Document:

exv4w4

 

EXHIBIT 4.4

QUADRAMED CORPORATION

and

THE BANK OF NEW YORK, as Trustee

INDENTURE

Dated as of April 17, 2003

Senior Secured Notes due 2008

Initial Interest Rate 10%

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE I. DEFINITIONS
	 	 	1	 
	 	 	Section 1.1.         Certain Terms Defined
	 	 	1	 
	 	 	Section 1.2.         Incorporation by Reference of Trust Indenture Act
	 	 	9	 
	ARTICLE II. THE NOTES
	 	 	10	 
	 	 	Section 2.1.         Amount of Notes
	 	 	10	 
	 	 	Section 2.2.         Form and Dating
	 	 	10	 
	 	 	Section 2.3.         Form of Trustee’s Certificate of Authentication
	 	 	11	 
	 	 	Section 2.4.         Execution of Notes
	 	 	12	 
	 	 	Section 2.5.         Certificate of Authentication
	 	 	12	 
	 	 	Section 2.6.         Denomination and Date of Notes; Payments of Interest
	 	 	13	 
	 	 	Section 2.7.         Registration, Transfer and Exchange
	 	 	14	 
	 	 	Section 2.8.         Mutilated, Defaced, Destroyed, Lost and Stolen Notes
	 	 	17	 
	 	 	Section 2.9.         Cancellation of Notes; Destruction Thereof
	 	 	18	 
	 	 	Section 2.10.       Temporary Notes
	 	 	19	 
	 	 	Section 2.11.       CUSIP Numbers
	 	 	19	 
	 	 	Section 2.12.       Computation of Interest
	 	 	19	 
	ARTICLE III. COVENANTS OF THE COMPANY
	 	 	19	 
	 	 	Section 3.1.         Payment of Principal and Interest
	 	 	19	 
	 	 	Section 3.2.         Offices for Payments, Etc.
	 	 	20	 
	 	 	Section 3.3.         Appointment to Fill a Vacancy in Office of Trustee
	 	 	21	 
	 	 	Section 3.4.         Paying Agents
	 	 	21	 
	 	 	Section 3.5.         Compliance Certificates
	 	 	22	 
	 	 	Section 3.6.         Corporate Existence
	 	 	22	 
	 	 	Section 3.7.         Maintenance of Properties
	 	 	22	 
	 	 	Section 3.8.         Payment of Taxes and Other Claims
	 	 	22	 
	 	 	Section 3.9.         Usury Laws
	 	 	23	 
	 	 	Section 3.10.       Perfection of Security Interests
	 	 	23	 
	 	 	Section 3.11.       Repurchase Offer
	 	 	23	 
	 	 	Section 3.12.       No Senior Right of Repayment
	 	 	26	 
	 	 	Section 3.13.       Permitted Investments
	 	 	26	 
	 	 	Section 3.14.       Mandatory Repurchase
	 	 	26	 
	ARTICLE IV. SECURITYHOLDER LISTS AND REPORTS BY THE COMPANY AND THE
TRUSTEE
	 	 	29	 
	 	 	Section 4.1.         Company to Furnish Trustee Information as to Names
and Addresses of Securityholders
	 	 	29	 
	 	 	Section 4.2.         Preservation of Information; Communications to Holders
	 	 	29	 
	 	 	Section 4.3.         Reports by Trustee
	 	 	29	 
	 	 	Section 4.4.         Reports by Company
	 	 	30	 

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	 	 	Page	 
	ARTICLE V. REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT
	 	 	30	 
	 	Section 5.1.         Event of Default Defined, Acceleration of Maturity; Waiver of
Default
	 	 	30	 
	 	Section 5.2.         Acceleration of Maturity; Rescission and Annulment
	 	 	32	 
	 	Section 5.3.         Collection of Indebtedness by Trustee; Trustee May Prove Debt
	 	 	32	 
	 	Section 5.4.         Trustee May File Proofs of Claims
	 	 	33	 
	 	Section 5.5.         Trustee May Enforce Claims Without Possession of Notes
	 	 	34	 
	 	Section 5.6.         Application of Proceeds
	 	 	34	 
	 	Section 5.7.         Suits for Enforcement
	 	 	35	 
	 	Section 5.8.         Limitations on Suits by Note Holders
	 	 	35	 
	 	Section 5.9.         Unconditional Right of Securityholders to Institute Certain Suits
	 	 	36	 
	 	Section 5.10.       Restoration of Rights on Abandonment of Proceedings
	 	 	36	 
	 	Section 5.11.       Powers and Remedies Cumulative; Delay or Omission
Not Waiver of Default
	 	 	36	 
	 	Section 5.12.       Delay or Omission Not Waiver
	 	 	36	 
	 	Section 5.13.       Control by Holders of Notes
	 	 	37	 
	 	Section 5.14.       Waiver of Past Defaults
	 	 	37	 
	 	Section 5.15.       Trustee to Give Notice of Default, But May Withhold
in Certain Circumstances
	 	 	37	 
	 	Section 5.16.       Right of Court to Require Filing of Undertaking to Pay Costs
	 	 	38	 
	 	Section 5.17.       Waiver of Stay or Extension Laws
	 	 	38	 
	ARTICLE VI. CONCERNING THE TRUSTEE
	 	 	38	 
	 	Section 6.1.         Duties and Responsibilities of the Trustee; During
Default; Prior to Default
	 	 	38	 
	 	Section 6.2.         Certain Rights of the Trustee
	 	 	38	 
	 	Section 6.3.         Trustee Not Responsible for Recitals, Disposition of
Notes or Application of Proceeds Thereof
	 	 	41	 
	 	Section 6.4.         Trustee and Agents May Hold Notes or Coupons; Collections, Etc.
	 	 	41	 
	 	Section 6.5.         Moneys Held by Trustee
	 	 	41	 
	 	Section 6.6.         Compensation and Indemnification of Trustee and Its Prior Claim
	 	 	41	 
	 	Section 6.7.         Right of Trustee to Rely on Officer’s Certificate, Etc.
	 	 	42	 
	 	Section 6.8.         Qualification of Trustee: Conflicting Interests
	 	 	42	 
	 	Section 6.9.         Preferential Collection of Claims Against Issuers
	 	 	42	 
	 	Section 6.10.       Persons Eligible for Appointment as Trustee
	 	 	42	 
	 	Section 6.11.       Resignation and Removal; Appointment of Successor Trustee
	 	 	43	 
	 	Section 6.12.       Acceptance of Appointment by Successor Trustee
	 	 	44	 
	 	Section 6.13.       Merger, Conversion, Consolidation or Succession to
Business of Trustee
	 	 	44	 
	 	Section 6.14.       Appointment of Authenticating Agent
	 	 	45	 
	ARTICLE VII. CONCERNING THE HOLDERS OF NOTES
	 	 	46	 
	 	Section 7.1.         Evidence of Action Taken by Holders of Notes
	 	 	46	 
	 	Section 7.2.         Proof of Execution of Instruments and of Holding of Notes
	 	 	46	 
	 	Section 7.3.         Holders to be Treated as Owners
	 	 	46	 

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	 	 	Page	 
	 	Section 7.4.         Notes Owned by Company Deemed Not Outstanding
	 	 	46	 
	 	Section 7.5.         Right of Revocation of Action Taken
	 	 	47	 
	ARTICLE VIII. SUPPLEMENTAL INDENTURES
	 	 	48	 
	 	Section 8.1.         Supplemental Indentures Without Consent of Securityholders
	 	 	48	 
	 	Section 8.2.         Supplemental Indentures with Consent of Securityholders
	 	 	49	 
	 	Section 8.3.         Effect of Supplemental Indenture
	 	 	50	 
	 	Section 8.4.         Documents to be Given to Trustee
	 	 	50	 
	 	Section 8.5.         Notation on Notes in Respect of Supplemental Indentures
	 	 	50	 
	 	Section 8.6.         Compliance With Trust Indenture Act
	 	 	50	 
	 	Section 8.7.         Revocation and Effect of Consents
	 	 	50	 
	ARTICLE IX. CONSOLIDATION, MERGER, SALE OR CONVEYANCE
	 	 	51	 
	 	Section 9.1.         Company May Consolidate, Etc., Only on Certain Terms
	 	 	51	 
	 	Section 9.2.         Successor Corporation Substituted Upon Consent
	 	 	52	 
	ARTICLE X. SATISFACTION AND DISCHARGE
	 	 	52	 
	 	Section 10.1.       Satisfaction and Discharge of Indenture
	 	 	52	 
	 	Section 10.2.       Application by Trustee of Funds Deposited for Payment of Notes
	 	 	55	 
	 	Section 10.3.       Repayment of Moneys Held by Paying Agent
	 	 	55	 
	 	Section 10.4.       Return of Moneys Held by Trustee and Paying Agent
Unclaimed for Two Years
	 	 	55	 
	 	Section 10.5.       Indemnity for U.S. Government of Obligations
	 	 	56	 
	ARTICLE XI. MISCELLANEOUS PROVISIONS
	 	 	56	 
	 	Section 11.1.       Incorporators, Stockholders, Officers and Directors
of Company Exempt from Individual Liability
	 	 	56	 
	 	Section 11.2.       Provisions of Indenture for the Sole Benefit of
Parties and Holders of Notes
	 	 	56	 
	 	Section 11.3.       Successors and Assigns of Company Bound by Indenture
	 	 	56	 
	 	Section 11.4.       Notices and Demands on Company, Trustee and Holders of Notes
	 	 	56	 
	 	Section 11.5.       Officer’s Certificates and Opinions of Counsel;
Statements to be Contained Therein
	 	 	57	 
	 	Section 11.6.       Payments Due on Saturdays, Sundays and Holidays
	 	 	58	 
	 	Section 11.7.       Conflict of Any Provision of Indenture with Trust Indenture Act
	 	 	58	 
	 	Section 11.8.       New York Law to Govern
	 	 	58	 
	 	Section 11.9.       Counterparts
	 	 	58	 
	 	Section 11.10.     Effect of Headings
	 	 	58	 
	 	Section 11.11.     Severability
	 	 	59	 
	ARTICLE XII. REDEMPTION OF NOTES
	 	 	59	 
	 	Section 12.1.       Optional Redemption
	 	 	59	 
	 	Section 12.2.       Notice of Redemption; Partial Redemptions
	 	 	59	 
	 	Section 12.3.       Payment of Notes Called for Redemption
	 	 	60	 
	 	Section 12.4.       Exclusion of Certain Notes from Eligibility for
Selection for Redemption
	 	 	61	 
	ARTICLE XIII. SECURITY ARRANGEMENTS
	 	 	61	 

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	 	 		 	 	Page	 
	 	Section 13.1
	Collateral and Security Documents	 	 	61	 
	 	Section 13.2
	Release of Collateral	 	 	62	 
	 	Section 13.3
	Opinions as to Recording	 	 	63	 
	 	Section 13.4
	Further Assurances and Security	 	 	63	 
	 	Section 13.5
	Authorization of
Actions to be Taken by Collateral Agent Under the Security Documents	 	 	63	 
	 	Section 13.6
	Authorization of
Receipt of Funds by the Trustee Under the Security Documents	 	 	64	 

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          This INDENTURE, dated as of April 17, 2003, by and between QuadraMed
Corporation, a Delaware corporation (the “Company”), and The Bank of New York,
a New York banking corporation, as trustee (the “Trustee”),

W I T N E S S E T H:

          WHEREAS, the Company has duly authorized the issuance, sale, execution and
delivery of its Senior Secured Notes due 2008 in an initial aggregate principal
amount of $71,000,000, and such additional principal amount of Notes as shall
be issued on certain Interest Payment Dates (as defined below) as partial
payments of interest in lieu of cash, having terms as hereinafter provided;
and, to provide the terms and conditions upon which the Notes are to be issued,
authenticated and delivered, the Company has duly authorized the execution of
this Indenture; and

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

          WHEREAS, all things necessary to make this Indenture a valid and legally
binding indenture and agreement according to its terms have been done;

          NOW, THEREFORE:

          In consideration of the premises and the purchases of the Notes by the
holders thereof, the Company and the Trustee mutually covenant and agree for
the equal and proportionate benefit of the respective holders from time to time
of the Notes as follows:

ARTICLE I.

DEFINITIONS

     Section 1.1.   Certain Terms Defined.

          The following terms (except as otherwise expressly provided or unless the
context otherwise clearly requires) for all purposes of this Indenture and of
any indenture supplemental hereto shall have the respective meanings specified
in this Section 1.1. All other terms used in this Indenture that are defined in
the TIA, or the definitions of which in the Securities Act of 1933, as amended
(the “Act”), are referred to in the TIA, including terms defined therein by
reference to the Act (except as herein otherwise expressly provided or unless
the context otherwise requires), shall have the meaning assigned to such terms
in the TIA and in the Act as in effect from time to time. All accounting terms
used herein and not expressly defined shall have the meanings assigned to such
terms in accordance with generally accepted accounting principles, and the term
“generally accepted accounting principles” means such accounting principles as
are generally accepted at the time of any computation unless a different time
shall be specified. The words “herein,” “hereof” and “hereunder” and other
words of similar import refer to this Indenture as a whole and not to any
particular Article, Section or other subdivision.

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The terms defined in this Article have the meanings assigned to them in
this Article and include the plural as well as the singular.

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

          “Additional Notes” shall have the meaning set forth in Section 3.1(b).

          “Affiliate” has the same meaning as given to that term in Rule 405 of the
Act or any successor provision.

          “Authenticating Agent” shall have the meaning set forth in Section 6.14.

          “Board of Directors” means either the Board of Directors of the Company or
any committee of such Board duly authorized to act on its behalf.

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

          “Business Day” means, with respect to any Note, a day other than any day
on which banking institutions in the city (or in any of the cities, if more
than one) in which amounts are payable, as specified in the form of such Note,
are authorized or required by any applicable law or regulation to be closed.

          “Capital Stock” of any Person means any and all shares, rights to
purchase, warrants or options (whether or not currently exercisable),
participations or other equivalents of or interest in (however designated) the
equity (including without limitation common stock, preferred stock and
partnership and joint venture interests) of such Person (excluding any debt
securities that are convertible into, or exchangeable for, such equity).

          “Change of Control” has the meaning specified in Section 3.11(c).

          “Collateral” means the collective reference to all assets, whether now
owned or hereafter acquired, upon which a Lien is created or granted from time
to time pursuant to any Security Document.

          “Collateral Agent” shall have the meaning given such term in the Security
Documents.

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

          “Common Equity” of any Person means all Capital Stock of such Person that
is generally entitled to (a) vote in the election of directors of such Person
or (b) if such Person is not a corporation, vote or otherwise participate in
the selection of the governing body, partners, managers or others that will
control the management and policies of such Person and that does not rank
prior, as to the payment of dividends or as to the distribution of assets upon
any

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voluntary or involuntary liquidation, dissolution or winding up of such
Person, to shares of Capital Stock of any other class of such Person.

          “Company” means the Person named as the “Company” in the first paragraph
of this instrument until a successor Person shall have become such pursuant to
the applicable provisions of this Indenture, and thereafter “Company” shall
mean such successor Person.

          “Company Notice” shall have the meaning set forth in Section 3.11(b).

          “Company Order” means a written statement, request or order of the Company
signed in its name by the chairman of the Board of Directors, the president,
any vice president or the treasurer of the Company.

          “Consolidated Tangible Assets” of any Person as of any date means the
total assets of such Person and its Subsidiaries (excluding any assets that
would be classified as “intangible assets” under generally accepted accounting
principles (“GAAP”)) on a consolidated basis at such date, as determined in
accordance with GAAP, less all write-ups subsequent to the date of initial
issuance of the Notes in the book value of any asset owned by such Person or
any of its Subsidiaries.

          “Corporate Trust Office” means the office of the Trustee at which the
corporate trust business of the Trustee shall, at any particular time, be
principally administered, which office is, as of the date of this Indenture,
located at 101 Barclay Street, Floor 8W, New York, New York 10286, Attention:
Corporate Trust Administration.

          “Covenant Defeasance” has the meaning set forth in Section 10.1(c).

          “Defaulted Interest” has the meaning specified in Section 2.6.

          “Depositary” means, with respect to the Notes issued in the form of one or
more Global Notes, The Depository Trust Company or another Person designated as
Depositary by the Company, which Person must be a clearing agency registered
under the Exchange Act.

          “Dollar” or “$” means the coin or currency of the United States of America
as at the time of payment is legal tender for the payment of public and private
debts.

          “Event of Default” means any event or condition specified as such in
Section 5.1.

          “Excess Cash Payment” shall have the meaning set forth in Section 3.14.

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

          “Global Note” has the meaning set forth in Section 2.2.

          “Global Note Legend” has the meaning set forth on the face of the form of
the Note at Exhibit A hereto.

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          “Holder,” “Holder of Notes,” “Securityholder” or other similar terms mean
the person in whose name such Note is registered in the Security Register kept
by the Company for that purpose in accordance with the terms hereof.

          “Indenture” means this instrument as originally executed and delivered or,
if amended or supplemented as herein provided, as so amended or supplemented or
both, and shall include the form and terms of Notes established as contemplated
hereunder.

          “Interest Payment Date,” means the Stated Maturity of an installment of
interest on such Note.

          “Investments” means, with respect to any Person, directly or indirectly,
any advance, account receivable (other than an account receivable arising in
the ordinary course of business of such Person), loan or capital contribution
to (by means of transfers of property to others, payments for property or
services for the account or use of others or otherwise), the purchase of any
Capital Stock, bonds, notes, debentures, partnership or joint venture interests
or other securities of, the acquisition, by purchase or otherwise, of all or
substantially all of the stock or other evidence of beneficial ownership of,
any Person or the making of any investment in any Person. Investments shall
exclude (i) extensions of trade credit on commercially reasonable terms in
accordance with normal trade practices of such Person and (ii) the repurchase
of securities of any Person by such Person.

          “IRS” means the Internal Revenue Service of the United States Department
of the Treasury, or any successor entity.

          “Judgment Currency” has the meaning set forth in Section 11.11.

          “Lien” means, with respect to any property or assets of any Person, any
mortgage or deed of trust, pledge, hypothecation, assignment, deposit
arrangement, security interest, lien, charge, easement, encumbrance,
preference, priority, or other security agreement or preferential arrangement
of any kind or nature whatsoever on or with respect to such property or assets
(including without limitation, any conditional sales or other title retention
agreement having substantially the same economic effect as any of the
foregoing).

          “Maturity,” when used with respect to any Note, means the date on which
the principal of such Note becomes due and payable as therein or herein
provided, whether at the Stated Maturity or by declaration of acceleration,
call for redemption or otherwise.

          “Non-U.S. Person” means any person that is not a “U.S. person” as such
term is defined in Rule 902 of the Act.

          “Note” or “Notes” (except as otherwise provided in Section 7.4)
has the meaning stated in the first recital of this Indenture, or,
as the case may be, Notes that have been authenticated and delivered under this
Indenture.

          “Obligations” means, with respect to the Company (a) the full and punctual
payment of the principal of, and premium, if any, and interest on the Notes
when due, whether at maturity, by acceleration, by redemption or otherwise, and
all other monetary obligations of the Company

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under this Indenture, the Notes and the Security Documents and (b) the
full and punctual performance within applicable grace periods of all other
obligations of the Company under this Indenture, the Notes and the Security
Documents.

          “Officer’s Certificate” means a certificate signed by the chairman of the
Board of Directors, the president or any vice president or the treasurer of the
Company and delivered to the Trustee. Each such certificate shall comply with
Section 314 of the Trust Indenture Act and include the statements provided for
in Section 11.5.

          “Opinion of Counsel” means an opinion in writing signed by legal counsel
who may be an employee of the Company or other counsel. Each such opinion shall
comply with Section 314 of the Trust Indenture Act and include the statements
provided for in Section 11.5.

          “Original Issue Date” of any Note (or portion thereof) means the earlier
of (a) the date of such Note or (b) the date of any Note (or portion thereof)
for which such Note was issued (directly or indirectly) on registration of
transfer, exchange or substitution.

          “Outstanding” (except as otherwise provided in Section 7.4), when used with reference
to Notes, means, subject to the provisions of
Section 7.4, as of any particular time, all Notes
authenticated and delivered by the Trustee under this Indenture, except

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

               (b)     Notes, or portions thereof, for the payment or redemption of which
moneys or U.S. Government Obligations (as provided for in Section 10.1) in the necessary amount shall have been deposited in trust
with the Trustee or with any Paying Agent (other than the Company) or shall
have been set aside, segregated and held in trust by the Company for the
Holders of such Notes (if the Company shall act as its own Paying Agent),
provided, that if such Notes, or portions thereof, are to be redeemed prior to
the Maturity thereof, notice of such redemption shall have been given as herein
provided, or provisions satisfactory to the Trustee shall have been made for
giving such notice; and

               (c)     Notes which shall have been paid or in substitution for which other
Notes shall have been authenticated and delivered pursuant to the terms of this
Indenture (except with respect to any such Note as to which proof satisfactory
to the Trustee is presented that such Note is held by a person in whose hands
such Note is a legal, valid and binding obligation of the Company).

          “Paying Agent” means any Person authorized by the Company to pay the
principal of (and premium, if any) or interest on any Notes on behalf of the
Company.

          “Permitted Investments” means Investments consisting of:

               (a)     Investments by the Company in the Company or in existing Subsidiaries
of the Company;

               (b)     Investments in cash equivalents;

5

 

               (c)     an Investment that is made by the Company or an existing Subsidiary
thereof in the form of any Capital Stock, bonds, notes, debentures or other
securities that are issued by a third party to the Company or such Subsidiary
solely as partial consideration for the consummation of an asset sale;

               (d)     Stock, obligations or securities received (x) in satisfaction of
judgments or (y) in connection with the sale or disposition of a Person, assets
or business;

               (e)     Investments in prepaid expenses, negotiable instruments held for
collection and lease, utility and worker’s compensation, performance and other
similar deposits;

               (f)     Investments if the Company has determined that collection is not
likely or as a result of bankruptcy or insolvency proceedings or upon the
foreclosure, perfection or enforcement of any Lien in favor of the Company or
any Subsidiary, in each case as to debt owing to the Company or any Subsidiary
that arose in the ordinary course of business of the Company or such
Subsidiary; and

               (g)     Investments in existence on the date of this Indenture.

          “Permitted Liens” means (i) Liens on property or assets of, or any Capital
Stock of, any Person existing at the time such assets are acquired by the
Company or any of its Subsidiaries, whether by merger, amalgamation,
consolidation, purchase of assets or otherwise; provided that (x) such Liens
are not created, incurred or assumed in connection with, or in contemplation
of, such assets being acquired by the Company or its Subsidiaries and (y) any
such Lien does not extend to or cover any property, Capital Stock or
indebtedness other than the property, assets, Capital Stock or indebtedness of
such Person or a Subsidiary of such Person, (ii) statutory liens or landlords’,
carriers’, warehousemen’s, unemployment insurance, surety or appeal bonds,
mechanics’, suppliers’, materialmen’s, repairmen’s or other like Liens arising
in the ordinary course of business with respect to amounts not yet delinquent
or being contested in good faith by appropriate proceedings, (iii) Liens
existing on the date of this Indenture, (iv) easements, reservation of rights
of way, restrictions (including, but not limited to, zoning and building
restrictions) and other similar easements, licenses, restrictions on the use of
properties, or minor imperfections of title that in the aggregate are not
material in amount and do not in any case materially detract from the
properties subject thereto or interfere with the ordinary conduct of the
business of the Company, (v) Liens for taxes, assessments or governmental
charges that are being contested in good faith by appropriate proceedings,
provided that any reserve or other appropriate provision as shall be required
in conformity with GAAP shall have been made therefor, (vi) Liens created or
deposits made to secure the performance of tenders, bids, leases, statutory
obligations, government contracts, performance bonds and other obligations of a
like nature incurred in the ordinary course of business, (vii) Liens in favor
of customs and revenue authorities arising as a matter of law to secure payment
of customs duties in connection with the importation of goods, (viii) Liens
incurred in the ordinary course of business of the Company or any of its
Subsidiaries with respect to $5 million at any one time outstanding and that
(a) are not incurred in connection with the borrowing of money or the obtaining
of advances or credit (other than trade credit in the ordinary course of
business) and (b) do not in the aggregate materially detract from the value of
property or materially impair the use thereof in the operation of business by
the Company or such Subsidiary, (ix) Liens securing the Notes, (x) any
extension,

6

 

renewal or replacement, in whole or in part, of any Lien described in the
foregoing clauses (ii), (vii) and (ix); provided that any such extension,
renewal or replacement shall be no more restrictive in any material respect
than the Lien so extended, renewed or replaced and shall not extend to any
other property of the Company or its Subsidiaries other than such item of
property originally covered by such Lien or by improvement thereon or additions
or accessions thereto, (xi) Liens on any property or asset acquired,
constructed or improved by the Company or any of its Subsidiaries (a “Purchase
Money Lien”), which (A) are in favor of the seller of such property or assets,
in favor of the Person constructing or improving such asset or property, or in
favor of the Person that provided the funding for the acquisition, construction
or improvement of such asset or property,(B) are created within 360 days after
the date of acquisition, construction or improvement, (C) secure the purchase
price or construction or improvement cost, as the case may be, of such asset or
property in an amount up to 100% of the fair market value (as determined by the
Board of Directors) of such acquisition, construction or improvement of such
asset or property, and (D) are limited to the asset or property so acquired,
constructed or improved (including proceeds thereof and accretions and upgrades
thereof); (xii) Liens in favor of collecting or payor banks having a right of
setoff, revocation, refund or chargeback with respect to money or instruments
of the Company or any of its Subsidiaries on deposit with or in possession of
such bank; (xiii) Liens arising from protective filings made in the appropriate
office(s) for the filing of a financing statement in the applicable
jurisdiction(s) in connection with any lease, consignment or similar
transaction otherwise permitted hereby, which filings are made for the purpose
of perfecting the interest of the secure party in the relevant items, if the
transaction were subsequently classified as a sale and secured lending
arrangement; and (xiv) in addition to Liens permitted by clauses (i) through
(xiii) above, Liens with respect to obligations that do not exceed $10.0
million at any one time outstanding.

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

          “PORTAL Market” means Private Offerings, Resales and Trading through
Automatic Linkages Market.

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

          “QIB” or “Qualified Institutional Buyer” means “qualified institutional
buyer” as such term is defined in Rule 144A under the Act.

          “Redemption Date” shall have the meaning set forth in Section 3.14.

          “Redemption Notice” shall have the meaning set forth in Section 3.14.

          “Redemption Price” shall have the meaning set forth in Section 3.14.

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          “Registered Global Note” means a Note evidencing all or a part of a series
of Registered Notes, issued to the Depositary in accordance with Section 2 and
bearing the legend prescribed in Section 2.7 and any other legend required by
the Depositary for such series.

          “Regular Record Date” for the interest payable on any Interest Payment
Date on the Notes means each March 15 and September 15.

          “Registered Note” means any Note registered on the Note Register of the
Company.

          “Repurchase Date” has the meaning specified in Section 3.11.

          “Repurchase Price” has the meaning specified in Section 3.11.

          “Responsible Officer” when used with respect to the Trustee means the
president, any vice president (whether or not designated by numbers or words
added before or after the title “Vice President”), the cashier, the secretary,
the treasurer, any trust officer, any assistant trust officer, any assistant
vice president, any assistant cashier, any assistant secretary, any assistant
treasurer, or any other officer or assistant officer of the Trustee customarily
performing functions similar to those performed by the persons who at the time
shall be such officers, respectively, or to whom any corporate trust matter is
referred because of his or her knowledge of and familiarity with the particular
subject.

          “Restricted Note” has the meaning set forth in Section 2.8(b).

          “Rule 144” means Rule 144 under the Act.

          “Rule 144A” means Rule 144A under the Act.

          “Rule 144(k)” means Rule 144(k) under the Act.

          “Security Agreement” means the Security Agreement, dated as of the date of
this Indenture, made by the Company in favor of the Collateral Agent and all
amendments and supplements thereto.

          “Security Documents” means the Security Agreement and any other document
or agreement that secures the Notes.

          “Security Register” and “Security Registrar” have the respective meanings
specified in Section 2.7.

          “Significant Subsidiary” means a Subsidiary of the Company which at the
time of determination either (i) had tangible assets which, as of the Company’s
most recent quarterly consolidated balance sheet, constituted at least 5% of
Consolidated Tangible Assets as of such date, or (ii) had revenues for the
12-month period ending on the date of the Company’s most recent quarterly
consolidated statement of income which constituted at least 5% of the Company’s
total consolidated revenues for such period.

8

 

          “Special Record Date” for the payment of any Defaulted Interest means a
date fixed by the Trustee pursuant to Section 2.6.

          “Stated Maturity,” when used with respect to any Note or any installment
of interest thereon, means the date specified in such Note as the fixed date on
which the principal of such Note or such installment of interest is due and
payable.

          “Subsidiary” of any Person means (a) any corporation of which Common
Equity having ordinary voting power to elect a majority of the directors of
such corporation is owned by such Person directly or through one or more other
subsidiaries of such Person and (b) any entity other than a corporation in
which such Person, directly or indirectly, owns at least 50% of the Common
Equity of such entity and has the authority to manage such entity on a
day-to-day basis.

          “TIA” means the Trust Indenture Act of 1939 (15 U.S. Code Sections
77aaa-77bbbb) as in effect on the date of this Indenture, except as provided in
Section 8.6.

          “Transfer Restriction Termination Date” means the earlier of the first
date on which (i) the Notes (other than such Notes acquired by the Company or
any Affiliate thereof since the issue date of such Notes) may be sold pursuant
to Rule 144(k) (or any successor provision) and (ii) all such Notes have been
exchanged or sold pursuant to an effective registration statement.

          “Trustee” means the Person identified as “Trustee” in the first paragraph
hereof and, subject to the provisions of Article VI, shall also include any
successor trustee.

          “U.S. Government Obligations” shall have the meaning set forth in Section 10.1(a).

          “Voting Stock” means stock of any class or classes having general voting
power under ordinary circumstances to elect a majority of the board of
directors, managers or trustees of the corporation in question, provided, that,
for the purposes hereof, stock which carries only the right to vote
conditionally on the happening of an event shall not be considered voting stock
whether or not such event shall have happened.

     Section 1.2. Incorporation by Reference of Trust Indenture Act.

          Whenever this Indenture refers to a provision of the TIA, the provision is
incorporated by reference in and made a part of this Indenture.

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

          “indenture securities” means the Notes;

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

          “indenture to be qualified” means this Indenture;

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

          “obligor” on the Notes means the Company and any successor obligor upon
the Notes.

9

 

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

ARTICLE II.

THE NOTES

     Section 2.1. Amount of Notes.

          The Company has authorized and, on the date of this Indenture, the Trustee
shall authenticate, the Notes for original issue in the initial aggregate
principal amount of $71,000,000 upon a written order of the Company in the form
of an Officer’s Certificate of the Company. Such written order shall specify
the amount of Notes to be authenticated and the date on which the Notes are to
be authenticated. The Company has also authorized the issuance of certain
Additional Notes as provided in Section 3.1(b). The Notes issued on the date
of this Indenture and the Additional Notes shall be treated as a single class
for all purposes under the Indenture.

     Section 2.2.   Form and Dating.

               (a)     General. The Notes shall be substantially in the form of Exhibit A
hereto. The Notes may have notations, legends, endorsements required by law,
stock exchange rule or usage. Each Note shall be dated the date of its
authentication. The Notes shall be in denominations of $1.00 and integral
multiples thereof.

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

          Upon their original issuance, Notes may be issued in the form of one or
more Global Notes registered in the name of the Depositary or its nominee and
deposited with the Trustee, as custodian for the Depositary, for credit by the
Depositary to the respective accounts of beneficial owners of the Notes
represented thereby (or such other accounts as they may direct).

               (b)     Global Notes. Notes issued in global form shall be substantially in
the form of Exhibit A attached hereto (including the Global Note Legend thereon
and the “Schedule of Exchanges of Interests in the Global Note” attached
thereto, each a “Global Note”). Each Global Note shall represent such of the
outstanding Notes as shall be specified therein and each shall provide that it
shall represent the aggregate principal amount of outstanding Notes from time
to time endorsed thereon and that the aggregate principal amount of outstanding
Notes represented thereby may from time to time be reduced or increased, as
appropriate, to reflect additional issuances, exchanges and redemptions. Any
endorsement of a Global Note to reflect the amount of any increase or decrease
in the aggregate principal amount of outstanding Notes represented thereby
shall be made by the Trustee or in accordance with instructions given by the
Holder thereof.

10

 

          Except as set forth in Section 2.7 hereof, the Global Notes may be
transferred, in whole and not in part, only to another nominee of the
Depositary or to a successor of the Depositary or its nominee.

               (c)     Book-Entry Provisions. This Section 2.2(c) shall apply only to Global
Notes deposited with or on behalf of the Depositary.

          The Company shall execute and the Trustee shall, in accordance with this
Section 2.2(c), authenticate and deliver the Global Notes that (i) shall be
registered in the name of the Depositary or the nominee of the Depositary and
(ii) shall be delivered by the Trustee to the Depositary or a nominee therefor
or a custodian therefor.

          Participants shall have no rights either under this Indenture with respect
to any Global Note held on their behalf by the Depositary or under such Global
Note, and the Depositary may be treated by the Company, the Trustee and any
agent of the Company or the Trustee as the absolute owner of such Global Note
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 impair, as between the Depositary
and its participants, the operation of customary practices of such Depositary
governing the exercise of the rights of an owner of a beneficial interest in
any Global Note.

               (d)     Definitive Notes. Notes issued in definitive form shall be
substantially in the form of Exhibit A attached hereto (but without the Global
Note Legend thereon, without certain phrases specified in Exhibit A to be for
Global Notes only and without the “Schedule of Exchanges of Interests in the
Global Note” attached thereto) and shall be printed, typewritten, lithographed
or engraved or produced by any combination of these methods or may be produced
by any other method permitted by the rules of any securities exchange on which
the Notes may be listed, as evidenced by the execution of such Notes (the
“Definitive Notes”).

               (e)     Provisions Applicable to Forms of Notes. The Notes may also have such
additional provisions, omissions, variations or substitutions as are not
inconsistent with the provisions of this Indenture, and may have such letters,
numbers or other marks of identification and such legends or endorsements
placed thereon as may be required to comply with this Indenture, any applicable
law or with any rules made pursuant thereto or with the rules of any securities
exchange or governmental agency or as may be determined consistently herewith
by the Officers of the Company executing such Notes, as conclusively evidenced
by their execution of such Notes. All Notes will be otherwise substantially
identical except as provided herein.

          Subject to the provisions of this Article 2, a Holder of a Global Note may
grant proxies and otherwise authorize any Person to take any action that a
Holder is entitled to take under this Indenture or the Notes.

     Section 2.3.   Form of Trustee’s Certificate of Authentication.

          The Trustee’s certificate of authentication on all Notes shall be in
substantially the following form:

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          “This is one of the Notes referred to in the within-mentioned Indenture.

	 	 	 	 	 	 	 
	 	 	 	 	The Bank of New York

as Trustee
	 	 	 	 	 	 	 
	Dated:	 	 	 	 	 	 
	 	 
	 	 	 	 
	 	 	 	 	By:	 	 
	 	 	 	 	 	

	 	 	 	 	 	 	Authorized Signatory”

If at any time there shall be an Authenticating Agent appointed with respect to
the Notes, then the Trustee’s Certificate of Authentication to be borne by the
Notes shall be substantially as follows:

          “This is one of the Notes referred to in the within-mentioned Indenture.

	 	 	 	 	 
	 	 	The Bank of New York

as Trustee
	 	 	 	 	 
	 	 	
By:  	 	 
	 	 	 	

	 	 	 	 	as Authenticating Agent
	 	 	 	 	 
	 	 	
By:  	 	 
	 	 	 	

	 	 	 	 	Authorized Signatory”

     Section 2.4.   Execution of Notes.

          The Notes shall be signed on behalf of the Company by the chairman or vice
chairman of its Board of Directors or its president, or any executive (senior
or other), a vice president or its treasurer. Such signatures may be the manual
or facsimile signatures of the present or any future such officers.
Typographical and other minor errors or defects in any such reproduction of the
seal or any such signature shall not affect the validity or enforceability of
any Note that has been duly authenticated and delivered by the Trustee.

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

     Section 2.5.   Certificate of Authentication.

          Only such Notes as shall bear thereon a certificate of authentication
substantially in the form hereinbefore recited, executed by the Trustee by the
manual signature of one of its

12

 

authorized officers, shall be entitled to the benefits of this Indenture
or be valid or obligatory for any purpose. The execution of such certificate by
the Trustee upon any Note executed by the Company shall be conclusive evidence
that the Note so authenticated has been duly authenticated and delivered
hereunder and that the Holder is entitled to the benefits of this Indenture.

     Section 2.6.   Denomination and Date of Notes; Payments of Interest.

          The Notes shall be issuable as Registered Notes, in denominations of $1.00
and any integral multiples thereof. Each Registered Note shall be dated the
date of its authentication.

          Interest on any Note which is payable, and is punctually paid or duly
provided for, on any Interest Payment Date shall be paid to the Person in whose
name that Note (or one or more Predecessor Notes) is registered at the close of
business on the Regular Record Date for such interest. At the option of the
Company, interest on any Note may be paid by mailing a check to the address of
the Holder thereof as such address appears in the Security Register except to
such extent such interest is paid by issuing Additional Notes.

          If the principal of, premium, if any, or interest due and payable on the
Notes shall not be paid or duly provided for when due, such amount (the
“Defaulted Interest”) shall thereafter bear interest at a per annum rate 2%
greater than the rate which would otherwise be applicable until such amount is
paid or duly provided for. Such Defaulted Interest shall forthwith cease to be
payable to the Holder on the relevant Regular Record Date by virtue of having
been such Holder, and such Defaulted Interest may be paid by the Company, at
its election in each case, as provided in clause (a) or (b) below:

               (a)     The Company may elect to make payment of any Defaulted Interest to the
Persons in whose names the Notes (or their respective Predecessor Notes) are
registered at the close of business on a Special Record Date for the payment of
such Defaulted Interest, which shall be fixed in the following manner. The
Company shall notify the Trustee in writing of the amount of Defaulted Interest
proposed to be paid on each Note and the date of the proposed payment, and at
the same time the Company shall deposit with the Trustee an amount of money
equal to the aggregate amount proposed to be paid in respect of such Defaulted
Interest or shall make arrangements satisfactory to the Trustee for such
deposit prior to the date of the proposed payment, such money when deposited to
be held in trust for the benefit of the Persons entitled to such Defaulted
Interest as in this clause provided. Thereupon the Trustee shall fix a Special
Record Date for the payment of such Defaulted Interest which shall be not more
than 15 days and not less than 10 days prior to the date of the proposed
payment and not less than 10 days after the receipt by the Trustee of the
notice of the proposed payment. The Trustee shall promptly notify the Company
of such Special Record Date and, in the name and at the expense of the Company,
shall cause notice of the proposed payment of such Defaulted Interest and the
Special Record Date therefor to be mailed, first-class postage prepaid, to each
Holder at his or her address as it appears in the Note Register, not less than
10 days prior to such Special Record Date. Notice of the proposed payment of
such Defaulted Interest and the Special Record Date therefor having been so
mailed, such Defaulted Interest shall be paid to the Persons in whose names the
Notes (or their respective Predecessor Notes) are registered at the close of
business on such Special Record Date and shall no longer be payable pursuant to
the following clause (b).

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

          Subject to the foregoing provisions of this Section, each Note delivered
under this Indenture upon registration of transfer of or in exchange for or in
lieu of any other Note shall carry the rights to interest accrued and unpaid,
and to accrue, which were carried by such other Note.

     Section 2.7.   Registration, Transfer and Exchange.

               (a)     The Company will keep at each office or agency to be maintained for
the purpose as provided in Section 3.2 the register or registers (the register
maintained in such office and in any other office or agency of the Company
designated pursuant to Section 3.2 being herein sometimes collectively referred
to as the “Security Register”) in which, subject to such reasonable regulations
as the Company may prescribe, it will provide for the registration of
Registered Notes and the registration of transfer of Registered Notes. Such
Security Register shall be in written form in the English language or in any
other form capable of being converted into such form within a reasonable time.
At all reasonable times such Security Register or registers shall be open for
inspection by the Trustee. The Trustee is hereby appointed “Security
Registrar” for the purpose of registering Notes and transfers and exchanges of
Notes as herein provided.

          Upon due presentation for registration of transfer of any Registered Note
at any such office or agency to be maintained for the purpose as provided in
Section 3.2, the Company shall execute and the Trustee shall authenticate and
deliver in the name of the transferee or transferees a new Registered Note, for
the same maturity date, interest rate and original issue date in authorized
denominations for a like aggregate principal amount.

          At the option of the Holder thereof, Registered Notes (other than a
Registered Global Note, except as set forth below) may be exchanged for a
Registered Note or Registered Notes having authorized denominations and an
equal aggregate principal amount, upon surrender of such Registered Notes to be
exchanged at the agency of the Company that shall be maintained for such
purpose in accordance with Section 3.2 and upon payment, if the Company shall
so require, of the charges hereinafter provided. All Notes surrendered upon any
exchange or transfer provided for in this Indenture shall be promptly canceled
and, upon the Company’s written request, returned to the Company.

          All Registered Notes presented for registration of transfer, exchange,
redemption or payment shall (if so required by the Company or the Trustee) be
duly endorsed, or be accompanied by a written instrument or instruments of
transfer in form satisfactory to the Company and the Trustee duly executed, by
the Holder or his attorney duly authorized in writing.

14

 

          The Company may require payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in connection with any exchange
or registration of transfer of Notes. No service charge shall be made for any
such transaction.

          The Company shall not be required to exchange or register a transfer of
(a) any Notes for a period of 15 days preceding the first mailing of notice of
redemption of Notes to be redeemed or (b) any Notes selected, called or being
called for redemption, in whole or in part, except, in the case of any Note to
be redeemed in part, the portion thereof not so to be redeemed.

          Notwithstanding any other provision of this Section 2.7, unless and until
it is exchanged in whole or in part for Notes in definitive registered form, a
Registered Global Note representing all or a portion of the Notes may not be
transferred except as a whole by the Depositary to a nominee of such Depositary
or by a nominee of such Depositary to such Depositary or another nominee of
such Depositary or by such Depositary or any such nominee to a successor
Depositary or a nominee of such successor Depositary.

          If at any time the Depositary for any Registered Notes represented by one
or more Registered Global Notes notifies the Company that it is unwilling or
unable to continue as Depositary for such Registered Notes or if at any time
the Depositary for such Registered Notes shall no longer be eligible under this
Indenture, the Company shall appoint a successor Depositary eligible under this
Indenture with respect to such Registered Notes. If a successor Depositary
eligible under this Indenture for such Registered Notes is not appointed by the
Company within 90 days after the Company receives such notice or becomes aware
of such ineligibility, the Company will execute, and the Trustee, upon receipt
of an Officer’s Certificate for the authentication and delivery of definitive
Notes, will authenticate and deliver, Notes in definitive registered form, in
any authorized denominations, in an aggregate principal amount equal to the
principal amount of the Registered Global Note or Notes representing such
Registered Notes in exchange for such Registered Global Note or Notes.

          The Company may at any time and in its sole discretion determine that the
Registered Notes issued in the form of one or more Registered Global Notes
shall no longer be represented by a Registered Global Note or Notes. In such
event the Company will execute, and the Trustee, upon receipt of any Officer’s
Certificate for the authentication and delivery of definitive Notes, will
authenticate and deliver, Notes in definitive registered form without coupons,
in any authorized denominations, in an aggregate principal amount equal to the
principal amount of the Registered Global Note or Notes representing such
Registered Notes, in exchange for such Registered Global Note or Notes.

          With respect to Notes represented by a Registered Global Note, the
Depositary for such Registered Global Note may surrender such Registered Global
Note in exchange in whole or in part for Notes in definitive registered form on
such terms as are acceptable to the Company and such Depositary. Thereupon, the
Company shall execute, and the Trustee shall authenticate and deliver, without
service charge,

		
	 	     (i)     to the Person specified by such Depositary a new Registered
Note or Notes, of any authorized denominations as requested by such
Person, in an aggregate

15

 

		
	 	principal amount equal to and in exchange for such Person’s
beneficial interest in the Registered Global Note; and
	 
	 	     (ii)     to such Depositary a new Registered Global Note in a
denomination equal to the difference, if any, between the principal
amount of the surrendered Registered Global Note and the aggregate
principal amount of Registered Notes authenticated and delivered
pursuant to clause (i) above.

          Upon the exchange of a Registered Global Note for Notes in definitive
registered form, in authorized denominations, such Registered Global Note shall
be canceled by the Trustee or an agent of the Company or the Trustee. Notes in
definitive registered form issued in exchange for a Registered Global Note
pursuant to this Section 2.7 shall be registered in such names and in such
authorized denominations as the Depositary for such Registered Global Note,
pursuant to instructions from its direct or indirect participants or otherwise,
shall instruct the Trustee or an agent of the Company or the Trustee. The
Trustee or such agent shall deliver such Notes to or as directed by the Persons
in whose names such Notes are so registered.

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

               (b)     Notes that are distributed to QIBs and to Non-U.S. Persons may be
represented by a single, permanent Global Note (which may be subdivided) in
definitive form.

          Except as provided below, beneficial owners of a Note in global form shall
not be entitled to have certificates registered in their names, will not
receive or be entitled to receive physical delivery of certificates in
definitive form and will not be considered Holders of such Notes in global
form.

		
	 	     (i)     So long as the Notes are eligible for book-entry settlement,
and to the extent that Notes are held by QIBs or Non-U.S. Persons, as
the case may be, in a Global Note, or unless otherwise required by
law, no definitive Note, or portion thereof, in respect of which the
Company or an Affiliate of the Company held any beneficial interest
shall be included in such Global Note until such definitive Note is
freely tradable in accordance with Rule 144(k); provided that the
Trustee shall, at the written request of the Company, issue Notes in
definitive form upon any transfer of a beneficial interest in the
Global Note to the Company or any Affiliate of the Company.

          Any Global Note may be endorsed with or have incorporated in the text
thereof such legends or recitals or changes not inconsistent with the
provisions of this Indenture as may be required by the Depositary, by the New
York Stock Exchange or by the National Association of Notes Dealers, Inc. in
order for the Notes to be tradable on the PORTAL Market or as may be required
for the Notes to be tradable on any other market developed for trading of Notes
pursuant to Rule 144A or required to comply with any applicable law or any
regulation thereunder or with the rules and regulations of any Notes exchange
upon which the Notes may be listed or traded or

16

 

to conform with any usage with respect thereto, or to indicate any special
limitations or restrictions to which any particular Notes are subject.

		
	 	     (ii)     Each Note that bears or is required to bear the legend set
forth in this Section 2.7(b) (a “Restricted Note”) shall be subject to
the restrictions on transfer provided in the legend set forth in this
Section 2.7(b), unless such restrictions on transfer shall be waived
by the written consent of the Company, and the Holder of each
Restricted Note, by such Holder’s acceptance thereof, agrees to be
bound by such restrictions on transfer. As used in this Section
2.7(b), the term “transfer” encompasses any sale, pledge, transfer or
other disposition of any Restricted Note.

          Prior to the Transfer Restriction Termination Date, any certificate
evidencing a Note shall bear a legend in substantially the following form,
unless otherwise agreed by the Company (with written notice thereof to the
Trustee):

	 	 	 	THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN
A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED
STATES SECURITIES ACT OF 1933 (THE “ACT”), AND THIS SECURITY
MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT
OR AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER STATING
THAT SUCH OFFER, SALE OR TRANSFER IS BEING MADE IN
COMPLIANCE WITH ALL APPLICABLE FEDERAL AND STATE SECURITIES
LAWS.
	 
	 	 	 	THE HOLDER HEREOF, BY ITS ACCEPTANCE HEREOF, IS DEEMED TO
HAVE AGREED TO BE BOUND BY THE PROVISIONS OF THE
REGISTRATION RIGHTS AGREEMENT, DATED AS OF APRIL 17, 2003,
BY AND AMONG THE COMPANY AND THE PERSONS LISTED ON THE
SIGNATURE PAGES THERETO (THE “REGISTRATION RIGHTS
AGREEMENT”).

Following the Transfer Restriction Termination Date, any Note or security
issued in exchange or substitution therefor (other than Notes acquired by the
Company or any Affiliate thereof since the issue date of the Notes) may upon
surrender of such Note for exchange to the Security Registrar in accordance
with the provisions of this Section 2.7, be exchanged for a new Note or Notes,
of like tenor and aggregate principal amount, which shall not bear the
restrictive legend required by this Section 2.7(b).

     Section 2.8.   Mutilated, Defaced, Destroyed, Lost and Stolen Notes.

               (a)     In case any temporary or definitive Note appertaining to any Note
shall be mutilated, defaced, destroyed, lost or stolen, the Company in its
discretion may execute and, upon the written request of any officer of the
Company, the Trustee shall authenticate and deliver, a new Note of the same
maturity date, interest rate and original issue date, bearing a number or other
distinguishing symbol not contemporaneously outstanding, in exchange and

17

 

substitution for the mutilated or defaced Note, or in lieu of and in
substitution for the Note so destroyed, lost or stolen. In every case the
applicant for a substitute Note shall furnish to the Company and to the Trustee
and any agent of the Company or the Trustee such security or indemnity as may
be required by them to indemnify and defend and to save each of them harmless
and, in every case of destruction, loss or theft, evidence to their
satisfaction of the destruction, loss or theft of such Note and of the
ownership thereof, and in the case of mutilation or defacement shall surrender
the Note to the Trustee or such agent.

               (b)     Upon the issuance of any substitute Note, 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) or its agent connected therewith. In case any Note
which has matured or is about to mature or has been called for redemption in
full shall become mutilated or defaced or be destroyed, lost or stolen, the
Company may instead of issuing a substitute Note, pay or authorize the payment
of the same (without surrender thereof except in the case of a mutilated or
defaced Note), if the applicant for such payment shall furnish to the Company
and to the Trustee and any agent of the Company or the Trustee such security or
indemnity as any of them may require to save each of them harmless, and, in
every case of destruction, loss or theft, the applicant shall also furnish to
the Company and the Trustee and any agent of the Company or the Trustee
evidence to their satisfaction of the destruction, loss or theft of such Note
and of the ownership thereof.

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

     Section 2.9.   Cancellation of Notes; Destruction Thereof.

          All Notes surrendered for payment, redemption, or registration of transfer
or exchange, if surrendered to the Company or any agent of the Company or the
Trustee or any agent of the Trustee, shall be delivered to the Trustee or its
agent for cancellation or, if surrendered to the Trustee, shall be canceled by
it; and no Notes shall be issued in lieu thereof except as expressly permitted
by any of the provisions of this Indenture. The Trustee or its agent shall
dispose of canceled Notes held by it in its customary manner. If the Company or
its agent shall acquire any of the Notes, such acquisition shall not operate as
a redemption or satisfaction of the indebtedness represented by such Notes
unless and until the same are delivered to the Trustee or its agent for
cancellation.

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     Section 2.10.   Temporary Notes.

          Pending the preparation of definitive Notes, the Company may execute and
the Trustee shall authenticate and deliver temporary Notes (printed,
lithographed, typewritten or otherwise reproduced, in each case in form
satisfactory to the Trustee). Temporary Notes shall be issuable as Registered
Notes, of any authorized denomination, and substantially in the form of the
definitive Notes but with such omissions, insertions and variations as may be
appropriate for temporary Notes, all as may be determined by the Company with
the concurrence of the Trustee as evidenced by the execution and authentication
thereof. Temporary Notes may contain such references to any provisions of this
Indenture as may be appropriate. Every temporary Note shall be executed by the
Company and be authenticated by the Trustee upon the same conditions and in
substantially the same manner, and with like effect, as the definitive Notes.
Without unreasonable delay the Company shall execute and shall furnish
definitive Notes and thereupon temporary Registered Notes may be surrendered in
exchange therefore without charge at each office or agency to be maintained by
the Company for that purpose pursuant to Section 3.2, and the Trustee shall
authenticate and deliver in exchange for such temporary Notes an equal
aggregate principal amount of definitive Notes having authorized denominations.
Until so exchanged, the temporary Notes shall be entitled to the same benefits
under this Indenture as definitive Notes.

     Section 2.11.   CUSIP Numbers.

          The Company in issuing the Notes may use “CUSIP” numbers (if then
generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices
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 Notes or as contained in any notice and that reliance may be placed only
on the other identification numbers printed on the Notes, and any such
redemption shall not be affected by any defect in or omission of such numbers.
The Company will promptly notify the Trustee of any change in the “CUSIP”
numbers.

     Section 2.12.   Computation of Interest.

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

ARTICLE III.

COVENANTS OF THE COMPANY

     Section 3.1.   Payment of Principal and Interest.

               (a)     The Company covenants and agrees that it will duly and punctually pay
or cause to be paid the principal of, premium, if any, and interest on, if any,
each of the Notes (together with any additional amounts payable pursuant to the
terms of such Notes) at the place or places, at the respective time or times
and in the manner provided in such Notes and in this Indenture. The interest,
if any, on Registered Notes (together with any additional amounts payable
pursuant to the terms of such Notes and this Indenture) shall be payable only
to or upon

19

 

the written order of the Holders thereof and, at the option of the
Company, may be paid by wire transfer or by mailing checks for such interest
payable to or upon the written order of such Holders at their last addresses as
they appear on the Security Register of the Company, and, if applicable, by
issuing Additional Notes.

               (b)     The Company shall pay interest on the Notes from and including the
date of initial issuance of the Notes, or from and including the most recent
Interest Payment Date to which interest has been paid or duly provided for,
semiannually on each April 1 and October 1, commencing October 1, 2003, at an
initial interest rate of 10% per annum (the “Interest Rate”), until the
principal hereof is paid or made available for payment, provided that the
Interest Rate shall automatically be reduced to 9% per annum immediately
following the next Interest Payment Date upon the (i) listing of the Company’s
common stock for trading on a U.S. national securities exchange, or (ii)
approval for trading of the Company’s common stock on Nasdaq, including the
Nasdaq Small Cap Market. On each of the October 1, 2003 and April 1, 2004
Interest Payment Dates, the Company shall pay the interest due and payable on
each such date with a combination of cash and additional Notes as follows: (i)
in cash equivalent to 6% per annum of the principal amount; and (ii) in
additional Notes having an aggregate principal amount equal to the remainder of
the cash interest that would have been otherwise payable in the absence of this
sentence (the “Additional Notes”).

     Section 3.2.   Offices for Payments, Etc.

          So long as any Registered Notes are authorized for issuance pursuant to
this Indenture or are outstanding hereunder, the Company will maintain in the
Borough of Manhattan, The City of New York, an office or agency where the
Registered Notes of each series may be presented for payment, where the Notes
may be presented for exchange as is provided in this Indenture and where the
Registered Notes may be presented for registration of transfer as in this
Indenture provided.

          The Company will maintain in the Borough of Manhattan, The City of New
York, an office or agency where notices and demands to or upon the Company in
respect of the Notes or this Indenture may be served.

          The Company will give to the Trustee written notice of the location of
each such office or agency and of any change of location thereof. In case the
Company shall fail to maintain any agency required by this Section to be
located in the Borough of Manhattan, The City of New York, or shall fail to
give such notice of the location or for any change in the location of any of
the above agencies, presentations and demands may be made and notices may be
served at the Corporate Trust Office of the Trustee.

          The Company may from time to time designate one or more additional offices
or agencies where the Notes may be presented for payment, where the Notes may
be presented for exchange as provided in this Indenture and where the
Registered Notes may be presented for registration of transfer as in this
Indenture provided, and the Company may from time to time rescind any such
designation, as the Company may deem desirable or expedient; provided, that no
such designation or rescission shall in any manner relieve the Company of its
obligations to

20

 

maintain the agencies provided for in this Section. The Company shall give
to the Trustee prompt written notice of any such designation or rescission
thereof.

     Section 3.3.   Appointment to Fill a Vacancy in Office of Trustee.

          The Company, whenever necessary to avoid or fill a vacancy in the office
of Trustee, will appoint, in the manner provided in Section 6.11, Trustee, so that there shall at all times be a Trustee with respect
to the Notes hereunder.

     Section 3.4.   Paying Agents.

          Whenever the Company shall appoint a Paying Agent other than the Trustee
with respect to the Notes, it will cause such Paying Agent to execute and
deliver to the Trustee an instrument in which such agent shall agree with the
Trustee, subject to the provisions of this Section,

               (a)     that it will hold all sums received by it as such agent for the
payment of the principal of or interest on the Notes (whether such sums have
been paid to it by the Company or by any other obligor on the Notes) in trust
for the benefit of the Holders of the Notes, or Coupons appertaining thereto,
if any, or of the Trustee;

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

               (c)     that it will pay any such sums so held in trust by it to the Trustee
upon the Trustee’s written request at any time during the continuance of the
failure referred to in the foregoing clause (b).

          The Company will, on or prior to each due date of the principal of or
interest on the Notes, deposit with the Paying Agent a sum sufficient to pay
such principal or interest so becoming due, and (unless such Paying Agent is
the Trustee) the Company will promptly notify the Trustee of any failure to
take such action.

          If the Company shall act as its own Paying Agent with respect to the
Notes, it will, on or before each due date of the principal of or interest on
the Notes, set aside, segregate and hold in trust for the benefit of the
Holders of the Notes a sum sufficient to pay such principal or interest so
becoming due. The Company will promptly notify the Trustee of any failure to
take such action.

          Anything in this Section to the contrary notwithstanding, but subject to
Section 10.1,the Company may at any time, for the
purpose of obtaining a satisfaction and discharge with respect to the Notes
hereunder, or for any other reason, pay or cause to be paid to the Trustee all
sums held in trust by the Company or any Paying Agent hereunder, as required by
this Section, such sums to be held by the Trustee upon the trusts herein
contained.

          Anything in this Section to the contrary notwithstanding, the agreement to
hold sums in trust as provided in this Section is subject to the provisions of
Section 10.3 and Section 10.4.

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     Section 3.5.   Compliance Certificates.

          The Company will furnish to the Trustee on or before January 31 in each
year (beginning with January 31, 2004) a brief certificate (which need not
comply with Section 11.5) from the principal executive,
financial or accounting officer of the Company stating that in the course of
the performance by the signer of his or her duties as an officer of the Company
he or she would normally have knowledge of any default or non-compliance by the
Company in the performance of any covenants or conditions contained in this
Indenture, stating whether or not he or she has knowledge of any such default
or non-compliance and, if so, describing each such default or non- compliance
of which the signer has knowledge and the nature thereof.

     Section 3.6.   Corporate Existence.

          Subject to Article IX, the Company will do or cause to be done all things
necessary to preserve and keep in full force and effect its corporate existence
and the rights (charter and statutory), licenses and franchises of the Company
and its Subsidiaries; provided, that the Company shall not be required to
preserve any such right, license or franchise, if, in the judgment of the
Company, the preservation thereof is no longer desirable in the conduct of the
business of the Company and its Subsidiaries taken as a whole and the loss
thereof is not disadvantageous in any material respect to the Securityholders.

     Section 3.7.   Maintenance of Properties.

          The Company will cause all properties used in or useful in the conduct of
its business or the business of any Subsidiary to be maintained and kept in
good condition, repair, and working order and supplied with all necessary
equipment and will cause to be made all necessary repairs, renewals,
replacements, betterments and improvements thereof, all as in the judgment of
the Company may be necessary, so that the business carried on in connection
therewith may be properly and advantageously conducted at all time except to
the extent that the Company may be prevented from so doing by circumstances
beyond its control; provided, that nothing in this Section shall prevent the
Company from discontinuing the operation or maintenance of any of such
properties, or disposing of any of them, if such discontinuance or disposal is,
in the judgment of the Company desirable in the conduct of the business of the
Company or any Subsidiary and not disadvantageous in any material respect to
the Securityholders.

     Section 3.8.   Payment of Taxes and Other Claims.

          The Company will pay or discharge or cause to be paid or discharged,
before the same shall become delinquent: (a) all taxes, assessments and
governmental charges levied or imposed upon the Company or any Subsidiary or
upon the income, profits or property of the Company or any Subsidiary; and (b)
all lawful claims for labor, materials, and supplies, which, if unpaid, might
by law become a lien upon the property of the Company or any Subsidiary;
provided, that the Company shall not be required to pay or discharge or cause
to be paid or discharged any such tax, assessment, charge or claim whose
amount, applicability or validity is being contested in good faith by
appropriate proceedings; and provided further that the Company shall not be
required to cause to be paid or discharged any such tax, assessment, charge or
claim if the Company shall determine that such payment is not advantageous to
the conduct of the business

22

 

of the Company and its Subsidiaries taken as a whole and that the failure
so to pay or discharge is not disadvantageous in any material respect to the
Securityholders.

     Section 3.9.   Usury Laws.

          The Company covenants and agrees: (a) not to insist upon, or plead, or in
any manner whatsoever claim the benefit or the advantage of the usury law of
any jurisdiction against the Trustee or the Holders in connection with any
claim, action or proceeding which may be brought by the Trustee or the Holders
in order to enforce any right or remedy under this Indenture; and (b) to resist
any and all efforts to compel the Company to claim the benefit or the advantage
of the usury law of any jurisdiction against the Trustee or the Holders in
connection with any claim, action or proceeding which may be brought by the
Trustee or the Holders in order to enforce any right or remedy under this
Indenture.

     Section 3.10.   Perfection of Security Interests.

          The Company shall preserve the Liens granted under the Security Documents
and undertake all actions which are required by applicable law or necessary or
appropriate in the reasonable judgment of the Trustee or the Collateral Agent
to (a) maintain the Liens of the Collateral Agent in the Collateral in full
force and effect at all times (including the priority thereof), and (b)
preserve and protect the Collateral and protect and enforce the Company’s
rights and title and the rights of the Collateral Agent to the Collateral,
including, without limitation, the making or delivery of all filings and
recordations, the payment of fees and other charges and the issuance of
supplemental documentation for such purposes.

     Section 3.11.   Repurchase Offer.

          The Notes shall be subject to repurchase at the option of the Holders (a
“Repurchase Offer”) upon the following terms and conditions:

               (a)     Right to Require Repurchase.

          In the event that a Change of Control (as hereinafter defined) shall occur
after the date of the issuance of the Notes, then each Holder of Notes shall
have the right, at the Holder’s option, to require the Company to repurchase,
and upon the exercise of such right, the Company shall repurchase all of such
Holder’s Notes, or any portion of the principal amount thereof that is an
integral multiple of $1,000, on the date (the “Repurchase Date”) that is 30
days after the date of the Company Notice (as defined below, for cash at a
purchase price (the “Repurchase Price”) equal to 100% of the principal amount
of the Notes to be repurchased, together with accrued and unpaid interest to
the Repurchase Date. Such right to require the repurchase of the Notes shall
not continue after a discharge of the Company from its obligations with respect
to the Notes in accordance with Article X of this Indenture, unless a Change of
Control shall have occurred prior to such discharge.

               (b)     Notices; Method of Exercising Repurchase Right, Etc.

          Unless the Company shall have theretofore called for redemption of all of
the Outstanding Notes, on or before the 15th calendar day after the occurrence
of a Change of

23

 

Control, the Company or, at the request (and expense) of the Company, the
Trustee, shall mail to all Holders of Notes a notice (the “Company Notice”) of
the occurrence of the Change of Control and of the repurchase right set forth
herein arising as a result thereof.

          Each notice of a repurchase right shall state:

		
	 	     (i)     the Repurchase Date,
	 
	 	     (ii)     the date by which the repurchase right must be exercised,
	 
	 	     (iii)     the Repurchase Price for the Notes, and
	 
	 	     (iv)     a description of the procedure which a Holder of Notes must
follow to exercise a repurchase right.

          No failure of the Company to give the foregoing notices or defect therein
shall limit any Holder’s right to exercise a repurchase right or affect the
validity of the proceedings for the repurchase of Notes.

          If any of the foregoing provisions are inconsistent with applicable law,
such law shall govern.

          To exercise a repurchase right, a Holder of Notes shall deliver to the
Company (or an agent designated by the Company for such purpose) and to the
Trustee on or before the close of business on the Repurchase Date (i) written
notice of the Holder’s exercise of such right, which notice shall set forth the
name of the Holder, the principal amount of the Notes to be repurchased, a
statement that an election to exercise the repurchase right is being made
thereby, and (ii) the Notes with respect to which the repurchase right is being
exercised, duly endorsed for the transfer to the Company. Such written notice
shall be irrevocable, except that the right of the Holder to convert the Notes
with respect to which the repurchase right is being exercised shall continue
until the close of business on the Repurchase Date.

          In the event a repurchase right shall be exercised in accordance with the
terms hereof, the Company shall pay or cause to be paid the Repurchase Price in
cash to the Holder on the Repurchase Date, together with accrued and unpaid
interest to the Repurchase Date payable with respect to the Notes as to which
the repurchase right has been exercised; provided, however, that installments
of interest that mature on or prior to the Repurchase Date shall be payable in
cash to the Holders of such Notes, or one or more predecessor Notes, registered
as such at the close of business on the relevant Regular Record Date according
to the terms and provisions of Article II of this Indenture.

          If any Note surrendered for repurchase shall not be so paid on the
Repurchase Date, the principal shall bear interest to the extent permitted by
applicable law from the Repurchase Date at the rate borne by the Note until the
principal of such Note shall have been paid or duly provided for.

          Any Note which is to be repurchased only in part shall be surrendered to
the Trustee (with, if the Company or the Trustee so requires, due endorsement
by, or a written instrument of

24

 

transfer in form satisfactory to the Company and the Trustee duly executed
by, the Holder thereof or his or her attorney duly authorized in writing), and
the Company shall execute, and the Trustee shall authenticate and deliver to
the Holder of such Note without service charge, a new Note or Notes, containing
identical terms and conditions, of any authorized denomination as requested by
such Holder in aggregate principal amount equal to and in exchange for the
unrepurchased portion of the principal of the Note so surrendered.

          Prior to the Repurchase Date, the Company shall deposit with the Trustee
or with a Paying Agent (or, if the Company is acting as its own Paying Agent,
segregate and hold in trust as provided in Section 3.4 of this Indenture) an
amount of money sufficient to pay the Repurchase Price of the Notes that are to
be repaid on the Repurchase Date.

               (c)     “Change of Control” Defined.

          A Change of Control shall give rise to the right under this Section 3.11
on the part of each Holder of a Note to require, at the Holder’s option, the
Company to repurchase such Holder’s Note(s).

          For purposes of this Section 3.11, “Change of Control” shall occur when:
(i) all or substantially all of the Company’s assets are sold as an entirety to
any Person or related group of Persons; (ii) there shall be consummated any
consolidation or merger of the Company (A) in which the Company is not the
continuing or surviving corporation (other than a consolidation or merger with
a wholly owned subsidiary of the Company in which all shares of Common Stock
outstanding immediately prior to the effectiveness thereof are changed into or
exchanged for the same consideration), or (B) pursuant to which the Common
Stock would be converted into cash, securities or other property, in each case
other than a consolidation or merger of the Company in which the holders of the
Common Stock immediately prior to the consolidation or merger have, directly or
indirectly, at least a majority of the total voting power of all classes of
capital stock entitled to vote generally in the election of directors of the
continuing or surviving corporation immediately after such consolidation or
merger in substantially the same proportion as their ownership of Common Stock
immediately before such transaction; (iii) any Person, or any Persons acting
together which would constitute a “group” for purposes of Section 13(d) of the
Exchange Act, together with any affiliates thereof, shall beneficially own (as
defined in Rule 13d-3 under the Exchange Act) at least 50% of the total voting
power of all classes of capital stock of the Company entitled to vote generally
in the election of directors of the Company; (iv) at any time during any
consecutive two-year period, individuals who, at the beginning of such period,
constituted the Board of Directors of the Company (together with any new
directors whose election by such Board of Directors or whose nomination for
election by the stockholders of the Company was approved by a vote of 66-2/3%
of the directors then still in office who were either directors at the
beginning of such period or whose election or nomination for election was
previously so approved) cease for any reason to constitute a majority of the
Board of Directors of the Company then in office; or (v) the Company is
liquidated or dissolved or adopts a plan of liquidation or dissolution.

25

 

     Section 3.12.  No Senior Right of Repayment.

          Neither the Company nor any of its Subsidiaries shall incur any
indebtedness for borrowed money senior or pari passu in right of repayment to
the Notes.

     Section 3.13.  Permitted Investments.

          Neither the Company nor any of its Subsidiaries shall make any Investment
other than a Permitted Investment unless the Company, on a consolidated basis,
has cash and cash equivalents greater than $10 million.

     Section 3.14. Mandatory Redemption.

          The Notes shall be subject to mandatory redemption by the Company upon the
following terms and conditions:

          (a)     Conditions of Redemption; Redemption Notice.

          Within ten (10) days following the filing with the Commission of the
Company’s annual report on Form 10-K under the Act (or similar successor form)
containing its consolidated financial statements, the Company shall furnish to
the Trustee an Officer’s Certificate setting forth (i) the amount of Excess
Free Cash, if any, for the immediately preceding fiscal year, plus the
carryover amount (as described in the following sentence) from the preceding
fiscal year(s), if any, and (ii) the amount that is fifty percent (50%) of such
aggregate figure (the “Excess Cash Payment”). If the Excess Cash Payment is
less than $500,000, such amount shall be retained by the Company and added to
the amount of Excess Free Cash calculated for the following fiscal year. If
the Excess Cash Payment is greater than $500,000, unless the Company shall have
theretofore called for redemption of all of the Outstanding Notes, on or before
the 15th calendar day after the date of the Officer’s Certificate certifying
the Excess Cash Payment, the Company or, at the request (and expense) of the
Company, the Trustee, shall mail to all Holders of Notes a notice (the
“Redemption Notice”) of the redemption and the applicable terms set forth
herein.

          (b)     Redemption Date; Allocation of Redemption.

          In the event that the Excess Cash Payment is sufficient to redeem all of
the Outstanding Notes, the Company shall redeem such Notes on the date that is
30 days after the date of the Redemption Notice (the “Redemption Date”) for
cash at a purchase price equal to 100% of the principal amount plus accrued and
unpaid interest of the Notes to be redeemed (the “Redemption Price”). In the
event that the Excess Cash Payment is not sufficient to redeem all of the
Outstanding Notes, the Company shall redeem all Outstanding Notes on the
Redemption Date at the Redemption Price to the extent permitted by the Excess
Cash Payment allocated on a pro rata basis according to the aggregate principal
amount of Outstanding Notes held by each Holder.

          Subject to the provisions of this Indenture relating to Global Notes, any
Note repurchased in part shall be surrendered to the Trustee (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 his or her attorney duly authorized in writing), and
the Company shall execute, and the Trustee shall authenticate and deliver to
the Holder of

26

 

such Note without service charge, a new Note or Notes, containing
identical terms and conditions, of any authorized denomination as requested by
such Holder in aggregate principal amount equal to and in exchange for the
unredeemed portion of the principal of the Note so surrendered.

          Prior to the Redemption Date, the Company shall deposit with the Trustee
or with a Paying Agent (or, if the Company is acting as its own Paying Agent,
segregate and hold in trust as provided in Section 3.4 of this Indenture) an
amount of money sufficient to pay the Redemption Price of the Notes that are to
be redeemed on the Redemption Date.

          (c)     Definitions.

          The following definitions shall apply to this Section 3.14:

          “Capitalized Lease Obligations” means with respect to any Person,
Indebtedness represented by obligations under a lease that is required to be
capitalized for financial reporting purposes in accordance with GAAP, and the
amount of such Indebtedness shall be the capitalized amount of such obligations
determined in accordance with GAAP.

          “Consolidated Net Income” means, with respect to any Person, for any
period, the aggregate of the Net Income of such Person and its Restricted
Subsidiaries for such period, on a consolidated basis, determined in accordance
with GAAP; provided that (a) the Net Income of any Person, other than a
Subsidiary of the referent Person, shall be excluded, except to the extent of
the amount of cash dividends or distributions actually received by the referent
Person, (b) the Net Income of any Subsidiary of the Person in question that is
subject to any restriction or limitation on the payment of dividends or the
making of other distributions (other than pursuant to the Notes or this
Indenture) shall be excluded to the extent of such restriction or limitation,
(c)(i) the Net Income of any Person acquired in a pooling of interests
transaction for any period prior to the date of such acquisition shall be
excluded and (ii) any net gain (but not loss) resulting from an asset sale by
the Person in question or any of its Subsidiaries other than in the ordinary
course of business shall be excluded, (d) extraordinary gains and losses and
any foreign exchange gains and losses shall be excluded, (e) income or loss
attributable to discontinued operations (including, without limitation,
operations disposed of during such period whether or not such operations were
classified as discontinued) shall be excluded, (f) any restoration to income or
any contingency reserve of an extraordinary, non-recurring or unusual nature
shall be excluded, except to the extent that provision for such reserve was
made out of Consolidated Net Income accrued at any time and (g) in the case of
a successor to the referent Person by consolidation or merger or as a
transferee of the referent Person’s assets, any earnings of the successor
corporation prior to such consolidation, merger or transfer of assets shall be
excluded.

          “EBITDA” means, with respect to the Company, for any period, the
Consolidated Net Income for such period plus (i) provision for taxes based on
income or profits for such period, to the extent that such provision for taxes
was included in computing such Consolidated Net Income, plus (ii) consolidated
interest expense for such period, whether paid or accrued and whether or not
capitalized (including, without limitation, amortization of debt issuance costs
and original issue discount, non-cash interest payments, the interest component
of any deferred payment obligations, the interest component of all payments
associated with Capital Lease

27

 

Obligations, commissions, discounts and other fees and charges Incurred in
respect of letter of credit or bankers’ acceptance financings, and net payments
(if any) pursuant to hedging obligations), to the extent that any such expense
was deducted in computing such Consolidated Net Income, plus (iii)
depreciation, amortization (including amortization of goodwill and other
intangibles but excluding amortization of prepaid cash expenses that were paid
in a prior period) and other non-cash expenses (excluding any such non-cash
expense to the extent that it represents an accrual of or reserve for cash
expenses in any future period or amortization of a prepaid cash expense that
was paid in a prior period) for such period to the extent that such
depreciation, amortization and other non-cash expenses were deducted in
computing such Consolidated Net Income, plus (iv) non-recurring financing,
advisory and other expenses Incurred in connection with the Transactions, minus
(v) non-cash items increasing such Consolidated Net Income for such period
(other than items accrued in the ordinary course of business), in each case, on
a consolidated basis and determined in accordance with GAAP; provided that, if
any Subsidiary is not a wholly owned Subsidiary of such Person, EBITDA shall be
reduced (to the extent not otherwise reduced in accordance with GAAP) by an
amount equal to (A) the amount of EBITDA attributable to such Subsidiary
multiplied by (B) the percentage ownership interest in such Subsidiary not
owned on the last day of such period by the Company or any of its Subsidiaries.
Notwithstanding the foregoing, the provision for taxes on the income or
profits of, and the depreciation and amortization and other non-cash expenses
of, a Subsidiary of the Company shall be added to Consolidated Net Income to
compute EBITDA only to the extent that a corresponding amount would be
permitted at the date of determination to be dividended to the Company by such
Subsidiary without prior governmental approval (that has not been obtained),
and without direct or indirect restriction pursuant to the terms of its charter
and all agreements, instruments, judgments, decrees, orders, statutes, rules
and governmental regulations applicable to that Subsidiary or its stockholders.

          “Excess Free Cash” means, for any fiscal year, EBITDA minus (i) taxes
based on income or profits for such period, to the extent that such provision
for taxes was included in computing such Consolidated Net Income, minus (ii)
consolidated interest expense for such period, whether paid or accrued and
whether or not capitalized (including, without limitation, amortization of debt
issuance costs and original issue discount, non-cash interest payments, the
interest component of any deferred payment obligations, the interest component
of all payments associated with Capital Lease Obligations, commissions,
discounts and other fees and charges Incurred in respect of letter of credit or
bankers’ acceptance financings, and net payments (if any) pursuant to hedging
obligations), to the extent that any such expense was deducted in computing
such Consolidated Net Income, minus (iii) the amount of the capital
expenditures of the Company for the immediately preceding fiscal year.

          “Net Income” means, with respect to any Person, for any period, the net
income (loss) of such Person determined in accordance with GAAP.

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ARTICLE IV.

SECURITYHOLDER LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

     Section 4.1.  Company to Furnish Trustee Information as to Names and
Addresses of Securityholders.

          If and so long as the Trustee shall not be the Security Registrar for the
Notes, the Company and any other obligor on the Notes will furnish or cause to
be furnished to the Trustee a list in such form as the Trustee may reasonably
require of the names and addresses of the Holders of the Registered Notes
pursuant to Section 312 of the Trust Indenture Act:

          (a)     semi-annually not more than 5 days after each Regular Record Date for
the payment of interest on such Registered Notes, as hereinabove specified; and

          (b)     at such other times as the Trustee may reasonably request in writing,
within thirty days after receipt by the Company of any such request as of a
date not more than 15 days prior to the time such information is furnished.

     Section 4.2.  Preservation of Information; Communications to Holders.

          (a)     The Trustee shall preserve, in as current a form as is reasonably
practicable, the names and addresses of Holders contained in the most recent
list furnished to the Trustee as provided in Section 4.1 and the names and
addresses of Holders received by the Trustee in its capacity as Note Registrar.
The Trustee may destroy any list furnished to it as provided in Section 4.1
upon receipt of a new list so furnished.

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

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

     Section 4.3.  Reports by Trustee.

          (a)     Within 60 days after May 15 of each year, commencing May 15, 2003, the
Trustee shall transmit to Holders such reports concerning the Trustee and its
actions under this Indenture as may be required pursuant to the Trust Indenture
Act at the times and in the manner provided pursuant thereto.

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

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     Section 4.4.  Reports by Company.

          The Company shall file with the Trustee and the Commission, and transmit
to Holders, such information, documents and other reports, and such summaries
thereof, as may be required pursuant to the Trust Indenture Act at the times
and in the manner provided pursuant to such Act; provided, that any such
information, documents or reports required to be filed with the Commission
pursuant to Section 13 or 15(d) of the Exchange Act, shall be filed with the
Trustee within 15 days after the same is filed with the Commission. Delivery of
such reports, information and documents to the Trustee is for informational
purposes only and the Trustee’s receipt of such shall not constitute
constructive notice of any information contained therein, including the
Company’s compliance with any of its covenants hereunder (as to which the
Trustee is entitled to rely exclusively on Officer’s Certificates).

ARTICLE V.

REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT

     Section 5.1.  Event of Default Defined, Acceleration of Maturity; Waiver of Default.

          “Event of Default” with respect to Notes, wherever used herein, means each
one of the following events which shall have occurred and be continuing
(whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any
judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body):

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

               (b)     default in the payment of all or any part of the principal, or any
premium, on any of the Notes as and when the same shall become due and payable
either at Maturity, upon any redemption, by declaration or otherwise; or

               (c)     failure on the part of the Company duly to observe or perform any
other of the covenants or agreements on the part of the Company in the Notes or
contained in this Indenture for a period of 60 days after the date on which
written notice specifying such failure, stating that such notice is a “Notice
of Default” hereunder and demanding that the Company remedy the same, shall
have been given by registered or certified mail, return receipt requested, to
the Company by the Trustee, or to the Company and the Trustee by the holders of
at least 25% in aggregate principal amount of the Outstanding Notes to which
such covenant or agreement relates; or

               (d)     default under any bond, debenture, note or other evidence of
indebtedness for money borrowed by the Company or any Subsidiary or under any
mortgage, indenture or instrument under which there may be issued or by which
there may be secured or evidenced any indebtedness for money borrowed by the
Company or any Subsidiary, whether such indebtedness now exists or shall
hereafter be created, which default shall constitute a failure to

30

 

pay the principal of indebtedness in excess of $5,000,000 when due and
payable after the expiration of any applicable grace period with respect
thereto or shall have resulted in indebtedness in excess of $5,000,000 becoming
or being declared due and payable prior to the date on which it would otherwise
have become due and payable, without such indebtedness having been discharged,
or such acceleration having been rescinded or annulled, within a period of 10
days after there shall have been given to the Company by the Trustee or to the
Company and the Trustee by the Holders of at 25% in aggregate principal amount
of the Notes then Outstanding hereunder a written notice specifying such
default and requiring the Company to cause such indebtedness to be discharged
or cause such acceleration to be rescinded or annulled; or

               (e)     a court having jurisdiction in the premises shall enter a decree or
order for relief in respect of the Company or any Significant Subsidiary in an
involuntary case under any applicable bankruptcy, insolvency or other similar
law now or hereafter in effect, or appointing a receiver, liquidator, assignee,
custodian, trustee, sequestrator (or similar official) of the Company or any
Significant Subsidiary for any substantial part of its or their property or
ordering the winding up or liquidation of its or their affairs, and such decree
or order shall remain unstayed and in effect for a period of 60 consecutive
days; or

               (f)     the Company or any Significant Subsidiary shall commence a voluntary
case under any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect, or consent to the entry of an order for relief in an
involuntary case under any such law, or consent to the appointment or taking
possession by a receiver, liquidator, assignee, custodian, trustee,
sequestrator (or similar official) of the Company or any Significant Subsidiary
or for any substantial part of its or their property, or make any general
assignment for the benefit of creditors; or

               (g)     the Liens created by the Security Documents shall at any time not
constitute a valid and perfected Lien on the Collateral intended to be covered
thereby (to the extent perfection by filing, registration, recordation or
possession is required herein or therein) in favor of the Collateral Agent,
free and clear of all other Liens (other than Permitted Liens), or, except for
expiration in accordance with its terms or amendment, modification, waiver,
termination or release in accordance with the terms of this Indenture, any of
the Security Documents shall for whatever reason be terminated or cease to be
in full force and effect, if in either case, such default continues for 15 days
or the enforceability thereof shall be contested by the Company; or

               (h)     failure of the Company to make, when due, any transfer, delivery,
pledge, assignment or grant of Collateral required to be made by it and such
failure continues unremedied for three Business Days after notice of such
failure is given to the Company by the Trustee or to the Company and the
Trustee by the Holders of at least 25% in aggregate principal amount of the
outstanding Notes; or

               (i)     failure to provide timely notice of a Change of Control; or

               (j)     default in the payment of the Repurchase Price in respect of any Notes
on the Repurchase Date thereof.

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     Section 5.2.  Acceleration of Maturity; Rescission and Annulment.

          If an Event of Default (other than Events of Default described in clauses
(e) and (f) of Section 5.1) occurs and is continuing, then, and in each and
every such case, either the Trustee or the Holders of not less than 25% in
aggregate principal amount of the Notes then Outstanding hereunder by notice in
writing to the Company (and to the Trustee if given by Securityholders), may
declare the entire principal of all Notes, premium, if any, and the interest
accrued thereon, if any, to be due and payable immediately, and upon any such
declaration, the same shall become immediately due and payable.

          If an Event of Default described in clause (e) or (f) of Section 5.1 shall
occur, the principal amount of all outstanding Notes shall ipso facto become
and be immediately due and payable without any declaration or other act on the
part of the Trustee or any Holder.

          The foregoing provisions are subject to the condition that if, at any time
after the principal of the Notes shall have been so declared due and payable,
and before any judgment or decree for the payment of the moneys due shall have
been obtained or entered as hereinafter provided,

               (a)     the Company shall pay or shall deposit with the Trustee a sum
sufficient to pay

		
	 	     (i)     all matured installments of interest upon all the Notes; and
	 
	 	     (ii)     the principal of (and premium, if any, on) any and all Notes
which shall have become due otherwise than by acceleration; and
	 
	 	     (iii)     interest upon such principal and, to the extent that
payment of such interest is enforceable under applicable law, on
overdue installments of interest, at the same rate as the rate of
interest specified in the Notes to the date of such payment or
deposit; and
	 
	 	     (iv)     all amounts payable to the Trustee pursuant to Section 6.6;
and

               (b)     all Events of Default under the Indenture, other than the non-payment
of the principal of Notes which shall have become due by acceleration, shall
have been cured, waived or otherwise remedied as provided herein,

then and in every such case the Holders of a majority in aggregate principal
amount of all the Notes, then Outstanding, by written notice to the Company and
to the Trustee, may waive all defaults with respect to all the Notes, and
rescind and annul such declaration and its consequences, but no such waiver or
rescission and annulment shall extend to or shall affect any subsequent default
or shall impair any right consequent thereon.

     Section 5.3.  Collection of Indebtedness by Trustee; Trustee May Prove Debt.

		
	 	     The Company covenants that (a) in case default shall be made in the
payment of any installment of interest on any of the Notes when such interest
shall have become due and

32

 

payable, and such default shall have continued for a period of 30 days, or
(b) in case default shall be made in the payment of all or any part of the
principal of (and premium, if any, on) any of the Notes when the same shall
have become due and payable, whether upon Maturity of the Notes or upon any
redemption or by declaration or otherwise, then upon demand of the Trustee, the
Company will pay to the Trustee for the benefit of the Holders of the Notes the
whole amount that then shall have become due and payable on all Notes; and in
addition thereto, such further amount as shall be sufficient to cover the costs
and expenses of collection, and such other amount due the Trustee under Section
6.6.

          Until such demand is made by the Trustee, the Company may pay the
principal of and interest on the Notes to the registered Holders, whether or
not the Notes be overdue.

     Section 5.4.  Trustee May File Proofs of Claims.

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

          In case there shall be pending proceedings relative to the Company or any
other obligor upon the Notes under Title 11 of the United States Code or any
other applicable Federal or state bankruptcy, insolvency or other similar law,
or in case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or
taken possession of the Company or its property or such other obligor, or in
case of any other comparable judicial proceedings relative to the Company or
other obligor upon the Notes, or to the creditors or property of the Company or
such other obligor, the Trustee, irrespective of whether the principal of the
Notes shall then be due and payable as therein expressed or by declaration or
otherwise and irrespective of whether the Trustee shall have made any demand
pursuant to the provisions of this Section, shall be entitled and empowered, by
intervention in such proceedings or otherwise:

               (a)     to file and prove a claim or claims for the whole amount of principal,
premium, if any, and interest owing and unpaid in respect of the Notes, 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 amounts payable to
the Trustee under Section 6.6) and of the Securityholders allowed in any
judicial proceedings relative to the Company or other obligor upon the Notes,
or to the creditors or property of the Company or such other obligor; and

               (b)     unless prohibited by applicable law and regulations, to vote on behalf
of the holders of the Notes in any election of a receiver, assignee, trustee or
a standby trustee in arrangement, reorganization, liquidation or other
bankruptcy or insolvency proceedings, custodian or other person performing
similar functions in respect of any such proceedings; and

33

 

               (c)     to collect and receive any moneys or other property payable or
deliverable on any such claims, and to distribute all amounts received with
respect to the claims of the Securityholders and of the Trustee on their
behalf; and any trustee, receiver, or liquidator, custodian or other similar
official performing similar functions in respect of any such proceedings is
hereby authorized by each of the Securityholders to make payments to the
Trustee, and, in the event that the Trustee shall consent to the making of
payments directly to the Securityholders, to pay to the Trustee its costs and
expenses of collection and all other amounts due to it pursuant to Section 6.6.

Nothing herein contained shall be deemed to authorize the Trustee to authorize
or consent to or vote for or accept or adopt on behalf of any Securityholder
any plan of reorganization, arrangement, adjustment or composition affecting
the Notes or the rights of any Holder thereof, or to authorize the Trustee to
vote in respect of the claim of any Securityholder in any such proceeding,
except as aforesaid in clause (b).

     Section 5.5.  Trustee May Enforce Claims Without Possession of Notes.

          All rights of action and of asserting claims under this Indenture, the
Notes or the Security Documents, may be enforced by the Trustee without the
possession of the Notes or the production thereof in any trial or other
proceedings relative thereto, and any such action or proceedings instituted by
the Trustee shall be brought in its own name as trustee of an express trust,
and any recovery of judgment shall awarded to the Trustee for ratable
distribution to the Holders of the Notes in respect of which such action was
taken, after payment of all sums due to the Trustee under Section 6.6 in
respect of such Notes.

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

     Section 5.6.  Application of Proceeds.

          Any moneys collected by the Trustee pursuant to this Article or the
Security Documents shall be applied in the following order at the date or dates
fixed by the Trustee and, in case of the distribution of such moneys on account
of principal or interest, upon presentation of the several Notes in respect of
which monies have been collected and stamping (or otherwise noting) thereon the
payment, or issuing Notes in reduced principal amounts in exchange for the
presented Notes if only partially paid, or upon surrender thereof if fully
paid:

		
	 	     FIRST: To the payment of costs and expenses applicable to
such Notes in respect of which monies have been collected,
including all amounts due to the Trustee and each predecessor
Trustee pursuant to Section 6.6 in respect to such Notes;

		
	 	     SECOND: In case the principal of the Notes in respect of
which moneys have been collected shall not have become and be then
due and payable, to the payment of interest on the Notes in
default in the order of the Maturity of the installments on such
interest, with interest (to the extent that such interest has

34

 

		
	 	been collected by the Trustee and is permitted by applicable
law) upon the overdue installments of interest at the same rate as
the rate of interest specified in such Notes, such payments to be
made ratably to the persons entitled thereto, without
discrimination or preference;

		
	 	     THIRD: In case the principal of the Notes in respect of which
moneys have been collected shall have become and shall be then due
and payable, to the payment of the whole amount then owing and
unpaid upon all the Notes for principal (and premium, if any) and
interest, with interest upon the overdue principal, and (to the
extent that such interest has been collected by the Trustee and is
permitted by applicable law) upon the overdue installations of
interest at the same rate as the rate of interest specified in the
Notes; and in case such moneys shall be insufficient to pay in
full the whole amount so due and unpaid upon the Notes, then to
the payment of such principal and interest, without preference or
priority of principal over interest, or of interest over
principal, or of any installment of interest over any other
installment of interest or of any Note over any other Note,
ratably to the aggregate of such principal and accrued and unpaid
interest; and

		
	 	     FOURTH: To the payment of the remainder, if any, to the Company.

     Section 5.7.  Suits for Enforcement.

          In case an Event of Default has occurred, has not been waived and is
continuing, the Trustee may in its discretion proceed to protect and enforce
the rights vested in it by this Indenture by such appropriate judicial
proceedings as the Trustee shall deem most effectual to protect and enforce any
of such rights, either at law or in equity or in bankruptcy or otherwise,
whether for the specific enforcement of any covenant or agreement contained in
this Indenture or in aid of the exercise of any power granted in this Indenture
or to enforce any other legal or equitable right vested in the Trustee by this
Indenture or by law.

     Section 5.8.  Limitations on Suits by Note Holders.

          No Holder of any Note shall have any right by virtue or by availing of any
provision of this Indenture to institute any action or proceeding at law or in
equity or in bankruptcy or otherwise upon or under or with respect to this
Indenture or such Note, or for the appointment of a trustee, receiver,
liquidator, custodian or other similar official or for any other remedy
hereunder or thereunder, unless (a) such Holder previously shall have given to
the Trustee written notice of an Event of Default with respect to Notes and of
the continuance thereof, as hereinbefore provided, and (b) the Holders of not
less than 25% in aggregate principal amount of the Notes then Outstanding
(treated as a single class) shall have made written request upon the Trustee to
institute such action or proceedings in its own name as Trustee hereunder and
shall have offered to the Trustee such indemnity as it may require against the
costs, expenses and liabilities to be incurred therein or thereby, and (c) the
Trustee for 60 days after its receipt of such notice, request and offer of
indemnity shall have failed to institute any such action or proceeding, and (d)
no direction inconsistent with such written request shall have been given to
the Trustee pursuant to Section 5.13; it being understood and intended, and
being expressly

35

 

covenanted by the taker and Holder of every Note with every other taker
and Holder and the Trustee, that no one or more Holders of Notes shall have any
right in any manner whatever by virtue or by availing of any provision of this
Indenture, any Note or the Security Documents to affect, disturb or prejudice
the rights of any other such taker or Holder of Notes, or to obtain or seek to
obtain priority over or preference to any other such taker or Holder or to
enforce any right under this Indenture, any Note or the Security Documents,
except in the manner herein provided and for the equal, ratable and common
benefit of all Holders of Notes. For the protection and enforcement of the
provisions of this Section, each and every Securityholder and the Trustee shall
be entitled to such relief as can be given either at law or in equity.

     Section 5.9.  Unconditional Right of Securityholders to Institute Certain
Suits.

          Notwithstanding any other provision in this Indenture and any provision of
any Note, the right of any Holder of any Note to receive payment of the
principal of and interest on such Note on or after the respective due dates
expressed in such Note or the applicable redemption dates provided for in such
Note, to institute suit for the enforcement of any such payment on or after
such respective dates, shall not be impaired or affected without the consent of
such Holder, except that no Holder shall have the right to institute any such
suit, if and to the extent that the institution or prosecution thereof or the
entry of judgment therein would under applicable law result in the surrender,
impairment, waiver, or loss of the Liens of the Security Documents upon any
property or assets subject to the Liens.

     Section 5.10.  Restoration of Rights on Abandonment of Proceedings.

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

     Section 5.11.  Powers and Remedies Cumulative; Delay or Omission Not Waiver
of Default.

          Except as provided in Section 5.8, no right or remedy herein conferred
upon or reserved to the Trustee or to the Holders of Notes is intended to be
exclusive of any other right or remedy and every right and remedy shall, to the
extent permitted by law, be cumulative and in addition to every other right and
remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any
other appropriate right or remedy.

     Section 5.12.  Delay or Omission Not Waiver.

          No delay or omission of the Trustee or of any Holder of Notes to exercise
any right or power accruing upon any Event of Default occurring and continuing
as aforesaid shall impair any such right or power or shall be construed to be a
waiver of any such Event of Default or an acquiescence therein. Every power and
remedy given by this Indenture, any Note or law to the Trustee or to the
Holders of Notes may be exercised from time to time, and as often as shall be
deemed expedient, by the Trustee or, subject to Section 5.8, by the Holders of
Notes.

36

 

     Section 5.13.  Control by Holders of Notes.

          The Holders of a majority in aggregate principal amount of the Notes at
the time Outstanding shall have the right to direct the time, method, and place
of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred on the Trustee with respect to the
Notes by this Indenture; provided, that such direction shall not be otherwise
than in accordance with law and the provisions of this Indenture and provided,
further, that (subject to the provisions of Section 6.1) the Trustee shall have
the right to decline to follow any such direction if (a) the Trustee, being
advised by counsel, shall determine that the action or proceeding so directed
may not lawfully be taken; or (b) if the Trustee by its board of directors, the
executive committee, or a trust committee of directors or Responsible Officers
of the Trustee shall determine in good faith that the action or proceedings so
directed would involve the Trustee in personal liability; or (c) if the Trustee
in good faith shall so determine that the actions or forbearances specified in
or pursuant to such direction would be unduly prejudicial to the interests of
Holders of the Notes not joining in the giving of said direction, it being
understood that (subject to Section 6.1) the Trustee shall have no duty to
ascertain whether or not such actions or forbearances are unduly prejudicial to
such Holders.

          Nothing in this Indenture shall impair the right of the Trustee in its
discretion to take any action deemed proper by the Trustee and which is not
inconsistent with such direction or directions by Securityholders.

     Section 5.14.  Waiver of Past Defaults.

          Prior to the declaration of acceleration of the Maturity of any Notes as
provided in Section 5.2, the Holders of a majority in aggregate principal
amount of the Notes at the time Outstanding with respect to which an Event of
Default shall have occurred and be continuing (voting as a single class) may on
behalf of the Holders of all such Notes waive any past default or Event of
Default described in Section 5.1 and its consequences, except a default in
respect of a covenant or provision hereof which cannot be modified or amended
without the consent of the Holder of each Note affected. In the case of any
such waiver, the Company, the Trustee and the Holders of all such Notes shall
be restored to their former positions and rights hereunder, respectively, and
such default shall cease to exist and be deemed to have been cured and not to
have occurred for purposes of this Indenture; but no such waiver shall extend
to any subsequent or other default or impair any right consequent thereon.

     Section 5.15.  Trustee to Give Notice of Default, But May Withhold in Certain
Circumstances.

          The Trustee shall, within 90 days after the occurrence of a default with
respect to the Notes actually known to a Responsible Officer of the Trustee,
give notice of all defaults known to the Trustee to all Holders of Notes in the
manner and to the extent provided in Section 313(c) of the Trust Indenture Act,
unless in each case such defaults shall have been cured before the mailing or
publication of such notice (the term “default” for the purpose of this Section
being hereby defined to mean any event or condition which is, or with notice or
lapse of time or both would become, an Event of Default); provided, that,
except in the case of default in the payment of the principal of or interest on
any of the Notes, the Trustee shall be protected in withholding

37

 

such notice if and so long as the board of directors, the executive
committee, or a trust committee of directors or trustees and/or Responsible
Officers of the Trustee in good faith determines that the withholding of such
notice is in the interests of the Securityholders.

     Section 5.16.  Right of Court to Require Filing of Undertaking to Pay Costs.

          All parties to this Indenture agree, and each Holder of any Note by his
acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit for the enforcement of any right or remedy
under this Indenture or in any suit against the Trustee for any action taken,
suffered or omitted by it as Trustee, the filing by any party litigant in such
suit of an undertaking to pay the costs of such suit, and that such court may
in its discretion assess reasonable costs, including reasonable attorneys’
fees, against any party litigant in such suit, having due regard to the merits
and good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Securityholder or group of
Securityholders holding in the aggregate more than 10% in aggregate principal
amount of the Notes, or, in the case of any suit relating to or arising under
Section 5.1(c), 10% in aggregate principal amount of Notes then Outstanding and
affected thereby, or in the case of any suit relating to or arising under
clause (d) or (h) (if the suit under Section 5.1(c)relates to all the Notes
then Outstanding), Section 5.1(f), 10% in aggregate principal amount of all
Notes then Outstanding, or to any suit instituted by any Securityholder for the
enforcement of the payment of the principal of or interest on any Note on or
after the due date expressed in such Note or any date fixed for redemption.

     Section 5.17.  Waiver of Stay or Extension 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 wherever
enacted, now or at any time hereafter in force, 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 VI.

CONCERNING THE TRUSTEE

     Section 6.1.  Duties and Responsibilities of the Trustee; During Default;
Prior to Default.

          Prior to the occurrence of an Event of Default with respect to the Notes
and after the curing or waiving of all Events of Default which may have
occurred, the Trustee undertakes to perform such duties and only such duties as
are specifically set forth in this Indenture with respect to the Notes. In case
an Event of Default with respect to the Notes has occurred and has not been
cured or waived, the Trustee shall exercise with respect to such Notes such of
the rights and powers vested in it by this Indenture with respect to such Notes
or the Security Documents,

38

 

and use the same degree of care and skill in their exercise, as a prudent
person would exercise or use under the circumstances in the conduct of his or
her own affairs.

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

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

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

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

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

               (c)     the Trustee shall not be liable with respect to any action taken or
omitted to be taken by it in good faith in accordance with the direction of the
Holders pursuant to Section 5.13 relating to the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred upon the Trustee, under this Indenture.

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

          The provisions of this Section 6.1 are in furtherance of and subject to
Section 315 of the Trust Indenture Act.

     Section 6.2.  Certain Rights of the Trustee.

          In furtherance of and subject to the Trust Indenture Act, and subject to
Section 6.1:

               (a)     the Trustee may conclusively rely and shall be protected in acting or
refraining from acting upon any resolution, Officer’s Certificate or any other
certificate,

39

 

statement, instrument, opinion, report, notice, request, consent, order,
bond, debenture, note, coupon, security 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)     any request, direction, order or demand of the Company mentioned
herein shall be sufficiently evidenced by an Officer’s Certificate (unless
other evidence in respect thereof is specifically prescribed herein); and any
resolution of the Board of Directors may be evidenced to the Trustee by a copy
thereof certified by the secretary or an assistant secretary of the Company;

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

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

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

               (f)     prior to the occurrence of an Event of Default hereunder and after the
curing or waiving of all Events of Default, 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, consent,
order, approval, appraisal, bond, debenture, note, coupon, security, or other
paper or document unless requested in writing so to do by the Holders of not
less than a majority in aggregate principal amount of the Notes then
Outstanding; provided, that, if the payment within a reasonable time to the
Trustee of the costs, expenses or liabilities likely to be incurred by it in
the making of such investigation is, in the opinion of the Trustee, not
reasonably assured to the Trustee by the security afforded to it by the terms
of this Indenture, the Trustee may require reasonable indemnity satisfactory to
it against such expenses or liabilities as a condition to proceeding; the
reasonable expenses of every such investigation shall be paid by the Company
or, if paid by the Trustee or any predecessor trustee, shall be repaid by the
Company upon demand; and

               (g)     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 not regularly in its employ and the Trustee shall not be responsible
for any misconduct or negligence on the part of any such agent or attorney
appointed with due care by it hereunder.

40

 

     Section 6.3.  Trustee Not Responsible for Recitals, Disposition of Notes or
Application of Proceeds Thereof.

          The recitals contained herein and in the Notes, except the Trustee’s
certificates of authentication, shall be taken as the statements of the
Company, and the Trustee assumes no responsibility for the correctness of the
same. The Trustee makes no representation as to the validity or sufficiency of
this Indenture or of the Notes. The Trustee shall not be accountable for the
use or application by the Company of any of the Notes or of the proceeds
thereof.

     Section 6.4.  Trustee and Agents May Hold Notes or Coupons; Collections, Etc.

          The Trustee or any agent of the Company or of the Trustee, in its
individual or any other capacity, may become the owner or pledgee of Notes with
the same rights it would have if it were not the Trustee or such agent and may
otherwise deal with the Company and receive, collect, hold and retain
collections from the Company with the same rights it would have if it were not
the Trustee or such agent.

     Section 6.5.  Moneys Held by Trustee.

          Subject to the provisions of Section 10.4 hereof, all moneys received by
the Trustee shall, until used or applied as herein provided, be held in trust
for the purposes for which they were received, but need not be segregated from
other funds except to the extent required by mandatory provisions of law.
Neither the Trustee nor any agent of the Company or the Trustee shall be under
any liability for interest on any moneys received by it hereunder.

     Section 6.6. Compensation and Indemnification of Trustee and Its Prior
Claim.

          The Company covenants and agrees to pay to the Trustee from time to time,
and the Trustee shall be entitled to such compensation as the parties shall
agree in writing from time to time (which shall not be limited by any provision
of law in regard to the compensation of a trustee of an express trust) and the
Company covenants and agrees to pay or reimburse the Trustee and each
predecessor trustee upon its request for all reasonable expense, disbursements
and advances incurred or made by or on behalf of it in accordance with any of
the provisions of this Indenture (including the compensation and the expenses
and disbursements of its counsel and of all agents and other persons not
regularly in its employ) except any such expense, disbursement or advance as
shall be determined to have been caused by its own negligence or willful
misconduct. The Company also covenants to indemnify the Trustee and each
predecessor trustee for, and to hold it harmless against, any loss, liability,
claim, damage or expense incurred without negligence or bad faith on its part,
arising out of or in connection with the acceptance or administration of this
Indenture or the trusts hereunder and its duties hereunder, including the costs
and expenses of defending itself against or investigating any claim of
liability in the premises. The obligations of the Company under this Section to
compensate and indemnify the Trustee and each predecessor trustee and to pay or
reimburse the Trustee and each predecessor trustee for expenses, disbursements
and advances shall constitute additional indebtedness hereunder and shall
survive the satisfaction and discharge of this Indenture. Such additional
indebtedness shall be a senior claim to that of the Notes upon all property and
funds held or

41

 

collected by the Trustee as such, except funds held in trust for the
benefit of the Holders of particular Notes, and the Notes are hereby
subordinated to such senior claim.

     Section 6.7. Right of Trustee to Rely on Officer’s Certificate, Etc.

          Subject to Section 6.1 and Section 6.2, whenever in the administration of
the trusts of this Indenture the Trustee shall deem it necessary or desirable
that a matter be proved or established prior to taking or suffering or omitting
any action hereunder, such matter (unless other evidence in respect thereof be
herein specifically prescribed) may be deemed to be conclusively proved and
established by an Officer’s Certificate delivered to the Trustee, and such
certificate, in the absence of negligence or bad faith on the part of the
Trustee, shall be full warrant to the Trustee for any action taken, suffered or
omitted by it under the provisions of this Indenture upon the faith thereof.

     Section 6.8.  Qualification of Trustee: Conflicting Interests.

          The Trustee shall comply with Section 310(b) of the TIA; provided,
however, that there shall be excluded from the operation of TIA Section
310(b)(1) any indenture or indentures under which other securities or
certificates of interest or participation in other securities of the Company
are outstanding if the requirements of such exclusion set forth in TIA Section
310(b)(1) are met. For purposes of the preceding sentence, the optional
provision permitted by the second sentence of Section 310(b)(9) of the Trust
Indenture Act shall be applicable.

     Section 6.9.  Preferential Collection of Claims Against Issuers.

          The Trustee is subject to 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 herein.

     Section 6.10.  Persons Eligible for Appointment as Trustee.

          The Trustee for the Notes hereunder shall at all times be a corporation or
banking association organized and doing business under the laws of the United
States of America, any State thereof or the District of Columbia, that has (or,
in the case of a corporation or banking association included in a bank holding
company system, whose related bank holding company has) a combined capital and
surplus of at least $50,000,000, and which is authorized under such laws to
exercise corporate trust powers and is subject to supervision or examination by
Federal, state or District of Columbia authority. If such corporation publishes
reports of condition at least annually, pursuant to law or to the requirements
of the aforesaid supervising or examining authority, then for the purposes of
this Section, the combined capital and surplus of such corporation shall be
deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. In case at any time the Trustee shall cease
to be eligible in accordance with the provisions of this Section, the Trustee
shall resign immediately in the manner and with the effect specified in Section
6.11.

          The provisions of this Section 6.10 are in furtherance of and subject to
Section 310(a) of the Trust Indenture Act.

42

 

     Section 6.11.  Resignation and Removal; Appointment of Successor Trustee.

               (a)     The Trustee, or any trustee or trustees hereafter appointed, may at
any time resign by giving written notice of resignation to the Company. Upon
receiving such notice of resignation, the Company shall promptly appoint a
successor trustee or trustees with respect to the Notes by written instrument
in duplicate, executed by authority of the Board of Directors, one copy of
which instrument shall be delivered to the resigning Trustee and one copy to
the successor trustee or trustees. If no successor trustee shall have been so
appointed and have accepted appointment within 30 days after the mailing of
such notice of resignation, the resigning trustee may petition at the expense
of the Company any court of competent jurisdiction for the appointment of a
successor trustee, or any Securityholder who has been a bona fide Holder of a
Note or Notes for at least six months may, subject to the provisions of Section
5.12, on behalf of himself and all others similarly situated, petition any such
court for the appointment of a successor trustee. Such court may thereupon,
after such notice, if any, as it may deem proper and prescribe, appoint a
successor trustee.

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

		
	 	          (i)     the Trustee shall fail to comply with the provisions of
Section 310(b) of the Trust Indenture Act with respect to the Notes
after written request therefor by the Company or by any Securityholder
who has been a bona fide Holder of a Note or Notes for at least six
months; or

		
	 	          (ii)     the Trustee shall cease to be eligible in accordance with
the provisions of Section 6.10 and Section 310(a) of the Trust
Indenture Act and shall fail to resign after written request therefor
by the Company or by any Securityholder; or

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

then, in any such case, the Company may remove the Trustee and appoint a
successor trustee by written instrument, in duplicate, executed by order of the
Board of Directors of the Company, one copy of which instrument shall be
delivered to the Trustee so removed and one copy to the successor trustee, or,
subject to the provisions of Section 315(e) of the Trust Indenture Act, any
Securityholder who has been a bona fide Holder of a Note or Notes for at least
six months may on behalf of himself and all others similarly situated, petition
any court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor trustee. Such court may thereupon, after such
notice, if any, as it may deem proper and prescribe, remove the Trustee and
appoint a successor trustee. If no successor trustee shall have been so
appointed and have accepted appointment within 30 days after such removal, the
removed trustee may petition any court of competent jurisdiction for the
appointment of a successor trustee.

               (c)     The Holders of a majority in aggregate principal amount of the Notes
at the time outstanding may at any time remove the Trustee and appoint a
successor trustee by

43

 

delivering to the Trustee so removed, to the successor trustee so
appointed and to the Company the evidence provided for in Section 7.1 of the
action in that regard taken by the Securityholders.

               (d)     Any resignation or removal of the Trustee and any appointment of a
successor trustee pursuant to any of the provisions of this Section 6.11 shall
become effective upon acceptance of appointment by the successor trustee as
provided in Section 6.12.

     Section 6.12.  Acceptance of Appointment by Successor Trustee.

          Any successor trustee appointed as provided in Section 6.11 shall execute
and deliver to the Company and to its predecessor trustee an instrument
accepting such appointment hereunder, and thereupon the resignation or removal
of the predecessor trustee shall become effective and such successor trustee,
without any further act, deed or conveyance, shall become vested with all
rights, powers, duties and obligations of its predecessor hereunder, with like
effect as if originally named as trustee; but, nevertheless, on the written
request of the Company or of the successor trustee, upon payment of its charges
then unpaid, the trustee ceasing to act shall, subject to Section 10.4, pay
over to the successor trustee all moneys at the time held by it hereunder and
shall execute and deliver an instrument transferring to such successor trustee
all such rights, powers, duties and obligations. Upon request of any such
successor trustee, the Company shall execute any and all instruments in writing
for more fully and certainly vesting in and confirming to such successor
trustee all such rights and powers. Any trustee ceasing to act shall,
nevertheless, retain a prior claim upon all property or funds held or collected
by such trustee to secure any amounts then due or subsequently owing it
pursuant to the provisions of Section 6.6.

          No successor trustee shall accept appointment as provided in this Section
6.12 unless at the time of such acceptance such successor trustee shall be
qualified under Section 310(b) of the Trust Indenture Act and eligible under
the provisions of Section 6.10.

          Upon acceptance of appointment by any successor trustee as provided in
this Section 6.12, the Company shall give notice thereof to the Holders by
mailing such notice to such Holders at their addresses as they shall appear on
the registry books. If the acceptance of appointment is substantially
contemporaneous with the resignation, then the notice called for by the
preceding sentence may be combined with the notice called for by Section 6.11.
If the Company fails to give such notice within ten days after acceptance of
appointment by the successor trustee, the successor trustee shall cause such
notice to be given at the expense of the Company.

     Section 6.13.  Merger, Conversion, Consolidation or Succession to Business of
Trustee.

          Any corporation into which the Trustee may be merged or converted or with
which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder,
provided, that such corporation shall be qualified under Section 310(b) of the
Trust Indenture Act and eligible under the provisions of Section 6.10, without
the execution or filing of any

44

 

paper or any further act on the part of any of the parties hereto,
anything herein to the contrary notwithstanding.

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

     Section 6.14.  Appointment of Authenticating Agent.

          As long as any Notes remain Outstanding, the Trustee may, by an instrument
in writing, appoint with the approval of the Company an authenticating agent
(the “Authenticating Agent”) which shall be authorized to act on behalf of the
Trustee to authenticate Notes, including Notes issued upon exchange,
registration of transfer, partial redemption or pursuant to Section 2.8. Notes
authenticated by such Authenticating Agent shall be entitled to the benefits of
this Indenture and shall be valid and obligatory for all purposes as if
authenticated by the Trustee. Whenever reference is made in this Indenture to
the authentication and delivery of Notes by the Trustee or to the Trustee’s
Certificate of Authentication, such reference shall be deemed to include
authentication and delivery on behalf of the Trustee by an Authenticating Agent
and a Certificate of Authentication executed on behalf of the Trustee by such
Authenticating Agent. Such Authenticating Agent shall at all times be a
corporation organized and doing business under the laws of the United States of
America or of any State, authorized under such laws to exercise corporate trust
powers, having a combined capital and surplus of at least $45,000,000
(determined as provided in Section 6.10 with respect to the Trustee) and
subject to supervision or examination by Federal or State authority.

          Any corporation into which any Authenticating Agent may be merged or
converted, or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which any Authenticating Agent
shall be a party, or any corporation succeeding to all or substantially all of
the corporate agency business of any Authenticating Agent, shall continue to be
the authenticating Agent with respect to the Notes for which it served as
Authenticating Agent without the execution or filing of any paper or any
further act on the part of the Trustee or such Authenticating Agent. Any
Authenticating Agent may at any time, and if it shall cease to be eligible
shall, resign by giving written notice of resignation to the Trustee and to the
Company.

          Upon receiving such a notice of resignation or upon such a termination, or
in case at any time any Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section 6.14, the Trustee shall upon
receipt of a Company Order appoint a successor Authenticating Agent and the
Company shall provide notice of such appointment to all Holders

45

 

of Notes in the manner and to the extent provided in Section 11.4. Any
successor Authenticating Agent upon acceptance of its appointment hereunder
shall become vested with all rights, powers, duties and responsibilities of its
predecessor hereunder, with like effect as if originally named as
Authenticating Agent. The Company agrees to pay to the Authenticating Agent
from time to time reasonable compensation. The Authenticating Agent for the
Notes shall have no responsibility or liability for any action taken by it as
such at the direction of the Trustee.

          Section 6.2, 6.3, 6.4, 6.6 and 7.3 shall be applicable to any Authenticating Agent.

ARTICLE VII.

CONCERNING THE HOLDERS OF NOTES

     Section 7.1.   Evidence of Action Taken by Holders of Notes.

          Any request, demand, authorization, direction, notice, consent, waiver or
other action provided by this Indenture to be given or taken by a specified
percentage in principal amount of the Securityholders may be embodied in and
evidenced by one or more instruments of substantially similar tenor signed by
such specified percentage of Holders of Notes in person or by 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. Proof of execution of any instrument or of a writing appointing
any such agent shall be sufficient for any purpose of this Indenture and
(subject to Section 6.1 and Section 6.2) conclusive in favor of the Trustee and
the Company, if made in the manner provided in this Article.

     Section 7.2.  Proof of Execution of Instruments and of Holding of Notes.

          Subject to Section 6.1 and Section 6.2, the execution of any instrument by
a Securityholder or his agent or proxy may be proved in accordance with such
reasonable rules and regulations as may be prescribed by the Trustee or in such
manner as shall be satisfactory to the Trustee. The holding or Notes shall be
proved by the Security Register or by a certificate of the registrar thereof.

     Section 7.3.  Holders to be Treated as Owners.

          The Company, the Trustee and any agent of the Company or the Trustee may
deem and treat the person in whose name any Note shall be registered upon the
Security Register as the absolute owner of such Note (whether or not such Note
shall be overdue and notwithstanding any notation of ownership or other writing
thereon) for the purpose of receiving payment of or on account of the principal
of and, subject to the provisions of this Indenture, interest on such Note and
for all other purposes; and neither the Company nor the Trustee nor any agent
of the Company or the Trustee shall be affected by any notice to the contrary.

          If the Notes are issued in the form of one or more Global Notes, the
Depository therefor may grant proxies to Persons having a beneficial ownership
in such Global Note or Notes for purposes of voting or otherwise responding to
any request for consent, waiver or other action which the Holder of such Note
is entitled to grant or take under this Indenture and the Trustee shall accept
such proxies for the purposes granted; provided that neither the Trustee nor
the

46

 

Company shall have any obligation with respect to the grant of or
solicitation by the Depository of such proxies.

     Section 7.4.  Notes Owned by Company Deemed Not Outstanding.

          In determining whether the Holders of the requisite aggregate principal
amount of Outstanding Notes have concurred in any request, demand,
authorization, direction, notice, consent, waiver or other action by Holders of
Notes under this Indenture, Notes which are owned by the Company or any other
obligor on the Notes with respect to which such determination is being made or
by any person directly or indirectly controlling or controlled by or under
direct or indirect common control with the Company or any other obligor on the
Notes with respect to which such determination is being made shall be
disregarded and deemed not to be Outstanding for the purpose of any such
determination, except that for the purpose of determining whether the Trustee
shall be protected in relying on any such action only Notes which a Responsible
Officer of the Trustee knows are so owned shall be so disregarded. Notes so
owned which have been pledged in good faith may be regarded as Outstanding if
the pledgee establishes to the satisfaction of the Trustee the pledgee’s right
so to act with respect to such Notes and that the pledgee is not the Company or
any other obligor upon the Notes or any person directly or indirectly
controlling or controlled by or under direct or indirect common control with
the Company or any other obligor on the Notes. In case of a dispute as to such
right, the advice of counsel shall be full protection in respect of any
decision made by the Trustee in accordance with such advice. Upon request of
the Trustee, the Company shall furnish to the Trustee promptly an Officer’s
Certificate listing and identifying all Notes, if any, known by the Company to
be owned or held by or for the account of any of the above-described persons;
and, subject to Section 6.1 and Section 6.2, the Trustee shall be entitled to
accept such Officer’s Certificate as conclusive evidence of the facts therein
set forth and of the fact that all Notes not listed therein are Outstanding for
the purpose of any such determination.

     Section 7.5.  Right of Revocation of Action Taken.

          At any time prior to (but not after) the evidencing to the Trustee, as
provided in Section 7.1, of the taking of any action by the Holders of the
percentage in aggregate principal amount of the Notes, specified in this
Indenture in connection with such action, any Holder of a Note the serial
number of which is shown by the evidence to be included among the serial
numbers of the Notes the Holders of which have consented to such action may, by
filing written notice at the Corporate Trust Office and upon proof of holding
as provided in this Article, revoke such action so far as concerns such Note.
Except as aforesaid any such action taken by the Holder of any Note shall be
conclusive and binding upon such Holder and upon all future Holders and owners
of such Note and of any Notes issued in exchange or substitution therefor or on
registration of transfer thereof, irrespective of whether or not any notation
in regard thereto is made upon any such Note. Any action taken by the Holders
of the percentage in aggregate principal amount of the Notes specified in this
Indenture in connection with such action shall be conclusively binding upon the
Company, the Trustee and the Holders of all the Notes affected by such action.

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ARTICLE VIII.

SUPPLEMENTAL INDENTURES

     Section 8.1.  Supplemental Indentures Without Consent of Securityholders.

          The Company, when authorized by a resolution of its Board of Directors
(which resolution may provide general terms or parameters for such action and
may provide that the specific terms of such action may be determined in
accordance with or pursuant to a Company Order), and the Trustee may from time
to time and at any time enter into an indenture or indentures supplemental
hereto for one or more of the following purposes:

               (a)     to cause the Indenture to be qualified under the Trust Indenture Act;or

               (b)     to evidence the succession of another Person to the Company and the
assumption by any such successor of the covenants of the Company herein and in
the Notes; or

               (c)     to add to the covenants of the Company for the benefit of the Holders
of Notes or to surrender any right or power herein conferred upon the Company;
or

               (d)     to add any additional Events of Default for the benefit of the Holders
of Notes; or

               (e)     to add to, change or eliminate any of the provisions of this
Indenture, provided that any such addition, change or elimination (A) shall
neither (i) apply to any Note created prior to the execution of such
supplemental indenture and entitled to the benefit of such provision nor (ii)
modify the rights of the Holder of any such Note with respect to such provision
or (B) shall become effective only when there is no such Note Outstanding; or

               (f)     to secure the Notes pursuant to the requirements of Section 3.10 or
otherwise,

               (g)     to evidence and provide for the acceptance of appointment hereunder by
a successor Trustee with respect to the Notes and to add to or change any of
the provisions of this Indenture as shall be necessary to provide for or
facilitate the administration of the trusts hereunder by more than one Trustee,
pursuant to the requirements of Section 6.11; or

               (h)     to cure any ambiguity, to correct or supplement any provision herein
or in the Security Documents which may be defective or inconsistent with any
other provision herein, or to make any other provisions with respect to matters
or questions arising under this Indenture or the Security Documents, provided
that such action pursuant to this clause (i) shall not adversely affect the
interests of the Holders of Notes in any material respect; or

               (i)     to supplement any of the provisions of the Indenture to such extent as
shall be necessary to permit or facilitate the defeasance and discharge of
Notes pursuant to Article X, provided that any such action shall not adversely
affect the interests of the Holders of Notes in any material respect.

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     Section 8.2.  Supplemental Indentures with Consent of Securityholders.

          With the consent of the Holders of a majority in principal amount of the
Outstanding Notes affected by such supplemental indenture, by act of said
Holders delivered to the Company and the Trustee, the Company, when authorized
by a Board Resolution, and the Trustee may enter into an indenture or
indentures supplemental hereto for the purpose of adding any provisions to or
changing in any manner eliminating any of the provisions of this Indenture or
of modifying in any manner the rights of the Holders of Notes under this
Indenture; provided, however, that no such supplemental indenture shall,
without the consent of the Holder of each Outstanding Note affected thereby,

               (a)     change the Stated Maturity of the principal of, or any installment of
principal of or interest on, any Note, or reduce the principal amount thereof
or the rate of interest thereon or any premium payable upon the redemption
thereof, or reduce the amount of the principal of any Note which would be due
and payable upon a declaration of acceleration of the Maturity thereof pursuant
to Section 5.2, or change any place of payment where, or the coin or currency
in which, any Note or any premium or interest thereon is payable, or impair the
right to institute suit for the enforcement of any such payment on or after the
Stated Maturity thereof (or, in the case of redemption, on or after the
Redemption Date), or

               (b)     reduce the percentage in principal amount of the Outstanding Notes,
the consent of whose Holders is required for any such supplemental indenture,
or the consent of whose Holders is required for any waiver (of compliance with
certain provisions of this Indenture or certain defaults hereunder and their
consequences) provided for in this Indenture, or

               (c)     modify any of the provisions of this Section 8.2 or Section 5.14,
except to increase any such percentage or to provide that certain other
provisions of this Indenture cannot be modified or waived without the consent
of the Holder of each Outstanding Note affected thereby; provided, however,
that this clause shall not be deemed to require the consent of any Holder with
respect to changes in the references to “the Trustee” and concomitant changes
in this Section 8.2, or the deletion of this proviso, in accordance with the
requirements of Section 6.11 and Section 8.1(h); or

               (d)     impair the right of Holders of Notes to require the Company to
repurchase Notes upon the occurrence of a Change of Control; or

               (e)     amend or modify any of the provisions of this Indenture or the Notes
or any of the Security Documents relating to the Collateral in any manner
adverse to the Holders of the Notes; or

               (f)     subordinate in right of payment the Notes to any indebtedness.

          Upon the request of the Company, accompanied by a copy of a resolution of
the Board of Directors (which resolution may provide general terms or
parameters for such action and may provide that the specific terms of such
action may be determined in accordance with or pursuant to a Company Order)
certified by the secretary or an assistant secretary of the Company authorizing
the execution of any such supplemental indenture, and upon the filing with the
Trustee of evidence of the consent of the Holders of the Notes as aforesaid and
other documents,

49

 

if any, required by Section 7.1, the Trustee shall join with the Company
in the execution of such supplemental indenture unless such supplemental
indenture affects the Trustee’s own rights, duties or immunities under this
Indenture or otherwise, in which case the Trustee may in its discretion, but
shall not be obligated to, enter into such supplemental indenture.

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

     Section 8.3.  Effect of Supplemental Indenture.

          Upon the execution of any supplemental indenture pursuant to the
provisions hereof, this Indenture shall be and be deemed to be modified and
amended in accordance therewith and the respective rights, limitations of
rights, obligations, duties and immunities under this Indenture of the Trustee,
the Company and the Holders of Notes shall thereafter be determined, exercised
and enforced hereunder subject in all respects to such modifications and
amendments, and all the terms and conditions of any such supplemental indenture
shall be and be deemed to be part of the terms and conditions of this Indenture
for any and all purposes.

     Section 8.4.  Documents to be Given to Trustee.

          The Trustee, subject to the provisions of Section 6.1 and Section 6.2,
shall be provided with an Officer’s Certificate and an Opinion of Counsel as
conclusive evidence that any supplemental indenture executed pursuant to this
Article VIII complies with the applicable provisions of this Indenture.

     Section 8.5.  Notation on Notes in Respect of Supplemental Indentures.

          Notes authenticated and delivered after the execution of any supplemental
indenture pursuant to the provisions of this Article may bear a notation in
form approved by the Trustee as to any matter provided for by such supplemental
indenture or as to any action taken by Securityholders. If the Company or the
Trustee shall so determine, new Notes so modified as to conform, in the opinion
of the Trustee and the Board of Directors, to any modification of this
Indenture contained in any such supplemental indenture may be prepared by the
Company, authenticated by the Trustee and delivered in exchange for the Notes
then Outstanding.

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

     Section 8.6.  Compliance With Trust Indenture Act.

          Every amendment or supplement to this Indenture or the Notes shall be set
forth in an amended or supplemental Indenture that complies with the TIA as
then in effect.

     Section 8.7.  Revocation and Effect of Consents.

          Until an amendment, supplement or waiver becomes effective, a consent to
it by a Holder of a Note is a continuing consent by the Holder or a Note and
every subsequent Holder of a Note

50

 

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

ARTICLE IX.

CONSOLIDATION, MERGER, SALE OR CONVEYANCE

     Section 9.1.  Company May Consolidate, Etc., Only on Certain Terms.

          The Company shall not consolidate with or merge into any other Person, or
convey, transfer or lease its properties and assets substantially as an
entirety to any other Person, and the Company shall not permit any other Person
to consolidate with or merge into the Company unless:

               (a)     in case the Company shall consolidate with or merge into another
Person or convey, transfer or lease its properties and assets substantially as
an entirety to any Person, the Person formed by such consolidation or into
which the Company is merged or the Person which acquires by conveyance or
transfer, or which leases, the properties and assets of the Company
substantially as an entirety shall be a corporation, partnership or trust,
shall be organized and validly existing under the laws of the United States of
America, any State thereof or the District of Columbia and shall expressly
assume, by an indenture supplemental hereto, executed and delivered to the
Trustee, in form satisfactory to the Trustee, the due and punctual payment of
the principal of and any premium and interest on all the Notes and the
performance or observance of every covenant of this Indenture, the Notes and
the Security Documents on the part of the Company to be performed or observed
by supplemental indenture satisfactory in form to the Trustee, executed and
delivered to the Trustee, by the Person (if other than the Company) formed by
such consolidation or into which the Company shall have been merged or by the
Person which shall have acquired the Company’s assets;

               (b)     immediately after giving effect to such consolidation, merger,
conveyance, transfer or lease, no Event of Default, and no event which, after
notice or lapse of time or both, would become an Event of Default, shall have
happened and be continuing;

               (c)     such consolidation, merger, conveyance, transfer or lease does not
adversely affect the validity or enforceability of the Notes; and

               (d)     the Company shall have delivered to the Trustee an Officer’s
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 (if
any), comply with this Indenture, the Security Documents, and the

51

 

Notes and that all conditions precedent herein provided for relating to
such transaction have been satisfied.

     Section 9.2.  Successor Corporation Substituted Upon Consent.

          Upon the consent of the Holders of two-thirds in aggregate principal
amount of the Notes at the time Outstanding, the successor corporation formed
by such consolidation or into which the Company is merged or 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 corporation had been named as the
Company herein, and thereafter (except in the case of a lease to another
Person) the predecessor corporation shall be relieved of all obligations and
covenants under the Indenture and the Notes and, in the event of such
conveyance or transfer, any such predecessor corporation may be dissolved and
liquidated.

ARTICLE X.

SATISFACTION AND DISCHARGE

     Section 10.1.  Satisfaction and Discharge of Indenture.

               (a)     If at any time (i) the Company shall have paid or caused to be paid
the principal of and interest on all the Notes Outstanding hereunder (other
than Notes which have been destroyed, lost or stolen and which have been
replaced or paid as provided in Section 2.8) as and when the same shall have
become due and payable, or (ii) the Company shall have delivered to the Trustee
for cancellation all Notes theretofore authenticated (other than any Notes that
shall have been destroyed, lost or stolen and that shall have been replaced or
paid as provided in Section 2.8) or (iii) in the case of any Notes where the
exact amount of principal of, premium, if any, on and interest due on such
Notes which can be determined at the time of making the deposit referred to in
clause (B) below, (A) all the Notes not theretofore delivered to the Trustee
for cancellation shall have become due and payable, or are by their terms to
become due and payable within one year or are to be called for redemption
within one year under arrangements satisfactory to the Trustee for the giving
of notice of redemption, and (B) the Company shall have irrevocably deposited
or caused to be deposited with the Trustee as trust funds in trust the entire
amount in (I) cash (other than moneys repaid by the Trustee or any Paying Agent
to the Company in accordance with Section 10.4, (II), direct obligations of the
United States of America, backed by its full faith and credit (“U.S. Government
Obligations”), maturing as to principal and interest at such times and in such
amounts as will insure the availability of cash sufficient to pay at such
Maturity or upon such redemption, as the case may be, or (III) a combination
thereof, sufficient, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay the principal and interest on all Notes on
each date that such principal or interest is due and payable; and if, in any
such case, the Company shall also pay or cause to be paid all other sums
payable hereunder by the Company, then this Indenture shall cease to be of
further effect (except as to (i) rights of registration of transfer and
exchange of Notes and the Company’s right of optional redemption, (ii)
substitution of mutilated, defaced, destroyed, lost or stolen Notes, (iii)
rights of holders of Notes to receive payments of principal thereof and
interest

52

 

thereon, upon the original stated due dates therefor (but not upon
acceleration), (iv) any optional redemption rights of Notes to the extent to be
exercised to make such call for redemption within one year, (v) the rights,
obligations, duties and immunities of the Trustee hereunder, including those
under Section 6.6, (vi) the rights of the Holders of Notes as beneficiaries
hereof with respect to the property so deposited with the Trustee payable to
all or any of them, and (vii) the obligations of the Company under Section 3.2
and the Trustee, on demand of the Company accompanied by an Officer’s
Certificate and an Opinion of Counsel and at the cost and expense of the
Company, shall execute proper instruments acknowledging such satisfaction of
and discharging this Indenture; provided, that the rights of Holders of the
Notes to receive amounts in respect of principal of, premium, if any, on and
interest on the Notes held by them shall not be delayed longer than required by
then applicable mandatory rules or policies of any Notes exchange upon which
the Notes are listed. The Company agrees to reimburse the Trustee for any costs
or expenses thereafter reasonably and properly incurred and to compensate the
Trustee for any services thereafter rendered by the Trustee in connection with
this Indenture or the Notes.

               (b)     The following provisions shall apply to the Notes unless specifically
otherwise provided in a Board Resolution, Officer’s Certificate or indenture
supplemental hereto. In addition to discharge of the Indenture pursuant to the
next preceding paragraph, in the case of Notes the exact amounts (including the
currency of payment) of principal of and interest due on which can be
determined at the time of making the deposit referred to in subparagraph (A)
below, the Company shall be deemed to have paid and discharged the entire
indebtedness on all the Notes on the date of the deposit referred to in
subparagraph (A) below, and the provisions of this Indenture with respect to
the Notes shall no longer be in effect (except as to (i) rights of registration
of transfer and exchange of Notes and the Company’s right of optional
redemption, (ii) substitution of mutilated, defaced, destroyed, lost or stolen
Notes, (iii) rights of Holders of Notes to receive payments of principal
thereof and interest thereon, upon the original stated due dates therefor (but
not upon acceleration), (iv) the rights, obligations, duties and immunities of
the Trustee hereunder, (v) the rights of the Holders of Notes as beneficiaries
hereof with respect to the property so deposited with the Trustee payable to
all or any of them and (vi) the obligations of the Company under Section 3.2
and the Trustee, at the expense of the Company, shall at the Company’s request,
execute proper instruments acknowledging the same, if

		
	 	     (i)     with reference to this provision the Company has irrevocably
deposited or caused to be irrevocably deposited with the Trustee as
trust funds in trust, specifically pledged as security for, and
dedicated solely to, the benefit of the Holders of the Notes (i) cash
in an amount, or (ii) in the case of any Notes the payments on which
may only be made in Dollars, U.S. Government Obligations, maturing as
to principal and interest at such times and in such amounts as will
insure the availability of cash or (iii) a combination thereof,
sufficient, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification
thereof delivered to the Trustee, to pay the principal and interest on
all Notes on each date that such principal or interest is due and
payable;

		
	 	     (ii)     such deposit will not result in a breach or violation of, or
constitute a default under, any agreement or instrument to which the
Company is a party or by which it is bound;

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	 	     (iii)     the Company has delivered to the Trustee an Opinion of
Counsel based on the fact that (x) the Company has received from, or
there has been published by, the IRS a ruling or (y) since the date
hereof, there has been a change in the applicable Federal income tax
law, in either case to the effect that, and such opinion shall confirm
that, the Holders of the Notes will not recognize income, gain or loss
for United States Federal income tax purposes as a result of such
deposit, defeasance and discharge and will be subject to United States
Federal income tax on the same amount and in the same manner and at
the same times, as would have been the case if such deposit,
defeasance and discharge had not occurred; and

		
	 	     (iv)     the Company has delivered to the Trustee an Officer’s
Certificate and an Opinion of Counsel, each stating that all
conditions precedent provided for relating to the defeasance
contemplated by this provision have been complied with.

               (c)                 The Company shall be released from its obligations under Section 3.6,
3.7, 3.8, 3.10, 3.11, 9.1 and Article XIII from all covenants and other
obligations with respect to Notes, outstanding on and after the date the
conditions set forth below are satisfied (hereinafter, “Covenant Defeasance”).
For this purpose, such Covenant Defeasance means that, with respect to the
Outstanding Notes, the Company may omit to comply with and shall have no
liability in respect of any term, condition or limitation set forth in such
Section, whether directly or indirectly by reason of any reference elsewhere
herein to such Section or by reason of any reference in such Section to any
other provision herein or in any other document and such omission to comply
shall not constitute an Event of Default under Section 5.1, but the remainder
of this Indenture and such Notes shall be unaffected thereby. The following
shall be the conditions to application of this subsection (c) of this Section
10.1:

		
	 	     (i)     
The Company has irrevocably deposited or caused to be
deposited with the Trustee as trust funds in trust for the purpose of
making the following payments, specifically pledged as security for,
and dedicated solely to, the benefit of the holders of the Notes, (i)
cash in an amount, or (ii) in the case of Notes the payments on which
may only be made in Dollars, U.S. Government Obligations maturing as
to principal and interest at such times and in such amounts as will
insure the availability of cash or (iii) a combination thereof,
sufficient, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification
thereof delivered to the Trustee, to pay the principal and interest on
all Notes;

		
	 	     (ii)     
No Event of Default or event which with notice or lapse of
time or both would become an Event of Default with respect to the
Notes shall have occurred and be continuing on the date of such
deposit;

		
	 	     (iii)     
Such Covenant Defeasance shall not cause the Trustee to
have a conflicting interest as defined in Section 6.8 and for purposes
of the Trust Indenture Act with respect to any Notes of the Company;

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	 	     (iv)     Such Covenant Defeasance shall not result in a breach or
violation of, or constitute a default under, this Indenture or any
other agreement or instrument to which the Company is a party or by
which it is bound;

		
	 	     (v)     
Such Covenant Defeasance shall not cause any Notes then
listed on any registered national Notes exchange under the Exchange
Act to be delisted;

		
	 	     (vi)     
The Company shall have delivered to the Trustee an Officer’s
Certificate and Opinion of Counsel to the effect that the Holders of
the Notes will not recognize income, gain or loss for United States
Federal income tax purposes as a result of such Covenant Defeasance
and will be subject to United States Federal income tax on the same
amounts, in the same manner and at the same times as would have been
the case if such Covenant Defeasance had not occurred; and

		
	 	     (vii)     
The Company shall have delivered to the Trustee an
Officer’s Certificate and an Opinion of Counsel, each stating that all
conditions precedent provided for relating to the Covenant Defeasance
contemplated by this provision have been complied with.

     Section 10.2.  Application by Trustee of Funds Deposited for Payment of Notes.

          Subject to Section 10.4, all moneys deposited with the Trustee (for other
trustee) pursuant to Section 10.1 shall be held in trust and applied by it to
the payment, either directly or through any Paying Agent (including the Company
acting as its own Paying Agent), to the Holders of the particular Notes for the
payment or redemption of which such moneys have been deposited with the
Trustee, of all sums due and to become due thereon for principal and interest;
but such money need not be segregated from other funds except to the extent
required by law.

     Section 10.3.  Repayment of Moneys Held by Paying Agent.

          In connection with the satisfaction and discharge of this Indenture with
respect to the Notes, all moneys then held by any Paying Agent under the
provisions of this Indenture with respect to such Notes shall, upon demand of
the Company, be repaid to it or paid to the Trustee and thereupon such Paying
Agent shall be released from all further liability with respect to such moneys.

     Section 10.4.  Return of Moneys Held by Trustee and Paying Agent Unclaimed for Two Years.

          Any moneys deposited with or paid to the Trustee or any Paying Agent for
the payment of the principal of and any premium and interest on any Note and
not so applied but remaining unclaimed for two years under applicable law shall
be transferred by the Trustee to the Company in accordance with applicable
laws, and the Holder of such Note shall thereafter look only to such Persons
for any payment which such Holder may be entitled to collect and all liability
of the Trustee and such Paying Agent with respect to such moneys shall
thereupon cease.

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     Section 10.5.  Indemnity for U.S. Government of Obligations.

          The Company shall pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the U.S. Government Obligations
deposited pursuant to Section 10.1 or the principal or interest received in
respect of such obligations.

ARTICLE XI.

MISCELLANEOUS PROVISIONS

     Section 11.1.  Incorporators, Stockholders, Officers and Directors of Company
Exempt from Individual Liability.

          No recourse under or upon any obligation, covenant or agreement contained
in this Indenture, or in any Note, or because of any indebtedness evidenced
thereby, shall be had against any incorporator, as such or against any past,
present or future stockholder, officer or director, as such, of the Company or
of any successor, either directly or through the Company or any successor,
under any rule of law, statute or constitutional provision or by the
enforcement of any assessment or by any legal or equitable proceeding or
otherwise, all such liability being expressly waived and released by the
acceptance of the Notes by the Holders thereof and as part of the consideration
for the issue of the Notes.

     Section 11.2.  Provisions of Indenture for the Sole Benefit of Parties and
Holders of Notes.

          Nothing in this Indenture or in the Notes, expressed or implied, shall
give or be construed to give to any person, firm or corporation, other than the
parties thereto and their successors and the Holders of the Notes any legal or
equitable right, remedy or claim under this Indenture or under any covenant or
provision herein contained, all such covenants and provisions being for the
sole benefit of the parties hereto and their successors and of the Holders of
the Notes.

     Section 11.3.  Successors and Assigns of Company Bound by Indenture.

          All the covenants, stipulations, promises and agreements in this Indenture
contained by or in behalf of the Company shall bind its successors and assigns,
whether so expressed or not.

     Section 11.4.  Notices and Demands on Company, Trustee and Holders of Notes.

          Any notice or demand which by any provision of this Indenture is required
or permitted to be given or served by the Trustee or by the Holders of Notes,
to or on the Company may be given or served by being deposited postage prepaid,
first-class mail (except as otherwise specifically provided herein) addressed
(until another address of the Company is filed by the Company with the Trustee)
to QuadraMed Corporation, 12110 Sunset Hills Road, Reston, Virginia 20190. Any
notice, direction, request or demand by the Company or any Holder of Notes, to
or upon the Trustee shall be deemed to have been sufficiently given or served
by being deposited postage prepaid, first-class mail (except as otherwise
specifically provided herein) addressed (until another address of the Trustee
is filed by the Trustee with the Company) to The Bank of New York, 101 Barclay
street, 8W, New York, NY 10286, Attention: Corporate Trust Administration.

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          Where this Indenture provides for notice to Holders of Registered Notes,
such notice shall be sufficiently given (unless otherwise herein expressly
provided) if in writing and mailed, first-class mail, postage prepaid, to each
Holder entitled thereto, at his last address as it appears in the Security
Register. In any case where notice to such Holders is given by mail, neither
the failure to mail such notice, nor any defect in any notice so mailed, to any
particular Holder shall affect the sufficiency of such notice with respect to
other Holders. Where this Indenture provides for notice in any manner, such
notice may be waived in writing by the person entitled to receive such notice,
either before or after the event, and such waiver shall be the equivalent of
such notice. Waivers of notice by Holders shall be filed with the Trustee, but
such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such waiver.

          In case, by reason of the suspension of or irregularities in regular mail
service, it shall be impracticable to mail notice to the Company when such
notice is required to the given pursuant to any provision of this Indenture,
then any manner of giving such notice as shall be reasonably satisfactory to
the Trustee shall be deemed to be a sufficient giving of such notice.

     Section 11.5.  Officer’s Certificates and Opinions of Counsel; Statements to
be Contained Therein.

          Upon any application or demand by the Company to the Trustee to take any
action under any of the provisions of this Indenture, the Company shall furnish
to the Trustee an Officer’s Certificate stating that all conditions precedent
provided for in this Indenture relating to the proposed action have been
complied with and an Opinion of Counsel stating that in the opinion of such
counsel all such conditions precedent have been complied with, except that in
the case of any such application or demand as to which the furnishing of such
documents is specifically required by any provision of this Indenture relating
to such particular application or demand, no additional certificate or opinion
need be furnished.

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

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

57

 

matters upon which his certificate, statement or opinion may be based as
aforesaid are erroneous, or in the exercise of reasonable care should know that
the same are erroneous.

          Any
certificate, statement or opinion of an officer of the Company or of counsel may be based, insofar as it relates to accounting matters, upon a
certificate or opinion of or representations by an accountant or firm of
accountants in the employ of the Company, unless such officer or counsel, as
the case may be, knows that the certificate or opinion of or representations
with respect to the accounting matters upon which his certificate, statement or
opinion may be based as aforesaid are erroneous, or in the exercise of
reasonable care should know that the same are erroneous.

          Any certificate or opinion of any independent firm of public accountants
filed with and directed to the Trustee shall contain a statement that such firm
is independent.

     Section 11.6.  Payments Due on Saturdays, Sundays and Holidays.

          If the date of Maturity of interest on or principal of the Notes or the
date fixed for redemption or repayment of any such Note shall not be a Business
Day, then payment of interest or principal need not be made on such date, but
may be made on the next succeeding Business Day with the same force and effect
as if made on the date of Maturity or the date fixed for redemption, and no
interest shall accrue for the period after such date.

     Section 11.7.  Conflict of Any Provision of Indenture with Trust Indenture Act.

          If and to the extent that any provision of this Indenture limits,
qualifies or conflicts with duties imposed by, or with another provision (an
“incorporated provision”) included in this Indenture by operation of Sections
310 to 318, inclusive, of the Trust Indenture Act, such imposed duties or
incorporated provision shall control.

     Section 11.8.  New York Law to Govern.

          THIS INDENTURE AND EACH NOTE SHALL BE DEEMED TO BE A CONTRACT UNDER THE
LAWS OF THE STATE OF NEW YORK, AND FOR ALL PURPOSES SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF SUCH STATE, WITHOUT REGARD TO THE CONFLICTS OF LAW
PRINCIPLES THEREOF.

     Section 11.9.  Counterparts.

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

     Section 11.10.  Effect of Headings.

          The Article and Section headings herein and the Table of Contents are for
convenience only and shall not affect the construction hereof.

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     Section 11.11.  Severability.

          Each provision of this Indenture shall be considered separable and if for
any reason any provision which is not essential to the effectuation of the
basic purpose of this Indenture or the Notes 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.

ARTICLE X II.

REDEMPTION OF NOTES

     Section 12.1.  Optional Redemption.

          The Notes are subject to redemption upon not less than 30 nor more than 60
days’ notice by first class mail, at any time on or after April 17, 2006, as a
whole or in part, at the election of the Company. If redeemed during the
12-month period beginning April 1 of the years indicated (April 17, in the case
of 2006), the redemption price shall be (expressed as percentages of the
principal amount):

	 	 	 	 	 
	Year	 	Redemption Price
	
	 	

	2006
	 	 	101.50	%
	2007
	 	 	100.75	%
	2008
	 	 	100.00	%

together in the case of any such redemption with accrued interest to the
Redemption Date, but interest installments whose Stated Maturity is on or prior
to such Redemption Date will be payable to the Holders of such Notes, or one or
more Predecessor Notes, of record at the close of business on the Regular
Record Dates referred to on the face hereof. All accrued and unpaid interest
shall be paid in cash.

          Any redemption pursuant to this Section 12.1 shall be made pursuant to the
provisions of Section 12.1 through 12.4 hereof

     Section 12.2.  Notice of Redemption; Partial Redemptions.

          Notice of redemption to the Holders of Notes to be redeemed as a whole or
in part at the option of the Company shall be given by mailing notice of such
redemption by first class mail, postage prepaid, at least 30 days and not more
than 60 days prior to the date fixed for redemption to such Holders of Notes at
their last addresses as they shall appear upon the Security Register. Any
notice which is mailed in the manner herein provided shall be conclusively
presumed to have been duly given, whether or not the Holder receives the
notice. Failure to give notice by mail, or any defect in the notice to the
Holder of any Note designated for redemption as a whole or in part shall not
affect the validity of the proceedings for the redemption of such Note.

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          The notice of redemption shall include a description of the Notes,
including CUSIP number, the date fixed for redemption, the redemption price,
the place or places of payment, that payment will be made upon presentation and
surrender of such Notes and, that interest accrued to the date fixed for
redemption will be paid as specified in such notice and that on and after said
date interest thereon or on the portions thereof to be redeemed will cease to
accrue. In case any Note is to be redeemed in part only the notice of
redemption shall state the portion of the principal amount thereof to be
redeemed and shall state that on and after the date fixed for redemption, upon
surrender of such Note, a new Note or Notes in principal amount equal to the
unredeemed portion thereof will be issued.

          The notice of redemption of Notes to be redeemed at the option of the
Company shall be given by the Company or, at the Company’s request, by the
Trustee in the name and at the expense of the Company.

          On or before the redemption date specified in the notice of redemption
given as provided in this Section, the Company will deposit with the Trustee or
with one or more Paying Agents (or, if the Company is acting as its own Paying
Agent, set aside, segregate and hold in trust as provided in Section 3.4) an
amount of money sufficient to redeem on the redemption date all the Notes so
called for redemption at the appropriate redemption price, together with
accrued interest to the date fixed for redemption. The Company will deliver to
the Trustee at least 70 days prior to the date fixed for redemption, or such
shorter period as shall be acceptable to the Trustee, an Officer’s Certificate
stating the aggregate principal amount of Notes to be redeemed, the redemption
price and the date fixed for redemption. In case of a redemption at the
election of the Company prior to the expiration of any restriction on such
redemption, the Company shall deliver to the Trustee, prior to the giving of
any notice of redemption to Holders pursuant to this Section, an Officer’s
Certificate stating that such restriction has been complied with.

          If less than all the Notes are to be redeemed, the Trustee shall select by
lot, pro rata or in such manner as it shall deemed appropriate and fair, in its
sole discretion, Notes to be redeemed in whole or in part. Notes may be
redeemed in part in multiples equal to the minimum authorized denomination for
Notes or any multiple thereof. The Trustee shall promptly notify the Company in
writing of the Notes selected for redemption and, in the case of any Notes
selected for partial redemption, the principal amount thereof to be redeemed.
For all purposes of this Indenture, unless the context otherwise requires, all
provisions relating to the redemption of Notes shall relate, in the case of any
Note redeemed or to be redeemed only in part, to the portion of the principal
amount of such Note which has been or is to be redeemed.

     Section 12.3.  Payment of Notes Called for Redemption.

          If notice of redemption has been given as above provided, the Notes or
portions of Notes specified in such notice shall become due and payable on the
date and at the place stated in such notice at the applicable redemption price,
together with interest accrued to the date fixed for redemption, and on and
after said date (unless the Company shall default in the payment of such Notes
at the redemption price, together with interest accrued to said date) interest
on the Notes or portions of Notes so called for redemption shall cease to
accrue, and, except as provided in Section 6.5 and Section 10.4, such Notes
shall cease from and after the date fixed for redemption to be entitled to any
benefit or security under this Indenture, and the Holders thereof shall have

60

 

no right in respect of such Notes except the right to receive the
redemption price thereof and unpaid interest to the date fixed for redemption.
On presentation and surrender of such Notes at a place of payment specified in
said notice, appertaining thereto maturing after the date fixed for redemption,
said Notes or the specified portions thereof shall be paid and redeemed by the
Company at the applicable redemption price, together with interest accrued
thereon to the date fixed for redemption; provided, that payment of interest
becoming due on or prior to the date fixed for redemption shall be payable in
the case of Registered Notes, to the Holder of such Registered Notes registered
as such on the relevant record date, subject to the terms and provisions of
Section 2.6 hereof.

          If the Company fails to deposit the funds for redemption with the Trustee
and any Note called for redemption shall not be so paid upon surrender thereof
for redemption, the principal shall, until paid or duly provided for, bear
interest from the date fixed for redemption at the rate of interest borne by
such Note.

          Upon presentation of any Note redeemed in part only, the Company shall
execute and the Trustee shall authenticate and deliver to or on the order of
the Holder thereof, at the expense of the Company, a new Note or Notes, of
authorized denominations, in principal amount equal to the unredeemed portion
of the Note so presented.

     Section 12.4.  Exclusion of Certain Notes from Eligibility for Selection for Redemption.

          Notes shall be excluded from eligibility for selection for redemption if
they are identified by registration and certificate number in an Officer’s
Certificate delivered to the Trustee at least 40 days prior to the last date on
which notice of redemption may be given as being owned of record and
beneficially by, and not pledged or hypothecated by, either (a) the Company or
(b) an entity specifically identified in such written statement as directly or
indirectly controlling or controlled by or under direct or indirect common
control with the Company.

ARTICLE XIII.

SECURITY ARRANGEMENTS

     Section 13.1.  Collateral and Security Documents.

               (a)     To secure the due and punctual payment of principal of (and premium,
if any) and interest on the Notes by the Company when and as the same shall be
due and payable, whether on an Interest Payment Date, at Stated Maturity, by
acceleration, call for redemption or upon a Repurchase Offer, or otherwise, and
interest on the overdue principal of and interest (to the extent permitted by
law), on the Notes and performance of all other Obligations of the Company to
the Holders of the Notes, the Trustee or the Collateral Agent under this
Indenture, the Notes and the Security Documents, according to the terms
hereunder or thereunder, the Company will enter into the Security Documents, to
create the security interests with respect to the Collateral. The Trustee, the
Collateral Agent and the Company hereby acknowledge and agree that the
Collateral Agent holds the Collateral in trust for the benefit of the Holders
and the Trustee, among others, pursuant to the terms of the Security Documents.

61

 

               (b)     Each Holder, by accepting a Note, agrees to all of the terms and
provisions of the Security Documents (including, without limitation, the
provisions providing for foreclosure and release of Collateral) as the same may
be in effect or may be amended from time to time in accordance with the terms
thereof and hereof, and authorizes and directs the Collateral Agent, to perform
their respective obligations and exercise their respective rights under the
Security Documents in accordance therewith; provided, however, that if any
provisions of the Security Documents limit, qualify or conflict with the duties
imposed by the provisions of the TIA, the TIA will control.

               (c)     As more fully set forth in, and subject to the provisions of, the
Security Documents, the Holders, and the Trustee and the Collateral Agent on
behalf of such Holders, will have rights in and to the Collateral that are
subject to the rights that have been or may be created in favor of the holders
of other Indebtedness and obligations of the Company.

               (d)     As among the Holders, the Collateral shall be held for the equal and
ratable benefit of the Holders without preference, priority or distinction of
any thereof over any other.

               (e)     At any time the Trustee acts as Collateral Agent, the Trustee (i)
shall not be deemed to have breached its fiduciary duty as Trustee to the
Holders as a result of the performance of its duties as Collateral Agent to the
extent it acts in compliance with the Security Documents and (ii) shall not be
liable to the Holders for any such action or inaction. The rights and
interests created under this Indenture shall be subject to the terms of the
Security Documents.

               (f)     The Company shall do or cause to be done all such acts and things as
may be necessary or proper, or as may be required by the provisions of the
Security Documents to which it is a party, to assume and confirm to the Trustee
and the Collateral Agent, the Liens on the Collateral contemplated hereby and
by the Security Documents to which it is a party, as from time to time
constituted, so as to render the same available for the security and benefit of
this Indenture and of the Notes according to the intent and purposes herein and
therein expressed. The Company shall take, as required by applicable law, any
and all actions reasonably required to cause the Security Documents to which it
is a party to create and maintain, as security for the Obligations of the
Company under this Indenture and the Notes and the Security Documents to which
it is a party, to be valid and enforceable, perfected (except as expressly
provided herein and therein) Liens in and on all the Collateral in favor of the
Collateral Agent for the benefit of the Trustee and for the equal and ratable
benefit of the Holders of the Notes.

     Section 13.2.  Release of Collateral.

          Collateral may be released from the Liens created by the Security
Documents at any time or from time to time, and the Security Documents may be
terminated, in accordance with the provisions of this Indenture and the
Security Documents. The release of any Collateral from the terms hereof and of
the Security Documents or the release of, in whole or in part, the Liens
created by the Security Documents, or the termination of the Security
Documents, will not be deemed to impair the Liens on the Collateral in
contravention of the provisions hereof if and to the extent that the Liens on
Collateral are released, or the Security Documents are terminated, pursuant to
this Indenture and the applicable Security Documents. The Trustee and each of
the

62

 

Holders acknowledge that a release of Collateral or a Lien strictly in
accordance with the terms of the Security Documents will not be deemed for any
purpose to be an impairment of the Lien on the Collateral in contravention of
the terms of this Indenture. To the extent applicable, the Company shall cause
Section 314(d) of the TIA relating to the release of property or securities
from the Lien hereof and of the Security Documents to be complied with. Any
certificate or opinion required by Section 314(d) of the TIA may be made by an
officer of the Company, except in cases which Section 314(d) of the TIA
requires that such certificate or opinion be made by an independent person. In
releasing any Collateral pursuant to the terms of the Indenture, including the
provisions of Section 1307(a) hereof, or any Security Document, the Trustee
shall be entitled to receive, and shall be fully protected in relying upon, in
addition to the documents required by Section 11.5, an Officer’s Certificate
certifying that such release is authorized or permitted by this Indenture and
the Security Documents and that all conditions precedent, if any, to such
release have been satisfied.

     Section 13.3.  Opinions as to Recording.

               (a)     The Company represents that it has caused or will promptly cause to be
executed and delivered, filed and recorded and covenants that it will promptly
cause to be executed and delivered and filed and recorded, all instruments and
documents, and represents that it has done and will do or will cause to be done
all such acts and other things, at the Company’s expense, as are necessary to
subject the applicable Collateral to valid Liens and to perfect those Liens to
the extent contemplated by the Security Documents. The Company shall, as
promptly as practicable, cause to be executed and delivered, filed and recorded
all instruments and do all acts and other things as may be required by law to
perfect, maintain and protect the Liens under the applicable Security Documents
to which it is party (except as otherwise expressly provided herein and
therein) to the extent contemplated by the Security Documents.

               (b)     The Company shall otherwise comply with the provisions of Section
314(b) and, as applicable Sections 314(c), (d) and (e) of the TIA.

     Section 13.4.  Further Assurances and Security.

	
	          The Company will execute, acknowledge and deliver to the Trustee and the
Collateral Agent, at the Company’s expense, at any time and from time to time
such further assignments, transfers, assurances or other instruments as may be
reasonably required to effectuate the terms of this Indenture and the Security
Documents, and will at any time and from time to time do or cause to be done
all such acts and things as may be necessary or proper, or as may be reasonably
required by the Trustee or the Collateral Agent, to assure and confirm to the
Trustee and the Collateral Agent, the Liens in the Collateral contemplated
hereby and by the Security Documents, all to the extent contemplated by the
Security Documents.

     Section 13.5.  Authorization of Actions to be Taken by Collateral Agent Under
the Security Documents.

          The Collateral Agent, may, in its sole discretion and without the consent
of the Holders, on behalf of the Holders, take all actions it deems necessary
or appropriate in order to (a) enforce any of the terms of the Security
Documents and (b) collect and receive any and all amounts

63

 

payable in respect of the obligations of the Company hereunder. The Trustee,
in its capacity as Collateral Agent, shall have the power to institute and to
maintain such suits and proceedings as such Person may deem expedient to
prevent any impairment of the Collateral by any acts that may be unlawful or in
violation of the Security Documents or this Indenture, and such suits and
proceedings as the Trustee may deem expedient to preserve or protect its
interests and the interests of the Holders in the Collateral (including power
to institute and maintain suits or proceedings to restrain the enforcement of
or compliance with any legislative or other government enactment, rule or order
that may be unconstitutional or otherwise invalid if the enforcement of, or
compliance with, such enactment, rule or order would impair the security
interest hereunder or be prejudicial to the interests of the Holders or of the
Trustee).

     Section 13.6.  Authorization of Receipt of Funds by the Trustee Under the
Security Documents.

The Trustee is authorized to receive any funds for the benefit of the Holders
distributed under the Security Documents, and to make further distributions of
such funds to the Holders according to the provisions of this Indenture and the
Security Documents.

[Signature Page Follows]

64

 

          IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed as of the date first written above.

	 	 	 
	 	
QUADRAMED CORPORATION
	 	 	 
	 	
By:
	 	 	

	 	 	
Name:
	 	 	
Title:
	 	 	 
	 	
THE BANK OF NEW YORK

as Trustee
	 	 	 
	 	
By:
	 	 	

	 	 	
Name:
	 	 	
Title:

65

 

EXHIBIT A

Form of Note

66exv4w5

 

EXHIBIT 4.5

REGISTRATION RIGHTS AGREEMENT

     This REGISTRATION RIGHTS AGREEMENT (the “Agreement”) is made and entered
into as of April 17, 2003, by QuadraMed Corporation, a Delaware corporation
(the “Company”), the investors whose signatures appear on the execution pages
of this Agreement (collectively, the “Investors”), and Philadelphia Brokerage
Corporation (“PBC”) a Pennsylvania corporation.

     A.     On the date hereof, pursuant to a Securities Purchase Agreement (the
“Purchase Agreement”), by and among the Company and the Investors: (i) the
Investors have acquired units consisting in the aggregate of $71,000,000 in
principal amount of the Company’s Senior Secured Notes due 2008 (the “Notes”)
and 11,303,842 warrants, detachable upon issuance of the Notes and bearing an
exercise price of $0.01 each, to purchase an equal number of shares of the
Company’s common stock, par value $0.01 per share (the “Warrants,” and the
shares of the Company’s common stock issuable upon the exercise thereof, the
“Warrant Shares”), with each Investor acquiring the number of Notes and
Warrants set forth opposite such Investor’s name on the Schedule attached to
the Purchase Agreement; (ii) the Company may issue to the Investors an
additional 2,047,978 Warrants to purchase a like number of Warrant Shares under
certain circumstances described in the Purchase Agreement; and (iii) the
Company has issued to PBC, as compensation for its services, 282,596 Warrants.

     B.     Pursuant to the terms of the Purchase Agreement, the Company has agreed
to provide to the holders of the Notes and Warrants registration rights with
respect to the Registrable Securities (as defined below) as set forth in this
Agreement.

     The Parties hereby agree as follows:

     1.     Definitions.

     For purposes of this Agreement:

          (a)     “Affiliate” of a Person means any Person that directly or indirectly
through one or more intermediaries controls or is controlled by, or is under
common control with, such other Person. For purposes of this definition, the
term “control” (including the terms “controlling,” “controlled by” and “under
common control with”) means the possession, direct or indirect, of the power to
cause the direction of the management and policies of a Person, whether through
the ownership of voting securities, by contract or otherwise.

          (b)     “Holder” means a Person that (i) is a party to this Agreement (or a
permitted transferee under Section 12 hereof) and (ii) owns Registrable
Securities; provided, however, that for purposes of this Agreement, Holders of
Registrable Securities will not be required to convert their Warrant Shares
into Common Stock in order to exercise the registration rights granted
hereunder, until immediately before the closing of the offering to which the
registration relates.

          (c)     “NASD” means the National Association of Securities Dealers, Inc.

 

 

          (d)     “Participating Holders” means Holders participating, or electing to
participate, in an offering of Registrable Securities.

          (e)     “Person” means any individual, firm, corporation, company,
partnership, trust, incorporated or unincorporated association, limited
liability company, joint venture, joint stock company, government (or an agency
or political subdivision thereof) or other entity of any kind, and shall
include any successor (by merger or otherwise) of any such entity.

          (f)     “Registrable Securities” means (i) the Notes and (ii) the Warrant
Shares (including those Warrant Shares which are received upon the exercise of
the additional Warrants that may be issued pursuant to the Purchase Agreement,
as described in Recital A (ii) above) and any other securities issued in
exchange for the foregoing securities, each upon original issuance thereof and
at all times subsequent thereto. For the purposes of this Agreement, any
Registrable Security will cease to be a Registrable Security when (i) a
registration statement covering such Registrable Securities has been declared
effective for the period that such Registration Statement remains effective,
(ii) they are distributed to the public pursuant to Rule 144 (or any similar
provision then in force) under the Securities Act of 1933, as amended (the
“Securities Act”); or (iii) counsel for the Company and counsel for the holder
of such Registrable Security agree, which agreement shall not be unreasonably
withheld, that the resale of such Registrable Security is exempt from
registration under the Securities Act or may be resold to the public pursuant
to Rule 144 without being subject to holding periods or volume limitations that
would restrict the sale of all the Registrable Securities held by the holder
thereof.

          (g)     “Registration Expenses” mean all expenses (other than underwriting
discounts and commissions) arising from or incident to the performance of, or
compliance with, this Article 2, including, without limitation, (i) SEC, stock
exchange, NASD and other registration and filing fees, (ii) all reasonable and
documented fees and expenses incurred by the Company in connection with
complying with any securities or blue sky laws (including, without limitation,
fees, charges and disbursements of counsel in connection with blue sky
qualifications of the Registrable Securities), (iii) all printing, messenger
and delivery expenses, (iv) the fees, charges and disbursements of counsel to
the Company and of its independent public accountants and any other accounting
and legal fees, charges and expenses incurred by the Company (including,
without limitation, any expenses arising from any special audits or “comfort
letters” required in connection with or incident to any registration), (v) the
fees, charges and disbursements of any special experts retained by the Company
in connection with any registration pursuant to the terms of this Agreement,
(vi) all internal expenses of the Company (including, without limitation, all
salaries and expenses of its officers and employees performing legal or
accounting duties), (vii) the fees and expenses incurred in connection with the
listing of the Registrable Securities on any securities exchange or Nasdaq and
(viii) Securities Act liability insurance (if the Company elects to obtain such
insurance), regardless of whether any Registration Statement filed in
connection with such registration is declared effective.

          (h)     “Registration Statement” shall mean any Registration Statement of the
Company filed with the SEC on the appropriate form pursuant to the Securities
Act that covers any of the Registrable Securities pursuant to the provisions of
this Agreement and all
amendments and supplements to any such Registration Statement, including
post-effective amend-

2

 

ments, in each case including the prospectus contained
therein, all exhibits thereto and all materials incorporated by reference
therein.

          (i)     “SEC” or “Commission” means the United States Securities and Exchange
Commission.

          (j)     “Selling Expenses” shall mean the underwriting fees, discounts,
selling commissions, “roadshow” expenses and stock transfer taxes applicable to
all Registrable Securities registered by the Participating Holders.

     2.     Demand Registration

          (a)     Request by Holders. From and after the date that is thirty (30) days
following the date on which the Company is current with respect to the filings
with the Commission required to be made by it pursuant to the Exchange Act of
1934, as amended (the “Exchange Act”), if the Company receives a written
request from Holders that hold at least ten percent (10%) of the Notes or
Warrant Shares, as applicable, originally issued (the “Requesting Holders”)
that the Company register Registrable Securities held by Requesting Holders (a
“Demand Request”), then the Company shall, within ten (10) days after receipt
of such Demand Request, give written notice of such request (“Request Notice”)
to all Holders. Each Demand Request shall (x) specify the type and number of
Registrable Securities that the Requesting Holders intend to sell or dispose
of, (y) state the intended method or methods of sale or disposition of such
Registrable Securities and (z) specify the expected price range (net of
underwriting discounts and commissions) acceptable to the Requesting Holders to
be received for such Registrable Securities. Following receipt of a Demand
Request, the Company shall:

               (i)     cause to be filed, as soon as practicable, but within ninety (90) days
of the date of delivery to the Company of the Demand Request, a Registration
Statement covering such Registrable Securities that the Company has been so
requested to register by the Requesting Holders and other Holders who request
to the Company that their Registrable Securities be registered within fifteen
(15) days of the mailing of the Request Notice, providing for the registration
under the Securities Act of such Registrable Securities to the extent necessary
to permit the disposition of such Registrable Securities in accordance with the
intended method of distribution specified in such Demand Request; and

               (ii)     use its commercially reasonable efforts to have such Registration
Statement declared effective by the SEC as soon as practicable thereafter.

          (b)     Effective Registration Statement. A registration requested pursuant
to this Article 2 shall not be deemed to have been effected (i) unless a
Registration Statement with respect thereto has become effective (unless a
substantial cause of the failure of such Registration Statement to become
effective shall be attributable to one or more Participating Holders) and
remained effective in compliance with the provisions of the Securities Act with
respect to the disposition of all Registrable Securities covered by such
Registration Statement until such time as all of such Registrable Securities
have been disposed of in accordance with the intended methods of disposition by
the Holders thereof set forth in such Registration Statement;
provided, however, that such period shall not exceed forty-five (45) days;
(ii) if, after it has become effective, such

3

 

registration is interfered with by
any stop order, injunction or other order or requirement of the SEC or other
governmental agency or court for any reason not attributable to the
Participating Holders and has not thereafter become effective.

          (c)     Selection of Underwriters. In the event that the Company is required
to file a Registration Statement covering any Registrable Securities of any
Requesting Holders pursuant to Section 2(a) hereof and the proposed public
offering is to be an underwritten public offering, the managing underwriter
shall be one or more reputable nationally recognized investment banks selected
by a majority in interest of the Requesting Holders and reasonably acceptable
to the Company, which consent shall not be unreasonably withheld, delayed or
conditioned.

          (d)     Priority for Demand Registration. Notwithstanding any other provision
of this Article 2, if the managing underwriter of an underwritten public
offering determines and advises the Participating Holders and the Company in
writing that the inclusion of all securities proposed to be included by the
Company and any other Holders in the underwritten public offering would
adversely interfere with the successful marketing of the Requesting Holders’
Registrable Securities, then the Company and other Holders shall not be
permitted to include any securities in excess of the amount, if any, of
securities that the managing underwriter of such underwritten public offering
shall reasonably and in good faith agree in writing to include in such public
offering in addition to the amount of Registrable Securities to be registered
for the Requesting Holders. The Company will be obligated to include in such
Registration Statement, as to each Participating Holder, only a portion of the
Registrable Securities such Participating Holder has requested be registered
equal to the ratio that such Participating Holder’s requested Registrable
Securities bears to the total number of Registrable Securities requested to be
included in such Registration Statement by all Participating Holders. It is
acknowledged by the parties hereto that pursuant to the foregoing provision,
the securities to be included in a registration requested by the Requesting
Holders pursuant to Section 2 shall be allocated: (i) first, to the
Participating Holders; and (ii) second, to the Company.

          (e)     Limitations on Demand Registrations.

               (i)     The Company may delay making a filing of a Registration Statement or
taking action in connection therewith by not more than one hundred and twenty
(120) days if the Company provides a written certificate signed by the
President and Chief Executive Officer of the Company to the Holders, prior to
the time it would otherwise have been required to file such Registration
Statement or take such action pursuant to this Section 2, stating that the
Board has determined in good faith that the filing of such Registration
Statement would be seriously detrimental to the Company or would otherwise
materially adversely affect a financing, acquisition, disposition, merger or
other material transaction (collectively, a “Valid Business Reason”) and that
it is therefore essential to defer the filing of the Registration Statement;
provided, however, that such right to delay a Demand Request shall be exercised
by the Company not more than twice in any twelve (12) month period and the
Company shall only have the right to delay a Demand Request so long as such
Valid Business Reason exists, and during such time, the Company may not file a
Registration Statement for securities to be issued and sold for its own account
or for that of anyone other than the Holders.

4

 

               (ii)     The Company shall only be obligated to effect five (5) Demand
Requests pursuant to this Section 2 and the Holders agree not to make a Demand
Request until six (6) months after the effective date of a Registration
Statement relating to a Demand Request.

               (iii)     The Company shall not be required to comply with a Demand Request
unless the reasonably anticipated aggregate gross proceeds to be raised (before
any underwriting discounts and commissions) would be equal to or exceed 10% of
the aggregate principal amount of Notes originally issued or 10% of the
aggregate number of Warrants originally issued.

     3.          Piggyback Registrations

          (a)     Right to Include Registrable Securities. Each time that the Company
proposes for any reason to register any of its Common Stock under the
Securities Act, either for its own account or for the account of a stockholder
or stockholders exercising demand registration rights other than Demand
Requests pursuant to Section 2 hereof or pursuant to a Registration Statement
on Forms S-4 or S-8 (or similar or successor forms) (a “Proposed
Registration”), the Company shall promptly give written notice of such Proposed
Registration to all of the Holders of Warrant Shares (which notice shall be
given not less than thirty (30) days prior to the expected effective date of
the Company’s Registration Statement) and shall offer such Holders the right to
request inclusion of any of such Holder’s Warrant Shares in the Proposed
Registration. No registration pursuant to this Section 3 shall relieve the
Company of its obligation to register Registrable Securities pursuant to a
Demand Request, as contemplated by Section 2 hereof. The rights to piggyback
registration may be exercised an unlimited number of occasions.

          (b)     Piggyback Procedure. Each Holder of Registrable Securities shall have
ten (10) days from the date of receipt of the Company’s notice referred to in
Section 3(a) above to deliver to the Company a written request specifying the
number of Warrant Shares such Holder intends to sell and such Holder’s intended
method of disposition. Any Holder shall have the right to withdraw such
Holder’s request for inclusion of such holder’s Warrant Shares in any
Registration Statement pursuant to this Section 3 by giving written notice to
the Company of such withdrawal; provided, however, that the Company may ignore
a notice of withdrawal made within twenty-four (24) hours of the time the
Registration Statement is to become effective. Subject to Section 3(d) below,
the Company shall use commercially reasonable efforts to include in such
Registration Statement all such Warrant Shares so requested to be included
therein; provided, however, that the Company may at any time withdraw or cease
proceeding with any such Proposed Registration if it shall at the same time
withdraw or cease proceeding with the registration of all other shares of
Common Stock originally proposed to be registered. In the event that the
Proposed Registration by the Company is, in whole or in part, an underwritten
public offering of securities of the Company, any request under this Section
3(b) shall specify that the Warrant Shares be included in the underwriting on
the same terms and conditions as the shares, if any, otherwise being sold
through underwriters under such registration.

          (c)     Selection of Underwriters. The managing underwriter for any Proposed
Registration that involves an underwritten public offering shall be one or more
reputable nationally recognized investment banks selected by the Company.

5

 

          (d)     Priority for Piggyback Registration.
Notwithstanding any other
provision of this Section 3, if the managing underwriter of an underwritten
public offering determines and advises the Company and the Holders in writing
that the inclusion of all Warrant Shares proposed to be included by the Holders
of Warrant Shares in the underwritten public offering would adversely interfere
with the successful marketing of the Company’s securities, then the Holders of
Warrant Shares shall not be permitted to include any Warrant Shares in excess
of the amount, if any, of Warrant Shares that the managing underwriter of such
underwritten public offering shall reasonably and in good faith agree in
writing to include in such public offering in addition to the amount of
securities to be registered for the Company. Subject to the immediately
preceding sentence, the Company will be obligated to include in such
Registration Statement, as to each Participating Holder, only a portion of the
Warrant Shares such Participating Holder has requested be registered equal to
the ratio that such Participating Holder’s requested Warrant Shares bears to
the total number of Warrant Shares requested to be included in such
Registration Statement by all Participating Holders who have requested that
their Warrant Shares be included in such Registration Statement. It is
acknowledged by the parties hereto that pursuant to the foregoing provision,
the securities to be included in a registration initiated by the Company shall
be allocated:

               (i)     first, to the Company;

               (ii)    second, pari passu to the Participating Holders; and

               (iii)   third, to any others requesting registration of securities of the
Company.

          (e)     Underwritten Offering. In the event that the Proposed Registration by
the Company is, in whole or in part, an underwritten public offering of
securities of the Company, any request under this Section 3 shall specify that
the Warrant Shares shall be included in the underwriting on the same terms and
conditions as the shares, if any, otherwise being sold through underwriters
under such registration.

     4.     Form S-3 Shelf Registration

          (a)     Effective Registration. As soon as practicable after the date on
which the Company is eligible to register securities on Form S-3 (or any
successor form) under the Securities Act, the Company shall use commercially
reasonable efforts to deliver for filing a “shelf” registration statement
pursuant to Rule 415 under the Securities Act and/or any similar rule that may
be adopted by the Commission with respect to all of the outstanding Registrable
Securities (the “Shelf Registration”).

     This Agreement shall constitute the consent of each holder of Registrable
Securities to the inclusion of such securities in the Shelf Registration upon
its effectiveness (each such consenting holder of Registrable Securities, an
“S-3 Holder”), except with respect to any Registrable Securities the holder of
which notifies the Company in writing no later than the Effective Time that it
does not wish its Registrable Securities to be included in the Shelf
Registration. The Holders shall not have demand or piggyback registration
rights during the period in which the Shelf Registration is effective or during
any period the Company has a
Registration Statement on

6

 

Form S-1 (or any successor form) under the
Securities Act declared effective and during the time such Registration
Statement remains effective.

     The Company agrees to use its efforts to have the Shelf Registration
declared effective as soon as reasonably practicable after such filing and to
keep the Shelf Registration continuously effective for a period expiring on the
date of termination of this Agreement; provided, however, that the
effectiveness of the Shelf Registration may be terminated earlier to the extent
that none of the Registrable Securities registered therein are outstanding (but
not prior to the expiration of the 90-day period referred to in Section 4(3) of
the Securities Act or Rule 174 thereunder, if applicable) or are then
Registrable Securities.

     The Company further agrees, if necessary, to supplement or amend the Shelf
Registration, as required by the registration form utilized by the Company or
by the instructions applicable to such registration form or by the Securities
Act or the rules and regulations thereunder or as reasonably requested (which
request shall result in the filing of a supplement or amendment subject to
approval thereof by the Company, which approval shall not be unreasonably
withheld) by any seller or any managing underwriter of Registrable Securities
to which the Shelf Registration relates, including without limitation, such
supplements and amendments necessary to permit underwritten sales under the
Shelf Registration, and the Company agrees to furnish to the holders of
Registrable Securities (and any managing underwriter) copies, in substantially
the form proposed to be used and/or filed, of any such supplement or amendment
prior to its being used and/or filed with the Commission. The Company shall
amend or supplement the Shelf Registration no less frequently than every thirty
(30) days to update the list of selling holders of Registrable Securities
pursuant to written requests by such holders. The Shelf Registration may
include securities other than Registrable Securities.

          (b)     Selection of Underwriters and Counsel. If any offering pursuant to
the Shelf Registration involves an underwritten offering, any holder or holders
of an aggregate of at least fifty percent (50%) of (i) the principal amount of
Notes outstanding or (ii) the aggregate number of Warrant Shares then
outstanding shall have the right to select the investment banker or bankers and
manager or managers to administer the offering and one counsel to the sellers
of Registrable Securities in such offering, which investment bankers and
managers shall be reasonably satisfactory to the Company. The holders of the
Registrable Securities to be registered shall pay all underwriting discounts
and commissions or placement or other fees or expenses of such investment
banker or bankers, manager or managers and counsel.

     5.          Blackout Periods.

          (a)     Following a Demand Request or the filing of the Shelf Registration,
upon written notice from the Company to the Participating Holders or S-3
Holders, as the case may be, that the Company determines in the good faith
judgment of the Board of Directors of the Company, based on the advice of
counsel, that the filing of any Registration Statement or the sale of
Registrable Securities pursuant to the Registration Statement would require
disclosure of material non-public information, the disclosure of which would
have a material adverse effect on the Company, the Company may, (x) if the
Registration Statement has not yet been filed, delay such filing, (y) if the
Registration Statement has been filed but has not yet become effective,
cease taking steps to cause the Registration Statement to become
effective, and (z) if the Registration

7

 

Statement has already become effective,
suspend the Participating Holders’ or S-3 Holders’ sale of Registrable
Securities pursuant to such Registration Statement until the earlier of:

               (i)     the date upon which such material information is disclosed to the
public or ceases to be material; and

               (ii)     such time as the Company notifies the selling Holders that the
Company will no longer delay such filing of the Registration Statement,
recommence taking steps to make such Registration Statement effective or allow
sales pursuant to such Registration Statement to resume.

(The period during which the Company delays the filing of the Registration
Statement, ceases taking steps to cause the Registration Statement to become
effective or suspends sales of Registrable Securities is hereinafter called a
“Blackout Period”.)

          (b)     Any delivery by the Company of notice of a Blackout Period prior to
the end of the sixty (60) day period immediately following effectiveness of any
Registration Statement effected pursuant to Section 2 hereof shall give a
majority of Participating Holders the right, by written notice to the Company
within five (5) days after the commencement of such Blackout Period, to cancel
such registration and such registration shall not count toward the Demand
Registration limit in Section 2(e). The Company shall use its reasonable
efforts to provide such notice a reasonable number of days prior to the
commencement of such a Blackout Period; provided, however, that in any event
the Company shall provide such notice no later than the commencement of such
Blackout Period.

          (c)     Notwithstanding contrary provisions in this Section 5, the Company
shall limit its use of Blackout Periods, in their aggregate, to one hundred
twenty (120) days in any twelve (12) month period.

          (d)     The Company shall not be required to keep the Shelf Registration
effective, or may without suspending such effectiveness, instruct the holders
of Registrable Securities included in the Shelf Registration not to sell such
securities, during any period during which the Company is instructed, directed,
ordered or otherwise requested by any governmental agency or self-regulatory
organization to stop or suspend such trading or sales (a “Supplemental Blackout
Period”).

     6.     Holdback Agreements.

          (a)     Restrictions on Public Sale by Holders. If requested by the lead
managing underwriter, each Holder of Registrable Securities agrees not to
effect any public sale or distribution of any Registrable Securities being
registered, including a sale pursuant to Rule 144 under the Securities Act,
during a period of not more than ninety (90) days after any other firm
underwriting public offering of securities of the Company, commencing on the
effective date of the Registration Statement (the “Lock-Up Period”), unless
expressly authorized to do so by the lead managing underwriter. Any such
lock-up agreements signed by the Holders shall contain reasonable and customary
exceptions, including, without limitation, the right of a Holder to make
transfers to certain Affiliates and transfers related to securities of the
Company owned by Holders as a result of open market purchases. The Company may
impose stop-transfer instructions

8

 

with respect to securities of the Company
subject to the foregoing restrictions until the end of the relevant period.

          (b)     Restrictions on Public Sale by the Company. The Company agrees not to
effect any public sale or distribution of any common stock of the Company for
its own account (except pursuant to registrations on Form S-4 or S-8 or any
similar or successor form) during the Lock-Up Period, to the extent reasonably
requested by the managing underwriter (except for securities being sold by the
Company for its own account under such Registration Statement); provided,
however, that the foregoing restriction shall not apply for more than one
Lock-Up Period during any twelve month period.

     7.          Registration Procedures

          (a)     Obligations of the Company. Whenever registration of Registrable
Securities is required pursuant to this Agreement, the Company shall use
commercially reasonable efforts to effect the registration and sale of such
Registrable Securities in accordance with the intended method of distribution
thereof as promptly as possible, and in connection with any such request, the
Company shall, as expeditiously as possible:

               (i)     Preparation of Registration Statement; Effectiveness. Prepare and
file with the SEC (in any event not later than ninety (90) days after receipt
of a Demand Request to file a Registration Statement with respect to
Registrable Securities, or such longer period as the Company shall in good
faith require to produce the financial statements required in connection with
such registration), a Registration Statement on any form on which the Company
then qualifies, which counsel for the Company shall deem appropriate and
pursuant to which such offering may be made in accordance with the intended
method of distribution thereof (except that the Registration Statement shall
contain such information as may reasonably be requested for marketing or other
purposes by the managing underwriter), and use commercially reasonable efforts
to cause any registration required hereunder to become effective as soon as
practicable after the initial filing thereof and remain effective for a period
of not less than sixty (60) days (or such shorter period in which all
Registrable Securities have been sold in accordance with the methods of
distribution set forth in the Registration Statement); provided, however, that,
in the case of any registration of Registrable Securities on Form S-3 that is
intended to be offered on a continuous or delayed basis, such sixty (60) day
period shall be extended, if necessary, to keep the Registration Statement
effective until all such Registrable Securities are sold, provided, however,
that Rule 415, or any successor rule under the Securities Act, permits an
offering on a continuous or delayed basis;

               (ii)     Participation in Preparation. Provide any Participating Holder, any
underwriter participating in any disposition pursuant to a Registration
Statement, and any attorney, accountant or other agent retained by any
Participating Holder or underwriter (each, an “Inspector” and, collectively,
the “Inspectors”), the opportunity to participate (including, but not limited
to, reviewing, commenting on and attending all meetings) in the preparation of
such Registration Statement, each prospectus included therein or filed with the
SEC and each amendment or supplement thereto;

9

 

               (iii)     Due Diligence. For a reasonable period prior to the filing of any
Registration Statement pursuant to this Agreement, make available for
inspection and copying by the Inspectors such financial and other information
and books and records, pertinent corporate documents and properties of the
Company and its subsidiaries and cause the officers, directors, employees,
counsel and independent certified public accountants of the Company and its
subsidiaries to respond to such inquiries and to supply all information
reasonably requested by any such Inspector in connection with such Registration
Statement, as shall be reasonably necessary, in the judgment of the respective
counsel referred to in Section 6(a)(ii), to conduct a reasonable investigation
within the meaning of the Securities Act; provided, however, that if requested
by the Company, each Inspector shall enter into a confidentiality agreement
with the Company prior to participating in the preparation of the Registration
Statement or the Company’s release or disclosure of confidential information to
such Inspector;

               (iv)     General Notifications. Promptly notify in writing the Participating
Holders, the sales or placement agent, if any, therefor and the managing
underwriter of the securities being sold, (A) when such Registration Statement
or the prospectus included therein or any prospectus amendment or supplement or
post-effective amendment has been filed, and, with respect to any such
Registration Statement or any post-effective amendment, when the same has
become effective, (B) when the SEC notifies the Company whether there will be a
“review” of such Registration Statement and (C) of any comments (oral or
written) by the SEC and by the blue sky or securities commissioner or regulator
of any state with respect thereto or (D) of any request by the SEC for any
amendments or supplements to such Registration Statement or the prospectus or
for additional information;

               (v)     10b-5 Notification. Promptly notify in writing the Participating
Holders, the sales or placement agent, if any, therefor and the managing
underwriter of the securities being sold pursuant to any Registration Statement
at any time when a prospectus relating thereto is required to be delivered
under the Securities Act upon discovery that, or upon the happening of any
event as a result of which, any prospectus included in such Registration
Statement (or amendment or supplement thereto) contains an untrue statement of
a material fact or omits to state any material fact required to be stated
therein or necessary to make the statements therein not misleading in light of
the circumstances under which they were made, and the Company shall as soon as
possible prepare a supplement or amendment to such prospectus and file it with
the SEC so that after delivery of such prospectus, as so amended or
supplemented, to the purchasers of such Registrable Securities, such
prospectus, as so amended or supplemented, shall not contain an untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein not misleading in
light of the circumstances under which they were made;

               (vi)     Notification of Stop Orders; Suspensions of Qualifications and
Exemptions. Promptly notify in writing the Participating Holders, the sales or
placement agent, if any, therefor and the managing underwriter of the
securities being sold of the issuance by the SEC of (A) any stop order issued
or threatened to be issued by the SEC or (B) any notification with respect to
the suspension of the qualification or exemption from qualification of any of
the Registrable Securities for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose and the Company agrees to use
commercially reasonable efforts to (x) prevent the issuance of any such stop
order, and in the event of such issuance, to obtain the
with-

10

 

drawal of any such stop order and (y) obtain the withdrawal of any
order suspending or preventing the use of any related prospectus or suspending
the qualification of any Registrable Securities included in such Registration
Statement for sale in any jurisdiction at the earliest practicable date;

               (vii)     Amendments and Supplements; Acceleration. Prepare and file with the
SEC such amendments, including post-effective amendments to each Registration
Statement as may be necessary to keep such Registration Statement continuously
effective for the applicable time period required hereunder and if applicable,
file any Registration Statements pursuant to Rule 462(b) under the Securities
Act; cause the related prospectus to be supplemented by any required prospectus
supplement, and as so supplemented to be filed pursuant to Rule 424 (or any
similar provisions then in force) promulgated under the Securities Act; and
comply with the provisions of the Securities Act and the Exchange Act with
respect to the disposition of all securities covered by such Registration
Statement during such period in accordance with the intended methods of
disposition by the sellers thereof set forth in such Registration Statement as
so amended or in such prospectus as so supplemented. If a majority in interest
of the Participating Holders so request, to request acceleration of
effectiveness of the Registration Statement from the SEC and any post-effective
amendments thereto, if any are filed; provided, however, that at the time of
such request, the Company does not in good faith believe that it is necessary
to amend further the Registration Statement in order to comply with the
provisions of this subparagraph. If the Company wishes to further amend the
Registration Statement prior to requesting acceleration, it shall so amend as
soon as possible prior to requesting acceleration;

               (viii)     Copies. Furnish as promptly as practicable to each Participating
Holder and Inspector prior to filing a Registration Statement or any supplement
or amendment thereto, copies of such Registration Statement, supplement or
amendment as it is proposed to be filed, and after such filing such number of
copies of such Registration Statement, each amendment and supplement thereto
(in each case including all exhibits thereto), the prospectus included in such
Registration Statement (including each preliminary prospectus) and such other
documents as each such Participating Holder or underwriter may reasonably
request in order to facilitate the disposition of the Registrable Securities
owned by such Participating Holder;

               (ix)     Blue Sky. Use commercially reasonable efforts to, prior to any
public offering of the Registrable Securities, register or qualify (or seek an
exemption from registration or qualifications) such Registrable Securities
under such other securities or blue sky laws of such jurisdictions as any
Participating Holder or underwriter may request, and to continue such
qualification in effect in each such jurisdiction for as long as is permissible
pursuant to the laws of such jurisdiction, or for as long as a Participating
Holder or underwriter requests or until all of such Registrable Securities are
sold, whichever is shortest, and do any and all other acts and things that may
be reasonably necessary or advisable to enable any Participating Holder to
consummate the disposition in such jurisdictions of the Registrable Securities;
provided, however, that the Company shall not be required in connection
therewith or as a condition thereto to qualify to do business or to file a
general consent of process in any such states or jurisdictions or subject
itself to material taxation in any such state or jurisdiction, but for this
subparagraph;

               (x)     Other Approvals. Use commercially reasonable efforts to obtain all
other approvals, consents, exemptions or authorizations from such governmental
agencies or

11

 

authorities as may be necessary to enable the Participating Holders
and underwriters to consummate the disposition of Registrable Securities;

               (xi)     Agreements. Enter into customary agreements (including any
underwriting agreements in customary form), and take such other actions as may
be reasonably required in order to expedite or facilitate the disposition of
Registrable Securities;

               (xii)     “Cold Comfort” Letter. Obtain a “cold comfort” letter from the
Company’s independent public accountants in customary form and covering such
matters of the type customarily covered by “cold comfort” letters as the
managing underwriter may reasonably request, and reasonably satisfactory to a
majority in interest of the Participating Holders;

               (xiii)     Legal Opinion. Furnish, at the request of any underwriter of
Registrable Securities on the date such securities are delivered to the
underwriters for sale pursuant to such registration, an opinion, dated such
date, of counsel representing the Company for the purposes of such
registration, addressed to the Holders, and the placement agent or sales agent,
if any, thereof and the underwriters, if any, thereof, covering such legal
matters with respect to the registration in respect of which such opinion is
being given as such underwriter may reasonably request and as are customarily
included in such opinions;

               (xiv)     SEC Compliance. Use commercially reasonable efforts to comply with
all applicable rules and regulations of the SEC;

               (xv)     Certificates, Closing. Provide officer’s certificates and other
customary closing documents;

               (xvi)     NASD. Cooperate with each Participating Holder and each underwriter
participating in the disposition of such Registrable Securities and
underwriters’ counsel in connection with any filings required to be made with
the NASD;

               (xvii)     Road Show. Cause appropriate officers as are requested by an

managing underwriter to participate in a “road show” or similar marketing
effort being conducted by such underwriter with respect to an underwritten
public offering; provided, however, that such officers shall not be required to
participate in such road show or similar marketing effort with respect to more
than one (1) public offering per year; and

               (xviii)     Transfer Agent, Registrar and CUSIP. Provide a transfer agent and
registrar for all Registrable Securities registered pursuant hereto and a CUSIP
number for all such Registrable Securities, in each case, no later than the
effective date of such registration.

          (b)     Seller Information. The Company may require each Participating Holder
as to which any registration of such Holder’s Registrable Securities is being
effected to furnish to the Company with such information regarding such
Participating Holder and such Participating Holder’s method of distribution of
such Registrable Securities as the Company may from time to time reasonably
request in writing. If a Participating Holder refuses to provide the Company
with any of such information on the grounds that it is not necessary to include
such information
in the Registration Statement, the Company may exclude such Participating
Holder’s Registrable Securities from the Registration Statement if the Company
provides such Participating Holder

12

 

with an opinion of counsel to the effect
that such information must be included in the Registration Statement and such
Participating Holder continues thereafter to withhold such information. The
exclusion of a Participating Holder’s Registrable Securities shall not affect
the registration of the other Registrable Securities to be included in the
Registration Statement.

          (c)     Notice to Discontinue. Each Participating Holder whose Registrable
Securities are covered by a Registration Statement filed pursuant to this
Agreement agrees that, upon receipt of written notice from the Company of the
happening of any event of the kind described in Section 6(a)(v), such
Participating Holder shall forthwith discontinue the disposition of Registrable
Securities until such Participating Holder’s receipt of the copies of the
supplemented or amended prospectus contemplated by Section 6(a)(v) or until it
is advised in writing by the Company that the use of the prospectus may be
resumed and has received copies of any additional or supplemental filings that
are incorporated by reference into the prospectus, and, if so directed by the
Company in the case of an event described in Section 6(a)(v), such
Participating Holder shall deliver to the Company (at the Company’s expense)
all copies, other than permanent file copies then in such Participating
Holder’s possession, of the prospectus covering such Registrable Securities
that is current at the time of receipt of such notice. If the Company shall
give any such notice, the Company shall extend the period during which such
Registration Statement is to be maintained effective by the number of days
during the period from and including the date of the giving of such notice
pursuant to Section 6(a)(v) to and including the date when the Participating
Holder shall have received the copies of the supplemented or amended prospectus
contemplated by, and meeting the requirements of, Section 6(a)(v).

          (d)     Registration Expenses. Except as otherwise provided herein, all
Registration Expenses shall be borne by the Company; provided, however, that
the Company shall not be required to pay for any Registration Expenses of any
registration proceeding commenced as a result of a Demand Request that is
subsequently withdrawn or canceled by at least a majority of the Participating
Holders, in which case the Participating Holders shall bear such Registration
Expenses pro rata on the basis of the number of shares proposed to be
registered. All Selling Expenses relating to Registrable Securities registered
shall be borne by the Participating Holders of such Registrable Securities pro
rata on the basis of the number of shares so registered.

     8.          Indemnification

          (a)     Indemnification by the Company. The Company agrees, notwithstanding
termination of this Agreement, to indemnify and hold harmless to the fullest
extent permitted by law, each Holder, each of its directors, officers,
employees, advisors, agents and general or limited partners (and the directors,
officers, employees, advisors and agents thereof), their respective Affiliates
and each Person who controls (within the meaning of the Securities Act or the
Exchange Act) any of such Persons, and each underwriter and each Person who
controls (within the meaning of the Securities Act or the Exchange Act) any
underwriter (collectively, “Holder Indemnified Parties”) from and against any
and all losses, claims, damages, expenses (including, without limitation,
reasonable costs of investigation and fees, disbursements and
other charges of counsel and any amounts paid in settlement effected with
the Company’s consent, which consent shall not be unreasonably withheld or

delayed) or other liabilities (collectively, “Losses”) to which any such Holder
Indemnified Party may become subject under the Securities Act, Exchange Act,
any other federal law, any state or common law or any rule or regulation
promul-

13

 

gated thereunder or otherwise, insofar as such Losses (or actions or
proceedings, whether commenced or threatened, in respect thereof) are resulting
from or arising out of or based upon any untrue, or alleged untrue, statement
of a material fact contained in any Registration Statement, prospectus or
preliminary prospectus (as amended or supplemented) or any document
incorporated by reference in any of the foregoing or resulting from or arising
out of or based upon any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein (in the case of a prospectus, in light of the circumstances under which
they were made), not misleading, the Company will promptly reimburse each such
Holder Indemnified Party for any legal and any other Losses reasonably incurred
in connection with investigating, preparing or defending any such claim, loss,
damage, liability, action or investigation or proceeding (collectively, a
“Claim”); provided, however, that the Company shall not be liable to any Holder
Indemnified Party for any Losses that arise out of or are based upon (x)
written information provided by a Holder Indemnified Party expressly for use in
the Registration Statement or (y) sales of Registrable Securities by a Holder
Indemnified Party to a person to whom there was not sent or given, at or before
the written confirmation of such sale, a copy of the prospectus (excluding
documents incorporated by reference) or the prospectus as then amended or
supplemented (excluding documents incorporated by reference) if the Company has
previously furnished in a timely manner a reasonable number of copies thereof
to such Holder Indemnified Party in compliance with this Agreement and the
Losses of such Holder Indemnified Party results from an untrue statement or
omission of a material fact contained in such preliminary prospectus that was
corrected in the prospectus (or the prospectus as then amended or
supplemented). Such indemnity obligation shall remain in full force and effect
regardless of any investigation made by or on behalf of the Holder Indemnified
Parties and shall survive the transfer of Registrable Securities by such Holder
Indemnified Parties.

          (b)     Indemnification by Holders. In connection with any proposed
registration in which a Holder is participating pursuant to this Agreement,
each such Holder shall furnish to the Company in writing such information with
respect to such Holder as the Company may reasonably request or as may be
required by law for use in connection with any Registration Statement or
prospectus or preliminary prospectus to be used in connection with such
registration and each Holder agrees, severally and not jointly, to indemnify
and hold harmless the Company, any underwriter retained by the Company and
their respective directors, officers, partners, employees, advisors and agents,
their respective Affiliates and each Person who controls (within the meaning of
the Securities Act or the Exchange Act) any of such Persons to the same extent
as the foregoing indemnity from the Company to the Holders as set forth in
Section 8(a) (subject to the exceptions set forth in the foregoing indemnity,
the proviso to this sentence and applicable law), but only with respect to any
such information furnished in writing by such Holder expressly for use therein;
provided, however, that the liability of any Holder under this Section 8(b)
shall be limited to the amount of the gross proceeds received by such Holder in
the offering giving rise to such liability. Such indemnity obligation shall
remain in full force and effect regardless of any investigation made by or on
behalf of the Holder Indemnified Parties (except as provided above) and shall
survive the transfer of Registrable Securities by such Holder.

          (c)     Conduct of Indemnification Proceedings. Any Person entitled to
indemnification hereunder (the “Indemnified Party”) agrees to give prompt
written notice to the indemnifying party (the “Indemnifying Party”) after the
receipt by the Indemnified Party of any written notice of the commencement of
any action, suit, proceeding or investigation or threat thereof

14

 

made in writing
for which the Indemnified Party intends to claim indemnification or
contribution pursuant to this Agreement; provided, however, that, the failure
so to notify the Indemnifying Party shall not relieve the Indemnifying Party of
any liability that it may have to the Indemnified Party hereunder unless and to
the extent such Indemnifying Party is materially prejudiced by such failure.
If notice of commencement of any such action is given to the Indemnifying Party
as above provided, the Indemnifying Party shall be entitled to participate in
and, to the extent it may wish, jointly with any other Indemnifying Party
similarly notified, to assume the defense of such action at its own expense,
with counsel chosen by it and reasonably consented to by such Indemnified
Party, which such consent shall not be unreasonably withheld. The Indemnified
Party shall have the right to employ separate counsel in any such action and
participate in the defense thereof, but the fees and expenses of such counsel
shall be paid by the Indemnified Party unless (i) the Indemnifying Party agrees
to pay the same, (ii) the Indemnifying Party fails to assume the defense of
such action, or (iii) the named parties to any such action (including, but not
limited to, any impleaded parties) provide a legal opinion stating that the
representation of such Indemnified Party and the Indemnifying Party by the same
counsel would be inappropriate under applicable standards of professional
conduct. In the case of clause (ii) above and (iii) above, the Indemnifying
Party shall not have the right to assume the defense of such action on behalf
of such Indemnified Party. No Indemnifying Party shall be liable for any
settlement entered into without its written consent, which consent shall not be
unreasonably withheld. No Indemnifying Party shall, without the written
consent of the Indemnified Party, effect the settlement or compromise of, or
consent to the entry of any judgment with respect to, any pending or threatened
action or claim in respect of which indemnification or contribution may be
sought hereunder (whether or not the Indemnified Party is an actual or
potential party to such action or claim) unless such settlement, compromise or
judgment (A) includes an unconditional release of the Indemnified Party from
all liability arising out of such action or claim and (B) does not include a
statement as to, or an admission of, fault, culpability or a failure to act by
or on behalf of any Indemnified Party. The rights afforded to any Indemnified
Party hereunder shall be in addition to any rights that such Indemnified Party
may have at common law, by separate agreement or otherwise.

          (d)     Contribution. If the indemnification provided for in this Section 8
from the Indemnifying Party is unavailable or insufficient to hold harmless an
Indemnified Party in respect of any Losses referred to herein, then the
Indemnifying Party, in lieu of indemnifying the Indemnified Party, shall
contribute to the amount paid or payable by the Indemnified Party as a result
of such Losses in such proportion as is appropriate to reflect the relative
fault of the Indemnifying Party and the Indemnified Party, as well as any other
relevant equitable considerations. The relative faults of the Indemnifying
Party and Indemnified Party shall be determined by reference to, among other
things, whether any action in question, including any untrue or alleged untrue
statement of a material fact or omission or alleged omission to state a
material fact, was made by, or relates to information supplied by, such
Indemnifying Party or Indemnified Party, and the Indemnifying Party’s and
Indemnified Party’s relative intent, knowledge, access to information and
opportunity to correct or prevent such action; provided, however, that the
liability of any Holder under this Section 8(d) shall be limited to the amount
of the gross proceeds received by such Holder in the offering giving rise to
such liability. The amount paid or payable by a party as a result of the
Losses or other liabilities referred to above shall be deemed to include,
subject to the limitations set forth in Sections 8(a), 8(b) and 8(c), any legal
or other fees,

15

 

charges or expenses reasonably incurred by such party in
connection with any investigation or proceeding.

     The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 8(d) were determined by pro rata
allocation or by any other method of allocation that does not take account of
the equitable considerations referred to in the immediately preceding
paragraph. No person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution pursuant to this Section 8(d).

     9.      Rule 144 and Rule 144A; Other Exemptions.

     With a view to making available to the Holders the benefits of Rule 144
and Rule 144A promulgated under the Securities Act and other rules and
regulations of the SEC that may at any time permit a Holder to sell securities
of the Company to the public without registration, the Company covenants that
it shall (i) at all times, from and after the date that is thirty (30) days
following the date on which the Company is current with respect to the filings
with the Commission required to be made by it pursuant to the Exchange Act,
file in a timely manner all reports and other documents required to be filed by
it under the Securities Act and the Exchange Act and the rules and regulations
adopted by the SEC thereunder and (ii) take such further action as each Holder
may reasonably request (including, but not limited to, providing any
information necessary to comply with Rule 144 and Rule 144A, if available with
respect to resales of the Registrable Securities under the Securities Act), all
to the extent required from time to time to enable such Holder to sell
Registrable Securities without registration under the Securities Act within the
limitation of the exemptions provided by (x) Rule 144 and Rule 144A (if
available with respect to resales of the Registrable Securities) under the
Securities Act, as such rules may be amended from time to time or (y) any other
rules or regulations now existing or hereafter adopted by the SEC.

     10.     Certain Limitations On Registration Rights.

     No Holder may participate in any Registration Statement hereunder unless
such Holder completes and executes all questionnaires, powers of attorney,
indemnities, underwriting agreements, and other documents reasonably required
under the terms of such underwriting arrangements and agrees to sell such
Holder’s Registrable Securities on the basis provided in any underwriting
agreement approved by the Holder or Holders entitled hereunder to approve such
arrangements; provided, however, that no such Holder shall be required to make
any representations or warranties to the Company or the underwriters in
connection with any such registration other than representations and warranties
as to (i) such Holder’s ownership of its Registrable Securities to be sold or
transferred, (ii) such Holder’s power and authority to effect such transfer and
(iii) such matters pertaining to compliance with securities laws as may be
reasonably requested.

     11.     Transfer of Registration Rights.

     The rights of a Holder hereunder may be transferred or assigned in
connection with a transfer of Registrable Securities to (i) any Affiliate of a
Holder, (ii) any subsidiary, parent, partner, retired partner, limited partner,
shareholder or member of a Holder or (iii) any family mem-

16

 

ber or trust for the
benefit of any Holder. Notwithstanding the foregoing, such rights may only be
transferred or assigned provided that all of the following additional
conditions are satisfied: (a) such transfer or assignment is effected in
accordance with applicable securities laws; (b) such transferee or assignee
agrees in writing to become subject to the terms of this Agreement; and (c) the
Company is given written notice by such Holder of such transfer or assignment,
stating the name and address of the transferee or assignee and identifying the
Registrable Securities with respect to which such rights are being transferred
or assigned.

     12.     Termination
  of Registration Rights. 

     The rights contained in Sections 2, 3, 4 and 11 hereof shall terminate at
the earlier of (a) five (5) years from the effective date of the Company’s
first Registration Statement for a public offering of securities of the Company
or (b) with respect to a Holder, in the opinion of the Company’s counsel, all
such Registrable Securities proposed to be sold by a Holder may be sold in a
three (3) month period without registration under the Securities Act pursuant
to Rule 144, and (such Registrable Securities represent less than one percent
(1%) of all outstanding shares of the Company’s capital stock.

     13.     Miscellaneous.
  

          (a)     No
  Inconsistent Agreements. The Company will not enter into any agreement offering
  registration rights on parity with or senior to the registration rights granted
  hereunder without the prior written consent of the Holders of a majority in
  interest of each type of Registrable Securities, which consent may be withheld
  in their sole discretion. 

          (b)     Remedies.
  In the event of a breach by the Company of any of its obligations under this
  Agreement, each holder of Registrable Securities, in addition to being entitled
  to exercise all rights granted by law, including recovery of damages, will be
  entitled to specific performance of its rights under this Agreement. The Company
  agrees that monetary damages would not be adequate compensation for any loss
  incurred by reason of a breach by them of the provisions of this Agreement and
  hereby agree to waive the defense in any action for specific performance that
  a remedy at law would be adequate. 

          (c)     Adjustments
  Affecting Registrable Securities. The Company shall not, directly or indirectly,
  take any action, or permit any change to occur, with respect to the Registrable
  Securities (i) that would adversely affect the ability of the holders of
  Registrable Securities to include such Registrable Securities in a registration
  undertaken pursuant to this Agreement or (ii) that would adversely affect
  the marketability of such Registrable Securities in any such registration. 

          (d)     Amendments
  and Waivers. Except as otherwise provided herein, the provisions of this
  Agreement may not be amended, modified or supplemented, and waivers or consents
  to departures from the provisions hereof may not be given unless the Company
  has obtained the written consent of holders of at least a majority in interest
  of Registrable Securities affected by such amendment, modification, supplement,
  waiver or departure. Notwithstanding the foregoing, the provisions of Section
  2 hereof cannot be amended or waived except with the 

17

 

written consent of the
holders of two-thirds (2/3) of (i) the principal amount of Notes outstanding
and (ii) the aggregate number of Warrant Shares then outstanding.

          (e)     Notices.
  All notices and other communications provided for or permitted hereunder shall
  be in writing and made by hand-delivery, or Express Mail: 

               (i)     If to a holder of Registrable Securities, at the most current address,
and with a copy to be sent to each additional address given by such holder to
the Company and the trustee and/or warrant agent, as applicable, under the
indenture and/or warrant agreement governing the Registrable Securities;

               (ii)     if to the Company, at:

	 	 	 	 	 
	 	 	
 
	 	QuadraMed Corporation
	 	 	 	 	12110 Sunset Hills Road
	 	 	 	 	Reston, Virginia 20190
	 	 	 	 	Attn: General Counsel
	 	 	 	 	 
	 	 	 	 	With a copy to:
	 	 	 	 	 
	 	 	 	 	Akin Gump Strauss Hauer & Feld LLP
	 	 	 	 	1333 New Hampshire Avenue, NW
	 	 	 	 	Washington, DC 20036
	 	 	 	 	Attn: Bruce S. Mendelsohn, Esq.

     All such notices and communications shall be deemed to have been duly
given when delivered by hand, if personally delivered, or two business days
after being deposited in the mail, postage prepaid, if mailed.

          (f)     Successors
  and Assigns. This Agreement shall inure to the benefit of and be binding
  upon the2! successors and assigns of each of the parties hereto, including,
  without limitation and without the need for an express assignment, subsequent
  holders of Registrable Securities. 

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

          (h)     Governing
  Law. This Agreement shall be governed by and construed in accordance with
  the laws of the State of Delaware without regard to principles of conflicts
  of law. 

          (i)     Severability.
  In the event that any one or more of the provisions contained herein, or the
  application thereof in any circumstances, is held invalid, illegal or unenforceable
  in any respect for any reason, the validity, legality and enforceability of
  any such provision in every other respect and of the remaining provisions contained
  herein shall not be in any way impaired thereby, it being intended that all
  of the rights and privileges of both the Company and the holders of Registrable
  Securities shall be enforceable to the fullest extent permitted by law. 

18

 

          (j)     Entire
  Agreement. This Agreement is intended by the parties as a final expression
  of their agreement and intended to be a complete and exclusive statement of
  the agreement and understanding of the parties hereto in respect of the subject
  matter contained herein and therein. There are no restrictions, promises, warranties
  or undertakings, other than those set forth or referred to herein and therein.
  This Agreement (including the exhibits thereto) supersedes all prior agreements
  and understandings between the parties with respect to such subject matter.
  

          (k)     Securities
  Held by the Company or Its Affiliates. Whenever the consent or approval
  of holders of a specified percentage of Registrable Securities is required hereunder,
  Registrable Securities held by the Company or its affiliates (other than the
  holders of Registrable Securities if such holders are deemed to be such affiliates
  solely by reason of their holdings of such Registrable Securities) shall not
  be counted in determining whether such consent or approval was given by the
  holders of such required percentage. 

          (l)     Attorneys’
  Fees. In any action or proceeding brought to enforce any provision of this
  Agreement, or where any provision hereof is validly asserted as a defense, the
  successful party shall be entitled to recover reasonable attorneys’ fees
  in addition to its costs and expenses and any other available remedy. 

          (m)     Third
  Party Beneficiaries. This Agreement is entered into for the express benefit
  of the holders of Registrable Securities. Accordingly, this Agreement may be
  enforced by and against holders of Registrable Securities in the same manner
  and to the same extent as if such holders had executed this Agreement. 

          (n)     Counterparts.
  This Agreement may be executed in any number of counterparts, each of which
  shall be original, and all of which together shall constitute one instrument.
  

[Signature Page Follows]

19

 

REGISTRATION RIGHTS AGREEMENT SIGNATURE PAGE

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

	 	 	 	 	 
	 	 	QUADRAMED CORPORATION
	 	 	 	 	 
	 	 	
By:
	 	 
	 	 	
	 
	 	 	
Name:
	 	 
	 	 	
	 
	 	 	
Title:
	 	 
	 	 	
	 
	 	 	 	 	 
	 	 	MACKAY SHIELDS
	 	 	 	 	 
	 	 	
By:
	 	 
	 	 	
	 
	 	 	
Name:
	 	 
	 	 	
	 
	 	 	
Title:
	 	 
	 	 	
	 
	 	 	 	 	 
	 	 	ZAZOVE
ASSOCIATES LLC
	 	 	 	 	 
	 	 	
By:
	 	 
	 	 	
	 
	 	 	
Name:
	 	 
	 	 	
	 
	 	 	
Title:
	 	 
	 	 	
	 
	 	 	 	 	 
	 	 	ALLIANZ OF AMERICA, INC.
	 	 	 	 	 
	 	 	
By:
	 	 
	 	 	
	 
	 	 	
Name:
	 	 
	 	 	
	 
	 	 	
Title:
	 	 
	 	 	
	 

20

 

	 	 	 	 
	 	 	MELLON HBV ALTERNATIVE STRATEGIES
	 	 	 	 	 
	 	 	
By:
	 	 
	 	 	
	 
	 	 	
Name:
	 	 
	 	 	
	 
	 	 	
Title:
	 	 
	 	 	
	 
	 	 	 	 	 
	 	 	TRIAGE CAPITAL MANAGEMENT LP
	 	 	 	 	 
	 	 	
By:
	 	 
	 	 	
	 
	 	 	
Name:
	 	 
	 	 	
	 
	 	 	
Title:
	 	 
	 	 	
	 
	 	 	 	 	 
	 	 	LONESTAR PARTNERS
	 	 	 	 	 
	 	 	
By:
	 	 
	 	 	
	 
	 	 	
Name:
	 	 
	 	 	
	 
	 	 	
Title:
	 	 
	 	 	
	 
	 	 	 	 	 
	 	 	LAMPE CONWAY & CO. LLC
	 	 	 	 	 
	 	 	
By:
	 	 
	 	 	
	 
	 	 	
Name:
	 	 
	 	 	
	 
	 	 	
Title:
	 	 
	 	 	
	 
	 	 	 	 	 
	 	 	PHILADELPHIA BROKERAGE CORPORATION
	 	 	 	 	 
	 	 	
By:
	 	 
	 	 	
	 
	 	 	
Name:
	 	 
	 	 	
	 
	 	 	
Title:
	 	 
	 	 	
	 

21

 

	 	 	 
	 	 	
CENTURY NATIONAL
 INSURANCE
COMPANY
	 	 	 
	 	 	
      By: Zazove Associates, LLC
	 	 	 
	 	 	
By: 

	 	 	
Name:

Title:
	 	 	 
	 	 	
NATIONAL UNION FIRE
 INSURANCE

COMPANY OF PITTSBURG, PA
	 	 	 
	 	 	
      By: Zazove Associates, LLC
	 	 	 
	 	 	
By: 

	 	 	
Name:
	 	 	
Title:
	 	 	 
	 	 	
QWEST OCCUPATIONAL
 HEALTH
TRUST
	 	 	 
	 	 	
      By: Zazove Associates, LLC
	 	 	 
	 	 	
By: 

	 	 	
Name:

Title:
	 	 	 
	 	 	
QWEST PENSION TRUST
	 	 	 
	 	 	
      By: Zazove Associates, LLC
	 	 	 
	 	 	
By: 

	 	 	
Name:

Title:

22

 

	 	 	 
	 	 	
SAN DIEGO COUNTY

 EMPLOYEES

RETIREMENT ASSOCIATION
	 	 	 
	 	 	    
By: Zazove Associates, LLC
	 	 	 
	 	 	
By: 

	 	 	
Name:

Title:
	 	 	 
	 	 	
GLENBROOK CONVERTIBLE PARTNERS, L.P.

    By: Zazove Associates, LLC
	 	 	 
	 	 	
By: 

	 	 	
Name:

Title:
	 	 	 
	 	 	
STARVEST CONVERTIBLE SECURITIES FUND,

INC.
	 	 	 
	 	 	
    By: Zazove Associates, LLC
	 	 	 
	 	 	
By: 

	 	 	
Name: 

Title:
	 	 	 
	 	 	
ZAZOVE AGGRESSIVE GROWTH FUND, L.P.
	 	 	 
	 	 	
    By: Zazove Associates, LLC
	 	 	 
	 	 	
By: 

	 	 	
Name:

Title:

23

 

	 	 	 	 
	 	 	 	 
	 	 	
ZAZOVE HIGH YIELD CONVERTIBLE

SECURITIES FUND, L.P.	 
	 	 	 	 
	 	 	
   By: Zazove Associates, LLC	 
	 	 	 	 
	 	 	
By:

	 
	 	 	
Name:

Title:	 
	 	 	 	 
	 	 	
GENE T. PRETTI	 
	 	 	 	 
	 	 	
   By: Zazove Associates, LLC	 
	 	 	 	 
	 	 	
By: 

	 
	 	 	
Name:

Title:	 
	 	 	 	 
	 	 	
TRIAGE OFFSHORE FUND LTD	 
	 	 	 	 
	 	 	
By: 

	 
	 	 	
Name:

Title:	 
	 	 	 	 
	 	 	
OTA, LLC	 
	 	 	 	 
	 	 	
By: 

	 
	 	 	
Name:

Title:	 
	 	 	 	 

24

 

	 	 	 	 
	 	 	
HBV MASTER MULTI-STRATEGY FUND LP	 
	 	 	 	 
	 	 	
By: 

	 
	 	 	
Name:

Title:	 
	 	 	 	 
	 	 	
MELLON HBV SPECIAL SITUATIONS

FUND LP	 
	 	 	 	 
	 	 	
   By: Mellon HBV II LLC	 
	 	 	 	 
	 	 	
By: 

	 
	 	 	
Name:

Title:	 

25

 

	 	 	 
	ARKANSAS PUBLIC	 	
MACKAY SHIELDS MASTER
	 	 	
LONG/SHORT FUND BEAR STEARNS
	By:       *	 	
 
	
	 	
By:       *
	 	 	

	 	 	 
	AMERICAN KENNEL CLUB CORE BOND	 	
 
	 	 	
MACKAY SHIELDS TRUST HIGH YIELD
	 	 	
CORPORATE BOND
	By:       *	 	
 
	
	 	
By:       *
	 	 	

	AVAYA INC MASTER PENSION TRUST	 	 
	 	 	
PARK EMPLOYEE’S ANNUITY AND
	By:       *	 	
BENEFIT FUND CORE PLUS HIGH YIELD
	
	 	
 
	 	 	
 
	BRIGGS & STRATTON RETIREMENT	 	
By:       *
	PLAN-HIGH YIELD	 	

	 	 	 
	By:       *	 	
FEDERAL INSURANCE COMPANY
	
	 	
(CHUBB) HIGH YIELD
	 	 	 
	MACKAY SHIELDS LONG/SHORT FUND	 	
By:       *
	 	 	

	 	 	 
	By:       *	 	 
	
	 	 
	 	 	
THE PENSION PLAN OF
	 	 	
CONSTELLATION ENERGY GROUP HIGH
	401 SAVINGS PLAN OF THE CHASE	 	
YIELD
	MANHATTAN BANK AND CERTAIN	 	 
	AFFILIATED COS	 	
By:       *
	 	 	

	By:       *	 	 
	
	 	 
	 	 	
CARNEGIE MELLON UNIVERSITY HIGH
	 	 	
 YIELD
	CITY OF MONTREAL HIGH YIELD	 	
 
	 	 	
By:       *
	By:       *	 	

	
	 	 

      

			
	 	

*MACKAY SHIELDS

	 	
By:

	 
	 	 	

	 	
Name:  

Title:

	 

 

	 	 	 	 	 
	ECLIPSE CORE BOND PLUS FUND HIGH	 	
INGRAM INDUSTRIES EMPLOYEE	 
	YIELD	 	 	 
	 	 	 	
By:	*
	 	 	 	 	

	By:	*	 	
POLICEMEN’S AND FIREFIGHTERS’	 
	 	
	 	
RETIREMENT FUND OF LEXINGTON-
	 	 	 	
FAYETTE URBAN COUNTY	 
	FAIRFAX COUNTY EMPLOYEES	 	
GOVERNMENT
	RETIREMENT SYSTEM HIGH YIELD	 	
 	 
	FONDATION LUCIE ET ANDRE	 	
By:	*
	CHAGNON HIGH YIELD	 	 	

	 	 	 	 	 
	By:	*	 	 	 
	 	
	 	
THE 1199 HEALTH CARE EMPLOYEES
	 	 	 	
PENSION FUND HIGH YIELD
	 	 	 	 	 
	EMPLOYEES RETIREMENT SYSTEM OF	 	
By:	*
	THE CITY OF FORT WORTH HIGH YIELD	 	 	

	 	 	 	 	 
	By:	*	 	
NEW YORK DISTRICT COUNCIL OF
	 	
	 	
CARPENTERS PENSION FUND
	 	 	 	 	 
	MLG-NYL
US HIGH YIELD	 	
By:	*
	 	 	 	 	

	By:	*	 	 	 
	 	
	 	
 	 
	 	 	 	
OHIO POLICE & FIRE PENSION FUND
	 	 	 	
HIGH YIELD
	HONG KONG HOSPITAL AUTHORITY	 	 	 
	HIGH YIELD	 	 	 
	 	 	 	 	 
	By:	*	 	
PENNSYLVANIA PUBLIC SCHOOLS
	 	
	 	
EMPLOYEES’ RETIREMENT SYSTEM
	 	 	 	 
	 	 	 	
By:	*
	 	 	 	 	

	ILLINOIS MUNICIPAL RETIREMENT	 	 	 
	FUND HIGH YIELD	 	 	 
	 	 	 	 	 
	By:	*	 	
STICHTING PHILIPS PENSIOENFONDS

	 	
	 	
HIGH YIELD
	 	 	 	 	 
	 	 	 	
By:	*
	 	 	 	 	

	 	 	 	 	 
	 	 	
*MACKAY SHIELDS
	 	 	 	 	 
	 	 	
By:
	
	 
	 	 	
Name:  	 	 
	 	 	
Title:	 	 

 

 

	 	 	 
	STICHTING PHILIPS PENSIOENFONDS	 	
NATIONS MASTER INVESTMENT HIGH
	 	 	
YIELD
	 	 	 
	By:     *	 	
By:     *
	
	 	

	 	 	
NATIONS ANNUITY FUND HIGH YIELD
	RHODE ISLAND EMPLOYEES	 	 
	RETIREMENT SYSTEM	 	
By:     *
	 	 	

	 	 	 
	By:     *

	 	
LOS ANGELES FIRE AND POLICE HIGH

YIELD
	 	 	 
	NEW YORK LIFE CORE BOND PLUS	 	
By:     *
	FUND SEPARATE ACCOUNT # 38 HIGH	 	

	YIELD	 	 
		 	 
	By:     *

	 	
VULCAN MATERIALS COMPANY HIGH 

YIELD
	 	 	 
	POLICE OFFICERS PENSION SYSTEM OF	 	
By:     *
	THE CITY OF HOUSTON 	 	

		 	 
	By:     *

	 	
NY LIFE SEPARATE ACCOUNT

GOA/BB/HIGH YIELD
	 	 	 
	THE CITY OF MEMPHIS RETIREMENT	 	
By:     *
	SYSTEM HIGH YIELD	 	

	 	 	 
	By:     *	 	
THE MAINSTAY FUNDS, INC; ON
	
	 	
BEHALF OF ITS HIGH YIELD
	 	 	
CORPORATE BOND FUND SERIES
	NISOURCE CORP. SERVICES COMPANY	 	 
	HIGH YIELD	 	
By:     *
	 	 	
 
	By:     *	 	 
	
	 	 

	 	 	 
	 
	 	 	
*MACKAY SHIELDS
	 	 	 
	 	 	
By:
 

	 	 	
Name:
	 	 	
Title:

 

	 	 	 
	THE MAINSTAY FUNDS, INC; ON	 	
RIYAD BANK HYB LIQ RIY13
	BEHALF OF ITS STRATEGIC VALUE	 	 
	FUND	 	
By:                                     *
	 	 	

	 	 	
 
	
By:                                     *
	 	
RIYAD BANK HYB LIQ RIY04 
	
	 	
 
	 	 	
By:                                     * 
	MAINSTAY VP SERIES FUND, INC., ON	 	

	BEHALF OF ITS HIGH YIELD	 	 
	CORPORATE BOND PORTFOLIO	 	
 
	RIYAD BANK HIGH YIELD	 	
 
	 	 	 
	By:                                     *	 	 
	
	 	 
	 	 	 
	SAN ANTONIO FIREMAN & POLICE

PENSION FUND HIGH YIELD
	 	 	 
	By:                                     *	 	 
	
	 	 
	 	 	 
	TENNESSEE VALLEY AUTHORITY

RETIREMENT SYSTEM HIGH YIELD
	 	 	 
	By:                                     *	 	 
	
	 	 
	 	 	 
	SCOTTISH WIDOWS FUND & LIFE

ASSURANCE SOCIETY HIGH YIELD
	 	 	 
	By:                                     *	 	 
	
	 	 
	 	 	 
	WRITERS’ GUILD INDUSTRY HEALTH

FUND
	 	 	 
	By:                                     *	 	 
	
	 	 
	 	 	 
	 

	 	 	 	 	 
	 	 	
*MACKAY SHIELDS
	 	 	 	 	 
	 	 	
By:

	 	 	
Name:  	 	 
	 	 	
Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00051-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00051-of-00352.parquet"}]]