Document:

Exhibit

10.20

 

ZEBRA TECHNOLOGIES

CORPORATION

2002 NON-EMPLOYEE

DIRECTOR STOCK OPTION PLAN

NON-QUALIFIED STOCK

OPTION AGREEMENT

 

THIS NON-QUALIFIED STOCK OPTION AGREEMENT (this

“Option Agreement”), dated as of

                      

(the “Grant Date”), is between Zebra Technologies Corporation, a Delaware

corporation (the “Company”), and

                                ,

(the “Participant”) relating to an option granted under the  Zebra Technologies

Corporation 2002 Non-Employee Director Stock Option Plan (the “Plan”).  Capitalized terms used in this Option

Agreement without definition shall have the meanings ascribed to such terms in

the Plan.

 

Grant of Option, Option Price and

Term.

Grant.  The Company grants to

the Participant a Non-Qualified Stock Option (the “Option”) to purchase 20,000

shares (the “Option Shares”) of the Company’s Class A Common Stock, $0.01 par

value per share (“Stock”), at a price of

$            per share

(the “Option Price”), subject to the provisions of the Plan and the terms and

conditions herein.

 

Standard Vesting.  Prior to the

Expiration Date (as hereinafter defined), the Option shall become and be

exercisable as follows:  20% of the

number of Option Shares shall vest on the first annual anniversary of the Grant

Date (the “Initial Vesting Date”), provided that the Participant continues to

serve as a Director through such Initial Vesting Date.  Thereafter, the Option shall vest with

respect to additional Option Shares, at a rate of 20% of the original number of

Option Shares, with such additional vesting occurring on each successive annual

anniversary of the Initial Vesting Date, provided that the Participant

continues to serve as a Director through the applicable additional vesting

dates.  The Option is not exercisable

at any time with respect to unvested shares, and upon Participant ceasing to be

a Director no further Option Shares shall become vested.

 

Change in Control Vesting.  In

lieu of the standard vesting schedule in Section 1(b) above, if a Change in

Control occurs 100% of the remaining unvested Option Shares shall be vested

immediately before the Change in Control occurs.

 

Nontransferable.  The Option granted

hereunder shall be non-transferable, except by will or the laws of descent and

distribution or pursuant to a qualified domestic relations order as defined in

the Code or to a Family Member of Participant as permitted by the Plan.

 

No fractions.  The Company shall

not be required to issue any fractional shares of Stock.

 

Expiration.  The “Expiration

Date” shall be the earliest to occur of:

 

the ten (10) year anniversary

of the Grant Date;

the one (1) year anniversary of

the day the Participant ceases to be a Director; or

the day a Participant is

removed by the stockholders for cause or resigns as a Director for Cause.

 

Notwithstanding the foregoing,

if Participant dies or becomes legally incapacitated and fewer than ninety (90)

days remain prior to the Expiration Date pursuant to clauses (i) or (ii) above,

then the Expiration Date shall not terminate prior to the ninetieth (90th) day

following the date of appointment of a Representative. “Cause” means conduct by

the Participant that involves theft or fraud with respect to the Company or as

is otherwise determined in accordance with the Delaware General Corporation

Law.  “Representative” means (1) the

person or entity acting as the executor or administrator of a Participant’s

estate pursuant to the last will and testament of a Participant or pursuant to

the laws of the jurisdiction in which the Participant had his or her primary

residence at the date of the Participant’s death; (2) the person or entity

acting as the guardian or temporary guardian of a Participant; (3) the

person or entity which is the beneficiary of the Participant upon or following

the Participant’s death; or (4) any person to whom a Stock Option has been

transferred with the permission of the Committee or by operation of law;

provided that only one of the foregoing shall be the Representative at any

point in time as determined under applicable law and recognized by the

Committee.

 

Exercise.

The Option may only be exercised to the extent the

Option is exercisable and by the delivery to the Company of a properly

completed written notice, in form satisfactory to the Committee, which notice

shall specify the number of Option Shares to be purchased and the aggregate

Option Price for such shares, together with payment in full of such aggregate

Option Price.  Payment shall only be

made as specified in the Plan.  If any

part of the payment of the Option

 

 

Price is made in shares of Stock, such shares shall be

valued by using their Fair Market Value as of the date of exercise of the

Option.

 

The Participant may not exercise the Option if the

Company’s issuance of Stock upon such exercise would violate any applicable federal

or state securities laws or other laws or regulations.  The Participant may not sell or otherwise

dispose of the Option Shares in violation of applicable law.  The Company may postpone issuing and

delivering any Option Shares for so long as the Company reasonably determines

to be necessary to satisfy the following: 

(i) its completing or amending any securities registration or

qualification of the Option Shares or its or the Participant satisfying any

exemption from registration under any Federal or state law, rule, or

regulation; (ii) its receiving proof it considers satisfactory that a person

seeking to exercise the Option after the Participant’s death is entitled to do

so; (iii) the Participant complying with any requests for representations under

the Plan; and (iv) the Participant complying with any federal, state, or local

tax withholding obligations.

 

Payment of Taxes.

If the Company is obligated to withhold an amount on

account of any tax imposed as a result of the exercise of the Option, the Participant

shall be required to pay such amount to the Company, as provided in the

Plan.  The Participant acknowledges and

agrees that the Participant is responsible for the tax consequences associated

with the grant of the Option and its exercise.

 

Changes in Company’s Capital

Structure.

The existence of the Option will not affect in any way

the right or authority of the Company or its stockholders to make or authorize

(a) any adjustment, recapitalization, reorganization or other changes in the

Company’s capital structure or its business; (b) any merger or consolidation of

the Company; (c) any issuance of bonds, debentures, preferred or prior

preference stock ahead of or affecting the Stock or the rights thereof; (d) the

dissolution or liquidation of the Company; (e) any sale or transfer of all or

any part of the Company’s assets or business; or (f) any other corporate

act or proceeding, whether of a similar character or otherwise.  In the event of a Change in Control or other

corporate transaction provided for in the Plan, the Participant shall have such

rights, and the Committee shall take such actions, as are provided for in the

Plan.

 

Plan.

The Option is granted pursuant to the Plan, and the

Option and this Option Agreement are in all respects governed by the Plan and

subject to all of the terms and provisions thereof, whether such terms and

provisions are incorporated in this Option Agreement by reference or are

expressly cited.  Capitalized terms used

but not defined herein shall have the meanings ascribed to such terms in the

Plan.

 

No Service or Employment Rights.

No provision of this Option Agreement or of the Option

granted hereunder shall give the Participant any right to continue in the

service or employ of the Company or any Affiliate of the Company, create any

inference as to the length of employment or service of the Participant, affect

the right of the Company or any Affiliate of the Company to terminate the

employment or service of the Participant, with or without cause, or give the

Participant any right to participate in any employee welfare or benefit plan or

other program (other than the Plan) of the Company or any Affiliate of the

Company.

 

Governing Law.

This Option Agreement and the Option granted hereunder

shall be governed by, and construed and enforced in accordance with, the laws

of the State of Delaware, without giving effect to provisions thereof regarding

conflict of laws.

 

Waiver; Cumulative Rights.

The failure or delay of either party to require

performance by the other party of any provision hereof shall not affect its

right to require performance of such provision unless and until such

performance has been waived in writing. 

Each and every right hereunder is cumulative and may be exercised in

part or in whole from time to time.

 

Notices.

Any notice which either party hereto may be required

or permitted to give the other shall be in writing and may be delivered

personally or by mail, postage prepaid, addressed to the Secretary of the

Company, at its then corporate headquarters, and the Participant at the

Participant’s address as shown on the Company’s records, or to such other

address as the Participant, by notice to the Company, may designate in writing

from time to time.

 

[signature page follows]

 

2

 

IN

WITNESS WHEREOF,

the Company has caused this Option Agreement to be duly executed by an officer

thereunto duly authorized, and the Participant has hereunto set his or her

hand, all as of the day and year first above written.

 

	

  ZEBRA TECHNOLOGIES CORPORATION

  	

  Participant

  
	

   

  	

   

  
	

  By:

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  
	

  Name:

  	

   

  	

   

  	

   

  
	

   

  	

   

  
	

  Title:

  	

   

  	

   

  	

   

  
									

 

3Exhibit 4.1

 

LABOR READY, INC.

 

6.25% Convertible Subordinated Notes due 2007

 

 

INDENTURE

 

Dated as of June 19, 2002

 

 

The Bank of New York

 

TRUSTEE

 

 

 

TABLE OF CONTENTS

 

	

  ARTICLE I  DEFINITIONS

  AND INCORPORATION BY REFERENCE

  
	

   

  
	

   

  	

  Section 1.1

  	

  Definitions

  
	

   

  	

  Section 1.2

  	

  Other Definitions

  
	

   

  	

  Section

  1.3

  	

  Incorporation

  by Reference of Trust Indenture Act

  
	

   

  	

  Section 1.4

  	

  Rules of

  Construction

  
	

   

  	

  Section 1.5

  	

  Acts of Holders

  
	

   

  
	

  ARTICLE II  THE SECURITIES

  
	

   

  
	

   

  	

  Section 2.1

  	

  Form and Dating

  
	

   

  	

  Section 2.2

  	

  Execution

  and Authentication

  
	

   

  	

  Section 2.3 

  	

  Registrar, Paying Agent and

  Conversion Agent

  
	

   

  	

  Section 2.4 

  	

  Paying Agent to Hold Money

  and Securities in Trust

  
	

   

  	

  Section 2.5

  	

  Securityholder

  Lists.

  
	

   

  	

  Section 2.6

  	

  Transfer and

  Exchange.

  
	

   

  	

  Section 2.7

  	

  Replacement

  Securities

  
	

   

  	

  Section 2.8

  	

  Outstanding

  Securities; Determinations of Holders’ Action

  
	

   

  	

  Section 2.9

  	

  Temporary Securities

  
	

   

  	

  Section 2.10

  	

  Cancellation

  
	

   

  	

  Section 2.11

  	

  Persons Deemed

  Owners

  
	

   

  	

  Section 2.12

  	

  Global Securities

  
	

   

  	

  Section 2.13

  	

  CUSIP Numbers

  
	

   

  
	

  ARTICLE III  REDEMPTION

  AND PURCHASES

  
	

   

  
	

   

  	

  Section 3.1

  	

  Company’s Right

  to Redeem; Notices to Trustee

  
	

   

  	

  Section 3.2

  	

  Selection of

  Securities to Be Redeemed

  
	

   

  	

  Section

  3.3

  	

  Notice

  of Redemption

  
	

   

  	

  Section

  3.4

  	

  Effect of Notice of

  Redemption.

  
	

   

  	

  Section 3.5

  	

  Deposit of

  Redemption Price.

  
	

   

  	

  Section 3.6

  	

  Securities Redeemed

  in Part

  
	

   

  	

  Section 3.7

  	

  Purchase of

  Securities at Option of the Holder upon Change of Control

  
	

   

  	

  Section 3.8

  	

  Effect of Change of

  Control Purchase Notice; Withdrawal.

  
	

   

  	

  Section 3.9

  	

  Deposit of Change of

  Control Purchase Price

  
	

   

  	

  Section 3.10

  	

  Securities Purchased

  in Part

  
	

   

  	

  Section 3.11

  	

  Covenant to Comply

  With Securities Laws Upon Purchase of Securities

  
	

   

  	

  Section 3.12

  	

  Repayment to the Company

  
	

   

  	

   

  	

   

  	

   

  
	

  ARTICLE IV  COVENANTS

  
	

   

  
	

   

  	

  Section 4.1

  	

  Payment of Securities

  
	

   

  	

  Section 4.2

  	

  SEC and Other Reports

  
	

   

  	

  Section 4.3

  	

  Compliance Certificate

  

 

i

 

	

   

  	

  Section 4.4

  	

  Further Instruments and Acts

  
	

   

  	

  Section 4.5

  	

  Maintenance of Office or

  Agency

  
	

   

  	

  Section 4.6

  	

  Delivery of Certain

  Information

  
	

   

  
	

  ARTICLE V  SUBORDINATION

  
	

   

  
	

   

  	

  Section 5.1

  	

  Agreement of Subordination

  
	

   

  	

  Section 5.2

  	

  Payments To Holders

  
	

   

  	

  Section 5.3

  	

  Subrogation Of Securities

  
	

   

  	

  Section 5.4

  	

  Authorization To Effect

  Subordination

  
	

   

  	

  Section

  5.5

  	

  Notice

  To Trustee

  
	

   

  	

  Section 5.6

  	

  Trustee’s Relation To Senior

  Debt

  
	

   

  	

  Section 5.7

  	

  No Impairment Of

  Subordination

  
	

   

  	

  Section 5.8

  	

  Certain Conversions

  Deemed Payment

  
	

   

  	

  Section 5.9

  	

  Article Applicable To

  Paying Agents

  
	

   

  	

  Section 5.10

  	

  Senior Debt Entitled To Rely

  
	

   

  
	

  ARTICLE VI  SUCCESSOR

  CORPORATION

  
	

   

  
	

   

  	

  Section 6.1

  	

  When Company May Merge or

  Transfer Assets

  
	

   

  	

   

  	

   

  	

   

  
	

  ARTICLE VII  DEFAULTS

  AND REMEDIES

  
	

   

  
	

   

  	

  Section 7.1

  	

  Events of Default

  
	

   

  	

  Section 7.2

  	

  Acceleration

  
	

   

  	

  Section

  7.3

  	

  Other

  Remedies

  
	

   

  	

  Section

  7.4

  	

  Waiver

  of Past Defaults

  
	

   

  	

  Section 7.5

  	

  Control by Majority

  
	

   

  	

  Section 7.6 

  	

  Limitation on Suits

  
	

   

  	

  Section 7.7

  	

  Rights of Holders to

  Receive Payment

  
	

   

  	

  Section 7.8

  	

  Collection Suit by

  Trustee

  
	

   

  	

  Section 7.9

  	

  Trustee May File Proofs of

  Claim

  
	

   

  	

  Section 7.10

  	

  Priorities

  
	

   

  	

  Section 7.11

  	

  Undertaking for Costs

  
	

   

  	

  Section 7.12

  	

  Waiver of Stay, Extension or Usury

  Laws

  
	

   

  	

   

  	

   

  	

   

  
	

  ARTICLE VIII  TRUSTEE

  
	

   

  
	

   

  	

  Section

  8.1

  	

  Duties

  of Trustee

  
	

   

  	

  Section

  8.2

  	

  Rights

  of Trustee

  
	

   

  	

  Section 8.3

  	

  Individual Rights of Trustee

  
	

   

  	

  Section 8.4

  	

  Trustee’s Disclaimer

  
	

   

  	

  Section

  8.5

  	

  Notice

  of Defaults

  
	

   

  	

  Section 8.6

  	

  Reports by Trustee to Holders

  
	

   

  	

  Section 8.7

  	

  Compensation

  and Indemnity

  
	

   

  	

  Section 8.8

  	

  Replacement of

  Trustee

  
	

   

  	

  Section 8.9

  	

  Successor

  Trustee by Merger

  
	

   

  	

  Section

  8.10

  	

  Eligibility;

  Disqualification

  
	

   

  	

  Section

  8.11

  	

  Preferential

  Collection of Claims Against Company

  

 

ii

 

 

	

  ARTICLE IX  DISCHARGE

  OF INDENTURE

  
	

   

  
	

   

  	

  Section

  9.1

  	

  Discharge

  of Liability on Securities

  
	

   

  	

  Section 9.2

  	

  Repayment to

  the Company

  
	

   

  	

   

  	

   

  	

   

  
	

  ARTICLE X  AMENDMENTS

  
	

   

  
	

   

  	

  Section 10.1

  	

  Without

  Consent of Holders

  
	

   

  	

  Section 10.2

  	

  With Consent of

  Holders

  
	

   

  	

  Section

  10.3 

  	

  Compliance

  with Trust Indenture Act

  
	

   

  	

  Section

  10.4

  	

  Revocation

  and Effect of Consents, Waivers and Actions

  
	

   

  	

  Section

  10.5 

  	

  Notation

  on or Exchange of Securities

  
	

   

  	

  Section

  10.6

  	

  Trustee

  to Sign Supplemental Indentures

  
	

   

  	

  Section

  10.7

  	

  Effect

  of Supplemental Indentures

  
	

   

  
	

  ARTICLE XI  CONVERSIONS

  
	

   

  
	

   

  	

  Section 11.1

  	

  Conversion Privilege

  
	

   

  	

  Section

  11.2

  	

  Conversion

  Procedure; Conversion Price; Fractional Shares.

  
	

   

  	

  Section

  11.3

  	

  Adjustment

  of Conversion Price.

  
	

   

  	

  Section

  11.4

  	

  Consolidation

  or Merger of the Company.

  
	

   

  	

  Section 11.5

  	

  Notice of

  Adjustment.

  
	

   

  	

  Section 11.6

  	

  Notice in

  Certain Events.

  
	

   

  	

  Section

  11.7

  	

  Company

  To Reserve Stock: Registration; Listing.

  
	

   

  	

  Section 11.8

  	

  Taxes on

  Conversion.

  
	

   

  	

  Section

  11.9

  	

  Conversion

  After Record Date.

  
	

   

  	

  Section

  11.10

  	

  Company

  Determination Final.

  
	

   

  	

  Section

  11.11

  	

  Responsibility

  of Trustee for Conversion Provisions.

  
	

   

  	

  Section

  11.12

  	

  Unconditional

  Right of Holders to Convert.

  
	

   

  
	

  ARTICLE XII  MISCELLANEOUS

  
	

   

  
	

   

  	

  Section

  12.1

  	

  Trust

  Indenture Act Controls

  
	

   

  	

  Section 12.2

  	

  Notices

  
	

   

  	

  Section

  12.3

  	

  Communication

  by Holders with Other Holders

  
	

   

  	

  Section

  12.4

  	

  Certificate

  and Opinion as to Conditions Precedent

  
	

   

  	

  Section

  12.5

  	

  Statements

  Required in Certificate or Opinion

  
	

   

  	

  Section 12.6

  	

  Separability Clause

  
	

   

  	

  Section

  12.7

  	

  Rules

  by Trustee, Paying Agent, Conversion Agent and  Registrar

  
	

   

  	

  Section 12.8

  	

  Legal Holidays

  
	

   

  	

  Section 12.9

  	

  GOVERNING LAW

  
	

   

  	

  Section

  12.10

  	

  No Recourse

  Against Others

  
	

   

  	

  Section 12.11

  	

  Successors

  
	

   

  	

  Section 12.12

  	

  Multiple Originals

  

 

iii

 

	

   

  	

  EXHIBIT A

  	

  Form of Global Security

  
	

   

  	

   

  	

   

  
	

   

  	

  EXHIBIT B

  	

  Form of Certificated Security

  
	

   

  	

   

  	

   

  
	

   

  	

  EXHIBIT C

  	

  Transfer Certificate

  
	

   

  	

   

  	

   

  

 

iv

 

INDENTURE dated as of June 19, 2002 between

LABOR READY, INC., a Delaware corporation (“Company”), and THE BANK OF NEW

YORK, a New York banking corporation (“Trustee”).

 

Each party agrees as follows for the benefit

of the other party and for the equal and ratable benefit of the Holders of the

Company’s 6.25% Convertible Subordinated Notes due 2007:

 

ARTICLE I

 

DEFINITIONS AND INCORPORATION BY REFERENCE

 

Section

1.1   Definitions.

 

“144A Global Security” means a permanent

Global Security in the form of the Security attached hereto as Exhibit A, and

that is deposited with and registered in the name of the Depositary,

representing Securities sold in reliance on Rule 144A under the Securities Act.

 

“Additional Amounts” shall have the meaning

ascribed to it in the Registration Rights Agreement.

 

“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.

 

“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.

 

“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.

 

“Business Day” means, with respect to any

Security, a day that in the City of New York, is not a day on which banking

institutions are authorized by law or regulation to close.

 

“Capital Stock” for any corporation means any

and all shares, interests, rights to purchase, warrants, options,

participations or other equivalents of or interests in (however designated)

stock issued by that corporation.

 

 

“Certificated Securities” means Securities

that are in the form of the Securities attached hereto as Exhibit B.

 

“Common Stock” shall mean the Common Stock,

$0.01 par value per share, of the Company existing on the date of this Indenture

or any other shares of Capital Stock of the Company into which such Common

Stock shall be reclassified or changed.

 

“Company” means the party named as the

“Company” in the first Section 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.

 

“Company Request” or “Company Order” means a

written request or order signed in the name of the Company by any two Officers.

 

“Conversion Price” means initially $7.26,

subject to adjustment as set forth herein.

 

“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 101 Barclay Street,

New York, New York 10286, Attention: 

Corporate Trust Trustee Administration, or such other address as the

Trustee may designate from time to time by notice to the Holders and the

Company, or the principal corporate trust office of any successor Trustee (or

such other address as a successor Trustee may designate from time to time by

notice to the Holders and the Company).

 

“Default” means an event which, with the

giving of notice or the lapse of time, or both, would become an Event of

Default.

 

“Designated Senior Debt” shall mean any and

all Indebtedness arising under (i) the Company’s Credit Agreement dated as of

January 4, 2002 between the Company and Wells Fargo Bank, National Association,

(ii) the Company’s Letter of Credit Agreement dated as of March 1, 2001, as

amended, between the Company and General Electric Capital Corporation, and

(iii) the Company’s Senior Debt which, at the date of determination, has an

aggregate amount outstanding of, or under which, at the date of determination,

the holders thereof are committed to lend up to, at least $15 million and is

specifically designated in the instrument evidencing or governing that Senior

Debt as “Designated Senior Debt” for purposes of this Indenture.  However, the instrument may place

limitations and conditions on the right of that Senior Debt to exercise the

rights of Designated Senior Debt.

 

“Ex-Dividend Time” means, with respect to any

issuance or distribution on shares of Common Stock, the first date on which the

shares of Common Stock trade regular way on the principal securities market on

which the shares of Common Stock are then traded without the right to receive

such issuance or distribution.

 

“Global Securities” means Securities that are

in the form of the Securities attached hereto as Exhibit A, and that are

registered in the register of Securities in the name of a 

 

2

 

Depositary or a nominee thereof, and to the

extent that such Securities are required to bear the Legend required by

Section 2.6, such Securities will be in the form of a 144A Global

Security.

 

“Holder” or “Securityholder” means a Person

in whose name a Security is registered on the Registrar’s books.

 

“Indebtedness” means:

 

(i)            all

indebtedness, obligations and other liabilities (contingent or otherwise) of

that Person for borrowed money (including obligations in respect of overdrafts,

and any loans or advances from banks, whether or not evidenced by notes or

similar instruments) or evidenced by bonds, notes, notes or other instruments

for the payment of money, or incurred in connection with the acquisition of any

property, services or assets (whether or not the recourse of the lender is to

the whole of the assets of such Person or to only a portion thereof), other

than any accounts payable or other accrued current liability or obligation to

trade creditors incurred in the ordinary course of business in connection with

the obtaining of materials or services;

 

(ii)           all

reimbursement obligations and other liabilities (contingent or otherwise) of

that Person with respect to letters of credit, bank guarantees, bankers’

acceptances, surety bonds, performance bonds or other guaranty of contractual

performance;

 

(iii)          all

obligations and liabilities (contingent or otherwise) in respect of

(A) leases of such Person required, in conformity with generally accepted

accounting principles, to be accounted for as capitalized lease obligations on

the balance sheet of such Person, and (B) any leases or related documents

(including a purchase agreement) in connection with the lease of real property

which provides that such Person is contractually obligated to purchase or cause

a third party to purchase the leased property and thereby guarantee a minimum

residual value of the leased property to the landlord and the obligations of

such Person under such lease or related document to purchase or to cause a

third party to purchase the leased property;

 

(iv)          all

obligations of such Person (contingent or otherwise) with respect to an

interest rate or other swap, cap or collar agreement or other similar

instrument or agreement or foreign currency hedge, exchange, purchase or

similar instrument or agreement;

 

(v)           all

direct or indirect guaranties or similar agreements by that Person in respect

of, and obligations or liabilities (contingent or otherwise) of that Person to

purchase or otherwise acquire or otherwise assure a creditor against loss in

respect of, indebtedness, obligations or liabilities of another Person of the

kind described in clauses (i) through (iv) above;

 

(vi)          any

indebtedness or other obligations described in clauses (i) through (iv)

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

 

(vii)         any

and all deferrals, renewals, extensions and refundings of, or amendments,

modifications or supplements to, any indebtedness, obligation or liability of

the kind described in clauses (i) through (vi) above.

 

3

 

“Indenture” means this Indenture, as amended

or supplemented from time to time in accordance with the terms hereof,

including the provisions of the TIA that are deemed to be a part hereof.

 

“Issue Date” of any Security means the date

on which the Security was originally issued or deemed issued as set forth on

the face of the Security.

 

“NYSE” means The New York Stock Exchange,

Inc..

 

“Officer” means the Chairman of the Board,

the Vice Chairman, the Chief Executive Officer, the President, any Executive

Vice President, any Senior Vice President, the Treasurer, the Controller, or

the Secretary or any Assistant Treasurer or Assistant Secretary of the Company.

 

“Officers’ Certificate” means a written

certificate containing the information specified in Sections 12.4 and 12.5,

signed in the name of the Company by any two Officers, and delivered to the

Trustee. An Officers’ Certificate given pursuant to Section 4.3 or Section

5.5 shall be signed by the principal 

executive Officer, principal financial Officer or principal accounting

Officer of the Company but need not contain the information specified in

Sections 12.4 and 12.5.

 

“Opinion of Counsel” means a written opinion

containing the information specified in Sections 12.4 and 12.5, from legal

counsel who is reasonably acceptable to the Trustee. The counsel may be an

employee of, or counsel to, the Company or the Trustee.

 

“Person” means any individual, corporation,

limited liability company, partnership, joint venture, association, joint–stock

company, trust, unincorporated organization, or government or any agency or

political subdivision thereof.

 

“Redemption Date” or “redemption date” shall

mean the date specified in a notice of redemption on which the Securities may

be redeemed in accordance with the terms of the Securities and this Indenture.

 

“Redemption Price” or “redemption price” shall

have the meaning set forth in Section 5 of the Securities.

 

“Registration Rights Agreement” means the

Resale Registration Rights Agreement, dated as of the date hereof, among the

Company, Lehman Brothers Inc., Wells Fargo Securities, LLC and Gerard Klauer

Mattison, Inc.

 

“Representative” shall mean, with respect to

any Designated Senior Debt, a trustee or other authorized representative under

any agreement or other instrument pursuant to which such Designated Senior Debt

was issued.

 

“Responsible Officer” shall mean, when used

with respect to the Trustee, any officer within the corporate trust department

of the Trustee, including any vice president, assistant vice president,

assistant treasurer, trust officer or any other officer of the Trustee who

customarily performs functions similar to those performed by the persons who at

the time shall

 

4

 

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 Security” means a Security

required to bear the restrictive legend set forth in the form of Security set

forth in Exhibits A and B of this Indenture.

 

“Rule 144A” means Rule 144A under the

Securities Act (or any successor provision), as it may be amended from time to

time.

 

“Sale Price” of a security on any date of

determination means:

 

(i)            the closing sale price (or, if no closing sale price is

reported, the last reported sale price) of such security (regular way) on the

New York Stock Exchange on such date;

 

(ii)           if such security is not listed for trading on the New York

Stock Exchange on any such date, the closing sale price as reported in the

composite transactions for the principal U.S. securities exchange on which such

security is so listed;

 

(iii)          if such security is not listed on a U.S. national or

regional securities exchange, the closing sales price as reported by the Nasdaq

National Market;

 

(iv)          if such security is not so reported, the last price quoted

by Interactive Data Corporation for such security on such date or, if

Interactive Data Corporation is not quoting such price, a similar quotation

service selected by the Company;

 

(v)           if such security is not so quoted, the average of the

mid-point of the last bid and ask prices for such security on such date from at

least two dealers recognized as market-makers for such security selected by the

Company for this purpose; or

 

(vi)          if such security is not so quoted, the average of that last

bid and ask prices for such security on such date from a dealer engaged in the

trading of convertible securities selected by the Company for this purpose.

 

“SEC” means the Securities and Exchange

Commission.

 

“Securities” means any of the Company’s 6.25%

Convertible Subordinated Notes due 2007, as amended or supplemented from time

to time, issued under this Indenture.

 

“Securityholder” or “Holder” means a Person

in whose name a Security is registered on the Registrar’s books.

 

5

 

“Senior Debt” means:

 

(i)            the principal of, premium, if any,

interest (including all interest and additional amounts, if any, accruing

subsequent to the commencement of any bankruptcy or similar proceeding, whether

or not a claim for post–petition interest is allowable as a claim in any

such proceeding), and rent payable on or termination payments with respect to

or in connection with, and all fees, costs, expenses and other amounts accrued

or due on or in connection with, Indebtedness of the Company, whether

outstanding on the date of this Indenture or subsequently created, incurred,

assumed, guaranteed or in effect guaranteed by the Company; and

 

(ii)           all deferrals, renewals, extensions

or refundings of, or amendments, modifications or supplements to, the

foregoing;

 

unless in the case of any particular

Indebtedness, the instrument creating or evidencing such Indebtedness or the

assumption or guarantee thereof expressly provides that the Indebtedness shall

not be senior in right of payment to the Securities or expressly provides that

such Indebtedness is equal with or junior to the Securities.  However, the term “Senior Debt” shall not

include: (i) the Indebtedness owed by the Company to any Subsidiary, (ii) any

liability for federal, state, local or other taxes owed or owing by the

Company, (iii) any trade payables and (iv) the Securities.

 

“Significant Subsidiary” shall have the

meaning ascribed to such term in Rule 405 of the Securities Act.

 

“Stated Maturity”, when used with respect to

any Security, means June 15, 2007.

 

“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.

 

“TIA” means the Trust Indenture Act of 1939

as in effect on the 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.

 

“Trading Day” means a day during which

trading in securities generally occurs on the NYSE or, if the Common Stock is

not listed on the NYSE, on the principal other national or regional securities

exchange on which the Common Stock then is listed or, if the Common Stock is

not listed on a national or regional securities exchange, on the National

Association of Securities Dealers Automated Quotation System or, if the Common

Stock is not quoted on the National Association of Securities Dealers Automated

Quotation System, on the principal other market on which the Common Stock is

then traded or quoted.

 

“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.

 

6

 

“Voting Stock” of a Person means Capital

Stock of such Person of the class or classes pursuant to which the holders

thereof have the general voting power under ordinary circumstances to elect at

least a majority of the board of directors, managers or trustees of such Person

(irrespective of whether or not at the time Capital Stock of any other class or

classes shall have or might have voting power by reason of the happening of any

contingency).

 

Section 1.2   Other Definitions

 

	

  Term:

  	

   

  	

  Section

  defined in:

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  “Act”

  	

   

  	

  1.5

  	

   

  
	

  “Agent Members”

  	

   

  	

  2.12(e)

  	

   

  
	

  “beneficial owner”

  	

   

  	

  3.7(a)

  	

   

  
	

  “Change of Control”

  	

   

  	

  3.7(a)

  	

   

  
	

  “Change of Control Purchase Date”

  	

   

  	

  3.7(a)

  	

   

  
	

  “Change of Control Purchase Notice”

  	

   

  	

  3.7(c)

  	

   

  
	

  “Change of Control Purchase Price”

  	

   

  	

  3.7(a)

  	

   

  
	

  “Continuing Director”

  	

   

  	

  3.7(a)

  	

   

  
	

  “Conversion Agent”

  	

   

  	

  2.3

  	

   

  
	

  “Current Market Price”

  	

   

  	

  11.3(g)

  	

   

  
	

  “Depositary”

  	

   

  	

  2.1(a)

  	

   

  
	

  “DTC”

  	

   

  	

  2.1(a)

  	

   

  
	

  “Event of Default”

  	

   

  	

  7.1

  	

   

  
	

  “Excess Amount”

  	

   

  	

  11.3(f)

  	

   

  
	

  “Exchange Act”

  	

   

  	

  2.12(e)

  	

   

  
	

  “Expiration Time”

  	

   

  	

  11.3(f)

  	

   

  
	

  “Fair Market Value”

  	

   

  	

  11.3(g)

  	

   

  
	

  “issuer tender offer”

  	

   

  	

  3.11

  	

   

  
	

  “junior securities”

  	

   

  	

  5.8

  	

   

  
	

  “Legal Holiday”

  	

   

  	

  12.8

  	

   

  
	

  “Legend”

  	

   

  	

  2.6(f)

  	

   

  
	

  “Non-Electing Share”

  	

   

  	

  11.4

  	

   

  
	

  “Paying Agent”

  	

   

  	

  2.3

  	

   

  
	

  “Payment Blockage Notice”

  	

   

  	

  5.2

  	

   

  
	

  “QIB”

  	

   

  	

  2.1(a)

  	

   

  
	

  “Record Date”

  	

   

  	

  11.3(g)

  	

   

  
	

  “Reference Period”

  	

   

  	

  11.3(d)

  	

   

  
	

  “Registrar”

  	

   

  	

  2.3

  	

   

  
	

  “Rule 144A Information”

  	

   

  	

  4.6

  	

   

  
	

  “Securities Act”

  	

   

  	

  2.6(f)

  	

   

  
	

  “Spin-Off”

  	

   

  	

  11.3(d)

  	

   

  
	

  “transfer”

  	

   

  	

  2.12(d)

  	

   

  
	

  “Trigger Event”

  	

   

  	

  11.3(d)

  	

   

  

 

Section 1.3   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

 

7

 

a part of this Indenture. The following TIA terms used

in this Indenture have the following meanings:

 

“Commission” means the SEC.

 

“indenture securities” means the Securities.

 

“indenture security holder” means a

Securityholder.

 

“indenture to be qualified” means this

Indenture.

 

“indenture trustee” or “institutional

trustee” means the Trustee.

 

“obligor” on the indenture securities means

the Company.

 

All other TIA terms used in this Indenture

that are defined by the TIA, defined by TIA reference to another statute or

defined by SEC rule have the meanings assigned to them by such definitions.

 

Section 1.4   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 U.S. generally accepted accounting principles as in effect from

time to time;

 

(3)   “or”

is not exclusive;

 

(4)   “including”

means including, without limitation; and

 

(5)   words

in the singular include the plural, and words in the plural include the

singular.

 

Section 1.5   Acts of Holders.  (a) 

Any request, demand, authorization, direction, notice, consent, waiver

or other action provided by this Indenture to be given or taken by Holders may

be embodied in and evidenced by one or more instruments of substantially

similar tenor signed by such Holders in person or by 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 12.2.  Such

instrument or instruments (and the action embodied therein and evidenced

thereby) are herein sometimes referred to as the “Act” of 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.

 

(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

 

8

 

that the

individual signing such instrument or writing acknowledged to such officer the

execution thereof. Where such execution is by a signer acting in a capacity

other than such signer’s individual capacity, such certificate or affidavit

shall also constitute sufficient proof of such signer’s authority. The fact and

date of the execution of any such 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

serial number of any Security and the ownership of Securities shall be proved

by the register for the Securities.

 

(d)   Any request, demand,

authorization, direction, notice, consent, waiver or other Act of the Holder of

any Security shall bind every future Holder of the same Security and the Holder

of every Security issued upon the registration of transfer thereof or in

exchange therefor or in lieu thereof in respect of anything done, omitted or

suffered to be done by the Trustee or the Company in reliance thereon, whether

or not notation of such action is made upon such Security.

 

(e)   If the Company shall solicit

from the Holders any request, demand, authorization, direction, notice,

consent, waiver or other Act, the Company may, at its option, by or pursuant to

a Board Resolution, fix in advance a record date for the determination of

Holders entitled to give such request, demand, authorization, direction,

notice, consent, waiver or other Act, but the Company shall have no obligation

to do so. If such a record date is fixed, such request, demand, authorization,

direction, notice, consent, waiver or other Act may be given before or after

such record date, but only the Holders of record at the close of business on

such record date shall be deemed to be Holders for the purposes of determining

whether Holders of the requisite proportion of outstanding Securities have

authorized or agreed or consented to such request, demand, authorization,

direction, notice, consent, waiver or other Act, and for that purpose the

outstanding Securities shall be computed as of such record date; provided that

no such authorization, agreement or consent by the Holders on such record date

shall be deemed effective unless it shall become effective pursuant to the

provisions of this Indenture not later than six months after the record date.

 

ARTICLE II

 

THE SECURITIES

 

Section 2.1   Form and Dating.  The

Securities and the Trustee’s certificate of authentication shall be

substantially in the form of Exhibits A and B, which are 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.

 

(a)   144A Global Securities.  Securities offered and sold within the

United States to qualified institutional buyers as defined in Rule 144A

(“QIBs”) in reliance on Rule 144A shall be issued initially in the form of a

144A Global Security, which shall be deposited with the Trustee at its

Corporate Trust Office, as custodian for the Depositary (as defined below) and

 

9

 

registered in

the name of The Depository Trust Company (“DTC”) or the nominee thereof (DTC,

or any successor thereto, and any such nominee being hereinafter referred to as

the “Depositary”), duly executed by the Company and authenticated by the

Trustee as hereinafter provided.  The

aggregate principal amount of the 144A 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.

 

(b)   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 represent the aggregate amount of outstanding Securities from

time to time endorsed thereon and that the aggregate amount of outstanding

Securities represented thereby may from time to time be reduced or increased,

as appropriate, to reflect exchanges, redemptions, repurchases and conversions.

 

Any adjustment of the aggregate principal

amount of a Global Security to reflect the amount of any increase or decrease

in the amount of outstanding Securities represented thereby shall be made by

the Trustee in accordance with instructions given by the Holder thereof as

required by Section 2.12 hereof and shall be made on the records of the

Trustee and the Depositary.

 

(c)   Book-Entry Provisions.  This

Section 2.1(c) shall apply only to Global Securities deposited with or on

behalf of the Depositary.

 

The Company shall execute and the Trustee

shall, in accordance with this Section 2.1(c), authenticate and deliver

initially one or more Global Securities that (a) shall be registered in the

name of the Depositary, (b) shall be delivered by the Trustee to the Depositary

or pursuant to the Depositary’s instructions and (c) shall be substantially in

the form of Exhibit A attached hereto; provided that the Legend (other

than the first and second paragraphs thereof) may be removed from such Global

Security on satisfaction of the conditions specified in this Indenture.

 

(d)   Certificated Securities.  Securities

not issued as interests in the Global Securities will be issued in certificated

form substantially in the form of Exhibit B attached hereto; provided that the

Legend may be removed from such Securities on satisfaction of the conditions

specified in this Indenture.

 

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.

 

Securities bearing the manual or facsimile

signatures of individuals who were at the time of the execution of the

Securities Officers shall bind the Company, notwithstanding that such

individuals or any of them have ceased to hold such offices prior to the

authentication and delivery of such Securities or did not hold such offices at

the date of authentication of such Securities.

 

No Security shall be entitled to any benefit

under this Indenture or be valid or obligatory for any purpose unless there

appears on such Security a certificate of authentication

 

10

 

substantially in the form provided for herein

duly executed by the Trustee by manual signature of an authorized signatory,

and such certificate upon any Security shall be conclusive evidence, and the

only evidence, that such Security has been duly authenticated and delivered

hereunder.

 

The Trustee shall authenticate and deliver the

Securities for original issue in an aggregate principal amount of up to

$75,000,000 upon one or more Company Orders without any further action by the

Company (other than as contemplated in Section 12.4 and Section 12.5

hereof).  The aggregate principal amount

of the Securities due at the Stated Maturity thereof outstanding at any time

may not exceed the amount set forth in the foregoing sentence.

 

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 of $1,000.

 

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 purchase or payment (“Paying Agent”) and

an office or agency where Securities may be presented for conversion

(“Conversion Agent”).  The Registrar

shall keep a register of the Securities and of their transfer and

exchange.  The Company may 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 4.5. The term Conversion Agent includes any additional

conversion agent, including any named pursuant to Section 4.5.

 

The Company shall enter into an appropriate

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).  The agreement shall

-implement the provisions of this Indenture that relate to such agent.  The Company shall notify the Trustee of the

name and address of any 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 8.7. 

The Company or any Subsidiary or an Affiliate of either of them may act

as Paying Agent, Registrar, Conversion Agent or co-registrar.

 

The Company initially appoints the Trustee as

Registrar, Conversion Agent and Paying Agent in connection with the Securities.

 

Section 2.4   Paying Agent to

Hold Money and Securities in Trust.  Except

as otherwise provided herein, on or prior to each due date of payments in

respect of any Security, the Company shall deposit with the Paying Agent a sum

of money (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

Securityholders or the Trustee all money 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.  At any time during the continuance of any

such default, the Paying Agent shall, upon the written request of the Trustee,

forthwith pay to the Trustee all money so held in trust.  If the Company, a Subsidiary or an Affiliate

of either of them acts as Paying Agent, it shall segregate the money held by it

as Paying

 

11

 

Agent and hold it as a separate trust fund.  The Company at any time may require a Paying

Agent to pay all money held by it to the Trustee and to account for any funds

and Common Stock disbursed by it.  Upon

doing so, the Paying Agent shall have no further liability for the money.

 

Section

2.5   Securityholder Lists.  The

Trustee shall preserve in as current a form as is reasonably practicable the

most recent list available to it of the names and addresses of

Securityholders.  If the Trustee is not

the Registrar, the Company shall cause to be furnished to the Trustee at least

semiannually on January 1 and July 1 a listing of Securityholders

dated within 15 days of the date on which the list is furnished and at such

other times as the Trustee may request in writing a list in such form and as of

such date as the Trustee may reasonably require of the names and addresses of

Securityholders.

 

Section 2.6  

Transfer and Exchange.

(a)  Subject to Section 2.12

hereof, upon surrender for registration of transfer of any Security, together

with a written instrument of transfer satisfactory to the Registrar duly

executed by the Securityholder or such Securityholder’s attorney duly

authorized in writing, at the office or agency of the Company designated as

Registrar or co–registrar pursuant to Section 2.3, the Company shall

execute, and the Trustee shall authenticate and deliver, in the name of the

designated transferee or transferees, one or more new Securities of any

authorized denomination or denominations, of a like aggregate principal

amount.  The Company shall not charge a

service charge for any registration of transfer or exchange, but the Company

may require payment of a sum sufficient to pay all taxes, assessments or other

governmental charges that may be imposed in connection with the transfer or

exchange of the Securities from the Securityholder requesting such transfer or

exchange.

 

At the option of the Holder, Securities may

be exchanged for other Securities of any authorized denomination or

denominations, of a like aggregate principal amount upon surrender of the

Securities to be exchanged, together with a written instrument of transfer

satisfactory to the Registrar duly executed by the Securityholder or such

Securityholder’s attorney duly authorized in writing, at such office or

agency.  Whenever any Securities are so

surrendered for exchange, the Company shall execute, and the Trustee shall

authenticate and deliver, the Securities which the Holder making the exchange

is entitled to receive.

 

The Company shall not be required to make,

and the Registrar need not register, transfers or exchanges of Securities

selected for redemption (except, in the case of Securities to be redeemed in

part, the portion thereof not to be redeemed) or any Securities in respect of

which a Change of Control 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 purchased in part, the portion thereof not to be

purchased) or any Securities for a period of 15 days before the mailing of a

notice of redemption of Securities to be redeemed.

 

(b)   Notwithstanding any

provision to the contrary herein, so long as a Global Security remains

outstanding and is held by or on behalf of the Depositary, (i) transfers of

beneficial interests in a Global Security, in whole or in part, may be effected

only through a book entry system maintained by the Holder of such Global

Security (or its agent) in accordance with Applicable Procedures, (ii) ownership

of a beneficial interest in the Security shall be required to be reflected in

book entry and (iii) transfers of Global Securities or beneficial interests in

Global

 

12

 

Securities

shall be made only in accordance with Section 2.12 and this

Section 2.6(b).  Transfers of a

Global Security shall be limited to transfers of such Global Security in whole

or in part, to the Depositary, to nominees of the Depositary or to a successor

of the Depositary or such successor’s nominee.

 

(c)   Successive registrations and

registrations of transfers and exchanges as aforesaid may be made from time to

time as desired, and each such registration shall be noted on the register for

the Securities.

 

(d)   Any Registrar appointed pursuant

to Section 2.3 hereof 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.

 

(e)   No Registrar shall be

required to make registrations of transfer or exchange of Securities during any

periods designated in the text of the Securities or in this Indenture as

periods during which such registration of transfers and exchanges need not be

made.

 

(f)    If Securities are issued

upon the transfer, exchange or replacement of Securities subject to

restrictions on transfer and bearing the legends set forth on the forms of

Security attached hereto as Exhibits A and B setting forth such restrictions

(collectively, the “Legend”), or if a request is made to remove the Legend on a

Security, the Securities so issued shall bear the Legend, or the Legend shall

not be removed, as the case may be, unless there is delivered to the Company

and the Registrar such satisfactory evidence, which shall include an opinion of

counsel, as may be reasonably required by the Company and the Registrar and the

Trustee (if not the same Person as the Trustee), that neither the Legend nor

the restrictions on transfer set forth therein are required to ensure that

transfers thereof comply with the provisions of Rule 144A or Rule 144 under the

Securities Act of 1933, as amended (“Securities Act”) or that such Securities

are not “restricted” within the meaning of Rule 144 under the Securities Act.  Upon (i) provision of such satisfactory

evidence, or (ii) notification by the Company to the Trustee and Registrar of

the sale of such Security pursuant to a registration statement that is

effective at the time of such sale, the Trustee, at the written direction of

the Company, shall authenticate and deliver a Security that does not bear the

Legend.  If the Legend is removed from

the face of a Security and the Security is subsequently held by the Company or

an Affiliate of the Company, the Legend shall be reinstated.

 

In the event Rule 144(k) as promulgated under

the Securities Act is amended to shorten the two-year period under Rule 144(k),

then, the references in the Legend to “TWO YEARS”, and in the corresponding

transfer restrictions described above, will be deemed to refer to such shorter

period, from and after receipt by the Trustee of an Officers’ Certificate and

an Opinion of Counsel to that effect. 

As soon as practicable after the Company knows of the effectiveness of

any such amendment to shorten the two-year period under Rule 144(k), unless

such changes would otherwise be prohibited by, or would cause a violation of,

the federal securities laws applicable at the time, the Company will provide to

the Trustee an Officers’ Certificate and an Opinion of Counsel as to the

effectiveness of such amendment and the effectiveness of such change to the

restrictive legends and transfer restrictions.

 

13

 

Until the Legend on any Restricted Security

has been removed in compliance with this Section 2.6(f), all shares of Common

Stock (or other securities issuable upon conversion as a result of the

provisions of this Indenture) issued upon conversion of such Restricted

Security shall bear a legend substantially in the form of the Legend (the

“Common Stock Restrictive Legend”) and shall be subject to the same

restrictions on transfer as such Restricted Security.  At any time following the time when the restrictions on transfer

set forth in the Common Stock Restrictive Legend shall have expired in

accordance with their terms or shall have terminated under applicable law, the

holder of such Common Stock may, upon a surrender of the certificate

representing such Common Stock exchange to the Company’s transfer agent in

accordance with such agent’s customary procedures (accompanied, in the event

that such restrictions on transfer have terminated by reason of a transfer in

compliance with Rule 144 or any successor provision, by an opinion of counsel

having substantial experience in practice under the Securities Act and

otherwise reasonably acceptable to the Company, addressed to the Company and in

form acceptable to the Company, to the effect that the transfer of such Common

Stock has been made in compliance with Rule 144 or such successor provision),

may receive a new certificate representing such Common Stock, in like amount,

which shall not bear the Common Stock Restrictive Legend.

 

Section 2.7   Replacement

Securities.  If

(a) any mutilated Security is surrendered to the Trustee, or (b) the Company

and the Trustee receive evidence to their satisfaction of the destruction, loss

or theft of any Security, and there is delivered to the Company and the Trustee

such security or indemnity as may be required by them to save each of them

harmless, then, in the absence of notice to the Company or the Trustee that

such Security has been acquired by a 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 purchased by the Company pursuant to Article 3 hereof, the Company

in its discretion may, instead of issuing a new Security, pay or purchase 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 or other governmental charge that may be imposed in relation

thereto and any other expenses (including the fees and expenses of the Trustee)

connected therewith.

 

Every new Security issued pursuant to this

Section 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.

 

14

 

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 paid pursuant to Section 2.7,

those delivered to it for cancellation and those described in this Section 2.8

as not outstanding.  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

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 (including, without limitation,

determinations pursuant to Articles 7 and 10).

 

If a Security is replaced pursuant to

Section 2.7, it ceases to be outstanding unless the Trustee receives proof

satisfactory to it that the replaced Security is held by a bona fide purchaser.

 

If the Paying Agent holds, in accordance with

this Indenture, on a Redemption Date, or on the Business Day following a Change

of Control Purchase Date, or on Stated Maturity, money  sufficient to pay Securities payable on that

date, then immediately after such Redemption Date, Change of Control Purchase

Date or Stated Maturity, as the case may be, such Securities shall cease to be

outstanding and interest, including Additional Amounts, if any, on such

Securities shall cease to accrue; provided, that if such Securities are to be

redeemed, notice of such redemption has been duly given pursuant to this

Indenture or provision therefor satisfactory to the Trustee has been made.

 

If a Security is converted in accordance with

Article 11, then from and after the time of conversion on the date of conversion,

such Security shall cease to be outstanding and interest, including Additional

Amounts, if any, shall cease to accrue on such Security.

 

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 will cause definitive Securities to be prepared without unreasonable

delay.  After the preparation of

definitive Securities, the temporary Securities shall be exchangeable for definitive

Securities upon surrender of the temporary Securities at the office or agency

of the Company designated for such purpose pursuant to Section 2.3,

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

 

15

 

deliver in exchange therefor a like principal

amount of definitive Securities of authorized denominations.  Until so exchanged the temporary Securities

shall in all respects be entitled to the same benefits under this Indenture as

definitive Securities.

 

Section 2.10   Cancellation.  If

the Company shall acquire any of the Securities, such acquisition shall not

operate as a redemption or satisfaction of the indebtedness represented by such

Securities unless the same are delivered to the Trustee for cancellation.  All Securities surrendered for payment,

purchase by the Company pursuant to Article 3, 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.  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 it has paid or delivered to the Trustee for

cancellation or that any Holder has converted pursuant to Article 11.  No Securities shall be authenticated in lieu

of or in exchange for any Securities cancelled as provided in this Section,

except as expressly permitted by this Indenture.  All cancelled Securities held by the Trustee shall be disposed of

by the Trustee in accordance with the Trustee’s customary 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 the Security or the payment of any

Redemption Price or Change of Control Purchase Price in respect thereof, and

interest thereon, for the purpose of conversion and for all other purposes

whatsoever, whether or not such Security be overdue, and neither the Company,

the Trustee nor any agent of the Company or the Trustee shall be affected by

notice to the contrary.

 

Section 2.12   Global Securities.  (a) 

Notwithstanding any other provisions of this Indenture or the

Securities, (A) transfers of a Global Security, in whole or in part, shall be

made only in accordance with Section 2.6 and Section 2.12(a)(i), (B)

transfers or exchanges of a beneficial interest in a Global Security for an

interest in the same or another Global Security shall comply with Section 2.6

and Section 2.12(a)(ii) below, (C) transfers of a beneficial interest in a

Global Security for a Certificated Security shall comply with Section 2.6,

Section 2.12(a)(ii) below and Section 2.12(e)(1) below, and (D)

transfers of a Certificated Security shall comply with Section 2.6 and

Sections 2.12(a)(iv) and (v) below.

 

(i)            Transfer of Global Security.  A

Global Security may not  be transferred,

in whole or in part, to any Person other than the Depositary or a nominee or

any successor thereof, and no such transfer to any such other Person may be

registered; provided that this clause (i) shall not prohibit any transfer of a

Certificated Security that is issued in exchange for a Global Security.  No transfer of a Global Security to any

Person shall be effective under this Indenture or the Securities unless and

until such Security has been registered in the name of such Person.  Nothing in this Section 2.12(a)(i)

shall prohibit or render ineffective any transfer of a beneficial interest in a

Global Security effected in accordance with the other provisions of this

Section 2.12(a).

 

16

 

(ii)           Transfer or

Exchange of a Beneficial Interest in a Global Security for a Beneficial

Interest in the Same or Another Global Security.

 

(x)            A beneficial interest in a Global

Security may not be transferred or exchanged for a beneficial interest in

another Global Security except upon satisfaction of the requirements set forth

below.  Upon receipt by the Trustee of a

request to transfer or exchange of a beneficial interest in a Global Security

in accordance with Applicable Procedures for a beneficial interest in another

Global Security,  together with:

 

(A) so long as

the Securities are Restricted Securities, 

certification in the form set forth in Exhibit C;

 

(B) written

instructions to the Trustee to make, or direct the Registrar to make, in the

case of a transfer or exchange of a beneficial interest in a Global Security

for a beneficial interest in another Global Security, an adjustment on its

books and records with respect to such Global Securities to reflect a decrease

and increase in the aggregate principal amount of the Securities represented by

such Global Securities, such instructions to contain information regarding the

Depositary accounts to be credited with such decrease and increase; and

 

(C) if the

Company or the Trustee so requests, an opinion of counsel or other evidence

reasonably satisfactory to it as to the compliance with the restrictions set

forth in the Legend,

 

then the

Trustee, (1) shall cause, or direct the Registrar to cause, in accordance with

the standing instructions and procedures existing between the Depositary and

the Registrar, the aggregate principal amount of the Securities represented by

the appropriate Global Security to be decreased by the aggregate principal

amount that the other Global Security is increased and (2) in accordance with

the standing instructions and procedures existing between the Depositary and

the Registrar and Applicable Procedures, shall debit and credit or cause to be

debited or credited, as appropriate, to the accounts of the persons specified

in such instructions a beneficial interest in the Global Security or Global

Securities, as appropriate, equal to the amount of the beneficial interests so

transferred or exchanged.

 

(y)           Beneficial interests

in a Global Security may be transferred to Persons who take delivery in the

same Global Security in accordance with the Applicable Procedures and, if the

Global Security is a Restricted Security, in accordance with the transfer

restrictions set forth in the Legend. 

No written orders or instructions shall be required to be delivered to

the Registrar or the Trustee to effect the transactions described in this

Section 2.12(a)(ii)(y).

 

(z)            Other than

transfers to the Company or to an Affiliate of the Company, beneficial

interests in a Global Security that is not a Restricted Security

 

17

 

may not be

transferred to Person who takes delivery thereof in the form a beneficial

interest in a Global Security that is a Restricted Security.

 

(iii)          Transfer or Exchange of a

Beneficial Interest in a Global Security for a Certificated Security.  A beneficial interest in a Global Security

may not be exchanged for a Certificated Security except upon satisfaction of

the requirements set forth below and in Section 2.12(e)(1) below.  Upon receipt by the Trustee of a transfer of

a beneficial interest in a Global Security in accordance with Applicable

Procedures for a Certificated Security in the form satisfactory to the Trustee,

together with:

 

(A) so long as the Securities are Restricted

Securities, certification in the form set forth in Exhibit C;

 

(B) written instructions to the Trustee to

make, or direct the Registrar to make, an adjustment on its books and records

with respect to such Global Security to reflect a decrease in the aggregate

principal amount of the Securities represented by the Global Security, such

instructions to contain information regarding the Depositary account to be

credited with such decrease; and

 

(C) if the Company or the Trustee so

requests, an opinion of counsel or other evidence reasonably satisfactory to it

as to the compliance with the restrictions set forth in the Legend,

 

then the Trustee shall cause, or direct the

Registrar to cause, in accordance with the standing instructions and procedures

existing between the Depositary and the Registrar, the aggregate principal

amount of the Securities represented by the Global Security to be decreased by

the aggregate principal amount of the Certificated Security to be issued, shall

issue such Certificated Security and shall debit or cause to be debited to the

account of the person specified in such instructions a beneficial interest in

the Global Security equal to the principal amount of the Certificated Security

so issued.

 

(iv)          Transfer and Exchange of

Certificated Securities.  When Certificated Securities are

presented to the Registrar with a request:

 

(y)           to

register the transfer of such Certificated Securities; or

 

(z)            to

exchange such Certificated Securities for an equal principal amount of

Certificated Securities of other authorized denominations,

 

the Registrar shall register the transfer or

make the exchange as requested if its reasonable requirements for such

transaction are met; provided, however, that the Certificated Securities

surrendered for transfer or exchange:

 

(1)                        shall

be duly endorsed or accompanied by a written instrument of transfer in form

reasonably satisfactory to the Company and the Registrar, duly executed by the

Holder thereof or his attorney duly authorized in writing; and

 

18

 

(2)                        so

long as such Securities are Restricted Securities, such Securities are being

transferred or exchanged pursuant to an effective registration statement under

the Securities Act or pursuant to clause (A), (B) or (C) below, and are

accompanied by the following additional information and documents, as

applicable:

 

(A)  if such Certificated Securities are being

delivered to the Registrar by a Holder for registration in the name of such Holder,

without transfer, a certification from such Holder to that effect; or

 

(B)   if such Certificated Securities are being

transferred to the Company, a certification to that effect; or

 

(C)   if such Certificated Securities are being

transferred pursuant to an exemption from registration, (i) a certification to

that effect (in the form set forth in Exhibit C, if applicable) and (ii) if the

Company so requests, an opinion of counsel or other evidence reasonably

satisfactory to it as to the compliance with the restrictions set forth in the

Legend.

 

(v)           Transfer of a Certificated

Security for a Beneficial Interest in a Global Security.  A Certificated Security may not be exchanged

for a beneficial interest in a Global Security except upon satisfaction of the

requirements set forth below.

 

Upon receipt by the Trustee of a Certificated

Security, duly endorsed or accompanied by appropriate instruments of transfer,

in form satisfactory to the Trustee, together with:

 

(I)            so

long as the Securities are Restricted Securities, certification, in the form

set forth in Exhibit C, that such Certificated Security is being transferred to

a QIB in accordance with Rule 144A, or to an institutional accredited investor

within the meaning of Rule 501(a)(1), (2), (3) or (7) of Regulation D of the

Securities Act; and

 

(II)           written

instructions directing the Trustee to make, or to direct the Registrar to make,

an adjustment on its books and records with respect to such Global Security to

reflect an increase in the aggregate principal amount of the Securities

represented by the Global Security, such instructions to contain information

regarding the Depositary account to be credited with such increase, then the

Trustee shall cancel such Certificated Security and cause, or direct the Registrar

to cause, in accordance with the standing instructions and procedures existing

between the Depositary and the Registrar, the aggregate principal amount of

Securities represented by the Global Security to be increased by the aggregate

principal amount of the Certificated Security to be exchanged, and shall credit

or cause to be credited to the account of the Person

 

19

 

specified in such instructions a beneficial

interest in the Global Security equal to the principal amount of the

Certificated Security so cancelled.  If

no Global Securities are then outstanding, the Company shall issue and the

Trustee shall authenticate, upon written order of the Company in the form of an

Officers’ Certificate, a new Global Security in the appropriate principal

amount.

 

(b)  Subject to the succeeding

Section (c), every Security shall be subject to the restrictions on

transfer provided in the Legend including the delivery of an opinion of

counsel, if so provided.  Whenever any

Restricted Security is presented or surrendered for transfer or for exchange,

such Security must be accompanied by a certificate in substantially the form

set forth in Exhibit C, dated the date of such surrender and signed by the

Holder of such Security, as to compliance with such restrictions on

transfer.  The Registrar shall not be

required to accept for such transfer or exchange any Security not so

accompanied by a properly completed certificate.

 

(c)  The restrictions imposed by

the Legend upon the transferability of any Security shall cease and terminate

when such Security has been sold pursuant to an effective registration

statement under the Securities Act or transferred in compliance with Rule 144

under the Securities Act (or any successor provision thereto) or, if earlier,

upon the expiration of the holding period applicable to sales thereof under

Rule 144(k) under the Securities Act (or any successor provision).  Any Security as to which such restrictions on

transfer shall have expired in accordance with their terms or shall have

terminated may, upon a surrender of such Security for exchange to the Registrar

in accordance with the provisions of this Section 2.12 (accompanied, in

the event that such restrictions on transfer have terminated by reason of a

transfer in compliance with Rule 144 or any successor provision, by an opinion

of counsel having substantial experience in practice under the Securities Act

and otherwise reasonably acceptable to the Company, addressed to the Company

and in form acceptable to the Company, to the effect that the transfer of such

Security has been made in compliance with Rule 144 or such successor

provision), be exchanged for a new Security, of like tenor and aggregate

principal amount, which shall not bear the restrictive Legend.  The Company shall inform the Trustee of the

effective date of any registration statement registering the Securities under

the Securities Act.  The Trustee shall not

be liable for any action taken or omitted to be taken by it in good faith in accordance

with the aforementioned opinion of counsel or registration statement.

 

(d)  As used in the preceding

two paragraphs of this Section 2.12, the term “transfer” encompasses any

sale, pledge, transfer, loan, hypothecation, or other disposition of any

interest in any Security.

 

(e)  The provisions of clauses

(1), (2), (3) and (4) below shall apply only to Global Securities:

 

(1)                        Notwithstanding

any other provisions of this Indenture or the Securities, a Global Security

shall not be exchanged in whole or in part for a Security registered in the

name of any Person other than the Depositary or one or more nominees thereof,

provided that a Global Security may be exchanged for Securities registered in

the names of any Person designated by the

 

20

 

Depositary in the event that (i) the

Depositary has notified the Company that it is unwilling or unable to continue

as Depositary for such Global Security or such Depositary has ceased to be a

“clearing agency” registered under the Securities Exchange Act of 1934, as

amended (the “Exchange Act”), and a successor Depositary is not appointed by

the Company within 90 days or (ii) an Event of Default has occurred and is

continuing with respect to the Securities. 

Any Global Security exchanged pursuant to clause (i) above shall be so

exchanged in whole and not in part, and any Global Security exchanged pursuant

to clause (ii) above may be exchanged in whole or from time to time in part as

directed by the Depositary.  Any Security

issued in exchange for a Global Security or any portion thereof shall be a

Global Security; provided that any such Security so issued that is registered

in the name of a Person other than the Depositary or a nominee thereof shall

not be a Global Security.

 

(2)                        Securities

issued in exchange for a Global Security or any portion thereof shall be issued

in definitive, fully registered form, without interest coupons, shall have an

aggregate principal amount equal to that of such Global Security or portion

thereof to be so exchanged, shall be registered in such names and be in such

authorized denominations as the Depositary shall designate and shall bear the

applicable legends provided for herein. 

Any Global Security to be exchanged in whole shall be surrendered by the

Depositary to the Trustee, as Registrar. 

With regard to any Global Security to be exchanged in part, either such

Global Security shall be so surrendered for exchange or, if the Trustee is

acting as custodian for the Depositary or its nominee with respect to such

Global Security, the principal amount thereof shall be reduced, by an amount

equal to the portion thereof to be so exchanged, by means of an appropriate

adjustment made on the records of the Trustee. 

Upon any such surrender or adjustment, the Trustee shall authenticate

and deliver the Security issuable on such exchange to or upon the order of the

Depositary or an authorized representative thereof.

 

(3)                        Subject

to the provisions of clause (5) below, the registered Holder may grant proxies

and otherwise authorize any Person, including Agent Members (as defined below)

and Persons that may hold interests through Agent Members, to take any action

which a holder is entitled to take under this Indenture or the Securities.

 

(4)                        In

the event of the occurrence of any of the events specified in clause (1) above,

the Company will promptly make available to the Trustee a reasonable supply of

Certificated Securities in definitive, fully registered form, without interest

coupons.

 

(5)                        Neither

any members of, or participants in, the Depositary (collectively, the “Agent

Members”) nor any other Persons on whose behalf Agent Members may act shall

have any rights under this Indenture with respect to any Global Security

registered in the name of the Depositary or any nominee

 

21

 

thereof, or

under any such Global Security, and the Depositary or such nominee, as the case

may be, may be treated by the Company, the Trustee and any agent of the Company

or the Trustee as the absolute owner and holder of such Global Security for all

purposes whatsoever.  Notwithstanding

the foregoing, nothing herein shall prevent the Company, the Trustee or any

agent of the Company or the Trustee from giving effect to any written certification,

proxy or other authorization furnished by the Depositary or such nominee, as

the case may be, or impair, as between the Depositary, its Agent Members and

any other Person on whose behalf an Agent Member may act, the operation of

customary practices of such Persons governing the exercise of the rights of a

holder of any Security.

 

(f)            By its acceptance

of any Security bearing the Legend, each Holder of such Security acknowledges

the restrictions on transfer of such Security set forth in this Indenture and

agrees that it will transfer such Security only as provided in this Indenture.

 

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 as a convenience to Holders;

provided that any such notice may state that no representation is made as to

the correctness of such numbers either as printed on the Securities or as

contained in any notice of a redemption and that reliance may be placed only on

the other identification numbers printed on the Securities, and any such

redemption shall not be affected by any defect in or omission of such

numbers.  The Company will promptly

notify the Trustee of any change in the CUSIP numbers.

 

ARTICLE III

 

REDEMPTION AND PURCHASES

 

Section 3.1   Company’s Right to Redeem;

Notices to Trustee.  Prior to June

20, 2005, the Securities will not be redeemable at the Company’s option.  Beginning on June 20, 2005, the Company, at

its option, may redeem the Securities, subject to and in accordance with the

terms and conditions of Section 5 of the Securities, for cash, as a whole

or in part, at a redemption price equal to the principal amount of those

Securities plus any accrued and unpaid interest, including Additional Amounts,

if any, on those Securities to the Redemption Date. If the Company elects to

redeem Securities pursuant to Section 5 of the Securities, it shall notify

the Trustee in writing of the Redemption Date, the principal amount of

Securities to be redeemed and the Redemption Price.

 

The Company shall give the notice to the

Trustee of its intention to exercise its right to redeem the Securities as

provided for in this Section 3.1 by a Company Order at least ten (10)

Business Days prior to the day the Redemption Notice is to be mailed.

 

Section 3.2   Selection of Securities

to Be Redeemed.  If less than all

the Securities are to be redeemed, unless the procedures of the Depositary

provide otherwise, the Trustee shall select the Securities to be redeemed by

lot, on a pro rata basis or by another method the Trustee considers fair and

appropriate (so long as such method is not prohibited by the rules

 

22

 

of any stock exchange on which the Securities are then

listed).  The Trustee shall make the

selection within five Business Days after it receives the notice provided for

in Section 3.1 from outstanding Securities not previously called for

redemption. The Trustee may select for redemption portions of the principal

amount of Securities that have denominations larger than $1,000.

 

Securities and portions of Securities that

the Trustee selects shall be in principal amounts of $1,000 or an integral

multiple of $1,000.  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 the close of business on

the second Business Day prior to the Redemption Date.  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.  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.

 

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 shall identify the Securities to

be redeemed and shall state:

 

(1)                        the

Redemption Date;

 

(2)                        the

Redemption Price;

 

(3)                        the

Conversion Price;

 

(4)                        the name

and address of the Paying Agent and Conversion Agent;

 

(5)                        that

Securities called for redemption may be converted at any time before the close

of business on the second Business Day prior to the Redemption Date;

 

(6)                        that

Holders who wish to convert their Securities must satisfy the requirements set

forth in Section 8 of the Securities;

 

(7)                        that

Securities called for redemption must be surrendered to the Paying Agent to

collect the Redemption Price;

 

(8)                        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;

 

23

 

(9)                        that,

unless the Company defaults in making payment of such Redemption Price,

interest, including Additional Amounts, if any, on Securities called for

redemption will cease to accrue interest on and after the Redemption Date; and

 

(10)                  the CUSIP

number(s) of the Securities.

 

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 that the Company makes such request at least ten Business

Days prior to the date by which such notice of redemption is to be given to

Holders in accordance with this Section 3.3, unless the Trustee agrees to

a shorter period.

 

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 stated in the notice except for

Securities which are converted in accordance with the terms of this Indenture.

Upon surrender to the Paying Agent, such Securities shall be paid at the

Redemption Price stated in the notice.

 

Section 3.5   Deposit of Redemption

Price.   Prior to 10:00 a.m. (New

York City time), on the Redemption Date, the Company shall deposit with the

Paying Agent (or if the Company or a Subsidiary or an Affiliate of either of

them is the Paying Agent, shall segregate and hold in trust) money sufficient

to pay the Redemption Price of all Securities to be redeemed on that 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. 

The Paying Agent shall as promptly as practicable return to the Company

any money not required for that purpose because of conversion of Securities

pursuant to Article 11.  If such money

is then held by the Company in trust and is not required for such purpose it

shall be discharged from such trust.

 

Section 3.6   Securities Redeemed

in Part.  Upon surrender of a

Security that is redeemed in part, the Company shall execute and the Trustee

shall authenticate and deliver to the Holder a new Security in an authorized

denomination equal in principal amount to the unredeemed portion of the

Security surrendered.

 

Section 3.7   Purchase of Securities

at Option of the Holder upon Change of Control.  (a) (1)  If a Change of

Control occurs (subject to certain exceptions set forth below), the Securities

not previously purchased by the Company shall be purchased by the Company for

cash, at the option of the Holder thereof, at a purchase price specified in

Section 6 of the Securities (the “Change of Control Purchase Price”), as of

the date that is no later than 30 days after the date of a notice of Change of

Control delivered by the Company pursuant to Section 3.7(b) (the “Change of

Control Purchase Date”), subject to satisfaction by or on behalf of the Holder

of the requirements set forth in Section 3.7(c).

 

A “Change of Control” will be deemed to have

occurred at such time after the Securities are originally issued when any of

the following events shall occur:

 

(i)            the acquisition by any Person,

including any syndicate or group deemed to be a “person” under Section 13(d)

(3) of the Exchange Act, of beneficial

 

24

 

ownership,

directly or indirectly, through a purchase, merger or other acquisition

transaction or series of purchases, mergers or other acquisition transactions,

of shares of the Capital Stock of the Company entitling that Person to exercise

50% or more of the total voting power of all shares of the Capital Stock of the

Company entitled to vote generally in elections of directors, other than any

acquisition by the Company, any of its subsidiaries or any of its employee

benefit plans (except that any of those Persons shall be deemed to have

beneficial ownership of all securities it has the right to acquire, whether the

right is currently exercisable or is exercisable only upon the occurrence of a

subsequent condition); or

 

(ii)           the first day on which a majority of

the members of the board of directors of the Company does not consist of

Continuing Directors; or

 

(iii)          the Company consolidates or merges

with or into any other Person, any merger of another Person into the Company,

or any conveyance, transfer, sale, lease or other disposition of all or

substantially all of the Company’s properties and assets to another Person,

other than:  (A) any transaction:  (1) that does not result in any

reclassification, conversion, exchange or cancellation of outstanding shares of

the Company’s Capital Stock; and (2) pursuant to which the holders of 50%

or more of the total voting power of the Company’s Capital Stock entitled to

vote generally in elections of directors immediately prior to the transaction

have the entitlement to exercise, directly or indirectly, 50% or more of the

total voting power of all shares of Capital Stock entitled to vote generally in

elections of directors of the continuing or surviving Person immediately after

giving effect to such issuance; and (B) any merger primarily for the purpose of

changing the Company’s jurisdiction of incorporation and resulting in a

reclassification, conversion or exchange of outstanding shares of Common Stock,

if at all, solely into shares of common stock of the surviving entity.

 

A “Continuing Director” shall mean, as of any

date of determination, any member of the Board of Directors who:

 

(i)            was a member of the Board of

Directors of the Company on June 13, 2002; or

 

(ii)           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 the new

director’s nomination or election.

 

(2)                                  Notwithstanding

the provisions of Section 3.7(a)(1), the Company shall not be required to

purchase the Securities of the Holders upon a Change of Control pursuant to

this Section 3.7 (and a Change of Control shall be deemed not to have

occurred) if:

 

(i)                                     the

Sale Price per share of Common Stock for any five trading days within (1) the

period of 10 consecutive trading days ending immediately after the later of the

Change of Control or the public announcement of the Change of Control, in the

case of a Change of Control under clause (i) or (ii) of the definition of

“Change of Control” above, or (2) the period of 10

 

25

 

consecutive

trading days ending immediately before the Change of Control, in the case of a

Change of Control under clause (iii) of the definition of “Change of Control”

above, equals or exceeds 110% of the Conversion Price of the Securities in

effect on each of those five trading days; or

 

(ii)                                  all

of the consideration in the transaction or transactions (other than cash

payments for fractional shares and cash payments made in respect of dissenters’

appraisal rights) constituting a Change of Control consists of shares of common

stock traded or to be traded immediately following a Change of Control on a

national securities exchange or the Nasdaq National Market, and, as a result of

the transaction or transactions, the Securities become convertible solely into

that common stock (and any rights attached thereto).

 

For the purposes of this Section 3.7,

(x) whether a Person is a “beneficial owner” shall be determined in accordance

with Rule 13d-3 under the Exchange Act and (y) the term “Person” includes any

syndicate or group that would be deemed to be a “person” under

Section 13(d)(3) of the Exchange Act.

 

(b) 

No later than 30 days after the occurrence of a Change of Control, the

Company shall mail a written notice of the Change of Control by first class

mail to the Trustee and to each Holder (and to beneficial owners as required by

applicable law).  The notice shall

include a form of Change of Control Purchase Notice to be completed by the

Holder and shall state:

 

(1)                        briefly,

the events causing a Change of Control and the date of such Change of Control;

 

(2)                        the date

by which the Change of Control Purchase Notice pursuant to this

Section 3.7 must be delivered to the Paying Agent in order for a Holder to

exercise the repurchase rights;

 

(3)                        the Change

of Control Purchase Date;

 

(4)                        the Change

of Control Purchase Price;

 

(5)                        the name

and address of the Paying Agent and the Conversion Agent;

 

(6)                        the

Conversion Price and any adjustments thereto;

 

(7)                        that the

Securities as to which a Change of Control Purchase Notice has been given may

be converted if they are otherwise convertible pursuant to Article 11 hereof

only if the Change of Control Purchase Notice has been withdrawn in accordance

with the terms of this Indenture;

 

(8)                        that the

Securities must be surrendered to the Paying Agent to collect payment;

 

26

 

(9)                        that the

Change of Control Purchase Price for any Security as to which a Change of

Control Purchase Notice has been duly given and not withdrawn will be paid

promptly following the later of the Change of Control Purchase Date and the

time of surrender of such Security as described in (8);

 

(10)                  briefly, the

procedures the Holder must follow to exercise rights under this

Section 3.7;

 

(11)                  briefly, the

conversion rights of the Securities;

 

(12)                  the procedures

for withdrawing a Change of Control Purchase Notice;

 

(13)                  that, unless the

Company defaults in making payment of such Change of Control Purchase Price,

interest, if any, on Securities surrendered for purchase by the Company will

cease to accrue on and after the Change of Control Purchase Date; and

 

(14)                  the CUSIP

number(s) of the Securities.

 

Without otherwise limiting the Company’s obligations pursuant to this

Section 3.7 in any way, the Company shall also issue a press release through

Dow Jones & Company, Inc. or Bloomberg Business News containing the

relevant information and otherwise make this information publicly available.

 

(c)           A

Holder may exercise its rights specified in Section 3.7(a) upon delivery

of a written notice of purchase (a “Change of Control Purchase Notice”) to the

Paying Agent at any time on or prior to the close of business on the second

Business Day preceding the Change of Control Purchase Date (unless the Company

shall specify a later date), specifying:

 

(1)                        the

certificate number of the Security which the Holder will deliver to be

purchased or the appropriate depositary procedures if Certificated Securities

have not been issued;

 

(2)                        the

portion of the principal amount of the Security which the Holder will deliver

to be purchased, which portion must be $1,000 or an integral multiple of

$1,000; and

 

(3)                        that such

Security shall be purchased pursuant to the terms and conditions specified in

Section 6 of the Securities and in this Indenture.

 

The delivery of such Security to the Paying

Agent with the Change of Control Purchase Notice (together with all necessary

endorsements) at the offices of the Paying Agent shall be a condition to the

receipt by the Holder of the Change of Control Purchase Price therefor;

provided, however, that such Change of Control Purchase Price shall be so paid

pursuant to this Section 3.7 and Section 3.8 only if the Security so

delivered to the Paying Agent shall conform in all respects to the description

thereof set forth in the related Change of Control Purchase Notice.

 

27

 

The Company shall purchase from the Holder

thereof, pursuant to this Section 3.7 and Section 3.8, a portion of a

Security if the principal amount of such portion is $1,000 or an integral multiple

of $1,000. Provisions of this Indenture that apply to the purchase of all of a

Security also apply to the purchase of such portion of such Security.

 

Any purchase by the Company contemplated

pursuant to the provisions of this Section 3.7 and Section 3.8 shall

be consummated by the delivery of the consideration to be received by the

Holder.

 

Notwithstanding anything herein to the

contrary, any Holder delivering to the Paying Agent the Change of Control

Purchase Notice contemplated by this Section 3.7(c) shall have the right

to withdraw such Change of Control Purchase Notice at any time prior to the

close of business on the last Business Day immediately preceding the Change of

Control Purchase Date by delivery of a written notice of withdrawal to the Paying

Agent in accordance with Section 3.8.

 

The Paying Agent shall promptly notify the

Company of the receipt by it of any Change of Control Purchase Notice or

written withdrawal thereof.

 

Section 3.8   Effect of Change

of Control Purchase Notice; Withdrawal. 

Upon receipt by the Paying Agent of the Change of Control Purchase

Notice specified in Section 3.7(c), the Holder of the Security in respect

of which such Change of Control Purchase Notice was given shall (unless such

Change of Control Purchase Notice is withdrawn as specified in the following

two paragraphs) thereafter be entitled to receive solely the Change of Control

Purchase Price with respect to such Security. 

Such Change of Control Purchase Price shall be paid to such Holder,

subject to the receipt of funds by the Paying Agent, promptly following the

later of (x) the Change of Control Purchase Date with respect to such Security

(provided the conditions in Section 3.7(c) have been satisfied) and (y)

the time of delivery of such Security to the Paying Agent by the Holder thereof

in the manner required by Section 3.7(c). 

Securities in respect of which a Change of Control Purchase Notice has

been given by the Holder thereof may not be converted pursuant to Article 11

hereof on or after the date of the delivery of such Change of Control Purchase

Notice unless such Change of Control Purchase Notice has first been validly

withdrawn as specified in the following two paragraphs.

 

A Change of Control Purchase Notice may be

withdrawn by means of a written notice of withdrawal delivered to the office of

the Paying Agent in accordance with the Change of Control Purchase Notice, at

any time prior to the close of business on the close of business on the

Business Day immediately preceding the Change of Control Purchase Date,

specifying:

 

(1)                        the

certificate number, if any, of the Security in respect of which such notice of

withdrawal is being submitted,

 

(2)                        the

principal amount of the Security with respect to which such notice of

withdrawal is being submitted, and

 

(3)                        the

principal amount, if any, of such Security which remains subject to the

original Change of Control Purchase Notice, and which has been or will be

delivered for purchase by the Company.

 

28

 

There shall be no purchase of any Securities

pursuant to Section 3.7 if there has occurred (prior to, on or after, as

the case may be, the giving, by the Holders of such Securities, of the required

Change of Control Purchase Notice) and is continuing an Event of Default (other

than a default in the payment of the Change of Control Purchase Price with

respect to such Securities). The Paying Agent will promptly return to the

respective Holders thereof any Securities (x) with respect to which a Change of

Control Purchase Notice has been withdrawn in compliance with this Indenture,

or (y) held by it during the continuance of an Event of Default (other than a

default in the payment of the Change of Control Purchase Price with respect to

such Securities) in which case, upon such return, the Change of Control

Purchase Notice with respect thereto shall be deemed to have been withdrawn.

 

Section 3.9   Deposit of Change

of Control Purchase Price.  Prior to

10:00 a.m. (New York City time) on the Business Day following the Change of

Control Purchase Date, the Company shall deposit with the Trustee or with the

Paying Agent (or, if the Company or a Subsidiary or an Affiliate of either of

them is acting as the Paying Agent, shall segregate and hold in trust as

provided in Section 2.4) an amount of cash (in immediately available funds

if deposited on such Business Day) sufficient to pay the aggregate Change of

Control Purchase Price of all the Securities or portions thereof which are to

be purchased as of the Change of Control Purchase Date.

 

Section 3.10  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 the Company shall execute and the Trustee shall

authenticate and deliver to the Holder of such Security, without service

charge, a new Security or Securities, of any authorized denomination as

requested by such Holder in aggregate principal amount equal to, and in

exchange for, the portion of the principal amount of the Security so surrendered

which is not purchased.

 

Section 3.11  Covenant to Comply

With Securities Laws Upon Purchase of Securities.  When complying with the provisions of Section 3.7 hereof

(provided that 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), and subject to any exemptions available under applicable law, the

Company shall (i) comply with Rule 13e- 4 and Rule 14e-1 (or any successor

provision) under the Exchange Act, (ii) file the related Schedule TO (or any

successor schedule, form or report) under the Exchange Act, and (iii) otherwise

comply with all Federal and state securities laws so as to permit the rights

and obligations under Section 3.7 to be exercised in the time and in the manner

specified in Section 3.7.

 

Section 3.12  Repayment to the

Company.  The Trustee and the Paying

Agent shall return to the Company any cash that remains unclaimed as provided

in Section 12 of the Securities, together with interest or dividends, if

any, thereon (subject to the provisions of Section 8.1(f)), held by them

for the payment of the Change of Control Purchase Price; provided, however,

that to the extent that the aggregate amount of cash deposited by the Company

pursuant to Section 3.9 exceeds the aggregate Change of Control Purchase

Price of the Securities or

 

29

 

portions thereof which the Company is obligated to

purchase as of the Change of Control Purchase Date, then, unless otherwise

agreed in writing with the Company, promptly after the Business Day following

the Change of Control Purchase Date, the Trustee shall return any such excess

to the Company together with interest thereon (subject to the provisions of

Section 8.1(f)).

 

ARTICLE IV

 

COVENANTS

 

Section 4.1   Payment of

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.  Any amounts of cash to be given to the

Trustee or Paying Agent, shall be deposited with the Trustee or Paying Agent by

10:00 a.m., New York City time, by the Company.  Principal amount plus accrued interest, if any, including

Additional Amounts, if any, the Redemption Price, the Change of Control

Purchase Price and cash interest, if any, shall be considered paid on the

applicable date due if on such date the Trustee or the Paying Agent holds, in

accordance with this Indenture, cash sufficient to pay all such amounts then

due.

 

Section 4.2   SEC and Other

Reports.   The Company shall

file with the Trustee, within 15 days after it files such annual and quarterly

reports, information, documents and other reports with the SEC, copies of its

annual report and 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 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 Section 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).

 

Section 4.3   Compliance

Certificate.  The Company shall

deliver to the Trustee within 120 days after the end of each fiscal year of the

Company (beginning with the fiscal year ending on December 31, 2002) an

Officers’ Certificate, stating whether or not to the knowledge of the signers

thereof, the Company is in default in the performance and observance of any of

the terms, provisions and conditions of this Indenture (without regard to any

period of grace or requirement of notice provided hereunder) and if the Company

shall be in default, specifying all such defaults and the nature and status

thereof of which they may have knowledge.

 

30

 

Section 4.4   Further

Instruments and Acts.  Upon request

of the Trustee, the Company will execute and deliver such further instruments

and do such further acts as may be reasonably necessary or proper to carry out

more effectively the purposes of this Indenture.

 

Section 4.5   Maintenance of

Office or Agency.  The Company will

maintain in the Borough of Manhattan, the City of New York, an office or agency

of the Trustee, Registrar, Paying Agent and Conversion Agent where Securities

may be presented or surrendered for payment, where Securities may be

surrendered for registration of transfer, exchange, purchase, redemption or

conversion and where notices and demands to or upon the Company in respect of

the Securities and this Indenture may be served.  The office of The Bank of New York, 101 Barclay Street, Floor

21W, New York, New York  10286

(Attention:  Corporate Trust Trustee

Administration), 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 12.2.

 

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, The City of New York,

for such purposes.

 

Section 4.6   Delivery of

Certain Information.  At any time

when the Company is not subject to Section 13 or 15(d) of the Exchange Act,

upon the request of a Holder or any beneficial owner of Securities or holder or

beneficial owner of shares of Common Stock issued upon conversion thereof, the

Company will promptly furnish or cause to be furnished Rule 144A Information

(as defined below) to such Holder or any beneficial owner of Securities or

holder or beneficial owner of shares of Common Stock, or to a prospective

purchaser of any such security designated by any such holder, as the case may

be, to the extent required to permit compliance by such Holder or holder with

Rule 144A under the Securities Act in connection with the resale of any such

security. “Rule 144A Information” shall be such information as is specified

pursuant to Rule 144A(d)(4) under the Securities Act.  Whether a Person is a beneficial owner shall be determined by the

Company to the Company’s reasonable satisfaction.

 

ARTICLE V

 

SUBORDINATION

 

Section 5.1   Agreement of

Subordination.  The Company covenants and agrees, and each Holder

of Securities issued hereunder by its acceptance thereof likewise covenants and

agrees, that all Securities shall be issued subject to the provisions of this

Article 5; and each Person holding any Security, whether upon original issue or

upon transfer, assignment or exchange thereof, accepts and agrees to be bound

by such provisions.

 

31

 

The payment of the principal of and interest (including Additional

Amounts, if any) on all Securities (including, but not limited to, the

Redemption Price or the Change in Control Purchase Price) issued hereunder

shall, to the extent and in the manner hereinafter set forth, be subordinated

and subject in right of payment to the prior payment in full in cash or other

payment satisfactory to the holders of Senior Debt of all Senior Debt, whether

outstanding at the date of this Indenture or thereafter incurred.

 

No provision of this Article 5 shall prevent the occurrence of any

Default or Event of Default hereunder.

 

Section 5.2   Payments To

Holders.  No payment shall be made

with respect to the principal of or interest (including Additional Amounts, if

any) on the Securities (including, but not limited to, the Redemption Price or

the Change in Control Purchase Price), except payments and distributions made

by the Trustee as permitted by the first or second paragraph of Section 5.5,

if:

 

(i)            a default by the Company in the

payment of principal of, or premium, if any, or interest on, rent or other

payment obligations due on any Senior Debt occurs and is continuing (or, in the

case of Senior Debt for which there is a period of grace, in the event of such

a default that continues beyond the period of grace, if any, specified in the

instrument or lease evidencing such Senior Debt); or

 

(ii)           a default, other than a payment

default as described in clause (i) above, on any Designated Senior Debt occurs

and is continuing that permits the holders of such Designated Senior Debt to

accelerate its maturity (or, in the case of a lease constituting Designated

Senior Debt, that permits the landlord under such lease either to terminate the

lease or to require the Company to make an irrevocable offer to terminate the

lease following an event of default thereunder) and the Company or the Trustee

receives a notice that such default has occurred and is continuing (a “Payment

Blockage Notice”) from a Representative or holder of Designated Senior Debt or

the Company.

 

Subject to the provisions of Section 5.5, if the Company or the Trustee

receives any Payment Blockage Notice from any holder of Designated Senior Debt

or any Representative thereof pursuant to clause (ii) above, no subsequent

Payment Blockage Notice shall be effective for purposes of this Section unless

and until at least 365 days shall have elapsed since the initial effectiveness

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 (unless such default

was waived, cured or otherwise ceased to exist and thereafter subsequently

reoccurred) shall be, or be made, the basis for a subsequent Payment Blockage

Notice.

 

The Company may and shall resume payments on and distributions in

respect of the Securities upon the earlier of:

 

(a) 

in the case of a default referred to in clause (i) above, the date

upon which all such payments due in respect of such Senior Debt have been paid

in full in cash or other payment satisfactory to the holders of such Senior

Debt, or

 

32

 

(b)  in the case of a default referred to in clause (ii) above,

the earlier of (A) the date on which such default is cured or waived, (B) such

Designated Senior Debt has been paid in full in cash or other payment satisfactory

to the holders of such Designated Senior Debt or (C) 179 days after the date on

which the applicable Payment Blockage Notice is received, if the maturity of

such Designated Senior Debt has not been accelerated, unless this Article 5

otherwise prohibits the payment or distribution at the time of such payment or

distribution; provided, that if such Designated Senior Debt has been

accelerated (or, in the case of a lease constituting Designated Senior Debt, if

as a result of such default the landlord under such lease has given the Company

notice of its intention to terminate the lease or to require the Company to

make an irrevocable offer to terminate the lease following an event of default

thereunder), the Company shall make no payments on or distributions in respect

of the Securities and the Trustee shall not receive or retain any such payments

or distributions until such Designated Senior Debt has been paid in full in

cash or other payment satisfactory to the holders of that Designated Senior

Debt or such acceleration (or terminated, in the case of a lease constituting

Designated Senior Debt) has been cured or waived.

 

Upon any payment by the Company, or distribution of assets of the

Company of any kind or character, whether in cash, property or securities, to

creditors upon any dissolution or winding-up or liquidation or reorganization

of the Company (whether voluntary or involuntary) or in bankruptcy, insolvency,

receivership, assignment for the benefit of creditors or similar proceedings,

all amounts due or to become due upon all Senior Debt shall first be paid in

full in cash, or other payments satisfactory to the holders of Senior Debt,

before any payment is made on account of the principal of or interest

(including Additional Amounts, if any) on the Securities (except payments made

pursuant to Section 9.1 from monies deposited with the Trustee pursuant thereto

prior to commencement of proceedings for such dissolution, winding-up,

liquidation or reorganization); and upon any such dissolution or winding-up or

liquidation or reorganization of the Company or bankruptcy, insolvency,

receivership or other proceeding, any payment by the Company, or distribution

of assets of the Company of any kind or character, whether in cash, property or

securities, to which the Holders of the Securities or the Trustee would be

entitled, except for the provision of this Article 5, shall (except as

aforesaid) be paid by the Company or by any receiver, trustee in bankruptcy,

liquidating trustee, agent or other Person making such payment or distribution,

or by the Holders of the Securities or by the Trustee under this Indenture if

received by them or it, directly to the holders of Senior Debt (pro rata to

such holders on the basis of the respective amounts of Senior Debt held by such

holders, or as otherwise required by law or a court order) or their

representative or representatives, or to the trustee or trustees under any

indenture pursuant to which any instruments evidencing any Senior Debt may have

been issued, as their respective interests may appear, to the extent necessary

to pay all Senior Debt in full in cash, or other payment satisfactory to the

holders of Senior Debt, after giving effect to any concurrent payment or

distribution to or for the holders of Senior Debt, before any payment or

distribution is made to the Holders of the Securities or to the Trustee.

 

For purposes of this Article 5, the words, “cash, property or

securities” shall not be deemed to include shares of stock of the Company as

reorganized or readjusted, or securities of the Company or any other

corporation provided for by a plan of reorganization or readjustment, the

payment of which is subordinated at least to the extent provided in this

Article 5 with respect to the Securities to the payment of all Senior Debt

which may at the time be outstanding; provided that (i) the Senior Debt is

assumed by the new corporation, if any,

 

33

 

resulting from any reorganization or readjustment, and

(ii) the rights of the holders of Senior Debt (other than leases which are

not assumed by the Company or the new corporation, as the case may be) are not,

without the consent of such holders, altered by such reorganization or

readjustment. The consolidation of the Company with, or the merger of the

Company into, another corporation or the liquidation or dissolution of the

Company following the conveyance, transfer or lease of its property as an

entirety, or substantially as an entirety, to another corporation upon the

terms and conditions provided for in Article 6 shall not be deemed a

dissolution, winding-up, liquidation or reorganization for the purposes of this

Section 5.2 if such other corporation shall, as a part of such

consolidation, merger, conveyance, transfer or lease, comply with the

conditions stated in Article 6.

 

In the event of the acceleration of the Securities because of an Event

of Default, no payment or distribution shall be made to the Trustee or any

Holder of Securities in respect of the principal of or interest (including

Additional Amounts, if any) on the Securities by the Company (including, but

not limited to, the Redemption Price or the Change in Control Purchase Price),

except payments and distributions made by the Trustee as permitted by Section

5.5, until all Senior Debt has been paid in full in cash or other payment

satisfactory to the holders of Senior Debt or such acceleration is rescinded in

accordance with the terms of this Indenture. If payment of the Securities is

accelerated because of an Event of Default, the Company shall promptly notify

holders of Senior Debt of such acceleration.

 

In the event that, notwithstanding the foregoing provisions, any

payment or distribution of assets of the Company of any kind or character,

whether in cash, property or securities (including, without limitation, by way

of setoff or otherwise), prohibited by the foregoing, shall be received by the

Trustee or the Holders of the Securities before all Senior Debt is paid in

full, in cash or other payment satisfactory to the holders of Senior Debt, or

provision is made for such payment thereof in accordance with its terms in cash

or other payment satisfactory to the holders of Senior Debt, such payment or

distribution shall be held in trust for the benefit of and shall be paid over

or delivered to the holders of Senior Debt or their representative or

representatives, or to the trustee or trustees under any indenture pursuant to

which any instruments evidencing any Senior Debt may have been issued, as their

respective interests may appear, as calculated by the Company, for application

to the payment of all Senior Debt remaining unpaid to the extent necessary to

pay all Senior Debt in full, in cash or other payment satisfactory to the

holders of Senior Debt, after giving effect to any concurrent payment or

distribution to or for the holders of such Senior Debt.

 

Nothing in this Section 5.2 shall apply to claims of, or payments to,

the Trustee under or pursuant to Article 8. 

This Section 5.2 shall be subject to the further provisions of Section

5.5.

 

Section 5.3  Subrogation Of Securities

 

Subject to the payment in full, in cash or other payment satisfactory

to the holders of Senior Debt, of all Senior Debt, the rights of the Holders of

the Securities shall be subrogated to the extent of the payments or

distributions made to the holders of such Senior Debt pursuant to the

provisions of this Article 5 (equally and ratably with the holders of all

indebtedness of the Company which by its express terms is subordinated to other

indebtedness of the Company to

 

34

 

substantially the same extent as the Securities are

subordinated and is entitled to like rights of subrogation) to the rights of

the holders of Senior Debt to receive payments or distributions of cash,

property or securities of the Company applicable to the Senior Debt until the

principal of and interest (including Additional Amounts, if any) on the

Securities shall be paid in full in cash or other payment satisfactory to the

holders of Senior Debt; and, for the purposes of such subrogation, no payments

or distributions to the holders of the Senior Debt of any cash, property or

securities to which the Holders of the Securities or the Trustee would be

entitled except for the provisions of this Article 5, and no payment over

pursuant to the provisions of this Article 5, to or for the benefit of the

holders of Senior Debt by Holders of the Securities or the Trustee, shall, as

between the Company, its creditors other than holders of Senior Debt, and the

Holders of the Securities, be deemed to be a payment by the Company to or on

account of the Senior Debt; and no payments or distributions of cash, property

or securities to or for the benefit of the Holders of the Securities pursuant

to the subrogation provisions of this Article 5, which would otherwise have

been paid to the holders of Senior Debt shall be deemed to be a payment by the

Company to or for the account of the Securities.  It is understood that the provisions of this Article 5 are and

are intended solely for the purposes of defining the relative rights of the

Holders of the Securities, on the one hand, and the holders of the Senior Debt,

on the other hand.

 

Nothing contained in this Article 5 or elsewhere in this Indenture or

in the Securities is intended to or shall impair, as among the Company, its

creditors other than the holders of Senior Debt, and the Holders of the

Securities, the obligation of the Company, which is absolute and unconditional,

to pay to the Holders of the Securities the principal of and interest (including

Additional Amounts, if any) on the Securities as and when the same shall become

due and payable in accordance with their terms, or is intended to or shall

affect the relative rights of the Holders of the Securities and creditors of

the Company other than the holders of the Senior Debt, nor shall anything

herein or therein prevent the Trustee or the Holder of any Security from

exercising all remedies otherwise permitted by applicable law upon default

under this Indenture, subject to the rights, if any, under this Article 5 of

the holders of Senior Debt in respect of cash, property or securities of the

Company received upon the exercise of any such remedy.

 

Upon any payment or distribution of assets of the Company referred to

in this Article 5, the Trustee, subject to the provisions of Article 8, and the

Holders of the Securities shall be entitled to rely upon any order or decree

made by any court of competent jurisdiction in which such bankruptcy,

dissolution, winding-up, liquidation or reorganization proceedings are pending,

or a certificate of the receiver, trustee in bankruptcy, liquidating trustee,

agent or other Person making such payment or distribution, delivered to the

Trustee or to the Holders of the Securities, for the purpose of ascertaining

the Persons entitled to participate in such distribution, the holders of the

Senior Debt and other indebtedness of the Company, the amount thereof or

payable thereon and all other facts pertinent thereto or to this Article 5.

 

Section 5.4   Authorization

To Effect Subordination.  Each

Holder of a Security by the Holder’s acceptance thereof authorizes and directs

the Trustee on the Holder’s behalf to take such action as may be necessary or

appropriate to effectuate the subordination as provided in this Article 5 and

appoints the Trustee to act as the Holder’s attorney-in-fact for any and all

such purposes.  If the Trustee does not

file a proper proof of claim or proof of debt in the form required in any

proceeding referred to in Section 5.3 hereof at least 30 days before the

expiration

 

35

 

of the time to file such claim, the holders of any

Senior Debt or their representatives are hereby authorized to file an

appropriate claim for and on behalf of the Holders of the Securities.

 

Section 5.5   Notice To

Trustee.  The Company shall give

prompt written notice in the form of an Officers’ Certificate to a Responsible

Officer of the Trustee and to any Paying Agent of any fact known to the Company

which would prohibit the making of any payment of monies to or by the Trustee

or any Paying Agent in respect of the Securities pursuant to the provisions of

this Article 5. Notwithstanding the provisions of this Article 5 or any other

provision of this Indenture, the Trustee shall not be charged with knowledge of

the existence of any facts which would prohibit the making of any payment of

monies to or by the Trustee in respect of the Securities pursuant to the

provisions of this Article 5, unless and until a Responsible Officer of the

Trustee shall have received written notice thereof at the Corporate Trust

Office from the Company (in the form of an Officers’ Certificate) or a

Representative or a holder or holders of Senior Debt or from any trustee, agent

or other representative thereof; and before the receipt of any such written

notice, the Trustee, subject to the provisions of Article 8, shall be entitled

in all respects to assume that no such facts exist; provided that if on a date

not less than one Business Day prior to the date upon which by the terms hereof

any such monies may become payable for any purpose (including, without

limitation, the payment of the principal of, or premium, if any, or interest on

any Security) the Trustee shall not have received, with respect to such monies,

the notice provided for in this Section 5.5, then, anything herein contained to

the contrary notwithstanding, the Trustee shall have full power and authority

to receive such monies and to apply the same to the purpose for which they were

received, and shall not be affected by any notice to the contrary which may be

received by it on or after such prior date. Notwithstanding anything in this

Article 5 to the contrary, nothing shall prevent any payment by the Trustee to

the Holders of monies deposited with it pursuant to Section 9.1 during the

pendancy of a Payment Blockage Notice, and any such payment shall not be

subject to the provisions of Article 5.

 

The Trustee, subject to the provisions of Article 8, shall be entitled

to rely on the delivery to it of a written notice by a Representative or a

Person representing himself to be a holder of Senior Debt (or a trustee, agent

or other representative on behalf of such holder) to establish that such notice

has been given by a Representative or a holder of Senior Debt or a trustee,

agent or other representative on behalf of any such holder or holders. In the

event that the Trustee determines in good faith that further evidence is

required with respect to the right of any Person as a holder of Senior Debt to

participate in any payment or distribution pursuant to this Article 5, the

Trustee may request such Person to furnish evidence to the reasonable

satisfaction of the Trustee as to the amount of Senior Debt held by such

Person, the extent to which such Person is entitled to participate in such

payment or distribution and any other facts pertinent to the rights of such

Person under this Article 5, and if such evidence is not furnished the Trustee

may defer any payment to such Person pending judicial determination as to the

right of such Person to receive such payment.

 

Section 5.6   Trustee’s

Relation To Senior Debt.  The

Trustee in its individual capacity shall be entitled to all the rights set

forth in this Article 5 in respect of any Senior Debt at any time held by it,

to the same extent as any other holder of Senior Debt, and nothing in Article 8

or elsewhere in this Indenture shall deprive the Trustee of any of its rights

as such holder.

 

36

 

With respect to the holders of Senior Debt,

the Trustee undertakes to perform or to observe only such of its covenants and

obligations as are specifically set forth in this Article 5, and no implied

covenants or obligations with respect to the holders of Senior Debt shall be

read into this Indenture against the Trustee. 

The Trustee shall not be deemed to owe any fiduciary duty to the holders

of Senior Debt and, subject to the provisions of Article 8, the Trustee shall

not be liable to any holder of Senior Debt if it shall pay over or deliver to

Holders of Securities, the Company or any other Person money or assets to which

any holder of Senior Debt shall be entitled by virtue of this Article 5 or

otherwise provided that such pay over or delivery

occurs prior to first Business Day after the Trustee’s receipt of written

notice of any fact that would prohibit the making of such payment of monies or

delivery of assets to or by the Trustee in respect of the Securities pursuant

to the provisions of this Article 5.

 

Section 5.7   No Impairment

Of Subordination.  (a)  No right of any present or future holder of

any Senior Debt to enforce subordination as herein provided shall at any time

in any way be prejudiced or impaired by any act or failure to act on the part

of the Company or by any act or failure to act, in good faith, by any such

holder, or by any noncompliance by the Company with the terms, provisions and

covenants of this Indenture, regardless of any knowledge thereof which any such

holder may have or otherwise be charged with.

 

(b)           Without limiting the generality of Section 5.7(a), the

holders of Senior Debt may, at any time and from time to time, without the

consent of or notice to the Trustee or the Holders of the Securities, without

incurring responsibility to the Holders of the Securities and without impairing

or releasing the subordination provided in this Article 5 or the obligations

hereunder of the Holders of the Securities to the holders of Senior Debt, do

any one or more of the following:  (1)

change the manner, place or terms of payment or the amount of interest, fees or

other amounts payable, in respect of Senior Debt; (2) extend the time of

payment of, or renew, increase or otherwise alter, Senior Debt, or amend,

waive, or otherwise modify any terms of any instrument or agreement of any kind

evidencing, guaranteeing, securing or otherwise affecting or relating to Senior

Debt; (3) exchange, release, sell, fail to perfect any security interest or

other Lien on or otherwise deal with, any property pledged, mortgaged or

otherwise subject to a security interest or other Lien securing Senior Debt;

(4) release any guarantor or any other Person liable in any manner for the

payment or collection of Senior Debt; (5) exercise or fail to exercise any

right, power, privilege, or remedy in respect of Senior Debt or under any

instrument or agreement evidencing, guaranteeing, securing or otherwise

affecting or relating to Senior Debt; (6) give or fail to give any notice, or

take or fail to take any other action, required by law, by agreement or

otherwise to preserve the rights of any holder of Senior Debt or with respect

to any property pledged, mortgaged or otherwise subject to a security interest

or Lien securing Senior Debt; (7) perform or fail to perform any obligation of

the holder of Senior Debt under any instrument or agreement evidencing,

guaranteeing, securing or otherwise affecting or relating to Senior Debt; or

(8) take or fail to take any action that might otherwise constitute a defense

available to, or a discharge of, the Company or any guarantor or other Person

liable in respect of Senior Debt or the Trustee in respect of this Indenture;

provided, however, that in no event shall any such actions limit the right of

the Holders of the Securities to take any action to accelerate the maturity of

the Securities pursuant to Article 7 hereof or to pursue any rights or remedies

hereunder or under applicable laws if the taking of such action does not

otherwise violate the terms of this Indenture.

 

37

 

Section 5.8   Certain Conversions

Deemed Payment.  For the purposes of

this Article 5 only, (1) the issuance and delivery of junior

securities upon conversion of Securities in accordance with Article 11 shall

not be deemed to constitute a payment or distribution on account of the

principal of or interest on Securities or on account of the purchase or other

acquisition of Securities, and (2) the payment, issuance or delivery of

cash (except in satisfaction of fractional shares pursuant to Section 11.2),

property or securities (other than junior securities) upon conversion of a

Security shall be deemed to constitute payment on account of the principal of

such Security.  For the purposes of this

Section 5.8, the term “junior securities” means (a) shares of any stock of

any class of the Company, or (b) securities of the Company which are

subordinated in right of payment to all Senior Debt which may be outstanding at

the time of issuance or delivery of such securities to substantially the same

extent as, or to a greater extent than, the Securities are so subordinated as

provided in this Article.  Nothing

contained in this Article 5 or elsewhere in this Indenture or in the Securities

is intended to or shall impair, as among the Company, its creditors other than

holders of Senior Debt and the Holders, the right, which is absolute and

unconditional, of the Holder of any Security to convert such Security in

accordance with Article 11.

 

Section 5.9   Article Applicable

To Paying Agents.  If at any time

any Paying Agent other than the Trustee shall have been appointed by the

Company and be then acting hereunder, the term “Trustee” as used in this

Article shall (unless the context otherwise requires) be construed as extending

to and including such Paying Agent within its meaning as fully for all intents

and purposes as if such Paying Agent were named in this Article in addition to

or in place of the Trustee; provided, however, that the first paragraph of

Section 5.5 shall not apply to the Company or any Affiliate of the Company if

it or such Affiliate acts as Paying Agent.

 

Section 5.10  Senior Debt Entitled

To Rely.  The holders of Senior Debt

(including, without limitation, Designated Senior Debt) shall have the right to

rely upon this Article 5, and no amendment or modification of the provisions

contained herein (or in the definition of any defined term used in any of the

provisions of this Article 5) shall diminish the rights of such holders unless

such holders shall have agreed in writing thereto.

 

ARTICLE VI

 

SUCCESSOR

CORPORATION

 

Section 6.1   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 (1) the Company shall be the

continuing corporation or (2) the Person (if other than the Company) formed by

such consolidation or into which the Company is merged or the Person which

acquires by conveyance, transfer or lease all or substantially all of the

properties and assets of the Company substantially as an entirety (i) shall be

organized and validly existing under the laws of the United States or any State

thereof or the District of Columbia and (ii) shall expressly assume, by an

indenture supplemental hereto, executed and

 

38

 

delivered to the Trustee, in form reasonably satisfactory to the

Trustee, all of the obligations of the Company under the Securities and this

Indenture;

 

(b) immediately after giving effect to such

transaction, no Default or Event of Default, shall have occurred and be

continuing; and

 

(c) the Company shall have delivered to the

Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that

such consolidation, merger, conveyance, transfer or lease and, if a

supplemental indenture is required in connection with such transaction, such

supplemental indenture, comply with this Article 6 and that all conditions

precedent herein provided for relating to such transaction have been satisfied.

 

For purposes of the foregoing, the transfer

(by lease, assignment, sale or otherwise) of the properties and assets of one

or more Subsidiaries (other than to the Company or another Subsidiary), which,

if such assets were owned by the Company, would constitute all or substantially

all of the properties and assets of the Company, shall be deemed to be the

transfer of all or substantially all of the properties and assets of the Company.

 

The successor Person formed by such

consolidation or into which the Company is merged or the successor Person to

which such conveyance, transfer or lease 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 obligations

the Company may have under a supplemental indenture, the Company shall be discharged

from all obligations and covenants under this Indenture and the

Securities.  Subject to

Section 10.6, 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 VII

 

DEFAULTS AND REMEDIES

 

Section 7.1   Events of

Default.  Subject to Section 9.1, so

long as any Securities are outstanding, each of the following shall be an

“Event of Default”:

 

(1)  the

Company defaults in the payment of the principal amount on any Security when

the same becomes due and payable at its Stated Maturity, whether or not

prohibited by the provisions of Article 5;

 

(2) 

the Company defaults in its obligation to repurchase any Security, or

any portion thereof, upon the exercise by the Holder of such Holder’s right to

require the Company to purchase such Securities pursuant to and in accordance

with Section 3.7 hereof, whether or not prohibited by the provisions of

Article 5;

 

(3) 

the Company defaults in its obligation to redeem any Security, or any

portion thereof, called for redemption by the Company pursuant to and in

accordance with Section 3.1 hereof, whether or not prohibited by the

provisions of Article 5;

 

39

 

(4) 

the Company defaults in the payment of any accrued and unpaid interest,

including Additional Amounts, if any, on any Security, in each case when due

and payable, and continuance of such default for a period of 30 days, whether

or not prohibited by the provisions of Article 5;

 

(5) 

the Company fails to comply with any of its agreements or covenants in

the Securities or this Indenture (other than those referred to in clause (1)

through (4) above) and such failure continues for 60 days after receipt by the

Company of a Notice of Default;

 

(6)  a

default under any indebtedness for money borrowed by the Company or any

Significant Subsidiary in an aggregate outstanding principal amount of $15.0

million or more, for a period of 30 days after written notice of default

is given to the Company by the Trustee or to the Company and the Trustee by

Holders of not less than 25% in aggregate principal amount of the Securities

then outstanding, which default (A) is caused by the failure to pay principal

or interest when due on such indebtedness by the end of the applicable grace

period, if any, unless such indebtedness is discharged or (B) results in the

acceleration of such indebtedness, unless such acceleration is waived, cured,

rescinded or annulled or unless such indebtedness is discharged;

 

(7) 

the entry by a court having jurisdiction in the premises of (i) a decree

or order for relief in respect of the Company or any of its Subsidiaries that

is a Significant Subsidiary, in an involuntary case or proceeding under any

applicable bankruptcy, insolvency, reorganization or other similar law or (ii)

a decree or order adjudging the Company or any of its Subsidiaries that is a

Significant Subsidiary, as bankrupt or insolvent, or approving as properly

filed a petition seeking reorganization, arrangement, adjustment or composition

of or in respect of the Company or any of its Subsidiaries that is a

Significant Subsidiary, under any applicable law, or appointing a custodian,

receiver, liquidator, assignee, trustee, sequestrator or other similar official

of the Company or of any substantial part of its property, or ordering the

winding up or liquidation of its affairs, and the continuance of any such

decree or order for relief or any such other decree or order unstayed and in

effect for a period of 60 consecutive days; or

 

(8) 

the commencement by the Company or any of its Subsidiaries that is a

Significant Subsidiary, of a voluntary case or proceeding under any applicable

bankruptcy, insolvency, reorganization or other similar law or of any other

case or proceeding to be adjudicated a bankrupt or insolvent, or the consent by

the Company or any of its Subsidiaries that is a Significant Subsidiary, to the

entry of a decree or order for relief in respect of the Company or any of its

Subsidiaries that is a Significant Subsidiary, in an involuntary case or

proceeding under any applicable bankruptcy, insolvency, reorganization or other

similar law or to the commencement of any bankruptcy or insolvency case or

proceeding against the Company, or the filing by the Company or any of its

Subsidiaries that is a Significant Subsidiary, of a petition or answer or

consent seeking reorganization or relief under any applicable law, or the

consent by the Company to the filing of such petition or to the appointment of

or the taking possession by a custodian, receiver, liquidator, assignee,

trustee, sequestrator or other similar official of the Company or of any

substantial part of its property, or the making by the Company or any of its

Subsidiaries that is a Significant Subsidiary, of an assignment for the benefit

of creditors, or the admission by the Company or any of its Subsidiaries that

is a Significant Subsidiary, in writing of its inability to pay its debts

generally as they become due, or the taking of corporate action by

 

40

 

the Company or any of its Subsidiaries that is a Significant

Subsidiary, expressly in furtherance of any such action.

 

A Default under clause (5) above is not an

Event of Default until the Trustee notifies the Company, or the Holders of at

least 25% in aggregate principal amount of the Securities at the time

outstanding notify the Company and the Trustee, of the Default and the Company does

not cure such Default (and such Default is not waived) within the time

specified in clause (5) above after actual receipt of such notice. Any such

notice must specify the Default, demand that it be remedied and state that such

notice is a “Notice of Default.”

 

The Trustee shall, within 90 days of the

occurrence of a Default or Event of Default, give to the Holders of the

Securities notice of all uncured Defaults or Events of Default known to it, its

status and what action the Company is taking or proposes to take with respect

thereto; provided, however, the

Trustee shall be protected in withholding such notice if it, in good faith,

determines that the withholding of such notice is in the best interest of such

Holders, except in the case of a Default or Event of Default under clauses (1),

(2), (3) or (4) above.

 

Section 7.2   Acceleration.  If an Event of Default (other than an Event

of Default specified in Section 6.1(7) or (8) with respect to the Company)

occurs and is continuing (the Event of Default not having been cured or waived

as provided in Article 10 hereto), 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 amount plus accrued and unpaid interest, including Additional

Amounts, 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 6.1(7) or (8) occurs

(with respect to the Company) and is continuing, the principal amount plus

accrued and unpaid interest, including Additional Amounts, 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

Securityholders.  The Holders of a

majority in aggregate principal amount of the Securities at the time

outstanding, by notice to the Trustee (and without notice to any other Securityholder)

may rescind an acceleration and its consequences if the rescission would not

conflict with any judgment or decree and if all existing Events of Default have

been cured or waived except nonpayment of the principal amount plus accrued and

unpaid interest, including Additional Amounts, if any, that have become due

solely as a result of acceleration and if all amounts due to the Trustee under

Section 8.7 have been paid.  No

such rescission shall affect any subsequent Default or impair any right consequent

thereto.

 

Section 7.3   Other Remedies.  If an Event of Default occurs and is

continuing, the Trustee may pursue any available remedy to collect the payment

of the principal amount plus accrued and unpaid interest, including Additional

Amounts, 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 Securityholder 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

 

41

 

acquiescence in, the Event of Default.  No remedy is exclusive of any other

remedy.  All available remedies are

cumulative.

 

Section 7.4   Waiver of Past

Defaults.  The Holders of a majority

in aggregate principal amount of the Securities at the time outstanding, by

notice to the Trustee (and without notice to any other Securityholder), may

waive an existing Default and its consequences except (i) an Event of Default

described in Section 6.1(1), 6.1(2), 6.1(3) or 6.1(4), (ii) a Default in

respect of a provision that under Section 10.2 cannot be amended without

the consent of each Securityholder affected or (iii) a Default which

constitutes a failure to convert any Security in accordance with the terms of

Article 11.  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 7.4 shall be in lieu of Section 316(a)(1)(B) of

the TIA and such Section 316(a)(1)(B) is hereby expressly excluded from

this Indenture, as permitted by the TIA.

 

Section 7.5   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

unduly prejudicial to the rights of other Securityholders or would involve the

Trustee in personal liability unless the Trustee is offered indemnity

satisfactory to it.  This

Section 7.5 shall be in lieu of Section 316(a)(1)(A) of the TIA and

such Section 316(a)(1)(A) is hereby expressly excluded from this

Indenture, as permitted by the TIA.

 

Section 7.6   Limitation on Suits.  A Securityholder may not pursue any remedy

with respect to this Indenture or the Securities unless:

 

(1)                        the Holder

gives to the Trustee written notice stating that an Event of Default is

continuing;

 

(2)                        the

Holders of at least 25% in aggregate principal amount of the Securities at the

time outstanding make a written request to the Trustee to pursue the remedy;

 

(3)                         such

Holder or Holders offer to the Trustee security or indemnity satisfactory to

the Trustee against any loss, liability or expense;

 

(4)                        the

Trustee does not comply with the request within 60 days after receipt of such

notice, request and offer of security or indemnity; and

 

(5)                        the

Holders of a majority in aggregate principal amount of the Securities at the

time outstanding do not give the Trustee a direction inconsistent with the

request during such 60-day period.

 

A Securityholder may not use this Indenture

to prejudice the rights of any other Securityholder or to obtain a preference

or priority over any other Securityholder.

 

42

 

Section 7.7   Rights of Holders

to Receive Payment.  Notwithstanding

any other provision of this Indenture, the right of any Holder to receive

payment of the principal amount, Redemption Price, Change of Control Purchase

Price or interest, including Additional Amounts, if any, in respect of the

Securities held by such Holder, on or after the respective due dates expressed

in the Securities or any Redemption Date, and to convert the Securities in

accordance with Article 11, or to bring suit for the enforcement of any such

payment on or after such respective dates or the right to convert, shall not be

impaired or affected adversely without the consent of such Holder.

 

Section 7.8   Collection Suit

by Trustee.  If an Event of Default

described in Section 6.1(1), (2), (3) or (4) occurs and is continuing, the

Trustee may recover judgment in its own name and as trustee of an express trust

against the Company for the whole amount owing with respect to the Securities

and the amounts provided for in Section 8.7.

 

Section 7.9   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 amount, Redemption Price, Change of Control Purchase

Price or interest, including Additional Amounts, 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 amount,

Redemption Price, Change of Control Purchase Price, or interest, including

Additional Amounts, 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 8.7) 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 8.7.

 

Nothing herein contained shall be deemed to

authorize the Trustee to authorize or consent to or accept or adopt on behalf

of any Holder any plan of reorganization, arrangement, adjustment or

composition affecting the Securities or the rights of any Holder thereof, or to

authorize the Trustee to vote in respect of the claim of any Holder in any such

proceeding.

 

Section 7.10  Priorities.  If the Trustee collects any money pursuant

to this Article 7, it shall pay out the money in the following order:

 

43

 

FIRST: to the Trustee for amounts due under

Section 8.7;

 

SECOND: to Securityholders for amounts due

and unpaid on the Securities for the principal amount, Redemption Price,

Purchase Price, Change of Control Purchase Price or interest, including

Additional Amounts, 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 Securityholders pursuant to this

Section 7.10.  At least 15 days

before such record date, the Trustee shall mail to each Securityholder and the

Company a notice that states the record date, the payment date and the amount

to be paid.

 

Section 7.11  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 7.11 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 7.11

shall be in lieu of Section 315(e) of the TIA and such Section 315(e)

is hereby expressly excluded from this Indenture, as permitted by the TIA.

 

Section 7.12  Waiver of Stay,

Extension or Usury Laws.  The Company covenants (to the extent

that it may lawfully do so) that it will not at any time insist upon, or plead,

or in any manner whatsoever claim or take the benefit or advantage of, any stay

or extension law or any usury or other law wherever enacted, now or at any time

hereafter in force, which would prohibit or forgive the Company from paying all

or any portion of the principal amount, Redemption Price or Change of Control

Purchase Price in respect of Securities, or any interest, including Additional

Amounts, 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 will not hinder, delay or

impede the execution of any power herein granted to the Trustee, but will

suffer and permit the execution of every such power as though no such law had

been enacted.

 

ARTICLE VIII

 

TRUSTEE

 

Section 8.1   Duties of

Trustee.  (a)  If an Event of Default has occurred and is

continuing, the Trustee shall exercise the rights and powers vested in it by

this Indenture and use the same degree of care and skill in its exercise as a

prudent person would exercise or use under the circumstances in the conduct of

such person’s own affairs.

 

44

 

(b) 

Except during the continuance of an Event of Default:

 

(1)                        the

Trustee need perform only those duties that are specifically set forth in this

Indenture and no others; 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, but in the case of any such certificates or opinions

which by any provision hereof are specifically required to be furnished to the

Trustee, the Trustee shall examine the certificates and opinions to determine

whether or not they conform to the requirements of this Indenture, but need not

confirm or investigate the accuracy of mathematical calculations or other facts

stated therein.  This

Section 8.1(b) shall be in lieu of Section 315(a) of the TIA and such

Section 315(a) is hereby expressly excluded from this Indenture, as

permitted by the TIA.

 

(c)  The Trustee may not be relieved from liability for its own

negligent action, its own negligent failure to act or its own willful

misconduct, except that:

 

(1)                        this

Section (c) does not limit the effect of Section (b) of  this Section 8.1;

 

(2)                        the

Trustee shall not be liable for any error of judgment made in good faith by a

Responsible Officer unless it is proved that the Trustee was negligent in

ascertaining the pertinent facts; and

 

(3)                        the

Trustee shall not be liable with respect to any action it takes or omits to

take in good faith in accordance with a direction received by it pursuant to

Section 7.5.

 

Subparagraphs (c)(1), (2) and (3) shall be in

lieu of Sections 315(d)(1), 315(d)(2) and 315(d)(3) of the TIA and such

Sections 315(d)(1), 315(d)(2) and 315(d)(3) are hereby expressly excluded from

this Indenture, as permitted by the TIA.

 

(d) 

Every provision of this Indenture that in any way relates to the Trustee

is subject to paragraphs (a), (b), (c), (e) and (f) of this Section 8.1.

 

(e) 

The Trustee may refuse to perform any duty or exercise any right or

power or extend or risk its own funds or otherwise incur any financial

liability unless it receives indemnity satisfactory to it against any loss,

liability or expense.

 

(f) 

Money held by the Trustee in trust hereunder need not be segregated from

other funds except to the extent required by law.  The Trustee (acting in any capacity hereunder) shall be under no

liability for interest on any money received by it hereunder unless otherwise

agreed in writing with the Company.

 

45

 

Section 8.2   Rights of

Trustee.  Subject to its duties and

responsibilities under the TIA,

 

(a) 

the Trustee may conclusively rely and shall be protected in acting or

refraining from acting upon any resolution, certificate, statement, instrument,

opinion, report, notice, request, direction, consent, order, bond, debenture,

note, other evidence of indebtedness or other paper or document believed by it

to be genuine and to have been signed or presented by the proper party or

parties;

 

(b) 

whenever in the administration of this Indenture the Trustee shall deem

it desirable that a matter be proved or established prior to taking, suffering

or omitting any action hereunder, the Trustee (unless other evidence be herein

specifically prescribed) may, in the absence of bad faith on its part,

conclusively rely upon an Officers’ Certificate;

 

(c) 

the Trustee may execute any of the trusts or powers hereunder or perform

any duties hereunder either directly or by or through agents or attorneys and

the Trustee shall not be responsible for any misconduct or negligence on the

part of any agent or attorney appointed with due care by it hereunder;

 

(d) 

the Trustee shall not be liable for any action taken, suffered, or

omitted to be taken by it in good faith which it believes to be authorized or

within its rights or powers conferred under this Indenture;

 

(e) 

the Trustee may consult with counsel selected by it and any advice or

Opinion of Counsel shall be full and complete authorization and protection in

respect of any action taken or suffered or omitted by it hereunder in good

faith and in accordance with such advice or Opinion of Counsel;

 

(f) 

the Trustee shall be under no obligation to exercise any of the rights

or powers vested in it by this Indenture at the request, order or direction of

any of the Holders, pursuant to the provisions of this Indenture, unless such

Holders shall have offered to the Trustee security or indemnity satisfactory to

it against the costs, expenses and liabilities which may be incurred therein or

thereby;

 

(g) 

any request or direction of the Company mentioned herein shall be

sufficiently evidenced by a Company Request or Company Order and any resolution

of the Board of Directors may be sufficiently evidenced by a Board Resolution;

 

(h) 

the Trustee shall not be bound to make any investigation into the facts

or matters stated in any resolution, certificate, statement, instrument,

opinion, report, notice, request, direction, consent, order, bond, debenture,

note, other evidence of indebtedness or other paper or document, but the

Trustee, in its discretion, may make such further inquiry or investigation into

such facts or matters as it may see fit, and, if the Trustee shall determine to

make such further inquiry or investigation, it shall be entitled to examine the

books, records and premises of the Company, personally or by agent or attorney

at the sole cost of the Company and shall incur no liability or additional

liability of any kind by reason of such inquiry or investigation;

 

46

 

(i) 

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 Trust Office of the Trustee, and

such notice references the Securities and this Indenture;

 

(j) 

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 to each agent, custodian and other Person employed to act

hereunder; and

 

(k) 

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 8.3   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 its Affiliates with the

same rights it would have if it were not Trustee.  Any Paying Agent, Registrar, Conversion Agent or co-registrar may

do the same with like rights.  However,

the Trustee must comply with Sections 8.10 and 8.11.

 

Section 8.4   Trustee’s

Disclaimer.  The Trustee 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 or application of

the proceeds from the Securities, it shall not be responsible for any statement

in the registration statement for the Securities under the Securities Act or in

any offering document for the Securities, the Indenture or the Securities

(other than its certificate of authentication), or the determination as to

which beneficial owners are entitled to receive any notices hereunder.

 

Section 8.5   Notice of

Defaults.  If a Default occurs and

if it is known to the Trustee, the Trustee shall give to each Securityholder

notice of the Default within 90 days after it occurs or, if later, within 15

days after it is known to the Trustee, unless such Default shall have been

cured or waived before the giving of such notice.  Notwithstanding the preceding sentence, except in the case of a

Default described in Section 6.1(1), (2) (3) or (4), 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 interest of the

Securityholders.  The preceding sentence

shall be in lieu of the proviso to Section 315(b) of the TIA and such

proviso is hereby expressly excluded from this Indenture, as permitted by the

TIA.  The Trustee shall not be deemed to

have knowledge of a Default unless a Responsible Officer of the Trustee has

received written notice of such Default, which notice specifically references

this Indenture and the Securities.

 

Section 8.6   Reports by

Trustee to Holders.  Within 60 days

after each May 15 beginning with the May 15 following the date of this

Indenture, the Trustee shall mail to each

 

47

 

Securityholder a brief report

dated as of such May 15 that complies with TIA Section 313(a), if required

by such Section 313(a).  The

Trustee also shall comply with TIA Section 313(b).

 

A copy of each

report at the time of its mailing to Securityholders shall be filed with the

SEC and each securities exchange, if any, on which the Securities are listed.

The Company agrees to notify the Trustee promptly whenever the Securities

become listed on any securities exchange and of any delisting thereof.

 

Section

8.7   Compensation and Indemnity.  The Company agrees:

 

(a)  to pay to the Trustee from time to time such

compensation as the Company and the Trustee shall from time to time agree in

writing for all services rendered by it hereunder (which compensation shall not

be limited (to the extent permitted by law) by any provision of law in regard

to the compensation of a trustee of an express trust);

 

(b)  to reimburse the Trustee upon its request

for all reasonable expenses, disbursements and advances incurred or made by the

Trustee in accordance with any provision of this Indenture (including the

reasonable compensation and the expenses, advances and disbursements of  its agents and counsel), except any such

expense, disbursement or advance as may be attributable to its negligence or

bad faith; and

 

(c)  to indemnify the Trustee or any predecessor

Trustee and their agents for, and to hold them harmless against, any loss,

damage, claim, liability, cost or expense (including attorney’s fees and

expenses, and taxes (other than taxes based upon, measured by or determined by

the income of the Trustee and any and all franchise taxes of the Trustee))

incurred without negligence or bad faith on its part, arising out of or in

connection with the acceptance or administration of this trust, including the

costs and expenses of defending itself against any claim (whether asserted by

the Company or any Holder or any other Person) or liability in connection with

the exercise or performance of any of its powers or duties hereunder.

 

To secure the

Company’s payment obligations in this Section 8.7, the Trustee shall have

a lien prior to the Securities on all money or property held or collected by

the Trustee, except that held in trust to pay the principal amount, Redemption

Price, Change of Control Purchase Price or interest, including Additional Amounts,

if any, as the case may be, on particular Securities.

 

The Company’s

payment obligations pursuant to this Section 8.7 shall survive the

discharge of this Indenture and the resignation or removal of the Trustee.  When the Trustee incurs expenses after the

occurrence of a Default specified in Section 7.1(6) or (7), the expenses

including the reasonable charges and expenses of its counsel, are intended to

constitute expenses of administration under any bankruptcy law.

 

Section

8.8   Replacement of Trustee.  The Trustee may resign by so notifying the

Company; provided, however, no such resignation shall be effective until a

successor Trustee has accepted its appointment pursuant to this

Section 8.8.  The Holders of a

majority in aggregate principal amount of the Securities at the time

outstanding may remove the Trustee by so notifying the Trustee and the Company.

The Company shall remove the Trustee if:

 

48

 

 

(1) the

Trustee fails to comply with Section 8.10;

 

(2) the

Trustee is adjudged bankrupt or insolvent; 

 

(3) a receiver

or public officer takes charge of the Trustee or its property; or

 

(4) the

Trustee otherwise becomes incapable of acting.

 

If the Trustee

resigns or is removed or if a vacancy exists in the office of Trustee for any

reason, the Company shall promptly appoint, by resolution of its Board of

Directors, a successor Trustee.

 

A successor

Trustee shall deliver a written acceptance of its appointment to the retiring

Trustee and to the Company satisfactory in form and substance to the retiring

Trustee and the Company. Thereupon the resignation or removal of the retiring

Trustee shall become effective, and the successor Trustee shall have all the

rights, powers and duties of the Trustee under this Indenture.  The successor Trustee shall mail a notice of

its succession to Securityholders.  The

retiring Trustee shall promptly transfer all property held by it as Trustee to

the successor Trustee, subject to the lien provided for in Section 8.7.

 

If a successor

Trustee does not take office within 30 days after the retiring Trustee resigns

or is removed, the retiring Trustee, the Company or the Holders of a majority

in aggregate principal amount of the Securities at the time outstanding may

petition any court of competent jurisdiction at the expense of the Company for

the appointment of a successor Trustee.

 

If the Trustee

fails to comply with Section 8.10, any Securityholder may petition any

court of competent jurisdiction for the removal of the Trustee and the

appointment of a successor Trustee.

 

Section

8.9    Successor Trustee by Merger.  If the Trustee consolidates with, merges or

converts into, or transfers all or substantially all its corporate trust

business or assets to, another corporation, the resulting, surviving or

transferee corporation without any further act shall be the successor Trustee.

 

Section

8.10  Eligibility; Disqualification.  The Trustee shall at all times satisfy the

requirements of TIA Sections 310(a)(1) and 310(b).  The Trustee (or its parent holding company) shall have a combined

capital and surplus of at least $50,000,000 as set forth in its most recent

published annual report of condition. Nothing herein contained shall prevent

the Trustee from filing with the Commission the application referred to in the

penultimate paragraph of TIA Section 310(b).

 

Section

8.11  Preferential Collection of

Claims Against Company.  The Trustee shall comply with TIA Section 311(a), excluding

any creditor relationship listed in TIA Section 311(b).  A Trustee who has resigned or been removed

shall be subject to TIA Section 311(a) to the extent indicated therein.

 

49

 

ARTICLE IX

 

DISCHARGE OF INDENTURE

 

Section

9.1   Discharge of Liability on

Securities. 

If (i) the Company delivers to the Trustee all outstanding Securities

(other than Securities replaced or repaid pursuant to Section 2.7) for

cancellation, (ii) all outstanding Securities shall become due and payable

within one year or (iii) all outstanding Securities are scheduled for

redemption within one year, and, in each case, the Company deposits with the

Trustee cash sufficient to pay all amounts due and owing on all outstanding

Securities (other than Securities replaced pursuant to Section 2.7), and

if in each case the Company pays all other sums payable hereunder by the

Company, then this Indenture shall, subject to Section 8.7, 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

9.2   Repayment to the Company.  The Trustee and the Paying Agent shall

return to the Company upon written request any money 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 money 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 Securityholders with respect to such money or securities for

that period commencing after the return thereof.

 

ARTICLE X

 

AMENDMENTS

 

Section

10.1   Without Consent of Holders.  The Company and the Trustee may amend,

modify or supplement this Indenture or the Securities without the consent of

any Securityholder to:

 

(a) add to the

covenants of the Company for the benefit of the Holders of Securities;

 

(b) surrender

any right or power herein conferred upon the Company;

 

(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 obligations to the Holders of Securities in

the case of a merger, consolidation, conveyance, transfer or lease pursuant to

Article 6 hereof;

 

50

 

(e) reduce the

Conversion Price; provided, however,

that such reduction in the Conversion Price shall not adversely affect the

interests of the Holders of Securities (after taking into account tax and other

consequences of such reduction);

 

(f) comply

with the requirements of the SEC in order to effect or maintain the

qualification of this Indenture under the TIA;

 

(g) cure any

ambiguity, to correct or supplement any provision herein which may be

inconsistent with any other provision herein or which is otherwise defective; provided,

however, that such action pursuant to this clause (g) does not, in

the good faith opinion of the Board of Directors of the Company (as evidenced

by a Board Resolution), adversely affect the interests of the Holders of

Securities in any material respect; and

 

(h) 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

that will not, in the good faith opinion of the Board of Directors of the

Company (as evidenced by a Board Resolution), adversely affect the interests of

the Holders of Securities.

 

Section

10.2   With Consent of Holders.  Except as provided below in this

Section 10.2, this Indenture or the Securities may be amended, modified or

supplemented, and noncompliance in any particular instance with any provision

of this Indenture or the Securities may be waived, in each case with the

written consent of the Holders of at least a majority of the principal amount

of the Securities at the time outstanding.

 

Without the

written consent or the affirmative vote of each Holder of Securities affected

thereby, an amendment or waiver under this Section 10.2 may not:

 

(a) change the

maturity of the principal amount of, or the date any installment of interest,

including Additional Amounts, is due on, any Security;

 

(b) reduce the

principal amount of, or interest, including Additional Amounts payable on, or

the Redemption Price or Change of Control Purchase Price of, any Security;

 

(c) change the

currency of any amount owed or owing under the Security or any interest thereon

from U.S. Dollars;

 

(d) impair the

right of any Holder to institute suit for the enforcement of any payment or

with respect to, or conversion of, any Security;

 

(e) modify the

obligation of the Company to maintain an office or agency in The City of New

York pursuant to Section 4.5;

 

(f) except as

otherwise permitted or contemplated by the provisions of this Indenture,

adversely affect the repurchase right of the Holders of the Securities as

provided in Article 3 or the right of the Holders of the Securities to convert

any Security as provided in Article 11;

 

51

 

(g) modify the

provisions of Article 3 in a manner adverse to the Holders of the Securities;

 

(h) modify the

provisions of Article 5 in a manner adverse to the Holders of the Securities;

 

(i) modify any

of the provisions of this Section 10.2, or reduce the principal amount of

outstanding Securities required to waive a default, except to provide that

certain other provisions of this Indenture cannot be modified or waived without

the consent of the Holder of each outstanding Security affected thereby; or

 

(j) reduce the

percentage of the principal amount of the outstanding Securities the consent of

whose Holders is required for any such supplemental indenture or the consent of

whose Holders is required for any waiver provided for in this Indenture.

 

It shall not

be necessary for the consent of the Holders under this Section 10.2 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 10.2 becomes effective, the Company shall

mail to each Holder a notice briefly describing the amendment.

 

Nothing in

this Section 10.2 shall impair the ability of the Company and the Trustee to

amend this Indenture or the Securities without the consent of any

Securityholder to provide for the assumption of the Company’s obligations to

the Holders of Securities in the case of a merger, consolidation, conveyance,

transfer or lease pursuant to Article 6 hereof.

 

Section

10.3.   Compliance with Trust

Indenture Act. 

Every supplemental indenture executed pursuant to this Article shall

comply with the TIA.

 

Section

10.4.  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

Securityholder.

 

Section

10.5.   Notation on or Exchange of

Securities. 

Securities authenticated and delivered after the execution of any

supplemental indenture pursuant to this Article 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.

 

52

 

Section

10.6.   Trustee to Sign Supplemental

Indentures. 

The Trustee shall sign any supplemental indenture authorized pursuant to

this Article 10 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 (subject to

the provisions of Section 8.1) 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

10.7.   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.

 

ARTICLE XI

 

CONVERSIONS

 

Section 11.1.   Conversion

Privilege. 

(a)  Subject to and upon

compliance with the provisions of this Article 11, 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 or an integral multiple of $1,000) of such

Security into shares of Common Stock at the Conversion Price in effect on the

date of conversion, at any time prior to the close of business on the Business

Day prior to the Stated Maturity of the Securities.

 

Section

11.2.   Conversion Procedure;

Conversion Price; Fractional Shares.  (a) Each Security shall be convertible at

the office of the Conversion Agent into fully paid and nonassessable shares

(calculated to the nearest 1/100th of a share) of Common Stock.  The Security will be converted into shares

of Common Stock at the Conversion Price therefor.  No payment or adjustment shall be made in respect of dividends on

the Common Stock or accrued interest on a converted Security, except as

described in Section 11.9 hereof. 

The Company shall not issue any fraction of a share of Common Stock in

connection with any conversion of Securities, but instead shall, subject to

Section 11.3(h) hereof, make a cash payment (calculated to the nearest

cent) equal to such fraction multiplied by the Sale Price of the Common Stock

on the last Trading Day prior to the date of conversion.  Notwithstanding the foregoing, a Security in

respect of which a Holder has delivered a Change of Control Purchase Notice

exercising such Holder’s option to require the Company to repurchase such

Security may be converted only if such notice of exercise is withdrawn in

accordance with the Section 3.8 hereof.

 

(b) Before any

Holder of a Security shall be entitled to convert the same into Common Stock,

such Holder shall, in the case of Global Securities, comply with the 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 that such Holder elects to convert the same

and shall state in writing therein the principal amount of Securities to be

converted and the name or names (with addresses) in which such Holder wishes

the certificate or certificates for Common Stock to be issued.

 

53

 

Before any

such conversion, a Holder also shall pay all funds required, if any, relating

to interest on the Securities, as provided in Section 11.9, and all taxes

or duties, if any, as provided in Section 11.8.

 

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 which 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.  Subject to the

next succeeding sentence, the Company will, as soon as practicable thereafter,

issue and deliver at said office or place to such Holder of a Security, or to

such Holder’s nominee or nominees, certificates for the number of full shares

of Common Stock to which such Holder shall be entitled as aforesaid, together

with cash in lieu of any fraction of a share to which such Holder would

otherwise be entitled.  The Company

shall not be required to deliver certificates for shares of Common Stock while

the stock transfer books for such stock or the security register are duly

closed for any purpose, but certificates for shares of Common Stock shall be

issued and delivered as soon as practicable after the opening of such books or

security register.

 

(c) A Security

shall be deemed to have been converted as of the close of business on the date

of the surrender of such Securities for conversion as provided above, and the

Person or Persons entitled to receive the Common Stock issuable upon such

conversion shall be treated for all purposes as the record Holder or Holders of

such Common Stock as of the close of business on such date.

 

(d) In case

any 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 11.8 hereof), a new Security

or Securities in authorized denominations in an aggregate principal amount

equal to the unconverted portion of the surrendered Securities.

 

Section

11.3.   Adjustment of Conversion

Price.  The

Conversion Price shall be adjusted from time to time as follows:

 

(a) In case

the Company shall, at any time or from time to time while any of the Securities

are outstanding, pay a dividend or make a distribution in shares of Common

Stock to all holders of its outstanding shares of Common Stock, then the

Conversion Price in effect at the opening of business on the date following the

record date fixed for the determination of stockholders entitled to receive

such dividend or other distribution shall be reduced by multiplying such

Conversion Price by a fraction:

 

(1)           the numerator of

which shall be the number of shares of Common Stock outstanding at the close of

business on the Record Date fixed for such determination; and

 

(2)           the denominator of

which shall be the sum of such number of shares and the total number of shares

constituting such dividend or other distribution.

 

Such reduction

shall become effective immediately after the opening of business on the day

following the Record Date fixed for such determination.  If any dividend or distribution of the type

described in this Section 11.3(a) is declared but not so paid or made, the

 

54

 

Conversion Price shall again be

adjusted to the Conversion Price which would then be in effect if such dividend

or distribution had not been declared.

 

(b) In case

the Company shall, at any time or from time to time while any of the Securities

are outstanding, subdivide its outstanding shares of Common Stock into a

greater number of shares of Common Stock, then the Conversion Price in effect

at the opening of business on the day following the day upon which such

subdivision becomes effective shall be proportionately reduced, and conversely,

in case the Company shall, at any time or from time to time while any of the Securities

are outstanding, combine its outstanding shares of Common Stock into a smaller

number of shares of Common Stock, then the Conversion Price in effect at the

opening of business on the day following the day upon which such combination

becomes effective shall be proportionately increased.

 

Such reduction

or increase, as the case may be, shall become effective immediately after the

opening of business on the day following the day upon which such subdivision or

combination becomes effective.

 

(c) In case

the Company shall, at any time or from time to time while any of the Securities

are outstanding, issue rights or warrants (other

than any rights or warrants referred to in Section 11.3(d)) to all

holders of its shares of Common Stock entitling them to subscribe for or

purchase shares of Common Stock (or securities convertible into shares of

Common Stock) at a price per share (or

having a conversion price per share) less than the Sale Price on the

Business Day immediately preceding the date of the announcement of such

issuance (treating the conversion price per share of the securities convertible

into Common Stock as equal to (x) the sum of (i) the price for a unit of the

security convertible into Common Stock and (ii) any additional consideration

initially payable upon the conversion of such security into Common Stock

divided by (y) the number of shares of Common Stock initially underlying such

convertible security), then the Conversion Price shall be adjusted so that the

same shall equal the price determined by multiplying the Conversion Price in

effect at the opening of business on the date after such date of announcement

by a fraction:

 

(1)           the numerator of

which shall be the number of shares of Common Stock outstanding on the close of

business on the date of announcement, plus the number of shares or securities

which the aggregate offering price of the total number of shares or securities

so offered for subscription or purchase (or the aggregate conversion price of

the convertible securities so offered) would purchase at such Sale Price of the

Common Stock; and

 

(2)           the denominator of

which shall be the number of  shares of

Common Stock outstanding at the close of business on the date of announcement,

plus the total number of additional shares of Common Stock so offered for

subscription or purchase (or into which the convertible securities so offered

are convertible).

 

Such

adjustment shall become effective immediately after the opening of business on

the day following the date of announcement of such issuance.  To the extent that shares of Common Stock

(or securities convertible into shares of Common Stock) are not delivered

pursuant to such rights or warrants, upon the expiration or termination of such

rights or warrants,

 

55

 

the Conversion Price shall be

readjusted to the Conversion Price which would then be in effect had the

adjustments made upon the issuance of such rights or warrants been made on the

basis of the delivery of only the number of shares of Common Stock (or

securities convertible into shares of Common Stock) actually delivered.  In the event that such rights or warrants

are not so issued, the Conversion Price shall again be adjusted to be the

Conversion Price which would then be in effect if the date fixed for the

determination of stockholders entitled to receive such rights or warrants had

not been fixed.  In determining whether

any rights or warrants entitle the holders to subscribe for or purchase shares

of Common Stock at less than such Sale Price, and in determining the aggregate

offering price of such shares of Common Stock, there shall be taken into

account any consideration received for such rights or warrants, the value of

such consideration if other than cash, to be determined by the Board of

Directors.

 

(d) In case

the Company shall, at any time or from time to time while any of the Securities

are outstanding, by dividend or otherwise, distribute to all holders of its

shares of Common Stock (including any such distribution made in connection with

a consolidation or merger in which the Company is the continuing corporation

and the Common Stock is not changed or exchanged), cash, shares of its capital

stock (other than any dividends or distributions to which Section 11.3(a)

applies), evidences of its Indebtedness or other assets, including securities,

but excluding (i) any rights or warrants referred to in Section 11.3(c),

(ii) dividends or distributions of stock, securities or other property or

assets (including cash) in connection with a reclassification, change, merger,

consolidation, statutory share exchange, combination, sale or conveyance to

which Section 11.4 applies and (iii) dividends and distributions paid

exclusively in cash (such capital stock, evidence of its indebtedness, cash,

other assets or securities being distributed hereinafter in this

Section 11.3(d) called the “distributed assets”), then, in each such case,

subject to the third and fourth succeeding paragraphs and the last

Section of this Section 11.3(d), the Conversion Price shall be

reduced so that the same shall be equal to the price determined by multiplying

the Conversion Price in effect immediately prior to the close of business on

the Record Date with respect to such distribution by a fraction:

 

(1)           the numerator of

which shall be the Current Market Price of the Common Stock, less the Fair

Market Value on such date of the portion of the distributed assets so

distributed applicable to one share of Common Stock (determined on the basis of

the number of shares of Common Stock outstanding on the record date)(determined

as provided in Section 11.3(g)) on such date; and

 

(2)           the denominator of which shall be

such Current Market Price.

 

Such reduction shall become

effective immediately prior to the opening of business on the day following the

Record Date for such distribution.  In

the event that such dividend or distribution is not so paid or made, the

Conversion Price shall again be adjusted to be the Conversion Price which would

then be in effect if such dividend or distribution had not been declared.

 

If the Board

of Directors determines the Fair Market Value of any distribution for purposes

of this Section 11.3(d) by reference to the actual or when issued trading

market for any distributed assets comprising all or part of such distribution,

it must in doing so consider the prices in such market over the same period

(the “Reference Period”) used in computing the Current Market Price pursuant to

Section 11.3(g) to the extent possible, unless the Board of 

 

56

 

Directors determines in good

faith that determining the Fair Market Value during the Reference Period would

not be in the best interest of the Holders.

 

In the event

any such distribution consists of shares of capital stock of, or similar equity

interests in, one or more of the Company’s Subsidiaries (a “Spin-Off”), the

Fair Market Value of the securities to be distributed shall equal the average

of the closing sale prices of such securities on the principal securities market

on which such securities are traded for the five consecutive Trading Days

commencing on and including the sixth day of trading of those securities after

the effectiveness of the Spin-Off, and the Current Market Price shall be

measured for the same period.  In the

event, however, that an underwritten initial public offering of the securities

in the Spin-Off occurs simultaneously with the Spin-Off, Fair Market Value of

the securities distributed in the Spin-Off shall mean the initial public

offering price of such securities and the Current Market Price shall mean the

Sale Price for the Common Stock on the same Trading Day.

 

Rights or

warrants distributed by the Company to all holders of its shares of Common

Stock entitling them to subscribe for or purchase shares of the Company’s

capital stock (either initially or under certain circumstances), which rights

or warrants, until the occurrence of a specified event or events (“Trigger

Event”), (i) are deemed to be transferred with such shares of Common Stock,

(ii) are not exercisable and (iii) are also issued in respect of future

issuances of shares of Common Stock shall be deemed not to have been

distributed for purposes of this Section 11.3(d) (and no adjustment to the

Conversion Price under this Section 11.3(d) will be required) until the

occurrence of the earliest Trigger Event. 

If such right or warrant is subject to subsequent events, upon the

occurrence of which such right or warrant shall become exercisable to purchase

different distributed assets, evidences of indebtedness or other assets, or

entitle the holder to purchase a different number or amount of the foregoing or

to purchase any of the foregoing at a different purchase price, then the

occurrence of each such event shall be deemed to be the date of issuance and

record date with respect to a new right or warrant (and a termination or

expiration of the existing right or warrant without exercise by the holder

thereof).  In addition, in the event of

any distribution (or deemed distribution) of rights or warrants, or any Trigger

Event or other event (of the type described in the preceding sentence) with

respect thereto, that resulted in an adjustment to the Conversion Price under

this Section 11.3(d):

 

(1)           in the case of any

such rights or warrants which shall all have been redeemed or repurchased

without exercise by any holders thereof, the Conversion Price shall be

readjusted upon such final redemption or repurchase to give effect to such

distribution or Trigger Event, as the case may be, as though it were a cash

distribution, equal to the per share redemption or repurchase price received by

a holder of shares of Common Stock with respect to such rights or warrants

(assuming such holder had retained such rights or warrants), made to all

holders of shares of Common Stock as of the date of such redemption or

repurchase; and

 

(2)           in the case of such

rights or warrants which shall have expired or been terminated without

exercise, the Conversion Price shall be readjusted as if such rights and

warrants had never been issued.

 

57

 

For purposes

of this Section 11.3(d) and Sections 11.3(a), 11.3(b) and 11.3(c), any

dividend or distribution to which this Section 11.3(d) is applicable that

also includes (i) shares of Common Stock, (ii) a subdivision or combination of

shares of Common Stock to which Section 11.3(b) applies or (iii) rights or

warrants to subscribe for or purchase shares of Common Stock to which

Section 11.3(c) applies (or any combination thereof), shall be deemed

instead to be:

 

(1)           a dividend or

distribution of the evidences of indebtedness, assets, shares of capital stock,

rights or warrants, other than such shares of Common Stock, such subdivision or

combination or such rights or warrants to which Sections 11.3(a), 11.3(b) and

11.3(c) apply, respectively (and any Conversion Price reduction required by

this Section 11.3(d) with respect to such dividend or distribution shall

then be made), immediately followed by

 

(2)           a dividend or

distribution of such shares of Common Stock, such subdivision or combination or

such rights or warrants (and any further Conversion Price reduction required by

Sections 11.3(a), 11.3(b) and 11.3(c) with respect to such dividend or

distribution shall then be made), except:

 

(A)          the Record Date of

such dividend or distribution shall be substituted as (i) “the date fixed for

the determination of stockholders entitled to receive such dividend or other

distribution,” “Record Date fixed for such determinations” and “Record Date”

within the meaning of Section 11.3(a), (ii) “the day upon which such

subdivision becomes effective” and “the day upon which such combination becomes

effective” within the meaning of Section 11.3(b), and (iii) as “the date

fixed for the determination of stockholders entitled to receive such rights or

warrants,” “the Record Date fixed for the determination of the stockholders

entitled to receive such rights or warrants” and such “Record Date” within the

meaning of Section 11.3(c); and

 

(B)           any shares of Common

Stock included in such dividend or distribution shall not be deemed

“outstanding at the close of business on the date fixed for such determination”

within the meaning of Section 11.3(a) and any reduction or increase in the

number of shares of Common Stock resulting from such subdivision or combination

shall be disregarded in connection with such dividend or distribution.

 

In the event

of any distribution referred to in this Section 11.3(d) in which (1) the

Fair Market Value (as determined by the Board of Directors) of such

distribution applicable to one share of Common Stock (determined as provided

above) equals or exceeds the average of the Sale Prices of the Common Stock

over the ten consecutive Trading Day period ending on the Record Date for such

distribution or (2) the average of the Sale Prices of the Common Stock over the

ten consecutive Trading Day period ending on the Record Date for such

distribution exceeds the Fair Market Value of such distribution by less than

$1.00, then, in each such case, in lieu of an adjustment to the Conversion

Price, adequate provision shall be made so that each Holder shall have the

right to receive upon conversion of a Security, in addition to shares of Common

Stock, the kind and amount of such distribution such Holder would have received

had 

 

58

 

such Holder converted such

Security immediately prior to the Record Date for determining the shareholders

entitled to receive the distribution.

 

In the event of any distribution referred to in Section 11.3(c) or

11.3(d), where, in the case of a distribution described in

Section 11.3(d), the Fair Market Value of such distribution per share of

Common Stock (as determined by the Board of Directors) exceeds 10% of the Sale

Price of a share of Common Stock on the Business Day immediately preceding the

declaration date for such distribution, then, if such distribution would also

trigger a conversion right under Section 11.1(b) or the Securities are

otherwise convertible pursuant to this Article 11, the Company will be required

to give notice to the Holders of Securities at least 20 days prior to the

Ex-Dividend Time for the distribution and, upon the giving of notice, the

Securities may be surrendered for conversion at any time on and after the date

that the Company gives notice to the Holders of such conversion right, until

the close of business on the Business Day prior to the Ex-Dividend Time or the

Company announces that such distribution will not take place. No adjustment to

the Conversion Price or the ability of a Holder of a Security to convert will

be made if the Holder will otherwise participate in such distribution without

conversion.

 

(e) In case

the Company shall, at any time or from time to time while any of the Securities

are outstanding, by dividend or otherwise, distribute to all holders of its

shares of Common Stock, cash (excluding any cash that is distributed upon a

reclassification, change, merger, consolidation, statutory share exchange,

combination, sale or conveyance to which Section 11.4 applies or as part

of a distribution referred to in Section 11.3(d)), in an aggregate amount

that, combined together with:

 

(1)           the aggregate amount

of any other such distributions to all holders of shares of Common Stock made

exclusively in cash within the 12 months preceding the date of payment of such

distribution, and in respect of which no adjustment pursuant to this

Section 11.3(e) has been made; and

 

(2)           the aggregate amount

of any cash, plus the Fair Market Value (as determined by the Board of

Directors) of consideration payable in respect of any tender or exchange offer

by the Company or any of its Subsidiaries for all or any portion of the shares

of Common Stock concluded within the 12 months preceding the date of such

distribution, and in respect of which no adjustment pursuant to

Section 11.3(f) has been made;

 

exceeds 10% of the product of

the Current Market Price of the Common Stock on the Record Date with respect to

such distribution, times the number of shares of Common Stock outstanding on

such date, then, and in each such case, immediately after the close of business

on such date, the Conversion Price shall be reduced so that the same shall

equal the price determined by multiplying the Conversion Price in effect

immediately prior to the close of business on such Record Date by a fraction:

 

(1)           the numerator of

which shall be equal to the Current Market Price on the Record Date, less an

amount equal to the quotient of (x) the excess of such combined amount over

such 10% and (y) the number of shares of Common Stock outstanding on the Record

Date; and

 

59

 

(2)           the denominator of which shall be

equal to the Current Market Price on such date.

 

However, in

the event that the then Fair Market Value (as so determined) of the portion of

cash and other securities, if any, so distributed applicable to one share of

Common Stock is equal to or greater than the Current Market Price on the Record

Date, in lieu of the foregoing adjustment, adequate provision shall be made so

that each Holder shall have the right to receive upon conversion of a Security

(or any portion thereof) the amount of cash in excess of such 10% such Holder

would have received had such Holder converted such Security (or portion

thereof) immediately prior to such Record Date.  In the event that such dividend or distribution is not so paid or

made, the Conversion Price shall again be adjusted to be the Conversion Price

which would then be in effect if such dividend or distribution had not been

declared.

 

(f) In case a

tender or exchange offer made by the Company or any of its Subsidiaries for all

or any portion of the shares of Common Stock shall expire and such tender offer

(as amended upon the expiration thereof) shall require the payment to

stockholders (based on the acceptance (up to any maximum specified in the terms

of the tender offer) of shares tendered) of an aggregate consideration having a

Fair Market Value (as determined by the Board of Directors) that combined

together with:

 

(1)           the aggregate amount

of the cash, plus the Fair Market Value (as determined by the Board of

Directors), as of the expiration of such tender or exchange offer, of

consideration payable in respect of any other tender offers, by the Company or

any of its Subsidiaries for all or any portion of the shares of Common Stock

expiring within the 12 months preceding the expiration of such tender offer and

in respect of which no adjustment pursuant to this Section 11.3(f) has

been made; and

 

(2)           the aggregate amount

of any distributions to all holders of shares of Common Stock made exclusively

in cash within 12 months preceding the expiration of such tender offer and in

respect of which no adjustment pursuant to Section 11.3(e) has been made; 

 

exceeds 10% of the product of

the Current Market Price of the Common Stock as of the last time (the

“Expiration Time”) tenders could have been made pursuant to such tender or

exchange offer (as it may be amended), times the number of shares of Common

Stock outstanding (including any tendered shares) on the Expiration Time (such

excess, the “Excess Amount”), then, and in each such case, immediately prior to

the opening of business on the day after the date of the Expiration Time, the

Conversion Price shall be adjusted so that the same shall equal the price

determined by multiplying the Conversion Price in effect immediately prior to

the close of business on the date of the Expiration Time by a fraction:

 

(1)           the numerator of

which shall be (x) the product of (i) the number of shares of Common Stock

outstanding (including any tendered shares) at the Expiration Time and (ii) the

Current Market Price of the Common Stock at the Expiration Time, less (y) the

Excess Amount; and

 

60

 

(2)           the denominator

shall be the product of the number of shares of Common Stock outstanding

(including any tendered shares) at the Expiration Time and the Current Market

Price of the Common Stock at the Expiration Time.

 

Such reduction

(if any) shall become effective immediately prior to the opening of business on

the day following the Expiration Time. 

In the event that the Company is obligated to purchase shares pursuant

to any such tender or exchange offer, but the Company is permanently prevented

by applicable law from effecting any such purchases or all or a portion of such

purchases are rescinded, the Conversion Price shall again be adjusted to be the

Conversion Price which would then be in effect if such (or such portion of the)

tender offer had not been made.  If the

application of this Section 11.3(f) to any tender offer would result in an

increase in the Conversion Price, no adjustment shall be made for such tender

offer under this Section 11.3(f).

 

Pursuant to

rights issued under the Company’s preferred share purchase rights plan, if

holders of the Securities exercising the right of conversion attaching after

the date the rights separate from the underlying Common Stock are not entitled

to receive the rights that would otherwise be attributable to the shares of

Common Stock received upon conversion, the Conversion Price will be adjusted as

though the rights were being distributed to holders of Common Stock on the date

of such separation.  If such an adjustment

is made and the rights are later redeemed, invalidated or terminated, then a

corresponding reversing adjustment will be made to the conversion price on an

equitable basis.

 

(g) For

purposes of this Article 11, the following terms shall have the meanings

indicated:

 

“Current

Market Price” on any date means the average of the daily Sale Prices per share

of Common Stock for the ten consecutive Trading Days immediately prior to such

date; provided, however, that if:

 

(1)           the “ex” date (as

hereinafter defined) for any event (other than the issuance or distribution

requiring such computation) that requires an adjustment to the Conversion Price

pursuant to Section 10.3(a), (b), (c), (d), (e) or (f) occurs during such

ten consecutive Trading Days, the Sale Price for each Trading Day prior to the

“ex” date for such other event shall be adjusted by dividing such Sale Price by

the same fraction by which the Conversion Price is so required to be adjusted

as a result of such other event;

 

(2)           the “ex” date for

any event (other than the issuance or distribution requiring such computation)

that requires an adjustment to the Conversion Price pursuant to

Section 10.3(a), (b), (c), (d), (e) or (f) occurs on or after the “ex”

date for the issuance or distribution requiring such computation and prior to

the day in question, the Sale Price for each Trading Day on and after the “ex”

date for such other event shall be adjusted by dividing such Sale Price by the

reciprocal of the fraction by which the Conversion Price is so required to be

adjusted as a result of such other event; and

 

(3)           the “ex” date for

the issuance or distribution requiring such computation is prior to the day in

question, after taking into account any adjustment required pursuant to clause

(1) or (2) of this proviso, the Sale Price for each Trading Day on or after

such “ex”

 

61

 

date shall be

adjusted by adding thereto the amount of any cash and the Fair Market Value (as

determined by the Board of Directors in a manner consistent with any

determination of such value for purposes of Section 11.3(d), (e) or (f))

of the evidences of Indebtedness, shares of capital stock or assets being

distributed applicable to one share of Common Stock as of the close of business

on the day before such “ex” date.

 

For purposes of any computation

under Section 11.3(f), if the “ex” date for any event (other than the

tender offer requiring such computation) that requires an adjustment to the

Conversion Price pursuant to Section 11.3(a), (b), (c), (d), (e) or (f) occurs

on or after the Expiration Time for the tender or exchange offer requiring such

computation and prior to the day in question, the Sale Price for each Trading

Day on and after the “ex” date for such other event shall be adjusted by

dividing such Sale Price by the reciprocal of the fraction by which the

Conversion Price is so required to be adjusted as a result of such other

event.  For purposes of this paragraph,

the term “ex” date, when used:

 

(1)           with respect to any

issuance or distribution, means the first date on which the shares of Common

Stock trade regular way on the relevant exchange or in the relevant market from

which the Sale Price was obtained without the right to receive such issuance or

distribution;

 

(2)           with respect to any

subdivision or combination of shares of Common Stock, means the first date on

which the shares of Common Stock trade regular way on such exchange or in such

market after the time at which such subdivision or combination becomes

effective; and

 

(3)           with respect to any

tender or exchange offer, means the first date on which the shares of Common

Stock trade regular way on such exchange or in such market after the Expiration

Time of such offer.

 

Notwithstanding the foregoing,

whenever successive adjustments to the Conversion Price are called for pursuant

to this Section 11.3, such adjustments shall be made to the Current Market

Price as may be necessary or appropriate to effectuate the intent of this

Section 11.3 and to avoid unjust or inequitable results as determined in

good faith by the Board of Directors.

 

“Fair Market

Value” shall mean the amount that 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 conclusive).

 

“Record Date”

shall mean, with respect to any dividend, distribution or other transaction or

event in which the holders of shares of Common Stock have the right to receive

any cash, securities or other property or in which the shares of Common Stock

(or other applicable security) is exchanged for or converted into any

combination of cash, securities or other property, the date fixed for

determination of stockholders entitled to receive such cash, securities or

other property (whether such date is fixed by the Board of Directors or by

statute, contract or otherwise).

 

(h) The

Company shall be entitled to make such additional reductions in the Conversion

Price, in addition to those required by Sections 11.3(a), (b), (c), (d), (e)

and (f), as

 

62

 

shall be necessary in order

that any dividend or distribution of Common Stock, any subdivision,

reclassification or combination of shares of Common Stock or any issuance of

rights or warrants referred to above shall not be taxable to the holders of

Common Stock for United States Federal income tax purposes.

 

(i) To the

extent permitted by applicable law, the Company may, from time to time, reduce

the Conversion Price by any amount for any period of time, if such period is at

least 20 days and the reduction is irrevocable during the period.  Whenever the Conversion Price is reduced

pursuant to the preceding sentence, 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, at least 15 days prior to the date the

reduced Conversion Price takes effect, a notice of the reduction stating the

reduced Conversion Price and the period during which it will be in effect.

 

(j) In any

case in which this Section 11.3 shall require that any adjustment be made

effective as of or retroactively immediately following a Record Date, the

Company may elect to defer (but only for five Trading Days following the filing

of the statement referred to in Section 11.5) issuing to the Holder of any

Securities converted after such Record Date the shares of Common Stock issuable

upon such conversion over and above the shares of Common Stock issuable upon

such conversion on the basis of the Conversion Price prior to adjustment; 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 shares upon the occurrence of the event requiring such adjustment.

 

(k) All

calculations under this Section 11.3 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 11.3, the

Company shall not be required to make any adjustment of the Conversion Price

unless such adjustment would require an increase or decrease of at least 1% of

such price.  Any lesser adjustment shall

be carried forward and shall be made at 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 such price. Any adjustments under this Section 11.3 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 11.3, the Holder of any Securities thereafter surrendered for

conversion shall become entitled to receive any shares of stock of the Company

other than shares of Common Stock into which the Securities originally were

convertible, the Conversion Price 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 11.3, and the provision of Sections 11.1, 11.2 and

11.4 through 11.9 with respect to the Common Stock shall apply on like or

similar terms to any such other shares and the determination of the Board of

Directors as to any such adjustment shall be conclusive.

 

(m) No

adjustment shall be made pursuant to this Section 11.3 (i) if the effect

thereof would be to reduce the Conversion Price below the par value (if any) of

the Common 

 

63

 

Stock or (ii) if the Holders of

the Securities may participate in the transaction that would otherwise give

rise to an adjustment pursuant to this Section 11.3.

 

Section   11.4  

Consolidation or Merger of the Company.

 

If any of the

following events occurs, namely:

 

(1)           any reclassification

or change of the outstanding 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);

 

(2)           any merger,

consolidation, statutory share exchange or combination of the Company with

another corporation 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

 

(3)           any sale or

conveyance of the properties and assets of the Company as, or substantially as,

an entirety to any other corporation 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;

 

the Company or the successor or

purchasing corporation, as the case may be, shall execute with the Trustee a

supplemental indenture (which shall comply with the Trust Indenture Act as in

force at the date of execution of such supplemental indenture, if such

supplemental indenture is then required to so comply) providing that such

Securities shall be convertible into the kind and amount of shares of stock and

other securities or property or assets (including cash) which such Holder would

have been entitled to receive upon such reclassification, change, merger,

consolidation, statutory share exchange, combination, sale or conveyance had

such Securities been converted into Common Stock immediately prior to such

reclassification, change, merger, consolidation, statutory share exchange,

combination, sale or conveyance assuming such holder of Common Stock did not

exercise its rights of election, if any, as to the kind or amount of

securities, cash or other property receivable upon such merger, consolidation,

statutory share exchange, sale or conveyance (provided, that if the kind

or amount of securities, cash or other property receivable upon such merger,

consolidation, statutory share exchange, sale or conveyance is not the same for

each share of Common Stock in respect of which such rights of election shall not

have been exercised (“Non-Electing Share”), then for the purposes of this

Section 11.4, the kind and amount of securities, cash or other property

receivable upon such merger, consolidation, statutory share exchange, sale or

conveyance for each Non-Electing Share shall be deemed to be the kind and

amount so receivable per share by a plurality of the Non-Electing Shares).  Such supplemental indenture shall provide

for adjustments which shall be as nearly equivalent as may be practicable to

the adjustments provided for in this Article 11.  If, in the case of any such reclassification, change, merger,

consolidation, statutory share exchange, combination, sale or conveyance, the

stock or other securities and assets receivable thereupon by a holder of Common

Stock includes shares of stock or other securities and assets of a corporation

other than the successor or purchasing corporation, as the case may be, in such

reclassification, change, merger, consolidation, statutory share exchange,

combination, sale or conveyance, then such supplemental indenture shall also be

executed by such other corporation and shall contain 

 

64

 

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 to the extent practicable the provisions providing for the conversion

rights set forth in this Article 11.

 

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 11.4 shall similarly apply to successive

reclassifications, mergers, consolidations, statutory share exchanges,

combinations, sales and conveyances.

 

If this

Section 11.4 applies to any event or occurrence, Section 11.3 shall

not apply.

 

Section

11.5   Notice of Adjustment.

 

Whenever an

adjustment in the Conversion Price with respect to the Securities is required:

 

(1)           the Company shall

forthwith place on file with the Trustee and any Conversion Agent for such

securities a certificate of the Treasurer of the Company, stating the adjusted

Conversion Price 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

 

(2)           a notice stating

that the Conversion Price has been adjusted and setting forth the adjusted

Conversion Price 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 12.2.  Any notice so given shall be conclusively presumed to have been

duly given, whether or not the Holder receives such notice.

 

Section

11.6   Notice in Certain Events.

 

In case:

 

(1)           of a consolidation

or merger to which the Company is a party and for which approval of any

stockholders of the Company is required, or of the sale or 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 Rule 13d–3 under the Securities Exchange Act of 1934, as amended) of

all or substantially all of the property and assets of the Company; or

 

(2)           of the voluntary or

involuntary dissolution, liquidation or winding up of the Company; or 

 

65

 

(3)           of any action

triggering an adjustment of the Conversion Price 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 12.2, 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 or warrants triggering an

adjustment to the Conversion Price pursuant to this Article 11, 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 or warrants 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 Price pursuant to this Article 11 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 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 clause (1), (2) or (3) of this

Section 11.6.

 

Section

11.7   Company To Reserve Stock:

Registration; Listing.

 

(a) The

Company shall, in accordance with the laws of the State of Washington, at all

times reserve and keep available, free from preemptive rights, out of its

authorized but unissued shares of Common Stock, for the purpose of effecting

the conversion of the Securities, such number of its duly authorized shares of

Common Stock as shall from time to time be sufficient to effect the conversion

of all Securities then outstanding into such Common Stock at any time (assuming

that, at the time of the computation of such number of shares or securities,

all such Securities would be held by a single Holder); provided, however,

that nothing contained herein shall preclude the Company from satisfying its

obligations in respect of the conversion of the Securities by delivery of

purchased shares of Common Stock which are then held in the treasury of the

Company.  The Company covenants that all

shares of Common Stock which may be issued upon conversion of Securities will

upon issue be fully paid and nonassessable and free from all liens and charges

and, except as provided in Section 11.8, taxes with respect to the issue

thereof.

 

(b) If any

shares of Common Stock which would be issuable upon conversion of Securities

hereunder require registration with or approval of any governmental authority

before such shares or securities may be issued upon such conversion, the

Company will in good faith and as expeditiously as possible endeavor to cause

such shares or securities to be duly registered or approved, as the case may

be.  The Company further covenants that

so long as the Common Stock shall be listed on the New York Stock Exchange, the

Company will, if permitted by the rules of such exchange, list and keep listed

all Common Stock issuable upon conversion of the Securities, and the Company

will endeavor to list the shares of Common Stock required to be delivered upon

conversion of the Securities prior to such delivery upon any other national

securities exchange upon which the outstanding Common Stock is listed at the

time of such delivery.

 

66

 

Section

11.8   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 shares 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 shares 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

11.9   Conversion After Record Date.

 

Except as

provided below, if any Securities are surrendered for conversion on any day

other than an Interest Payment Date, the Holder of such Securities shall not be

entitled to receive any interest that has accrued on such Securities since the

prior Interest Payment Date.  By

delivery to the Holder of the number of shares of Common Stock or other

consideration issuable upon conversion in accordance with this Article 11, any

accrued and unpaid interest on such Securities will be deemed to have been paid

in full.

 

If any

Securities are surrendered for conversion subsequent to the Record Date

preceding an Interest Payment Date but on or prior to  such Interest Payment Date,

the Holder of such Securities at the close of business on such Record Date

shall receive the interest 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 preceding any Interest Payment Date to the

opening of business on such Interest Payment Date shall (except in the case of

Securities which have been called for redemption on a Redemption Date between

such Record Date and the third Business Day after such Interest Payment Date)

be accompanied by payment by Holders, for the account of the Company, in New

York Clearing House funds or other funds of an amount equal to the interest

payable on such Interest Payment Date on the Securities being surrendered for

conversion.  Except  as provided in this

Section 11.9, no adjustments in respect of payments of interest on

Securities surrendered for conversion or  any dividends or distributions or

interest on the Common Stock issued upon conversion shall be made upon the

conversion of any Securities.

 

Section

11.10  Company Determination Final.

 

Any

determination that the Company or the Board of Directors must make pursuant to

this Article 11 shall be conclusive if made in good faith and in accordance

with the provisions of this Article, absent manifest error, and set forth in a

Board Resolution.

 

Section

11.11  Responsibility of Trustee for

Conversion Provisions.

 

The Trustee

has no duty to determine when an adjustment under this Article XI should be

made, how it should be made or what it should be.  The Trustee makes no 

 

67

 

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 11.  Each Conversion Agent other than the Company

shall have the same protection under this Section 11.11 as the Trustee. 

 

The rights,

privileges, protections, immunities and benefits given to the Trustee under the

Indenture including, without limitation, its rights to be indemnified, are

extended to, and shall be enforceable by, the Trustee in each of its capacities

hereunder, and each Paying Agent or Conversion Agent acting hereunder.

 

Section

11.12  Unconditional Right of Holders

to Convert.

 

Notwithstanding

any other provision in this Indenture, the Holder of any Security shall have

the right, which is absolute and unconditional, to convert its Security in

accordance with this Article 11 and to bring an action for the enforcement of

any such right to convert, and such rights shall not be impaired or affected

without the consent of such Holder.

 

ARTICLE XII

 

MISCELLANEOUS

 

Section

12.1   Trust Indenture Act Controls.  If any provision of this Indenture limits,

qualifies, or conflicts with another provision which is required to be included

in this Indenture by the TIA, the required provision shall control.

 

Section

12.2   Notices.  Any request, demand, authorization, notice,

waiver, consent or communication shall be in writing and delivered in person or

mailed by first–class mail, postage prepaid, addressed as follows or

transmitted by facsimile transmission (confirmed by guaranteed overnight

courier) to the following facsimile numbers:

 

if to the

Company:

 

Labor Ready,

Inc.

1015 A Street

Tacoma,

Washington 98402

Attn:  Timothy J. Adams 

Facsimile No.

(800) 587-9257

 

With a

copy  to:

 

Preston Gates

& Ellis LLP

701 Fifth

Avenue, 55th Floor

Seattle,

Washington 98104

Attn: Gary J.

Kocher

Facsimile No.:

(206) 623-7022

 

68

 

if to the

Trustee:

 

The Bank of

New York

101 Barclay

Street

New York, New

York 10286

Telephone No.

(212) 896-7135

Facsimile No.

(212) 896-7299

Attention:  Corporate Trust Administration

 

The Company or

the Trustee by notice given to the other in the manner provided above may

designate additional or different addresses for subsequent notices or

communications.

 

Any notice or

communication given to a Securityholder shall be mailed to the Securityholder,

by first-class mail, postage prepaid, at the Securityholder’s address as it

appears on the registration books of the Registrar and shall be sufficiently

given if so mailed within the time prescribed.

 

Failure to

mail a notice or communication to a Securityholder or any defect in it shall

not affect its sufficiency with respect to other Securityholders.  If a notice or communication is mailed in

the manner provided above, it is duly given, whether or not received by the

addressee.

 

If the Company

mails a notice or communication to the Securityholders, it shall mail a copy to

the Trustee and each Registrar, Paying Agent, Conversion Agent or co-registrar.

 

Section

12.3   Communication by Holders with

Other Holders. 

Securityholders may communicate pursuant to TIA Section 312(b) with

other Securityholders with respect to their rights under this Indenture or the

Securities.  The Company, the Trustee,

the Registrar, the Paying Agent, the Conversion Agent and anyone else shall

have the protection of TIA Section 312(c).

 

Section

12.4   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:

 

(1) an

Officers’ Certificate stating that, in the opinion of the signers, all

conditions precedent, if any, provided for in this Indenture relating to the

proposed action have been complied with; and

 

(2) an Opinion

of Counsel stating that, in the opinion of such counsel, all such conditions

precedent have been complied with.

 

Section

12.5   Statements Required in

Certificate or Opinion.  Each Officers’ Certificate or Opinion of Counsel with respect to

compliance with a covenant or condition provided for in this Indenture shall

include:

 

(1) a

statement that each Person making such Officers’ Certificate or Opinion of

Counsel has read such covenant or condition;

 

69

 

(2) a brief

statement as to the nature and scope of the examination or investigation upon

which the statements or opinions contained in such Officers’ Certificate or

Opinion of Counsel are based;

 

(3) a

statement that, in the opinion of each such Person, he has made such

examination or investigation as is necessary to enable such Person to express

an informed opinion as to whether or not such covenant or condition has been complied

with; and

 

(4) a

statement that, in the opinion of such Person, such covenant or condition has

been complied with.

 

Section

12.6   Separability Clause.  In case any provision in this Indenture or

in the Securities shall be invalid, illegal or unenforceable, the validity,

legality and enforceability of the remaining provisions shall not in any way be

affected or impaired thereby.

 

Section

12.7   Rules by Trustee, Paying

Agent, Conversion Agent and  Registrar.

  The Trustee

may make reasonable rules for action by or a meeting of Securityholders. The

Registrar, the Conversion Agent and the Paying Agent may make reasonable rules

for their functions.

 

Section

12.8   Legal Holidays.  A “Legal Holiday” is any day other than a

Business Day. If any specified date (including a date for giving notice) is a

Legal Holiday, the action shall be taken on the next succeeding day that is not

a Legal Holiday, and, if the action to be taken on such date is a payment in

respect of the Securities, no interest, if any, shall accrue for the

intervening period.

 

Section

12.9   GOVERNING LAW.  THIS INDENTURE SHALL BE GOVERNED BY, AND

CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

Section

12.10  No Recourse Against Others.  A director, officer, employee or stockholder,

as such, of the Company shall not have any liability for any obligations of the

Company under the Securities or this Indenture or for any claim based on, in

respect of or by reason of such obligations or their creation.  By accepting a Security, each Securityholder

shall waive and release all such liability. 

The waiver and release shall be part of the consideration for the issue

of the Securities.

 

Section

12.11  Successors.  All agreements of the Company in this

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

Indenture shall bind its successor.

 

Section

12.12  Multiple Originals.  The parties may sign any number of copies of

this Indenture. Each signed copy shall be an original, but all of them together

represent the same agreement.  One

signed copy is enough to prove this Indenture.

 

Section

12.13  Effect of Headings and Table

of Contents.  The Article and

Section headings herein and the Table of Contents are for convenience only and

shall not affect the construction hereof.

 

70

 

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.

 

	

   

  	

  LABOR READY,

  INC.

  
	

   

  	

   

  
	

   

  	

  By:

  	

   /s/

  	

   

  
	

   

  	

   

  	

  Name:

  
	

   

  	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

  THE BANK OF

  NEW YORK

  
	

   

  	

  As Trustee

  
	

   

  	

   

  
	

   

  	

  By:

  	

   /s/

  	

   

  
	

   

  	

   

  	

  Name:

  
	

   

  	

   

  	

  Title:

  

 

71

 

EXHIBIT A

 

[FORM OF FACE

OF GLOBAL SECURITY]

 

UNLESS THIS

CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY

TRUST COMPANY TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE

OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &

CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF

THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO.

OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE

DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE

OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF,

CEDE & CO., HAS AN INTEREST HEREIN.

 

TRANSFERS OF

THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS TO NOMINEES OF THE

DEPOSITORY TRUST COMPANY, OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE

AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS

MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN ARTICLE TWO OF THE

INDENTURE REFERRED TO ON THE REVERSE HEREOF.

 

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 IT IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER

THE SECURITIES ACT OF 1933;

 

(2)               AGREES

THAT IT WILL NOT WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS SECURITY

RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY OR THE COMMON STOCK

ISSUABLE UPON CONVERSION OF SUCH SECURITY EXCEPT (A) TO THE COMPANY OR ANY

SUBSIDIARY THEREOF, (B) TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH

RULE 144A UNDER THE SECURITIES ACT OF 1933, (C) TO A NON-U.S. PERSON OUTSIDE

THE UNITED STATES IN COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT OF

1933, (D) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY

RULE 144 UNDER THE SECURITIES ACT OF 1933 (IF AVAILABLE), (E) TO ANY

INSTITUTIONAL INVESTOR THAT IS AN ACCREDITED INVESTOR WITHIN THE MEANING OF

RULE 501(a)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES

ACT PURSUANT TO AN

 

 

 

EXEMPTION FROM

REGISTRATION UNDER THE SECURITIES ACT (IF AVAILABLE), OR (F) 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 (OTHER THAN A TRANSFER PURSUANT TO CLAUSE 2(F) ABOVE), A

NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.

 

The foregoing

legend may be removed from this Security on satisfaction of the conditions

specified in the Indenture.

 

A-2

 

LABOR READY, INC.

 

6.25% Convertible Subordinated Notes due 2007

 

	

  No.

  	

  CUSIP:

  
	

  Issue

  Date:  , 2002

  	

  Principal

  Amount:  $

  

 

LABOR READY,

INC., a Delaware corporation, promises to pay to Cede & Co. or registered

assigns, the principal amount of 

[dollars ($                   )] on June 15, 2007.

 

Interest

Payment Dates:  June 15 and December 15,

commencing December 15, 2002.

 

Record Dates:

June 1 and December 1.

 

Reference is

hereby made to the further provisions of this Security set forth on the reverse

side of this Security, which further provisions shall for all purposes have the

same effect as if set forth at this place.

 

IN WITNESS

WHEREOF, the Company has caused this instrument to be duly executed under its

corporate seal.

 

	

  Dated:           , 2002

  	

  LABOR READY,

  INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  	

   

  
	

   

  	

  Title:

  	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

  TRUSTEE’S

  CERTIFICATE OF AUTHENTICATION

  	

   

  
	

   

  	

   

  
	

  THE BANK OF

  NEW YORK,

  	

   

  
	

  as Trustee,

  certifies that this is one

  	

   

  
	

  of the

  Securities referred to in the

  	

   

  
	

  within–mentioned

  Indenture.

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

  By

  	

   

  	

   

  	

   

  
	

  Authorized Signatory

  	

   

  
	

   

  	

   

  
	

  Dated:          , 2002

  	

   

  
							

 

A-3

 

[FORM OF REVERSE OF GLOBAL SECURITY]

 

6.25% Convertible Subordinated Notes due 2007

 

This Security

is one of a duly authorized issue of the 6.25% Convertible Subordinated Notes

due 2007 (the “Securities”) of Labor Ready, Inc., a Delaware corporation

(including any successor corporation under the Indenture hereinafter referred

to, the “Company”), issued under an Indenture, dated as of June 19, 2002 (the

“Indenture”), between the Company and The Bank of New York, as trustee (the

“Trustee”).  The terms of the Security

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 Security.  This Security

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 Security 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 referred to below unless otherwise indicated.

 

1.  Interest

 

The Company

promises to pay Interest on the principal amount of the Securities at the

interest rate of 6.25% (the “Interest Rate”) from the date of issuance until

repayment in full at June 15, 2007, or until an earlier redemption or

repurchase.  The Company will pay

Interest on this Security semi–annually in arrears on June 15 and

December 15 of each year (each, an “interest payment date”), commencing

December 15, 2002.

 

The Securities

shall bear interest from June 19, 2002 until the principal amount thereof is

paid or made available for payment, or until such date on which the Securities

are converted, redeemed or purchased as provided herein at a rate of 6.25% per

annum.

 

Interest on

the Securities shall be computed (i) for any full semi-annual period for which

a particular Interest Rate is applicable, on the basis of a 360-day year of

twelve 30–day months and (ii) for any period for which a particular

Interest Rate is applicable for less than a full semiannual period for which

Interest is calculated, on the basis of a 30-day month and, for such periods of

less than a month, the actual number of days elapsed over a 30-day month.

 

If this

Security is redeemed or repurchased by the Company on a date that is after the

record date and prior to the corresponding interest payment date, interest and

Additional Amounts, if any, accrued and unpaid hereon to but not including the

applicable Redemption Date or Change of Control Purchase Date, as the case may

be, will be paid to the same Holder to whom the Company pays the principal of

this Security.

 

Interest on

Securities converted after a record date but prior to the corresponding

interest payment date will be paid to the Holder of the Securities on the

record date but, upon conversion, the Holder must pay the Company the interest

and Additional Amounts, if any, which have accrued and will be paid on such

interest payment date; provided, that no such

 

A-4

 

payment need be made with

respect to Securities which will be redeemed by the Company after a record date

and prior to the third Business Day after the corresponding interest payment

date.

 

If the

principal amount hereof or any portion of such principal amount or any

interest, including Additional Amounts, if any, on any Security is not paid

when due (whether upon acceleration pursuant to Section 7.2 of the

Indenture, upon the date set for payment of the Redemption Price pursuant to

Section 5 hereof or the Change of Control Purchase Price pursuant to

Section 6 hereof or upon the Stated Maturity of this Security), then in

each such case the overdue amount shall, to the extent permitted by law, bear

interest at the Interest Rate, compounded semi–annually, which interest

shall accrue from the date on which such overdue amount was originally due to

the date of payment of such amount, including interest thereon, has been made

or duly provided for.  All such interest

shall be payable on demand.

 

2.  Method of Payment.

 

Except as

provided below, interest will be paid (i) on the Global Securities to DTC in

immediately available funds, (ii) on any definitive Securities having an

aggregate principal amount of $5,000,000 or less, by check mailed to the

Holders of such Securities; and (iii) on any definitive Securities having an

aggregate principal amount of more than $5,000,000, by wire transfer in

immediately available funds at the election of the Holders of these Securities.

 

At Stated Maturity the Company will pay interest on definitive

Securities at the Company’s office or agency in New York City, which initially

will be the Corporate Trust Office of the Trustee in New York City.

 

Principal on

definitive Securities will be payable, upon Stated Maturity or when due, at the

office or agency of the Company in New York City, maintained for such purpose,

initially the Corporate Trust Office of the Trustee in New York City.

 

Subject to the

terms and conditions of the Indenture, the Company will make payments in cash

in respect of Redemption Prices, Change of Control Purchase Prices and at

Stated Maturity to Holders who surrender Securities to a Paying Agent to

collect such payments in respect of the Securities. The Company will pay cash

amounts in money of the United States that at the time of payment is legal

tender for payment of public and private debts. However, the Company may make

such cash payments by check payable in such money.

 

3.  Paying Agent, Conversion Agent and Registrar.

 

Initially, The

Bank of New York (the “Trustee”) will act as Paying Agent, Conversion Agent and

Registrar. The Company may appoint and change any Paying Agent, Conversion

Agent or Registrar without notice, other than notice to the Trustee; provided

that the Company will maintain at least one Paying Agent in the State of New

York, City of New York, Borough of Manhattan, which shall initially be an

office or agency of the Trustee. The Company or any of its Subsidiaries or any

of their Affiliates may act as Paying Agent, Conversion Agent or Registrar.

 

A-5

 

4.  Indenture.

 

The Securities

are general unsecured subordinated obligations of the Company limited to

$75,000,000 in aggregate principal amount. 

The Indenture does not limit other indebtedness of the Company, secured

or unsecured.

 

5.  Redemption at the Option of the Company.

 

No sinking

fund is provided for the Securities. The Securities are not redeemable by the

Company prior to June 20, 2005.  The

Securities are redeemable for cash at the option of the Company, in whole or in

part, at any time or from time to time on, or after June 20, 2005 upon not less

than 30 nor more than 60 days’ notice (the “Redemption Notice”) by mail for a

redemption price equal to the principal amount of those Securities plus accrued

and unpaid interest, including Additional Amounts, if any, up to the Redemption

Date (the “Redemption Price”); provided, that the Current Market Value

for the Common Stock equals or exceeds 125% of the Conversion Price in then in

effect for at least 20 Trading Days in any consecutive 30 Trading Day period

ending on the Trading Day prior to the date of the mailing of the Redemption

Notice by the Company.  The term

“Current Market Value”, for any Trading Day, shall mean the Sale Price of the

Common Stock, as reported on the New York Stock Exchange or the principal national

securities exchange or inter-dealer quotation system on which the Common Stock

is then listed, on such Trading Day.

 

6.  Purchase By the Company at the Option of the Holder.

 

At the option

of the Holder and subject to the terms and conditions of the Indenture, the

Company shall become obligated to offer to purchase the Securities held by such

Holder within 30 days after the occurrence of a Change of Control of the

Company for a Change of Control Purchase Price equal to the principal amount

plus accrued and unpaid interest, including Additional Amounts, if any, of such

Security on the Change of Control Purchase Date.  The Change of Control Purchase Date shall be within 30 days of

the Company’s delivery of the notice described in the preceding sentence. The

Change of Control Purchase Price shall be paid in cash.

 

Holders have

the right to withdraw any Change of Control Purchase Notice, as the case may

be, by delivering to the Paying Agent a written notice of withdrawal in

accordance with the provisions of the Indenture.

 

If cash

sufficient to pay the Change of Control Purchase Price of all Securities or

portions thereof to be purchased as of the Change of Control Purchase Date, is

deposited with the Paying Agent, on the Business Day following the Change of Control

Purchase Date, interest will cease to accrue on such Securities (or portions

thereof) immediately after such Change of Control Purchase Date, and the Holder

thereof shall have no other rights as such other than the right to receive the

Change of Control Purchase Price upon surrender of such Security.

 

7.  Notice of Redemption.

 

Notice of

redemption pursuant to Section 5 of this Security will be mailed at least

30 days but not more than 60 days before the Redemption Date to each Holder of

Securities to be

 

A-6

 

redeemed at the Holder’s

registered address. If money sufficient to pay the Redemption Price of all

Securities (or portions thereof) to be redeemed on the Redemption Date is

deposited with the Paying Agent prior to or on the Redemption Date, immediately

after such Redemption Date interest ceases to accrue on such Securities or

portions thereof. Securities in denominations larger than $1,000 of principal

amount may be redeemed in part but only in integral multiples of $1,000 of

principal amount.

 

8.  Conversion.

 

Subject to and

in compliance with the provisions of the Indenture, a Holder is entitled, at

such Holder’s option, to convert the Holder’s Security (or any portion of the

principal amount thereof that is $1,000 or an integral multiple $1,000), into

fully paid and nonassessable shares of Common Stock at the Conversion Price in

effect at the time of conversion.

 

A Security in

respect of which a Holder has delivered a Change of Control Purchase Notice,

exercising the option of such Holder to require the Company to purchase such

Security, may be converted only if such Change of Control Purchase Notice is

withdrawn in accordance with the terms of the Indenture.

 

The initial

Conversion Price is $7.26, subject to adjustment in certain events described in

the Indenture.  A Holder that surrenders

Securities for conversion will receive cash or a check in lieu of any

fractional share of Common Stock.

 

To surrender a

Security for conversion, a Holder must (1) complete and manually sign the

conversion notice below (or complete and manually sign a facsimile of such

notice) and deliver such notice to the Conversion Agent, (2) surrender the

Security to the Conversion Agent, (3) furnish appropriate endorsements and

transfer documents and (4) pay any transfer or similar tax, if required by the

Indenture.

 

No fractional

shares of Common Stock shall be issued upon conversion of any Security.  Instead of any fractional share of Common

Stock that would otherwise be issued upon conversion of such Security, the

Company shall pay a cash adjustment as provided in the Indenture.

 

If the Company

(i) is a party to a consolidation, merger or binding share exchange, (ii)

reclassifies the Common Stock or (iii) conveys, transfers or leases its

properties and assets substantially as an entirety to any Person, the right to

convert a Security 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.

 

9.  Subordination of Securities.

 

The

indebtedness evidenced by the Securities is, to the extent and in the manner

provided in Article 5 of the Indenture, expressly subordinate and subject in

right of payment to the prior payment in full of all Senior Debt of the

Company, as defined in the Indenture, whether outstanding at the date of the

Indenture or thereafter incurred, and this Security is issued subject to the

provisions of the Indenture with respect to such subordination.  Each holder of this Security, by accepting

the same, agrees to and shall be bound by such provisions and authorizes 

 

A-7

 

the Trustee on its behalf to

take such action as may be necessary or appropriate to effectuate the

subordination so provided and appoints the Trustee his or her attorney-in-fact

for such purpose.

 

No reference

herein to the Indenture and no provision of this Security or of the Indenture

shall alter or impair the obligation of the Company, which is absolute and

unconditional, to pay the principal of and interest (including Additional

Amounts, if any) on this Security at the place, at the respective times, at the

rate and in the coin or currency herein prescribed.

 

10.  Denominations; Transfer; Exchange.

 

The Securities

are in fully registered form, without coupons, in denominations of $1,000 of

principal amount and integral multiples of $1,000.  A Holder may transfer or exchange Securities in accordance with

the Indenture.  The Registrar may

require a Holder, among other things, to furnish appropriate endorsements and

transfer documents and to pay any taxes and fees required by law or permitted

by the Indenture.  The Registrar need

not transfer or exchange any Securities selected for redemption (except, in the

case of a Security to be redeemed in part, the portion of the Security not to

be redeemed) or any Securities in respect of which a Purchase Notice or Change

of Control Purchase Notice has been given and not withdrawn (except, in the

case of a Security to be purchased in part, the portion of the Security not to

be purchased) or any Securities for a period of 15 days before the mailing of a

notice of redemption of Securities to be redeemed.

 

11.  Persons Deemed Owners.

 

The registered

Holder of this Security may be treated as the owner of this Security for all

purposes.

 

12.  Unclaimed Money or Securities. 

 

The Trustee

and the Paying Agent shall return to the Company upon written request any money

held by them for the payment of any amount with respect to the Securities that

remains unclaimed for two years, subject to applicable unclaimed property

law.  After return to the Company,

Holders entitled to the money or securities must look to the Company for

payment as general creditors unless an applicable abandoned property law

designates another Person.

 

13.  Amendment; Waiver.

 

Subject to

certain exceptions set forth in the Indenture, (i) the Indenture or the

Securities may be amended with the written consent of the Holders of at least a

majority in aggregate principal amount of the outstanding Securities and (ii)

certain Defaults may be waived with the written consent of the Holders of a

majority in aggregate principal amount of the outstanding Securities.  The Indenture and the Securities may also be

amended by the Company and the Trustee, without the consent of any Holder, in

certain circumstances set forth in the Indenture; provided, that certain

provisions of the Indenture and the Securities may not be amended without the

consent of each affected  Holder.

 

A-8

 

14.  Defaults and Remedies.

 

If any Event

of Default with respect to Securities shall occur and be continuing, the

principal of all the Securities may be declared due and payable in the manner

and with the effect provided in the Indenture.

 

15.  Trustee Dealings with the Company.

 

Subject to

certain limitations imposed by the TIA, the Trustee under the Indenture, in its

individual or any other capacity, may become the owner or pledgee of Securities

and may otherwise deal with and collect obligations owed to it by the Company

or its Affiliates and may otherwise deal with the Company or its Affiliates

with the same rights it would have if it were not Trustee.

 

16.  No Recourse Against Others.

 

A director,

officer, employee or shareholder, as such, of the Company shall not have any

liability for any obligations of the Company under the Securities or the

Indenture or for any claim based on, in respect of or by reason of such

obligations or their creation.  By

accepting a Security, each Securityholder waives and releases all such

liability. The waiver and release are part of the consideration for the issue

of the Securities.

 

17.  Authentication.

 

This Security

shall not be valid until an authorize signatory of the Trustee manually signs

the Trustee’s Certificate of Authentication on the other side of this Security.

 

18.  Abbreviations.

 

Customary

abbreviations may be used in the name of a Securityholder 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).

 

19.  GOVERNING LAW.

 

THE LAWS OF

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

 

The Company

will furnish to any Securityholder upon written request and without charge a

copy of the Indenture which has in it the text of this Security in larger type.

Requests may be made to:

 

LABOR READY,

INC.

1015 A. Street

Tacoma,

Washington 98402

Attn:  Timothy J. Adams 

Facsimile No.

(800) 587-9257

 

A-9

 

20.  Registration Rights.

 

The Holders of

the Securities are entitled to the benefits of a Resale Registration Rights

Agreement, dated as of June 19, 2002, among the Company, Lehman Brothers Inc.,

Wells Fargo Securities, LLC and Gerard Klauer Mattison & Co., Inc.,

including the receipt of Additional Amounts upon a registration default (as

defined in such agreement).

 

A-10

 

	

  ASSIGNMENT FORM

  	

   

  	

  CONVERSION

  NOTICE

  
	

   

  	

   

  	

   

  
	

  To assign this Security, fill in the form

  below:

  	

   

  	

  To convert this Security into Common Stock

  of the Company, check the box  o

  
	

   

  	

   

  	

   

  
	

  I or we assign and transfer this Security to

  	

   

  	

  To convert only part of this Security, state the principal amount to

  be converted (which must be $1,000 or an integral multiple of $1,000):

  
	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

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

  	

   

  	

  If you want the stock certificate made out in another person’s name

  fill in the form below:

  
	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

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

  	

   

  	

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

  
	

   

  	

   

  	

   

  
	

  and irrevocably appoint

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  agent to transfer

  	

   

  	

   

  	

   

  
	

  this Security on the books of the Company.  The agent .

  	

   

  	

   

  	

   

  
	

  may substitute another to act for him.

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

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

  
							

 

	

  Date: 

  	

   

  	

  Your Signature:

  	

   

  	

   

  
	

   

  	

   

  
	

  (Sign

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

  	

   

  
	

   

  	

   

  
	

  Signature Guaranteed

  	

   

  
	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  Participant in a Recognized Signature

  	

   

  
	

  Guarantee Medallion Program

  	

   

  
	

   

  	

   

  
	

  By:

  	

   

  	

   

  	

   

  
	

  Authorized Signatory

  	

   

  
									

 

A-11

 

SCHEDULE OF INCREASES AND DECREASES OF GLOBAL SECURITY

 

Initial Principal Amount of

Global Security:                    

($                    ).

 

	

  Date

  	

   

  	

  Amount of

  Increase in

  Principal

  Amount of

  Global Security

  	

   

  	

  Amount of

  Decrease in

  Principal

  Amount of

  Global Security

  	

   

  	

  Principal

  Amount of

  Global Security

  After Increase or

  Decrease

  	

   

  	

  Notation

  by

  Registrar or

  Security

  Custodian

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  `

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  

 

A-12

 

 

EXHIBIT B

[FORM OF FACE OF CERTIFICATED SECURITY]

 

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:

 

(4)                        REPRESENTS

THAT IT IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER

THE SECURITIES ACT OF 1933;

 

(5)                        AGREES

THAT IT WILL NOT WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS SECURITY

RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY OR THE COMMON STOCK

ISSUABLE UPON CONVERSION OF SUCH SECURITY EXCEPT (A) TO THE COMPANY OR ANY

SUBSIDIARY THEREOF, (B) TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH

RULE 144A UNDER THE SECURITIES ACT OF 1933,  (C) TO A NON-U.S. PERSON OUTSIDE THE UNITED STATES IN COMPLIANCE

WITH REGULATION S UNDER THE SECURITIES ACT OF 1933, (D) PURSUANT TO THE

EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT

OF 1933 (IF AVAILABLE), (E) TO ANY INSTITUTIONAL INVESTOR THAT IS AN ACCREDITED

INVESTOR WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR (7) OF

REGULATION D UNDER THE SECURITIES ACT PURSUANT TO AN EXEMPTION FROM

REGISTRATION UNDER THE SECURITIES ACT (IF AVAILABLE), OR (F) 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

 

(6)                        AGREES

THAT IT WILL DELIVER TO EACH PERSON TO WHOM THE SECURITY EVIDENCED HEREBY IS

TRANSFERRED (OTHER THAN A TRANSFER PURSUANT TO CLAUSE 2(F) ABOVE), A

NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.

 

The foregoing legend may be removed from this

Security on satisfaction of the conditions specified in the Indenture.

 

 

LABOR READY, INC.

 

6.25% Convertible Subordinated Notes due 2007

 

	

  No.

  	

  CUSIP:

  
	

  Issue Date:

  	

   

  	

  2002

  	

   

  
	

  Issue Price:

  $1,000

  	

   

  
					

 

LABOR READY, INC., a Delaware corporation,

promises to pay to                     

or registered assigns, the principal amount of

[                    

($          )] on June 15,

2007.

 

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

15, 2002.

 

Record Dates:   June 1 and December 1.

 

Reference is hereby made to the further

provisions of this Security set forth on the reverse side of this Security,

which further provisions shall for all purposes have the same effect as if set

forth at this place.

 

IN WITNESS WHEREOF, the Company has caused

this instrument to be duly executed under its corporate seal.

 

 

	

  Dated:

  	

  LABOR READY,

  INC.

  
	

   

  	

  By:

  	

   

  	

   

  
	

   

  	

  Title:

  

 

TRUSTEE’S CERTIFICATE OF 

AUTHENTICATION

 

	

  THE BANK OF NEW YORK, 

  as Trustee, certifies that this

  is one of the Securities referred 

  to in the within–mentioned Indenture

  	

   

  
	

   

  	

   

  
	

  By  

  	

   

  	

   

  	

   

  
	

  Authorized Signatory

  	

   

  
	

   

  	

   

  
	

  Dated:

  	

   

  
					

 

B-2

 

[FORM OF REVERSE OF CERTIFICATED SECURITY IS

IDENTICAL TO EXHIBIT A]

 

 

EXHIBIT C

 

6.25% Senior Convertible Debentures due 2007

 

Transfer Certificate

 

In connection with any transfer of any of the

Securities or beneficial interest in a Global Security that is a Restricted

Security within the period prior to the expiration of the holding period

applicable to the sales thereof under Rule 144(k) under the Securities Act of

1933, as amended (the “Securities Act”) (or any successor provision), the

undersigned registered owner or beneficial owner of this Security hereby

certifies with respect to $               

principal amount of the above–captioned Securities (the

“Surrendered Securities”) presented or surrendered on the date hereof  for registration of transfer, or for

exchange or conversion where the securities issuable upon such exchange or

conversion are to be registered in a name other than that of the undersigned

registered or beneficial owner (each such transaction being a “transfer”), that

such transfer complies with the restrictive legend set forth on the face of the

Surrendered Securities for the reason checked below:

 

o                                    A

transfer of the Surrendered Securities is made to the Company or any

subsidiaries; or

 

o                                    The

transfer of the Surrendered Securities complies with Rule 144A under the

Securities Act; or

 

o                                    The

transfer of the Surrendered Securities complies with Rule 501(a)(1), (2), (3)

or (7) of Regulation D under the Securities Act; or

 

o                                    The

transfer of the Surrendered Securities is pursuant to an effective registration

statement under the Securities Act; or

 

o                                    The

transfer of the Surrendered Securities is pursuant to another available

exemption from the registration requirement of the  Securities Act;

 

and unless the box below is checked, the

undersigned confirms that, to the undersigned’s knowledge, such Securities are

not being transferred to an “affiliate” of the Company as defined in Rule 144

under the Securities Act (an “Affiliate”).

 

o                                    The

transferee is an Affiliate of the Company.

 

	

  DATE:

  	

   

  	

   

  
	

   

  	

  Signature(s)

  

 

(If the registered owner is a corporation,

partnership or fiduciary, the title of the person signing on behalf of such

registered owner must be stated.)

 

	

  Signature Guaranteed

  
	

   

  	

   

  
	

  Participant in a Recognized Signature

  

 

C-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}]]