the incurrence of such Indebtedness pursuant to this clause (13);

 

(14)                            Indebtedness
arising from agreements of the Company or a Restricted Subsidiary providing for
indemnification, adjustment of purchase price, earn-out or similar obligations,
in each case, incurred or assumed in connection with the acquisition or
disposition of any businesses or assets of the Company or any Restricted
Subsidiary otherwise permitted in accordance with this Indenture;

 

(15)                            Indebtedness
consisting of existing letters of credit issued prior to the date hereof issued
for the account of (i) Integrated Defense Technologies, Inc. and/or
its Subsidiaries, in an aggregate face amount not to exceed $5.0 million and (ii) ESSI
and/or its Subsidiaries, in an aggregate face amount not to exceed $5.0
million; and

 

(16)                            the
incurrence by the Company or any Restricted Subsidiary of additional
Indebtedness in an aggregate principal amount (or accreted value, as
applicable) at any time outstanding, including all Permitted Refinancing
Indebtedness incurred to refund, refinance, replace, defense or discharge any
Indebtedness incurred pursuant to this clause (16), not to exceed
$50.0 million.

 

For purposes
of determining compliance with this Section 4.09, in the event that
an item of proposed Indebtedness meets the criteria of more than one of the
categories of Permitted Debt described in clauses (1) through (16)
above or is entitled to be incurred pursuant to Section 4.09(a),
the Company will be permitted to classify such item of Indebtedness on
the date of its incurrence, and will only be required to include the amount and
type of such Indebtedness in one of the above clauses, although the Company may
divide and classify an item of Indebtedness in more than one of the types of
Indebtedness, or later reclassify all or a portion of such item of
Indebtedness, in any manner that complies with this Section 4.09.  Indebtedness under the Credit Agreement
outstanding on the date on which Notes are first issued and authenticated under
this Indenture will initially be deemed to have been incurred on such date in
reliance on the exception provided by clause (1) of the definition
of Permitted Debt.  The accrual of
interest, the accretion or amortization of original issue discount, the payment
of interest on any Indebtedness in the form of additional Indebtedness with the
same terms, and the payment of dividends on Disqualified Stock in the form of
additional shares of the same class of Disqualified Stock will not be deemed to
be an incurrence of Indebtedness or an issuance of Disqualified Stock for
purposes of this Section 4.09; provided, in each such case,
that the amount thereof is included in Fixed Charges of the Company as
accrued.  Notwithstanding any other
provision of this Section 4.09, the maximum amount of Indebtedness
that the Company or any Restricted Subsidiary may incur pursuant to this Section 4.09
shall not be deemed to be exceeded solely as a result of fluctuations in
exchange rates or currency values.

 

51

 

The amount of
any Indebtedness outstanding as of any date will be:

 

(1)                                  the
accreted value of the Indebtedness, in the case of any Indebtedness issued with
original issue discount;

 

(2)                                  the
principal amount of the Indebtedness, in the case of any other Indebtedness;
and

 

(3)                                  in
respect of Indebtedness of another Person secured by a Lien on the assets of
the specified Person, the lesser of:

 

(A)                              the
Fair Market Value of such an asset at the date of determination, and

 

(B)                                the
amount of the Indebtedness of the other Person.

 

Section 4.10                                Asset
Sales.  The Company will not, and
will not permit any of its Restricted Subsidiaries to, consummate an Asset Sale
unless:

 

(1)                                  the
Company (or the Restricted Subsidiary, as the case may be) receives
consideration at the time of the Asset Sale at least equal to the Fair Market
Value of the assets or Equity Interests issued or sold or otherwise disposed
of; and

 

(2)                                  at
least 75% of the consideration received in the Asset Sale by the Company or
such Restricted Subsidiary is in the form of cash or Cash Equivalents, provided
that if the aggregate consideration received in the Asset Sale is less than
$15.0 million, this condition will be satisfied if at least 70% of the
consideration received in the Asset Sale by the Company or such Restricted
Subsidiary is in the form of cash or Cash Equivalents.  For purposes of this provision, each of the
following shall be deemed to be cash:

 

(A)                              any
liabilities of the Company or any Restricted Subsidiary (other than contingent
liabilities and liabilities that are by their terms subordinated to the Notes
or any Subsidiary Guarantee) that are assumed by the transferee of any such
assets and as a result of which the Company or such Restricted Subsidiary is
released from further liability;

 

(B)                                any
securities, notes or other obligations received by the Company or any such
Restricted Subsidiary from such transferee that are, within 120 days, converted
by the Company or such Restricted Subsidiary into cash or Cash Equivalents, to
the extent of the cash or Cash Equivalents received in that conversion;

 

(C)                                any
assets of, or any Capital Stock of, another Permitted Business, if, after
giving effect to any such acquisition of Capital Stock, the Permitted Business
is or becomes a Restricted Subsidiary of the Company;

 

52

 

(D)                               any
assets that are not classified as current assets under GAAP and that are used
or useful in a Permitted Business; and

 

(E)                                 any
Designated Non-cash Consideration received by the Company or such Restricted
Subsidiary in such Asset Sale having an aggregate fair market value, taken
together with all other Designated Non-cash Consideration received pursuant to
this clause (e) that is at that time outstanding, not to exceed $25.0
million at the time of the receipt of such Designated Non-cash Consideration,
with the fair market value of each item of Designated Non-cash Consideration
being measured at the time received and without giving effect to subsequent
changes in value.

 

Within 365
days after the receipt of any Net Proceeds from an Asset Sale, the Company (or
the applicable Restricted Subsidiary, as the case may be) may apply an amount
equal to those Net Proceeds at its option:

 

(1)                                  to
repay Senior Debt and, if the Senior Debt repaid is revolving credit
Indebtedness, to correspondingly reduce commitments with respect thereto;

 

(2)                                  to
acquire all or substantially all of the assets of, or any Capital Stock of,
another Permitted Business, if, after giving effect to any such acquisition of
Capital Stock, the Permitted Business is or becomes a Restricted Subsidiary of
the Company;

 

(3)                                  to
make a capital expenditure; or

 

(4)                                  to
acquire other assets that are not classified as current assets under GAAP and
that are used or useful in a Permitted Business,

 

or enter into
a binding commitment regarding clauses (2), (3) or (4) above,
provided that such binding commitment shall be treated as a permitted
application of Net Proceeds from the date of such commitment until and only
until the earlier of (x) the date on which such acquisition or expenditure is
consummated and (y) the 180th day following the expiration of the
aforementioned 365 day period.  If such
acquisition or expenditure is not consummated on or before such 180th day and
the Company or such Restricted Subsidiary shall not have applied an amount
equal to such Net Proceeds pursuant to clause (1)-(4) of this
paragraph on or before such 180th day, such commitment shall be deemed not to
have been a permitted application of Net Proceeds.

 

Pending the
final application of any such Net Proceeds, the Company may temporarily reduce
revolving credit borrowings or otherwise invest such Net Proceeds in any manner
that is not prohibited by this Indenture.

 

Any Net
Proceeds from Asset Sales that are not applied or invested as provided in the
preceding paragraph will constitute “Excess Proceeds.”  When the aggregate amount of Excess Proceeds
exceeds $25.0 million, the Company will make an Asset Sale Offer to all Holders
of Notes and all holders of other Indebtedness that is pari  passu with the Notes containing provisions similar to those set
forth in this Indenture with respect to offers to purchase or redeem with the
proceeds of sales of assets in accordance with Section 3.09 hereof
to purchase the

 

53

 

maximum principal amount of Notes and such other pari  passu
Indebtedness that may be purchased out of the Excess Proceeds.  The offer price in any Asset Sale Offer will
be equal to 100% of principal amount plus accrued and unpaid interest, if any,
to, but excluding, the date of purchase, and will be payable in cash (subject
to the right of Holders to receive interest due on the relevant interest
payment date).  With respect to any Asset
Sale Offer, the Excess Proceeds shall be applied (i) first to purchase or
redeem the maximum principal amount of Senior Notes and such other Indebtedness
pari  passu with the Senior Notes (on a pro rata basis, if
applicable) and (ii) second, if any Excess Proceeds remain following such
purchase or redemption, to purchase or redeem the maximum principal amount of
Notes and such other Indebtedness pari  passu with the Notes.  If any Excess Proceeds remain after
consummation of an Asset Sale Offer, the Company may use such Excess Proceeds
for any purpose not otherwise prohibited by this Indenture.  If the aggregate principal amount of Senior
Notes and such other Indebtedness pari  passu with the Senior
Notes tendered into such Asset Sale Offer exceeds the amount of Excess
Proceeds, the Trustee will select the Senior Notes and such other Indebtedness pari
passu with the Senior Notes to be purchased on a pro rata basis.  If the
aggregate principal amount of Notes and such other Indebtedness pari  passu
with the Notes tendered into such Asset Sale Offer exceeds the amount of Excess
Proceeds following the purchase in full of all of the Senior Notes and such
other Indebtedness pari  passu with the Senior Notes, the Trustee
will select the Notes and such other Indebtedness pari  passu with
the Notes to be purchased on a pro rata
basis.  Upon completion of each Asset
Sale Offer, the amount of Excess Proceeds shall be reset at zero.

 

The Company
will comply with the requirements of Rule 14e-1 under the Exchange Act and
any other securities laws and regulations thereunder to the extent such laws
and regulations are applicable in connection with each repurchase of Notes
pursuant to an Asset Sale Offer.  To the
extent that the provisions of any securities laws or regulations conflict with
the provisions of Sections 3.09 or 4.10 of this Indenture, the
Company will comply with the applicable securities laws and regulations and
will not be deemed to have breached its obligations under Section 3.09
or this Section 4.10 by virtue of such compliance.

 

Section 4.11                                Transactions
with Affiliates.  (a)  The
Company will not, and will not permit any of its Restricted Subsidiaries to,
make any payment to, or sell, lease, transfer or otherwise dispose of any of
its properties or assets to, or purchase any property or assets from, or enter
into or make or amend any transaction, contract, agreement, understanding,
loan, advance or guarantee with, or for the benefit of, any Affiliate of the
Company (each an “Affiliate Transaction”), unless:

 

(1)                                  such
Affiliate Transaction is on terms that are not materially less favorable to the
Company or the relevant Restricted Subsidiary, taken as a whole, than those
that would have been obtained in a comparable transaction by the Company or
such Restricted Subsidiary with an unrelated Person; and

 

(2)                                  the
Company delivers to the Trustee:

 

(A)                              with
respect to any Affiliate Transaction or series of related Affiliate
Transactions involving aggregate consideration in excess of $15.0 million, a
resolution of the Board of Directors set forth in an Officers’ Certificate
certifying that such Affiliate Transaction complies with this Section 4.11(a) and

 

54

 

that such Affiliate Transaction has been approved by a
majority of the disinterested members of the Board of Directors; and

 

(B)                                with
respect to any Affiliate Transaction or series of related Affiliate
Transactions involving aggregate consideration in excess of $25.0 million, an
opinion as to the fairness to the Company or such Subsidiary of such Affiliate
Transaction from a financial point of view issued by an accounting, appraisal
or investment banking firm of national standing.

 

(b)                                 The
following items will not be deemed to be Affiliate Transactions and, therefore,
will not be subject to the provisions of Section 4.11(a):

 

(1)                                  any
employment agreement, employee benefit plan, officer and director
indemnification agreement, consulting agreement or any similar arrangement
entered into by the Company or any of its Restricted Subsidiaries in the
ordinary course of business;

 

(2)                                  transactions
(including a merger) between or among the Company and/or its Restricted
Subsidiaries;

 

(3)                                  transactions
with a Person (other than an Unrestricted Subsidiary of the Company) that is an
Affiliate of the Company solely because the Company owns, directly or through a
Restricted Subsidiary, an Equity Interest in such Person;

 

(4)                                  payment
of reasonable directors’ fees;

 

(5)                                  any
issuance of Equity Interests (other than Disqualified Stock) of the Company to
Affiliates of the Company and the granting or performance of registration
rights;

 

(6)                                  Restricted
Payments that do not violate the provisions of Section 4.07 hereof
and Permitted Investments;

 

(7)                                  if
such Affiliate Transaction is with any Person solely in its capacity as a
holder of debt or capital stock of the Company or any of the Company’s
Restricted Subsidiaries where such Person is treated no more favorably than any
other holder of debt or capital stock of the Company or any of the Company’s
Restricted Subsidiaries;

 

(8)                                  the
existence of or the performance by the Company or any of the Company’s Restricted
Subsidiaries with any of its obligations under the terms of any stockholders or
similar agreement entered into in connection with the ESSI Merger;

 

(9)                                  transactions
effected pursuant to agreements in effect on the date of this Indenture and any
amendment, modification, or replacement to such agreement (so long as the
amendment, modification or replacement is not materially more disadvantageous
to the Holders of the Notes, taken as a whole, as determined by the Board of
Directors of the Company);

 

55

 

(10)                            payments
made in fulfillment of the Company’s obligations arising in connection with the
ESSI Merger;

 

(11)                            reasonable
and documented attorney’s fees and expenses paid in consideration for services
rendered; and

 

(12)                            a
transaction or series of transactions involving payments not in excess of $5.0
million made pursuant to contracts, agreements or other arrangements in
existence on the date hereof and consistent with past practice.

 

Section 4.12                                Liens.  The Company will not, and will not permit any
of its Restricted Subsidiaries to, directly or indirectly, create, incur,
assume or suffer to exist any Lien of any kind on any asset now owned or
hereafter acquired, except Permitted Liens, unless:

 

(1)                                  in
the case of Liens securing Indebtedness subordinated to the Notes or any
Guarantee, the Notes and any Guarantees are secured by a Lien on such asset
that is senior in priority to such Liens; or

 

(2)                                  in
all other cases, the Notes or the Guarantees are equally and ratably secured.

 

Section 4.13                                Business
Activities.  The Company will not,
and will not permit any of its Restricted Subsidiaries to, engage in any
business other than Permitted Businesses, except to such extent as would not be
material to the Company and its Restricted Subsidiaries taken as a whole.

 

Section 4.14                                Corporate
Existence.  Subject to Article 5
hereof, the Company shall do or cause to be done all things necessary to
preserve and keep in full force and effect:

 

(1)                                  its
corporate existence, and the corporate, partnership or other existence of each
of its Subsidiaries, in accordance with the respective organizational documents
(as the same may be amended from time to time) of the Company or any such
Subsidiary; and

 

(2)                                  the
rights (charter and statutory), licenses and franchises of the Company and its
Subsidiaries; provided, however, that the Company shall not be
required to preserve any such right, license or franchise, or the corporate,
partnership or other existence of any of its Subsidiaries, if at least two
Officers of the Company, one of which is the Chief Executive Officer or the
Chief Financial Officer of the Company, shall determine that the preservation
thereof is no longer desirable in the conduct of the business of the Company
and its Subsidiaries, taken as a whole, and that the loss thereof is not
adverse in any material respect to the Holders of the Notes.

 

Section 4.15                                Offer
to Repurchase Upon Change of Control. 
(a)  If a Change of Control occurs, the Company will make an offer
(a “Change of Control Offer”) to each Holder to repurchase all or any
part (equal to $1,000 or an integral multiple of $1,000) of each Holder’s Notes
at a purchase price equal to 101% of the aggregate principal amount thereof
plus accrued and unpaid interest, if any, on the Notes repurchased, if any, to,
but excluding, the date of

 

56

 

purchase, subject
to the rights of Noteholders on the relevant record date to receive interest
due on the relevant interest payment date (the “Change of Control Payment”).  Within 30 days following any Change of
Control, the Company will mail a notice to each Holder describing the
transaction or transactions that constitute the Change of Control and stating:

 

(1)                                  that
the Change of Control Offer is being made pursuant to this Section 4.15
and that all Notes tendered will be accepted for payment;

 

(2)                                  the
purchase price and the purchase date, which shall be no earlier than 30 days
and no later than 60 days from the date such notice is mailed (the “Change
of Control Payment Date”);

 

(3)                                  that
any Note not tendered will continue to accrue interest;

 

(4)                                  that,
unless the Company defaults in the payment of the Change of Control Payment,
all Notes accepted for payment pursuant to the Change of Control Offer will
cease to accrue interest after the Change of Control Payment Date;.

 

(5)                                  that
Holders electing to have any Notes purchased pursuant to a Change of Control
Offer will be required to surrender the Notes, with the form entitled “Option
of Holder to Elect Purchase” attached to the Notes completed, or transfer by
book-entry transfer, to the Paying Agent at the address specified in the notice
prior to the close of business on the third Business Day preceding the Change
of Control Payment Date;

 

(6)                                  that
Holders will be entitled to withdraw their election if the Paying Agent
receives, not later than the close of business on the second Business Day
preceding the Change of Control Payment Date, a telegram, telex, facsimile
transmission or letter setting forth the name of the Holder, the principal
amount of Notes delivered for purchase, and a statement that such Holder is
withdrawing his election to have the Notes purchased; and

 

(7)                                  that
Holders whose Notes are being purchased only in part will be issued new Notes
equal in principal amount to the unpurchased portion of the Notes surrendered,
which unpurchased portion must be equal to $1,000 in principal amount or an
integral multiple thereof.

 

The Company
will comply with the requirements of Rule 14e-1 under the Exchange Act and
any other securities laws and regulations thereunder to the extent those laws
and regulations are applicable in connection with the repurchase of the Notes
as a result of a Change in Control.  To
the extent that the provisions of any securities laws or regulations conflict
with the provisions of Sections 3.09 or 4.15 of this Indenture,
the Company will comply with the applicable securities laws and regulations and
will not be deemed to have breached its obligations under Section 3.09
or this Section 4.15 by virtue of such compliance.

 

(b)                                 On
the Change of Control Payment Date, the Company will, to the extent lawful:

 

(1)                                  accept
for payment all Notes or portions of Notes properly tendered pursuant to the
Change of Control Offer;

 

57

 

(2)                                  deposit
with the Paying Agent an amount equal to the Change of Control Payment in
respect of all Notes or portions of Notes properly tendered; and

 

(3)                                  deliver
or cause to be delivered to the Trustee the Notes so accepted together with an
Officers’ Certificate stating the aggregate principal amount of Notes or
portions of Notes being purchased by the Company.

 

The Paying
Agent will promptly mail to each Holder of Notes properly tendered the Change of
Control Payment for such Notes, and the Trustee will promptly authenticate and
mail (or cause to be transferred by book entry) to each Holder a new Note equal
in principal amount to any unpurchased portion of the Notes surrendered, if
any; provided that each new note will be in a principal amount of $1,000
or an integral multiple of $1,000.

 

Prior to
complying with any of the provisions of this Section 4.15, but in
any event within 90 days following a Change of Control, the Company will either
repay all outstanding Senior Debt or obtain the requisite consents, if any,
under all agreements governing outstanding Senior Debt to permit the repurchase
of Notes required by this Section 4.15.  The Company will publicly announce the
results of the Change of Control Offer on or as soon as practicable after the
Change of Control Payment Date.

 

(c)                                  Notwithstanding
anything to the contrary in this Section 4.15, the Company will not
be required to make a Change of Control Offer upon a Change of Control if (1) a
third party makes the Change of Control Offer in the manner, at the times and
otherwise in compliance with the requirements set forth in this Section 4.15
hereof and purchases all Notes properly tendered and not withdrawn under the
Change of Control Offer or (2) notice of redemption has been given
pursuant to Section 3.07 hereof, unless and until there is a
default in payment of the applicable redemption price.

 

Section 4.16                                No
Layering of Debt.  The Company will
not incur, create, issue, assume, guarantee or otherwise become liable for any
Indebtedness that is contractually subordinate or junior in right of payment to
any Senior Debt of the Company and senior in right of payment to the
Notes.  No Guarantor will incur, create,
issue, assume, guarantee or otherwise become liable for any Indebtedness that
is contractually subordinate or junior in right of payment to the Senior Debt
of such Guarantor and senior in right of payment to such Guarantor’s
Guarantee.  No such Indebtedness will be
considered to be senior by virtue of being secured on a first or junior
priority basis.

 

Section 4.17                                Limitation
on Sale and Leaseback Transactions. 
The Company will not, and will not permit any of its Restricted
Subsidiaries to, enter into any sale and leaseback transaction; provided
that the Company or any Restricted Subsidiary may enter into a sale and
leaseback transaction if:

 

(1)                                  the
Company or that Restricted Subsidiary, as applicable, could have (a) incurred
Indebtedness in an amount equal to the Attributable Debt relating to such sale
and leaseback transaction under Section 4.09  hereof and (b) incurred a Lien to
secure such Indebtedness pursuant to the provisions of Section 4.12
hereof; and

 

58

 

(2)                                  the
sale and leaseback transaction is made in compliance with Section 4.10
hereof.

 

Section 4.18                                Payments
for Consent.  The Company will not,
and will not permit any of its Restricted Subsidiaries to, directly or
indirectly, pay or cause to be paid any consideration to or for the benefit of
any Holder of Notes for or as an inducement to any consent, waiver or amendment
of any of the terms or provisions of this Indenture or the Notes unless such
consideration is offered to be paid and is paid to all Holders of the Notes
that consent, waive or agree to amend in the time frame set forth in the
solicitation documents relating to such consent, waiver or agreement.

 

Section 4.19                                Additional
Subsidiary Guarantees.  If the
Company or any of its Restricted Subsidiaries acquires or creates another
Domestic Subsidiary that is a Restricted Subsidiary after the date of this
Indenture, then that newly acquired or created Domestic Subsidiary will become
a Guarantor and execute a supplemental indenture (substantially in the form of Exhibit C
attached hereto) and deliver an Opinion of Counsel reasonably satisfactory to
the Trustee within 45 Business Days of the date on which it was acquired or
created, provided that any Domestic Subsidiary that constitutes an
Immaterial Subsidiary need not become a Guarantor until such time as it ceases
to be an Immaterial Subsidiary, and provided  further that any
Domestic Subsidiary that is not directly or indirectly wholly-owned by the
Company or a Guarantor need not become a Guarantor unless (a) such
Domestic Subsidiary guarantees any other Indebtedness of the Company or a
Restricted Subsidiary or (b) such Domestic Subsidiary, directly or
indirectly, creates, incurs, assumes, guarantees or otherwise becomes directly
or indirectly liable, contingently or otherwise, with respect to any
Indebtedness, other than Indebtedness owed to the Company or a Restricted
Subsidiary.  The form of such Subsidiary
Guarantee is attached as Exhibit B hereto.

 

Section 4.20                                Designation
of Restricted and Unrestricted Subsidiaries.  The Board of Directors may designate any
Restricted Subsidiary to be an Unrestricted Subsidiary if that designation
would not cause a Default.  If a
Restricted Subsidiary is designated as an Unrestricted Subsidiary, the
aggregate Fair Market Value of all outstanding Investments owned by the Company
and its Restricted Subsidiaries in the Subsidiary designated as Unrestricted
will be deemed to be an Investment made as of the time of the designation and
will reduce the amount available for Restricted Payments under Section 4.07
hereof or under one or more clauses of the definition of Permitted Investments,
as determined by the Company.  That
designation will only be permitted if the Investment would be permitted at that
time and if the Restricted Subsidiary otherwise meets the definition of an
Unrestricted Subsidiary.  The Board of
Directors may redesignate any Unrestricted Subsidiary to be a Restricted
Subsidiary if that redesignation would not cause a Default.

 

Section 4.21                                Changes
in Covenants when Notes Rated Investment Grade.  If on any date following the date of this
Indenture:

 

(1)                                  the
Notes are rated Baa3 or better by Moody’s and BBB- or better by S&P (or, if
either such entity ceases to rate the Notes for reasons outside of the control
of the Company, the equivalent investment grade credit rating from any other “nationally

 

59

 

recognized statistical rating organization” within the
meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act selected
by the Company as a replacement agency); and

 

(2)                                  no
Default or Event of Default shall have occurred and be continuing with respect
to the Notes,

 

then,
beginning on that day and subject to the provisions of the following paragraph,
following sections of this Indenture will be suspended:

 

(A)                              Section 4.10;

 

(B)                                Section 4.07;

 

(C)                                Section 4.09;

 

(D)                               Section 4.08;

 

(E)                                 Section 4.17;

 

(F)                                 Section 4.20;

 

(G)                                Section 4.11;
and

 

(H)                               Section 5.01(4).

 

During
any period that the foregoing sections have been suspended, the Board of Directors
of the Company may not designate any of its Subsidiaries as Unrestricted
Subsidiaries pursuant to Section 4.20 or the second paragraph of
the definition of ‘Unrestricted Subsidiary.”

 

Notwithstanding
the foregoing, if the rating assigned by either such rating agency should
subsequently decline to below Baa3 or BBB-, respectively, the foregoing
covenants will be reinstituted as of and from the date of such rating decline.
Calculations under the reinstated Section 4.07 will be made as if Section 4.07
had been in effect since the date of this Indenture except that no default will
be deemed to have occurred solely by reason of a Restricted Payment made while
that section was suspended.

 

ARTICLE 5

SUCCESSORS

 

For purposes
of this series of Securities (as defined in the Base Indenture), this Article 5
hereby amends and restates in its entirety Article Eight of the Base
Indenture.

 

Section 5.01                                Merger,
Consolidation, or Sale of Assets. 
The Company may not, directly or indirectly:  (1) consolidate or merge with or into
another Person (whether or not the Company is the surviving corporation); or (2) sell,
assign, transfer, convey or otherwise dispose of all or substantially all of
the properties or assets of the Company and its Restricted Subsidiaries taken
as a whole, in one or more related transactions, to another Person; unless:

 

60

 

(1)                                  Either:

 

(A)                              the
Company is the surviving corporation; or

 

(B)                                the
Person formed by or surviving any such consolidation or merger (if other than
the Company) or to which such sale, assignment, transfer, conveyance or other
disposition has been made is a corporation organized or existing under the laws
of the United States, any state of the United States or the District of Columbia;

 

(2)                                  the
Person formed by or surviving any such consolidation or merger (if other than
the Company) or the Person to which such sale, assignment, transfer, conveyance
or other disposition has been made assumes all the obligations of the Company
under the Notes and this Indenture pursuant to agreements reasonably
satisfactory to the Trustee;

 

(3)                                  immediately
after such transaction, no Default or Event of Default exists; and

 

(4)                                  either

 

(A)                              the
Company, or the Person formed by or surviving any such consolidation or merger
(if other than the Company), or to which such sale, assignment, transfer,
conveyance or other disposition has been made will, on the date of such
transaction after giving pro forma effect
thereto and any related financing transactions as if the same had occurred at
the beginning of the applicable four-quarter period, be permitted to incur at
least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage
Ratio test set forth in Section 4.09(a) hereof, or

 

(B)                                the
Fixed Charge Coverage Ratio for the Company or the Person formed by or
surviving any such consolidation or merger (if other than the Company), or to
which such sale, assignment, transfer, conveyance or other disposition has been
made would be greater than such Fixed charge Coverage Ratio for the Company and
its Restricted Subsidiaries immediately prior to such transaction.

 

In addition,
the Company will not, directly or indirectly, lease all or substantially all of
its properties or assets, in one or more related transactions, to any other
Person.  This Section 5.01
will not apply to:

 

(1)                                  a
merger of the Company with an Affiliate solely for the purpose of
reincorporating the Company in another jurisdiction;

 

(2)                                  any
merger or consolidation, or any sale, transfer, assignment, conveyance, lease
or other disposition of assets between or among the Company and its Restricted
Subsidiaries that are Guarantors; or

 

61

 

(3)                                  the
ESSI Merger.

 

Section 5.02                                Successor
Corporation Substituted.  Upon any
consolidation or merger, or any sale, assignment, transfer, lease, conveyance
or other disposition of all or substantially all of the assets of the Company
in a transaction that is subject to, and that complies with the provisions of, Section 5.01
hereof, the successor corporation formed by such consolidation or into or with
which the Company is merged or to which such sale, assignment, transfer, lease,
conveyance or other disposition is made shall succeed to, and be substituted
for (so that from and after the date of such consolidation, merger, sale,
lease, conveyance or other disposition, the provisions of this Indenture
referring to the “Company” shall refer instead to the successor corporation and
not to the Company), and may exercise every right and power of the Company
under this Indenture with the same effect as if such successor Person had been
named as the Company herein; provided, however, that the
predecessor Company shall not be relieved from the obligation to pay the
principal of and interest on the Notes except in the case of a sale of all of
the Company’s assets in a transaction that is subject to, and that complies
with the provisions of Section 5.01 hereof.

 

ARTICLE 6

DEFAULTS AND REMEDIES

 

For purposes
of this series of Securities (as defined in the Base Indenture), this Article 6
hereby amends and restates in its entirety Article Five of the Base
Indenture.

 

Section 6.01                                Events
of Default.  Each of the following is
an “Event of Default”:

 

(1)                                  default
for 30 days in the payment when due of interest on, the Notes whether or not
prohibited by the subordination provisions of this Indenture;

 

(2)                                  default
in payment when due of the principal of, or premium, if any, on the Notes,
whether or not prohibited by the subordination provisions of this Indenture;

 

(3)                                  failure
by the Company or any of its Restricted Subsidiaries to comply with the
provisions Sections 4.15 or 5.01 hereof;

 

(4)                                  failure
by the Company or any of its Restricted Subsidiaries to comply with Sections
4.07 or 4.09 hereof for 30 days after notice to comply with such
provisions;

 

(5)                                  failure
by the Company or any of its Restricted Subsidiaries for 60 days after notice
to comply with any of the other agreements in this Indenture;

 

(6)                                  default
under any mortgage, indenture or instrument under which there may be issued or
by which there may be secured or evidenced any Indebtedness for money borrowed
by the Company or any of its Restricted Subsidiaries (or the payment of which
is guaranteed by the Company or any of its Restricted Subsidiaries) whether
such Indebtedness or guarantee now exists, or is created after the date of this
Indenture, if that default:

 

62

 

(A)                              is
caused by a failure to pay principal of, or interest or premium, if any, on
such Indebtedness prior to the expiration of the grace period provided in such
Indebtedness on the date of such default (a “Payment Default”); or

 

(B)                                results
in the acceleration of such Indebtedness prior to its express maturity,

 

and, in each
case, the principal amount of any such Indebtedness, together with the
principal amount of any other such Indebtedness under which there has been a
Payment Default or the maturity of which has been so accelerated, aggregates
$35.0 million or more;

 

(7)                                  failure
by the Company or any of its Restricted Subsidiaries to pay final judgments
aggregating in excess of $25.0 million (to the extent not covered by
independent third-party insurance as to which the insurer does not dispute
coverage), which judgments are not paid, waived, satisfied, discharged or
stayed for a period of 60 days; or

 

(8)                                  except
as permitted by this Indenture, any Subsidiary Guarantee of a Guarantor that is
a Significant Subsidiary or a group of Guarantors that, taken as a whole, would
constitute a Significant Subsidiary, shall be held in any judicial proceeding
to be unenforceable or invalid or shall cease for any reason to be in full
force and effect or any Guarantor that is a Significant Subsidiary, or any
Person acting on behalf of any Guarantor that is a Significant Subsidiary,
shall deny or disaffirm its obligations under its Subsidiary Guarantee;

 

(9)                                  the
Company or any of its Restricted Subsidiaries that is a Significant Subsidiary
or any of its Restricted Subsidiaries that is a Significant Subsidiary or any
group of Restricted Subsidiaries that, taken together, would constitute a
Significant Subsidiary pursuant to or within the meaning of Bankruptcy Law:

 

(A)                              commences
a voluntary case,

 

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

 

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

 

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

 

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

 

(A)                              is
for relief against the Company or any of its Restricted Subsidiaries that is a
Significant Subsidiary or any group of Restricted Subsidiaries of the Company
that, taken together, would constitute a Significant Subsidiary in an
involuntary case;

 

63

 

(B)                                appoints
a custodian of the Company or any of its Restricted Subsidiaries that is a
Significant Subsidiary or any group of Restricted Subsidiaries of the Company
that, taken together, would constitute a Significant Subsidiary or for all or
substantially all of the property of the Company or any of its Restricted
Subsidiaries that is a Significant Subsidiary or any group of Restricted
Subsidiaries of the Company that, taken together, would constitute a
Significant Subsidiary; or

 

(C)                                orders
the liquidation of the Company or any of its Restricted Subsidiaries that is a
Significant Subsidiary or any group of Restricted Subsidiaries of the Company
that, taken together, would constitute a Significant Subsidiary;

 

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

 

Section 6.02                                Acceleration.  In the case of an Event of Default specified
in clause (9) or (10) of Section 6.01
hereof, with respect to the Company any Restricted Subsidiary that is a
Significant Subsidiary or any group of Restricted Subsidiaries that, taken
together, would constitute a Significant Subsidiary, all outstanding Notes will
become due and payable immediately without further action or notice.  If any other Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of
the then outstanding Notes may declare all the Notes to be due and payable
immediately.  Upon any such declaration,
the Notes shall become due and payable immediately.

 

Subject to
certain limitations, the Holders of a majority in principal amount of the then
outstanding Notes may direct the Trustee in its exercise of any trust or
power.  The Trustee may withhold from
Holders of the Notes notice of any continuing Default or Event of Default if it
determines that withholding Notes is in their interest, except a Default or
Event of Default relating to the payment of principal or interest.

 

Section 6.03                                Other
Remedies.  If an Event of Default
occurs and is continuing, the Trustee may pursue any available remedy to
collect the payment of principal and premium, if any, and interest on the Notes
or to enforce the performance of any provision of the Notes or this Indenture.

 

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

 

Section 6.04                                Waiver
of Past Defaults.  Holders of not
less than a majority in aggregate principal amount of the then outstanding
Notes so accelerated in accordance with Section 6.02 by notice to
the Trustee may on behalf of the Holders of all of the Notes waive an existing
Default or Event of Default and its consequences hereunder, except a continuing
Default or Event of Default in the payment of the principal of, premium, if
any, or interest on, the Notes (including in connection with an offer to
purchase); provided, however, that the Holders of a

 

64

 

majority in
aggregate principal amount of the then outstanding Notes may rescind an
acceleration and its consequences, including any related payment default that
resulted from such acceleration.  Upon
any such waiver, such Default shall cease to exist, and any Event of Default
arising therefrom shall be deemed to have been cured for every purpose of this
Indenture; but no such waiver shall extend to any subsequent or other Default
or impair any right consequent thereon.

 

Section 6.05                                Control
by Majority.  Holders of a majority
in principal amount of the then outstanding Notes may direct the time, method
and place of conducting any proceeding for exercising any remedy available to
the Trustee or exercising any trust or power conferred on it.  However, the Trustee may refuse to follow any
direction that conflicts with law or this Indenture that the Trustee determines
may be prejudicial to the rights of other Holders of Notes or that may involve
the Trustee in personal liability.

 

Section 6.06                                Limitation
on Suits.  A Holder may pursue a
remedy with respect to this Indenture or the Notes only if:

 

(1)                                  such
Holder has previously given the Trustee notice that an Event of Default is
continuing;

 

(2)                                  Holders
of at least 25% in aggregate principal amount of the outstanding Notes have
requested the Trustee to pursue the remedy;

 

(3)                                  such
Holders have offered the Trustee reasonable security or indemnity satisfactory
to it against any loss, liability or expense;

 

(4)                                  the
Trustee has not complied with such request within 60 days after the receipt
thereof and the offer of security or indemnity; and

 

(5)                                  Holders
of a majority in aggregate principal amount of the outstanding Notes have not
given the Trustee a direction inconsistent with such request within such 60-day
period.

 

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

 

Section 6.07                                Rights
of Holders of Notes to Receive Payment. 
Notwithstanding any other provision of this Indenture, the right of any
Holder of a Note to receive payment of principal, premium, if any, and interest
on the Note, on or after the respective due dates expressed in the Note
(including in connection with an offer to purchase), or to bring suit for the
enforcement of any such payment on or after such respective dates, shall not be
impaired or affected without the consent of such Holder.

 

Section 6.08                                Collection
Suit by Trustee.  If an Event of
Default specified in Section 6.01(1) or (2) occurs
and is continuing, the Trustee is authorized to recover judgment in its own
name and as Trustee of an express trust against the Company for the whole
amount of principal of, premium, if any, and interest remaining unpaid on the
Notes and interest on overdue principal and, to the extent lawful, interest and
such further amount as shall be sufficient to cover

 

65

 

the costs and
expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel.

 

Section 6.09                                Trustee
May File Proofs of Claim.  The
Trustee is authorized 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 (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel) and the
Holders of the Notes allowed in any judicial proceedings relative to the Company
(or any other obligor upon the Notes), its creditors or its property and shall
be entitled and empowered to collect, receive and distribute any money or other
property payable or deliverable on any such claims and any custodian in any
such judicial proceeding is hereby authorized by each Holder to make such
payments to the Trustee, and in the event that the Trustee shall consent to the
making of such payments directly to the Holders, to pay to the Trustee any
amount due to it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 7.07 hereof. 
To the extent that the payment of any such compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any
other amounts due the Trustee under Section 7.07 hereof out of the
estate in any such proceeding, 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, money, securities and other properties that the Holders may be
entitled to receive in such proceeding whether in liquidation or under any plan
of reorganization or arrangement or otherwise. 
Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the Notes or
the rights of any Holder, or to authorize the Trustee to vote in respect of the
claim of any Holder in any such proceeding.

 

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

 

First:  to the Trustee, its agents and attorneys for
amounts due under Section 7.07 hereof, including payment of all
compensation, reasonable expenses and liabilities incurred, and all advances
made, by the Trustee and the costs and expenses of collection;

 

Second:  to Holders of Notes for amounts due and
unpaid on the Notes for principal, premium, if any, and interest, ratably,
without preference or priority of any kind, according to the amounts due and
payable on the Notes for principal, premium, if any and interest, respectively;
and

 

Third:  to the Company or to such party as a court of
competent jurisdiction shall direct.

 

The Trustee
may fix a record date and payment date for any payment to Holders of Notes
pursuant to this Section 6.10.

 

Section 6.11                                Undertaking
for Costs.  In any suit for the
enforcement of any right or remedy under this Indenture or in any suit against
the Trustee for any action taken or omitted by it as a Trustee, a court in its
discretion may require the filing by any party litigant in the suit of an

 

66

 

undertaking to pay
the costs of the suit, and the court in its discretion may assess reasonable
costs, including reasonable attorneys’ fees and expenses, against any party
litigant in the suit, having due regard to the merits and good faith of the
claims or defenses made by the party litigant. 
This Section 6.11 does not apply to a suit by the Trustee, a
suit by a Holder of a Note pursuant to Section 6.07 hereof, or a
suit by Holders of more than 10% in principal amount of the then outstanding Notes.

 

ARTICLE 7

TRUSTEE

 

For purposes
of this series of Securities (as defined in the Base Indenture), this Article 7
hereby amends and restates in its entirety Article Six of the Base
Indenture.

 

Section 7.01                                Duties
of Trustee.  (a)  If an Event of
Default has occurred and is continuing, the Trustee will exercise such of the
rights and powers vested in it by this Indenture, and use the same degree of
care and skill in its exercise, as a prudent person would exercise or use under
the circumstances in the conduct of such person’s own affairs.

 

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

 

(1)                                  the
duties of the Trustee will be determined solely by the express provisions of
this Indenture and the Trustee need perform only those duties that are specifically
set forth in this Indenture and no others, and no implied covenants or
obligations shall be read into this Indenture against the Trustee; and

 

(2)                                  in
the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the Trustee and conforming
to the requirements of this Indenture. 
However, in the case of certificates specifically required by any
provision herein to be furnished to it, the Trustee will examine the
certificates and opinions to determine whether or not they conform to the
requirements of this Indenture.

 

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

 

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

 

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

 

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

 

67

 

(d)                                 Whether
or not therein expressly so provided, every provision of this Indenture that in
any way relates to the Trustee is subject to paragraphs (a), (b),
and (c) of this Section 7.01.

 

(e)                                  No
provision of this Indenture will require the Trustee to expend or risk its own
funds or incur any liability.  The
Trustee will be under no obligation to exercise any of its rights and powers
under this Indenture at the request of any Holders, unless such Holder has
offered to the Trustee security and indemnity satisfactory to it against any
loss, liability or expense.

 

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

 

Section 7.02                                Rights
of Trustee.  (a)  The Trustee
may conclusively rely upon any document (whether in original or facsimile form)
believed by it to be genuine and to have been signed or presented by the proper
Person.  The Trustee need not investigate
any fact or matter stated in the document.

 

(b)                                 Before
the Trustee acts or refrains from acting, it may require an Officers’ Certificate
or an Opinion of Counsel or both.  The
Trustee will not be liable for any action it takes or omits to take in good
faith in reliance on such Officers’ Certificate or Opinion of Counsel.  The Trustee may consult with counsel of its
own selection and the advice of such counsel or any Opinion of Counsel will be
full and complete authorization and protection from liability in respect of any
action taken, suffered or omitted by it hereunder in good faith and in reliance
thereon.

 

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

 

(d)                                 The
Trustee will not be liable for any action it takes or omits to take in good
faith that it believes to be authorized or within the rights or powers
conferred upon it by this Indenture.

 

(e)                                  Unless
otherwise specifically provided in this Indenture, any demand, request,
direction or notice from the Company will be sufficient if signed by an Officer
of the Company.

 

(f)                                    The
Trustee will be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request or direction of any of the
Holders unless such Holders have offered to the Trustee reasonable security or
indemnity satisfactory to it against the costs, expenses and liabilities that
might be incurred by it in compliance with such request or direction.

 

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

 

(h)                                 The
Trustee shall not be deemed to have notice of any Default or Event of Default
unless a Responsible Officer of the Trustee has actual knowledge thereof or
unless written notice

 

68

 

of any event which
is in fact such a default is received by the Trustee at the Corporate Trustee
Office of the Trustee, and such notice references the Securities and this
Indenture.

 

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

 

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

 

Section 7.03                                Individual
Rights of Trustee.  The Trustee in
its individual or any other capacity may become the owner or pledgee of Notes
and may otherwise deal with the Company or any Affiliate of the Company with
the same rights it would have if it were not Trustee.  However, in the event that the Trustee
acquires any conflicting interest it must eliminate such conflict within 90
days, apply to the SEC for permission to continue as trustee (if this Indenture
has been qualified under the TIA) or resign. 
Any Agent may do the same with like rights and duties.  The Trustee is also subject to Sections
7.10 and 7.11 hereof.

 

Section 7.04                                Trustee’s
Disclaimer.  The Trustee will not be
responsible for and makes no representation as to the validity or adequacy of
this Indenture or the Notes, it shall not be accountable for the Company’s use
of the proceeds from the Notes or any money paid to the Company or upon the
Company’s direction under any provision of this Indenture, it will not be
responsible for the use or application of any money received by any Paying
Agent other than the Trustee, and it will not be responsible for any statement
or recital herein or any statement in the Notes or any other document in
connection with the sale of the Notes or pursuant to this Indenture other than
its certificate of authentication.

 

Section 7.05                                Notice
of Defaults.  If a Default or Event
of Default occurs and is continuing and if it is known to the Trustee, the
Trustee will mail to Holders of Notes a notice of the Default or Event of
Default within 90 days after it occurs. 
Except in the case of a Default or Event of Default in payment of
principal of and premium, if any, or interest on, any Note, the Trustee may
withhold the notice if and so long as a committee of its Responsible Officers
in good faith determines that withholding the notice is in the interests of the
Holders of the Notes.

 

Section 7.06                                Reports
by Trustee to Holders of the Notes.  (a) 
Within 60 days after each May 15 beginning with the May 15 following
the date of this Indenture, and for so long as Notes remain outstanding, the
Trustee will mail to the Holders of the Notes a brief report dated as of such
reporting date that complies with TIA § 313(a) (but if no event
described in TIA § 313(a) has occurred within the twelve months
preceding the reporting date, no report need be transmitted).  The Trustee also will comply with TIA § 313(b)(2).  The Trustee will also transmit by mail all
reports as required by TIA § 313(c).

 

69

 

(b)                                 A
copy of each report at the time of its mailing to the Holders of Notes will be
mailed by the Trustee to the Company and filed by the Trustee with the SEC and
each stock exchange on which the Notes are listed in accordance with TIA § 313(d).  The Company will promptly notify the Trustee
when the Notes are listed on any stock exchange.

 

Section 7.07                                Compensation
and Indemnity.  (a)  The Company
will pay to the Trustee from time to time reasonable compensation for its
acceptance of this Indenture and services hereunder.  The Trustee’s compensation will not be
limited by any law on compensation of a trustee of an express trust.  The Company will reimburse the Trustee
promptly upon request for all reasonable disbursements, advances and expenses
incurred or made by it in addition to the compensation for its services.  Such expenses will include the reasonable
compensation, disbursements and expenses of the Trustee’s agents and counsel.

 

(b)                                 The
Company and the Guarantors, jointly and severally, will indemnify the Trustee
against any and all losses, liabilities, claims, damages or expenses incurred
by it arising out of or in connection with the acceptance or administration of
its duties under this Indenture, including the costs and expenses of enforcing
this Indenture against the Company and the Guarantors (including this Section 7.07)
and defending itself against any claim (whether asserted by the Company, the
Guarantors, any Holder or any other Person) or liability in connection with the
exercise or performance of any of its powers or duties hereunder, except to the
extent any such loss, liability, claim, damage or expense as shall be
determined to have been caused by its own negligence or bad faith.  The Trustee, upon a responsible officer
receiving written notice thereof, will notify the Company promptly of any claim
for which it may seek indemnity.  Failure
by the Trustee to so notify the Company will not relieve the Company or any of
the Guarantors of their obligations hereunder. 
The Company or such Guarantor will defend the claim and the Trustee will
cooperate in the defense.  The Trustee
may have separate counsel and the Company will pay the reasonable fees and
expenses of such counsel.  Neither the
Company nor any Guarantor need pay for any settlement made without its consent,
which consent will not be unreasonably withheld.

 

(c)                                  The
obligations of the Company and the Guarantors under this Section 7.07
will survive the satisfaction and discharge of this Indenture.

 

(d)                                 To
secure the Company’s and the Guarantors’ payment obligations in this Section 7.07,
the Trustee will have a Lien prior to the Notes on all money or property held
or collected by the Trustee, except that held in trust to pay principal and
interest on particular Notes.  Such Lien
will survive the satisfaction and discharge of this Indenture.

 

(e)                                  When
the Trustee incurs expenses or renders services after an Event of Default
specified in Section 6.01(7) or (8) hereof occurs,
the expenses and the compensation for the services (including the fees and
expenses of its agents and counsel) are intended to constitute expenses of
administration under any Bankruptcy Law.

 

(f)                                    The
Trustee will comply with the provisions of TIA § 313(b)(2) to the
extent applicable.

 

70

 

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

 

(b)                                 The
Trustee may resign in writing at any time and be discharged from the trust
hereby created by so notifying the Company. 
The Holders of a majority in principal amount of the then outstanding
Notes may remove the Trustee by so notifying the Trustee and the Company in
writing.  The Company may remove the
Trustee if:

 

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

 

(2)                                  the
Trustee is adjudged a bankrupt or an insolvent or an order for relief is
entered with respect to the Trustee under any Bankruptcy Law;

 

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

 

(4)                                  the
Trustee becomes incapable of acting.

 

(c)                                  If
the Trustee resigns or is removed or if a vacancy exists in the office of
Trustee for any reason, the Company will promptly appoint a successor
Trustee.  Within one year after the
successor Trustee takes office, the Holders of a majority in principal amount
of the then outstanding Notes may appoint a successor Trustee to replace the
successor Trustee appointed by the Company.

 

(d)                                 If
a successor Trustee does not take office within 60 days after the retiring
Trustee resigns or is removed, the retiring Trustee, the Company, or the
Holders of at least 10% in principal amount of the then outstanding Notes may
petition at the expense of the Company any court of competent jurisdiction for
the appointment of a successor Trustee.

 

(e)                                  If
the Trustee, after written request by any Holder who has been a Holder for at
least six months, fails to comply with Section 7.10 hereof, such
Holder may petition any court of competent jurisdiction for the removal of the
Trustee and the appointment of a successor Trustee.

 

(f)                                    A
successor Trustee will deliver a written acceptance of its appointment to the
retiring Trustee and to the Company. 
Thereupon, the resignation or removal of the retiring Trustee will
become effective, and the successor Trustee will have all the rights, powers
and duties of the Trustee under this Indenture. 
The successor Trustee will mail a notice of its succession to
Holders.  The retiring Trustee will
promptly transfer all property held by it as Trustee to the successor Trustee, provided
all sums owing to the Trustee hereunder have been paid and subject to the Lien
provided for in Section 7.07 hereof.  Notwithstanding replacement of the Trustee
pursuant to this Section 7.08, the Company’s obligations under Section 7.07
hereof will continue for the benefit of the retiring Trustee.

 

Section 7.09                                Successor
Trustee by Merger, etc.  If the
Trustee consolidates, merges or converts into, or transfers all or
substantially all of its corporate trust business to, another corporation, the
successor corporation without any further act will be the successor Trustee.

 

71

 

Section 7.10                                Eligibility;
Disqualification.  There will at all
times be a Trustee hereunder that is a corporation organized and doing business
under the laws of the United States of America or of any state thereof that is
authorized under such laws to exercise corporate trustee power, that is subject
to supervision or examination by federal or state authorities and that has a
combined capital and surplus of at least $100.0 million as set forth in its
most recent published annual report of condition.

 

This Indenture
will always have a Trustee who satisfies the requirements of TIA § 310(a)(1),
(2) and (5).  The Trustee is subject
to TIA § 310(b).

 

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

 

ARTICLE 8

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

 

For purposes
of this series of Securities (as defined in the Base Indenture), this Article 8
hereby amends and restates in its entirety Article Thirteen of the Base
Indenture.

 

Section 8.01                                Option
to Effect Legal Defeasance or Covenant Defeasance.  The Company may, at its option and at any
time, elect to have either Section 8.02 or 8.03 hereof be
applied to all outstanding Notes and the Subsidiary Guarantees upon compliance
with the conditions set forth below in this Article 8.

 

Section 8.02                                Legal
Defeasance and Discharge.  Upon the
Company’s exercise under Section 8.01 hereof of the option
applicable to this Section 8.02, the Company and each of the
Guarantors will, subject to the satisfaction of the conditions set forth in Section 8.04
hereof, be deemed to have been discharged from their obligations with respect
to all outstanding Notes (including the Subsidiary Guarantees) on the date the
conditions set forth below are satisfied (hereinafter, “Legal Defeasance”).  For this purpose, Legal Defeasance means that
the Company and the Guarantors will be deemed to have paid and discharged the
entire Indebtedness represented by the outstanding Notes (including the
Subsidiary Guarantees), which will thereafter be deemed to be “outstanding”
only for the purposes of Section 8.05 hereof and the other Sections
of this Indenture referred to in clauses (1) and (2) below,
and to have satisfied all their other obligations under such Notes, the
Subsidiary Guarantees and this Indenture (and the Trustee, on demand of and at
the expense of the Company, shall execute proper instruments acknowledging the
same), except for the following provisions which will survive until otherwise
terminated or discharged hereunder:

 

(1)                                  the
rights of Holders of outstanding Notes to receive payments in respect of the
principal of, interest, or premium, if any, on the Notes when such payments are
due from the trust referred to in Section 8.04 hereof;

 

72

 

(2)                                  the
Company’s obligations with respect to the Notes under Article 2 and
Section 4.02 hereof;

 

(3)                                  the
rights, powers, trusts, duties and immunities of the Trustee hereunder and the
Company’s and the Guarantors’ obligations in connection therewith; and..

 

(4)                                  this
Article 8.

 

Subject to
compliance with this Article 8, the Company may exercise its option
under this Section 8.02 notwithstanding the prior exercise of its
option under Section 8.03 hereof.

 

Section 8.03                                Covenant
Defeasance.  Upon the Company’s
exercise under Section 8.01 hereof of the option applicable to this
Section 8.03, the Company and each of the Guarantors will, subject
to the satisfaction of the conditions set forth in Section 8.04
hereof, be released from each of their obligations under the covenants contained
in Sections 4.04, 4.07, 4.08, 4.09, 4.10, 4.11,
4.12, 4.13, 4.15, 4.16, 4.17, 4.18, 4.19
and 4.20 hereof and clause (4) of Section 5.01
hereof with respect to the outstanding Notes on and after the date the
conditions set forth in Section 8.04 hereof are satisfied
(hereinafter, “Covenant Defeasance”), and the Notes will thereafter be
deemed not “outstanding” for the purposes of any direction, waiver, consent or
declaration or act of Holders (and the consequences of any thereof) in
connection with such covenants, but will continue to be deemed “outstanding”
for all other purposes hereunder (it being understood that such Notes will not
be deemed outstanding for accounting purposes). 
For this purpose, Covenant Defeasance means that, with respect to the outstanding
Notes and Subsidiary Guarantees, the Company and the Guarantors may omit to
comply with and will have no liability in respect of any term, condition or
limitation set forth in any such covenant, whether directly or indirectly, by
reason of any reference elsewhere herein to any such covenant or by reason of
any reference in any such covenant to any other provision herein or in any
other document and such omission to comply will not constitute a Default or an
Event of Default under Section 6.01 hereof, but, except as
specified above, the remainder of this Indenture and such Notes and Subsidiary
Guarantees will be unaffected thereby. 
In addition, upon the Company’s exercise under Section 8.01
hereof of the option applicable to this Section 8.03 hereof,
subject to the satisfaction of the conditions set forth in Section 8.04
hereon Sections 6.01(3) through 6.01(5) hereof will not
constitute Events of Default.

 

Section 8.04                                Conditions
to Legal or Covenant Defeasance.  In
order to exercise either Legal Defeasance or Covenant Defeasance under either Section 8.02
or 8.03 hereof:

 

(1)                                  the
Company must irrevocably deposit with the Trustee, in trust, for the benefit of
the Holders of the Notes, cash in U.S. dollars, non-callable Government
Securities, or a combination of cash in U.S. dollars and non-callable
Government Securities, in amounts as will be sufficient, in the opinion of a
nationally recognized investment bank, appraisal firm or firm of independent
public accountants to pay the principal of, or interest and premium, if any, on
the outstanding Notes on the stated date for payment thereof or on the
applicable redemption date, as the case may be, and the Company must specify
whether the Notes are being defeased to such stated date for payment or to a particular
redemption date;

 

73

 

(2)                                  in
the case of an election under Section 8.02 hereof, the Company has
delivered to the Trustee an Opinion of Counsel confirming that:

 

(A)                              the
Company has received from, or there has been published by, the Internal Revenue
Service a ruling; or

 

(B)                                since
the date of this Indenture, there has been a change in the applicable federal
income tax law,

 

in either case to the effect that, and based
thereon such Opinion of Counsel shall confirm that, the Holders of the
outstanding Notes will not recognize income, gain or loss for federal income
tax purposes as a result of such Legal Defeasance and will be subject to
federal income tax on the same amounts, in the same manner and at the same
times as would have been the case if such Legal Defeasance had not occurred;

 

(3)                                  in
the case of an election under Section 8.03 hereof, the Company has
delivered to the Trustee an Opinion of Counsel confirming that the Holders of
the outstanding Notes will not recognize income, gain or loss for federal
income tax purposes as a result of such Covenant Defeasance and will be subject
to federal income tax on the same amounts, in the same manner and at the same
times as would have been the case if such Covenant Defeasance had not occurred;

 

(4)                                  no
Default or Event of Default has occurred and is continuing on the date of such
deposit (other than a Default or Event of Default resulting from the borrowing
of fiends to be applied to such deposit) and the deposit will not result in a
breach or violation of, or constitute a default under, any other instrument to
which the Company or any Guarantor is a party or by which the Company or any
Guarantor is bound;

 

(5)                                  such
Legal Defeasance or Covenant Defeasance will not result in a breach or
violation of, or constitute a default under, any material agreement or
instrument (other than this Indenture) to which the Company or any of its
Subsidiaries is a party or by which the Company or any of its Subsidiaries is
bound;

 

(6)                                  the
Company must deliver to the Trustee an Officers’ Certificate stating that the
deposit was not made by the Company with the intent of preferring the Holders
of Notes over the other creditors of the Company with the intent of defeating,
hindering, delaying or defrauding creditors of the Company or others; and

 

(7)                                  the
Company must deliver to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent provided for or relating to
the Legal Defeasance or the Covenant Defeasance have been complied with.

 

Section 8.05                                Deposited
Money and Government Securities to be Held in Trust; Other Miscellaneous
Provisions.  Subject to Section 8.06
hereof, all money and non-callable Government Securities (including the proceeds
thereof) deposited with the Trustee (or other qualifying trustee, collectively
for purposes of this Section 8.05, the “Trustee”) pursuant
to Section 8.04 hereof in respect of the outstanding Notes will be
held in trust and applied by the

 

74

 

Trustee, in
accordance with the provisions of such Notes and this Indenture, to the
payment, either directly or through any Paying Agent (including the Company
acting as Paying Agent) as the Trustee may determine, to the Holders of such
Notes of all sums due and to become due thereon in respect of principal and
premium, if any, and interest, but such money need not be segregated from other
funds except to the extent required by law.

 

The Company
will pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the cash or non-callable Government Securities deposited
pursuant to Section 8.04 hereof or the principal and interest
received in respect thereof other than any such tax, fee or other charge which
by law is for the account of the Holders of the outstanding Notes.

 

Notwithstanding
anything in this Article 8 to the contrary, the Trustee will
deliver or pay to the Company from time to time upon the request of the Company
any money or non-callable Government Securities held by it as provided in Section 8.04
hereof which, in the opinion of a nationally recognized firm of independent
public accountants expressed in a written certification thereof delivered to
the Trustee (which may be the opinion delivered under Section 8.04(1) hereof),
are in excess of the amount thereof that would then be required to be deposited
to effect an equivalent Legal Defeasance or Covenant Defeasance.

 

Section 8.06                                Repayment
to Company.  Any money deposited with
the Trustee or any Paying Agent, or then held by the Company, in trust for the
payment of the principal of, premium, if any, or interest on any Note and
remaining unclaimed for two years after such principal, premium, if any, or
interest has become due and payable shall be paid to the Company on its request
or (if then held by the Company) will be discharged from such trust; and the
Holder of such Note will thereafter be permitted to look only to the Company
for payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Company as trustee
thereof, will thereupon cease; provided, however, that the
Trustee or such Paying Agent, before being required to make any such repayment,
may at the expense of the Company cause to be published once, in the New
York Times and The Wall Street Journal (national edition), notice
that such money remains unclaimed and that, after a date specified therein,
which will not be less than 30 days from the date of such notification or
publication, any unclaimed balance of such money then remaining will be repaid
to the Company.

 

Section 8.07                                Reinstatement.  If the Trustee or Paying Agent is unable to
apply any United States dollars or non-callable Government Securities in
accordance with Section 8.02 or 8.03 hereof, as the case may
be, by reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, then the
Company’s and the Guarantors’ obligations under this Indenture and the Notes
and the Subsidiary Guarantees will be revived and reinstated as though no
deposit had occurred pursuant to Section 8.02 or 8.03 hereof
until such time as the Trustee or Paying Agent is permitted to apply all such
money in accordance with Section 8.02 or 8.03 hereof, as the
case may be; provided, however, that, if the Company makes any
payment of principal of, premium, if any, or interest on any Note following the
reinstatement of its obligations, the Company will 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.

 

75

 

ARTICLE 9

AMENDMENT, SUPPLEMENT AND WAIVER

 

For purposes
of this series of Securities (as defined in the Base Indenture), this Article 9
hereby amends and restates in its entirety Article Nine of the Base
Indenture.

 

Section 9.01                                Without
Consent of Holders of Notes. 
Notwithstanding Section 9.02 of this Indenture (but subject
in any event to Section 10.13), without the consent of any Holder
of Notes, the Company, the Guarantors and the Trustee may amend or supplement
this Indenture, the Notes or the Subsidiary Guarantees:

 

(1)                                  to
cure any ambiguity, mistake, defect or inconsistency;

 

(2)                                  to
provide for uncertificated Notes in addition to or in place of Certificated
Notes;

 

(3)                                  to
provide for the assumption of the Company’s or a Guarantor’s obligations to the
Holders of Notes and Subsidiary Guarantees in the case of a merger or
consolidation or sale of all or substantially all of the Company’s or such
Guarantor’s assets, as applicable;

 

(4)                                  to
make any change that would provide any additional rights or benefits to the
Holders of Notes or that does not adversely affect the legal rights hereunder
of any such Holder;

 

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

 

(6)                                  to
add additional Guarantees with respect to the Notes or release Guarantors from
Subsidiary Guarantees as provided or permitted by the terms of this Indenture;
or

 

(7)                                  to
conform the text of this Indenture or the Notes to any provision of the “Description
of Notes” section of the Company’s Prospectus Supplement dated January 13,
2006, relating to the initial offering of the Notes, to the extent that such
provision in that “Description of Notes” was intended to be a verbatim
recitation of a provision of this Indenture, the Subsidiary Guarantees or the
Notes.

 

The consent of
the Holders of the Notes is not necessary to approve the particular form of any
proposed amendment.  It is sufficient if
such consent approves the substance of such proposed amendment.  After an amendment becomes effective, the
Company is required to mail to each registered Holder of the Notes a notice
briefly describing such amendment. 
However, the failure to give such notice to all Holders of the Notes, or
any defect therein, will not impair or affect the validity of the amendment.

 

Upon the
request of the Company accompanied by a resolution of its Board of Directors
authorizing the execution of any such amended or supplemental indenture, and
upon receipt by

 

76

 

the Trustee of the documents described in Section 7.02
hereof the Trustee will join with the Company and the Guarantors in the
execution of any amended or supplemental indenture authorized or permitted by
the terms of this Indenture and to make any further appropriate agreements and
stipulations that may be therein contained, but the Trustee will not be
obligated to enter into such amended or supplemental indenture that affects its
own rights, duties or immunities under this Indenture or otherwise.

 

Section 9.02                                With
Consent of Holders of Notes.  Except
as provided below in this Section 9.02 and Section 10.13,
the Company and the Trustee may amend or supplement this Indenture (including,
without limitation, Section 3.09, 4.10 and 4.15
hereof), the Subsidiary Guarantees and the Notes with the consent of the
Holders of at least a majority in principal amount of the Notes (including,
without limitation, Additional Notes, if any) then outstanding voting as a
single class (including, without limitation, consents obtained in connection
with a tender offer or exchange offer for, or purchase of, the Notes), and,
subject to Sections 6.04 and 6.07 hereof; any existing Default or
Event of Default (other than a Default or Event of Default in the payment of
the principal of, premium, if any, or interest on the Notes, except a payment
default resulting from an acceleration that has been rescinded) or compliance
with any provision of this Indenture, the Subsidiary Guarantees or the Notes
may be waived with the consent of the Holders of a majority in principal amount
of the then outstanding Notes voting as a single class (including consents
obtained in connection with a tender offer or exchange offer for, or purchase
of, the Notes).  Section 2.08
hereof shall determine which Notes are considered to be “outstanding” for
purposes of this Section 9.02.

 

Upon the
request of the Company accompanied by a resolution of its Board of Directors
authorizing the execution of any such amended or supplemental indenture, and
upon the filing with the Trustee of evidence satisfactory to the Trustee of the
consent of the Holders of Notes as aforesaid, and upon receipt by the Trustee
of the documents described in Section 7.02 hereof, the Trustee will
join with the Company and the Guarantors in the execution of such amended or
supplemental indenture unless such amended or supplemental indenture directly
affects the Trustee’s own rights, duties or immunities under this Indenture or
otherwise, in which case the Trustee may in its discretion, but will not be
obligated to, enter into such amended or supplemental Indenture.

 

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

 

After an
amendment, supplement or waiver under this Section 9.02 becomes
effective, the Company will mail to the Holders of Notes affected thereby a
notice briefly describing the amendment, supplement or waiver.  Any failure of the Company to mail such
notice, or any defect therein, will not, however, in any way impair or affect
the validity of any such amended or supplemental indenture or waiver.  Subject to Sections 6.04 and 6.07
hereof, the Holders of a majority in aggregate principal amount of the Notes
then outstanding voting as a single class may waive compliance in a particular
instance by the Company with any provision of this Indenture, the Notes, or the
Subsidiary Guarantees.  However, without
the consent of each Holder affected, an amendment, supplement or waiver under
this Section 9.02 may not (with respect to any Notes held by a
non-consenting Holder):

 

77

 

(1)                                  reduce
the principal amount of Notes whose Holders must consent to an amendment,
supplement or waiver,

 

(2)                                  reduce
the principal of or change the fixed maturity of any Note or alter the
provisions with respect to the redemption of the Notes (other than as provided
with respect to Sections 3.09, 4.10 or 4.15 hereof);

 

(3)                                  reduce
the rate of or change the time for payment of interest, including default
interest, on any Note;

 

(4)                                  waive
a Default or Event of Default in the payment of principal of, interest, or
premium, if any, on the Notes (except a rescission of acceleration of the Notes
by the Holders of at least a majority in aggregate principal amount of the then
outstanding Notes and a waiver of the payment default that resulted from such
acceleration);

 

(5)                                  make
any Note payable in money other than that stated in the Notes;

 

(6)                                  make
any change in the provisions of this Indenture relating to waivers of past
Defaults or the rights of Holders of Notes to receive payments of principal of,
interest, or premium, if any, on the Notes;

 

(7)                                  waive
a redemption payment with respect to any Note (other than a payment required by
Sections 3.09, 4.10 or 4.15 hereof);

 

(8)                                  release
any Guarantor from any of its obligations under its Subsidiary Guarantee or
this Indenture, except in accordance with the terms of this Indenture; or

 

(9)                                  make
any change covered by (6) in the foregoing amendment and waiver
provisions.

 

In addition,
any amendment to, or waiver of the provisions of this Indenture relating to
subordination that adversely affects the rights of the Holders of the Notes
will require the consent of the Holders of at least 75% in aggregate principal
amount of Notes then outstanding.

 

Section 9.03                                Compliance
with Trust Indenture Act.  Every
amendment or supplement to this Indenture or the Notes will be set forth in an
amended or supplemental indenture that complies with the TIA as then in effect.

 

Section 9.04                                Revocation
and Effect of Consents.  Until an
amendment, supplement or waiver becomes effective, a consent to it by a Holder
of a Note is a continuing consent by the Holder of a Note and every subsequent
Holder of a Note or portion of a Note that evidences the same debt as the
consenting Holder’s Note, even if notation of the consent is not made on any
Note.  However, any such Holder of a Note
or subsequent Holder of a Note may revoke the consent as to its Note if the
Trustee receives written notice of revocation before the date the waiver,
supplement or amendment becomes effective. 
An amendment, supplement or waiver becomes effective in accordance with
its terms and thereafter binds every Holder.

 

78

 

 

Section 9.05                                Notation
on or Exchange of Notes.  The Trustee
may place an appropriate notation about an amendment, supplement or waiver on
any Note thereafter authenticated.  The
Company in exchange for all Notes may issue and the Trustee shall, upon receipt
of an Authentication Order, authenticate new Notes that reflect the amendment,
supplement or waiver.

 

Failure to
make the appropriate notation or issue a new Note will not affect the validity
and effect of such amendment, supplement or waiver.

 

Section 9.06                                Trustee
to Sign Amendments, etc.  The Trustee
will sign any amended or supplemental indenture authorized pursuant to this Article 9
if the amendment or supplement does not adversely affect the rights, duties,
liabilities or immunities of the Trustee.  The Company may not sign an amended or
supplemental indenture until the Board of Directors approves it.  In executing any amended or supplemental
indenture, the Trustee will be provided with and (subject to Section 7.01
hereof) will be fully protected in relying upon, in addition to the documents
required by Section 13.04 hereof, an Officers’ Certificate and an
Opinion of Counsel stating that the execution of such amended or supplemental
indenture is authorized or permitted by this Indenture.

 

ARTICLE 10

SUBORDINATION

 

For purposes
of this series of Securities (as defined in the Base Indenture), this
Article 10 hereby amends and restates in its entirety
Article Fourteen of the Base Indenture.

 

Section 10.01                          Agreement
to Subordinate.  The Company agrees,
and each Holder by accepting a Note agrees, that the payment of principal,
interest, or premium, if any, on the Notes is subordinated in right of payment,
to the extent and in the manner provided in this Article 10, to the
prior payment in full of all Senior Debt (whether outstanding on the date
hereof or hereafter created, incurred, assumed or guaranteed) including the
Credit Agreement, the Senior Notes and the Convertible Notes, and that the
subordination is for the benefit of the holders of Senior Debt.

 

Section 10.02                          Liquidation;
Dissolution; Bankruptcy.  (1) 
Upon any distribution to creditors of the Company in a liquidation or
dissolution of the Company or in a bankruptcy, reorganization, insolvency,
receivership or similar proceeding relating to the Company or its property, in
an assignment for the benefit of creditors or any marshaling of the Company’s
assets and liabilities, the holders of Senior Debt will be entitled to receive
payment in full in cash of all Obligations due in respect of Senior Debt (including
interest after the commencement of any bankruptcy proceeding at the rate
specified in the applicable Senior Debt, whether or not such interest is an
allowable claim) before the Holders of Notes will be entitled to receive any
payment with respect to the Notes (except that Holders of Notes may receive and
retain Permitted Junior Securities and payments made from either of the trusts
created pursuant to Sections 8.01 or 11.01 hereof so long as the
trust was created in accordance with all relevant conditions specified in this
Indenture at the time it was created.)

 

Section 10.03                          Default
on Designated Senior Debt.  (a) 
The Company may not make any payment in respect to the Notes (except in
Permitted Junior Securities or from the trusts created

 

79

 

pursuant to Section 8.01
hereof so long as the trust was created in accordance with all relevant
conditions specified in this Indenture at the time it was created) if:

 

(1)                                  a
payment default on Designated Senior Debt occurs (whether at maturity, due to
acceleration, or otherwise) and is continuing; or

 

(2)                                  any
other default occurs and is continuing on any series of Designated Senior Debt
that permits holders of that series of Designated Senior Debt to accelerate its
maturity and the Trustee receives a notice of such default (a “Payment
Blockage Notice”) from the Company, a representative of the holders of any
Designated Senior Debt or the administrative agent under the Credit
Agreement.  If the Trustee receives any
such Payment Blockage Notice, no subsequent Payment Blockage Notice will be
effective for purposes of this Section unless and until at least 360 days
have elapsed since the delivery of the immediately prior Payment Blockage
Notice.

 

No nonpayment
default that existed or was continuing on the date of delivery of any Payment
Blockage Notice to the Trustee will be, or be made, the basis for a subsequent
Payment Blockage Notice unless such default has have been cured or waived for a
period of not less than 90 consecutive days.

 

(b)                                 Payments
on the Notes may and will be resumed:

 

(1)                                  in
the case of a payment default, upon the date upon which such default is cured
or waived; and

 

(2)                                  in
the case of a nonpayment default, upon the earlier of the date on which such
nonpayment default is cured or waived or 179 days after the date on which the
applicable Payment Blockage Notice is received or the date on which the Trustee
receives notice from all representatives of all applicable Designated Senior
Debt rescinding the Payment Blockage Notice unless the maturity of any
Designated Senior Debt has been accelerated.

 

unless this Article 10
otherwise prohibits the payment, distribution or acquisition at the time of
such payment or acquisition.

 

Section 10.04                          Acceleration
of Notes.  The Company must promptly
notify holders and/or the Trustee (if applicable) of Senior Debt if payment of
the Notes is accelerated because of an Event of Default (which notice must be
provided at least five business days prior to the payment of the Notes)

 

Section 10.05                          When
Distribution Must Be Paid Over.  If
the Trustee or any Holder of the Notes receives a payment in respect of the
Notes (except in Permitted Junior Securities or from the trusts created
pursuant to Section 8.01 hereof) in contravention of these
subordination provisions set forth herein prior to payment in full of all
Obligations due in respect of Senior Debt (including without limitation,
interest after the commencement of any bankruptcy proceedings at the rate
specified in the applicable Senior Debt, whether or not such interest is an
allowable claim) the Trustee or the Holder, as the case may be, will hold the
payment in trust for the benefit of the holders of

 

80

 

Senior Debt.  Upon the proper written request of the
holders of Senior Debt, the Trustee or the Holder, as the case may be, will
deliver the amounts in trust to the holders of Senior Debt (on a pro rata basis based on the aggregate amount
of the Senior Debt) or their proper representative.

 

With respect
to the holders of Senior Debt, the Trustee undertakes to perform only those
obligations on the part of the Trustee as are specifically set forth in this Article 10,
and no implied covenants or obligations with respect to the holders of Senior
Debt will be read into this Indenture against the Trustee.  The Trustee will not be deemed to owe any
fiduciary duty to the holders of Senior Debt, and will not be liable to any
such holders if the Trustee pays over or distributes to or on behalf of Holders
or the Company or any other Person money or assets to which any holders of
Senior Debt are then entitled by virtue of this Article 10, except
if such payment is made as a result of the willful misconduct or gross
negligence of the Trustee.

 

Section 10.06                          Notice
by Company.  The Company will
promptly notify the Trustee and the Paying Agent of any facts known to the
Company that would cause a payment of any Obligations with respect to the Notes
to violate this Article 10, but failure to give such notice will
not affect the subordination of the Notes to the Senior Debt as provided in
this Article 10.

 

Section 10.07                          Subrogation.  After all Senior Debt is paid in full and
until the Notes are paid in full, Holders of Notes will be subrogated (equally
and ratably with all other Indebtedness pari  passu with the Notes) to the rights of holders of Senior Debt to
receive distributions applicable to Senior Debt to the extent that
distributions otherwise payable to the Holders of Notes have been applied to
the payment of Senior Debt.  A
distribution made under this Article 10 to holders of Senior Debt
that otherwise would have been made to Holders of Notes is not, as between the
Company and Holders, a payment by the Company on the Notes.

 

Section 10.08                          Relative
Rights.  This Article 10
defines the relative rights of Holders of Notes and holders of Senior
Debt.  Nothing in this Indenture will:

 

(1)                                  impair,
as between the Company and Holders of Notes, the obligation of the Company,
which is absolute and unconditional, to pay principal of, interest, or premium,
if any, on the Notes in accordance with their terms;

 

(2)                                  affect
the relative rights of Holders of Notes and creditors of the Company other than
their rights in relation to holders of Senior Debt; or

 

(3)                                  prevent
the Trustee or any Holder of Notes from exercising its available remedies upon
a Default or Event of Default, subject to the rights of holders and owners of
Senior Debt to receive distributions and payments otherwise payable to Holders
of Notes.

 

If the Company
fails because of this Article 10 to pay principal of, interest, or
premium, if any, on a Note on the due date, the failure is still a Default or
Event of Default.

 

Section 10.09                          Subordination
May Not Be Impaired by Company. 
No right of any holder of Senior Debt to enforce the subordination of
the Indebtedness evidenced by the Notes may be impaired by any act or failure
to act by the Company or any Holder or by the failure of the Company or any
Holder to comply with this Indenture.

 

81

 

Section 10.10                          Distribution
or Notice to Representative. 
Whenever a distribution is to be made or a notice given to holders of
Senior Debt, the distribution may be made and the notice given to their Representative.

 

Upon any
payment or distribution of assets of the Company referred to in this Article 10,
the Trustee and the Holders of Notes will be entitled to rely upon any order or
decree made by any court of competent jurisdiction or upon any certificate of
such Representative or of the liquidating trustee or agent or other Person
making any distribution to the Trustee or to the Holders of Notes for the
purpose of ascertaining the Persons entitled to participate in such
distribution, the holders of the Senior Debt and other Indebtedness of the
Company, the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this Article 10.

 

Section 10.11                          Rights
of Trustee and Paying Agent.  Notwithstanding
the provisions of this Article 10 or any other provision of this
Indenture, the Trustee will not be charged with knowledge of the existence of
any facts that would prohibit the making of any payment or distribution by the
Trustee, and the Trustee and the Paying Agent may continue to make payments on
the Notes, unless the Trustee has received at its Corporate Trust Office at
least three Business Days prior to the date of such payment written notice of
facts that would cause the payment of any Obligations with respect to the Notes
to violate this Article 10. 
Only the Company or a Representative may give the notice.  Nothing in this Article 10 will
impair the claims of, or payments to, the Trustee under or pursuant to Section 7.07
hereof.

 

The Trustee in
its individual or any other capacity may hold Senior Debt with the same rights
it would have if it were not Trustee. 
Any Agent may do the same with like rights.

 

Section 10.12                          Authorization
to Effect Subordination.  Each Holder
of Notes, by the Holder’s acceptance thereof, authorizes and directs the
Trustee on such Holder’s behalf to take such action as may be necessary or
appropriate to effectuate the subordination as provided in this Article 10,
and appoints the Trustee to act as such Holder’s attorney-in-fact for any and
all such purposes.  If the Trustee does
not file a proper proof of claim or proof of debt in the form required in any
proceeding referred to in Section 6.09 hereof at least 30 days
before the expiration of the time to file such claim, the Representatives are
hereby authorized to file an appropriate claim for and on behalf of the Holders
of the Notes.

 

Section 10.13                          Amendments.  The provisions of this Article 10
may not be amended, modified or waived without the written consent of the
holders of all Senior Debt.  In addition,
any amendment to, or waiver of, the provisions of this Article 10
that adversely affects the rights of the Holders of the Notes will require the
consent of the Holders of at least 75% in aggregate principal amount of Notes
then outstanding.

 

Section 10.14                          Trustee
Not Fiduciary for Holders of Senior Debt. 
The Trustee shall not be deemed to owe any fiduciary duty to the holders
of Senior Debt and shall not be liable to any such holders if the Trustee shall
in good faith mistakenly pay over or distribute to Holders of Securities or to
the Company or to any other person cash, property or securities to which any
holders of Senior Debt shall be entitled by virtue of this Article or
otherwise.  With respect to the holders
of Senior Debt, the Trustee undertakes or perform or to observe only such of
its

 

82

 

covenants or
obligations as are specifically set forth in this Article and no implied
covenants or obligations with respect to holders of Senior Debt shall be read
into this Indenture against the Trustee.

 

ARTICLE 11

SUBSIDIARY GUARANTEES

 

Section 11.01                          Guarantee.  (a)  Subject to this Article 11,
each of the Guarantors hereby, jointly and severally, unconditionally guarantees
to each Holder of a Note authenticated and delivered by the Trustee and to the
Trustee and its successors and assigns, irrespective of the validity and
enforceability of this Indenture, the Notes or the obligations of the Company
hereunder or thereunder, that:

 

(1)                                  the
principal of, premium, if any, and interest on the Notes will be promptly paid
in full when due, whether at maturity, by acceleration, redemption or
otherwise, and interest on the overdue principal of and interest on the Notes,
if any, if lawful, and all other obligations of the Company to the Holders or
the Trustee hereunder or thereunder will be promptly paid in full or performed,
all in accordance with the terms hereof and thereof; and

 

(2)                                  in
case of any extension of time of payment or renewal of any Notes or any of such
other obligations, that same will be promptly paid in full when due or
performed in accordance with the terms of the extension or renewal, whether at
stated maturity, by acceleration or otherwise.

 

Failing
payment when due of any amount so guaranteed or any performance so guaranteed
for whatever reason, the Guarantors will be jointly and severally obligated to
pay the same immediately.  Each Guarantor
agrees that this is a guarantee of payment and not a guarantee of collection.

 

(b)                                 The
Guarantors hereby agree that their obligations hereunder are unconditional,
irrespective of the validity, regularity or enforceability of the Notes or this
Indenture, the absence of any action to enforce the same, any waiver or consent
by any Holder of the Notes with respect to any provisions hereof or thereof;
the recovery of any judgment against the Company, any action to enforce the
same or any other circumstance which might otherwise constitute a legal or
equitable discharge or defense of a guarantor. 
Each Guarantor hereby waives diligence, presentment, demand of payment,
filing of claims with a court in the event of insolvency or bankruptcy of the
Company, any right to require a proceeding first against the Company, protest,
notice and all demands whatsoever and covenant that this Subsidiary Guarantee
will not be discharged except by complete performance of the obligations
contained in the Notes and this Indenture.

 

(c)                                  If
any Holder or the Trustee is required by any court or otherwise to return to
the Company, the Guarantors or any custodian, trustee, liquidator or other
similar official acting in relation to either the Company or the Guarantors,
any amount paid by either to the Trustee or

 

83

 

such Holder, this
Subsidiary Guarantee, to the extent theretofore discharged, will be reinstated
in full force and effect.

 

(d)                                 Each
Guarantor agrees that it will not be entitled to any right of subrogation in
relation to the Holders in respect of any obligations guaranteed hereby until
payment in full of all obligations guaranteed hereby.  Each Guarantor further agrees that, as
between the Guarantors, on the one hand, and the Holders and the Trustee, on
the other hand, (1) the maturity of the obligations guaranteed hereby may
be accelerated as provided in Article 6 hereof for the purposes of
this Subsidiary Guarantee, notwithstanding any stay, injunction or other
prohibition preventing such acceleration in respect of the obligations
guaranteed hereby, and (2) in the event of any declaration of acceleration
of such obligations as provided in Article 6 hereof, such
obligations (whether or not due and payable) will forthwith become due and
payable by the Guarantors for the purpose of this Subsidiary Guarantee.  The Guarantors will have the right to seek
contribution from any non-paying Guarantor so long as the exercise of such
right does not impair the rights of the Holders under the Subsidiary Guarantee.

 

Section 11.02                          Subordination
of Subsidiary Guarantee.  The
Obligations of each Guarantor under its Subsidiary Guarantee pursuant to this Article 11
will be junior and subordinated to the Senior Debt of such Guarantor on the
same basis as the Notes are junior and subordinated to Senior Debt of the
Company.  For the purposes of the
foregoing sentence, the Trustee and the Holders will have the right to receive
and/or retain payments by any of the Guarantors only at such times as they may
receive and/or retain payments in respect of the Notes pursuant to this Indenture,
including Article 10 hereof.

 

Section 11.03                          Limitation
on Guarantor Liability.  Each
Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that it
is the intention of all such parties that the Subsidiary Guarantee of such
Guarantor not constitute a fraudulent transfer or conveyance for purposes of
Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent
Transfer Act or any similar federal or state law to the extent applicable to
any Subsidiary Guarantee.  To effectuate
the foregoing intention, the Trustee, the Holders and the Guarantors hereby
irrevocably agree that the obligations of such Guarantor will be limited to the
maximum amount that will, after giving effect to such maximum amount and all
other contingent and fixed liabilities of such Guarantor that are relevant
under such laws, and after giving effect to any collections from, rights to
receive contribution from or payments made by or on behalf of any other
Guarantor in respect of the obligations of such other Guarantor under this Article 11,
result in the obligations of such Guarantor under its Subsidiary Guarantee not
constituting a fraudulent transfer or conveyance.

 

Section 11.04                          Execution
and Delivery of Subsidiary Guarantee. 
To evidence its Subsidiary Guarantee set forth in Section 11.01
hereof, each Guarantor hereby agrees that a notation of such Subsidiary
Guarantee substantially in the form attached as Exhibit B hereto
will be endorsed by an Officer of such Guarantor on each Note authenticated and
delivered by the Trustee and that this Indenture will be executed on behalf of
such Guarantor by one of its Officers.

 

84

 

Each Guarantor
hereby agrees that its Subsidiary Guarantee set forth in Section 11.01
hereof will remain in full force and effect notwithstanding any failure to
endorse on each Note a notation of such Subsidiary Guarantee.

 

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

 

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

 

In the event
that the Company or any of its Restricted Subsidiaries creates or acquires any
Domestic Subsidiary after the date of this Indenture, if required by Section 4.20
hereof, the Company will cause such Domestic Subsidiary to comply with the
provisions of Section 4.20 hereof and this Article 11,
to the extent applicable.

 

Section 11.05                          Guarantors
May Consolidate, etc., on Certain Terms.  No Guarantor may sell or otherwise dispose of
all or substantially all of its assets to, or consolidate with or merge with or
into (whether or not such Guarantor is the surviving Person) another Person,
other than the Company or another Guarantor, unless:

 

(1)                                  immediately
after giving effect to such transaction, no Default or Event of Default exists;
and

 

(2)                                  either:

 

(a)                                  the
Person acquiring the property in any such sale or disposition or the Person
formed by or surviving any such consolidation or merger assumes all the
obligations of that Guarantor under this Indenture and the Subsidiary
Guarantee, pursuant to a supplemental indenture in form and substance
reasonably satisfactory to the Trustee, on the terms set forth herein or
therein; and

 

(b)                                 the
Net Proceeds of such sale or other disposition are applied in accordance with
the applicable provisions of this Indenture.

 

In case of any
such consolidation, merger, sale or conveyance and upon the assumption by the
successor Person, by supplemental indenture, executed and delivered to the
Trustee and satisfactory in form to the Trustee, of the Subsidiary Guarantee
endorsed upon the Notes and the due and punctual performance of all of the
covenants and conditions of this Indenture to be performed by the Guarantor,
such successor Person will succeed to and be substituted for the Guarantor with
the same effect as if it had been named herein as a Guarantor.  Such successor Person thereupon may cause to
be signed any or all of the Subsidiary Guarantees to be endorsed upon all of
the Notes issuable hereunder which theretofore shall not have been signed by
the Company and delivered to the Trustee. 
All the Subsidiary Guarantees so issued will in all respects have the
same legal rank and benefit under this Indenture as the Subsidiary Guarantees
theretofore and thereafter issued in accordance with the terms of this
Indenture as though all of such Subsidiary Guarantees had been issued at the
date of the execution hereof.

 

85

 

Except as set
forth in Articles 4 and 5 hereof and notwithstanding clauses
(a) and (b) above, nothing contained in this Indenture or
in any of the Notes will prevent any consolidation or merger of a Guarantor
with or into the Company or another Guarantor, or will prevent any sale or
conveyance of the property of a Guarantor as an entirety or substantially as an
entirety to the Company or another Guarantor.

 

Section 11.06                          Releases.  (a)  In the event of any sale or other
disposition of all or substantially all of the assets of any Guarantor, by way
of merger, consolidation or otherwise, or a sale or other disposition of all of
the Capital Stock of any Guarantor, in each case in accordance with Section 4.10
hereof, then such Guarantor (in the event of a sale or other disposition, by
way of merger, consolidation or otherwise, of all of the Capital Stock of such
Guarantor) or the corporation acquiring the property (in the event of a sale or
other disposition of all or substantially all of the assets of such Guarantor)
will be released and relieved of any obligations under its Subsidiary
Guarantee; provided that the Net Proceeds of such sale or other
disposition are applied in accordance with the applicable provisions of this
Indenture, including without limitation Section 4.10 hereof.  Upon delivery by the Company to the Trustee
of an Officers’ Certificate and an Opinion of Counsel to the effect that such
sale or other disposition was made by the Company in accordance with the
provisions of this Indenture, including without limitation Section 4.10
hereof, the Trustee will execute any documents reasonably required in order to
evidence the release of any Guarantor from its obligations under its Subsidiary
Guarantee.

 

(b)                                 Upon
designation of any Guarantor as an Unrestricted Subsidiary in accordance with
the terms of this Indenture, such Guarantor will be released and relieved of
any obligations under its Subsidiary Guarantee.

 

(c)                                  Upon
Legal Defeasance in accordance with Article 8 hereof or
satisfaction and discharge of this Indenture in accordance with Article 11
hereof, each Guarantor will be released and relieved of any obligations under
its Subsidiary Guarantee.

 

(d)                                 Upon
the release of any Guarantor from its obligations as a Guarantor under the
Credit Agreement and any other Indebtedness of the Company, each Guarantor will
be released and relieved of any obligations under its Subsidiary Guarantee.

 

Any Guarantor
not released from its obligations under its Subsidiary Guarantee as provided in
this Section 11.06 will remain liable for the full amount of
principal of and interest on the Notes and for the other obligations of any
Guarantor under this Indenture as provided in this Article 11.

 

ARTICLE 12

SATISFACTION AND DISCHARGE

 

For purposes
of this series of Securities (as defined in the Base Indenture), this
Article 12 hereby amends and restates in its entirety Article Four of
the Base Indenture.

 

86

 

Section 12.01                          Satisfaction
and Discharge.  This Indenture will
be discharged and will cease to be of further effect as to all Notes issued
hereunder, when:

 

(1)                                  either:

 

(a)                                  all
Notes that have been authenticated, except lost, stolen or destroyed Notes that
have been replaced or paid and Notes for whose payment money has been deposited
in trust and thereafter repaid to the Company), have been delivered to the
Trustee for cancellation; or

 

(b)                                 all
Notes that have not been delivered to the Trustee for cancellation have become
due and payable by reason of the mailing of a notice of redemption or otherwise
or will become due and payable within one year and the Company or any Guarantor
has irrevocably deposited or caused to be deposited with the Trustee as trust
finds in trust solely for the benefit of the Holders, cash in U.S. dollars,
non-callable Government Securities, or a combination of cash in U.S. dollars
and non-callable Government Securities, in amounts as will be sufficient,
without consideration of any reinvestment of interest, to pay and discharge the
entire Indebtedness on the Notes not delivered to the Trustee for cancellation
for principal, premium, if any, and accrued interest to the date of maturity or
redemption;

 

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

 

(3)                                  the
Company or any Guarantor has paid or caused to be paid all sums payable by it
under this Indenture; and

 

(4)                                  the
Company has delivered irrevocable instructions to the Trustee under this
Indenture to apply the deposited money toward the payment of the Notes at
maturity or the redemption date, as the case may be.

 

In addition,
the Company must deliver an Officers’ Certificate and an Opinion of Counsel to
the Trustee stating that all conditions precedent to satisfaction and discharge
have been satisfied.

 

Notwithstanding
the satisfaction and discharge of this Indenture, if money has been deposited
with the Trustee pursuant to subclause (b) of clause (1) of
this Section, the provisions of Sections 12.02 and 8.06 will
survive such satisfaction and discharge. 
In addition, nothing in this Section 12.01 will be deemed to
discharge those provisions of Section 7.07 hereof, that, by their
terms, survive the satisfaction and discharge of this Indenture.

 

Section 12.02                          Application
of Trust Money.  Subject to the
provisions of Section 8.06 hereof, all money deposited with the
Trustee pursuant to Section 12.01 hereof shall be held in trust and
applied by it, in accordance with the provisions of the Notes and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own

 

87

 

Paying Agent) as
the Trustee may determine, to the Persons entitled thereto, of the principal
(and premium, if any) and interest for whose payment such money has been
deposited with the Trustee; but such money need not be segregated from other
funds except to the extent required by law.

 

If the Trustee
or Paying Agent is unable to apply any money or Government Securities in
accordance with Section 12.01 hereof by reason of any legal
proceeding or by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, the
Company’s and any Guarantor’s obligations under this Indenture and the Notes
shall be revived and reinstated as though no deposit bad occurred pursuant to Section 12.01
hereof; provided that if the Company has made any payment of principal
of, premium, if any, or interest on any Notes because of the reinstatement of
its obligations, the Company shall be subrogated to the rights of the Holders
of such Notes to receive such payment from the money or Government Securities
held by the Trustee or Paying Agent.

 

ARTICLE 13

 

MISCELLANEOUS

 

For purposes
of this series of Securities (as defined in the Base Indenture), this
Article 13 hereby amends and restates in their entirety Article Seven
and Article Fifteen of the Base Indenture.

 

Section 13.01                          Trust
Indenture Act Controls.  If any
provision of this Indenture limits, qualifies or conflicts with the duties
imposed by TIA §318(c), the imposed duties will control.

 

Section 13.02                          Notices.  Any notice or communication by the Company,
any Guarantor or the Trustee to the others is duly given if in writing and
delivered in Person or mailed by first class mail (registered or certified,
return receipt requested), telex, telecopier or overnight air courier
guaranteeing next day delivery, to the others’ address:

 

	
  If to the Company and/or any Guarantor:

  
	
   

  
	
  DRS
  Technologies, Inc.

  
	
  5 Sylvan Way

  
	
  Parsippany,
  New Jersey 07054

  
	
  Telecopier
  No.: (973) 898-1500

  
	
  Attention:
  Chief Financial Officer

  
	
   

  
	
  With a copy
  to:

  
	
   

  
	
  Skadden,
  Arps, Slate, Meagher & Flom LLP

  
	
  Four Times
  Square

  
	
  New York,
  New York 10036

  
	
  Telecopier No.:
  (212) 735-2000

  
	
  Attention:
  David J. Goldschmidt, Esq.

  

 

88

 

	
  If to the
  Trustee:

  
	
   

  
	
  The Bank of
  New York

  
	
  101 Barclay
  Street-8 West

  
	
  New York,
  New York 10286

  
	
  Telecopier
  No.: (212) 815-5707

  
	
  Attention:
  Corporate Trust Administration

  

 

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

 

All notices
and communications (other than those sent to Holders) will be deemed to have
been duly given:  at the time delivered
by hand, if personally delivered; five Business Days after being deposited in
the mail, postage prepaid, if mailed; when answered back, if telexed; when receipt
acknowledged, if telecopied; and the next Business Day after timely delivery to
the courier, if sent by overnight air courier guaranteeing next day delivery.

 

Any notice or
communication to a Holder will be mailed by first class mail, certified or
registered, return receipt requested, or by overnight air courier guaranteeing
next day delivery to its address shown on the register kept by the
Registrar.  Any notice or communication
will also be so mailed to any Person described in TIA § 313(c), to the
extent required by the TIA.  Failure to mail
a notice or communication to a Holder or any defect in it will not affect its
sufficiency with respect to other Holders.

 

If a notice or
communication is mailed in the manner provided above within the time
prescribed, it is duly given, whether or not the addressee receives it.

 

If the Company
mails a notice or communication to Holders, it will mail a copy to the Trustee
and each Agent at the same time.

 

Section 13.03                          Communication
by Holders of Notes with Other Holders of Notes.  Holders may communicate pursuant to TIA
§ 312(b) with other Holders with respect to their rights under this
Indenture or the Notes.  The Company, the
Trustee, the Registrar and anyone else shall have the protection of TIA § 312(c).

 

Section 13.04                          Certificate
and Opinion as to Conditions Precedent. 
Notwithstanding anything contained to the contrary contained in
Section 102 of the Base Indenture, upon any request or application by the
Company to the Trustee to take any action under this Indenture, the Company
shall furnish to the Trustee (except that the Opinion of Counsel referred to in
Section 13.04(2) hereof shall not be required in connection
with the Authentication Order):

 

(1)                                  an
Officers’ Certificate in form and substance reasonably satisfactory to the
Trustee (which must include the statements set forth in Section 13.05
hereof) stating that, in the opinion of the signers, all conditions precedent
and covenants, if any, provided for in this Indenture relating to the proposed
action have been satisfied; and

 

(2)                                  an
Opinion of Counsel in form and substance reasonably satisfactory to the Trustee
(which must include the statements set forth in Section 13.05
hereof) stating

 

89

 

that, in the opinion of such counsel, all such
conditions precedent and covenants have been satisfied.

 

Section 13.05                          Statements
Required in Certificate or Opinion. 
Notwithstanding anything contained to the contrary in Section 102
of the Base Indenture, each certificate or opinion with respect to compliance
with a condition or covenant provided for in this Indenture (other than a
certificate provided pursuant to TIA § 314(a)(4)) must comply with the
provisions of TIA § 314(e) and must 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 statements or opinions contained in such certificate or opinion
are based;

 

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

 

(4)                                  a
statement as to whether or not, in the opinion of such Person, such condition
or covenant has been satisfied.

 

Section 13.06                          Rules by
Trustee and Agents.  The Trustee may
make reasonable rules for action by or at a meeting of Holders.  The Registrar or Paying Agent may make
reasonable rules and set reasonable requirements for its functions.

 

Section 13.07                          No
Personal Liability of Directors, Officers, Employees and Stockholders.  No director, officer, employee, incorporator
or stockholder of the Company or any Subsidiary (other than the Company or a Guarantor
in its capacity as a stockholder of a Subsidiary), as such, will have any
liability for any obligations of the Company or the Guarantors under the Notes,
this Indenture, the Subsidiary Guarantees or for any claim based on, in respect
of, or by reason of, such obligations or their creation.  Each Holder of Notes by accepting a Note
waives and releases all such liability. 
The waiver and release are part of the consideration for issuance of the
Notes.  The waiver may not be effective
to waive liabilities under the federal securities laws.

 

Section 13.08                          Governing
Law.  THE INTERNAL LAW OF THE STATE
OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE, THE NOTES AND
THE SUBSIDIARY GUARANTEES WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS
OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION
WOULD BE REQUIRED THEREBY.

 

Section 13.09                          No
Adverse Interpretation of Other Agreements. 
This Indenture may not be used to interpret any other indenture, loan or
debt agreement of the Company or its Subsidiaries or of any other Person.  Any such indenture, loan or debt agreement
may not be used to interpret this Indenture.

 

90

 

Section 13.10                          Successors.  All agreements of the Company in this
Indenture and the Notes will bind its successors.  All agreements of the Trustee in this
Indenture will bind its successors.  All
agreements of each Guarantor in this Indenture will bind its successors, except
as otherwise provided in Section 11.06.

 

Section 13.11                          Severability.  In case any provision in this Indenture or in
the Notes is invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions will not in any way be affected or
impaired thereby.

 

Section 13.12                          Counterpart
Originals.  The parties may sign any
number of copies of this Indenture.  Each
signed copy will be an original, but all of them together represent the same
agreement.

 

Section 13.13                          Table
of Contents, Headings, etc.  The
Table of Contents, Cross-Reference Table and Headings of the Articles and
Sections of this Indenture have been inserted for convenience of reference
only, are not to be considered a part of this Indenture and will in no way
modify or restrict any of the terms or provisions hereof.

 

Section 13.14                          Supremacy.  To the extent that there exists a conflict
between the terms and conditions of this Supplemental Indenture and the terms
and conditions of the Base Indenture, the terms of this Supplemental Indenture
shall govern.

 

Section 13.15                          Force
Majeure.  In no event shall the
Trustee be responsible or liable for any failure or delay in the performance of
its obligations hereunder arising out of or caused by, directly or indirectly,
forces beyond its control, including, without limitation, strikes, work
stoppages, accidents, acts of war or terrorism, civil or military disturbances,
nuclear or natural catastrophes or acts of God, and interruptions, loss or
malfunctions of utilities, communications or computer (software and hardware)
services; it being understood that the Trustee shall use reasonable efforts
which are consistent with accepted practices in the banking industry to resume
performance as soon as practicable under the circumstances.

 

[Signatures on following page]

 

91

 

SIGNATURES

 

Dated as of
January 31, 2006

 

	
   

  	
  DRS TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard A. Schneider

  	
   

  
	
   

  	
   

  	
  Name:  Richard A. Schneider

  
	
   

  	
   

  	
  Title:    Executive VP, CFO

  
	
   

  	
   

  
	
   

  	
  NAI TECHNOLOGIES, INC.

  
	
   

  	
  DRS ELECTRONIC SYSTEMS, INC.

  
	
   

  	
  DRS SURVEILLANCE SUPPORT SYSTEMS, INC.

  
	
   

  	
  DRS TECHNICAL SERVICES, INC.

  
	
   

  	
  DRS POWER & CONTROL TECHNOLOGIES,
  INC.

  
	
   

  	
  DRS ELECTRIC POWER TECHNOLOGIES, INC.

  
	
   

  	
  DRS POWER TECHNOLOGY, INC.

  
	
   

  	
  DRS TACTICAL SYSTEMS GLOBAL SERVICES, INC.

  
	
   

  	
  DRS TACTICAL SYSTEMS, INC.

  
	
   

  	
  DRS ENGINEERING DEVELOPMENT LABS, INC.

  
	
   

  	
  DRS SIGNAL TECHNOLOGIES, INC.

  
	
   

  	
  DRS SIGNAL RECORDING TECHNOLOGIES, INC.

  
	
   

  	
  DRS SYSTEMS MANAGEMENT CORPORATION

  
	
   

  	
  DRS OPTRONICS, INC.

  
	
   

  	
  DRS SENSORS & TARGETING SYSTEMS,
  INC.

  
	
   

  	
  DRS FPA, INC.

  
	
   

  	
  DRS INFRARED TECHNOLOGIES, L.P.

  
	
   

  	
  DRS UNMANNED TECHNOLOGIES, INC.

  
	
   

  	
  DRS DATA & IMAGING SYSTEMS, INC.

  
	
   

  	
  DRS TECHNOLOGIES CANADA, INC.

  
	
   

  	
  DRS COMMUNICATIONS COMPANY, LLC

  
	
   

  	
  DRS SYSTEMS, INC.

  
	
   

  	
  NIGHT VISION EQUIPMENT CO., INC.

  
	
   

  	
  DRS TRAINING & CONTROL SYSTEMS,
  INC.

  
	
   

  	
  DRS INTERNATIONAL, INC.

  
	
   

  	
  DRS CODEM SYSTEMS, INC.

  
	
   

  	
  INTEGRATED DEFENSE TECHNOLOGIES, INC.

  
	
   

  	
  TECH-SYM CORPORATION

  
	
   

  	
  DRS TEST & ENERGY MANAGEMENT, INC.

  
	
   

  	
  DRS SIGNAL SOLUTIONS, INC.

  
	
   

  	
  DRS EW & NETWORK SYSTEMS, INC.

  
	
   

  	
  MAXCO, INC.

  

 

 

	
   

  	
  By:

  	
  /s/ Richard A. Schneider

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Richard A. Schneider

  
	
   

  	
   

  	
  Title:

  	
  Authorized Signatory

  
					

 

 

	
   

  	
  THE BANK OF
  NEW YORK

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kisha A. Holder

  	
   

  
	
   

  	
   

  	
  Name: Kisha A. Holder

  
	
   

  	
   

  	
  Title:   Assistant Vice President

  

 

 

EXHIBIT A

[Face of Note]

 

CUSIP/CINS
              

7 5/8%
Senior Subordinated Notes due 2018

 

	
  No.         

  	
  $                   

  

 

DRS
TECHNOLOGIES, INC.

 

promises to
pay to
[                       ]
or registered assigns,

 

the principal
sum
of                                                                                                                                  DOLLARS
on February 1, 2018.

 

Interest
Payment Dates:
                
and
                 

 

Record
Dates: 
                
and
                

 

Dated: 
                ,
200    

 

	
   

  	
  DRS TECHNOLOGIES, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

This is one of
the Notes referred to 

in the within-mentioned Indenture:

 

THE BANK OF NEW YORK, 

as Trustee

 

	
  By:

  	
   

  	
   

  
	
  Authorized Signatory

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  
				

 

A-1

 

Back of Note

7 5/8% Senior Subordinated Notes due 2018

 

[Insert the Global Note Legend, if applicable pursuant to the provisions
of the Indenture]

 

Capitalized
terms used herein have the meanings assigned to them in the Indenture referred
to below unless otherwise indicated.  All
section references refer to sections in the Supplemental Indenture unless
otherwise indicated.

 

(1)   INTEREST.  DRS Technologies, Inc., a Delaware
corporation (the “Company”), promises to pay interest on the principal
amount of this Note at 75/8% per annum from
January 31, 2006 until maturity. 
The Company will pay interest semi-annually in arrears on
February 1 and August 1 of each year, or if any such day is not a
Business Day, on the next succeeding Business Day (each, an “Interest
Payment Date”).  Interest on the
Notes will accrue from the most recent date to which interest has been paid or,
if no interest has been paid, from the date of issuance; provided that
if there is no existing Default in the payment of interest, and if this Note is
authenticated between a record date referred to on the face hereof and the next
succeeding Interest Payment Date, interest shall accrue from such next
succeeding Interest Payment Date; provided  further that the first
Interest Payment Date shall be August 1, 2006.  The Company will pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
principal and premium, if any, from time to time on demand at a rate that is 1%
per annum in excess of the rate then in effect; it will pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
installments of interest, if any, (without regard to any applicable grace
periods) from time to time on demand at the same rate to the extent
lawful.  Interest will be computed on the
basis of a 360-day year comprised of twelve 30-day months.

 

(2)   METHOD
OF PAYMENT.  The
Company will pay interest on the Notes (except defaulted interest) to the
Persons who are registered Holders of Notes at the close of business on the
January 15 or July 15 next preceding the Interest Payment Date, even
if such Notes are canceled after such record date and on or before such
Interest Payment Date, except as provided in Section 2.12 of the
Indenture with respect to defaulted interest. 
The Certificated Notes will be payable as to principal, or interest, and
premium, if any, by wire transfer of immediately available funds to the account
specified by the Holders of Certificated Notes, or at the Company’s option, at
the office or agency of the Paying Agent or Registrar within the City and State
of New York, unless the Company elects to make payment of interest by check
mailed to the Holders at their addresses set forth in the register of Holders; provided
that payment by wire transfer of immediately available funds will be required
with respect to principal of and interest, and premium, if any, on, all Global
Notes and all other Notes the Holders of which will have provided wire transfer
instructions to the Company or the Paying Agent.  Such payment will be in such coin or currency
of the United States of America as at the time of payment is legal tender for
payment of public and private debts.

 

(3) PAYING
AGENT AND REGISTRAR. 
Initially, The Bank of New York, the Trustee under the Indenture, will
act as Paying Agent and Registrar.  The
Company may change any Paying Agent or Registrar without notice to any
Holder.  The Company or any of its
Subsidiaries may act in any such capacity.

 

A-2

 

(4)   INDENTURE.  The Company issued the Notes under a Base
Indenture, dated as of January 31, 2006, between the Company and the
Trustee (the “Base Indenture”) as amended by a Supplemental Indenture
dated as of January 31, 2006 (the “Supplemental Indenture”, and,
together with the Base Indenture, the “Indenture”) among the Company,
the Guarantors and the Trustee.  The
terms of the Notes include those stated in the Indenture and those made part of
the Indenture by reference to the TIA (15 U.S. Code §§ 77aaa-77bbbb).  The Notes are subject to all such terms, and
Holders are referred to the Indenture and such Act for a statement of such
terms.  To the extent any provision of
this Note conflicts with the express provisions of the Indenture, the
provisions of the Indenture shall govern and be controlling.  The Notes are unsecured obligations of the
Company.  To the extent any provision of
the Supplemental Indenture conflicts with any provision Supplemental Indenture,
the Base Indenture shall govern and be controlling.

 

(5)   OPTIONAL
REDEMPTION.  (a)  Except as set forth in subparagraphs (a) and
(c) of this Paragraph 5, the Company will not have the option to
redeem the Notes prior to February 1, 2011.  At any time prior to February 1, 2011,
the Company may redeem all or part of the Notes for cash upon not less than 30
nor more than 60 days’ notice at redemption price equal to the greater of
(1) 100% of the principal amount of Notes being redeemed and (2) the
sum of the present values of 103.813% of the principal amount of the Notes
being redeemed and scheduled payments of interest on the Notes to, but not
including, February 1, 2011 discounted to the date of redemption on a
semi-annual basis (assuming a 360-day year consisting of twelve 30-day months)
at the Treasury Rate plus 50 basis points, together in the case of (1) and
(2) above, with accrued and unpaid interest, if any, to but not including
the date of redemption.

 

(b)  On
or after February 1, 2009, the Company may redeem all or a part of the
Notes upon not less than 30 not more than 60 days’ notice at the redemption
prices (expressed as percentages of principal amount) set forth below plus
accrued and unpaid interest, if any on the Notes redeemed, to, but excluding,
the applicable redemption date, if redeemed during the twelve-month period
beginning on February 1 of the years indicated below:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
  2011

  	
   

  	
  103.813

  	
  %

  
	
  2012

  	
   

  	
  102.542

  	
  %

  
	
  2013

  	
   

  	
  101.271

  	
  %

  
	
  2014 and
  thereafter

  	
   

  	
  100.000

  	
  %

  

 

(c)                                  Notwithstanding
the provisions of subparagraphs (a) and (b) of this
Paragraph 5, at any time prior to February 1, 2009, the Company may on any
one or more occasions redeem up to 35% of the aggregate principal amount of
Notes (including any Additional Notes issued after January 31, 2006) at a
redemption price of 107.625% of principal amount thereof; plus accrued and
unpaid interest, if any, to, but excluding, the redemption date, with the net
cash proceeds of one or more Equity Offerings provided that at least 65%
of the aggregate principal amount of the Notes originally issued under the
Indenture (excluding Notes held by the Company and its Subsidiaries) remains
outstanding immediately after the occurrence of such redemption and that such
redemption occurs within 120 days of the date of the closing of such Equity
Offering.

 

A-3

 

Except
pursuant to the preceding two paragraphs, the Notes will not be redeemable at
the Company’s option prior to February 1, 2011.

 

Unless the
Company defaults in the payment of the redemption price, interest will cease to
accrue on the Notes or portions thereof called for redemption on the applicable
redemption date.

 

(6)   MANDATORY
REDEMPTION.  The
Company will not be required to make mandatory redemption or sinking fund
payments with respect to the Notes.

 

(7)   REPURCHASE
AT THE OPTION OF HOLDER.  (a)  If there is a Change of Control, the Company
will be required to make an offer (a “Change of Control Offer”) to
repurchase all or any part (equal to $1,000 or an integral multiple thereof) of
each Holder’s Notes at a purchase price equal to 101% of the aggregate
principal amount thereof plus accrued and unpaid interest, if any, to, but
excluding, the date of purchase subject to the rights of Noteholders on the
relevant record date to receive interest due on the relevant interest payment
date (the “Change of Control Payment”). 
Within 30 days following any Change of Control, the Company will mail a
notice to each Holder setting forth the procedures governing the Change of
Control Offer as required by the Indenture.

 

(b)                                 If
the Company or a Restricted Subsidiary of the Company consummates any Asset
Sales, on which the aggregate amount of Excess Proceeds exceeds $25.0 million,
the Company will commence an offer to all Holders of Notes and all holders of
other Indebtedness that is pari passu with
the Notes containing provisions similar to those set forth in the Indenture
with respect to offers to purchase or redeem with the proceeds of sales of
assets (an “Asset Sale Offer”) pursuant to Section 3.09 of
the Indenture to purchase the maximum principal amount of Notes and other pari passu Indebtedness that may be purchased out of the
Excess Proceeds at an offer price in cash in an amount equal to 100% of the
principal amount thereof plus accrued and unpaid interest, if any, to, but
excluding, the date of purchase, in accordance with the procedures set forth in
the Indenture.  With respect to any Asset
Sale Offer, the Excess Proceeds shall be applied (i) first to purchase or
redeem the maximum principal amount of Senior Notes and such other pari passu Indebtedness and (ii) second, if any Excess
Proceeds remain following such purchase or redemption, to purchase or redeem
the maximum principal amount of Senior Subordinated Notes and such other pari passu Indebtedness. 
To the extent that the aggregate amount of Notes and other pari passu Indebtedness tendered pursuant to an Asset Sale
Offer is less than the Excess Proceeds, the Company (or such Restricted
Subsidiary) may use such deficiency for any purpose not otherwise prohibited by
the Indenture.  If the aggregate
principal amount of Senior Notes and other Indebtedness pari
passu with the Senior Notes tendered
into such Asset Sale Offer exceeds the amount of Excess Proceeds, the trustee
will select the Senior Notes and such other Indebtedness pari
passu with the Senior Notes to be
purchased on a pro  rata basis. 
If the aggregate principal amount of Notes and such other Indebtedness pari  passu with the
Notes tendered into such Asset Sale Offer exceeds the amount of Excess Proceeds
following the purchase in full of all of the Senior Notes and such other
Indebtedness pari  passu with
the Senior Notes, the Trustee will select the Notes and such other Indebtedness
pari  passu with the
Notes to be purchased on a pro rata
basis.  Holders of Notes that are the
subject of an offer to purchase will receive an Asset Sale Offer from the
Company prior to any related

 

A-4

 

purchase date and may elect to have such Notes purchased by completing
the form entitled “Option of Holder to Elect Purchase” attached to the Notes.

 

(8)   NOTICE
OF REDEMPTION.  Notice
of redemption will be mailed at least 30 days but not more than 60 days before
the redemption date to each Holder whose Notes are to be redeemed at its
registered address, except that redemption notices may be mailed more than 60
days prior to a redemption date if the notice is issued in connection with a
defeasance of the Notes or a satisfaction or discharge of the Indenture.  Notes in denominations larger than $1,000 may
be redeemed in part but only in whole multiples of $1,000, unless all of the
Notes held by a Holder are to be redeemed. 
On and after the redemption date interest ceases to accrue on Notes or
portions thereof called for redemption.

 

(9)   DENOMINATIONS,
TRANSFER, EXCHANGE. 
The Notes are in registered form without coupons in denominations of
$1,000 and integral multiples of $1,000. 
The transfer of Notes may be registered and Notes may be exchanged as
provided in the Indenture.  The Registrar
and the Trustee may require a Holder, among other things, to furnish
appropriate endorsements and transfer documents and the Company may require a
Holder to pay any taxes and fees required by law or permitted by the
Indenture.  The Company need not exchange
or register the transfer of any Note or portion of a Note selected for
redemption, except for the unredeemed portion of any Note being redeemed in
part.  Also, the Company need not
exchange or register the transfer of any Notes for a period of 15 days before a
selection of Notes to be redeemed or during the period between a record date
and the corresponding Interest Payment Date.

 

(10)   PERSONS
DEEMED OWNERS.  The
registered Holder of a Note may be treated as its owner for all purposes.

 

(11) 
AMENDMENT, SUPPLEMENT AND WAIVER.  Subject to certain exceptions, the Indenture,
the Subsidiary Guarantees or the Notes may be amended or supplemented with the
consent of the Holders of at least a majority in principal amount of the then
outstanding Notes including, without limitation, Additional Notes, if any then
outstanding voting as a single class, and any existing Default or Event of
Default or compliance with any provision of the Indenture, the Subsidiary Guarantees
or the Notes may be waived with the consent of the Holders of a majority in
principal amount of the then outstanding Notes and Additional Notes, if any,
voting as a single class.  Without the
consent of any Holder of a Note, the Indenture, the Subsidiary Guarantees or
the Notes may be amended or supplemented to cure any ambiguity, mistake, defect
or inconsistency; to provide for uncertificated Notes in addition to or in
place of Certificated Notes; to provide for the assumption of the Company’s or
any Guarantor’s obligations to Holders of Notes and Subsidiary Guarantees in
the case of a merger or consolidation or sale of all or substantially all of
the Company’s or such Guarantor’s assets, as applicable; to make any change
that would provide any additional rights or benefits to the Holders of the
Notes or that does not materially adversely affect the legal rights under the
Indenture of any such Holder as determined by the Board of Directors of the
Company; to comply with the requirements of the SEC in order to effect or
maintain the qualification of the Indenture under the TIA; to add additional
Guarantees with respect to the Notes or release Guarantors from Subsidiary
Guarantees as provided or permitted by the terms of the Indenture; to conform
the text of the Indenture; or the Notes to any provision of the “Description of
Notes” section of the Company’s Prospectus Supplement dated
January 23, 2006, relating to the initial offering of the Notes, to the
extent that

 

A-5

 

such provision in that “Description of Notes” was intended to be a
verbatim recitation of a provision of the Indenture, the Subsidiary Guarantees
or the Notes.

 

(12) 
DEFAULTS AND REMEDIES.  Events of Default include:  (i) default for 30 days in the payment
when due of interest with respect to the Notes whether or not prohibited by the
subordination provisions of the Indenture; (ii) default in payment when
due of principal of or premium, if any, on the Notes, whether or not prohibited
by the subordination provisions of the Indenture; (iii) failure by the
Company to comply with Sections 4.15 or 5.01 of the Indenture;
(iv) failure by the Company or any of its Restricted Subsidiaries to
comply with Sections 4.07 or 4.09 of the Indenture for 30 days
after notice to comply with such provisions; (v) failure by the Company
for 60 days after notice to the Company to comply with certain other agreements
in the Indenture; (vi) default under certain other agreements relating to
Indebtedness of the Company which default results in the acceleration of such
Indebtedness prior to its express maturity; (vii) certain final judgments
for the payment of money aggregating in excess of $25.0 million that remain
undischarged for is period of 60 days (to the extent not covered by independent
third-party insurance as to which the insurer does not dispute coverage);
(viii) certain events of bankruptcy or insolvency with respect to the
Company or any of its Restricted Subsidiaries that is a Significant Subsidiary
or any group of Restricted Subsidiaries that, when taken together, would
constitute a Significant Subsidiary.  If
any Event of Default occurs and is continuing, the Trustee or the Holders of at
least 25% of the aggregate principal amount of the then outstanding Notes may
declare all the Notes to be due and payable. 
Notwithstanding the foregoing, in the case of an Event of Default
arising from certain events of bankruptcy or insolvency with respect to the
Company, any Restricted Subsidiary that is a Significant Subsidiary or any
group of Restricted Subsidiaries that, taken together, would constitute a
Significant Subsidiary, all outstanding Notes will become due and payable
without further action or notice. 
Holders may not enforce the Indenture or the Notes except as provided in
the Indenture.  Subject to certain
limitations, the Holders of a majority in principal amount of the then
outstanding Notes may direct the Trustee in its exercise of any trust or power.  The Trustee may withhold from Holders of the
Notes notice of any continuing Default or Event of Default, except a Default or
Event of Default relating to the payment of principal or interest, if it
determines that withholding notice is in their interest.  The Holders of a majority in aggregate
principal amount of the Notes then outstanding by notice to the Trustee may on
behalf of the Holders of all of the Notes waive any existing Default or Event
of Default and its consequences under the Indenture except a continuing Default
or Event of Default in the payment of interest on or premium, or the principal
of, the Notes.  The Company is required
to deliver to the Trustee annually a statement regarding compliance with the
Indenture, and the Company is required upon becoming aware of any Default or
Event of Default, to deliver to the Trustee a statement specifying such Default
or Event of Default.

 

(13) 
SUBORDINATION.  Payment of principal or interest, and
premium, if any, on the Notes is subordinated to the prior payment of Senior
Debt on the terms provided in the Indenture.

 

(14) 
TRUSTEE DEALINGS WITH COMPANY.  The Trustee, in its individual or any other
capacity, may make loans to, accept deposits from, and perform services for the
Company or its Affiliates, and may otherwise deal with the Company or its
Affiliates, as if it were not the Trustee.

 

A-6

 

(15) 
NO RECOURSE AGAINST OTHERS.  A director, officer, employee, incorporator
or stockholder, of the Company or any Subsidiary (other than the Company or a
Guarantor in its capacity as a Stockholder of the Subsidiary), as such, will
not have any liability for any obligations of the Company or the Guarantors
under the Notes, the Subsidiary Guarantees or the Indenture or for any claim
based on, in respect of, or by reason of, such obligations or their
creation.  Each Holder by accepting a
Note waives and releases all such liability. 
The waiver and release are part of the consideration for the issuance of
the Notes.

 

(16) 
AUTHENTICATION.  This Note will not be valid until authenticated
by the manual signature of the Trustee or an authenticating agent.

 

(17) 
ABBREVIATIONS.  Customary abbreviations may be used in the
name of a Holder or an assignee, such as: 
TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT
TEN (= joint tenants with right of survivorship and not as tenants in common),
CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

 

(18) 
CUSIP NUMBERS.  Pursuant to a recommendation promulgated by
the Committee on Uniform Security Identification Procedures, the Company has
caused CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP
numbers in notices of redemption as a convenience to Holders.  No representation is made as to the accuracy
of such numbers either as printed on the Notes or as contained in any notice of
redemption and reliance may be placed only on the other identification numbers
placed thereon.

 

The Company
will furnish to any Holder upon written request and without charge a copy of
the Indenture.  Requests may be made to:

 

	
  DRS Technologies, Inc.

  
	
  5 Sylvan Way

  
	
  Parsippany, New Jersey 07054

  
	
  Attention: Chief Financial Officer

  

 

A-7

 

ASSIGNMENT FORM

 

To assign this
Note, fill in the form below:

 

	
  (I) or (we)
  assign and transfer this Note to:

  	
   

  
	
  (Insert assignee’s legal name)

  
	
   

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

  
	
   

  
	
   

  
	
   

  
	
   

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

  
	
   

  
	
  and
  irrevocably appoint

  	
   

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

  
			

 

	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Your
  Signature:

  	
   

  
	
  (Sign exactly as your name
  appears on the face of this Note)

  

 

 

	
  Signature
  Guarantee*:

  	
   

  	
   

  

 

*                                         Participant
in a recognized Signature Guarantee Medallion Program (or other signature
guarantor acceptable to the Trustee).

 

A-8

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you want to
elect to have this Note purchased by the Company pursuant to Section 4.10
or 4.15 of the Indenture, check the appropriate box below:

 

o  Section 4.10                 o
Section 4.15

 

If you want to
elect to have only part of the Note purchased by the Company pursuant to Section 4.10
or Section 4.15 of the Indenture, state the amount you elect to
have purchased:

 

$                   

 

Date:                         

 

	
   

  	
  Your
  Signature:

  	
   

  
	
   

  	
  (Sign exactly as your name appears on the face of
  this Note)

  
	
   

  	
   

  
	
   

  	
  Tax
  Identification No.:

  	
   

  
	
   

  
	
  Signature
  Guarantee*:

  	
   

  	
   

  
						

 

*                                         Participant
in a recognized Signature Guarantee Medallion Program (or other signature
guarantor acceptable to the Trustee).

 

A-9

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE*

 

The following
exchanges of a part of this Global Note for an interest in another Global Note or
for a Certificated Note, or exchanges of a part of another Global Note or
Certificated Note for an interest in this Global Note, have been made:

 

	
  Date of Exchange

  	
   

  	
  Amount of

  decrease in

  Principal Amount

  at maturity of 

  this Global Note

  	
   

  	
  Amount of increase

  in Principal

  Amount at

  maturity of 

  this Global Note

  	
   

  	
  Principal Amount

  at maturity of this

  Global Note

  following such

  decrease

  (or increase)

  	
   

  	
  Signature of

  authorized officer

  of Trustee or

  Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

* This schedule should be included only if
the Note is issued in global form.

 

A-10

 

EXHIBIT B

 

FORM OF NOTATION OF GUARANTEE

 

For value
received, each Guarantor (which term includes any successor Person under the
Indenture) has, jointly and severally, unconditionally guaranteed, to the
extent set forth in the Indenture and subject to the provisions in the Base
Indenture, dated as of January 31, 2006, between the Company and the Bank
of New York, as trustee (the “Trustee” as supplemented by a Supplemental
Indenture dated as of January 31, 2006 (the “Supplemental Indenture”
and, together with the Base Indenture, the “Indenture”) among DRS
Technologies, Inc., (the “Company”, the Guarantors party thereto
and The Bank of New York, as trustee (the “Trustee”), (a) the due
and punctual payment of the principal of, premium, if any, and interest on, the
Notes, whether at maturity, by acceleration, redemption or otherwise, the due
and punctual payment of interest on overdue principal of and interest on the
Notes, if any, if lawful, and the due and punctual performance of all other
obligations of the Company to the Holders or the Trustee all in accordance with
the terms of the Indenture and (b) in case of any extension of time of
payment or renewal of any Notes or any of such other obligations, that the same
will be promptly paid in full when due or performed in accordance with the
terms of the extension or renewal, whether at stated maturity, by acceleration
or otherwise.  The obligations of the
Guarantors to the Holders of Notes and to the Trustee pursuant to the
Subsidiary Guarantee and the Supplemental Indenture are expressly set forth in Article 11
of the Supplemental Indenture and reference is hereby made to the Indenture for
the precise terms of the Subsidiary Guarantee. 
Each Holder of a Note, by accepting the same, (a) agrees to and
shall be bound by such provisions (b) authorizes and directs the Trustee,
on behalf of such Holder, to take such action as may be necessary or
appropriate to effectuate the subordination as provided in the Indenture and
(c) appoints the Trustee attorney-in-fact of such Holder for such purpose;
provided, however, that the Indebtedness evidenced by this
Subsidiary Guarantee shall cease to be so subordinated and subject in right of
payment upon any defeasance of this Note in accordance with the provisions of
the Indenture.

 

Capitalized
terms used but not defined herein have the meanings given to them in the
Supplemental Indenture.

 

[Signature Page Follows]

 

B-1

 

	
   

  	
  [NAME OF GUARANTOR(S)]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   Title:

  

 

B-2

 

EXHIBIT C

 

FORM OF SUPPLEMENTAL INDENTURE

TO BE DELIVERED BY SUBSEQUENT GUARANTORS

 

SUPPLEMENTAL
INDENTURE (this “Supplemental Indenture”), dated as of
               ,
200    , among
                          
(the “Guaranteeing Subsidiary”), a subsidiary of DRS
Technologies, Inc. (or its permitted successor), a Delaware corporation
(the “Company”), the Company, the other Guarantors (as defined in the
Indenture referred to herein) and The Bank of New York, as trustee under the
Indenture referred to below (the “Trustee”).

 

WITNESSETH

 

WHEREAS, the
Company has heretofore executed and delivered to the Trustee a Base Indenture,
dated as of January31, 2006 (the “Base Indenture”) as supplemented by a
Supplemental Indenture (the “Supplemental Indenture” and, together with
the Base Indenture, the “Indenture”), dated as of January 31, 2006
providing for the issuance of 7 5/8% Senior Subordinated
Notes due 2018 (the “Notes”);

 

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

 

WHEREAS,
pursuant to Section 9.01 of the Indenture, the Trustee is
authorized to execute and deliver this Supplemental Indenture.

 

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

 

1.                                       CAPITALIZED
TERMS.  Capitalized terms used herein
without definition shall have the meanings assigned to them in the Indenture.

 

2.                                       AGREEMENT
TO GUARANTEE.  The Guaranteeing
Subsidiary hereby agrees to provide an unconditional Guarantee on the terms and
subject to the conditions set forth in the Subsidiary Guarantee and in the
Indenture including but not limited to Article 11 thereof.

 

4.                                       NO
RECOURSE AGAINST OTHERS.  No past,
present or future director, officer, employee, incorporator, stockholder or
agent of the Guaranteeing Subsidiary (other than the Company or a Guarantor in
its capacity as a Stockholder of a Subsidiary), as such, shall have any
liability for any obligations of the Company or any Guaranteeing Subsidiary
under the Notes, any Subsidiary Guarantees, the Indenture or this Supplemental
Indenture or for any claim based on, in respect of or by reason of, such
obligations or their creation.  Each
Holder of the Notes by accepting a Note waives and releases all such
liability.  The waiver and release are
part of the consideration for issuance of the Notes.  Such waiver may not be effective to waive
liabilities under the federal securities laws and it is the view of the SEC
that such a waiver is against public policy.

 

C-1

 

5.                                       NEW
YORK LAW TO GOVERN.  THE INTERNAL LAW OF
THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL
INDENTURE BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF
LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION
WOULD BE REQUIRED THEREBY.

 

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

 

7.                                       EFFECT
OF HEADINGS.  The Section headings
herein are for convenience only and shall not affect the construction hereof.

 

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

 

C-2

 

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

 

Dated:                   ,20      

 

 

	
   

  	
  [GUARANTEEING SUBSIDIARY]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DRS TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [EXISTING GUARANTORS]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized SignatoryExhibit 4.3

 

EXECUTION COPY

 

DRS TECHNOLOGIES, INC.,

 

as Issuer

 

 

EACH OF
THE GUARANTORS PARTY HERETO,

 

as
Guarantors

 

AND

 

 

THE BANK
OF NEW YORK,

 

as Trustee

 

 

2.00%
Convertible Senior Notes due 2026

 

 

INDENTURE

 

Dated as
of January 31, 2006

 

 

CROSS-REFERENCE TABLE*

 

	
  Trust Indenture

  Act Section

  	
   

  	
  Indenture Section

  
	
  310

  	
  (a)(1)

  	
   

  	
  9.10

  
	
   

  	
  (a)(2)

  	
   

  	
  9.10

  
	
   

  	
  (a)(3)

  	
   

  	
  N.A.

  
	
   

  	
  (a)(4)

  	
   

  	
  N.A.

  
	
   

  	
  (a)(5)

  	
   

  	
  9.10

  
	
   

  	
  (b)

  	
   

  	
  9.10

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  311

  	
  (a)

  	
   

  	
  9.11

  
	
   

  	
  (b)

  	
   

  	
  9.11

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  312

  	
  (a)

  	
   

  	
  2.5

  
	
   

  	
  (b)

  	
   

  	
  15.3

  
	
   

  	
  (c)

  	
   

  	
  15.3

  
	
  313

  	
  (a)

  	
   

  	
  9.6

  
	
   

  	
  (b)(2)

  	
   

  	
  9.6; 9.7

  
	
   

  	
  (c)

  	
   

  	
  9.6

  
	
   

  	
  (d)

  	
   

  	
  9.6

  
	
  314

  	
  (a)

  	
   

  	
  6.2; 15.2; 15.5

  
	
   

  	
  (c)(1)

  	
   

  	
  15.4

  
	
   

  	
  (c)(2)

  	
   

  	
  15.4

  
	
   

  	
  (c)(3)

  	
   

  	
  N.A.

  
	
   

  	
  (e)

  	
   

  	
  15.5

  
	
   

  	
  (f)

  	
   

  	
  N.A.

  
	
  315

  	
  (a)

  	
   

  	
  9.1

  
	
   

  	
  (b)

  	
   

  	
  9.5,15.2

  
	
   

  	
  (c)

  	
   

  	
  9.1

  
	
   

  	
  (d)

  	
   

  	
  9.1

  
	
   

  	
  (e)

  	
   

  	
  8.11

  
	
  316

  	
  (a)(last
  sentence)

  	
   

  	
  2.8

  
	
   

  	
  (a)(1)(A)

  	
   

  	
  8.5

  
	
   

  	
  (a)(1)(B)

  	
   

  	
  8.4

  
	
   

  	
  (a)(2)

  	
   

  	
  N.A.

  
	
   

  	
  (b)

  	
   

  	
  8.7

  
	
   

  	
  (c)

  	
   

  	
  6.1

  
	
  317

  	
  (a)(1)

  	
   

  	
  8.8

  
	
   

  	
  (a)(2)

  	
   

  	
  8.9

  
	
   

  	
  (b)

  	
   

  	
  2.4

  
	
  318

  	
  (a)

  	
   

  	
  N.A.

  
	
   

  	
  (b)

  	
   

  	
  N.A.

  
	
   

  	
  (c)

  	
   

  	
  15.1

  

 

N.A. means not applicable.

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

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE I            DEFINITIONS
  AND INCORPORATION BY REFERENCE

  	
  1

  
	
   

  	
   

  
	
   

  	
  Section 1.1

  	
  Definitions

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 1.2

  	
  Incorporation by
  Reference of Trust Indenture Act

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 1.3

  	
  Rules of
  Construction

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 1.4

  	
  Acts of Holders

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II           THE
  SECURITIES

  	
  14

  
	
   

  	
   

  
	
   

  	
  Section 2.1

  	
  Form and Dating

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.2

  	
  Execution and
  Authentication

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.3

  	
  Registrar, Paying
  Agent, and Conversion Agent

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.4

  	
  Paying Agent to Hold
  Assets in Trust

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.5

  	
  Holder Lists

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.6

  	
  Transfer and Exchange

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.7

  	
  Replacement Securities

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.8

  	
  Outstanding Securities;
  Determinations of Holders’ Action

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.9

  	
  Temporary Securities

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.10

  	
  Cancellation

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.11

  	
  Persons Deemed Owners

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.12

  	
  Additional Transfer and
  Exchange Requirements

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.13

  	
  CUSIP Numbers

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III          REDEMPTION
  OF SECURITIES

  	
  26

  
	
   

  	
   

  
	
   

  	
  Section 3.1

  	
  The Company’s Right to
  Redeem; Make-Whole Premium; Notice to Trustee

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.2

  	
  Selection of Securities
  to Be Redeemed

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.3

  	
  Notice of Redemption

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.4

  	
  Effect of Notice of
  Redemption

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.5

  	
  Deposit of Redemption
  Price

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.6

  	
  Securities Redeemed in
  Part

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.7

  	
  Repayment to the
  Company

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.8

  	
  No Sinking Fund

  	
  29

  

 

i

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE IV          PURCHASE
  AT THE OPTION OF HOLDERS ON SPECIFIC DATES

  	
  30

  
	
   

  	
   

  
	
   

  	
  Section 4.1

  	
  Optional Put

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.2

  	
  Effect of Purchase
  Notice; Withdrawal of Purchase Notice

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.3

  	
  Deposit of Purchase
  Price

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.4

  	
  Securities Purchased in
  Part

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.5

  	
  Covenant to Comply With
  Securities Laws Upon Purchase of Securities

  	
  34

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.6

  	
  Repayment to the
  Company

  	
  34

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.7

  	
  No Purchase Upon Event
  of Default

  	
  34

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V           PURCHASE
  AT THE OPTION OF HOLDERS UPON A FUNDAMENTAL CHANGE

  	
  34

  
	
   

  	
   

  
	
   

  	
  Section 5.1

  	
  Fundamental Change Put

  	
  34

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.2

  	
  Effect of Fundamental
  Change Purchase Notice; Withdrawal of Fundamental Change Purchase Notice

  	
  37

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.3

  	
  Deposit of Fundamental
  Change Purchase Price

  	
  38

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.4

  	
  Securities Purchased in
  Part

  	
  39

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.5

  	
  Covenant to Comply With
  Securities Laws Upon Purchase of Securities

  	
  39

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.6

  	
  Repayment to the
  Company

  	
  39

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI          COVENANTS

  	
  40

  
	
   

  	
   

  
	
   

  	
  Section 6.1

  	
  Payment of Securities

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.2

  	
  SEC and Other Reports
  to the Trustee

  	
  41

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.3

  	
  Compliance Certificate

  	
  41

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.4

  	
  Further Instruments and
  Acts

  	
  42

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.5

  	
  Maintenance of Office
  or Agency of the Trustee, Registrar, Paying Agent and Conversion Agent

  	
  42

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.6

  	
  Delivery of Information
  Required Under Rule 144A

  	
  42

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.7

  	
  Waiver of Stay,
  Extension or Usury Laws

  	
  43

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.8

  	
  Statement by Officers
  as to Default

  	
  43

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.9

  	
  Additional Interest

  	
  43

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.10

  	
  Additional Subsidiary
  Guarantees

  	
  44

  

 

ii

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.11

  	
  Contingent Debt Tax
  Treatment

  	
  44

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII        SUCCESSOR
  CORPORATION

  	
  45

  
	
   

  	
   

  
	
   

  	
  Section 7.1

  	
  When Company
  May Merge or Transfer Assets

  	
  45

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII       DEFAULTS
  AND REMEDIES

  	
  46

  
	
   

  	
   

  
	
   

  	
  Section 8.1

  	
  Events of Default

  	
  46

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.2

  	
  Acceleration

  	
  48

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.3

  	
  Other Remedies

  	
  48

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.4

  	
  Waiver of Past
  Defaults; Rescission of Acceleration

  	
  48

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.5

  	
  Control by Majority

  	
  49

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.6

  	
  Limitation on Suits

  	
  49

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.7

  	
  Rights of Holders to
  Receive Payment or to Convert

  	
  50

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.8

  	
  Collection Suit by
  Trustee

  	
  50

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.9

  	
  Trustee May File
  Proofs of Claim

  	
  50

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.10

  	
  Priorities

  	
  51

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.11

  	
  Undertaking for Costs

  	
  51

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX         TRUSTEE

  	
  51

  
	
   

  	
   

  
	
   

  	
  Section 9.1

  	
  Duties of Trustee

  	
  51

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.2

  	
  Rights of Trustee

  	
  52

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.3

  	
  Individual Rights of
  Trustee

  	
  53

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.4

  	
  Trustee’s Disclaimer

  	
  54

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.5

  	
  Notice of Defaults

  	
  54

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.6

  	
  Reports by Trustee to
  Holders of the Securities

  	
  54

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.7

  	
  Compensation and
  Indemnity

  	
  54

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.8

  	
  Replacement of Trustee

  	
  55

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.9

  	
  Successor Trustee by
  Merger, etc

  	
  56

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.10

  	
  Eligibility;
  Disqualification

  	
  56

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.11

  	
  Preferential Collection
  of Claims Against Company

  	
  56

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X           DISCHARGE
  OF INDENTURE

  	
  56

  
	
   

  	
   

  
	
   

  	
  Section 10.1

  	
  Discharge of Liability
  on Securities

  	
  56

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.2

  	
  Deposited Monies to Be
  Held in Trust by Trustee

  	
  57

  

 

iii

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.3

  	
  Repayment to the
  Company

  	
  57

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI         AMENDMENTS

  	
  57

  
	
   

  	
   

  
	
   

  	
  Section 11.1

  	
  Without Consent of
  Holders of Securities

  	
  57

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.2

  	
  With Consent of Holders
  of Securities

  	
  59

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.3

  	
  Compliance with Trust
  Indenture Act

  	
  60

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.4

  	
  Revocation and Effect
  of Consents, Waivers and Actions

  	
  60

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.5

  	
  Notation on or Exchange
  of Securities

  	
  60

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.6

  	
  Trustee to Sign
  Supplemental Indentures

  	
  60

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.7

  	
  Effect of Supplemental
  Indentures

  	
  61

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.8

  	
  Waiver

  	
  61

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XII        CONVERSION

  	
  61

  
	
   

  	
   

  
	
   

  	
  Section 12.1

  	
  Conversion Right

  	
  61

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 12.2

  	
  Conversion Procedures;
  Conversion Rate; Fractional Shares

  	
  64

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 12.3

  	
  Adjustment of
  Conversion Rate

  	
  67

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 12.4

  	
  Consolidation or Merger
  of the Company

  	
  74

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 12.5

  	
  Notice of Adjustment

  	
  75

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 12.6

  	
  Notice in Certain
  Events

  	
  75

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 12.7

  	
  Company To Reserve
  Stock; Listing; Corporate Action

  	
  76

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 12.8

  	
  Taxes on Conversion

  	
  77

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 12.9

  	
  Conversion After Record
  Date

  	
  77

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 12.10

  	
  Company Determination
  Final

  	
  78

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 12.11

  	
  Responsibility of
  Trustee for Conversion Provisions

  	
  78

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 12.12

  	
  Conversion in
  Connection with a Public Acquirer Change of Control

  	
  78

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 12.13

  	
  Payment Upon Conversion

  	
  79

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIII       SUBSIDIARY
  GUARANTEES

  	
  80

  
	
   

  	
   

  
	
   

  	
  Section 13.1

  	
  Guarantee

  	
  80

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.2

  	
  Limitation on Guarantor
  Liability

  	
  81

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.3

  	
  Execution and Delivery
  of Subsidiary Guarantee

  	
  82

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.4

  	
  Guarantors
  May Consolidate, etc., on Certain Terms

  	
  82

  

 

iv

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.5

  	
  Releases

  	
  83

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIV       CONTINGENT
  INTEREST

  	
  83

  
	
   

  	
   

  
	
   

  	
  Section 14.1

  	
  Contingent Interest

  	
  83

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 14.2

  	
  Payment of Contingent
  Interest

  	
  84

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 14.3

  	
  Contingent Interest
  Notification

  	
  84

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XV        MISCELLANEOUS

  	
  84

  
	
   

  	
   

  
	
   

  	
  Section 15.1

  	
  Trust Indenture Act
  Controls

  	
  84

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 15.2

  	
  Notices

  	
  84

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 15.3

  	
  Communication by
  Holders with Other Holders

  	
  85

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 15.4

  	
  Certificate and Opinion
  as to Conditions Precedent

  	
  85

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 15.5

  	
  Statements Required in
  Certificate or Opinion

  	
  86

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 15.6

  	
  Rules by Trustee,
  Paying Agent, Conversion Agent, Registrar

  	
  86

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 15.7

  	
  No Personal Liability
  of Directors, Officers, Employees and Stockholders

  	
  86

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 15.8

  	
  Governing Law

  	
  87

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 15.9

  	
  No Adverse
  Interpretation of Other Agreements

  	
  87

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 15.10

  	
  Successors

  	
  87

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 15.11

  	
  Severability

  	
  87

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 15.12

  	
  Counterpart Originals

  	
  87

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 15.13

  	
  Table of Contents,
  Headings, etc

  	
  87

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 15.14

  	
  Force Majeure

  	
  87

  
	
   

  	
   

  	
   

  	
   

  
	
   

  
	
  EXHIBIT A

  	
  Form of Security

  	
   

  
	
  EXHIBIT B

  	
  Form of Notation of Subsidiary
  Guarantee

  	
   

  
	
  EXHIBIT C

  	
  Form of Certificate to be Delivered by
  Transferee in Connection with Transfers to Institutional Accredited Investors

  	
   

  
	
  EXHIBIT D

  	
  Form of Restrictive Legend for Common
  Stock Issues Upon Conversion

  	
   

  
	
  EXHIBIT E

  	
  Form of Supplemental Indenture

  	
   

  
	
  SCHEDULE I

  	
  Conversion Rate Adjustment Table

  	
   

  
					

 

v

 

INDENTURE, dated as of January 31,
2006, among DRS TECHNOLOGIES, INC., a Delaware corporation (the “Company”), the Guarantors (as defined
below) and THE BANK OF NEW YORK., a New York banking corporation, as trustee
(the “Trustee”).

 

RECITALS OF THE COMPANY

 

WHEREAS, the Company
has duly authorized the creation of an issue of its 2.00% Convertible Senior
Notes due 2026 (the “Securities”)
having the terms, tenor, amount and other provisions hereinafter set forth.

 

WHEREAS, all things
necessary to make the Securities, when the Securities are duly executed by the
Company and authenticated and delivered hereunder and duly issued by the
Company, the valid obligations of the Company, and to make this Indenture a
valid and binding agreement of the Company, in accordance with their and its
terms, have been done and performed in all respects.

 

NOW,
THEREFORE, THIS INDENTURE WITNESSETH:

 

For and in consideration of
the premises and the purchase of the Securities by the Holders thereof, each
party agrees as follows for the benefit of the other party and for the equal
and ratable benefit of the holders of the Securities:

 

ARTICLE I

 

DEFINITIONS
AND INCORPORATION BY REFERENCE

 

Section 1.1             Definitions.

 

“Act”
has the meaning set forth in Section 1.4(a).

 

“Additional Interest” has the meaning set forth in the
Registration Rights Agreement.

 

“Additional
Interest Payment Date” has the meaning set forth in Section 6.9.

 

“Additional Interest
Record Date” has the meaning set forth in Section 6.9.

 

“Additional Shares” has the meaning set forth in Section 12.2(e).

 

“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 set forth in Section 2.1(c).

 

 

“Applicable Conversion
Period” has the meaning set forth in Section 12.13(a).

 

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

 

“Applicable Stock” means (a) the Common Stock and/or (b) in
the event of a transaction referred to in Section 12.4 in which the
Securities become convertible into Equity Interests of another Person, such
Equity Interests or any other Equity Interests into which such Equity Interests
shall be reclassified or changed.

 

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

 

“Base Amount”
has the meaning set forth in Section 12.13(a).

 

“Bid
Solicitation Agent” means the Trustee or such other office or agency
designated by the Company to obtain secondary market bid quotations.

 

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

 

“Board Resolution” means a resolution of the Board of Directors
or any duly appointed committee thereof.

 

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

 

“cash” means such coin or currency of the United States as at
any time of payment is legal tender for the payment of public and private
debts.

 

“Certificated Securities” means Securities that are in
substantially the form attached hereto as Exhibit A and that do not
include the information called for by footnote 1 thereof.

 

“Closing Sale Price” means the closing sale price per share of
Common Stock (or, if no closing sale price is reported, the average of the bid
and asked prices or, if there is more than one bid or ask price, the average of
the average bid and the average asked prices) on such date as reported by the
New York Stock Exchange or, if the Company’s Common Stock is not reported by
the New York Stock Exchange, in composite transactions for the principal U.S.
national securities exchange on which the Company’s Common Stock is traded, or
if the Company’s Common Stock is not listed on a U.S. national securities
exchange, as reported by the Nasdaq National Market.  If the Company’s Common Stock is not listed
for trading on a U.S. national or regional securities exchange and not reported
by the Nasdaq National Market on the relevant date, the “Closing Sale Price”
will be the last quoted bid price for the Company’s Common Stock in the
over-the-counter market on the relevant date as reported by Pink Sheets, LLC or
similar organization. If the

 

2

 

Common
Stock is not so quoted, the “Closing Sale Price” will be the average of the
mid-point of the last bid and ask prices for the Common Stock on the relevant
date from each of at least two independent nationally-recognized investment
banking firms selected by the Company for this purpose. If at least two
independent quotes cannot be obtained, the “Closing Sale Price” will be
determined in good faith by the Board of Directors. The Closing Sale Price will
be determined without reference to extended or after-hours trading.

 

“Common Stock” means the common stock, par value $.01 per
share, of the Company as that stock exists on the date of this Indenture or any
other Equity Interests of the Company into which such Common Stock shall be
reclassified or changed; provided,
that after the consummation of any transaction referred to in Section 12.4,
all references to “Common Stock” shall, to the extent necessary to protect the
interests of the Holders of the Securities, become references to “Applicable
Stock.”

 

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

 

“Company Request” or “Company
Order” means a written request or order signed in the name of the
Company by any two Officers, at least one of whom is the Chief Executive Officer or the Chief Financial
Officer.

 

“Contingent
Interest” has the meaning set forth in Section 14.1.

 

“Continuing Directors” means, as of any date of determination,
any member of the Board of Directors (i) who was a member of the Board of
Directors on the Issue Date; or (ii) who was nominated for election or
elected to the Board of Directors with the approval of a majority of the
Continuing Directors who were members of the Board of Directors at the time of
such new director’s nomination or election; or (iii) whose election was
ratified, or who is nominated for re-election, by a majority of the Continuing
Directors who were members of the Board of Directors at the time of the new
director’s initial election to the Board of Directors.

 

“Conversion Agent” has the meaning set forth in Section 2.3.

 

“Conversion Notice” has the meaning set forth in Section 12.2(b).

 

“Conversion Obligation” has the meaning set forth in Section 12.1(a).

 

“Conversion Price” means, at any time, $1,000 divided by the
Conversion Rate in effect at such time, rounded to two decimal places (rounded
up if the third decimal place thereof is 5 or more and otherwise rounded down).

 

“Conversion Rate” means the number of shares of Common Stock
issuable upon conversion of each $1,000 of the principal amount of the
Securities, which is initially 16.7504 shares, subject to adjustments as set
forth in this Indenture.

 

3

 

“Conversion Value” of the Securities on any date of
determination means the Applicable Conversion Rate, multiplied by the average
of the Closing Sale Prices of the Common Stock for each Trading Day in the
Applicable Conversion Period.

 

“Corporate Trust Office” means the principal office of the
Trustee at which at any time its corporate trust business shall be
administered, which office at the date hereof is located at New York, New York,
or such other address as the Trustee may designate from time to time by notice
to the Holders and the Company, or the principal corporate trust office of any
successor Trustee (or such other address as a successor Trustee may designate
from time to time by notice to the Holders and the Company).

 

“Current
Dividend Rate” has the meaning set forth in Section 12.3(d).

 

“Custodian” means any receiver, trustee, assignee, liquidator,
custodian or similar official under any Bankruptcy Law.

 

“Daily Share Amount”
has the meaning set forth in Section 12.13(a).

 

“Default” means, when used with respect to the Securities, any
event which is, or after notice or passage of time or both would be, an Event
of Default.

 

“Depositary” means, with respect to any Global Securities, a
securities clearing agency that is registered as such under the Exchange Act
and is designated by the Company to act as Depositary for such Global
Securities (or any successor securities clearing agency so registered), which
shall initially be DTC.

 

“Dividend
Threshold Amount” has the meaning set forth in Section 12.3(d).

 

“Domestic
Subsidiary” means, any Subsidiary of the Company that was formed
under the laws of the United States or any state of the United States or the
District of Columbia or that guarantees or otherwise provides direct credit
support for any Indebtedness of the Company. 
The pledge of capital stock of a Subsidiary of the Company will not be
considered to be a provision of direct credit support for Indebtedness of the
Company by such Subsidiary. 
Notwithstanding the foregoing, Laurel Technologies Partnership (d/b/a
DRS Laurel Technologies), Canopy Technologies LLC and MSSC Company LP and their
respective subsidiaries will not be Domestic Subsidiaries for so long as such
entities are not directly or indirectly wholly-owned by the Company, provided that
should Laurel Technologies Partnership (d/b/a DRS Laurel Technologies), Canopy
Technologies LLC or MSSC Company LP and their subsidiaries be directly or
indirectly wholly-owned by the Company at any point after the date of hereof,
they and their respective subsidiaries will become Guarantors in compliance
with Section 6.10.

 

“DTC” means The Depository Trust Company, a New York
corporation.

 

“EDGAR” has the meaning set forth in Section 6.2(b).

 

“Effective Date” has the meaning set forth in Section 12.2(e).

 

4

 

“Equity Interest” of any Person means any and all shares,
interests, rights to purchase, warrants, options, participations or other
equivalents of or interests in (however designated) corporate stock or other
equity participations, including partnership interests, whether general or
limited, of such Person.

 

“Event of Default” has the meaning set forth in Section 8.1.

 

“Excess Value”
has the meaning set forth in Section 12.13(a).

 

“Exchange Act” means the U.S. Securities Exchange Act of 1934,
as amended or any successor statute thereto, and the rules and regulations
promulgated thereunder.

 

“Ex-Dividend Date” means the first date upon which a sale of
the Common Stock does not automatically transfer the right to receive the
relevant distribution from the seller of the Common Stock to its buyer

 

“Expiration Time” has the meaning set forth in Section 12.3(e).

 

“Fair Market Value” has the meaning set forth in Section 12.3(g).

 

“Fundamental Change” means the occurrence of any of the
following events: (i)  the consummation of a transaction pursuant to which
a “person” or “group” within the meaning of Section 13(d) of the
Exchange Act other than the Company, its subsidiaries or its or their employee
benefit plans, has become the ultimate “beneficial owner,” as defined in Rules 13d-3
and 13d-5 under the Exchange Act of the common equity representing more than
50% of the Company’s total outstanding Voting Stock that is entitled to vote in
the election of the Board of Directors, as reflected in Schedule TO or any
schedule or report filed under the Exchange Act disclosing the
consummation of such acquisition, (ii) the first day on which a majority
of the members of the Board of Directors are not Continuing Directors; (iii) the
Company consolidates with or merges with or into any Person or conveys,
transfers, sells or otherwise disposes of or leases all or substantially all of
its assets to any Person, or any corporation consolidates with or merges into
or with the Company, in any such event pursuant to a transaction in which the
Company’s outstanding Voting Stock is changed into or exchanged for cash,
securities or other property, other than any such transaction where the Company’s
outstanding Voting Stock is not changed or exchanged at all (except to the
extent necessary to reflect a change in the Company’s jurisdiction of
incorporation), or where (A) the Company’s outstanding Voting Stock is
changed into or exchanged for cash, securities and other property (other than equity
interests of the surviving corporation) and (B) the Company’s shareholders
immediately before such transaction own, directly or indirectly, immediately
following such transaction, more than 50% of the total outstanding Voting Stock
of the surviving corporation; (iv) the Company is liquidated or dissolved
or adopts a plan of liquidation or dissolution other than in a transaction
which complies with the provisions described under ARTICLE VII; or (v) the
Company’s Common Stock or any other common stock into which the Securities are
convertible ceases to be traded on a U.S. national securities exchange or
quoted on the Nasdaq National Market or traded on an established automated
over-the-counter trading market in the United States, and no American Depositary
Shares or similar instruments for such common stock are so listed or approved
for listing in the United States.

 

5

 

However, notwithstanding the
foregoing, a “Fundamental Change” will not be deemed to have occurred if in the
cases described in clauses (i) or (iii) above, at least 90% of the
consideration, excluding cash payments for fractional shares and cash payments
pursuant to dissenters’ appraisal rights, in the merger or consolidation
constituting the Fundamental Change consists of capital stock traded on a U.S.
national securities exchange or quoted on the Nasdaq National Market or
American Depositary Shares or similar instruments for such Common Stock are so
listed or approved for listing in the United States (or which will be so traded
or quoted when issued or exchanged in connection with such Fundamental Change)
and as a result of such transaction or transactions all or a portion of the
Securities become convertible into such capital stock, excluding cash payments
for fractional shares.

 

“Fundamental Change Purchase Date” has the meaning set forth in
Section 5.1(a).

 

“Fundamental Change Purchase Notice” has the meaning set forth
in Section 5.1(c).

 

“Fundamental Change Purchase Price” has the meaning set forth
in Section 5.1(a).

 

“Guarantors”
means each of (1) the Company’s Subsidiaries party hereto on the date of
this Indenture; and (2) any other Subsidiary of the Company that executes
a Subsidiary Guarantee in accordance with the provisions of this Indenture, and
their respective successors and assigns.

 

“Global Securities” means Securities that are in substantially
the form attached hereto as Exhibit A and that include the information
called for by footnotes 1 and 3 thereof and that are deposited with the
Depositary or its custodian and registered in the name of, the Depositary or
its nominee.

 

“Holder” means a person in whose name a Security, including any
Global Security, is registered on the Registrar’s books.

 

“Immaterial
Subsidiary” means, as of any date, any Subsidiary whose total
assets, as of that date, are less than $100,000 and whose total revenues for
the most recent twelve-month period do not exceed $100,000; provided that a
Subsidiary will not be considered to be an Immaterial Subsidiary if it,
directly or indirectly, guarantees or otherwise provides direct credit support
for any indebtedness of the Company.

 

“Indebtedness”
means, with respect to any person,

 

(a)           all obligations, contingent or
otherwise, of such person (i) for borrowed money (whether or not the
recourse of the lender is to the whole of the assets of such person or only to
a portion thereof), (ii) evidenced by a note, debenture, bond or written
instrument (including a purchase money obligation), (iii) in respect of
leases of such person required, in conformity with U.S. generally accepted
accounting principles, to be accounted for as capitalized lease obligations on
the balance sheet of such person; or (iv)

 

6

 

in respect of
letters of credit (including reimbursement obligations with respect thereto),
local guarantees or bankers’ acceptances;

 

(b)           all obligations secured by a
mortgage, pledge, lien, encumbrance, charge or adverse claim affecting title or
resulting in an encumbrance to which the property or assets of such person are
subject and as are reflected as debt on the balance sheet of such person,
whether or not the obligations secured thereby shall have been assumed by or
shall otherwise be such person’s legal liability;

 

(c)           all obligations of such person under
interest rate and currency swap agreements, cap, floor and collar agreements,
spot and forward contracts and similar agreements and arrangements;

 

(d)           any indebtedness or other obligations
described in clause (a), (b) or (c) above secured by any mortgage,
pledge, lien or other encumbrance existing on property which is owned or held
by such person, regardless of whether the indebtedness or other obligation
secured thereby shall have been assumed by such person; and

 

(e)           all obligations of others of the type
described in clause (a), (b), (c) or (d) above assumed by or
guaranteed in any manner by such person or in effect guaranteed by such person
through an agreement to purchase, contingent or otherwise (and the obligations
of such person under any such assumptions, guarantees or other such
arrangements).

 

“Indenture” means this Indenture, as amended or supplemented
from time to time in accordance with the terms hereof, including the provisions
of the TIA that are explicitly incorporated in this Indenture by reference to
the TIA.

 

“Initial
Dividend Rate” has the meaning set forth in Section 12.3(d).

 

“Initial Purchasers” means Bear, Stearns & Co. Inc.,
Wachovia Capital Markets, LLC, Merrill Lynch, Pierce, Fenner & Smith
Incorporated, Banc of America Securities LLC, CIBC World Markets Corp.,
Jefferies & Company, Inc. and Ryan Beck & Co., Inc.,
as initial purchasers pursuant to the Purchase Agreement.

 

“Institutional Accredited Investor” means an institutional
investor that is an “accredited investor” as defined in Rule 501(a)(1),
(2), (3) or (7) under the Securities Act.

 

“Interest Payment Date” has the meaning set forth in Exhibit A
attached hereto.

 

“Issue Date” means, with respect to any Security, the date on
which such Security was originally issued or deemed issued as set forth on the
face of the Security.

 

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

 

7

 

“Measurement
Period” has the meaning set forth in Section 12.1(a).

 

“Offering
Memorandum” means the final offering memorandum of the Company dated
January 30, 2006 relating to the offering of the Securities.

 

“Officer” means the Chief Executive Officer, the Chief
Financial Officer, any Executive or Senior Vice President, the Treasurer, the
Corporate Controller or the Secretary of the Company.

 

“Officers’ Certificate” means a written certificate containing
the information specified in Section 15.4 and Section 15.5, signed in
the name of the Company by any two Officers, at least one of whom is the Chief
Executive Officer or the Chief Financial Officer, and delivered to the
Trustee.  An Officers’ Certificate given
pursuant to Section 6.3 shall be signed by the Chief Financial Officer and
one other Officer.

 

“Opinion of Counsel” means a written opinion containing the
information specified in Section 15.4 and Section 15.5, from legal
counsel.  The counsel may be an employee
of, or counsel to, the Company.

 

“Paying Agent” has the meaning set forth in Section 2.3.

 

“Payment
Default” has the meaning set forth in Section 8.1(h).

 

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

 

“Public Acquirer Change of Control” means any
event constituting a Fundamental Change that would otherwise obligate the
Company to increase the Conversion Rate pursuant to Section 12.2(e) where
the acquirer (or any entity that directly or indirectly owns a majority of the
Voting Stock of the acquirer and fully and unconditionally guarantees the
Securities) has a class of common stock, depositary receipts or other
certificates representing common equity interests traded on a national
securities exchange or quoted on the Nasdaq National Market or which will be so
traded or quoted when issued or exchanged in connection with such Fundamental
Change (the “Public Acquirer Common Stock”).

 

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

 

“Public Notice” by the Company shall mean publication of a
notice in a newspaper of general circulation in The City of New York or through
such other public medium as the Company may use at that time and publication of
such information on the Company’s corporate website.

 

“Purchase Agreement” means the Purchase Agreement, dated January 30,
2006, by and between the Company and the Initial Purchasers relating to the
purchase and sale of the Securities.

 

8

 

“Purchase Date” has the meaning set forth in Section 4.1(a).

 

“Purchase Notice” has the meaning set forth in Section 4.1(c).

 

“Purchase Price” has the meaning set forth in Section 4.1(a).

 

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

 

“Record Date” has the meaning set forth in Section 12.3(g).

 

“Redemption Date” means, when used with respect to any Security
to be redeemed, the date fixed for redemption pursuant to this Indenture.

 

“Redemption Price” means when used with respect to any Security
to be redeemed pursuant to any provision in this Indenture, the price at which
it is to be redeemed pursuant to this Indenture and the Securities.

 

“Reference
Property” has the meaning set forth in Section 12.4.

 

“Register” has the meaning set forth in Section 2.3.

 

“Registrar” has the meaning set forth in Section 2.3.

 

“Registration Rights Agreement” means the Registration Rights
Agreement, dated January 31, 2006, among the Company and the Initial
Purchasers, as amended or supplemented from time to time.

 

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

 

“Restricted Certificated Security” means a Certificated
Security which is a Transfer Restricted Security.

 

“Restricted Global Security” means a Global Security that is a
Transfer Restricted Security.

 

“Restricted Security” means a Restricted Certificated Security
or a Restricted Global Security.

 

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

 

“SEC” means the U.S. Securities and Exchange Commission, or any
successor thereto.

 

9

 

“Securities” has the meaning set forth in the recitals to this
Indenture.

 

“Securities Act” means the U.S. Securities Act of 1933, as
amended, or any successor statute thereto, and the rules and regulations
promulgated thereunder.

 

“Settlement Amount” has the meaning set forth in Section 12.13(a).

 

“Significant Subsidiary” means any Subsidiary that would be a “significant
subsidiary” as defined in Article 1, Rule 1-02 of Regulation S-X,
promulgated pursuant to the Securities Act, as such Regulation is in effect on
the date hereof.

 

“Special Record Date” has the meaning set forth in Section 6.1.

 

“spin-off” has the meaning set forth in Section 12.3(c).

 

“Stated Maturity,” when used with respect to any Security,
means February 1, 2026.

 

“Stock Price” means the price paid per share of Common Stock in
a transaction to which Section 12.2(e) applies.  If holders of Common Stock receive only cash
in such Fundamental Change transaction, the Stock Price shall be the cash
amount paid per share. Otherwise, the Stock Price shall be the average of the
Closing Sale Prices of the Common Stock on the ten (10) consecutive
Trading Days prior to but not including the Effective Date of such Fundamental
Change transaction.

 

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

 

“Subsidiary Guarantee” has the
meaning set forth in Section 13.1.

 

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

 

“Total Conversion Shares at
Issuance” has the meaning set forth in Section 12.13(a).

 

“Trading Day” means a day during which (i) trading in
Applicable Stock generally occurs, (ii) there is no Market Disruption
Event and (iii) a Closing Sale Price for Applicable Stock is provided on
the New York Stock Exchange or, if the Applicable Stock is not listed on the
New York Stock Exchange, on the principal other U.S. national or regional
securities exchange on which the Applicable Stock is then listed or, if the
Applicable Stock is not listed on a U.S. national or regional securities
exchange, on the principal other market on which the Applicable Stock is then
traded.

 

“Trading Price”
on any date of determination means the average of the secondary market bid
quotations per Security obtained by the Bid Solicitation Agent for

 

10

 

$5,000,000
principal amount of Securities at approximately 3:30 p.m., Eastern
Standard time, on such determination date from two independent
nationally-recognized securities dealers selected by the Company, but if only
one such bid can reasonably be obtained by the Bid Solicitation Agent, one bid
shall be used.  If the Bid Solicitation
Agent cannot reasonably obtain at least one bid for $5,000,000 principal amount
of the Securities from a nationally-recognized securities dealer or if, in the
Company’s reasonable judgment, the bid quotations are not indicative of the
secondary market value of the Securities, then the market price of a Security
will be determined by the Board of Directors based on a good faith estimate of
fair value of the Securities.

 

“Transfer Certificate” has the meaning set forth in Section 2.12(e).

 

“Transfer Restricted Security” has the meaning set forth in Section 2.12(e).

 

“Treasury
Yield” means the yield to maturity at the time of computation of
United States Treasury securities with a constant maturity (as compiled and
published in the most recent Federal Reserve Statistical Release H.15 (519)
that has become publicly available at least two (2) Business Days prior to
the redemption date (or, if such Statistical Release is no longer published,
any publicly available source for similar market data) most nearly equal to the
then remaining term to February 4, 2011; provided,
however, that if the then remaining term
to February 4, 2011 is not equal to the constant maturity of a United
States Treasury security for which a weekly average yield is given, the
Treasury Yield shall be obtained by linear interpolation (calculated to the
nearest one-twelfth of a year) from the weekly average yields of United States
Treasury securities for which such yield are given, except that if the then
remaining term to February 4, 2011 is less than one year, the weekly
average yield on actually traded United States Treasury securities adjusted to
a constant maturity of one year shall be used..

 

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

 

“Unrestricted Certificated Security” means a Certificated
Security that is not a Transfer Restricted Security.

 

“Unrestricted Global Security” means a Global Security that is
not a Transfer Restricted Security.

 

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

 

Section 1.2             Incorporation by Reference of
Trust Indenture Act.

 

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

 

11

 

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

 

“indenture securities”
means the Securities;

 

“indenture security
Holder” means a Holder of a Note;

 

“indenture to be
qualified” means this Indenture;

 

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

 

“obligor” on the
Securities and the Subsidiary Guarantees means the Company and the Guarantors,
respectively, and any successor obligor upon the Securities and the Subsidiary
Guarantees, respectively.

 

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

 

Section 1.3             Rules of Construction.

 

Unless the context otherwise
requires:

 

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

 

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

 

(3)           “or” is not exclusive;

 

(4)           words in the singular include the
plural, and in the plural include the singular;

 

(5)           “will” shall be interpreted to
express a command;

 

(6)           provisions apply to successive events
and transactions; and

 

(7)           references to sections of or rules under
the Securities Act will be deemed to include substitute, replacement of
successor sections or rules adopted by the SEC from time to time.

 

Section 1.4             Acts of Holders.

 

(a)           Any request, demand, authorization,
agreement, direction, notice, consent, waiver or other action provided by this
Indenture to be given or taken by Holders may be embodied in and evidenced by
one or more instruments of substantially similar tenor signed by such Holders
in person or by an agent duly appointed in writing; and, except as herein
otherwise expressly provided, such action shall become effective when such
instrument or instruments are delivered to the Trustee and, where it is hereby
expressly required, to the Company, as described in Section 15.2.  Such instrument or instruments (and the
action embodied therein and evidenced

 

12

 

thereby) are herein sometimes referred to as the “Act” of the Holders signing such instrument or
instruments.  Proof of execution of any
such instrument or of a writing appointing any such agent shall be sufficient
for any purpose of this Indenture and conclusive in favor of the Trustee and
the Company, if made in the manner provided in this Section 1.4.

 

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

 

(c)           The principal amount and certificate
number of any Security and the record ownership of Securities shall be proved
by the Register maintained by the Registrar for the Securities.

 

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

 

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

 

13

 

ARTICLE II

 

THE
SECURITIES

 

Section 2.1             Form and Dating.

 

(a)           The Securities shall be designated as
the “2.00% Convertible Senior Notes due 2026” of the Company.  The aggregate principal amount of Securities
initially issued is $300,000,000 (or $345,000,000 if the Initial Purchasers’
option to purchase additional Securities set forth in the Purchase Agreement is
exercised in full) except as provided in Section 2.7.

 

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

 

(b)           Restricted Global Securities.  All of the Securities are being initially
offered and sold only to QIBs in reliance on Rule 144A and shall be
issued, initially in the form of one or more Restricted Global Securities,
which shall be deposited with the Trustee at its Corporate Trust Office, as
custodian for the Depositary and registered in the name of DTC or the nominee
thereof, duly executed by the Company and authenticated by the Trustee as
hereinafter provided.  If any Securities
are resold to an Institutional Accredited Investor, the Company shall duly
execute and the Trustee shall duly authenticate and deliver, in accordance with
Section 2.2, one or more additional Restricted Global Securities, which
shall be deposited with the Trustee at its Corporate Trust Office, as custodian
for the Depositary and registered in the name of DTC or the nominee thereof and
in which beneficial interests may be held by Institutional Accredited Investors
in accordance with the Applicable Procedures. 
Subject to Section 2.1(a), the aggregate principal amount of the
Restricted Global Securities may from time to time be increased or decreased by
adjustments made on the records of the Trustee and the Depositary as
hereinafter provided.  Without limiting
the generality of the foregoing, the aggregate principal amount of the
Restricted Global Securities may be increased in order to reflect the issuance
of Securities following the exercise by the Initial Purchasers of the option
set forth in the Purchase Agreement to purchase additional Securities.

 

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

 

Any adjustment
of the aggregate principal amount of a Global Security to reflect the amount of
any increase or decrease in the amount of outstanding Securities represented

 

14

 

thereby shall be made by the Trustee in
accordance with instructions given by the Holder thereof as required by Section 2.12
and shall be made on the records of the Trustee and the Depositary.

 

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

 

(d)           Certificated Securities.  Certificated Securities will be issued only
under the limited circumstances provided in Section 2.12(a)(i).

 

Section 2.2             Execution and Authentication.

 

The Securities shall be
executed on behalf of the Company by any Officer.  The signature of the Officer on the
Securities may be manual or facsimile.

 

A Security bearing the
manual or facsimile signature of an individual who was at the time of the
execution of the Security an Officer shall bind the Company, notwithstanding
that such individual has ceased to hold such office(s) prior to the
authentication and delivery of such Securities or did not hold such office(s)
at the date of authentication of such Securities.

 

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

 

The Trustee shall initially
authenticate and deliver the Securities for original issuance in an aggregate
principal amount of up to $300,000,000 (or $345,000,000 if the Initial
Purchasers’ option to purchase additional Securities set forth in the Purchase
Agreement is exercised in full) upon one or more Company Orders without any
further action by the Company (other than as contemplated in Section 15.4
and Section 15.5).

 

The Trustee shall act as the
initial authenticating agent. 
Thereafter, the Trustee may appoint an authenticating agent acceptable
to the Company to authenticate Securities. 
An authenticating agent may authenticate Securities whenever the Trustee
may do so.  Each reference in this
Indenture to authentication by the Trustee includes authentication by such
agent.

 

15

 

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

 

Section 2.3             Registrar, Paying Agent, and
Conversion Agent.

 

The Company shall maintain
an office or agency where Securities may be presented for registration of
transfer or for exchange (“Registrar”),
an office or agency where Securities may be presented for redemption,
repurchase or payment (“Paying Agent”),
an office or agency where Securities may be presented for conversion (“Conversion Agent”) and an office or agency
where notices and demands to or upon the Company in respect of the Securities
and this Indenture may be served. 
Pursuant to Section 6.5, the Company shall at all times maintain a
Registrar, Paying Agent, Conversion Agent and an office or agency where notices
and demands to or upon the Company in respect of the Securities and this
Indenture may be served in the Borough of Manhattan, New York City.  The Registrar shall keep a register of the
Securities (the “Register”) and of
their transfer and exchange.

 

The Company may have one or
more co-registrars, one or more additional paying agents and one or more
additional conversion agents.  The term “Paying
Agent” includes any additional paying agent, including any named pursuant to Section 6.5.  The term Conversion Agent includes any
additional conversion agent, including any named pursuant to Section 6.5.

 

The Company shall enter into
an appropriate limited agency agreement with any Registrar, Paying Agent,
Conversion Agent or co-registrar (in each case, if such Registrar, agent or
co-registrar is a Person other than the Trustee).  Each such agreement shall implement the
provisions of this Indenture that relate to such agent.  The Company shall notify the Trustee of the
name and address of any such agent.  If
the Company fails to maintain a Registrar, Paying Agent, or Conversion Agent,
the Trustee shall act as such and shall be entitled to appropriate compensation
therefor pursuant to Section 9.7.

 

The Company hereby initially
appoints the Trustee as Registrar, Paying Agent and Conversion Agent in
connection with the Securities.  The
initial office of the Registrar, Paying Agent and Conversion Agent shall be the
office of the Trustee that is located in the Borough of Manhattan, New York
City, which office on the date hereof is 101 Barclay Street, New York, New York
10286.

 

Section 2.4             Paying Agent to Hold Assets in
Trust.

 

Except as otherwise provided
herein, prior to 10:00 a.m., Eastern Standard time, on each due date of
payments in respect of any Security, the Company shall deposit with the Paying
Agent cash (in immediately available funds if deposited on the due date)
sufficient to make such payments when so becoming due.  The Company shall require each Paying Agent
(other than the Trustee) to agree in writing that the Paying Agent shall hold in
trust for the benefit of Holders or the Trustee all cash held by the Paying
Agent for the making of payments in respect of the Securities and shall notify
the Trustee of any default by the Company in making any such payment.  The Company at any time may require a Paying
Agent to pay all cash held by it to the Trustee, and to account for any funds
disbursed by it, and the Trustee may at any time during the continuance of any
such default, upon the written request to the Paying Agent, require

 

16

 

such
Paying Agent to forthwith pay to the Trustee all cash so held in trust.  Upon doing so, the Paying Agent shall have no
further liability for the cash.

 

Section 2.5             Holder Lists.

 

The Trustee shall preserve
in as current a form as is reasonably practicable the most recent list
available to it of the names and addresses of Holders and shall otherwise
comply with § 312(a) of the TIA. 
If the Trustee is not the Registrar, the Company shall cause to be
furnished to the Trustee on or before each Interest Payment Date and at such
other times as the Trustee may request in writing a list in such form and as of
such date as the Trustee may reasonably require of the names and addresses of
Holders and the Company shall otherwise comply with § 312(a) of the
TIA.

 

Section 2.6             Transfer and Exchange.

 

(a)           Subject to compliance with any
applicable additional requirements contained in Section 2.12, when a
Security is presented to the Registrar with a request to register a transfer
thereof or to exchange such Security for an equal principal amount of
Securities of other authorized denominations, the Registrar shall register the
transfer or make the exchange as requested; provided,
however, that every Security
presented or surrendered for registration of transfer or exchange shall be duly
endorsed or accompanied by a properly completed assignment form and, if
applicable, a transfer certificate, each in the form included in Exhibit A
attached hereto and in form satisfactory to the Registrar and each duly
executed by the Holder thereof or its attorney duly authorized in writing.  To permit registration of transfers and
exchanges, upon surrender of any Security for registration of transfer or
exchange at an office or agency maintained for such purpose pursuant to Section 2.3,
the Company shall execute, and the Trustee shall authenticate, Securities of a
like aggregate principal amount at the Registrar’s request.  Any transfer or exchange shall be without
charge, except that the Company or the Registrar may require payment of a sum
sufficient to pay all taxes, assessments or other governmental charges that may
be imposed in connection with the transfer or exchange of the Securities from
the Holder requesting such transfer or exchange.

 

Neither the Company, the
Registrar nor the Trustee shall be required to exchange or register a transfer
of (i) any Securities selected for redemption (except, in the case of
Securities to be redeemed in part, the portion thereof not to be redeemed), (ii) any
Securities in respect of which a Purchase Notice or a Fundamental Change
Purchase Notice has been given and not withdrawn by the Holder thereof in
accordance with the terms of this Indenture (except, in the case of Securities
to be repurchased in part, the portion thereof not to be repurchased) or (iii) any
Securities surrendered for conversion (except, in the case of Securities to be
converted in part, the portion thereof not to be converted).

 

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

 

17

 

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

 

(c)           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 Security between or among Agent Members
or other beneficial owners of interests in any Global Security 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 2.7             Replacement Securities.

 

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

 

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

 

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

 

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

 

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

 

18

 

Section 2.8             Outstanding Securities;
Determinations of Holders’ Action.

 

Securities outstanding at
any time are all the Securities authenticated by the Trustee, except for those
cancelled by it, those delivered to it for cancellation, and those described in
this Section 2.8 as not outstanding. 
If a Security is replaced pursuant to Section 2.7, the replaced
Security ceases to be outstanding unless the Trustee receives proof
satisfactory to it that the replaced Security is held by a bona fide purchaser
unaware that such Security has been replaced.

 

Subject to Section 2.12(f),
a Security does not cease to be outstanding because the Company or an Affiliate
thereof holds the Security; provided,
however, that in determining
whether the Holders of the requisite principal amount of Securities have given
or concurred in any request, demand, authorization, direction, notice, consent,
waiver, or other Act hereunder, Securities owned by the Company or any other
obligor upon the Securities or any Affiliate of the Company or such other
obligor shall be disregarded (from both the numerator and the denominator) and
deemed not to be outstanding, except that, in determining whether the Trustee
shall be protected in relying upon any such request, demand, authorization,
direction, notice, consent, waiver or other Act, only Securities which a
Responsible Officer of the Trustee actually knows to be so owned shall be so
disregarded.  Subject to the foregoing,
only Securities outstanding at the time of such determination shall be
considered in any such determination. 
Securities so owned which have been pledged in good faith may be
regarded as outstanding for the purposes of this Section 2.8 if the
pledgee shall establish to the satisfaction of the Trustee the pledgee’s right
to vote such Securities and that the pledgee is not the Company, any other
obligor on the Securities or any Affiliate of the Company or any such other
obligor.  In the case of a dispute as to
such right, any decision by the Trustee taken upon the advice of counsel shall
be full protection to the Trustee.   Upon
request of the Trustee, the Company shall furnish to the Trustee promptly an
Officers’ Certificate listing and identifying all Securities, if any, known by
the Company to be owned or held by or for the account of any of the above
described Persons, and, subject to Section 9.1, the Trustee shall be
entitled to accept such Officers’ Certificate as conclusive evidence of the
facts therein set forth and of the fact that all Securities not listed therein
are outstanding for the purpose of any such determination.

 

If the Paying Agent holds,
in accordance with the terms of this Indenture, prior to 10:00 a.m.,
Eastern Standard time, on a Redemption Date, a Purchase Date, a Fundamental
Change Purchase Date or Stated Maturity, as the case may be, cash or
securities, if permitted hereunder, sufficient to pay all amounts payable in
respect of Securities on that date, then on such Redemption Date, Purchase
Date, Fundamental Change Purchase Date or Stated Maturity, as the case may be,
such Securities shall cease to be outstanding and interest and Additional
Interest, if any, on such Securities shall cease to accrue.

 

If a Security is converted
in accordance with ARTICLE XII, then from and after the time of conversion
on the date of conversion, such Security shall cease to be outstanding and
interest and Additional Interest, if any, on such Security shall cease to
accrue, provided that the Company
fully performs its obligations under ARTICLE XII.

 

19

 

Section 2.9             Temporary Securities.

 

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

 

If temporary Securities are
issued, the Company shall cause definitive Securities to be prepared without
unreasonable delay.  After the
preparation of definitive Securities, the temporary Securities shall be
exchangeable for definitive Securities upon surrender of the temporary
Securities at the office or agency of the Company designated for such purpose
pursuant to Section 2.3, without charge to the Holder.  Upon surrender for cancellation of any one or
more temporary Securities, the Company shall execute and the Trustee shall
authenticate and deliver in exchange therefor a like principal amount of
definitive Securities of authorized denominations.  Until so exchanged the temporary Securities
shall in all respects be entitled to the same benefits and subject to the same
limitations under this Indenture as definitive Securities.

 

Section 2.10           Cancellation.

 

All Securities surrendered
for payment, repurchase by the Company pursuant to ARTICLE IV or ARTICLE V,
conversion, redemption or registration of transfer or exchange shall, if
surrendered to any person other than the Trustee, be delivered to the Trustee
and shall be promptly cancelled by it or, if surrendered to the Trustee, shall
be promptly cancelled by it.  The Company
may at any time deliver to the Trustee for cancellation any Securities
previously authenticated and delivered hereunder which the Company may have
acquired in any manner whatsoever, and all Securities so delivered shall be
promptly cancelled by the Trustee.  The
Company may not issue new Securities to replace Securities that it has paid or
delivered to the Trustee for cancellation or that any Holder has converted
pursuant to ARTICLE XII.  No
Securities shall be authenticated in lieu of or in exchange for any Securities
cancelled as provided in this Section 2.10, except as expressly permitted
by this Indenture.  All cancelled
Securities held by the Trustee shall be disposed of by the Trustee in
accordance with the Trustee’s customary procedure.

 

Section 2.11           Persons Deemed Owners.

 

Prior to due presentment of
a Security for registration of transfer, the Company, the Trustee and any agent
of the Company or the Trustee may treat the person in whose name such Security
is registered as the owner of such Security for the purpose of receiving
payment of principal of, Redemption Price, Purchase Price or Fundamental Change
Purchase Price, and interest and Additional Interest, if any, on, the Security,
for the purpose of receiving cash or Applicable Stock upon conversion and for
all other purposes whatsoever, whether or not such Security be overdue, and
neither the Company, the Trustee nor any agent of the Company or the Trustee
shall be affected by notice to the contrary.

 

20

 

Section 2.12           Additional Transfer and Exchange
Requirements.

 

(a)           Transfer and Exchange of Global
Securities.

 

(i)            Certificated
Securities shall be issued in exchange for interests in the Global Securities
only if (x) the Depositary notifies the Company that it is unwilling or unable
to continue as Depositary for the Global Securities or if any time the
Depositary ceases to be a “clearing agency” registered under the Exchange Act
and a successor depositary is not appointed by the Company within 90 days or
(y) an Event of Default has occurred and is continuing and the Registrar has
received a request from the Depositary that the Securities be reissued as
Certificated Securities.  In any such
case, the Company shall execute, and the Trustee shall, upon receipt of a
Company Order (which the Company agrees to deliver promptly), authenticate and
deliver Certificated Securities in an aggregate principal amount equal to the
principal amount of such Global Securities in exchange therefor.  Only Restricted Certificated Securities shall
be issued in exchange for beneficial interests in Restricted Global Securities,
and only Unrestricted Certificated Securities shall be issued in exchange for
beneficial interests in Unrestricted Global Securities.  Certificated Securities issued in exchange
for beneficial interests in Global Securities shall be registered in such names
and shall be in such authorized denominations as the Depositary, pursuant to
instructions from its direct or indirect participants or otherwise, shall
instruct the Trustee.  The Trustee shall
deliver or cause to be delivered such Certificated Securities to the Persons in
whose name such Securities are so registered. 
Such exchange shall be effected in accordance with the Applicable
Procedures.

 

(ii)           Notwithstanding
any other provisions of this Indenture other than the provisions set forth in Section 2.12(a)(i),
a Global Security may not be transferred except as a whole by the Depositary to
a nominee of the Depositary or by a nominee of the Depositary to the Depositary
or another nominee of the Depositary or by the Depositary or any such nominee
to a successor Depositary or a nominee of such successor Depositary.

 

(b)           Transfer and Exchange of
Certificated Securities.  In the
event that Certificated Securities are issued in exchange for beneficial
interests in Global Securities in accordance with Section 2.12(a)(i), and,
on or after such event, Certificated Securities are presented by a Holder to
the Registrar with a request:

 

(x)            to register the transfer of the
Certificated Securities to a person who will take delivery thereof in the form
of Certificated Securities only; or

 

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

 

such Registrar shall, subject to the second paragraph of Section 2.6(a),
register the transfer or make the exchange as requested; provided, however,
that the Certificated Securities presented or surrendered for register of
transfer or exchange:

 

21

 

(i)            shall
be duly endorsed or accompanied by a written instrument of transfer in
accordance with the proviso in the first paragraph of Section 2.6(a); and

 

(ii)           in
the case of a Restricted Certificated Security, such request shall be
accompanied by the following additional information and documents, as
applicable:

 

(A)          if
such Restricted Certificated Security is being delivered to the Registrar by a
Holder for registration in the name of such Holder, without transfer, or such
Restricted Certificated Security is being transferred to the Company or a
Subsidiary of the Company, a certification to that effect from such Holder (in
substantially the form set forth in the Transfer Certificate);

 

(B)           if
such Restricted Certificated Security is being transferred to a person the
Holder reasonably believes is a QIB in compliance with Rule 144A, pursuant
to the exemption from the registration requirements of the Securities Act
provided by Rule 144 (if available) or pursuant to an effective
registration statement under the Securities Act, a certification to that effect
from such Holder (in substantially the form set forth in the Transfer
Certificate); or

 

(C)           if
such Restricted Certificated Security is being transferred pursuant to an
exemption from the registration requirements of the Securities Act to an
Institutional Accredited Investor (other than to a QIB in accordance with
Rule 144A), that, prior to such transfer, furnishes to the Trustee a
certificate containing certain representations and warranties by such Institutional
Accredited Investor (in substantially the form set forth in Exhibit C), an
opinion of counsel if required by, and in form reasonably acceptable to, the
Company or the Trustee and a certification to that effect from the Holder (in
substantially the form set forth in the Transfer Certificate).

 

(c)           Transfer of a Beneficial Interest
in a Restricted Global Security for a Beneficial Interest in an Unrestricted
Global Security.  Any person having a
beneficial interest in a Restricted Global Security may upon request, subject
to the Applicable Procedures, transfer such beneficial interest to a person who
is required or permitted to take delivery thereof in the form of an
Unrestricted Global Security.  Upon
receipt by the Trustee of written instructions, or such other form of
instructions as is customary for the Depositary, from the Depositary or its
nominee on behalf of any person having a beneficial interest in a Restricted
Global Security and the following additional information and documents in such
form as is customary for the Depositary from the Depositary or its nominee on
behalf of the person having such beneficial interest in the Restricted Global
Security (all of which may be submitted by facsimile or electronically):

 

(i)            if
such beneficial interest is being transferred pursuant to an effective
registration statement under the Securities Act, a certification to that effect
from the Holder (in substantially the form set forth in the Transfer
Certificate); or

 

(ii)           if
such beneficial interest is being transferred pursuant to the exemption from
the registration requirements of the Securities Act provided by Rule 144,
a

 

22

 

certification
to that effect from the Holder (in substantially the form set forth in the
Transfer Certificate),

 

the Trustee, as the Registrar, shall reduce
or cause to be reduced the aggregate principal amount of the Restricted Global
Security by the appropriate principal amount and shall increase or cause to be
increased the aggregate principal amount of the Unrestricted Global Security by
a like principal amount.  Such transfer
shall otherwise be effected in accordance with the Applicable Procedures.  If no Unrestricted Global Security is then
outstanding, the Company shall execute and the Trustee shall, upon receipt of a
Company Order (which the Company agrees to deliver promptly), authenticate and
deliver an Unrestricted Global Security.

 

(d)           Transfers of Certificated
Securities for Beneficial Interests in Global Securities.  In the event that Certificated Securities are
issued in exchange for beneficial interests in Global Securities and,
thereafter, the events or conditions specified in
Section 2.12(a)(i) which required such exchange shall cease to exist,
the Company shall mail notice to the Trustee and to the Holders stating that
Holders may exchange Certificated Securities for interests in Global Securities
by complying with the procedures set forth in this Indenture and briefly
describing such procedures and the events or circumstances requiring that such
notice be given.  Thereafter, if
Certificated Securities are presented by a Holder to a Registrar with a
request:

 

(x)            to register the transfer of such
Certificated Securities to a person who will take delivery thereof in the form
of a beneficial interest in a Global Security, which request shall specify
whether such Global Security will be a Restricted Global Security or an
Unrestricted Global Security, or

 

(y)           to exchange such Certificated
Securities for an equal principal amount of beneficial interests in a Global
Security, which beneficial interests shall be owned by the Holder transferring
such Certificated Securities (provided
that in the case of such an exchange, Restricted Certificated Securities may be
exchanged only for Restricted Global Securities and Unrestricted Certificated
Securities may be exchanged only for Unrestricted Global Securities),

 

the Registrar shall register the transfer or
make the exchange as requested by canceling such Certificated Security and
causing, or directing the Registrar to cause, the aggregate principal amount of
the applicable Global Security to be increased accordingly and, if no such
Global Security is then outstanding, the Company shall issue and the Trustee
shall, upon receipt of a Company Order (which the Company agrees to deliver
promptly) authenticate and deliver a new Global Security;

 

provided, however, that the Certificated Securities
presented or surrendered for registration of transfer or exchange:

 

(1)           shall be duly endorsed or accompanied
by a written instrument of transfer in accordance with the proviso in the first
paragraph of Section 2.6(a);

 

(2)           in the case of a Restricted
Certificated Security to be transferred for a beneficial interest in an
Unrestricted Global Security,

 

23

 

such request shall be accompanied by the
following additional information and documents, as applicable:

 

(i)            if such Restricted Certificated
Security is being transferred pursuant to an effective registration statement
under the Securities Act, a certification to that effect from such Holder (in
substantially the form set forth in the Transfer Certificate); or

 

(ii)           if such Restricted Certificated
Security is being transferred pursuant to the exemption from the registration
requirements of the Securities Act provided by Rule 144, a certification
to that effect from such Holder (in substantially the form set forth in the
Transfer Certificate);

 

(3)           in the case of a Restricted
Certificated Security to be transferred or exchanged for a beneficial interest
in a Restricted Global Security, such request shall be accompanied by a
certification from such Holder (in substantially the form set forth in the
Transfer Certificate) to the effect that such Restricted Certificated Security
is being transferred to a person the Holder reasonably believes is a QIB
(which, in the case of an exchange, shall be such Holder) in compliance with
Rule 144A or, in the case of a transfer to an Institutional Accredited
Investor (other than to a QIB in accordance with Rule 144A), by a
certificate containing certain representations and warranties by such
Institutional Accredited Investor (in substantially the form set forth in
Exhibit C), an Opinion of Counsel if required by, and in form reasonably
acceptable to, the Company or the Trustee and a certification to that effect
from the Holder (in substantially the form set forth in the Transfer
Certificate); and

 

(4)           in the case of an Unrestricted
Certificated Security to be transferred or exchanged for a beneficial interest
in an Unrestricted Global Security, such request need not be accompanied by any
additional information or documents.

 

(e)           Legends.

 

(1)           Except as permitted by the following
paragraphs (2), (3) and (4), each Global Security and Certificated
Security (and all Securities issued in exchange therefor or upon registration
of transfer or replacement thereof) shall bear a legend in substantially the
form called for by footnote 2 to Exhibit A (each a “Transfer Restricted Security”), for so long
as it is required by this Indenture to bear such legend.  Each Transfer Restricted Security shall have
attached thereto a certificate (a “Transfer
Certificate”) in substantially the form called for by footnote 4 to
Exhibit A attached hereto.

 

24

 

(2)           Upon any sale or transfer of a
Transfer Restricted Security (x) pursuant to Rule 144 or (y) pursuant to
an effective registration statement under the Securities Act:

 

(i)            in the case of any Restricted Certificated
Security, any Registrar shall permit the Holder thereof to exchange such
Restricted Certificated Security for an Unrestricted Certificated Security, or
(under the circumstances described in Section 2.12(d)) to transfer such
Restricted Certificated Security to a transferee who shall take such Security
in the form of a beneficial interest in an Unrestricted Global Security, and in
each case shall rescind any restriction on the transfer of such Security; and

 

(ii)           in the case of any beneficial interest
in a Restricted Global Security, the Trustee shall permit the beneficial owner
thereof to transfer such beneficial interest to a transferee who shall take
such interest in the form of a beneficial interest in an Unrestricted Global
Security and shall rescind any restriction on transfer of such beneficial
interest; provided, that such
Unrestricted Global Security shall continue to be subject to the provisions of
Section 2.12(a)(ii).

 

(3)           Upon the expiration of the holding
period pursuant to Rule 144(k) of the Securities Act, the Company shall
remove any restriction of transfer on such Security (or Applicable Stock, as
the case may be), and the Company shall execute, and the Trustee shall
authenticate and deliver Securities (or Applicable Stock, as the case may be)
that do not bear such legend and that do not have a Transfer Certificate
attached thereto.

 

(4)           Until the expiration of the holding
period applicable to sales of the Securities under Rule 144(k) of the
Securities Act, a transfer of the Securities pursuant to Rule 144 or
pursuant to an effective registration statement under the Securities Act or the
transfer of the Applicable Stock pursuant to Rule 144 or pursuant to an
effective registration statement under the Securities Act, the Applicable Stock
issued upon conversion of the Securities shall bear the legend in substantially
the form called for by Exhibit D attached hereto.

 

(f)            Transfers to the Company.  Nothing contained in this Indenture or in the
Securities shall prohibit the sale or other transfer of any Securities
(including beneficial interests in Global Securities) to the Company or any of
its Subsidiaries.  Any Securities
repurchased by the Company or any of its Subsidiaries shall be surrendered to the
Trustee for cancellation and in no event may the Company reissue or resell
Securities acquired by it or any of its Subsidiaries, regardless of whether
Securities were acquired by redemption, repurchase or otherwise.

 

(g)           Amendments to Rule 144(k).  Notwithstanding any other provision in this
Indenture, if Rule 144(k) as promulgated under the Securities Act is
amended to shorten the two-year period under Rule 144(k), then the
references to “two years” in the restrictive legend of each Transfer Restricted
Security (or Applicable Stock, as the case may be) shall be deemed to

 

25

 

refer to such shorter period from and after receipt by
the Trustee of the documents described in Section 2.12(c) or
Section 2.12(d)(2) from the Company or from a Holder of a Transfer
Restricted Security (or Applicable Stock, as the case may be); provided that a Transfer Restricted
Security (or Applicable Stock, as the case may be) shall not be deemed to refer
to such shorter period if to do so would be prohibited by, or would otherwise
cause a violation of, the U.S. federal securities laws applicable at the
time.  As soon as practicable after a
Responsible Officer of the Company receives notice of the effectiveness of any
such amendment to shorten the two-year period under Rule 144(k), unless
causing the Transfer Restricted Securities (or Applicable Stock, as the case
may be) to refer to such shorter period would otherwise be prohibited by, or
would otherwise cause a violation of, the U.S. federal securities laws applicable
at the time, the Company shall provide to the Trustee the documents described
in Section 2.12(d)(2) respecting the effectiveness of such amendment.

 

Section 2.13           CUSIP Numbers.

 

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

 

ARTICLE III

 

REDEMPTION
OF SECURITIES

 

Section 3.1             The Company’s Right to Redeem;
Make-Whole Premium; Notice to Trustee.

 

(a)           On or after February 1, 2009 and
prior to February 4, 2011, subject to the terms and conditions of this
ARTICLE III, the Company may, at its option, redeem for cash all or a
portion of the Securities at any time, if the Closing Sale Price of Common Stock
has exceeded 130% of the Conversion Price for at least twenty (20) Trading Days
in any consecutive 30-day trading period ending on the Trading Day prior to the
mailing of the notice of redemption, at a Redemption Price equal to 100% of the
principal amount of the Securities to be redeemed plus accrued and unpaid
interest (including Additional Interest, if any) up to but not including the
Redemption Date.  If the Company redeems
Securities under this paragraph (a) after February 1, 2009 and prior
to February 4, 2011, the Company will make the “make-whole” premium
described in paragraph (c) below.

 

(b)           On or after February 4, 2011,
subject to the terms and conditions of this ARTICLE III, the Company may,
at its option, redeem for cash all or a portion of the Securities at any time
at a Redemption Price equal to 100% of the principal amount of the Securities
to be redeemed, plus any accrued and unpaid interest (including Contingent
Interest and Additional Interest, if any) to but not including the Redemption
Date.

 

26

 

(c)           If the Company redeems the Securities
as described in clause (a) above, the Company will pay a “make-whole”
premium in cash equal to the present value of all remaining scheduled payments
of interest on the Securities to be redeemed through and including
February 4, 2011.  The present value
of the remaining interest payments will be computed using a discount rate equal
to the Treasury Yield.

 

(d)           In the event that the Company elects
to redeem Securities on a date that is after any Record Date but on or before
the corresponding Interest Payment Date, the Company shall be required to pay
any accrued and unpaid interest (including, (A) in the case of clause
(a) above, Additional Interest, if any, and (B) in the case of clause
(b) above, Contingent Interest and Additional Interest, if any), on such
Interest Payment Date to the record Holder on the relevant Record Date.

 

(e)           If the Company elects to redeem
Securities, it shall notify the Trustee in writing of the Redemption Date, the
principal amount of Securities to be redeemed and the Redemption Price.  If the Company determines to provide the
notice through the Trustee, the Company shall give this notice to the Trustee
by a Company Order at least 35 days before the Redemption Date (unless a
shorter notice shall be satisfactory to the Trustee).

 

Section 3.2             Selection of Securities to Be
Redeemed.

 

If fewer than
all of the outstanding Securities are to be redeemed, unless the procedures of
the Depositary provide otherwise, the Trustee shall select the Securities to be
redeemed by lot or on a pro rata basis or by another method the Trustee
considers fair and appropriate.  The
Trustee shall make the selection within five (5) Business Days after it
receives the notice provided for in Section 3.1 from outstanding
Securities not previously called for redemption.

 

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

 

Securities and
portions of Securities that are to be redeemed are convertible by the Holder
until 5:00 p.m., Eastern Standard time, on the second Business Day
immediately preceding the Redemption Date unless the Company fails to pay the
Redemption Price.  If any Security
selected for partial redemption is converted in part before termination of the
conversion right with respect to the portion of the Security so selected, the
converted portion of such Security shall be deemed (so far as may be) to be the
portion selected for redemption and the Trustee shall select additional
Securities to be redeemed in the manner provided in the first paragraph of this
Section 3.2 in an amount equal to the Securities that would have been
redeemed but for their conversion prior to the termination of their conversion
right.  Securities which have been
converted during a selection of Securities to be redeemed may be treated by the
Trustee as outstanding for the purpose of such selection.

 

27

 

Section 3.3             Notice of Redemption.

 

At least 30
days but not more than 60 days before a Redemption Date, the Company shall mail
a notice of redemption by first-class mail, postage prepaid, to each Holder of
Securities to be redeemed.

 

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

 

(a)           the Redemption Date;

 

(b)           the Redemption Price;

 

(c)           the Conversion Rate;

 

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

 

(e)           that Securities called for redemption
may be converted at any time prior to 5:00 p.m., Eastern Standard time, on
the second Business Day preceding the Redemption Date;

 

(f)            that Holders who want to convert
their Securities must satisfy the requirements set forth in ARTICLE XII;

 

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

 

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

 

(i)            that, unless the Company defaults in
making payment of such Redemption Price and interest (including Contingent
Interest and Additional Interest, if any), on Securities called for redemption
shall cease to accrue on and after the Redemption Date and that all other
rights of Holders will terminate;

 

(j)            the CUSIP number(s) of the
Securities; and

 

(k)           any other information the Company
wants to present.

 

At the Company’s
request, the Trustee shall give the notice of redemption in the Company’s name
and at the Company’s expense; provided,
however, that the Company makes
such request at least five (5) Business Days (unless a shorter period
shall be satisfactory to the Trustee) prior to the date by which such notice of
redemption must be given to Holders in accordance with this Section 3.3; provided, further,
that the text of the notice of redemption shall be prepared by the Company.

 

Section 3.4             Effect of Notice of Redemption.

 

Once notice of
redemption is given, Securities called for redemption become due and payable on
the Redemption Date and at the Redemption Price, except for Securities which

 

28

 

are converted in accordance with the terms of this Indenture.  Upon surrender to the Paying Agent, such
Securities shall be paid at the Redemption Price.

 

Section 3.5             Deposit of Redemption Price.

 

Prior to
10:00 a.m., Eastern Standard time, on the applicable Redemption Date, the
Company shall irrevocably deposit with the Paying Agent an amount of cash (in
immediately available funds if deposited on the Redemption Date) sufficient to
pay the aggregate Redemption Price of all Securities or portions thereof which
are to be redeemed as of such Redemption Date other than Securities or portions
of Securities called for redemption which on or prior thereto have been
delivered by the Company to the Trustee for cancellation or have been
converted.

 

If the Paying
Agent holds, in accordance with the terms hereof, at 10:00 a.m., Eastern
Standard time, on the applicable Redemption Date, cash sufficient to pay the
Redemption Price of any Securities for which notice of redemption is given,
then, on such Redemption Date, such Securities shall cease to be outstanding
and interest (including Contingent Interest and Additional Interest, if any),
on such Securities shall cease to accrue, whether or not such Securities are
delivered to the Paying Agent, and the rights of the Holders in respect thereof
shall terminate (other than the right to receive the Redemption Price upon
delivery of such Securities).

 

Section 3.6             Securities Redeemed in Part.

 

Any
Certificated Security which is to be redeemed only in part shall be surrendered
at the office of the Paying Agent and the Company shall execute and the Trustee
shall authenticate and deliver to the Holder of such Security, without charge,
a new Security or Securities, of any authorized denomination as requested by
such Holder in aggregate principal amount equal to the unredeemed portion of
the Security surrendered.

 

With respect
to any Global Security which is to be redeemed only in part, promptly after the
Redemption Date the Trustee may make a notation upon such Global Security to
reduce the principal amount of the Global Security by the amount of Securities
redeemed in part.

 

Section 3.7             Repayment to the Company.

 

To the extent
that the aggregate amount of cash deposited by the Company pursuant to
Section 3.5 exceeds the aggregate Redemption Price of the Securities or
portions thereof which the Company is redeeming as of the Redemption Date,
then, promptly after the Redemption Date, the Paying Agent shall return any
such excess to the Company together with interest, if any, thereon.

 

Section 3.8             No Sinking Fund.

 

The Securities shall not have a sinking fund.

 

29

 

ARTICLE IV

 

PURCHASE
AT THE OPTION OF HOLDERS ON SPECIFIC DATES

 

Section 4.1             Optional Put.

 

(a)           Subject to the provisions of this
ARTICLE IV, each Holder shall have the right, at the Holder’s option, to
require the Company to purchase, and upon the exercise of such right, the
Company shall purchase, all of such Holder’s Securities, or any portion of the
principal amount thereof that is equal to $1,000 or an integral multiple
thereof, as directed by such Holder pursuant to this Section 4.1, on each
of February 1, 2011, February 1, 2016 and February 1, 2021 (each
a “Purchase Date”).  The Company shall be required to purchase
such Securities at a purchase price in cash equal to 100% of the principal
amount plus accrued and unpaid interest (including Additional Interest, if any)
to, but excluding, the Purchase Date (the “Purchase
Price”).  In the event that a
Purchase Date is a date that is after any Record Date but on or before the
corresponding Interest Payment Date, the Company shall be required to pay accrued
and unpaid interest and Additional Interest, if any, to the holder of the
repurchased Security and not the Holder on the Record Date.

 

(b)           On or before the 22nd Business Day
prior to each Purchase Date, the Company shall mail a written notice of the
purchase right by first class mail to the Trustee (and the Paying Agent if the
Trustee is not then acting as a Paying Agent) and to each Holder at its address
shown in the Register of the Registrar, and shall cause such notice to be
mailed to beneficial owners to the extent required by applicable law.  The notice shall include a form of Purchase
Notice to be completed by the Holder and shall briefly state, as applicable:

 

(i)            the
date by which the Purchase Notice must be delivered to the Paying Agent in order
for a Holder to exercise the purchase right pursuant to this Section 4.1;

 

(ii)           the
Purchase Date;

 

(iii)          the
Purchase Price;

 

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

 

(v)           briefly,
the conversion rights of the Securities, if any, and that the Holder must
satisfy the requirements set forth in this Indenture in order to convert the
Securities;

 

(vi)          the
Conversion Rate and any adjustments thereto;

 

(vii)         that
the Securities as to which a Purchase Notice has been given may be converted
into Common Stock if they are otherwise convertible pursuant to
ARTICLE XII of this Indenture only if the Purchase Notice has been
withdrawn in accordance with the terms of this Indenture;

 

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

 

30

 

(ix)           that
the Purchase Price for any Securities as to which a Purchase Notice has been
duly given and not withdrawn shall be paid promptly following the later of the
Purchase Date and the time of surrender of such Securities as described in
Section 4.1(b)(viii);

 

(x)            the
procedures the Holder must follow to exercise its rights under this
Section 4.1 and a brief description of such rights;

 

(xi)           the
procedures for withdrawing a Purchase Notice, including a form of notice of
withdrawal;

 

(xii)          that,
unless the Company defaults in making payment of such Purchase Price, interest
(including Contingent Interest or Additional Interest, if any), on Securities
surrendered for purchase by the Company shall cease to accrue on and after the
Purchase Date; and

 

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

 

At the Company’s
request, the Trustee shall give the notice of purchase right in the Company’s
name and at the Company’s expense; provided,
however, that the Company makes
such request at least five Business Days (unless a shorter period shall be
satisfactory to the Trustee) prior to the date by which such notice of purchase
right must be given to the Holders in accordance with this Section 4.1(b);
provided, further, that the text of the notice of
purchase right shall be prepared by the Company.

 

If any of the
Securities are in the form of a Global Security, then the Company shall modify
such notice to the extent necessary to accord with the procedures of the
Depositary applicable to the purchase of Global Securities.

 

Simultaneously
with delivering the written notice pursuant to this Section 4.1(b), the
Company shall make a Public Notice containing all information specified in such
written notice.

 

(c)           A Holder may exercise its rights
specified in Section 4.1(a) upon delivery of a written notice (which,
in the case of Certificated Securities, shall be in substantially the form
included on the reverse side of the Securities entitled “Option of Holder to
Elect Purchase” and which may be delivered by letter, overnight courier, hand
delivery, facsimile transmission or in any other written form and, in the case
of Global Securities, shall be a notice delivered electronically or by other
means in accordance with the Depositary’s customary procedures) of the exercise
of such rights (a “Purchase Notice”)
to the Paying Agent at any time from the opening of business on the date that
is 22 Business Days prior to the relevant Purchase Date until 5:00 p.m.,
Eastern Standard time, on the second Business Day prior to such Purchase Date.

 

The Purchase
Notice delivered by a Holder shall state (i) the relevant Purchase Date,
(ii) if certificated Securities have been issued, the certificate number
or numbers of the Security or Securities which the Holder shall deliver to be
purchased (if not certificated, the notice must comply with Applicable
Procedures), (iii) the portion of the principal amount of the Security
which the Holder shall deliver to be purchased, which portion must be $1,000 or
an

 

31

 

integral multiple thereof, and (iv) that such Security shall be
purchased pursuant to the terms and conditions specified in the Securities and
this Indenture.

 

Delivery of a
Security to the Paying Agent by book-entry transfer or physical delivery prior
to, on or after the applicable Purchase Date (together with all necessary
endorsements) at the offices of the Paying Agent is a condition to receipt by
the Holder of the Purchase Price therefor; provided,
however, that such Purchase Price
shall be so paid pursuant to this Section 4.1 only if the Security so
delivered to the Paying Agent shall conform in all respects to the description
thereof in the related Purchase Notice, as determined by the Company.

 

The Company
shall purchase from the Holder thereof, pursuant to this Section 4.1, a
portion of a Security if the principal amount of such portion is $1,000 or an
integral multiple thereof.  Provisions of
this Indenture that apply to the purchase of all of a Security pursuant to
Section 4.1 through Section 4.7 also apply to the purchase of such
portion of such Security.

 

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

 

Anything
herein to the contrary notwithstanding, in the case of Global Securities, any
Purchase Notice may be delivered or withdrawn and such Securities may be
surrendered or delivered for purchase in accordance with the Applicable Procedures
as in effect from time to time.

 

Section 4.2             Effect of Purchase Notice;
Withdrawal of Purchase Notice.

 

(a)           Upon receipt by the Paying Agent of
the Purchase Notice specified in Section 4.1(c), the Holder of the
Security in respect of which such Purchase Notice was given shall (unless such
Purchase Notice is withdrawn as specified in the following paragraph)
thereafter be entitled to receive solely the Purchase Price with respect to
such Security.  Such Purchase Price shall
be paid to such Holder, subject to receipt of cash by the Paying Agent,
promptly following the later of (a) the Purchase Date with respect to such
Security (provided the conditions
in Section 4.1(c) have been satisfied) and (b) the time of
book-entry transfer or delivery of such Security to the Paying Agent by the
Holder thereof in the manner required by Section 4.1(c).  Securities in respect of which a Purchase
Notice has been given by the Holder thereof may not be converted pursuant to
ARTICLE XII on or after the date of the delivery of such Purchase Notice
unless such Purchase Notice has first been validly withdrawn as specified in
the following paragraph.

 

(b)           A Purchase Notice may be withdrawn by
means of a written notice (which, in the case of Certificated Securities, may
be delivered by letter, overnight courier, hand delivery, facsimile
transmission or in any other written form and, in the case of Global
Securities, may be delivered electronically or by other means in accordance
with the Depositary’s customary procedures) of withdrawal delivered by the
Holder to the Paying Agent at any time prior to 5:00 p.m., Eastern
Standard time, on the Business Day immediately prior to the Purchase Date,
specifying (a) the principal amount of the Security or portion thereof (which
must be a principal amount of $1,000 or an integral multiple thereof) with
respect to which such

 

32

 

notice of withdrawal is being submitted, (b) if
certificated Securities have been issued, the certificate numbers of the
withdrawn Securities, or if not certificated, such notice must comply with
Applicable Procedures, and (c) the principal amount, if any, which remains
subject to the Purchase Notice.  If a
Purchase Notice has been properly withdrawn pursuant to this Section 4.2(b) prior
to the Purchase Date, the Company shall not be obligated to purchase those
Securities so identified in such notice of withdrawal.

 

Section 4.3             Deposit of Purchase Price.

 

Prior to
10:00 a.m., Eastern Standard time, on the Business Day following the
applicable Purchase Date, the Company shall irrevocably deposit with the Paying
Agent an amount of cash (in immediately available funds if deposited on such
Business Day) sufficient to pay the aggregate Purchase Price of all the
Securities or portions thereof which are to be purchased as of such Purchase
Date.

 

If the Paying
Agent holds, in accordance with the terms hereof, at 10:00 a.m., Eastern
Standard time, on the applicable Purchase Date (or such date specified in the
preceding paragraph), cash sufficient to pay the Purchase Price of any
Securities for which a Purchase Notice has been tendered and not withdrawn
pursuant to Section 4.2(b), then, on such Purchase Date, such Securities
shall cease to be outstanding and interest (including Additional Interest, if
any) on such Securities shall cease to accrue (whether or not book-entry
transfer of the Securities is made or whether or not the Securities are
delivered to the Paying Agent), and all other rights of the Holders will
terminate (other than the right to receive the Purchase Price upon delivery or
transfer of the Securities).

 

The Company
shall make a Public Notice of the aggregate principal amount of Securities
purchased on the applicable Purchase Date on such date or as soon as practicable
thereafter.

 

Section 4.4             Securities Purchased in Part.

 

Any
Certificated Security which is to be purchased only in part shall be
surrendered at the office of the Paying Agent (with, if the Company or the
Trustee so requires, due endorsement by, or a written instrument of transfer in
form satisfactory to the Company and the Trustee duly executed by, the Holder
thereof or such Holder’s attorney duly authorized in writing) and promptly
after the applicable Purchase Date the Company shall execute and the Trustee
shall authenticate and deliver to the Holder of such Security, without charge,
a new Security or Securities, of any authorized denomination or denominations
as may be requested by such Holder, in aggregate principal amount equal to, and
in exchange for, the portion of the principal amount of the Security so
surrendered that is not purchased.

 

With respect
to any Global Security which is to be purchased only in part, promptly after
the applicable Purchase Date the Trustee may make a notation upon such Global
Security to reduce the principal amount of the Global Security by the amount of
Securities purchased in part.

 

33

 

Section 4.5             Covenant to Comply With
Securities Laws Upon Purchase of Securities.

 

When complying
with the provisions of ARTICLE IV, and subject to any exemptions available
under applicable law as determined by the Company at such time, the Company
shall:

 

(a)           if such offer or purchase constitutes
an “issuer tender offer” for purposes of Rule 13e-4 (which term, as used
herein, includes any successor provision thereto) under the Exchange Act at the
time of such offer or purchase, (i) if applicable, comply with
Rule 13e-4 and Rule 14e-1 (or any successor provision) under the
Exchange Act and (ii) file the related Schedule TO (or any successor
schedule, form or report) if required under the Exchange Act; and

 

(b)           otherwise comply with all applicable
federal and state securities laws so as to permit the rights and obligations
under this ARTICLE IV to be exercised in the time and in the manner
specified therein.

 

Section 4.6             Repayment to the Company.

 

To the extent
that the aggregate amount of cash deposited by the Company pursuant to
Section 4.3 exceeds the aggregate Purchase Price of the Securities or
portions thereof which the Company is obligated to purchase as of the
applicable Purchase Date, then, promptly after such Purchase Date, the Paying
Agent shall return any such excess to the Company, together with interest, if
any, thereon.

 

Section 4.7             No Purchase Upon Event of
Default.

 

There shall be
no purchase of any Securities pursuant to this ARTICLE IV if there has
occurred (prior to, on or after, as the case may be, the giving by each of the
Holders of such Securities of the required Purchase Notice but, in any event,
prior to the applicable Purchase Date) and is continuing, as of such Purchase
Date, an Event of Default (other than a default that is cured by the payment of
the Purchase Price with respect to such Securities).  The Paying Agent shall promptly return to the
respective Holders thereof any Securities (a) with respect to which a
Purchase Notice has been delivered in compliance with this Indenture, or
(b) held by it during the continuance of an Event of Default (other than a
default that is cured by the payment of the Purchase Price with respect to such
Securities), in which case, upon such return, the Purchase Notice with respect
thereto shall be deemed to have been withdrawn.

 

ARTICLE V

 

PURCHASE
AT THE OPTION OF HOLDERS 

UPON A FUNDAMENTAL CHANGE

 

Section 5.1             Fundamental Change Put.

 

(a)           In the event that a Fundamental
Change shall occur at any time prior to the Stated Maturity, each Holder shall
have the right, at the Holder’s option, but subject to the provisions of this
Section 5.1, to require the Company to purchase, and upon the exercise of
such right, the Company shall purchase, all of such Holder’s Securities, or any
portion of the principal

 

34

 

amount thereof that is equal to $1,000 or an integral
multiple thereof, as directed by such Holder pursuant to this Section 5.1,
on the date designated by the Company (the “Fundamental
Change Purchase Date”) that is a Business Day no later than 35
Business Days after the date of notice pursuant to Section 5.1(b) of
the occurrence of a Fundamental Change (subject to extension to comply with
applicable law).  The Company shall be
required to purchase such Securities at a purchase price in cash equal to 100%
of the principal amount plus any accrued and unpaid interest (including
Contingent Interest and Additional Interest, if any) to, but excluding, the
Fundamental Change Purchase Date (the “Fundamental
Change Purchase Price”).  In
the event that a Fundamental Change Purchase Date is a date that is after any
Record Date but on or before the corresponding Interest Payment Date, the
Company shall be required to pay accrued and unpaid interest and Additional
Interest, if any, to the holder of the repurchased Security and not the Holder
on the Record Date.

 

(b)           No later than 30 days after the
occurrence of a Fundamental Change, the Company shall mail a written notice of
the Fundamental Change by first class mail to the Trustee (and the Paying Agent
if the Trustee is not then acting as Paying Agent) and to each Holder at its
address shown in the Register of the Registrar, and to beneficial owners as
required by applicable law.  The notice
shall include a form of Fundamental Change Purchase Notice to be completed by
the Holder and shall briefly state, as applicable:

 

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

 

(ii)           the
date by which the Fundamental Change Purchase Notice must be delivered to the
Paying Agent in order for a Holder to exercise the purchase right pursuant to
this Section 5.1;

 

(iii)          the
Fundamental Change Purchase Date;

 

(iv)          the
Fundamental Change Purchase Price;

 

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

 

(vi)          briefly,
the conversion rights of the Securities, and that the Holder must satisfy the
requirements set forth in this Indenture in order to convert the Securities;

 

(vii)         the
Conversion Rate and any adjustment to the Conversion Rate, temporary or
permanent, that will result from the Fundamental Change;

 

(viii)        that
the Securities as to which a Fundamental Change Purchase Notice has been given
may be converted into Common Stock pursuant to ARTICLE XII of this
Indenture only if the Fundamental Change Purchase Notice has been withdrawn in
accordance with the terms of this Indenture;

 

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

 

35

 

(x)            that
the Fundamental Change Purchase Price for any Security as to which a
Fundamental Change Purchase Notice has been duly given and not withdrawn shall
be paid promptly following the later of the Fundamental Change Purchase Date
and the time of surrender of such Note as described in Section 5.1(b)(ix);

 

(xi)           the
procedures the Holder must follow to exercise rights under this
Section 5.1 and a brief description of such rights;

 

(xii)          the
procedures for withdrawing a Fundamental Change Purchase Notice, including a
form of notice of withdrawal;

 

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

 

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

 

At the Company’s
request, the Trustee shall give the notice of purchase right in the Company’s
name and at the Company’s expense; provided,
however, that the Company makes
such request at least five Business Days (unless a shorter period shall be
satisfactory to the Trustee) prior to the date by which such notice of purchase
right must be given to the Holders in accordance with this Section 5.1(b);
provided, further, that the text of the notice of
purchase right shall be prepared by the Company.

 

If any of the
Securities is in the form of a Global Security, then the Company shall modify
such notice to the extent necessary to accord with the procedures of the
Depositary applicable to the purchase of Global Securities.

 

Simultaneously
with delivering the written notice pursuant to this Section 5.1(b), the
Company shall issue a press release containing all information specified in
such written notice through Dow Jones & Company, Inc., Business
Wire or Bloomberg Business News (or, if such organizations are not in existence
at the time of issuance of such press release, such other news or press
organization as is reasonably calculated to broadly disseminate the relevant
information to the public) and publish such information on its corporate
website or through another public medium as it may use at that time.

 

(c)           A Holder may exercise its rights
specified in clause (a) of this Section 5.1 upon delivery of a
written notice (which, in the case of Certificated Securities, shall be in
substantially the form included on the reverse side of the Securities entitled “Option
of Holder to Elect Purchase” and which may be delivered by letter, overnight
courier, hand delivery, facsimile transmission or in any other written form
and, in the case of Global Securities, may be delivered electronically or by
other means in accordance with the Depositary’s customary procedures) of the
exercise of such rights (a “Fundamental
Change Purchase Notice”) to the Paying Agent at any time on or before
the 20th Business Day after the date of the Company’s notice of the Fundamental
Change (subject to extension to comply with applicable law).

 

36

 

The
Fundamental Change Purchase Notice delivered by a Holder shall state
(i) if Certificated Securities have been issued, the certificate number or
numbers of the Security or Securities which the Holder shall deliver to be
purchased (if not certificated, the notice must comply with Applicable
Procedures), (ii) the portion of the principal amount of the Security
which the Holder shall deliver to be purchased, which portion must be $1,000 or
an integral multiple thereof, and (iii) that such Security shall be
purchased by the Company pursuant to the terms and conditions specified in the
Securities and this Indenture.

 

Delivery of a
Security (together with all necessary endorsements) to the Paying Agent by
book-entry transfer or physical delivery prior to, on or after the Fundamental
Change Purchase Date at the offices of the Paying Agent is a condition to
receipt by the Holder of the Fundamental Change Purchase Price therefor; provided, however, that such Fundamental
Change Purchase Price shall be so paid pursuant to this Section 5.1 only
if the Security so delivered to the Paying Agent shall conform in all respects
to the description thereof in the related Fundamental Change Purchase Notice,
as determined by the Company.

 

The Company
shall purchase from the Holder thereof, pursuant to this Section 5.1, a
portion of a Security if the principal amount of such portion is $1,000 or an
integral multiple thereof. Provisions of the Indenture that apply to the
purchase of all of a Security also apply to the purchase of such portion of
such Security.

 

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

 

Anything
herein to the contrary notwithstanding, in the case of Global Securities, any
Fundamental Change Purchase Notice may be delivered or withdrawn and such
Securities may be surrendered or delivered for purchase in accordance with the
Applicable Procedures as in effect from time to time.

 

(d)           Notwithstanding the foregoing
provisions of this Section 5.1, the Company shall not be required to issue
a Fundamental Change Purchase Notice upon a Fundamental Change if a third party
(i) issues a Fundamental Change Purchase Notice in the manner, at the
times and otherwise in compliance with the requirements set forth in
Section 5.1(b) applicable to a Fundamental Change Purchase Notice
made by the Company and otherwise complies with the provisions of this
ARTICLE V as if it were the Company, and (ii) purchases and pays for
all Securities validly tendered and not withdrawn pursuant to such Fundamental
Change Purchase Notice.

 

Section 5.2             Effect of Fundamental Change
Purchase Notice; Withdrawal of Fundamental Change Purchase Notice.

 

(a)           Upon receipt by the Paying Agent of
the Fundamental Change Purchase Notice specified in Section 5.1(c), the
Holder of the Security in respect of which such Fundamental Change Purchase
Notice was given shall (unless such Fundamental Change Purchase Notice is
withdrawn as specified in the following paragraph) thereafter be entitled to
receive the Fundamental Change Purchase Price with respect to such
Security.  Such Fundamental Change
Purchase Price shall be paid to such Holder, subject to receipt of cash by

 

37

 

the Paying Agent, promptly following the later of
(i) the Fundamental Change Purchase Date with respect to such Security
(provided the conditions in Section 5.1(c) have been satisfied) and
(ii) the time of book-entry transfer or delivery of such Security to the
Paying Agent by the Holder thereof in the manner required by
Section 5.1(c).  Securities in
respect of which a Fundamental Change Purchase Notice has been given by the
Holder thereof may not be converted pursuant to ARTICLE XII on or after
the date of the delivery of such Fundamental Change Purchase Notice unless such
Fundamental Change Purchase Notice has first been validly withdrawn as
specified in the following paragraph.

 

(b)           A Fundamental Change Purchase Notice
may be withdrawn by means of a written notice (which, in the case of
Certificated Securities, may be delivered by letter, overnight courier, hand
delivery, facsimile transmission or in any other written form and, in the case
of Global Securities, may be delivered electronically or by other means in
accordance with the Depositary’s customary procedures) of withdrawal delivered
by the Holder to the Paying Agent at any time prior to 5:00 p.m., Eastern
Standard time, on the Business Day immediately prior to the Fundamental Change
Purchase Date (or such later time as may be required by applicable law), specifying
(i) the principal amount of the Security or portion thereof (which must be
a principal amount of $1,000 or an integral multiple thereof) with respect to
which such notice of withdrawal is being submitted, (ii) if certificated
Securities have been issued, the certificate numbers of the withdrawn
Securities, or if not certificated, such notice must comply with Applicable
Procedures, and (iii) the principal amount, if any, which remains subject
to the Fundamental Change Purchase Notice. 
If a Fundamental Change Purchase Notice has been properly withdrawn
pursuant to this Section 5.2(b) prior to the Fundamental Change
Purchase Date, the Company shall not be obligated to purchase those Securities
so identified in such notice of withdrawal.

 

Section 5.3             Deposit of Fundamental Change
Purchase Price.

 

Prior to
10:00 a.m., Eastern Standard time, on the applicable Fundamental Change
Purchase Date, the Company shall irrevocably deposit with the Paying Agent an
amount of cash (in immediately available funds if deposited on such Business
Day) sufficient to pay the aggregate Fundamental Change Purchase Price of all
the Securities or portions thereof which are to be purchased as of such
Fundamental Change Purchase Date.

 

If the Paying
Agent holds, in accordance with the terms hereof, at 10:00 a.m., Eastern
Standard time, on the applicable Fundamental Change Purchase Date, cash
sufficient to pay the Fundamental Change Purchase Price of any Securities for
which a Fundamental Change Purchase Notice has been tendered and not withdrawn
pursuant to Section 5.2(b), then, on such Fundamental Change Purchase
Date, such Securities shall cease to be outstanding and interest and Additional
Interest, if any, on such Securities shall cease to accrue, whether or not such
Securities are delivered to the Paying Agent, and the rights of the Holders in
respect thereof shall terminate (other than the right to receive the
Fundamental Change Purchase Price upon delivery of such Securities).

 

The Company
shall make a Public Notice of the aggregate principal amount of Securities
purchased as a result of such Fundamental Change on or as soon as practicable
after the Fundamental Change Purchase Date.

 

38

 

Section 5.4             Securities Purchased in Part.

 

Any Certificated
Security that is to be purchased only in part shall be surrendered at the
office of the Paying Agent (with, if the Company or the Trustee so requires,
due endorsement by, or a written instrument of transfer in form satisfactory to
the Company and the Trustee duly executed by, the Holder thereof or such Holder’s
attorney duly authorized in writing) and promptly after the Fundamental Change
Purchase Date the Company shall execute and the Trustee shall authenticate and
deliver to the Holder of such Security, without charge, a new Security or
Securities, of any authorized denomination or denominations as may be requested
by such Holder, in aggregate principal amount equal to, and in exchange for,
the portion of the principal amount of the Security so surrendered that is not
purchased.

 

With respect
to any Global Security which is to be purchased only in part, promptly after
the applicable Fundamental Change Purchase Date the Trustee may make a notation
upon such Global Security to reduce the principal amount of the Global Security
by the amount of Securities purchased in part.

 

Section 5.5             Covenant to Comply With
Securities Laws Upon Purchase of Securities.

 

When complying
with the provisions of this ARTICLE V, and subject to any exemptions
available under applicable law as determined by the Company at such time, the
Company shall:

 

(a)           if such offer or purchase constitutes
an “issuer tender offer” for purposes of Rule 13e-4 (which term, as used
herein, includes any successor provision thereto) under the Exchange Act at the
time of such offer or purchase, (i) if applicable, comply with
Rule 13e- 4 and Rule 14e-1 (or any successor provision) under the
Exchange Act and (ii) file the related Schedule TO (or any successor
schedule, form or report) if required under the Exchange Act; and

 

(b)           otherwise comply with all applicable
federal and state securities laws so as to permit the rights and obligations
under this ARTICLE V to be exercised in the time and in the manner
specified therein.

 

Section 5.6             Repayment to the Company.

 

To the extent
that the aggregate amount of cash deposited by the Company pursuant to
Section 5.3 exceeds the aggregate Fundamental Change Purchase Price of the
Securities or portions thereof which the Company is obligated to purchase as of
the Fundamental Change Purchase Date then, promptly after the Fundamental
Change Purchase Date, the Paying Agent shall return any such excess to the
Company together with interest, if any, thereon.

 

39

 

ARTICLE VI

 

COVENANTS

 

Section 6.1             Payment of Securities.

 

The Company
shall pay interest (including Contingent Interest, if any) on the Securities as
provided in the Securities.  The Company
shall promptly make all payments in respect of the Securities on the dates and
in the manner provided in the Securities or pursuant to this Indenture.  Principal, Redemption Price, Purchase Price
and Fundamental Change Purchase Price and accrued and unpaid interest
(including Contingent Interest, if any) shall be considered paid on the
applicable date due if by 10:00 a.m., Eastern Standard time, on such date
the Paying Agent holds, in accordance with this Indenture, cash sufficient to
pay all such amounts then due.  The
Company shall, to the fullest extent permitted by law, pay interest on overdue
principal and overdue installments of interest (including Contingent Interest,
if any) at the rate borne by the Securities per annum.  In addition, pursuant to the Registration
Rights Agreement, the Company shall pay Additional Interest, if any, on the
Securities on the dates and in the manner provided in the Securities and this
Indenture, including as set forth in Section 6.9 hereof.

 

Payment of the
principal of and interest (including Contingent Interest, if any) on the
Securities shall be in such coin or currency of the United States of America as
at the time of payment is legal tender for payment of public and private debts.

 

Subject to
Section 4.1 and Section 5.1, the Company shall pay interest
(including Contingent Interest, if any) on the Securities to the Person in
whose name the Securities are registered at the close of business on the Record
Date next preceding the corresponding Interest Payment Date.  Any such interest (including Contingent
Interest, if any) not so punctually paid or duly provided for shall forthwith
cease to be payable to the Holder on such Record Date and may be paid
(a) to the Person in whose name the Securities are registered at the close
of business on a special record date (“Special Record Date”)
for the payment of such defaulted interest (including Contingent Interest, if
any) to be fixed by the Trustee, notice whereof shall be given to the Holders
not less than 10 days prior to such Special Record Date or (b) at any time
in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Securities may be listed, and upon such notice
as may be required by such exchange.

 

The Holder
must surrender the Securities to the Paying Agent to collect payment of
principal.  Payment of cash interest
(including Contingent Interest, if any) on Certificated Securities in the
aggregate principal amount of $5,000,000 or less shall be made by check mailed
to the address of the Person entitled thereto as such address appears in the Register,
and payment of cash interest (including Contingent Interest, if any) on
Certificated Securities in aggregate principal amount in excess of $5,000,000
shall be made by wire transfer in immediately available funds at the election
of such Holder if requested in writing at least 10 Business Days prior to the
relevant Interest Payment Date and otherwise by check mailed as aforesaid.  Notwithstanding the foregoing, so long as the
Securities are registered in the name of a Depositary or its nominee, all payments
with respect to the Securities shall be made by wire transfer of immediately
available funds to the account of the Depositary or its nominee.  At the Stated Maturity, interest (including

 

40

 

Contingent Interest and Additional Interest, if any) on Certificated
Securities will be payable at the office or agency of the Company described in
Section 6.5 herein.

 

Section 6.2             SEC and Other Reports to the
Trustee.

 

(a)           The Company shall ensure delivery to
the Trustee within 15 days after it files such annual and quarterly reports,
information, documents and other reports with the SEC, copies of its annual
report and of the information, documents and other reports (or copies of such
portions of any of the foregoing as the SEC may by rules and regulations
prescribe) which the Company is required to file with the SEC pursuant to
Section 13 or 15(d) of the Exchange Act in accordance with TIA
§ 314(a).  In the event the Company
is at any time no longer subject to the reporting requirements of
Section 13 or 15(d) of the Exchange Act, it shall continue to provide
the Trustee with reports containing substantially the same information as would
have been required to be filed with the SEC had the Company continued to have
been subject to such reporting requirements. 
In such event, such reports shall be provided at the times the Company
would have been required to provide reports had it continued to have been
subject to such reporting requirements. 
The Company also shall comply with the other provisions of TIA
§ 314(a).  Delivery of such reports,
information and documents to the Trustee is for informational purposes only and
the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained
therein, including the Company’s compliance with any of its covenants hereunder
(as to which the Trustee is entitled to rely conclusively on Officers’
Certificates).  The Trustee shall have no
duty or responsibility to review such reports, information or documents.  In the event that the Company shall provide
the Trustee with any such report and shall not have filed such report on EDGAR,
the Trustee shall promptly mail copies of such reports to each Holder (other
than reports provided solely pursuant to TIA § 314(a)).

 

(b)           The Company intends to file the
reports referred to in Section 6.2(a) with the SEC in electronic form
pursuant to Regulation S-T of the SEC using the SEC’s Electronic Data
Gathering, Analysis and Retrieval (“EDGAR”)
system.  The Company shall notify the
Trustee in the manner prescribed herein of each such filing.  The Trustee is hereby authorized and directed
to access the EDGAR system for purposes of retrieving the reports so
filed.  Compliance with the foregoing
shall constitute delivery by the Company of such reports to the Trustee in
compliance with the provisions of Section 6.2(a) and TIA
§ 314(a).  The Trustee shall have no
duty to search for or obtain any electronic or other filings that the Company
makes with the SEC, regardless of whether such filings are periodic,
supplemental or otherwise.  Delivery of
the reports, information and documents to the Trustee pursuant to this
Section 6.2(b) shall be solely for the purposes of compliance with
this Section 6.2(b) and with TIA § 314(a).  The Trustee’s receipt of such reports,
information and documents shall not constitute notice to it of the content
thereof or of any matter determinable from the content thereof, including the
Company’s compliance with any of its covenants hereunder, as to which the
Trustee is entitled to rely upon Officers’ Certificates.

 

Section 6.3             Compliance Certificate.

 

The Company
shall deliver to the Trustee within 120 days after the end of each fiscal year
of the Company an Officers’ Certificate, stating whether or not to the
knowledge of

 

41

 

the signers thereof, the Company is in compliance with all conditions
and covenants under this Indenture.

 

Section 6.4             Further Instruments and Acts.

 

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

 

Section 6.5             Maintenance of Office or Agency
of the Trustee, Registrar, Paying Agent and Conversion Agent.

 

The Company
shall maintain in the Borough of Manhattan, New York, New York, an office or
agency of the Trustee, Registrar, Paying Agent and Conversion Agent where
Securities may be presented or surrendered for payment, where Securities may be
surrendered for registration of transfer, exchange, redemption, repurchase or
conversion and where notices and demands to or upon the Company in respect of
the Securities and this Indenture may be served.  The office of the Trustee located at 101
Barclay Street, New York, New York 10286 shall initially be such office or
agency for all of the aforesaid purposes. 
The Company shall give prompt written notice to the Trustee of the
location, and of any change in the location, of any such office or agency
(other than a change in the location of the office of the Trustee).  If at any time the Company shall fail to maintain
any such required office or agency or shall fail to furnish the Trustee with
the address thereof, such presentations, surrenders, notices and demands may be
made or served at the address of the Trustee set forth in Section 15.2.

 

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

 

Section 6.6             Delivery of Information Required
Under Rule 144A.

 

Prior to the
expiration of the holding period applicable to sales of the Securities (and the
shares of Common Stock issued upon conversion thereof) under Rule 144(k)
of the Securities Act (or any successor provision), upon the request of a
Holder or any beneficial owner of Securities or holder or beneficial owner of Common
Stock issued upon conversion thereof, the Company shall, during any period in
which it is not subject to Section 13 or 15(d) of the Exchange Act,
promptly furnish or cause to be furnished the information required pursuant to
Rule 144A(d)(4) under the Securities Act to such Holder or any
beneficial owner of Securities or holder or beneficial owner of Common Stock
issued upon conversion thereof, or to a prospective purchaser of any such
security designated by any such holder, as the case may be, to the extent required
to permit compliance by such Holder or holder with Rule 144A under the
Securities Act in connection with the resale of any such security.

 

42

 

Section 6.7             Waiver of Stay, Extension or
Usury Laws.

 

The Company
covenants (to the extent that it may lawfully do so) that it shall not at any
time insist upon, or plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay or extension law or any usury or other law
wherever enacted, now or at any time hereafter in force, which would prohibit
or forgive the Company from paying all or any portion of the principal amount,
Redemption Price, Purchase Price or Fundamental Change Purchase Price in
respect of the Securities, or any interest (including Contingent Interest and
Additional Interest, if any) on such amounts, as contemplated herein, or which
may affect the covenants or the performance of this Indenture; and the Company
(to the extent that it may lawfully do so) hereby expressly waives all benefit
or advantage of any such law, and covenants that it shall not hinder, delay or
impede the execution of any power herein granted to the Trustee, but shall
suffer and permit the execution of every such power as though no such law had
been enacted.

 

Section 6.8             Statement by Officers as to
Default.

 

The Company
shall deliver to the Trustee, as soon as practicable and in any event within
five Business Days after the Company becomes aware of the occurrence of any
Default or Event of Default, an Officers’ Certificate setting forth the details
of such Default or Event of Default and the action which the Company proposes
to take with respect thereto.

 

Section 6.9             Additional Interest.

 

The Company
shall pay Additional Interest, if any, on the Securities as required by the
Registration Rights Agreement and as provided in the Securities and this
Indenture.  The Company shall promptly
make all payments of Additional Interest in respect of the Securities on the
dates and in the manner provided in the Securities or pursuant to this
Indenture.  Additional Interest, if any,
shall be considered paid on the applicable date due if either (a) by
11:00 a.m., Eastern Standard time, on such date the Paying Agent holds, in
accordance with this Indenture, cash sufficient to pay all such amounts then
due or (b) on such date, any Holder to whom Additional Interest is owed
has received a check in an amount sufficient to pay all such amounts then
due.  The Company shall, to the fullest
extent permitted by law, pay interest on overdue Additional Interest, if any,
at the rate borne by the Securities per annum.

 

Payment of
Additional Interest, if any, on the Securities shall be in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts.

 

Subject to
Section 4.1 and Section 5.1, the Company shall pay Additional
Interest, if any, quarterly in arrears on February 1, May 1,
August 1 and November 1 of each year, or if any such day is not a
Business Day, on the next succeeding Business Day (each, an “Additional Interest Payment Date”) solely to Holders to whom
such Additional Interest is owed pursuant to the Registration Rights
Agreement.  Payment of Additional
Interest, if any, will be made, at the Company’s option, either (a) by
check mailed to the Holders at their addresses set forth on the Election and
Notice (as defined in the Registration Rights Agreement) delivered to the
Company in accordance with the provisions of the Registration Rights Agreement
or (b)

 

43

 

pursuant to the applicable procedures of DTC.  Any such Additional Interest, if any, not so
punctually paid or duly provided for shall forthwith cease to be payable to
such Holder on such Additional Interest Payment Date and may be paid
(a) by check mailed to Holders entitled to receive Additional Interest to
their addresses set forth in the Election and Questionnaire, (b) to the
Person in whose name the Securities are registered at the close of business on
a special record date for the payment of such defaulted Additional Interest, if
any, to be fixed by the Trustee, notice whereof to be given to such Holders not
less than 10 days prior to such special record date or (c) at any time in
any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Securities may be listed, and upon such notice
as may be required by such exchange.

 

If Additional
Interest is payable by the Company pursuant to the Registration Rights
Agreement, the Company shall deliver to the Trustee a certificate to that
effect stating (i) the amount of such Additional Interest that is payable
and (ii) the date on which such Additional Interest is payable.  Unless and until a Responsible Officer of the
Trustee receives at the Corporate Trust Office such a certificate, the Trustee
may assume without inquiry that no such Additional Interest is payable.

 

Section 6.10           Additional Subsidiary Guarantees.

 

If the Company
or any of its Subsidiaries acquires or creates another Domestic Subsidiary
after the date of this Indenture, then that newly acquired or created Domestic
Subsidiary will become a Guarantor and execute a supplemental indenture in
substantially the form attached hereto as Exhibit E and deliver an Opinion
of Counsel reasonably satisfactory to the Trustee within 45 Business Days of
the date on which it was acquired or created, provided that any Domestic
Subsidiary that constitutes an Immaterial Subsidiary need not become a
Guarantor until such time as it ceases to be an Immaterial Subsidiary, and provided
further that any Domestic Subsidiary that is not directly or indirectly
wholly-owned by the Company or a Guarantor need not become a Guarantor unless
(a) such Domestic Subsidiary guarantees any other Indebtedness of the
Company or a Subsidiary or (b) such Domestic Subsidiary, directly or
indirectly, creates, incurs, assumes, guarantees or otherwise becomes directly
or indirectly liable, contingently or otherwise, with respect to any Indebtedness,
other than Indebtedness owed to the Company or a Subsidiary.  The form of such Subsidiary Guarantee is
attached as Exhibit B hereto.

 

Section 6.11           Contingent Debt Tax Treatment.

 

The Company agrees, and, by acceptance of a
Security, each beneficial holder of a Security will be deemed to have agreed,
for U.S. federal income tax purposes, that (i) the Securities are
contingent payment debt instruments as defined in Treasury Regulations
Section 1.1275-4(b), (ii) each beneficial holder shall be bound by
the Company’s application of the Treasury Regulations to the Securities,
including the Company’s determination that the rate at which interest will be
deemed to accrue on the Securities for U.S. federal income tax purposes will be
7.375% compounded semi-annually, which is the rate comparable to the rate at
which the Company would borrow on a noncontingent, nonconvertible basis with
terms and conditions

 

44

 

otherwise comparable to the Securities, (iii) each beneficial
holder shall use the projected payment schedule with respect to the
Securities determined by the Company, as required by Treasury Regulations
Section 1.1275-4(b)(4)(iv), to determine its interest accruals and
adjustments as provided in Treasury Regulations Section 1.1275-4(b), and
(iv) the Company and each beneficial holder will not take any position on
a tax return inconsistent with (i), (ii), or (iii), unless required by
applicable law.

 

ARTICLE VII

 

SUCCESSOR
CORPORATION

 

Section 7.1             When Company May Merge or
Transfer Assets.

 

The Company
shall not consolidate with or merge with or into any other Person or convey,
transfer, sell, lease or otherwise dispose of all or substantially all of its
properties and assets to any Person, unless:

 

(a)           either (i) the Company is the
surviving corporation or (ii) the resulting, surviving or transferee
Person is organized and existing under the laws of the United States, any State
thereof or the District of Columbia;

 

(b)           such Person assumes all of the
Company’s obligations under the Securities, this Indenture and the Registration
Rights Agreement under a supplemental indenture in a form reasonably
satisfactory to the Trustee;

 

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

 

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

 

For purposes
of the foregoing, the transfer (by lease, assignment, sale or otherwise) of the
properties and assets of one or more Subsidiaries, which, if such assets were
owned by the Company, together with the assets of all of the other Subsidiaries
of the Company, would constitute all or substantially all of the properties and
assets of the Company, shall be deemed to be the transfer of all or
substantially all of the properties and assets of the Company unless such
transfer is to the Company or another Subsidiary.

 

The successor
Person formed by such consolidation or into which the Company is merged or the
successor Person to which such conveyance, transfer, sale, lease or other
disposition is made shall succeed to, and be substituted for, and may exercise
every right and power of, the Company under this Indenture with the same effect
as if such successor had been named as the Company herein; and thereafter,
except in the case of a lease and any obligations the Company may have under a
supplemental indenture, the Company shall be discharged from

 

45

 

all obligations and covenants under this Indenture, the Securities and
the Registration Rights Agreement. 
Subject to Section 11.6, the Company, the Trustee and the successor
Person shall enter into a supplemental indenture to evidence the succession and
substitution of such successor Person and such discharge and release of the
Company.

 

ARTICLE VIII

 

DEFAULTS
AND REMEDIES

 

Section 8.1             Events of Default.

 

So long as any
Securities are outstanding, each of the following shall be an “Event of Default”:

 

(a)           the failure by the Company to pay the
principal of or premium, if any, on any Security when the same becomes due and
payable as therein provided or as provided in this Indenture;

 

(b)           the failure by the Company to pay any
accrued and unpaid interest or Additional Interest, if any, on any Security, in
each case, when due and payable, and such default shall continue for a period
of 30 days;

 

(c)           the failure by the Company to convert
any portion of any Security following the exercise by the Holder of the right
to convert such Security into cash or a combination of cash and Common Stock
pursuant to and in accordance with ARTICLE XII;

 

(d)           the failure by the Company to redeem
any Security, or any portion thereof, called for redemption by the Company
pursuant to and in accordance with ARTICLE III;

 

(e)           the failure by the Company to provide
notice in the event of a Fundamental Change in accordance with
Section 5.1(b);

 

(f)            the failure by the Company to
purchase any Security, or any portion thereof, in accordance with
ARTICLE IV or ARTICLE V, upon the exercise by the Holder of such
Holder’s right to require the Company to purchase such Securities pursuant
thereto;

 

(g)           the failure by the Company to perform
or observe any other term, covenant or agreement contained in the Securities or
the Indenture (other than a term, covenant or agreement a default in whose
performance or whose breach is elsewhere in this Section 8.1 specifically
dealt with) for a period of 60 days after written notice of such failure has
been given, by certified mail, (1) to the Company by the Trustee or
(2) to the Company and the Trustee by the Holders of at least 25% in
aggregate principal amount of the Securities then outstanding;

 

(h)           there shall have occurred a default
under any mortgage, indenture or instrument under which there may be issued or
by which there may be secured or evidenced any Indebtedness for money borrowed
by the Company or any of its Subsidiaries (or the payment of which is guaranteed
by the Company or any of its Subsidiaries) whether such Indebtedness or
Subsidiary Guarantee now exists, or is created after the date of this
Indenture, which default (i) is

 

46

 

caused by a failure to pay principal of or interest or
premium, if any, on such Indebtedness prior to the expiration of the grace
period provided in such Indebtedness on the date of such Default (a “Payment Default”) or (ii) results in the acceleration
of such Indebtedness prior to the stated maturity thereof (without such
acceleration being rescinded or annulled), and, in each case, the principal
amount of any such Indebtedness, together with the principal amount of any
other such Indebtedness under which there has bee a Payment Default or the
stated maturity of which has been so accelerated, aggregates $35,000,000 or
more;

 

(i)            there shall be a failure by the
Company or any of its Subsidiaries to pay final judgments aggregating in excess
of $25,000,000 (to the extent not covered by independent third-party insurance
as to which the insurer does not dispute coverage), which judgments are not
paid, waived, satisfied, discharged or stayed for a period of 60 days;

 

(j)            the Company or any Significant
Subsidiary, or any group of two or more Subsidiaries that, taken as a whole,
would constitute a Significant Subsidiary, pursuant to or under or within the
meaning of any Bankruptcy Law:

 

(i)            commences
a voluntary case or proceeding;

 

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

 

(iii)          consents
to the appointment of a Custodian of it or for any substantial part of its
property;

 

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

 

(v)           files
a petition in bankruptcy or answer or consent seeking reorganization or relief;
or

 

(vi)          consents
to the filing of such petition or the appointment of or taking possession by a
Custodian;

 

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

 

(i)            is
for relief against the Company or any Significant Subsidiary in an involuntary
case or proceeding, or adjudicates the Company or any Significant Subsidiary
insolvent or bankrupt;

 

(ii)           appoints
a Custodian of the Company or any Significant Subsidiary or for any substantial
part of the property of either; or

 

(iii)          orders
the winding up or liquidation of the Company or any Significant Subsidiary,

 

and the order of decree remains unstayed and
in effect for 60 days; and

 

47

 

(l)            except as permitted by this
Indenture, any guarantee of a Guarantor that is a Significant Subsidiary or a
group of Guarantors that, taken as a whole, would constitute a Significant
Subsidiary, shall be held in any judicial proceeding to be unenforceable or
invalid or shall cease for any reason to be in full force and effect or any
Guarantor that is a Significant Subsidiary, or any Person acting on behalf of
any Guarantor that is a Significant Subsidiary, shall deny or disaffirm its
obligations under its guarantee.

 

Section 8.2             Acceleration.

 

If an Event of
Default (other than an Event of Default specified in Section 8.1(j) or
Section 8.1(k) with respect to the Company) occurs and is continuing (including
an Event of Default specified in Section 8.1(j) or Section 8.1(k)
with respect to one or more Significant Subsidiaries), the Trustee by notice to
the Company, or the Holders of at least 25% in aggregate principal amount of
the Securities at the time outstanding by notice to the Company and the
Trustee, may declare the principal of, and accrued and unpaid interest
(including Contingent Interest and Additional Interest, if any) on, all the
Securities to be immediately due and payable. 
Upon such a declaration, such accelerated amount shall be due and
payable immediately.

 

If an Event of
Default specified in Section 8.1(j) or Section 8.1(k) occurs and is
continuing, the principal of, and accrued and unpaid interest (including
Contingent Interest and Additional Interest, if any) on, all the Securities
shall become and be immediately due and payable without any declaration or
other act on the part of the Trustee or any Holders.

 

Section 8.3             Other Remedies.

 

If an Event of
Default occurs and is continuing, the Trustee may, but shall not be obligated
to, pursue any available remedy to collect the payment of the principal plus
accrued and unpaid interest (including Contingent Interests and Additional
Interest, if any) on the Securities or to enforce the performance of any
provision of the Securities or this Indenture.

 

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

 

Section 8.4             Waiver of Past Defaults;
Rescission of Acceleration.

 

The Holders of
a majority in aggregate principal amount of the Securities then outstanding so
accelerated in accordance with Section 8.2 by written notice to the
Trustee may, on behalf of the Holders of all such Securities, rescind an
acceleration or waive any existing Default or Event of Default and its
consequences under this Indenture except a continuing Default or Event of
Default in the payment of interest (including Additional Interest, if any) or
premium on, or the principal, Redemption Price, Purchase Price or Fundamental
Change Purchase Price of any Security, or in respect of a failure to convert
any Security into Common Stock (or cash or a combination of cash and Common
Stock) as required, or in respect of a covenant or provision hereunder that
cannot be modified or amended without the consent of the

 

48

 

Holder of each Security outstanding. 
Notwithstanding anything to the contrary in this Section 8.4, with
respect to a Default in the payment of Additional Interest only, any Holder to
whom such Additional Interest was due and payable may rescind an acceleration
or waive such existing Default as it relates to such Holder.

 

When a Default is
waived, it is deemed cured, but no such waiver shall extend to any subsequent
or other Default or impair any consequent right.  This Section 8.4 shall be in lieu of
§ 316(a)1(B) of the TIA and such § 316(a)1(B) is hereby
expressly excluded from this Indenture, as permitted by the TIA

 

Section 8.5             Control by Majority.

 

The Holders of
a majority in aggregate principal amount of the Securities at the time
outstanding may direct the time, method and place of conducting any proceeding
for any remedy available to the Trustee or of exercising any trust or power
conferred on the Trustee.  However, the
Trustee may refuse to follow any direction that conflicts with law or this
Indenture or that the Trustee determines in good faith is prejudicial to the
rights of other Holders or would involve the Trustee in personal liability
unless the Trustee is offered indemnity satisfactory to it.  This Section 8.5 shall be in lieu of
§ 316(a)1(A) of the TIA and such § 316(a)1(A) is hereby
expressly excluded from this Indenture, as permitted by the TIA.

 

Section 8.6             Limitation on Suits.

 

Except to
enforce the right to receive payment of principal, premium (if any), interest
or Additional Interest (if any) when due, no Holder of Securities may pursue
any remedy with respect to this Indenture or such Securities unless:

 

(a)           such Holder has previously given the
Trustee notice that an Event of Default is continuing;

 

(b)           Holders of at least 25% in aggregate
principal amount of the outstanding Securities have requested the Trustee to
pursue the remedy;

 

(c)           such Holders have offered the Trustee
reasonable security or indemnity satisfactory to it against any loss, liability
or expense;

 

(d)           the Trustee has not complied with
such request within 60 days after the receipt thereof and the offer of
security or indemnity; and

 

(e)           Holders of a majority in aggregate
principal amount of the outstanding Securities have not given the Trustee a
direction inconsistent with such request within such 60-day period.

 

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

 

49

 

Section 8.7             Rights of Holders to Receive
Payment or to Convert.

 

Notwithstanding
any other provision of this Indenture, the right of any Holder to receive
payment of the principal, Redemption Price, Purchase Price, Fundamental Change
Purchase Price, interest and Additional Interest, if any, in respect of the
Securities held by such Holder, on or after the respective due dates expressed
in the Securities and in this Indenture, and to convert such Securities in
accordance with ARTICLE XII, or to bring suit for the enforcement of any
such payment on or after such respective dates or the right to convert, is
absolute and unconditional and shall not be impaired or affected adversely
without the consent of such Holder.

 

Section 8.8             Collection Suit by Trustee.

 

If an Event of
Default described in Section 8.1(a), Section 8.1(b),
Section 8.1(d) or Section 8.1(f) occurs and is continuing,
the Trustee may recover judgment in its own name and as trustee of an express
trust against the Company or another obligor on the Securities for the whole
amount owing with respect to the Securities and the amounts provided for in
Section 9.7.

 

Section 8.9             Trustee May File Proofs of
Claim.

 

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

 

(a)           to file and prove a claim for the
whole amount of the principal, Redemption Price, Purchase Price, Fundamental
Change Purchase Price, interest and Additional Interest, if any, and to file
such other papers or documents as may be necessary or advisable in order to
have the claims of the Trustee (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel or any other amounts due the Trustee under Section 9.7) and of
the Holders allowed in such judicial proceeding, and

 

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

 

and any custodian, receiver, assignee,
trustee, liquidator, sequestrator or similar official in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the
Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay the Trustee any amount due it for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, and any other amounts due the Trustee under
Section 9.7.

 

50

 

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

 

Section 8.10           Priorities.

 

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

 

FIRST:  to the Trustee for amounts due under
Section 9.7;

 

SECOND: 
to Holders for amounts due and unpaid on the Securities for the
principal, Redemption Price, Purchase Price, Fundamental Change Purchase Price,
interest (including Contingent Interest and Additional Interest, if any), as
the case may be, ratably, without preference or priority of any kind, according
to such amounts due and payable on the Securities; and

 

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

 

The Trustee
may fix a Record Date and payment date for any payment to Holders pursuant to
this Section 8.10.  At least 10 days
prior to such Record Date, the Trustee shall mail to each Holder and the
Company a notice that states the Record Date, the payment date and the amount
to be paid.

 

Section 8.11           Undertaking for Costs.

 

In any suit
for the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as Trustee, a court
in its discretion may require the filing by any party litigant (other than the
Trustee) in the suit of an undertaking to pay the costs of the suit, and the
court in its discretion may assess reasonable costs, including reasonable
attorneys’ fees and expenses, against any party litigant in the suit, having
due regard to the merits and good faith of the claims or defenses made by the
party litigant.  This Section 8.11
does not apply to a suit by the Trustee, a suit by a Holder pursuant to
Section 8.7 or a suit by Holders of more than 10% in aggregate principal
amount of the Securities at the time outstanding.  This Section 8.11 shall be in lieu of
§ 315(e) of the TIA and such § 315(e) is hereby expressly
excluded from this Indenture, as permitted by the TIA.

 

ARTICLE IX

 

TRUSTEE

 

Section 9.1             Duties of Trustee.  (a)  If an Event of Default has
occurred and is continuing, the Trustee will exercise such of the rights and
powers vested in it by this Indenture, and use the same degree of care and
skill in its exercise, as a prudent person would exercise or use under the
circumstances in the conduct of such person’s own affairs.

 

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

 

51

 

(i)            the
duties of the Trustee will be determined solely by the express provisions of
this Indenture and the Trustee need perform only those duties that are
specifically set forth in this Indenture and no others, and no implied
covenants or obligations shall be read into this Indenture against the Trustee;
and

 

(ii)           in
the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the Trustee and conforming
to the requirements of this Indenture. 
However, in the case of certificates specifically required by any
provision herein to be furnished to it, the Trustee will examine the
certificates and opinions to determine whether or not they conform to the
requirements of this Indenture.

 

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

 

(i)            this
paragraph does not limit the effect of paragraph (b) of this Section 9.1;

 

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

 

(iii)          the
Trustee will not be liable with respect to any action it takes or omits to take
in good faith in accordance with a direction received by it pursuant to Section 8.5
hereof.

 

(d)           Whether or not therein expressly so
provided, every provision of this Indenture that in any way relates to the
Trustee is subject to paragraphs (a), (b), and (c) of
this Section 9.1.

 

(e)           No provision of this Indenture will
require the Trustee to expend or risk its own funds or incur any
liability.  The Trustee will be under no
obligation to exercise any of its rights and powers under this Indenture at the
request of any Holders, unless such Holder has offered to the Trustee security
and indemnity satisfactory to it against any loss, liability or expense.

 

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

 

Section 9.2             Rights of Trustee.  (a)  The Trustee may conclusively rely
upon any document (whether in original or facsimile form) believed by it to be
genuine and to have been signed or presented by the proper Person.  The Trustee need not investigate any fact or
matter stated in the document.

 

(b)           Before the Trustee acts or refrains
from acting, it may require an Officers’ Certificate or an Opinion of Counsel
or both.  The Trustee will not be liable
for any action it takes or omits to take in good faith in reliance on such
Officers’ Certificate or Opinion of Counsel. 
The Trustee may consult with counsel of its own selection and the advice
of such

 

52

 

counsel or any Opinion of Counsel will be full and
complete authorization and protection from liability in respect of any action
taken, suffered or omitted by it hereunder in good faith and in reliance
thereon.

 

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

 

(d)           The Trustee will not be liable for
any action it takes or omits to take in good faith that it believes to be
authorized or within the rights or powers conferred upon it by this Indenture.

 

(e)           Unless otherwise specifically
provided in this Indenture, any demand, request, direction or notice from the
Company will be sufficient if signed by an Officer of the Company.

 

(f)            The Trustee will be under no
obligation to exercise any of the rights or powers vested in it by this
Indenture at the request or direction of any of the Holders unless such Holders
have offered to the Trustee reasonable security or indemnity satisfactory to it
against the costs, expenses and liabilities that might be incurred by it in
compliance with such request or direction.

 

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

 

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

 

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

 

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

 

Section 9.3             Individual Rights of Trustee.  The Trustee in its individual or any other
capacity may become the owner or pledgee of Securities and may otherwise deal
with the Company or any Affiliate of the Company with the same rights it would
have if it were not Trustee.  However, in
the event that the Trustee acquires any conflicting interest it must eliminate
such conflict within 90 days, apply to the SEC for permission to continue as
trustee (if

 

53

 

this Indenture has
been qualified under the TIA) or resign. 
Any Agent may do the same with like rights and duties.  The Trustee is also subject to Sections
9.10 and 9.11 hereof.

 

Section 9.4             Trustee’s Disclaimer.  The Trustee will not be responsible for and
makes no representation as to the validity or adequacy of this Indenture or the
Securities, it shall not be accountable for the Company’s use of the proceeds
from the Securities or any money paid to the Company or upon the Company’s
direction under any provision of this Indenture, it will not be responsible for
the use or application of any money received by any Paying Agent other than the
Trustee, and it will not be responsible for any statement or recital herein or
any statement in the Securities or any other document in connection with the
sale of the Securities or pursuant to this Indenture other than its certificate
of authentication.

 

Section 9.5             Notice of Defaults.  If a Default or Event of Default occurs and
is continuing and if it is known to the Trustee, the Trustee will mail to
Holders of Securities a notice of the Default or Event of Default within 90
days after it occurs.  Except in the case
of a Default or Event of Default in payment of principal of and premium, if
any, or interest on, any Note, the Trustee may withhold the notice if and so
long as a committee of its Responsible Officers in good faith determines that
withholding the notice is in the interests of the Holders of the Securities.

 

Section 9.6             Reports by Trustee to Holders of
the Securities.  (a)  Within 60
days after each May 15 beginning with the May 15 following the date
of this Indenture, and for so long as Securities remain outstanding, the
Trustee will mail to the Holders of the Securities a brief report dated as of
such reporting date that complies with TIA § 313(a) (but if no event
described in TIA § 313(a) has occurred within the twelve months
preceding the reporting date, no report need be transmitted).  The Trustee also will comply with TIA
§ 313(b)(2).  The Trustee will also
transmit by mail all reports as required by TIA § 313(c).

 

(b)           A copy of each report at the time of
its mailing to the Holders of Securities will be mailed by the Trustee to the
Company and filed by the Trustee with the SEC and each stock exchange on which
the Securities are listed in accordance with TIA § 313(d).  The Company will promptly notify the Trustee
when the Securities are listed on any stock exchange.

 

Section 9.7             Compensation and Indemnity.  (a)  The Company will pay to the Trustee
from time to time reasonable compensation for its acceptance of this Indenture
and services hereunder.  The Trustee’s
compensation will not be limited by any law on compensation of a trustee of an
express trust.  The Company will
reimburse the Trustee promptly upon request for all reasonable disbursements,
advances and expenses incurred or made by it in addition to the compensation
for its services.  Such expenses will
include the reasonable compensation, disbursements and expenses of the Trustee’s
agents and counsel.

 

(b)           The Company and the Guarantors,
jointly and severally, will indemnify the Trustee against any and all losses,
liabilities, claims, damages or expenses incurred by it arising out of or in
connection with the acceptance or administration of its duties under this
Indenture, including the costs and expenses of enforcing this Indenture against
the Company and the Guarantors (including this Section 9.7) and
defending itself against any claim (whether asserted by the Company, the
Guarantors, any Holder or any other Person) or liability in

 

54

 

connection with the exercise or performance of any of
its powers or duties hereunder, except to the extent any such loss, liability,
claim, damage or expense as shall be determined to have been caused by its own
negligence or willful misconduct.  The
Trustee, upon a Responsible Officer receiving written notice thereof, will
notify the Company promptly of any claim for which it may seek indemnity.  Failure by the Trustee to so notify the
Company will not relieve the Company or any of the Guarantors of their obligations
hereunder.  The Company or such Guarantor
will defend the claim and the Trustee will cooperate in the defense.  The Trustee may have separate counsel and the
Company will pay the reasonable fees and expenses of such counsel.  Neither the Company nor any Guarantor need
pay for any settlement made without its consent, which consent will not be
unreasonably withheld.

 

(c)           The obligations of the Company and
the Guarantors under this Section 9.7 will survive the satisfaction
and discharge of this Indenture.

 

(d)           To secure the Company’s and the Guarantors’
payment obligations in this Section 9.7, the Trustee will have a
Lien prior to the Securities on all money or property held or collected by the
Trustee, except that held in trust to pay principal and interest on particular
Securities.  Such Lien will survive the
satisfaction and discharge of this Indenture.

 

(e)           When the Trustee incurs expenses or
renders services after an Event of Default specified in Section 8.1(j)
or (k) hereof occurs, the expenses and the compensation for the services
(including the fees and expenses of its agents and counsel) are intended to
constitute expenses of administration under any Bankruptcy Law.

 

(f)            The Trustee will comply with the
provisions of TIA § 313(b)(2) to the extent applicable.

 

Section 9.8             Replacement of Trustee.  (a)  A resignation or removal of the
Trustee and appointment of a successor Trustee will become effective only upon
the successor Trustee’s acceptance of appointment as provided in this Section 9.8.

 

(b)           The Trustee may resign in writing at
any time and be discharged from the trust hereby created by so notifying the
Company.  The Holders of a majority in
principal amount of the then outstanding Securities may remove the Trustee by
so notifying the Trustee and the Company in writing.  The Company may remove the Trustee if:

 

(i)            the
Trustee fails to comply with Section 9.10 hereof;

 

(ii)           the
Trustee is adjudged a bankrupt or an insolvent or an order for relief is
entered with respect to the Trustee under any Bankruptcy Law;

 

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

 

(iv)          the
Trustee becomes incapable of acting.

 

(c)           If the Trustee resigns or is removed
or if a vacancy exists in the office of Trustee for any reason, the Company
will promptly appoint a successor Trustee. 
Within one year after the successor Trustee takes office, the Holders of
a majority in principal amount of the

 

55

 

then outstanding Securities may appoint a successor
Trustee to replace the successor Trustee appointed by the Company.

 

(d)                                 If
a successor Trustee does not take office within 60 days after the retiring
Trustee resigns or is removed, the retiring Trustee, the Company, or the
Holders of at least 10% in principal amount of the then outstanding Securities
may petition at the expense of the Company any court of competent jurisdiction
for the appointment of a successor Trustee.

 

(e)                                  If
the Trustee, after written request by any Holder who has been a Holder for at
least six months, fails to comply with Section 9.10 hereof, such
Holder may petition any court of competent jurisdiction for the removal of the
Trustee and the appointment of a successor Trustee.

 

(f)                                    A
successor Trustee will deliver a written acceptance of its appointment to the
retiring Trustee and to the Company. 
Thereupon, the resignation or removal of the retiring Trustee will
become effective, and the successor Trustee will have all the rights, powers
and duties of the Trustee under this Indenture. 
The successor Trustee will mail a notice of its succession to
Holders.  The retiring Trustee will
promptly transfer all property held by it as Trustee to the successor Trustee, provided
all sums owing to the Trustee hereunder have been paid and subject to the Lien
provided for in Section 9.7 hereof. 
Notwithstanding replacement of the Trustee pursuant to this Section 9.8,
the Company’s obligations under Section 9.7 hereof will continue
for the benefit of the retiring Trustee.

 

Section 9.9                                      Successor
Trustee by Merger, etc.  If the
Trustee consolidates, merges or converts into, or transfers all or
substantially all of its corporate trust business to, another corporation, the
successor corporation without any further act will be the successor Trustee.

 

Section 9.10                                Eligibility;
Disqualification.  There will at all
times be a Trustee hereunder that is a corporation organized and doing business
under the laws of the United States of America or of any state thereof that is
authorized under such laws to exercise corporate trustee power, that is subject
to supervision or examination by federal or state authorities and that has a
combined capital and surplus of at least $100,000,000 as set forth in its most
recent published annual report of condition. 
This Indenture will always have a Trustee who satisfies the requirements
of TIA § 310(a)(1), (2) and (5). 
The Trustee is subject to TIA § 310(b).

 

Section 9.11                                Preferential
Collection of Claims Against Company. 
The Trustee is subject to TIA § 311(a), excluding any creditor
relationship listed in TIA § 311(b). 
A Trustee who has resigned or been removed shall be subject to TIA § 311(a) to
the extent indicated therein.

 

ARTICLE X

 

DISCHARGE
OF INDENTURE

 

Section 10.1                                Discharge
of Liability on Securities.

 

When (i) the Company
delivers to the Trustee all outstanding Securities (other than Securities
replaced or repaid pursuant to Section 2.7) for cancellation or (ii) all
outstanding 

 

56

 

Securities
have become due and payable (whether at the Stated Maturity or upon
acceleration, or on any Redemption Date, Purchase Date or Fundamental Change
Purchase Date, or upon conversion) and the Company irrevocably deposits with
the Paying Agent or Conversion Agent cash sufficient to pay all amounts due and
owing on all outstanding Securities (other than Securities replaced pursuant to
Section 2.7) and any Applicable Stock or other property deliverable in
respect of converted Securities, and if in either case the Company pays all
other sums payable hereunder by the Company, then this Indenture shall, subject
to Section 9.7 and subject to the satisfaction of the obligation to make
payments due and satisfaction of any obligations of the Company under ARTICLE XII
to effect settlement upon conversion of the Securities, cease to be of further
effect.  The Trustee shall join in the
execution of a document prepared by the Company acknowledging satisfaction and
discharge of this Indenture on demand of the Company accompanied by an Officers’
Certificate and Opinion of Counsel and at the cost and expense of the Company.

 

Section 10.2                                Deposited
Monies to Be Held in Trust by Trustee.

 

Subject to Section 10.3,
all monies and other property deposited with the Trustee pursuant to Section 10.1
shall be held in trust for the sole benefit of the Holders.  Such deposited monies and other property
shall be applied by the Trustee to the payment, either directly or through any
paying agent, to the Holders of the particular Securities for the payment of
which such monies and other property have been deposited with the Trustee, of
all sums due and to become due thereon for principal and interest (including
Contingent Interest and Additional Interest, if any).

 

Section 10.3                                Repayment
to the Company.

 

The Trustee and the Paying
Agent shall return to the Company upon written request any cash or securities
held by them for the payment of any amount with respect to the Securities that
remains unclaimed for two years, subject to applicable unclaimed property
law.  After return to the Company,
Holders entitled to the cash or securities must look to the Company for payment
as general creditors unless an applicable abandoned property law designates
another person and the Trustee and the Paying Agent shall have no further
liability to the Holders with respect to such cash or securities for that
period commencing after the return thereof.

 

ARTICLE XI

AMENDMENTS

 

Section 11.1                                Without
Consent of Holders of Securities.

 

The Indenture (including the
terms and conditions of the Securities and the Subsidiary Guarantees) may be
modified or amended by the Company and the Trustee, without the consent of the
Holder of any Security, to:

 

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

 

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

 

57

 

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

 

(d)                                 provide
for the assumption of the Company’s or a Guarantor’s obligations to the Holders
of Securities and Subsidiary Guarantees in the case of a merger or
consolidation or sale of all or substantially all of the Company’s or such
Guarantor’s assets, as applicable, pursuant to ARTICLE VII;

 

(e)                                  increase
the Conversion Rate or the interest rate on Securities;

 

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

 

(g)                                 make
any changes or modifications necessary in connection with the registration of
the Common Stock to be issued upon conversion under the Securities Act as
contemplated in the Registration Rights Agreement; provided
that such change or modification does not, in the good faith opinion of the
Board of Directors, materially adversely affect the interests of the Holders of
the Securities, taken as a whole;

 

(h)                                 evidence
and provide the acceptance of the appointment of a successor trustee hereunder;

 

(i)                                     add
additional guarantees with respect to the Securities or release Guarantors from
Subsidiary Guarantees as provided or permitted by the terms of this Indenture;

 

(j)                                     cure
any ambiguity, mistake, defect or inconsistency;

 

(k)                                  provide
for uncertificated Securities in addition to or in place of certificated
Securities;

 

(l)                                     make
any change that would provide any additional rights or benefits to the Holders
of Securities or that does not materially adversely affect the legal rights
hereunder of any such Holder as determined by the Board of Directors;

 

(m)                               conform
the text of this Indenture or the Securities to any provision of the “Description
of Notes” section of the Offering Memorandum to the extent that such
provision in the “Description of Notes” was intended to be a verbatim
recitation of a provision of this Indenture, the Subsidiary Guarantees or the
Securities;

 

(n)                                 evidence
the succession of another person to the Company upon the Securities, and the
assumption by any such successor of the Company’s covenants hereunder and in
the Securities, in each case in compliance with the provisions of this
Indenture;

 

(o)                                 provide
the Holders of Securities with additional rights to require the Company to
purchase the Securities on additional Purchase Dates; or

 

58

 

(p)                                 add
or modify any other provisions herein with respect to matters or questions
arising hereunder which the Company and the Trustee may deem necessary or
desirable and which will not adversely affect the interests of the Holders of
Securities.

 

Section 11.2                                With
Consent of Holders of Securities.

 

Except as provided below in
this Section 11.2, this Indenture or the Securities issued thereunder or
the related Subsidiary Guarantees may be amended or supplemented with the
consent of the Holders of at least a majority in principal amount of the
Securities then outstanding (including, without limitation, consents obtained
in connection with a purchase of, or tender offer or exchange offer for, the
applicable Securities), and any existing Default or Event of Default or
compliance with any provision of this Indenture or the Securities issued
hereunder or related Subsidiary Guarantees may be waived with the consent of
the Holders of a majority in principal amount of the then outstanding related
Securities (including, without limitation, consents obtained in connection with
a purchase of, or tender offer or exchange offer for, Securities).

 

Without the written consent
or the affirmative vote of each Holder of Securities affected thereby, an
amendment or waiver under this Section 11.2 may not:

 

(a)                                  reduce
the principal amount of Securities whose Holders must consent to an amendment,
supplement or waiver;

 

(b)                                 change
the maturity of any Security or the payment date of any installment of interest
or Additional Interest, if any, payable on any Security;

 

(c)                                  reduce
the principal amount, Redemption Price, Purchase Price or Fundamental Change
Purchase Price of or alter the provisions with respect to the redemption of the
Securities (other than provisions relating to the covenants described under ARTICLE IV);

 

(d)                                 change
the currency of payment of principal, Redemption Price, Purchase Price or
Fundamental Change Purchase Price of, or interest (including Additional
Interest, if any) on, any Security;

 

(e)                                  release
any Guarantor from any of its obligations under its Subsidiary Guarantee or
this Indenture, except in accordance with the terms of this Indenture;

 

(f)                                    impair
or adversely affect the manner of calculation or rate of accrual of interest
(including Additional Interest, if any) on any Security;

 

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

 

(h)                                 modify
the Company’s obligation to maintain a Paying Agent in New York City;

 

(i)                                     impair
or adversely affect the conversion rights of the Holders of the Securities
provided in ARTICLE XII or the purchase rights as provided in ARTICLE IV
or V;

 

59

 

(j)                                     change
the percentage in aggregate principal amount of Securities outstanding
necessary to accelerate the Securities, rescind acceleration of the Securities
or waive past Defaults; or

 

(k)                                  make
any change in the amendment and waiver provisions under Section 8.4(a) or
Section 8.4(b).

 

It shall not be necessary
for the consent of the Holders under this Section 11.2 to approve the
particular form of any proposed amendment, but it shall be sufficient if such
consent approves the substance thereof.

 

After an amendment under
this Section 11.2 becomes effective, the Company shall mail to each Holder
a notice briefly describing the amendment. 
However, the failure to give such notice to all Holders of Securities,
or any defect therein, will not impair or affect the validity of the amendment.

 

Section 11.3                                Compliance
with Trust Indenture Act.

 

Every supplemental indenture
executed pursuant to this Article shall comply with the TIA.

 

Section 11.4                                Revocation
and Effect of Consents, Waivers and Actions.

 

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

 

Section 11.5                                Notation
on or Exchange of Securities.

 

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

 

Section 11.6                                Trustee
to Sign Supplemental Indentures.

 

The Trustee shall sign any
supplemental indenture authorized pursuant to this ARTICLE XI if the
amendment contained therein does not adversely affect the rights, duties,
liabilities or immunities of the Trustee. 
If it does, the Trustee may, but need not, sign such supplemental
indenture.  In signing such supplemental
indenture the Trustee shall receive, and 

 

60

 

(subject
to the provisions of Section 9.1) shall be fully protected in relying
upon, an Officers’ Certificate and an Opinion of Counsel stating that such
amendment is authorized or permitted by this Indenture.

 

Section 11.7                                Effect
of Supplemental Indentures.

 

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

 

Section 11.8                                Waiver.

 

The Holders of a majority in
aggregate principal amount of Securities outstanding may waive compliance with
certain provisions of this Indenture relating to the Securities, unless (1) the
Company fails to pay principal of or interest (including Additional Interest,
if any) on any Security when due and such failure be continuing at such time, (2) the
Company fails to convert any Security into cash and common stock as required by
this Indenture and such failure be continuing at such time or (3) the
Company fails to comply with any of the provisions of this Indenture that would
require the consent of the Holder of each outstanding Security to modify or
amend and such failure be continuing at such time.

 

Any Securities held by the
Company or by any Person directly or indirectly controlling or controlled by or
under direct or indirect common control with the Company shall be disregarded
(from both the numerator and denominator) for purposes of determining whether
the Holders of a majority in aggregate principal amount of the outstanding
Securities have consented to a modification, amendment or waiver of the terms
of this Indenture.

 

ARTICLE XII

 

CONVERSION

 

Section 12.1                                Conversion
Right.

 

(a)                                  Subject
to and upon compliance with the provisions of this Indenture, prior to 5:00 p.m.,
Eastern Standard time, on the Business Day immediately preceding the Stated
Maturity, a Holder of a Security shall have the right, at such Holder’s option,
to convert all or any portion (if the portion to be converted is $1,000 of the
principal amount or an integral multiple thereof) of such Security into cash
and a number of shares of Common Stock, if any, at the Conversion Rate in
effect at such time under the circumstances described in this Section 12.1
and in the manner provided in Section 12.2.  The Securities shall be convertible only
during the following periods upon the occurrence of one of the following
events:

 

(i)                                     on
or prior to February 1, 2010:

 

(A)                              during
the five consecutive Business Day period following any five consecutive Trading
Day period (the “Measurement Period”) in which the
Trading Price per $1,000 principal amount of Securities (as determined
following 

 

61

 

a
request by a Holder in accordance with the procedures described below) for each
Trading Day of such Measurement Period was less than 103% of the Conversion
Value on such day;

 

(B)                                as
provided in Section 12.1(b); or

 

(C)                                at
any time prior to 5:00 p.m., Eastern Standard time, on the second Business
Day immediately preceding the Redemption Date, if such Security has been called
for redemption pursuant to ARTICLE III;

 

(ii)                                  after
February 1, 2010:

 

(A)                              during
any calendar quarter of the Company (and only during such calendar quarter)
commencing after December 31, 2009, if the Closing Sale Price of the
Common Stock for at least 20 Trading Days during the period of 30 consecutive
Trading Days ending on the last Trading Day of the preceding calendar quarter
is greater than or equal to 110% of the Conversion Price in effect on such last
Trading Day of such preceding calendar quarter;

 

(B)                                on
or after February 1, 2025;

 

(C)                                during
the Measurement Period in which the Trading Price per $1,000 principal amount
of Securities (as determined following a request by a Holder in accordance with
the procedures described below) for each Trading Day of such Measurement Period
was less than 98% of the Conversion Value on such day;

 

(D)                               as
provided in Section 12.1(b); or

 

(E)                                 at
any time prior to 5:00 p.m., Eastern Standard time, on the second Business
Day immediately preceding the Redemption Date, if such Security has been called
for redemption pursuant to ARTICLE III.

 

The Company’s obligations in
respect of conversion of the Securities as provided above are referred to as
the “Conversion Obligation”.

 

The Company shall determine
whether the Securities shall be convertible as a result of the occurrence of an
event specified in clauses (i) and (ii) above and, if the Securities
shall be so convertible, the Company shall promptly deliver to the Trustee
notice thereof and make Public Notice to the Holders thereof; provided that if the Securities shall be
convertible as a result of the occurrence of any event specified in clause (ii)(A) above
and such condition has been satisfied for two consecutive calendar quarters,
the Company may deliver notice of the continued convertibility of the
Securities to the Holders by publication of such information on its corporate
website.  Any notice so given shall be
conclusively presumed to have been duly given, whether or not the Holder
receives such notice.

 

In connection with any
conversion upon satisfaction of clause (i)(A) or clause (ii)(C) of
this Section 12.1(a), the Trading Price of the Securities on any date of
determination 

 

62

 

shall
be as determined in the definition thereof, except that if the Trustee cannot
reasonably obtain at least one bid for $2,000,000 principal amount of the
Securities from a nationally recognized securities dealer, then the Trading
Price per $1,000 principal amount of the Securities will be deemed to be less
than 103% (or 98% after February 1, 2010) of the Conversion Value on such
determination date.  The Trustee shall
have no obligation to determine the Trading Price of the Securities unless the
Company has requested such determination; and the Company shall have no
obligation to make such request unless a Holder provides the Company with
reasonable evidence that the Trading Price per $1,000 principal amount of the
Securities would be less than 103% (or 98% after February 1, 2010) of the Conversion
Value on such determination date, at which time, the Company shall instruct the
Trustee to determine the Trading Price of the Security beginning on the next
Trading Day and on each successive Trading Day until the Trading Price is
greater than or equal to 103% (or 98% after February 1, 2010) of the
Conversion Value

 

(b)                                 (i)                                     In
the event that:

 

(A)                              the
Company distributes to all or substantially all holders of the Common Stock
rights or warrants entitling them to purchase, for a period expiring within 60
days of the Record Date for such distribution, Common Stock at a price per
share of Common Stock less than the Closing Sale Price of the Common Stock on
the Trading Day immediately preceding the announcement date of such
distribution; or

 

(B)                                the
Company distributes to all or substantially all holders of its Common Stock,
assets (including cash), debt securities or rights or warrants to purchase its
securities, which distribution has a Fair Market Value, as determined by the
Board of Directors, per share of Common Stock exceeding 15% of the Closing Sale
Price of the Common Stock on the Trading Day immediately preceding the
announcement date of such distribution,

 

then, in each case, the Holders may surrender their Securities for
conversion at any time on and after the date that the Company gives notice,
including by making a Public Notice, to the Holders of such right, which shall
be not less than 20 days prior to the Ex-Dividend Date for such distribution
until 5:00 p.m., Eastern Standard time, on the earlier of the Trading Day
immediately preceding the Ex-Dividend Date and the date the Company announces
that such distribution shall not take place.

 

(ii)                                  In
the event that:

 

(A)                              a
Fundamental Change as set forth in clause (i) of the definition thereof occurs;

 

(B)                                a
Fundamental Change as set forth in clause (iii) of the definition thereof
occurs pursuant to which Common Stock would be converted into cash, securities
and/or other property; or

 

(C)                                a
Fundamental Change as set forth in clause (v) of the definition thereof
occurs,

 

63

 

in each case, a Holder may surrender Securities for conversion at any
time from and after the date which is 25 Trading Days prior to the date the
Company announces by Public Notice as the anticipated Effective Date of such
transaction until and including the date which is 25 Trading Days after the
actual Effective Date of such transaction (or the Fundamental Change Purchase
Date, if applicable).  In addition, at
the effective time of such transaction, a Holder’s right to convert its
Securities into cash and shares of Common Stock, if any, will be changed into a
right to convert the Securities into the kind and amount of cash, securities or
other property that the Holder would have received if the Holder had converted
the Securities immediately prior to the transaction, except to the extent
provided otherwise as described in Section 12.12.

 

The Company will notify
Holders and the Trustee at the same time it publicly announces any Fundamental
Change described in clause (iii) or clause (v) of the definition of
Fundamental Change (but in no event less than 10 days prior to the Effective
Date of such transaction).  The Company
will notify Holders and the Trustee of any Fundamental Change described in
clause (i) of the definition of Fundamental Change within three Business
Days of the date of the filing causing such Fundamental Change.

 

(c)                                  Notwithstanding
the foregoing, a Security in respect of which a Holder has delivered a Purchase
Notice or a Fundamental Change Purchase Notice, as the case may be, exercising
such Holder’s right to require the Company to repurchase such Security may be
converted only if such Purchase Notice or Fundamental Change Purchase Notice is
withdrawn in accordance with Section 4.2(b) or Section 5.2(b).

 

(d)                                 A
Holder of Securities shall not be entitled to any rights of a holder of Common
Stock until such Holder has converted its Securities to Common Stock, and only
to the extent such Securities are deemed to have been converted to Common Stock
under this ARTICLE XII.

 

Section 12.2                                Conversion
Procedures; Conversion Rate; Fractional Shares.

 

(a)                                  Subject
to Section 12.13, each Security shall be convertible at the office of the
Conversion Agent into fully paid and nonassessable shares of Common Stock
(calculated to the nearest 1/10,000th of a share).

 

The Conversion Agent shall
promptly notify the Company when it receives a Conversion Notice.  Pursuant to Section 12.13, the Company
shall determine the amount of cash and the number of shares of Common Stock, if
any, that the Holder that submitted the Conversion Notice is entitled to
receive upon surrender of the Securities covered by that Conversion
Notice.  The cash and, if applicable, a
certificate for the number of full shares of Common Stock into which the
Securities are converted (and cash in lieu of fractional shares) shall be
delivered by the Company to such Holder, once all of the other requirements
have been satisfied by such Holder in accordance with Section 12.13.  Notwithstanding the foregoing, the Company
shall not be required to deliver certificates for Common Stock while the stock
transfer books for such stock or the security register are duly closed for any
purpose, but certificates for Common Stock shall be issued and delivered as
soon as practicable after the opening of such books or security register.

 

64

 

Except as described in Section 12.9,
the Company will not make any payment or other adjustment for accrued and
unpaid interest or Additional Interest, if any, on any Securities when they are
converted. The Company’s delivery to the Holder of cash, or a combination of
cash and Common Stock, as provided in Section 12.13, together with any
cash payment for such Holder’s fractional shares, shall be deemed to satisfy
the Company’s obligation to pay the principal of the Security and to satisfy
its obligation to pay accrued and unpaid interest and Additional Interest, if
any, through the conversion date. As a result, accrued interest and Additional
Interest are deemed paid in full rather than cancelled, extinguished or
forfeited.

 

If a Holder has exercised
its right to require the Company to repurchase its Securities pursuant to ARTICLE IV
or ARTICLE V and has not withdrawn its Purchase Notice or Fundamental
Change Purchase Notice, such Holder’s conversion rights on the Securities so
subject to repurchase shall expire at 5:00 p.m., Eastern Standard time, on
the Business Day immediately preceding the Purchase Date or Fundamental Change
Purchase Date, as the case may be. 
Notwithstanding the foregoing, a Security in respect of which a Holder
has delivered a Purchase Notice or a Fundamental Change Purchase Notice, as the
case may be, exercising such Holder’s right to require the Company to
repurchase such Security may be converted only if such Purchase Notice or
Fundamental Change Purchase Notice is withdrawn in accordance with Section 4.2(b) or
Section 5.2(b).

 

(b)                                 Before
any Holder shall be entitled to convert any Security into Common Stock, such
Holder shall, in the case of Global Securities, comply with the Applicable
Procedures of the Depositary in effect at that time, and in the case of
Certificated Securities, surrender such Securities, duly endorsed to the
Company or in blank, at the office of the Conversion Agent, and shall give
written notice to the Company at said office or place in the form of the
Conversion Notice attached to the Security (the “Conversion Notice”), manually signed by such Holder, that such
Holder elects to convert the same and shall state in writing therein the
principal amount of Securities to be converted (in whole or in part so long as
the principal amount to be converted is in multiples of $1,000) and the name or
names (with addresses) in which such Holder wishes the certificate or
certificates for Common Stock to be issued.

 

Before any such conversion,
a Holder also shall pay all funds required, if any, relating to interest or
Additional Interest, if any, on the Securities, as provided in Section 12.9,
and all taxes or duties, if any, as provided in Section 12.8.

 

If more than one Security
shall be surrendered for conversion at one time by the same Holder, the number
of full shares of Common Stock that shall be deliverable upon conversion shall
be computed on the basis of the aggregate principal amount of the Securities
(or specified portions thereof to the extent permitted thereby) so surrendered.

 

If shares of Common Stock to
be issued upon conversion of a Restricted Security are to be issued in the name
of a Person other than the Holder of such Restricted Security, such Holder
shall deliver to the Conversion Agent a certification in substantially the form
set forth in a Transfer Certificate dated the date of surrender of such
Restricted Security and signed by such Holder, as to compliance with the
restrictions on transfer applicable to such Restricted Security.  The Company shall not be required to issue
Common Stock upon conversion of any such 

 

65

 

Restricted
Security to a Person other than the Holder if such Restricted Security is not
so accompanied by a properly completed certification, and the Registrar shall
not be required to register Common Stock upon conversion of any such Restricted
Security in the name of a Person other than the Holder if such Restricted
Security is not so accompanied by a properly completed certification.

 

(c)                                  A
Security shall be deemed to have been converted immediately prior to 5:00 p.m.,
Eastern Standard time, on the date on which all of the conversion requirements
set forth in Section 12.2(b) have been satisfied, and the person or
persons entitled to receive any Common Stock issuable upon such conversion
shall be treated for all purposes as the record Holder or Holders of such
Common Stock as of 5:00 p.m., Eastern Standard time, on such date.

 

(d)                                 In
case any Certificated Security shall be surrendered for partial conversion, the
Company shall execute and the Trustee shall authenticate and deliver to or upon
the written order of the Holder of the Security so surrendered, without charge
to such Holder (subject to the provisions of Section 12.8), a Security or
Securities in authorized denominations in an aggregate principal amount equal
to the unconverted portion of the surrendered Certificated Securities.

 

(e)                                  If
and only to the extent a holder elects to convert Securities “in connection
with” (as set forth below) a Fundamental Change described in clause (i) or
(iii) of the definition of Fundamental Change that occurs on or prior to February 1,
2011 pursuant to which 10% or more of the consideration for the Common Stock
(other than cash payments for fractional shares and cash payments made in
respect of dissenters’ appraisal rights) in such Fundamental Change transaction
consists of cash or securities (or other property) that are not shares of
common stock, depositary receipts or other certificates representing equity
interests traded or scheduled to be traded immediately following such
transaction on a U.S. national securities exchange or the Nasdaq National
Market, the Conversion Rate applicable to such Holder’s conversion will be
adjusted by including in the Conversion Rate per $1,000 principal amount of
Securities an additional number of shares of Common Stock per $1,000 principal
amount of Securities (the “Additional Shares”)
as described below; provided, however, that if the Stock Price paid in consideration with
such transaction is greater than $150.00 or less than $49.75 (subject in each
case to adjustment as described below), no adjustment to the Conversion Rate
for Additional Shares shall be made.  Any
conversion at any time from and after the date which is on or subsequent to the
Effective Date of the transaction constituting a Fundamental Change until and
including the date which is 25 days after the actual Effective Date of such
transaction (or, if such transaction also results in Holders having a right to
require the Company to repurchase their Securities pursuant to Section 5.1,
until the Fundamental Change Purchase Date) shall be deemed to be “in
connection with” such Fundamental Change.

 

The number of Additional
Shares included in the Conversion Rate in connection with the conversion of
Securities as described in the immediately preceding paragraph will be determined
by reference to the table attached as Schedule I hereto, based on the
Effective Date of such transaction and the Stock Price paid in connection with
such transaction; provided that
if the Stock Price is between two Stock Price amounts in the table or such
Effective Date is between two Effective Dates in the table, the number of
Additional Shares will be determined by the Company by a straight-line
interpolation between the number of Additional Shares set forth 

 

66

 

for
the higher and lower Stock Price amounts and the two Effective Date, as
applicable, based on a 365-day year.  If
holders of the Common Stock receive only cash in such Fundamental Change
transaction, the Stock Price shall be the cash amount paid per share.  Otherwise, the Stock Price shall be the
average of the Closing Sale Price of the Common Stock on the 10 consecutive
Trading Days prior to but not including the Effective Date of such Fundamental
Change transaction.  The “Effective Date” with respect to a
Fundamental Change transaction means the date on which such Fundamental Change
becomes effective.

 

The Stock Prices set forth
in the first row of the table in Schedule I hereto (i.e., the column
headers) will be adjusted as of any date on which the Conversion Rate of the
Securities is adjusted pursuant to Section 12.3.  The adjusted Stock Prices will equal the
product of the Stock Prices applicable immediately prior to such adjustment,
multiplied by a fraction, the numerator of which is the Conversion Rate
immediately prior to the adjustment giving rise to the Conversion Rate
adjustment and the denominator of which is the Conversion Rate as so
adjusted.  The number of Additional
Shares will be adjusted in the same manner and for the same events as the
Conversion Rate as set forth in Section 12.3.

 

Notwithstanding the
foregoing, in no event will the total number of shares of Common Stock issuable
upon conversion exceed 20.1005 per $1,000 principal amount of Securities,
subject to adjustment in the same manner and for the same events as the
Conversion Rate as set forth in Section 12.3.

 

Section 12.3                                Adjustment
of Conversion Rate.

 

The Conversion Rate shall be
adjusted from time to time by the Company as follows (provided
that the Company will not make any adjustments to the Conversion Rate if
Holders participate, as a result of holding Securities, in any of the
transactions described below in this Section 12.3 without having to
convert their Securities):

 

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

 

	
  CR1 = CR0

  	
   ́

  	
  OS1

  
	
  OS0

  

where,

 

	
  CR0

  	
  =

  	
  the Conversion Rate in effect immediately
  prior to such event

  
	
   

  	
   

  	
   

  
	
  CR1

  	
  =

  	
  the Conversion Rate in effect immediately
  after such event

  
	
   

  	
   

  	
   

  
	
  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

  

 

67

 

An adjustment made pursuant
to this subsection (a) shall become effective on the date 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 subsection (a) is declared but not so paid or made, the
Conversion Rate shall again be adjusted to the Conversion Rate that would then
be in effect if such dividend or distribution had not been declared.

 

(b)                                 If
the Company issues to all or substantially all of the holders of shares of
Common Stock, other than affiliates of the Company, any rights, warrants,
options or other convertible securities entitling them for a period of not more
than 60 days after the date of issuance thereof to subscribe for or purchase
shares of Common Stock, or securities convertible into shares of Common Stock,
at a price per share or a conversion price per share less than the Closing Sale
Price of the Common Stock on the Trading Day immediately preceding the date of
announcement of such issuance, the Conversion Rate will be adjusted based on
the following formula:

 

	
  CR1 = CR0 

  	
   ́

  	
  OS0 + X

  
	
  OS0 + Y

  

where,

 

	
  CR0

  	
  =

  	
  the
  Conversion Rate in effect immediately prior to such event

  
	
  CR1

  	
  =

  	
  the
  Conversion Rate in effect immediately after such event

  
	
  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 or other convertible securities

  
	
  Y

  	
  =

  	
  the
  number of shares of Common Stock equal to the aggregate exercise price
  payable to exercise such rights, warrants or other convertible securities
  divided by the average of the Closing Sale Prices of the Common Stock for the
  10 consecutive Trading Day period ending on the Trading Day immediately
  preceding the Record Date for the issuance of such rights, warrants or other
  convertible securities

  

 

An adjustment made pursuant
to this subsection (b) shall be made successively whenever such
rights, warrants or other convertible securities are issued, and shall become
effective on the day following the date of announcement of such issuance.  If, at the end of the period during which
such rights, warrants or other convertible securities are exercisable or
convertible, not all rights, warrants or other convertible securities have been
exercised or converted, as the case may be, the adjusted Conversion Rate shall
be immediately readjusted to what it would have been based upon the number of
additional shares of Common Stock actually issued (or the number of shares of
Common Stock actually issued upon conversion of convertible securities actually
issued).

 

For purposes of Section 12.1(b) and
this Section 12.3(b), in determining whether such rights, warrants or
convertible securities entitle the Holder to subscribe for or purchase or 

 

68

 

exercise
a conversion right for shares of Common Stock at less than the average Closing
Sale Price of the Common Stock, and in determining the aggregate exercise or
conversion price payable for such shares of Common Stock, there shall be taken
into account any consideration received by the Company for such rights,
warrants or other 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.

 

(c)                                  If
the Company distributes shares of the Company’s capital stock, evidences of the
Company’s Indebtedness or other assets or property of the Company or its
subsidiaries to all or substantially all of the holders of shares of Common
Stock, excluding:

 

(i)                                     dividends,
distributions and rights, warrants, options or convertible securities referred
to in clauses (a) or (b) above; and

 

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

 

(iii)                               Spin-offs
described below,

 

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

 

	
  CR1 = CR0 

  	
   ́

  	
  SP0
  + X

  
	
  SP0 - FMV

  

where,

 

	
  CR0

  	
  =

  	
  the
  Conversion Rate in effect immediately prior to such distribution

  
	
  CR1

  	
  =

  	
  the
  Conversion Rate in effect immediately after such distribution

  
	
  SP0

  	
  =

  	
  the
  average of the Closing Sale Prices of the Common Stock over the 10
  consecutive Trading Day-period ending on the Trading Day immediately
  preceding the Ex-Dividend Date for such distribution

  
	
  FMV

  	
  =

  	
  the
  Fair Market Value (as determined by the Board of Directors) of the shares of
  capital stock, evidences of Indebtedness, assets or property distributed with
  respect to each outstanding share of Common Stock on the Record Date for such
  distribution

  

 

An adjustment made pursuant
to the above paragraph shall be made successively whenever any such
distribution is made and shall become effective on the day immediately after
the dated fixed for the determination of shareholders entitled to receive such
distribution.

 

With respect to an
adjustment pursuant to this subsection (c) where there has been a
payment of a dividend or other distribution on the Common Stock of shares of
capital stock of any class or series, or similar Equity Interest, of or
relating to a Subsidiary or other business unit of the Company (referred to as
a “spin-off”), the Conversion Rate
in effect immediately before the close of business on the Record Date fixed for
determination of shareholders entitled to receive the distribution will be
increased based on the following formula:

 

69

 

	
  CR1 = CR0 

  	
   ́

  	
  FMV0
  + MP0

  
	
  MP0

  

where,

 

	
  CR0

  	
  =

  	
  the
  Conversion Rate in effect immediately prior to such distribution

  
	
  CR1

  	
  =

  	
  the
  Conversion Rate in effect immediately after such distribution

  
	
  FMV0

  	
  =

  	
  the
  average of the Closing Sale Prices of the capital stock or similar Equity
  Interest distributed to holders of shares of Common Stock applicable to one
  share of Common Stock over the first 10 consecutive Trading Day-period 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 Day-period after the effective date of the spin-off

  

 

The adjustment to the
Conversion Rate under the preceding paragraph will occur on the tenth Trading Day
after the effective date of the spin-off.

 

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

 

(d)                                 If
any cash dividend or distribution made to all or substantially all of the
holders of Common Stock during any of the Company’s quarterly fiscal periods in
an aggregate amount that, together with other cash dividends or distributions
(other than those paid in connection with the Company’s liquidation,
dissolution or winding up) made during such quarterly fiscal period (the “Current Dividend Rate”), exceeds $0.03 per share
(appropriately adjusted from time to time for any share dividends on, or
subdivisions of, the Common Stock) (the “Initial Dividend Rate”),
the Conversion Rate will be adjusted based on the following formula:

 

	
  CR1 = CR0 

  	
   ́

  	
  SP0

  
	
  SP0 - C

  

where,

 

	
  CR0

  	
  =

  	
  the
  Conversion Rate in effect immediately prior to the Record Date for such
  distribution

  
	
  CR1

  	
  =

  	
  the
  Conversion Rate in effect immediately after the Record Date for such
  distribution

  
	
  SP0

  	
  =

  	
  the
  Closing Sale Price of the Common Stock for the Trading Day immediately
  preceding the Ex-Dividend Date of such distribution

  
	
  C

  	
  =

  	
  the
  amount in cash per share the Company distributes to holders of shares of
  Common Stock in excess of $0.03 (appropriately adjusted from time to time for
  any share dividends on, or subdivisions of, the Common Stock) (the “Dividend Threshold Amount”)

  

 

70

 

Following any transaction or event where the
Securities are convertible, in accordance with this Indenture, into property
that includes shares of common stock other than Common Stock, the Dividend
Threshold Amount will be the Dividend Threshold Amount immediately prior to the
effective date of such transaction or event multiplied by a fraction, (a) the
numerator of which is (i) if such shares are traded on a U.S. national or
regional securities exchange or quoted on the Nasdaq, the average of the Last
Reported Sale Prices of such shares for the five Trading Day period commencing
on the Trading Day immediately following such effective date and (ii) otherwise,
the Fair Market Value of such shares as determined in good faith by the Board
of Directors and (b) the denominator of which is the average of the Last
Reported Sale Prices of Common Stock for the five trading day period ending on
the Trading Day immediately preceding such effective date.

 

An adjustment made pursuant to this subsection (d) shall
become effective on the date immediately after the Record Date for the
determination of shareholders entitled to receive such dividend or
distribution.  If any dividend or
distribution described in this subsection (d) is declared but not so
paid or made, the Conversion Rate shall again be adjusted to the Conversion
Rate that would then be in effect if such dividend or distribution had not been
declared.

 

(e)                                  If
the Company or any of its Subsidiaries makes a payment in respect of a tender
offer or exchange offer for its Common Stock, to the extent that the
consideration paid per share of Common Stock in such offer exceeds the average
of the Closing Sale Price of the Common Stock over the 10 consecutive Trading
Day period commencing on the Trading Day next succeeding the date of the
expiration (the “Expiration Time”) of such tender
or exchange offer, the Conversion Rate will be increased based on the following
formula:

 

	
  CR1 = CR0 

  	
   ́

  	
  AC + (SP1  ́ OS1)

  
	
  OS0  ́ SP1

  

where,

 

	
  CR0

  	
  =

  	
  the
  Conversion Rate in effect on the date such tender offer or exchange offer
  expires

  
	
  CR1

  	
  =

  	
  the
  Conversion Rate in effect on the day next succeeding the date such tender
  offer or exchange offer expires

  
	
  AC

  	
  =

  	
  the
  aggregate value of all cash and other consideration (as determined by the
  Board of Directors) paid or payable for shares of Common Stock that the
  Company or one of its Subsidiaries purchased in the tender offer or exchange
  offer

  
	
  OS0

  	
  =

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

  
	
  OS1

  	
  =

  	
  the
  number of shares of Common Stock outstanding immediately after the date such
  tender offer or exchange offer expires

  
	
  SP1

  	
  =

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

  

 

71

 

Any adjustment made pursuant
to this subsection (e) shall become effective on the date immediately
following the Expiration Time.  If the
Company is obligated to purchase shares of Common Stock pursuant to any such
tender or exchange offer, but the Company is permanently prevented by applicable
law from effecting any such purchases or all such purchases are rescinded, the
Conversion Rate shall again be adjusted to be the Conversion Rate that would be
in effect if such tender or exchange offer had not been made.  Notwithstanding the foregoing, if the
application of the foregoing formula set forth in this Section 12.3(e) would
result in a decrease in the Conversion Rate, no adjustment to the Conversion
Rate will be made pursuant to this Section 12.3(e).

 

(f)                                    To
the extent that the Company has a shareholder rights plan in effect upon the
conversion of the Securities into Common Stock, a Holder will receive (except
to the extent that the Company settles its Conversion Obligations entirely in
cash), in addition to the Common Stock, the rights under the shareholder rights
plan unless the rights have separated from the Common Stock prior to the time
of conversion, in which case the Conversion Rate will be adjusted at the time
of separation as if the Company made a distribution referred to in clause (c) above
had occurred, subject to readjustment in the event of the expiration,  termination or redemption of such rights.

 

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

 

“Fair Market Value” means the amount which a willing buyer
would pay a willing seller in an arm’s length transaction (as determined by the
Board of Directors, whose determination shall be made in good faith and, absent
manifest error, shall be final and binding on Holders of the Securities).

 

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

 

(h)                                 The
Company shall be entitled to make such additional increases in the Conversion
Rate, in addition to those required by Section 12.3(a), Section 12.3(b),
Section 12.3(c), Section 12.3(d) or Section 12.3(e) if
the Board of Directors determines that it is advisable, in order that any
dividend or distribution of Common Stock, any subdivision, reclassification or
combination of Common Stock or any issuance of rights or warrants referred to
above, or any event treated as such for United States federal income tax
purposes, shall not be taxable to the holders of Common Stock for United States
federal income tax purposes or to diminish any such tax.

 

72

 

(i)                                     To
the extent permitted by applicable law, the Company may, from time to time,
increase the Conversion Rate by any amount for any period of time if the Board
of Directors determines that such increase would be in the best interest of the
Company.  Whenever the Conversion Rate is
increased pursuant to this subsection (i) or subsection (h) above,
the Company shall mail to the Trustee and each Holder at the address of such
Holder as it appears in the register of the Securities maintained by the
Registrar (and make a Public Notice), at least 15 calendar days prior to the
date the increased Conversion Rate takes effect, a notice of the increase
stating the increased Conversion Rate and the period during which it shall be
in effect.

 

(j)                                     In
any case in which this Section 12.3 shall require that any adjustment be
made effective as of or retroactively immediately following a Record Date, the
Company may elect to defer issuing to the Holder of any Securities converted
after such Record Date the Common Stock issuable upon such conversion over and
above the Common Stock issuable upon such conversion on the basis of the
Conversion Rate prior to adjustment as it determines, in good faith, to be
reasonable under the circumstances; provided,
however, that the Company shall
deliver to such Holder a due bill or other appropriate instrument evidencing
such Holder’s right to receive such additional Common Stock upon the occurrence
of the event requiring such adjustment, as and to the extent customary at such
time.

 

(k)                                  All
calculations under this Section 12.3 shall be made to the nearest cent or
one-hundredth of a share, with one-half cent and 0.005 of a share,
respectively, being rounded upward. 
Notwithstanding any other provision of this Section 12.3, the
Company shall not be required to make any adjustment of the Conversion Rate
unless such adjustment would require an increase or decrease of at least 1% in
the Conversion Rate as last adjusted. 
Any lesser adjustment shall be carried forward and shall be made at the
earlier of (i) the time of and together with
the next subsequent adjustment which, together with any adjustment or
adjustments so carried forward, shall amount to an increase or decrease of at
least 1% in the Conversion Rate as last adjusted or (ii) in connection
with any conversion of the Securities following a call for redemption, the
occurrence of a Fundamental Change or at Stated Maturity, as applicable.  Any adjustments under this Section 12.3
shall be made successively whenever an event requiring such an adjustment
occurs.

 

(l)                                     In
the event that at any time, as a result of an adjustment made pursuant to this Section 12.3,
the Holder of any Securities thereafter surrendered for conversion shall become
entitled to receive any shares of Applicable Stock of the Company other than Common
Stock into which the Securities originally were convertible, the Conversion
Rate of such other shares so receivable upon conversion of any such Security
shall be subject to adjustment from time to time in a manner and on terms as
nearly equivalent as practicable to the provisions with respect to Common Stock
contained in subparagraphs (a) through (k) of this Section 12.3, and
the provisions of Section 12.1, Section 12.2 and Section 12.4
through Section 12.9 with respect to the Common Stock shall apply on like
or similar terms to any such other shares (including, without limitation, the
determination of whether the conditions to conversion provided in Section 12.1
have been satisfied).

 

(m)                               No
adjustment shall be made pursuant to this Section 12.3 if the effect
thereof would be to reduce the Conversion Price below the par value (if any) of
the Common Stock.

 

73

 

Section 12.4                                Consolidation
or Merger of the Company.

 

If any of the following
events occurs, namely:

 

(a)                                  any
reclassification or change of the outstanding shares of Common Stock (other
than a change in par value, or from par value to no par value, or from no par
value to par value, or as a result of a subdivision or combination);

 

(b)                                 any
consolidation, merger or binding share exchange as a result of which holders of
Common Stock shall be entitled to receive stock, securities or other property
or assets (including cash) with respect to or in exchange for such Common
Stock; or

 

(c)                                  any
sale, transfer, lease, conveyance or other disposition of all or substantially
all of the properties and assets of the Company to any other Person;

 

in
each case, in a transaction in which holders of Common Stock shall be entitled
to receive stock, other securities, other property, assets or cash (“Reference Property”) with respect to or in exchange for such
Common Stock, then as of the effective time of such transaction, and unless the
Company has elected to follow the provisions of Section 12.12, the Company
or the successor or purchasing Person, as the case may be, shall execute with
the Trustee a supplemental indenture (which shall comply with the TIA as in
force at the date of execution of such supplemental indenture, if such
supplemental indenture is then required to so comply) providing that such
Securities shall be convertible into cash up to the Base Amount and Reference
Property, if any, based on the twenty day average price of the Reference
Property and the Applicable Conversion Rate and assuming such holder of Common
Stock exercised his rights of election, if any, as to the kind or amount of
Reference Property receivable upon such reclassification, change, merger,
consolidation, binding share exchange, combination, sale or conveyance in the
same manner as the majority of the holders of Common Stock or, if there is no
such majority, by a plurality of the holders of Common Stock.  Such supplemental indenture shall provide for
adjustments which shall be as nearly equivalent as may be practicable to the
adjustments provided for in this ARTICLE XII and, to the extent
applicable, reflect the other types of adjustments provided for in Section 12.3(l).  If, in the case of any such reclassification,
change, merger, consolidation, binding share exchange, combination, sale or conveyance,
the Reference Property receivable thereupon by a holder of Common Stock
includes shares of stock or other securities and assets of a Person other than
the successor or purchasing Person, as the case may be, in such
reclassification, change, merger, consolidation, binding share exchange,
combination, sale or conveyance, then such supplemental indenture shall also be
executed by such other Person and shall contain such additional provisions to
protect the interests of the Holders of the Securities as the Board of
Directors shall reasonably consider necessary by reason of the foregoing
including the provisions providing for the repurchase rights set forth in ARTICLE IV
and ARTICLE V.  In the event holders
of Common Stock have the opportunity to elect the form of consideration to be
received in such transaction, the Company will, subject to the provisions of Section 12.3,
make adequate provision whereby the Holders shall have a reasonable opportunity
to determine the form of consideration into which the Securities shall be
convertible from and after the effective date of such transaction, in each
case, for purposes of all outstanding Securities, treated as a single class.

 

74

 

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

 

The above provisions of this
Section 12.4 shall similarly apply to successive reclassifications,
mergers, consolidations, binding share exchanges, combinations, sales and
conveyances.

 

If this Section 12.4
applies to any event or occurrence, Section 12.3 shall not apply.

 

Notwithstanding this Section 12.4,
if a Public Acquirer Change of Control occurs and the Company elects to adjust
its Conversion Obligation and the Conversion Price pursuant to Section 12.12,
the provisions of Section 12.12 shall apply to the conversion instead of
this Section 12.4.

 

Any additional shares of
Common Stock that a holder is entitled to receive upon conversion pursuant to Section 12.2(e),
if applicable, shall not be payable in shares of Common Stock, but shall
represent a right to receive the aggregate amount of Reference Property into
which the additional shares of Common Stock would convert as a result of such
recapitalization, change, consolidation, merger, sale, lease, transfer,
conveyance or other disposition.

 

Section 12.5                                Notice
of Adjustment.

 

Whenever an adjustment in
the Conversion Rate with respect to the Securities is required:

 

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

 

(b)                                 a
notice stating that the Conversion Rate has been adjusted and setting forth the
adjusted Conversion Rate shall forthwith be given by the Company or, at the
Company’s request, by the Trustee in the name and at the expense of the
Company, to each Holder in the manner provided in Section 15.2.  Any notice so given shall be conclusively
presumed to have been duly given, whether or not the Holder receives such
notice.

 

Section 12.6                                Notice
in Certain Events.

 

In case of:

 

(a)                                  a
consolidation or merger to which the Company is a party and for which approval
of any holders of Common Stock of the Company is required, or of the sale or
conveyance to another Person or entity or group of Persons or entities acting
in concert as a partnership, limited partnership, syndicate or other group
(within the meaning of Rules 13d-3 

 

75

 

and 13d-5 under the Exchange Act) of all or
substantially all of the property and assets of the Company; or

 

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

 

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

 

then, in each case, the Company shall cause to be filed with the Trustee
and the Conversion Agent, and shall cause to be given, to the Holders of the
Securities in the manner provided in Section 15.2, at least 15 days prior
to the applicable date hereinafter specified, a notice stating:

 

(x)                                   the
date on which a record is to be taken for the purpose of any distribution or
grant of rights, warrants, options or other securities triggering an adjustment
to the Conversion Rate pursuant to this ARTICLE XII, or, if a record is
not to be taken, the date as of which the holders of record of Common Stock
entitled to such distribution, rights, warrants, options or other securities
are to be determined; or

 

(y)                                 the
date on which any reclassification, consolidation, merger, sale, conveyance,
dissolution, liquidation or winding up triggering an adjustment to the
Conversion Rate pursuant to this ARTICLE XII is expected to become
effective, and the date as of which it is expected that holders of Common Stock
of record shall be entitled to exchange their shares of Common Stock for
securities or other property deliverable upon such reclassification,
consolidation, merger, sale, conveyance, dissolution, liquidation or winding
up.

 

Failure to give such notice
or any defect therein shall not affect the legality or validity of the
proceedings described in Section 12.6(a), Section 12.6(b) or Section 12.6(c).

 

Section 12.7                                Company
To Reserve Stock; Listing; Corporate Action.

 

(a)                                  The
Company shall, prior to issuance of any Securities hereunder, and from time to
time as may be necessary, reserve and keep available, free from preemptive
rights, out of its authorized but unissued Common Stock, for the purpose of
effecting the conversion of the Securities, such number of shares of its duly
authorized Common Stock as shall from time to time be sufficient to effect the
conversion of all Securities then outstanding into such Common Stock in
accordance with the terms hereof at any time (assuming that, at the time of the
computation of such number of shares of Common Stock, all such Securities would
be held by a single Holder).  The Company
covenants that all Common Stock which may be issued upon conversion of
Securities shall upon issue be fully paid and nonassessable and free from all liens
and charges and, except as provided in Section 12.8, taxes with respect to
the issue thereof.

 

(b)                                 The
Company further covenants that, if at any time the Common Stock shall be listed
on the New York Stock Exchange or any other national securities exchange or
quoted on the Nasdaq National Market or any other automated quotation system,
the Company will, if permitted by the rules of such exchange or automated
quotation system, list and keep listed or quoted, so long as the Common Stock
shall be so listed or quoted on such exchange or automated quotation system,
all Common Stock issuable upon conversion of the Securities; provided that so long as no delay in
listing or quotation will occur upon conversion of the Securities into Common
Stock, if the rules of such exchange or 

 

76

 

automated quotation system permit the Company to defer
the listing or quotation of such Common Stock until the first conversion of the
Securities into Common Stock in accordance with the provisions of this
Indenture, the Company covenants to obtain the listing or quotation of such
Common Stock issuable upon conversion of the Securities in accordance with the
requirements of such exchange or automated quotation system at such time.

 

Section 12.8                                Taxes
on Conversion.

 

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

 

Section 12.9                                Conversion
After Record Date.

 

Except as provided in the
succeeding paragraph, upon conversion, the Holder of Securities shall not be
entitled to receive any accrued and unpaid interest or Additional Interest
(other than overdue interest), if any.

 

If any Securities are
surrendered for conversion subsequent to the close of business on any Record
Date but prior to the opening of
business on the corresponding Interest Payment Date, the Holder of such
Securities at the close of business on such Record Date shall receive the
interest and Additional Interest, if any, payable on such Securities on such
Interest Payment Date notwithstanding the conversion thereof.  Securities surrendered for conversion during
the period from the close of business on any Record Date to the opening of business
on the corresponding Interest Payment Date shall (except in the case of
Securities which have been called for redemption on a Redemption Date within
such period or Securities surrendered for conversion after acceleration of the
Securities) be accompanied by payment by Holders, for the account of the
Company, in New York Clearing House funds or other funds acceptable to the
Company of an amount equal to the interest and Additional Interest (other than
overdue interest), if any, payable on such Interest Payment Date on the
Securities being surrendered for conversion.

 

The preceding sentence does
not apply to (1) Securities that are converted after being called by the
Company for redemption or (2) any overdue interest existing at the time of
conversion with respect to the Securities converted, but only to the extent of
the amount of such overdue interest. Accordingly, under the circumstances
described in clause (1), notwithstanding 

 

77

 

the
foregoing, if the Company elects to redeem Securities and a Holder of
Securities being redeemed chooses to convert those Securities on a date that is
after a Record Date but prior to the corresponding Interest Payment Date, the
Holder will not be required to pay the Company, at the time that Holder
surrenders those Securities for conversion, the amount of interest (including
Additional Interest, if any) it will receive on the Interest Payment Date.

 

Except as described in Section 12.2(a) and
this Section 12.9, the Company will not make any payment in cash or Common
Stock or other adjustment for accrued and unpaid interest or Additional
Interest on any Securities when they are converted.

 

Section 12.10                          Company
Determination Final.

 

Except as otherwise provided
herein or the Securities, the Company or its agents shall be responsible for
making all calculations required under the terms of this ARTICLE XII.  Any determination that the Board of Directors
must make pursuant to this ARTICLE XII shall be set forth in a Board
Resolution, shall be made in good faith and, absent manifest error, shall be
final and binding on holders of the Securities. 
Any determination that the Company (but not the Board of Directors) must
make pursuant to this ARTICLE XII shall be made in good faith and, absent
manifest error, shall be final and binding on holders of the Securities.  The Company or its agents shall be required
to deliver to the Trustee a schedule of its calculations and the Trustee
shall be entitled to conclusively rely upon the accuracy of such calculations
without independent verification.

 

Section 12.11                          Responsibility
of Trustee for Conversion Provisions.

 

The Trustee has no duty to
determine when an adjustment under this ARTICLE XII should be made, how it
should be made or what it should be.  The
Trustee makes no representation as to the validity or value of any securities
or assets issued upon conversion of Securities. 
The Trustee shall not be responsible for any failure of the Company to
comply with this ARTICLE XII.  Each
Conversion Agent other than the Company shall have the same protection under
this Section 12.11 as the Trustee.

 

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

 

Section 12.12                          Conversion
in Connection with a Public Acquirer Change of Control.

 

(a)                                  In
the event of a Public Acquirer Change of Control, the Company may, in lieu of
issuing the Additional Shares pursuant to Section 12.2(e), elect to adjust
the Conversion Rate and the related Conversion Obligation such that from and
after the effective time of such Public Acquirer Change of Control, Holders of
the Securities will be entitled to convert their Securities (subject to the
provisions of Section 12.1(a) hereof), in accordance with Section 12.2
hereof, into a number of shares of Public Acquirer Common Stock by multiplying
the Applicable Conversion Rate in effect immediately before the effective time
of the Public Acquirer Change of Control by a fraction:

 

78

 

(i)                                     the
numerator of which will be (A) in the case of a share exchange,
consolidation, merger or binding share exchange, pursuant to which the Common
Stock is converted into cash, securities or other property, the value of all
cash, securities and other property (as determined by the Board of Directors)
paid or payable per share of Common Stock or (B) in the case of any other
Public Acquirer Change of Control, the average of the Closing Sale Price of the
Common Stock for the 10 consecutive Trading Days prior to but excluding the
effective date of such Public Acquirer Change of Control, and

 

(ii)                                  the
denominator of which will be the average of the Closing Sale Prices of the
Public Acquirer Common Stock for the 10 consecutive Trading Days commencing on
the Trading Day next succeeding the effective date of such Public Acquirer
Change of Control.

 

(b)                                 The
Company will notify the Trustee and Holders of its election by providing
notices as set forth in Section 12.5(b).

 

(c)                                  If
the Company elects to make the adjustment to the Conversion Rate and the related
Conversion Obligations as described in this Section 12.12 in the event of
a Public Acquirer Change of Control, holders of Securities will not be entitled
to receive any Additional Shares pursuant to Section 12.2(e).

 

Section 12.13                          Payment
Upon Conversion.

 

(a)                                  The
Company will satisfy its Conversion Obligation in respect of any Security
surrendered for conversion by delivering to Holders, on the third Business Day
following the last day of the Applicable Conversion Period (defined below), in
respect of each $1,000 aggregate principal amount of Securities being converted
a settlement amount (the “Settlement Amount”)
consisting of

 

(i)                                     cash
in an amount (the “Base Amount”)
equal to the lesser of (a) the principal amount of Securities surrendered
for conversion and (b) the Conversion Value; and

 

(ii)                                  if
the Conversion Value of the Securities surrendered for conversion is greater
than the principal amount of the Securities, an amount of whole share of Common
Stock (the “Excess Value”) equal to the sum of
the Daily Share Amounts (calculated as described below) for each Trading Day
during the Applicable Conversion Period, provided that
in no event shall the Excess Value exceed the greater of (a) the Total
Conversion Shares at Issuance (as defined below), and (b) the then
existing number of shares of Common Stock authorized for issuance and available
to be allocated as Excess Value.

 

The “Applicable Conversion
Period” means the 20 consecutive Trading Day period commencing after
(and including) the third Trading Day following the conversion date.

 

79

 

The “Total Conversion Shares at
Issuance” is equal to (a) the total number of $1,000 principal
amount of Securities issued, multiplied by (b) the initial Conversion Rate
(as adjusted for any splits or combinations).

 

The “Daily Share Amount,”
for each $1,000 principal amount of Securities and each Trading Day in the
Applicable Conversion Period, is equal to a number of shares of Common Stock
determined by the following formula:

 

Closing Sale Price on such Trading
Day x the applicable Conversion Rate - $1,000

Closing Sale Price on such Trading
Day x 20

 

The Conversion Value, Base Amount, and
Excess Value will be determined by the Company promptly after the end of the
Applicable Conversion Period.

 

(b)                                 The
Company will not issue fractional shares of Applicable Stock upon conversion of
the Securities but instead will pay the cash value of such fractional shares
based upon the Closing Sale Price of the Applicable Stock on the Trading Day
immediately preceding the Conversion Date. 
Upon conversion of a Security, a Holder will not receive any separate
cash payment of interest (including Additional Interest, if any) unless such
conversion occurs between a Record Date and the Interest Payment Date to which
that Record Date relates.

 

(c)                                  If
a Holder tenders Securities for conversion and the Conversion Value is being
determined at a time when the Securities are convertible into other property in
addition to or in lieu of Common Stock, the Conversion Value of each Security
will be determined based on the kind and amount of shares of stock, securities
or other property or assets (including cash or any combination thereof) that a
Holder of a number of shares of Common Stock equal to the Conversion Rate would
have owned or been entitled to receive in such transaction and the value
thereof as determined pursuant to Section 12.13(a).

 

ARTICLE XIII

 

SUBSIDIARY
GUARANTEES

 

Section 13.1                                Guarantee.  (a)  Subject to this Article 13,
each of the Guarantors hereby, jointly and severally, unconditionally
guarantees (a “Subsidiary Guarantee”) to each
Holder of a Note authenticated and delivered by the Trustee and to the Trustee
and its successors and assigns, irrespective of the validity and enforceability
of this Indenture, the Securities or the obligations of the Company hereunder
or thereunder, that:

 

(i)                                     the
principal of, premium, if any, and interest on the Securities will be promptly
paid in full when due, whether at maturity, by acceleration, redemption or
otherwise, and interest on the overdue principal of and interest on the
Securities, if any, if lawful, and all other obligations of the Company to the
Holders or the Trustee hereunder or thereunder will be promptly paid in full,
all in accordance with the terms hereof and thereof; and

 

(ii)                                  in
case of any extension of time of payment or renewal of any Securities or any of
such other obligations, that same will be promptly paid in full when due or 

 

80

 

performed
in accordance with the terms of the extension or renewal, whether at stated
maturity, by acceleration or otherwise.

 

Failing payment when due of
any amount so guaranteed, for whatever reason, the Guarantors will be jointly
and severally obligated to pay the same immediately.  Each Guarantor agrees that this is a
guarantee of payment and not a guarantee of collection.

 

(b)                                 The
Guarantors hereby agree that their obligations hereunder are unconditional,
irrespective of the validity, regularity or enforceability of the Securities or
this Indenture, the absence of any action to enforce the same, any waiver or
consent by any Holder of the Securities with respect to any provisions hereof
or thereof; the recovery of any judgment against the Company, any action to
enforce the same or any other circumstance which might otherwise constitute a
legal or equitable discharge or defense of a guarantor.  Each Guarantor hereby waives diligence,
presentment, demand of payment, filing of claims with a court in the event of
insolvency or bankruptcy of the Company, any right to require a proceeding
first against the Company, protest, notice and all demands whatsoever and
covenant that this Subsidiary Guarantee will not be discharged except by
complete performance of the obligations contained in the Securities and this
Indenture.

 

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

 

(d)                                 Each
Guarantor agrees that it will not be entitled to any right of subrogation in
relation to the Holders in respect of any obligations guaranteed hereby until
payment in full of all obligations guaranteed hereby.  Each Guarantor further agrees that, as between
the Guarantors, on the one hand, and the Holders and the Trustee, on the other
hand, (1) the maturity of the obligations guaranteed hereby may be
accelerated as provided in Article VIII hereof for the purposes of
this Subsidiary Guarantee, notwithstanding any stay, injunction or other prohibition
preventing such acceleration in respect of the obligations guaranteed hereby,
and (2) in the event of any declaration of acceleration of such
obligations as provided in Article VIII hereof, such obligations
(whether or not due and payable) will forthwith become due and payable by the
Guarantors for the purpose of this Subsidiary Guarantee.  The Guarantors will have the right to seek
contribution from any non-paying Guarantor so long as the exercise of such right
does not impair the rights of the Holders under the Subsidiary Guarantee.

 

Section 13.2                                Limitation
on Guarantor Liability.  Each
Guarantor, and by its acceptance of Securities, each Holder, hereby confirms
that it is the intention of all such parties that the Subsidiary Guarantee of
such Guarantor not constitute a fraudulent transfer or conveyance for purposes
of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform
Fraudulent Transfer Act or any similar federal or state law to the extent
applicable to any Subsidiary Guarantee.  To
effectuate the foregoing intention, the Trustee, the Holders and the Guarantors
hereby irrevocably agree that the obligations of such Guarantor will be limited
to the maximum amount that will, after giving effect to such maximum amount and
all other contingent and fixed liabilities of such Guarantor that are relevant
under such laws, and after giving effect to any 

 

81

 

collections from,
rights to receive contribution from or payments made by or on behalf of any
other Guarantor in respect of the obligations of such other Guarantor under
this Article XIII, result in the obligations of such Guarantor
under its Subsidiary Guarantee not constituting a fraudulent transfer or
conveyance.

 

Section 13.3                                Execution
and Delivery of Subsidiary Guarantee. 
To evidence its Subsidiary Guarantee set forth in Section 13.1
hereof, each Guarantor hereby agrees that a notation of such Subsidiary
Guarantee substantially in the form attached as Exhibit B hereto
will be endorsed by an Officer of such Guarantor on each Note authenticated and
delivered by the Trustee and that this Indenture will be executed on behalf of
such Guarantor by one of its Officers.

 

Each Guarantor hereby agrees
that its Subsidiary Guarantee set forth in Section 13.1 hereof will
remain in full force and effect notwithstanding any failure to endorse on each
Note a notation of such Subsidiary Guarantee.

 

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

 

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

 

In the event that the
Company or any of its Subsidiaries creates or acquires any Domestic Subsidiary
after the date of this Indenture, if required by Section 6.10 hereof,
the Company will cause such Domestic Subsidiary to comply with the provisions
of Section 6.10 hereof and this Article XIII, to the
extent applicable.

 

Section 13.4                                Guarantors
May Consolidate, etc., on Certain Terms.  No Guarantor may sell or otherwise dispose of
all or substantially all of its assets to, or consolidate with or merge with or
into (whether or not such Guarantor is the surviving Person) another Person,
other than the Company or another Guarantor, unless (a) immediately after
giving effect to such transaction, no Default or Event of Default exists, and (b) the
Person acquiring the property in any such sale or disposition or the Person
formed by or surviving any such consolidation or merger assumes all the
obligations of that Guarantor under this Indenture and its Subsidiary Guarantee
pursuant to a supplemental indenture in form and substance reasonably
satisfactory to the Trustee, on the terms set forth herein or therein.

 

In case of any such
consolidation, merger, sale or conveyance and upon the assumption by the
successor Person, by supplemental indenture, executed and delivered to the
Trustee and satisfactory in form to the Trustee, of the Subsidiary Guarantee
endorsed upon the Securities and the due and punctual performance of all of the
covenants and conditions of this Indenture to be performed by the Guarantor,
such successor Person will succeed to and be substituted for the Guarantor with
the same effect as if it had been named herein as a Guarantor.  Such successor Person thereupon may cause to
be signed any or all of the Subsidiary Guarantees to be endorsed upon all of
the Securities issuable hereunder which theretofore shall not have 

 

82

 

been
signed by the Company and delivered to the Trustee.  All the Subsidiary Guarantees so issued will
in all respects have the same legal rank and benefit under this Indenture as
the Subsidiary Guarantees theretofore and thereafter issued in accordance with
the terms of this Indenture as though all of such Subsidiary Guarantees had
been issued at the date of the execution hereof.

 

Except as set forth in Articles
VI and VII hereof and notwithstanding clauses (1) and (2) above,
nothing contained in this Indenture or in any of the Securities will prevent any
consolidation or merger of a Guarantor with or into the Company or another
Guarantor, or will prevent any sale or conveyance of the property of a
Guarantor as an entirety or substantially as an entirety to the Company or
another Guarantor.

 

Section 13.5                                Releases.  Each Subsidiary Guarantor shall be released (a) in connection with any sale or other
disposition of all or substantially all of the assets of that Guarantor
(including by way of merger or consolidation) to a person that is not (either
before or after giving effect to such transaction) the Company or its
Subsidiary, provided that any such termination shall occur only to the extent
that all obligations of such Guarantor under all of its Subsidiary Guarantees
of, and under all of its pledges of assets or other security interests which
secure any Indebtedness of the Company or the Indebtedness of any of the
Guarantors shall also terminate upon such release, sale or transfer; or

 

(b)                                 upon satisfaction and discharge of this
Indenture in accordance with Section 10.1.

 

At the Company’s request and
expense, the Trustee shall promptly execute and deliver an appropriate
instrument evidencing such release upon receipt of a request by the Company
accompanied by an Officers’ Certificate certifying as to the compliance with
this Section 13.5.  Any
Guarantor not released from its obligations under its Subsidiary Guarantee as
provided in this Section 13.5 will remain liable for the full
amount of principal of and interest on the Securities and for the other obligations
of any Guarantor under this Indenture as provided in this Article XIII.

 

ARTICLE XIV

 

CONTINGENT
INTEREST

 

Section 14.1                                Contingent
Interest.  Subject to the accrual and
Record Date provisions described herein, the Company will pay additional
interest (“Contingent Interest”) to the
Holders of Securities during any six-month period from February 1 to July 31
and from August 1 to January 31, commencing with the six-month period
beginning on February 1, 2011, if the Trading Price of a Security for each
of the five Trading Day period ending on the third Trading Day immediately
preceding the first day of the relevant six-month period equals 120% or more of
the principal amount of the Security. 
The amount of Contingent Interest payable per Security with respect to
any six-month period will equal 0.50% per annum of the average market price of
such Security for the five Trading Day period referred to above.

 

83

 

The Bid Solicitation Agent
will initially be the Trustee. The Company may change the Bid Solicitation
Agent, but the Bid Solicitation Agent will not be an affiliate of the
Company.  The Bid Solicitation Agent’s
sole responsibility pursuant to this Section 14.1 shall be to obtain the
Trading Price of the Securities for each Trading Day during the applicable five
Trading Day period and to provide such information to the Company.  The Company shall determine whether Holders
are entitled to receive Contingent Interest, and if so, provide notice pursuant
to Section 14.3.  Notwithstanding
any term contained in this Indenture or any other document to the contrary, the
Bid Solicitation Agent shall have no responsibilities, duties or obligations
for or with respect to (i) determining whether the Company must pay Contingent
Interest or (ii) determining the amount of Contingent Interest, if any,
payable by the Company.

 

Section 14.2                                Payment
of Contingent Interest.  The Company
will pay Contingent Interest, if any, in the same manner as it will pay
interest as described in Section 6.1. 
Contingent Interest due under this ARTICLE XIV shall be treated for
all purposes of this Indenture like any other interest accruing on the
Securities.

 

Section 14.3                                Contingent
Interest Notification.  Upon
determination that Holders of Securities will be entitled to receive Contingent
Interest that may become payable during a relevant six-month period, on or
prior to the start of such six-month period, the Company will provide notice to
the Trustee setting forth the amount of Contingent Interest per $1,000
principal amount of Securities and disseminate a press release through a public
medium that is customary for such press releases.  The Company may unilaterally increase the
amount of Contingent Interest it may pay or pay interest or other amounts it is
not obligated to pay, but the Company will have no obligation to do so.

 

ARTICLE XV

 

MISCELLANEOUS

 

Section 15.1                                Trust
Indenture Act Controls.  If any
provision of this Indenture limits, qualifies, or conflicts with the duties
imposed by § 318(c) of the TIA, such section of the TIA shall
control.  If any provision of this
Indenture expressly modifies or excludes any provision of the TIA that may be
so modified or excluded under the TIA, the Indenture provision so modifying or
excluding such provision of the TIA shall be deemed to apply.

 

Section 15.2                                Notices.  Any notice or communication by the Company,
any Guarantor or the Trustee to the others is duly given if in writing and
delivered in Person or mailed by first class mail (registered or certified,
return receipt requested), telex, telecopier or overnight air courier
guaranteeing next day delivery, to the others’ address:

 

If to the Company and/or any Guarantor:

 

DRS Technologies, Inc.

5 Sylvan Way

Parsippany, New Jersey 07054

Telecopier No.: 
(973) 898-1500

Attention: 
Chief Financial Officer

 

84

 

With a copy to:

 

Skadden, Arps, Slate, Meagher & Flom LLP

Four Times Square

New York, New York 10036

Telecopier No.: 
(212) 735-2000

Attention: 
David J. Goldschmidt, Esq.

 

If to the Trustee:

 

The Bank of New York

101 Barclay Street-8 West

New York, New York 10286

Telecopier No.: 
(212) 815-5707

Attention: 
Corporate Trust Administration

 

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

 

All notices and communications (other than those sent
to Holders) will be deemed to have been duly given:  at the time delivered by hand, if personally
delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; when answered back, if telexed; when receipt acknowledged,
if telecopied; and the next Business Day after timely delivery to the courier,
if sent by overnight air courier guaranteeing next day delivery.

 

Any notice or communication to a Holder will be mailed
by first class mail, certified or registered, return receipt requested, or by
overnight air courier guaranteeing next day delivery to its address shown on
the register kept by the Registrar.  Any
notice of communication will also be mailed to any Person described in § 313(c) of
the TIA, to the extent required by the TIA.

 

If a notice or communication is mailed in the manner
provided above within the time prescribed, it is duly given, whether or not the
addressee receives it.

 

If the Company mails a notice or communication to
Holders, it will mail a copy to the Trustee and each Agent at the same time.

 

Section 15.3                                Communication
by Holders with Other Holders.

 

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

 

Section 15.4                                Certificate
and Opinion as to Conditions Precedent.

 

Upon any request or
application by the Company to the Trustee to take any action under this
Indenture, the Company shall furnish to the Trustee (except that the Opinion of

 

85

 

Counsel
referred to in Section 15.4(b) hereof shall not be required in
connection with the Authentication Order):

 

(a)                                  an
Officers’ Certificate in form and substance reasonably satisfactory to the
Trustee (which must include the statements set forth in Section 15.5
hereof) stating that, in the opinion of the signers, all conditions precedent
and covenants, if any, provided for in this Indenture relating to the proposed
action have been satisfied; and

(b)                                 an
Opinion of Counsel in form and substance reasonably satisfactory to the Trustee
(which must include the statements set forth in Section 15.5 hereof)
stating that, in the opinion of such counsel, all such conditions precedent and
covenants have been satisfied.

 

Section 15.5                                Statements
Required in Certificate or Opinion.

 

Each certificate or opinion
with respect to compliance with a condition or covenant provided for in this
Indenture (other than a certificate provided pursuant to § 314(a)(4) of
the TIA) must comply with the provisions of § 314(e) of the TIA and
must include:

 

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

 

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

 

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

 

(d)                                 a
statement as to whether or not, in the opinion of such Person, such condition
or covenant has been satisfied.

 

Section 15.6                                Rules by
Trustee, Paying Agent, Conversion Agent, Registrar.

 

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

 

Section 15.7                                No
Personal Liability of Directors, Officers, Employees and Stockholders.

 

No director, officer,
employee, incorporator or stockholder of the Company or any Subsidiary (other
than the Company or a Guarantor in its capacity as a stockholder of a
Subsidiary), as such, will have any liability for any obligations of the
Company or the Guarantors under the Securities, this Indenture, the Subsidiary
Guarantees or for any claim based on, in respect of, or by reason of, such
obligations or their creation.  Each Holder
of Securities by accepting a Note waives and releases all such liability.  The waiver and release are part of the
consideration for issuance of the Securities. 
The waiver may not be effective to waive liabilities under the federal
securities laws.

 

86

 

Section 15.8                                Governing
Law.

 

THE INTERNAL LAW OF THE
STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE, THE
SECURITIES AND THE SUBSIDIARY GUARANTEES WITHOUT GIVING EFFECT TO APPLICABLE
PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS
OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 

Section 15.9                                No
Adverse Interpretation of Other Agreements.

 

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

 

Section 15.10                          Successors.

 

All agreements of the
Company in this Indenture and the Securities will bind its successors.  All agreements of the Trustee in this
Indenture will bind its successors.  All
agreements of each Guarantor in this Indenture will bind its successors, except
as otherwise provided in Section 13.5.

 

Section 15.11                          Severability.

 

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

 

Section 15.12                          Counterpart
Originals.

 

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

 

Section 15.13                          Table
of Contents, Headings, etc.

 

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

 

Section 15.14                          Force
Majeure.

 

In no event shall the
Trustee be responsible or liable for any failure or delay in the performance of
its obligations hereunder arising out of or caused by, directly or indirectly,
forces beyond its control, including, without limitation, strikes, work
stoppages, accidents, acts of war or terrorism, civil or military disturbances,
nuclear or natural catastrophes or acts of God, and interruptions, loss or
malfunctions of utilities, communications or computer (software and hardware)
services; it being understood that the Trustee shall use reasonable efforts
which are 

 

87

 

consistent
with accepted practices in the banking industry to resume performance as soon
as practicable under the circumstances.

 

[Signatures on following page]

 

88

 

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

 

	
   

  	
  DRS
  TECHNOLOGIES, INC., as Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard
  A. Schneider

  	
   

  
	
   

  	
  Name:

  	
  Richard A. Schneider

  
	
   

  	
  Title:

  	
  Executive VP, CFO

  
	
   

  	
   

  
	
   

  	
  NAI TECHNOLOGIES, INC.

  
	
   

  	
  DRS ELECTRONIC SYSTEMS, INC.

  
	
   

  	
  DRS SURVEILLANCE SUPPORT SYSTEMS, INC.

  
	
   

  	
  DRS TECHNICAL SERVICES, INC.

  
	
   

  	
  DRS POWER & CONTROL TECHNOLOGIES,
  INC.

  
	
   

  	
  DRS ELECTRIC POWER TECHNOLOGIES, INC.

  
	
   

  	
  DRS POWER TECHNOLOGY, INC.

  
	
   

  	
  DRS TACTICAL SYSTEMS GLOBAL SERVICES, INC.

  
	
   

  	
  DRS TACTICAL SYSTEMS, INC.

  
	
   

  	
  DRS ENGINEERING DEVELOPMENT LABS, INC.

  
	
   

  	
  DRS SIGNAL TECHNOLOGIES, INC.

  
	
   

  	
  DRS SIGNAL RECORDING TECHNOLOGIES, INC.

  
	
   

  	
  DRS SYSTEMS MANAGEMENT CORPORATION

  
	
   

  	
  DRS OPTRONICS, INC.

  
	
   

  	
  DRS SENSORS & TARGETING SYSTEMS,
  INC.

  
	
   

  	
  DRS FPA, INC.

  
	
   

  	
  DRS INFRARED TECHNOLOGIES, L.P.

  
	
   

  	
  DRS UNMANNED TECHNOLOGIES, INC.

  
	
   

  	
  DRS DATA & IMAGING SYSTEMS, INC.

  
	
   

  	
  DRS TECHNOLOGIES CANADA, INC.

  
	
   

  	
  DRS COMMUNICATIONS COMPANY, LLC

  
	
   

  	
  DRS SYSTEMS, INC.

  
	
   

  	
  NIGHT VISION EQUIPMENT CO., INC.

  
	
   

  	
  DRS TRAINING & CONTROL SYSTEMS,
  INC.

  
	
   

  	
  DRS INTERNATIONAL, INC.

  
	
   

  	
  DRS CODEM SYSTEMS, INC.

  
	
   

  	
  INTEGRATED DEFENSE TECHNOLOGIES, INC.

  
	
   

  	
  TECH-SYM CORPORATION

  
	
   

  	
  DRS TEST & ENERGY MANAGEMENT, INC.

  
	
   

  	
  DRS EW & NETWORK SYSTEMS, INC.

  
	
   

  	
  DRS SIGNAL SOLUTIONS, INC.

  
	
   

  	
  MAXCO, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard
  A. Schneider

  	
   

  
	
   

  	
  Name:

  	
  Richard A. Schneider

  
	
   

  	
  Title:

  	
  Authorized Signatory

  
					

 

SIGNATURE PAGE TO INDENTURE

 

 

	
   

  	
  THE BANK OF
  NEW YORK, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kisha A.
  Holder

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Kisha A.
  Holder

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President

  
					

 

SIGNATURE PAGE TO INDENTURE

 

 

EXHIBIT A

 

[FORM OF FACE OF NOTE]

 

[UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE
TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.  THIS SECURITY IS A GLOBAL SECURITY WITHIN THE
MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME
OF A DEPOSITARY OR A NOMINEE THEREOF. 
THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A
PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED
IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT
BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE
DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER
NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.](1)

 

[THE
SECURITY EVIDENCED BY THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE ‘‘SECURITIES ACT OF 1933’’) OR ANY
STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH
IN THE FOLLOWING SENTENCE. BY ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST
HEREIN, THE HOLDER (1) REPRESENTS THAT (A) IT IS A ‘‘QUALIFIED
INSTITUTIONAL BUYER’’ AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT OF 1933
OR (B) IT IS AN INSTITUTIONAL ‘‘ACCREDITED INVESTOR’’ AS DEFINED IN RULE
501(a)(1), (2), (3) or (7) UNDER THE SECURITIES ACT OF 1933 (AN ‘‘INSTITUTIONAL
ACCREDITED INVESTOR’’) THAT IS PURCHASING AT LEAST $100,000 IN AGGREGATE
PRINCIPAL AMOUNT OF THE SECURITY EVIDENCED HEREBY; (2) AGREES THAT IT WILL
NOT RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY OR THE SHARES OF
COMMON STOCK ISSUABLE UPON CONVERSION OF SUCH SECURITY EXCEPT (A) TO THE
COMPANY OR ANY SUBSIDIARY THEREOF, (B) TO A QUALIFIED INSTITUTIONAL BUYER
AS DEFINED IN, AND IN COMPLIANCE WITH, RULE 144A UNDER THE SECURITIES ACT OF
1933, (C) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144
UNDER THE

 

(1)                                  This
legend should be included only if the Note is a Global Security.

 

A-1

 

SECURITIES
ACT OF 1933 (IF AVAILABLE), (D) PURSUANT TO AN EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OF 1933 TO AN INSTITUTIONAL
ACCREDITED INVESTOR THAT, PRIOR TO SUCH TRANSFER, FURNISHES TO THE BANK OF NEW
YORK, AS TRUSTEE (OR ANY SUCCESSOR TRUSTEE, AS APPLICABLE), SUCH CERTIFICATIONS
AND OPINION OF COUNSEL REQUIRED BY THE COMPANY OR THE TRUSTEE OR (E) PURSUANT
TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE
SECURITIES ACT OF 1933 AND WHICH CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH
TRANSFER; AND (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THE
SECURITY EVIDENCED HEREBY IS TRANSFERRED PURSUANT TO CLAUSE 2(B) OR 2(D) ABOVE,
A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.

 

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.](2)

 

THIS SECURITY WAS ISSUED WITH ORIGINAL ISSUE
DISCOUNT FOR UNITED STATES FEDERAL INCOME TAX PURPOSES.  FOR PURPOSES OF SECTIONS 1272, 1273 AND 1275
OF THE INTERNAL REVENUE CODE, THE ISSUE PRICE OF EACH SECURITY IS $1,000 PER
$1,000 OF PRINCIPAL AMOUNT, THE ISSUE DATE IS JANUARY 31, 2006 AND THE
COMPARABLE YIELD IS 7.375% PER ANNUM. 
HOLDERS OF THIS SECURITY MAY OBTAIN INFORMATION REGARDING THE
AMOUNT OF ORIGINAL ISSUE DISCOUNT, YIELD TO MATURITY AND THE PROJECTED PAYMENT SCHEDULE FOR
THIS SECURITY BY SUBMITTING A WRITTEN REQUEST FOR SUCH INFORMATION TO:  DRS TECHNOLOGIES, INC., 5 SYLVAN WAY,
PARSIPPANY, NJ 07054, ATTN: INVESTOR RELATIONS.

 

FOR UNITED STATES FEDERAL INCOME TAX
PURPOSES, THE COMPANY AGREES, AND BY ACCEPTANCE OF A BENEFICIAL INTEREST IN
THIS SECURITY EACH BENEFICIAL HOLDER SHALL BE DEEMED TO HAVE AGREED, THAT (I)
THE SECURITIES ARE CONTINGENT PAYMENT DEBT INSTRUMENTS AS DEFINED IN TREASURY
REGULATIONS SECTION 1.1275-4(B), (II) EACH BENEFICIAL HOLDER SHALL BE
BOUND BY THE COMPANY’S APPLICATION OF THE TREASURY REGULATIONS TO THE
SECURITIES, (III) EACH BENEFICIAL HOLDER SHALL USE THE PROJECTED PAYMENT SCHEDULE WITH
RESPECT TO THE SECURITIES DETERMINED BY THE COMPANY, AS REQUIRED BY TREASURY
REGULATIONS SECTION 1.1275-4(B)(4)(IV), TO DETERMINE ITS INTEREST ACCRUALS
AND ADJUSTMENTS AS PROVIDED IN TREASURY REGULATIONS SECTION 1.1275-4(B),
AND (IV) THE COMPANY AND EACH BENEFICIAL HOLDER WILL NOT TAKE ANY POSITION ON A
TAX RETURN INCONSISTENT WITH (I), (II), OR (III), UNLESS REQUIRED BY APPLICABLE
LAW.

 

(2)                                  This
legend should be included on if the Note is a Transfer Restricted Security.

 

A-2

 

DRS TECHNOLOGIES, INC.

 

2.00% Convertible
Senior Notes due 2026

 

	
   

  	
   

  	
  $          

  
	
   

  	
   

  	
   

  
	
  No.    

  	
  CUSIP: [                             ]

  

 

DRS TECHNOLOGIES, INC., a Delaware
corporation (the “Company”, which
term shall include any successor Person under the Indenture referred to on the
reverse hereof), for value received, promises to pay to CEDE & CO., or
registered assigns, on February 1, 2026, the principal amount of [                             ] DOLLARS[, or
such lesser or greater principal amount at Stated Maturity as is indicated on
the Schedule attached hereto].(3)

 

In addition, for value received, the
Company hereby promises to pay to the Holder of this Note, or registered
assigns, from January 31, 2006, or from the most recent Interest Payment
Date to which interest has been paid or provided for, to, but not including, February 1,
2026, interest at an annual rate of 2.00% of the principal amount of this Note,
except that interest will never be less than zero.  Interest on this Note is payable
semi-annually in arrears on February 1 and August 1 in each year
(each, an “Interest Payment Date”),
with the first Interest Payment Date being August 1, 2006.  Each payment of cash interest on this Note
will include interest accrued through the day before the applicable Interest
Payment Date.

 

The interest so payable, and punctually
paid or duly provided for, on any Interest Payment Date shall, except as
provided in the Indenture, be paid to the Person in whose name this Note (or
one or more predecessor Notes) is registered at the close of business on the
record date for such interest, which shall be the January 15 or July 15
(whether or not a Business Day), as the case may be, immediately preceding the
corresponding Interest Payment Date (a “Record
Date”).

 

From and after any six-month period from February 1
to July 31 and from August 1 to January 31, commencing with the
six-month period beginning on February 1, 2011, the Company shall pay
Contingent Interest on this Note under the circumstances and in the amounts
described in Article XIV of the Indenture. Such Contingent Interest, if
any, shall be payable semi-annually in arrears on each Interest Payment Date to
the Holder of this Note as of the close of business on the Record Date relating
to such Interest Payment Date.

 

Contingent Interest, if any, shall accrue
from February 1 to July 31 and from August 1 to January 31,
as applicable, and shall be payable on the next succeeding Interest Payment
Date. Contingent Interest shall be paid to the Person in whose name a Note is
registered on the next preceding Record Date on which Contingent Interest is
payable.

 

The amount of Contingent Interest payable
per $1,000 principal amount of Notes in respect of any Contingent Interest
Period shall equal 0.50% per annum of the average trading

 

(3)                                  This phrase should be included only if the Note is a Global Security.

 

A-3

 

price of the Notes for the five
Trading Day period ending on the third Trading Day immediately preceding the
first day of the relevant six-month period.

 

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

 

A-4

 

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

 

	
  Dated:

  	
  DRS TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: 

  
	
   

  	
   

  	
  Title:

  

 

A-5

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

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

 

	
  Dated:

  	
  THE BANK OF NEW
  YORK, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  

 

A-6

 

[FORM OF REVERSE OF NOTE]

 

2.00%
Convertible Senior Notes due 2026

 

This Note is one of a duly
authorized issue of 2.00% Convertible Senior Notes due 2026 (the “Notes”) of DRS TECHNOLOGIES, INC., a
Delaware corporation (including any successor corporation under the Indenture
hereinafter referred to, the “Company”),
issued under an Indenture, dated as of January 31, 2006 (the “Indenture”), by and among the Company, the
guarantors party thereto and The Bank of New York, as Trustee (the “Trustee”). 
The terms of the Note include those stated in the Indenture, those made
part of the Indenture by reference to the Trust Indenture Act of 1939, as
amended (“TIA”), and those set
forth in this Note.  This Note is subject
to all such terms, and Holders are referred to the Indenture and the TIA for a
statement of all such terms.  To the extent
permitted by applicable law, in the event of any inconsistency between the
terms of this Note and the terms of the Indenture, the terms of the Indenture
shall control.  Capitalized terms used
but not defined herein have the meanings assigned to them in the Indenture
unless otherwise indicated.

 

1.                                       Interest.

 

(a)                                  Interest and
Contingent Interest.

 

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

 

If any Interest Payment Date
(other than an Interest Payment Date coinciding with the Stated Maturity date
or earlier Redemption Date) of this Note falls on a day that is not a Business
Day, such Interest Payment Date will be postponed to the next succeeding
Business Day, provided that, if
such Business Day falls in the next succeeding calendar month, the Interest
Payment Date will be brought forward to the immediately preceding Business
Day.  If the Stated Maturity date or
Redemption Date of this Note would fall on a day that is not a Business Day,
the required payment of interest, if any, and principal will be made on the
next succeeding Business Day and no interest on such payment will accrue for
the period from and after the Stated Maturity date or Redemption Date to such
next succeeding Business Day.

 

If the Holder elects to
require the Company to purchase this Note pursuant to Section 6 of this
Note on a date that is after the Record Date and on or before the corresponding
Interest Payment Date, interest (including Contingent Interest and Additional
Interest, if any) accrued and unpaid hereon to, but excluding, the applicable
Purchase Date or Fundamental Change Purchase Date shall be paid to the same
Holder to whom the Company pays the principal of this Note.  Interest (including Contingent Interest and Additional
Interest, if any) accrued and unpaid hereon at the Stated Maturity also shall
be paid to the same Holder to whom the Company pays the principal of this Note.

 

Interest (including
Contingent Interest, if any) on Notes converted after the close of business on
a Record Date but prior to the opening of business on the corresponding
Interest Payment Date shall be paid to the Holder of the Notes on the Record
Date but, upon conversion, the Holder must pay the Company an amount equal to
the interest (including Contingent Interest,

 

A-7

 

if
any) which has accrued and shall be paid on such Interest Payment Date.  No such payment need be made with respect to (1) Notes
converted after a Record Date and prior to the corresponding Interest Payment
Date after being called for redemption or (2) any overdue interest
existing at the time of conversion with respect to the Notes converted, but
only to the extent of the amount of such overdue interest.

 

Except as described above,
the Company will not make any payment or other adjustment for accrued and
unpaid interest (including Contingent Interest, if any) on any Note when they
are converted. If a Holder of Notes converts after the Record Date for an
interest payment, but prior to the corresponding Interest Payment Date, the
Holder on the Record Date will receive on that Interest Payment Date accrued
interest on those Notes, despite the conversion of those Notes prior to that
Interest Payment Date, because that Holder will have been the holder of record
on the corresponding Record Date. 
However, at the time that such Holder (or transferee thereof) surrenders
Notes for conversion, the Holder (or such transferee, as applicable) must pay
to the Company an amount equal to the interest (including Contingent Interest,
if any) that has accrued and that will be paid on the related Interest Payment
Date. The preceding sentence does not apply to (1) Notes that are
converted after being called by the Company for redemption, (2) any overdue
interest existing at the time of conversion with respect to the Notes
converted, but only to the extent of the amount of such overdue interest or (3) Additional
Interest.  Accordingly, under the
circumstances described in clause (1), if the Company elects to redeem Notes
and a Holder of Notes chooses to convert those Notes on a date that is after a
Record Date, but prior to the corresponding Interest Payment Date, the Holder
will not be required to pay the Company, at the time such Holder surrenders those
Notes for conversion, the amount of interest it will receive on the Interest
Payment Date.

 

All references herein to
interest accrued or payable as of any date shall, without duplication, be
deemed to include Contingent Interest.

 

(b)                                 Additional Interest.  The Company will pay Additional Interest, if
any, as set forth herein and in Section 3 of the Registration Rights
Agreement.  The Company will pay
Additional Interest, if any, quarterly in arrears on each Additional Interest
Payment Date.  The first quarterly
payment shall be due on the first Additional Interest Payment Date following
the date on which such Additional Interest begins to accrue, and will accrue on
the Notes at a rate per annum equal to 0.25% for the first 90-day period.  The amount of Additional Interest will
increase by an additional per annum rate of 0.25% with respect to each
subsequent 90-day period until the satisfaction of certain conditions as set
forth in the Registration Rights Agreement. 
Additional Interest, if any, shall be payable only to Holders who have
duly returned a completed and signed election and questionnaire in accordance
with the Registration Rights Agreement. 
The Company will pay Additional Interest (including post-petition
interest in any proceeding under any Bankruptcy Law) on overdue installments of
Additional Interest, if any, (without regard to any applicable grace periods)
from time to time on demand at a rate that is 1% per annum in excess of the
rate then in effect.  Interest will be
computed on the basis of a 360-day year comprised of twelve 30-day months.

 

The Company will pay
Additional Interest, if any, on the Notes to Holders of Notes as required by
the Registration Rights Agreement on the next Additional Interest Payment Date,
even if such Notes are canceled on or before such Additional Interest Payment
Date,

 

A-8

 

except
as provided in Section 6.1 of the Indenture with respect to
defaulted interest.  Payment of
Additional Interest, if any, will be made, at the Company’s option, either (a) by
check mailed to the Holders at their addresses set forth on the Election and
Notice (as defined in the Registration Rights Agreement) delivered to the
Company in accordance with the provisions of the Registration Rights Agreement,
(b) pursuant to the applicable procedures of DTC or (c) as otherwise
set forth in the Indenture.  Such payment
will be in such coin or currency of the United States of America as at the time
of payment is legal tender for payment of public and private debts.  The Company will not pay any Additional
Interest on any Note after it has been converted into cash, and, if applicable,
shares of the Company’s common stock

 

2.                                       Method of Payment.

 

Payment of the principal of
and interest on the Notes (including Contingent Interest and Additional
Interest, if any) shall be in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts.  The Holder must surrender
the Notes to the Paying Agent to collect payment of principal.  Payment of interest (including Contingent
Interest and Additional Interest, if any) on Certificated Securities in the
aggregate principal amount of $5,000,000 or less shall be made by check mailed
to the address of the Person entitled thereto as such address appears in the
Register, and payment of interest on Certificated Securities in aggregate
principal amount in excess of $5,000,000 shall be made by wire transfer in
immediately available funds if requested in writing by the Holder of Notes at
least 10 Business Days prior to the relevant Interest Payment Date and
otherwise by check mailed to the Holder. 
Notwithstanding the foregoing, so long as the Notes are registered in
the name of a Depositary or its nominee, all payments with respect to the Notes
shall be made by wire transfer of immediately available funds to the account of
the Depositary or its nominee.  At the
Stated Maturity, interest (including Contingent Interest and Additional
Interest, if any) on Certificated Securities will be payable at the principal
corporate trust office of the Trustee described in the Indenture.

 

3.                                       Paying Agent, Registrar and Conversion
Agent.

 

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

 

4.                                       Indenture.

 

The Notes are general senior
obligations of the Company initially issued in an aggregate principal amount of
$300,000,000 (or $345,000,000 if the Initial Purchasers’ option to purchase
additional Notes set forth in the Purchase Agreement is exercised in
full).  The Indenture does not limit
other indebtedness of the Company, secured or unsecured.

 

5.                                       Redemption of the Notes by the Company.

 

Subject to the terms and
conditions of the Indenture, the Company may, at its option, redeem for cash
all or a portion of the Notes at any time on or after February 1, 2009 and

 

A-9

 

prior
to February 4, 2011, if the Closing Sale Price of the Company’s Common
Stock has exceeded 130% of the Conversion Price for at least twenty (20)
Trading Days in any consecutive 30-day trading period ending on the Trading Day
prior to the mailing of the notice of redemption, at a Redemption Price equal
to 100% of the principal amount of the Notes to be redeemed, plus any accrued
and unpaid interest (including Contingent Interest and Additional Interest, if
any) up to but not including the Redemption Date.

 

If the Company redeems the
Notes as described above after February 1, 2009 and prior to February 4,
2011, the Company shall pay the “make-whole” premium in cash equal to the
present value of all remaining scheduled payments of interest on the notes to
be redeemed through and including February 4, 2011.  The present value of the remaining interest
payments will be computed using a discount rate equal to the Treasury Yield. “Treasury Yield” means the yield to maturity at the time of
computation of United States Treasury securities with a constant maturity (as
compiled and published in the most recent Federal Reserve Statistical Release
H.15 (519) that has become publicly available at least two (2) Business
Days prior to the Redemption Date (or, if such Statistical Release is no longer
published, any publicly available source for similar market data)) most nearly
equal to the then remaining term to February 4, 2011; provided, however,
that if the then remaining term to February 4, 2011 is not equal to the
constant maturity of a United States Treasury security for which a weekly
average yield is given, the Treasury Yield shall be obtained by linear
interpolation (calculated to the nearest one-twelfth of a year) from the weekly
average yields of United States Treasury securities for which such yield are
given, except that if the then remaining term to February 4, 2011 is less
than one year, the weekly average yield on actually traded United States
Treasury securities adjusted to a constant maturity of one year shall be used.
If the Redemption Date occurs after a Record Date and on or prior to an
Interest Payment Date, accrued and unpaid interest (including Contingent
Interest, if any) shall be paid on such Interest Payment Date to the record
Holder on the relevant Record Date.

 

Subject to the terms and
conditions of the Indenture, the Company may, at its option, redeem for cash
all or a portion of the Notes at any time on or after February 4, 2011 at
a redemption price equal to 100% of the principal amount of the Notes to be
redeemed plus accrued and unpaid interest (including Contingent Interest and
Additional Interest, if any) to, but not including, the Redemption Date.

 

At least 30 calendar days
but not more than 60 calendar days before a Redemption Date, the Company shall
mail a notice of redemption by first-class mail, postage prepaid, to each
Holder of Notes to be redeemed. Once notice of redemption is given, Notes
called for redemption become due and payable on the Redemption Date and at the
Redemption Price, except for Notes which are converted in accordance with the terms
of the Indenture.  Upon surrender to the
Paying Agent, such Notes shall be paid at the Redemption Price.  If the Paying Agent holds, in accordance with
the terms hereof, at 10:00 a.m., New York City time, on the applicable
Redemption Date, cash sufficient to pay the Redemption Price of any Notes for
which notice of redemption is given, then, on such Redemption Date, such Notes
shall cease to be outstanding and interest (including Contingent Interest and
Additional Interest, if any) on such Notes shall cease to accrue, whether or
not such Notes are delivered to the Paying Agent, and the rights of the Holders
in respect thereof shall terminate (other than the right to receive the
Redemption Price upon delivery of such Notes).

 

A-10

 

6.                                       Purchase by the Company at the Option of
the Holder on Specific Dates; Purchase at the Option of the Holder Upon a
Fundamental Change.

 

Each Holder shall have the
right, at the Holder’s option, but subject to the provisions of the Indenture,
to require the Company to purchase all of such Holder’s Notes, or any portion
of the principal amount thereof that is equal to $1,000 or an integral multiple
thereof, on each of February 1, 2011, February 1, 2016 and February 1,
2021.  The Company shall be required to
purchase such Notes at a purchase price in cash equal to 100% of the principal
amount plus accrued and unpaid interest (including Contingent Interest and
Additional Interest, if any) to, but excluding, the Purchase Date.  To exercise such right, a Holder shall
deliver a Purchase Notice to the Paying Agent at any time from the opening of
business on the date that is 22 Business Days prior to the relevant Purchase
Date until 5:00 p.m., New York City time, on the second Business Day prior
to such Purchase Date.

 

In the event that a
Fundamental Change shall occur at any time prior to the Stated Maturity, each
Holder shall have the right, at the Holder’s option, but subject to the
provisions of the Indenture, to require the Company to purchase all of such
Holder’s Notes, or any portion of the principal amount thereof that is equal to
$1,000 or an integral multiple thereof. 
The Company shall be required to purchase such Notes at a Fundamental
Change Purchase Price in cash equal to 100% of the principal amount plus any
accrued and unpaid interest (including Contingent Interest and Additional
Interest, if any) to, but excluding, the Fundamental Change Purchase Date.  To exercise such right, a Holder shall
deliver a Fundamental Change Purchase Notice to the Paying Agent at any time on
or before the 20th Business Day after the date of the Company’s notice of the
Fundamental Change (subject to extension to comply with applicable law).

 

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

 

If the Paying Agent holds,
in accordance with the terms hereof, at 10:00 a.m., New York City time, on
the applicable Purchase Date or Fundamental Change Purchase Date, cash
sufficient to irrevocably pay the Purchase Price or Fundamental Change Purchase
Price, as the case may be, of any Notes for which a Purchase Price or
Fundamental Change Purchase Notice, as the case may be, has been tendered and
not withdrawn pursuant to the Indenture, then, on such Purchase Date or
Fundamental Change Purchase Date, as the case may be, such Notes shall cease to
be outstanding and interest (including Contingent Interest and Additional
Interest, if any) on such Notes shall cease to accrue, whether or not such
Notes are delivered to the Paying Agent, and the rights of the Holders in
respect thereof shall terminate (other than the right to receive the Purchase
Price or Fundamental Change Purchase Price, as the case may be, upon delivery
of such Notes).

 

7.                                       Conversion.

 

This Note is subject to all
of the conversion rights and procedures set forth in the Indenture.

 

A-11

 

Subject to and in compliance
with the provisions of the Indenture (including, without limitation, the
conditions to conversion of this Note set forth in Section 12.1 thereof),
a Holder is entitled, at such Holder’s option, to convert the Holder’s Note (or
any portion of the principal amount thereof that is $1,000 or an integral
multiple thereof), into cash and, in certain circumstances, fully paid and
non-assessable shares of Common Stock at the Conversion Rate in effect on the
date of conversion.  The conversion rate
per $1,000 of principal amount of Notes is initially 16.7504 shares of Common
Stock, and is subject to adjustment in certain events as set forth in the
Indenture.

 

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

 

Except as described in the
Indenture, the Company will not make any payment in cash or Common Stock or
other adjustment for accrued and unpaid interest (including Contingent Interest
and Additional Interest, if any) on any Notes when they are converted. The
Company’s delivery to the Holder of cash and Common Stock, as provided in the
Indenture upon conversion of the Notes, together with any cash payment for such
Holder’s fractional shares, shall be deemed to satisfy the Company’s obligation
to pay the principal amount of the Note and to satisfy its obligation to pay
accrued and unpaid interest (including Contingent Interest and Additional
Interest, if any) through the conversion date. As a result, accrued interest
and Additional Interest are deemed paid in full rather than cancelled,
extinguished or forfeited. 
Notwithstanding the foregoing, accrued interest (including Contingent
Interest and Additional Interest, if any) will be payable upon any conversion
of Notes made concurrently with or after acceleration of the Notes following an
Event of Default.

 

Before any Holder shall be
entitled to convert any Notes, such Holder shall, in the case of Global
Securities, comply with the Applicable Procedures of the Depositary in effect
at that time, and in the case of Certificated Securities, surrender such Notes,
duly endorsed to the Company or in blank, at the office of the Conversion
Agent, and shall give written notice to the Company at said office or place in
the form of the Conversion Notice attached to the Note that such Holder elects
to convert the same and shall state in writing therein the principal amount of
Notes to be converted (in whole or in part so long as the principal amount to
be converted is in multiples of $1,000) and the name or names (with addresses)
in which such Holder wishes the certificate or certificates for Common Stock to
be issued.  Before any such conversion, a
Holder also shall pay all funds required, if any, relating to interest or
Additional Interest, if any, on the Notes, as provided in the Indenture, and
all taxes or duties, if any, as provided in the Indenture.

 

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

 

A-12

 

If and only to the extent a
Holder elects to convert Notes in connection with certain types of Fundamental
Changes to the extent set forth in the Indenture that occur on or prior to February 1,
2011 pursuant to which certain of the consideration for the Common Stock (other
than cash payments for fractional shares and cash payments made in respect of
dissenters’ appraisal rights) in such Fundamental Change transaction consists
of cash or securities (or other property) that are not traded or scheduled to
be traded immediately following such transaction on a U.S. national securities
exchange or the Nasdaq National Market, such Holder will be entitled to
receive, in addition to a number of shares of Common Stock equal to the
Conversion Rate per $1,000 principal amount of Notes, an additional number of
shares of Common Stock as described in the Indenture, subject to a right of the
Company to elect not to issue such additional shares but in lieu thereof to
provide for the convertibility of the Notes into publicly-traded securities of
the acquiring entity, all as set forth in the Indenture.

 

8.                                       Denominations; Transfer; Exchange.

 

The Notes shall be issued in
fully registered form, without coupons, in denominations of $1,000 of the
principal amount and integral multiples thereof.  A Holder may transfer or exchange Notes in
accordance with the Indenture and this Note. 
The Registrar may require a Holder, among other things, to furnish
appropriate endorsements and transfer documents and to pay any taxes and fees
required by law or permitted by the Indenture. 
Neither the Company, the Registrar nor the Trustee shall be required to
exchange or register a transfer of (i) any Notes selected for redemption
(except, in the case of Notes to be redeemed in part, the portion thereof not
to be redeemed), (ii) any Notes in respect of which a Purchase Notice or a
Fundamental Change Purchase Notice has been given and not withdrawn by the
Holder thereof in accordance with the terms of this Indenture (except, in the
case of Notes to be repurchased in part, the portion thereof not to be
repurchased), or (iii) any Notes surrendered for conversion (except, in
the case of Notes to be converted in part, the portion thereof not to be
converted).

 

9.                                       Persons Deemed Owners.

 

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

 

10.                                 Unclaimed Money or Securities.

 

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

 

11.                                 Amendment; Waiver.

 

Subject to certain
exceptions set forth in the Indenture, (i) the Indenture or the Notes may
be amended with the written consent or affirmative vote of the Holders of at
least a majority in aggregate principal amount of the outstanding Notes and (ii) certain
Defaults may be

 

A-13

 

waived
with the written consent or affirmative vote of the Holders of a majority in
aggregate principal amount of the outstanding Notes.

 

The Company and the Trustee
may amend the Indenture or the Notes without the consent of any Holder to (a) add
to the covenants of the Company for the benefit of the Holders of Notes; (b) surrender
any right or power conferred upon the Company; (c) provide for conversion
rights of Holders of Notes if any reclassification or change of Common Stock or
any consolidation, merger or sale of all or substantially all of the Company’s
assets occurs; (d) provide for the assumption of the Company or a
Guarantor’s obligations to the Holders of Notes and Subsidiary Guarantees in
the case of a merger or consolidation or sale of all or substantially all of
the Company or such Guarantor’s assets, as applicable; (e) increase the
Conversion Rate; (f) comply with the requirements of the SEC in order to
effect or maintain the qualification of the Indenture under the TIA; (g) make
any changes or modifications necessary in connection with the registration of
the Common Stock to be issued upon conversion under the Securities Act as
contemplated in the Registration Rights Agreement; provided
that such change or modification does not, in the good faith opinion of the
Board of Directors, materially adversely affect the interests of the Holders of
Notes, taken as a whole; (h) evidence and provide the acceptance of the
appointment of a successor trustee under the Indenture; (i) add additional
Subsidiary Guarantees with respect to the Notes or release Guarantors from
Subsidiary Guarantees as provided or permitted by the terms of the Indenture;
(j) cure any ambiguity, mistake, defect or inconsistency; (k) provide for
uncertificated Notes in addition to or in place of Certificated Notes; (l) make
any change that would provide any additional rights or benefits to the Holders
of Notes or that does not materially adversely affect the legal rights under
the Indenture of any such Holder as determined by the Board of Directors; (m)
conform the text of the Indenture or the Notes to any provision of the
“Description of Notes” section of the Offering Memorandum to the extent
that such provision was intended to be a verbatim recitation of a provision of
the Indenture, the Subsidiary Guarantees or the Notes; (n) evidence the
succession of another Person to the Company upon the Notes, and the assumption
by any such successor of covenants of the Company under the Indenture and in
the Notes, in each case in compliance with the provisions of the Indenture; (o)
provide the Holders of Notes with additional rights to require the Company to
purchase the Notes on additional Purchase Dates; or (p) add or modify any other
provisions with respect to matters or questions arising under the Indenture
which the Company and the Trustee may deem necessary or desirable and which
will not adversely affect the interests of the Holders of Notes.

 

12.                                 Defaults and Remedies.

 

If any Event of Default,
other than as a result of certain events of bankruptcy, insolvency or reorganization
of the Company as specified in the Indenture, occurs and is continuing, the
principal amount of all the Notes may be declared due and payable in the manner
and with the effect provided in the Indenture. 
If an Event of Default occurs as a result of certain events of
bankruptcy, insolvency or reorganization of the Company as provided in the
Indenture, the principal amount of all the Notes shall become due and payable
immediately without any declaration or other act on the part of the Trustee or
any Holder, all as and to the extent provided in the Indenture.

 

A-14

 

13.                                 Trustee Dealings with the Company.

 

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

 

14.                                 Calculations in Respect of Notes.

 

The Company or its agents
shall be responsible for making all calculations called for under Article XII
of the Indenture, including, but not limited to, determination of the market
price of the Common Stock.  Any
calculations made in good faith and without manifest error shall be final and
binding on Holders of the Notes.  The
Company or its agents shall be required to deliver to the Trustee a schedule of
its calculations and the Trustee shall be entitled to conclusively rely upon
the accuracy of such calculations without independent verification.

 

15.                                 No Recourse Against Others.

 

No recourse under or upon
any obligation, covenant or agreement contained in the Indenture, or in any
Note, or because of any indebtedness evidenced thereby, shall be had against
any incorporator, as such, or against any past, present or future stockholder,
officer or director, as such, of the Company or of any successor, either
directly or through the Company or any successor, under any rule of law,
statute or constitutional provision or by the enforcement of any assessment or
by any legal or equitable proceeding or otherwise, all such liability being
expressly waived and released by the acceptance of the Notes by the Holders and
as part of the consideration for the issue of the Notes.

 

16.                                 Authentication.

 

This Note shall not be valid
or obligatory for any purpose until an authorized signatory of the Trustee (or
a duly authorized authentication agent) signs, manually or by facsimile, the
Trustee’s Certificate of Authentication on the other side of this Note.

 

17.                                 Abbreviations.

 

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

 

18.                                 INDENTURE TO CONTROL; GOVERNING LAW.

 

IN THE CASE OF ANY CONFLICT
BETWEEN THE PROVISIONS OF THIS NOTE AND THE INDENTURE, TO THE EXTENT PERMITTED
BY APPLICABLE LAW, THE PROVISIONS OF THE INDENTURE SHALL CONTROL.  THE INDENTURE, THIS NOTE AND THE SUBSIDIARY
GUARANTEES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK WITHOUT REFERENCE TO PRINCIPLES OF CONFLICTS OF LAWS.

 

A-15

 

The Company shall furnish to
any Holder upon written request and without charge a copy of the Indenture
which has in it the text of this Note in larger type.  Requests may be made to:

 

DRS TECHNOLOGIES, INC.

5 Sylvan Way

Parsippany, New Jersey 07054 

Attention:  General Counsel

Facsimile No.: (973) 898-1500

 

19.                                 Registration Rights.

 

The Holders of the Notes may
be entitled to the benefits of a Registration Rights Agreement, dated as of January 31,
2006, by and among the Company and the initial purchasers party thereto, as
amended, modified or supplemented in accordance therewith, including the
receipt of Additional Interest upon a Registration Default (as defined in, and
to the extent specified in, such agreement).

 

A-16

 

[TO BE ATTACHED TO
GLOBAL SECURITIES]

 

SCHEDULE OF
INCREASES OR DECREASES IN GLOBAL SECURITY

 

The following increases or
decreases in this Global Security have been made:

 

	
  Date

  	
   

  	
  Amount of decrease in

  Principal Amount of this

  Global Security

  	
   

  	
  Amount of increase in

  Principal Amount of this

  Global Security

  	
   

  	
  Principal Amount of this

  Global Security following

  such decrease or increase

  	
   

  	
  Signature of authorized

  signatory of Trustee

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-17

 

ASSIGNMENT FORM

 

To assign this Note, fill in the form below:

 

I or we assign and transfer this Note to

 

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

 

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

 

and irrevocably appoint
                                                                                                             
agent to transfer this Note on the books of the Company.  The agent may substitute another to act for
him.

 

	
   

  	
  Your
  Signature(s):

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (Sign exactly as your name(s) appears on the

  other side of this Note)

  
	
   

  	
   

  
	
  Signature Guaranteed

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Participant in a Recognized Signature

  Guarantee Medallion Program

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Authorized Signatory

  	
   

  
								

 

A-18

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you wish to have this
Note purchased by the Company pursuant to ARTICLE IV (Purchase at the
Option of Holders on Specific Dates) or ARTICLE V (Purchase at the Option
of Holders Upon a Fundamental Change) of the Indenture, check the box:  ARTICLE IV o  ARTICLE V o.

 

If this Note is to be
purchased by the Company pursuant to ARTICLE IV of the Indenture, check the
box for the applicable Purchase Date: February 1, 2011 o  February 1, 2016 o  February 1, 2021 o.

 

If you wish to have a
portion of this Note purchased by the Company pursuant to ARTICLE IV or ARTICLE V
of the Indenture, as applicable, state the amount (in principal amount):  $
             .

 

If certificated, the serial numbers of the Notes to be delivered for
purchase are:

 

             .

 

Any purchase of Notes
pursuant hereto shall be pursuant to the terms and conditions specified in the
Indenture.

 

	
   

  	
  Your
  Signature(s):

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (Sign exactly as your name(s) appears
  on the

  other side of this Note)

  
	
   

  	
   

  	
   

  
	
  Signature Guaranteed

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Participant in a Recognized Signature

  Guarantee Medallion Program

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
  Authorized Signatory

  	
   

  	
   

  
									

 

A-19

 

CONVERSION NOTICE

 

To convert this Note into
cash or a combination of Common Stock and cash, check the box o.

 

To convert only part of this
Note, state the principal amount to be converted (which must be $1,000 or an
integral multiple
thereof):                      .

 

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

 

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

 

 

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

 

	
   

  	
  Your
  Signature(s):

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Sign exactly as your name(s) appears
  on the other

  side of this Note)

  
	
   

  	
   

  	
   

  
	
  Signature Guaranteed

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Participant in a Recognized Signature

  Guarantee Medallion Program

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
  Authorized Signatory

  	
   

  	
   

  
								

 

A-20

 

TRANSFER CERTIFICATE(4)

 

Re:    2.00% Convertible Senior Notes due 2026
(the “Notes”)

of DRS Technologies, Inc. (the “Company”)

 

	
   

  	
  This
  certificate relates to $           principal
  amount of Notes owned in (check applicable box)

  
	
   

  	
   

  
	
   

  	
  o book-entry

  	
  o definitive
  form by
                    
  (the “Transferor”).

  

 

The Transferor has requested
a Registrar or the Trustee to exchange or register the transfer of such Notes.

 

In connection with such
request and in respect of each such Note, the Transferor does hereby certify
that the Transferor is familiar with transfer restrictions relating to the
Notes as provided in Section 2.6 and Section 2.12 of the Indenture,
dated as of January 31, 2006, among the Company, the guarantors party
thereto and The Bank of New York, as Trustee (the “Indenture”), and the
transfer of such Note is being made pursuant to an effective registration
statement under the Securities Act of 1933, as amended (the “Securities Act”)
(check applicable box) or the transfer or exchange, as the case may be, of such
Note does not require registration under the Securities Act because (check
applicable box):

 

o                                    Such Note is
being acquired for the Transferor’s own account, without transfer; or

 

o                                    Such Note is being transferred to the
Company or a Subsidiary; or

 

o                                    Such Note is being transferred to a
person that the Transferor reasonably believes is a “qualified institutional
buyer,” as defined in, and in compliance with, Rule 144A under the
Securities Act; or

 

o                                    Such Note is being transferred pursuant
to the exemption from the registration requirements of the Securities Act under
Rule 144 (or any successor thereto) (“Rule 144”) under the Securities
Act; or

 

o                                    Such Note is being transferred pursuant
to an effective registration statement under the Securities Act; or

 

o                                    Such Note is being transferred pursuant
to an exemption from the registration requirements of the Securities Act to an
institutional investor that is an “accredited investor” (as defined in Rule 501(a)(1),
(2), (3) or (7) of Regulation D under the Securities Act) that, prior
to the transfer, furnishes to the Trustee such certifications and opinion of
counsel required by the Company or the Trustee.

 

(4)                                  This
certificate should only be included if this Security is a Transfer Restricted
Security.

 

A-21

 

The Transferor acknowledges
and agrees that, if the transferee will hold any such Notes in the form of
beneficial interests in a Global Note that is a “restricted security” within
the meaning of Rule 144 under the Securities Act, then such transfer can
be made only pursuant to Rule 144A under the Securities Act and such
transferee must be a “qualified institutional buyer,” as defined in Rule 144A,
or an institutional investor that is an “accredited investor” (as defined in Rule 501(a)(1),
(2), (3) or (7) of Regulation D under the Securities Act).

 

	
   

  	
   

  
	
  Date:

  	
  Signature(s) of Transferor

  

 

(If the registered owner is a corporation, partnership or fiduciary, the
title of the person signing on behalf of such registered owner must be stated.)

 

	
  Signature Guaranteed

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Participant in a Recognized Signature

  Guarantee Medallion Program

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Authorized Signatory

  	
   

  
					

 

A-22

 

EXHIBIT B

 

FORM OF NOTATION OF GUARANTEE

 

For value received, each
Guarantor (which term includes any successor Person under the Indenture) has,
jointly and severally, unconditionally guaranteed, to the extent set forth and
subject to the provisions in the Indenture (the “Indenture”), dated as
of January 31, 2006, among DRS Technologies, Inc. (the “Company”),
the guarantors party thereto and the Bank of New York, as trustee (the “Trustee”),
(a) the due and punctual payment of the principal of, premium, if any, and
interest (including Contingent Interest and Additional Interest, if any) on,
the Notes, whether at maturity, by acceleration, redemption or otherwise, the
due and punctual payment of interest on overdue principal of and interest
(including Contingent Interest and Additional Interest, if any) on the Notes,
if any, if lawful, and (b) in case of any extension of time of payment or
renewal of any Notes or any of such other obligations, that the same will be
promptly paid in full when due, whether at stated maturity, by acceleration or
otherwise.  The obligations of the
Guarantors to the Holders of Notes and to the Trustee pursuant to the
Subsidiary Guarantee and the Indenture are expressly set forth in Article XIII
of the Indenture and reference is hereby made to the Indenture for the precise
terms of the Subsidiary Guarantee.  Each
Holder of a Note, by accepting the same, (a) agrees to and shall be bound
by such provisions and (b) appoints the Trustee attorney-in-fact of such
Holder for such purpose.

 

Capitalized terms used but
not defined herein have the meanings given to them in the Indenture.

 

[Signature Page Follows]

 

B-1

 

	
   

  	
  [NAME OF
  GUARANTOR(S)]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

B-2

 

EXHIBIT C

 

[FORM OF CERTIFICATE TO BE DELIVERED BY

TRANSFEREE IN CONNECTION WITH TRANSFERS

TO INSTITUTIONAL ACCREDITED INVESTORS]

 

[Date]

 

The Bank of New York, as Trustee

101 Barclay Street

Floor 8W

New York, New York 10286

Attention: 
[                        ]

 

Re:                               DRS Technologies, Inc.

 

Ladies and Gentlemen:

 

In connection with the
undersigned’s proposed purchase of
$                   
aggregate principal amount of 2.00% Convertible Senior Notes due 2026 (the
“Notes”) of DRS Technologies, Inc. (the “Company”) or
                       
shares of Common Stock of the Company issued upon conversion of the Notes, par
value $1.00 per share (the “Common Stock,” and together with the Notes, the
“Securities”), the undersigned confirms, represents and warrants that:

 

(1)                                  The undersigned is an institutional “accredited
investor” within the meaning of Rule 501(a)(1), (2), (3) or (7) under
the Securities Act of 1933, as amended (the “Securities Act”) (an
“Institutional Accredited Investor”).

 

(2)                                  (A) Any purchase of the Securities by the
undersigned will be for the undersigned’s own account or for the account of one
or more other Institutional Accredited Investors or as fiduciary for the
account of one or more trusts, each of which is an “accredited investor” within
the meaning of Rule 501(a)(7) under the Securities Act and for each
of which the undersigned exercises sole investment discretion or (B) the
undersigned is a “bank”, within the meaning of Section 3(a)(2) of the
Securities Act, or a “savings and loan association” or other institution
described in Section 3(a)(5)(A) of the Securities Act that is
acquiring the Securities as fiduciary for the account of one or more
institutions for which the undersigned exercises sole investment discretion.

 

(3)                                  The undersigned has such knowledge and experience
in financial and business matters that the undersigned is capable of evaluating
the merits and risks of its investment in the Securities, and the undersigned
and any accounts for which it is acting is each able to bear the economic risk
of its or their investment.

 

(4)                                  The undersigned has been given an opportunity to
ask questions and receive answers concerning the terms and conditions of the
Securities and to obtain any additional information which the Company possesses
or can acquire without reasonable effort or expense that is necessary to verify
the accuracy of the information furnished.

 

C-1

 

(5)                                  The undersigned is not acquiring the Securities
with a view to distribution thereof or with any present intention of offering
or selling any Securities, except as permitted below; provided that the disposition of the undersigned’s property
and the property of any accounts for which the undersigned is acting as
fiduciary will remain at all times within the undersigned’s control.

 

(6)                                  The undersigned understands that the Securities
have not been registered under the Securities Act or any applicable state securities
laws.

 

(7)                                  The undersigned agrees, on its own behalf and on
behalf of each account for which the undersigned acquires any Securities, that
if in the future the undersigned decides to resell or otherwise transfer such
Securities within two years after the original issuance of the Notes, such
Securities may be resold or otherwise transferred only:

 

(A)                              to the Company or any subsidiary thereof;

 

(B)                                with respect to Notes only, to a person which is a
“qualified institutional buyer” (as defined in Rule 144A under the
Securities Act) and otherwise 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);

 

(D)                               pursuant to an exemption from the registration
requirements under the Securities Act to a person whom the purchaser reasonably
believes is an Institutional Accredited Investor that prior to such transfer,
furnishes to you (and the Trustee or the Transfer Agent, as the case may be) a
signed letter substantially in the form of this letter, a transfer certificate
substantially in the form provided in the Indenture and an opinion of counsel;
or

 

(E)                                 pursuant to a registration statement which has been
declared effective under the Securities Act and continues to be effective at
the time of such transfer.

 

The undersigned further agrees to provide to
any person purchasing any of the Securities from the Company a written notice
advising such purchaser that resales of the Securities are restricted as stated
herein.

 

(8)                                  The undersigned understands that, on any proposed
resale of any Securities, the undersigned shall be required to furnish to the
Trustee or the Transfer Agent, as the case may be, and the Company such
certifications, legal opinions and other information as you and the Company may
reasonably require to confirm that the proposed sale complies with the
foregoing restrictions.  The undersigned
further understands that the Securities purchased by the undersigned will bear
a legend to the foregoing effect.

 

Each of the Company, the
Trustee or the Transfer Agent, as the case may be, and the initial purchaser of
the Securities is entitled to rely upon this letter and are irrevocably

 

C-2

 

authorized
to produce this letter or a copy hereof to any interested party in any
administrative or legal proceedings or official inquiry with respect to the
matters covered hereby.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
  Address:

  

 

C-3

 

EXHIBIT D

 

[FORM OF RESTRICTIVE LEGEND FOR

COMMON STOCK ISSUED UPON CONVERSION]  (5)

 

THE SECURITY EVIDENCED BY
THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT OF 1933”), OR ANY STATE SECURITIES LAWS, AND MAY NOT
BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE.  BY ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT (A) IT IS A “QUALIFIED
INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT OF 1933
OR (B) IT IS AN INSTITUTIONAL INVESTOR THAT IS AN “ACCREDITED INVESTOR” AS
DEFINED IN RULE 501(a)(1), (2), (3), OR (7) UNDER THE SECURITIES ACT OF
1933 (AN “INSTITUTIONAL ACCREDITED INVESTOR”); (2) AGREES
THAT IT SHALL NOT, WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THE SECURITY
UPON THE CONVERSION OF WHICH THE SHARES OF COMMON STOCK EVIDENCED HEREBY WERE
ISSUED, RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY EXCEPT (A) TO
DRS TECHNOLOGIES, INC. OR ANY SUBSIDIARY THEREOF, (B) PURSUANT TO THE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OF 1933
PROVIDED BY RULE 144 UNDER THE SECURITIES ACT OF 1933(IF AVAILABLE), (C) TO
THE EXTENT PERMITTED BY APPLICABLE LAW, TO A QUALIFIED INSTITUTIONAL BUYER AS
DEFINED IN, AND IN COMPLIANCE WITH, RULE 144A UNDER THE SECURITIES ACT OF 1933,
(D) PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT OF 1933 (IF AVAILABLE) TO AN INSTITUTIONAL ACCREDITED INVESTOR
THAT PRIOR TO SUCH TRANSFER, FURNISHES TO REGISTRAR AND TRANSFER COMPANY, AS
TRANSFER AGENT (OR ANY SUCCESSOR TRANSFER AGENT, AS APPLICABLE), CERTIFICATIONS
AND OPINION OF COUNSEL REQUIRED BY THE COMPANY OR TRANSFER AGENT OR (E) PURSUANT
TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE
SECURITIES ACT OF 1933 AND THAT CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH
TRANSFER; AND (3) AGREES THAT IT SHALL DELIVER
TO EACH PERSON TO WHOM THE SECURITY EVIDENCED HEREBY IS TRANSFERRED PURSUANT TO
CLAUSE 2(C) OR 2(D) ABOVE, A NOTICE SUBSTANTIALLY TO THE EFFECT OF
THIS LEGEND.

 

THE HOLDER OF THIS SECURITY IS ENTITLED TO
THE BENEFITS OF A REGISTRATION RIGHTS AGREEMENT (AS SUCH TERM IS DEFINED IN THE
INDENTURE, DATED AS OF JANUARY 31, 2006, BY AND AMONG DRS TECHNOLOGIES,
INC., THE GUARANTORS PARTY THERETO AND THE BANK OF NEW YORK, AS TRUSTEE), AND,
BY ITS ACCEPTANCE HEREOF, AGREES TO BE BOUND BY AND TO COMPLY WITH THE
PROVISIONS OF SUCH REGISTRATION RIGHTS AGREEMENT.

 

(5)                                  This
legend should be included only if the Security is a Transfer Restricted
Security for purposes of Rule 144A.

 

D-1

 

EXHIBIT E

 

FORM OF SUPPLEMENTAL INDENTURE

TO BE DELIVERED BY SUBSEQUENT GUARANTORS

 

SUPPLEMENTAL INDENTURE (this
“Supplemental Indenture”), dated as of              ,
200  , among
                    
(the “Guaranteeing Subsidiary”), a subsidiary of DRS Technologies, Inc.
(or its permitted successor), a Delaware corporation (the “Company”),
the Company, the other Guarantors (as defined in the Indenture referred to
herein) and The Bank of New York, as trustee under the Indenture referred to
below (the “Trustee”).

 

WITNESSETH

 

WHEREAS, the Company has
heretofore executed and delivered to the Trustee an Indenture, dated as of January 31,
2006 (the “Indenture”), providing for the issuance of 2.00% Convertible
Senior Notes due 2026 (the “Notes”);

 

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

 

WHEREAS, pursuant to Section 11.6
of the Indenture, the Trustee is authorized to execute and deliver this
Supplemental Indenture.

 

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

 

1.                                       Capitalized
Terms.  Capitalized terms used herein
without definition shall have the meanings assigned to them in the Indenture.

 

2.                                       Agreement to
Guarantee.  The
Guaranteeing Subsidiary hereby agrees to provide an unconditional Guarantee on
the terms and subject to the conditions set forth in the Subsidiary Guarantee
and in the Indenture including but not limited to Article XIII
thereof.

 

4.                                       No Recourse
Against Others.  No past,
present or future director, officer, employee, incorporator, stockholder or
agent of the Guaranteeing Subsidiary (other than the Company or a Guarantor in
its capacity as a stockholder of a Subsidiary), as such, shall have any
liability for any obligations of the Company or any Guaranteeing Subsidiary
under the Notes, any Subsidiary Guarantees, the Indenture or this Supplemental
Indenture or for any claim based on, in respect of or by reason of, such
obligations or their creation.  Each
Holder of the Notes by accepting a Note waives and releases all such
liability.  The waiver and release are
part of the consideration for issuance of the Notes.  Such waiver may not be effective to waive
liabilities under the federal securities laws and it is the view of the SEC
that such a waiver is against public policy.

 

E-1

 

5.                                       New York Law to
Govern.  THE INTERNAL LAW OF THE STATE
OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE
BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE
EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE
REQUIRED THEREBY.

 

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

 

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

 

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

 

E-2

 

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

 

	
   

  	
  Dated:               ,
  20  

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [GUARANTEEING
  SUBSIDIARY]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DRS
  TECHNOLOGIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  [EXISTING
  GUARANTORS]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF
  NEW YORK

  as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
						

 

E-3

 

SCHEDULE I

 

The following table sets
forth the Stock Prices and number of Additional Shares to be issuable per
$1,000 principal amount of Securities:

 

	
  Effective
  Date of

  Fundamental Change

  	
   

  	
  Stock Price

  	
   

  
	
   

  	
  $49.75

  	
   

  	
  $55.00

  	
   

  	
  $60.00

  	
   

  	
  $65.00

  	
   

  	
  $70.00

  	
   

  	
  $80.00

  	
   

  	
  $90.00

  	
   

  	
  $100.00

  	
   

  	
  $110.00

  	
   

  	
  $120.00

  	
   

  	
  $135.00

  	
   

  	
  $150.00

  	
   

  
	
  January 30, 2006

  	
   

  	
  3.350

  	
   

  	
  2.571

  	
   

  	
  2.043

  	
   

  	
  1.660

  	
   

  	
  1.378

  	
   

  	
  1.010

  	
   

  	
  0.787

  	
   

  	
  0.645

  	
   

  	
  0.545

  	
   

  	
  0.470

  	
   

  	
  0.388

  	
   

  	
  0.326

  	
   

  
	
  February 1, 2007

  	
   

  	
  3.314

  	
   

  	
  2.468

  	
   

  	
  1.906

  	
   

  	
  1.511

  	
   

  	
  1.230

  	
   

  	
  0.877

  	
   

  	
  0.680

  	
   

  	
  0.560

  	
   

  	
  0.479

  	
   

  	
  0.420

  	
   

  	
  0.353

  	
   

  	
  0.304

  	
   

  
	
  February 1, 2008

  	
   

  	
  3.260

  	
   

  	
  2.328

  	
   

  	
  1.725

  	
   

  	
  1.313

  	
   

  	
  1.031

  	
   

  	
  0.710

  	
   

  	
  0.551

  	
   

  	
  0.463

  	
   

  	
  0.406

  	
   

  	
  0.363

  	
   

  	
  0.314

  	
   

  	
  0.276

  	
   

  
	
  February 1, 2009

  	
   

  	
  3.153

  	
   

  	
  2.115

  	
   

  	
  1.464

  	
   

  	
  1.035

  	
   

  	
  0.764

  	
   

  	
  0.484

  	
   

  	
  0.415

  	
   

  	
  0.373

  	
   

  	
  0.339

  	
   

  	
  0.311

  	
   

  	
  0.277

  	
   

  	
  0.249

  	
   

  
	
  February 1, 2010

  	
   

  	
  3.096

  	
   

  	
  1.849

  	
   

  	
  1.113

  	
   

  	
  0.674

  	
   

  	
  0.436

  	
   

  	
  0.244

  	
   

  	
  0.209

  	
   

  	
  0.188

  	
   

  	
  0.171

  	
   

  	
  0.157

  	
   

  	
  0.140

  	
   

  	
  0.126

  	
   

  
	
  February 1, 2011

  	
   

  	
  3.350

  	
   

  	
  1.431

  	
   

  	
  0.000

  	
   

  	
  0.000

  	
   

  	
  0.000

  	
   

  	
  0.000

  	
   

  	
  0.000

  	
   

  	
  0.000

  	
   

  	
  0.000

  	
   

  	
  0.000

  	
   

  	
  0.000

  	
   

  	
  0.000

  	
   

  

 

S-1

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