Document:

Exhibit 10.4

 

AMENDMENT NUMBER 13 TO LOAN DOCUMENTS

 

This
AMENDMENT NUMBER 13 TO LOAN DOCUMENTS (this “Thirteenth Amendment”)is
entered into as of June 17, 2010, effective as of June 11, 2010, by
and among GVEC RESOURCE IV INC. (the “Agent”), as Agent and as a Lender,
PRIVATE EQUITY MANAGEMENT GROUP LLC, a Delaware limited liability company (“PEMG”‘),
EMRISE CORPORATION, a Delaware corporation (“Parent”), and Parent’s
Subsidiaries that are signatories hereto (collectively, with Parent, the “Borrowers”
and each individually, a “Borrower”), with reference to the following
facts:

 

A.                                   Borrowers, Agent and the Lenders named therein are parties to that
certain Credit Agreement dated as of November 30, 2007, as amended by that
certain Amendment Number 1 to Loan Documents, dated as of August 20,
2008, that certain Amendment Number 2 to Loan Documents, dated as of February 12,
2009, that certain Forbearance Agreement and Amendment Number 3to Loan
Documents, dated as of March 20, 2009 (as amended by that certain Amendment
to Forbearance Agreement and Amendment Number 3 to Loan Documents, dated as of April 9,
2009), that certain Amendment Number 4 to Loan Documents, dated as of
April 14, 2009, that certain Amendment Number 5 to Loan Documents, dated
as of August 14, 2009, that certain Amendment Number 6 to Loan Documents,
dated as of November 3, 2009, that certain Amendment Number 7 to Loan
Documents, dated as of November 13, 2009, that certain Amendment Number 8
to Loan Documents, dated as of December 31, 2009, that certain Amendment
Number 9 to Loan Documents, dated as of April 13, 2010, that certain
Amendment Number 10 to Loan Documents, dated as of May 3, 2010, that
certain Amendment Number 11 to Loan Documents, dated as of May 17, 2010
and that certain Amendment Number 12 to Loan Documents, dated as of June 1,
2010 (as further amended, restated, supplemented or modified from time to time,
the “Credit Agreement”).

 

NOW,
THEREFORE, for good and valuable consideration, the parties agree as follows:

 

1.                                       Defined Terms.  Capitalized terms not otherwise defined
herein shall have the same meanings as set forth in the Credit Agreement.

 

2.                                       Representations and Warranties.

 

(a)                                  Each Borrower hereby represents and warrants that after giving effect to
this Thirteenth Amendment, no Event of Default or failure of condition has
occurred or exists, or would exist with notice or lapse of time or both under
the Credit Agreement.

 

(b)                                 All representations and warranties of Borrowers in this Thirteenth
Amendment and the Credit Agreement are true and correct as of the date hereof,
and shall survive the execution of this Thirteenth Amendment.

 

3.                                       Amendments.

 

(a)                                  “Key Milestones” numbered 9 and 10, as set forth in Annex Y to the Credit
Agreement, as Annex Y has been amended from time to time, are hereby replaced
in their entireties with the Key Milestones set forth in Annex Y-4 attached
hereto.

 

 

(b)                                 The defined term “Maturity Date” in the Credit Agreement shall mean and
refer to July 16, 2010.

 

4.                                       Default.  In addition to all other Events of Default
under the Credit Agreement, Borrowers’ failure to pay any amount when due under
this Thirteenth Amendment or to perform any covenant or other agreement
contained in this Thirteenth Amendment, or any other document entered into
pursuant thereto, shall constitute Events of Default under this Thirteenth
Amendment and the Credit Agreement.

 

5.                                       Conditions Precedent.  The effectiveness of this Thirteenth
Amendment is subject to Agent’s receipt of all of the following:

 

(a)                                  this Thirteenth Amendment and such other agreements and instruments
reasonably requested by Agent pursuant hereto (including such documents as are
necessary to create and perfect Agent’s interest in the Collateral), each duly
executed by each Borrower;

 

(b)                                 payment by Borrowers of all legal fees and expenses incurred through the
date of this Thirteenth Amendment (which shall be remitted via wire transfer
according to the instructions set forth on Exhibit A hereto); and

 

(c)                                  such other documents and completion of such other matters as Agent may
reasonably deem necessary or appropriate.

 

6.                                       Release.

 

(a)                                  Each Borrower acknowledges that neither Agent, any Lender nor PEMG (the “Released
Parties”) would enter into this Thirteenth Amendment without Borrowers’
assurance hereunder.  Except for the obligations
arising hereafter under this Thirteenth Amendment, each Borrower hereby
absolutely discharges and releases the Released Parties, any person or entity
that has obtained any interest from any of them under the Credit Agreement or
otherwise and each of the Released Parties’ and such entities’ former and
present partners, stockholders, officers, directors, employees, successors,
assignees, agents and attorneys from any known or unknown claims which any
Borrower now has against any of them of any nature, including any claims that
any Borrower, its successors, counsel and advisors may in the future discover
they would have now had if they had known facts not now known to them, whether
founded in contract, in tort or pursuant to any other theory of liability,
including but not limited to any claims arising out of or related to the Credit
Agreement or the transactions contemplated thereby.

 

(b)                                 Each Borrower waives the provisions of California Civil Code Section 1542,
which states:

 

A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF
KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

 

2

 

(c)                                  The provisions, waivers and releases set forth in this section are
binding upon each Borrower and each Borrower’s shareholders, agents, employees,
assigns and successors in interest.  The
provisions, waivers and releases of this section shall inure to the benefit of
the Released Parties and their respective agents, employees, officers,
directors, assigns and successors in interest.

 

(d)                                 Each Borrower warrants and represents that such Borrower is the sole and
lawful owner of all right, title and interest in and to all of the claims
released hereby and no Borrower has heretofore assigned or transferred or
purported to assign or transfer to any person any such claim or any portion
thereof.  Each Borrower shall indemnify
and hold harmless Agent, each Lender and PEMG from and against any claim,
demand, damage, debt, liability (including payment of attorneys’ fees and costs
actually incurred whether or not litigation is commenced) based on or arising
out of any such assignment or transfer.

 

(e)                                  The provisions of this section shall survive payment in full of the
Obligations, full performance of all the terms of this Thirteenth Amendment and
the Credit Agreement, and/or Agent’s, any Lender’s or PEMG’s actions to
exercise any remedy available under the Credit Agreement or otherwise.

 

7.                                       Consultation of Counsel.  Each Borrower acknowledges that such Borrower
has had the opportunity to be represented by legal counsel of its own choice
throughout all of the negotiations that preceded the execution of this Thirteenth
Amendment.  Each Borrower has executed
this Thirteenth Amendment after reviewing and understanding each provision of
this Thirteenth Amendment and without reliance upon any promise or
representation of any person or persons acting for or on behalf of Agent.  Each Borrower further acknowledges that such
Borrower and its counsel have had adequate opportunity to make whatever
investigation or inquiry they may deem necessary or desirable in connection
with the subject matter of this Thirteenth Amendment prior to the execution
hereof and the delivery and acceptance of the consideration described herein.

 

8.                                       Miscellaneous.

 

(a)                                  Successors and Assigns.  This Thirteenth Amendment shall be binding
upon and shall inure to the benefit of Borrower and Agent and their respective
successors and assigns; provided, however, that the foregoing shall not
authorize any assignment by Borrower of its rights or duties hereunder.

 

(b)                                 Integration.  This Thirteenth Amendment and any documents
executed in connection herewith or pursuant hereto contain the entire
Thirteenth Amendment between the parties with respect to the subject matter
hereof and supersede all prior agreements, understandings, offers and
negotiations, oral or written, with respect thereto and no extrinsic evidence
whatsoever may be introduced in any judicial or arbitration proceeding, if any,
involving this Thirteenth Amendment; except that any financing statements or
other agreements or instruments filed by Agent with respect to Borrower shall
remain in full force and effect.

 

(c)                                  Course of Dealing; Waivers.  No course of dealing on the part of Agent or
its officers, nor any failure or delay in the exercise of any right by Agent,
shall operate 

 

3

 

as a waiver thereof, and any single or
partial exercise of any such right shall not preclude any later exercise of any
such right.  Agent’s failure at any time
to require strict performance by Borrower of any provision shall not affect any
right of Agent thereafter to demand strict compliance and performance.  Any suspension or waiver of a right must be
in writing signed by an officer of Agent

 

(d)                                 Time is of the Essence.  Time is of the essence as to each and every
term and provision of this Thirteenth Amendment and the other Credit Agreement.

 

(e)                                  Legal Effect.  The Credit Agreement remains in full force
and effect.  If any provision of this
Thirteenth Amendment conflicts with applicable law, such provision shall be
deemed severed from this Thirteenth Amendment, and the balance of this
Thirteenth Amendment shall remain in full force and effect

 

(f)                                    Choice of Law and Venue; Jury Trial Waiver; Judicial Reference; Service
of Process.  Section 12 of the Credit Agreement
hereby is incorporated herein by this reference as though fully set forth.

 

(g)                                 Upon the effectiveness of this Thirteenth Amendment, each reference in
the Credit Agreement to “this Thirteenth Amendment,” “hereunder,”
“herein,” “hereof” or words of like import referring to the
Credit Agreement shall mean and refer to the Credit Agreement as amended by
this Thirteenth Amendment.

 

(h)                                 Upon the effectiveness of this Thirteenth Amendment, each reference in
the Loan Documents to the “Credit Agreement,” “thereunder,” “therein,”
“thereof” or words of like import referring to the Credit Agreement
shall mean and refer to the Credit Agreement as amended by this Thirteenth
Amendment.

 

(i)                                     Assignment and Indemnity.  Borrower consents to Agent’s assignment, in
accordance with Section 13 of the Credit Agreement, of all or any part of
Agent’s rights under this Thirteenth Amendment and the Credit Agreement

 

9.                                       Entire Amendment:  Effect of Thirteenth Amendment.  This Thirteenth Amendment, and the terms and
provisions hereof, constitutes the entire Thirteenth Amendment among the parties
pertaining to the subject matter hereof and supersedes any and all prior or
contemporaneous amendments relating to the subject matter hereof.  Except as expressly set forth in this
Thirteenth Amendment, the Credit Agreement and other Loan Documents shall
remain unchanged and in full force and effect. 
To the extent any terms or provisions of this Thirteenth Amendment
conflict with those of the Credit Agreement or other Loan Documents, the terms
and provisions of this Thirteenth Amendment shall control.  This Thirteenth Amendment is a Loan Document.

 

10.                                 Counterparts: 
Electronic Transmission.  This Thirteenth Amendment may be executed in
any number of counterparts, all of which taken together shall constitute one
and the same instrument and any of the parties hereto may execute this
Thirteenth Amendment by signing any such counterpart.  Delivery of an executed counterpart of this
Thirteenth Amendment by electronic mail shall be equally as effective as
delivery of an original executed counterpart of this Thirteenth Amendment.  Any party delivering an executed counterpart
of this 

 

4

 

Thirteenth Amendment by electronic mail also
shall deliver an original executed counterpart of this Thirteenth Amendment,
but the failure to deliver an original executed counterpart shall not affect
the validity, enforceability, and binding effect of this Thirteenth Amendment

 

[Balance of Page Intentionally Left Blank]

 

5

 

IN
WITNESS WHEREOF, the parties have caused this AMENDMENT NUMBER 13 TO LOAN
DOCUMENTS to be executed and delivered on the date first written above.

 

	
  EMRISE
  CORPORATION

  	
   

  	
  EMRISE
  ELECTRONICS

  
	
   

  	
   

  	
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  Carmine Oliva

  	
   

  	
  By:
  

  	
  /s/
  Carmine Oliva

  
	
  Name:
  

  	
  Carmine
  Oliva

  	
   

  	
  Name:
  

  	
  Carmine
  Oliva

  
	
  Title:
  

  	
  Chief
  Executive Officer

  	
   

  	
  Title:
  

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CXR
  LARUS CORPORATION

  	
   

  	
  ADVANCED
  CONTROL

  
	
   

  	
   

  	
  COMPONENTS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  Carmine Oliva

  	
   

  	
  By:
  

  	
  /s/
  Carmine Oliva

  
	
  Name:
  

  	
  Carmine
  Oliva

  	
   

  	
  Name:
  

  	
  Carmine
  Oliva

  
	
  Title:
  

  	
  President

  	
   

  	
  Title:
  

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CUSTOM
  COMPONENTS, INC.

  	
   

  	
  GVEC
  RESOURCE IV INC.,

  
	
   

  	
   

  	
  as
  Agent and a Lender

  
	
   

  	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  Carmine Oliva

  	
   

  	
  By:
  

  	
  PRIVATE
  EQUITY MANAGEMENT

  
	
  Name:
  

  	
  Carmine
  Oliva

  	
   

  	
   

  	
  GROUP
  LLC, its Court-Appointed Receiver

  
	
  Title:
  

  	
  President

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:
  

  	
  /s/
  Jim LeSieur

  
	
   

  	
   

  	
   

  	
  Name:
  

  	
  Jim
  LeSieur

  
	
   

  	
   

  	
   

  	
  Title:
  

  	
  Chief
  Operating Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  PRIVATE
  EQUITY MANAGEMENT

  	
   

  	
   

  
	
  GROUP
  LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  Jim LeSieur

  	
   

  	
   

  
	
  Name:
  

  	
  Jim
  LeSieur

  	
   

  	
   

  
	
  Title:
  

  	
  Chief
  Operating Officer

  	
   

  	
   

  

 

[Signature Page to Amendment Number 13 to Loan
Documents]

 

6

 

ANNEX Y-4

(Amended “Key Milestones” re Sale of ACC)

 

	
  Key

  Milestone

  #

  	
   

  	
  Date

  	
   

  	
  PEM Deliverable

  	
   

  	
  Description

  
	
  9

  	
   

  	
  6/18

  	
   

  	
  Preliminary
  proxy

  	
   

  	
  ·                  File preliminary proxy
  with SEC for shareholder approval

  
	
  10

  	
   

  	
  7/16

  	
   

  	
  Closing
  documentation

  	
   

  	
  ·                  Complete vote and close
  transaction

  

 

7EXHIBIT 4.1

 

INLAND REAL ESTATE CORPORATION

 

5.0% CONVERTIBLE SENIOR NOTES DUE 2029

 

 

INDENTURE

 

 

DATED AS OF AUGUST 10, 2010

 

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

AS TRUSTEE

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1 DEFINITIONS AND
  INCORPORATION BY REFERENCE

  	
  1

  
	
   

  	
   

  	
   

  
	
  Section 1.01.

  	
  Definitions

  	
  1

  
	
   

  	
   

  	
   

  
	
  Section 1.02.

  	
  Other Definitions

  	
  9

  
	
   

  	
   

  	
   

  
	
  Section 1.03.

  	
  Trust Indenture Act Provisions

  	
  10

  
	
   

  	
   

  	
   

  
	
  Section 1.04.

  	
  Rules of Construction

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2 THE SECURITIES

  	
  11

  
	
   

  	
   

  	
   

  
	
  Section 2.01.

  	
  Form and Dating

  	
  11

  
	
   

  	
   

  	
   

  
	
  Section 2.02.

  	
  Execution and Authentication

  	
  13

  
	
   

  	
   

  	
   

  
	
  Section 2.03.

  	
  Registrar, Paying Agent and Conversion Agent

  	
  13

  
	
   

  	
   

  	
   

  
	
  Section 2.04.

  	
  Paying Agent to Hold Money in Trust

  	
  14

  
	
   

  	
   

  	
   

  
	
  Section 2.05.

  	
  Lists of Holders of Securities

  	
  14

  
	
   

  	
   

  	
   

  
	
  Section 2.06.

  	
  Transfer and Exchange

  	
  14

  
	
   

  	
   

  	
   

  
	
  Section 2.07.

  	
  Replacement Securities

  	
  15

  
	
   

  	
   

  	
   

  
	
  Section 2.08.

  	
  Outstanding Securities

  	
  16

  
	
   

  	
   

  	
   

  
	
  Section 2.09.

  	
  Treasury Securities

  	
  17

  
	
   

  	
   

  	
   

  
	
  Section 2.10.

  	
  Temporary Securities

  	
  17

  
	
   

  	
   

  	
   

  
	
  Section 2.11.

  	
  Cancellation

  	
  17

  
	
   

  	
   

  	
   

  
	
  Section 2.12.

  	
  Legend; Additional Transfer and Exchange Requirements

  	
  17

  
	
   

  	
   

  	
   

  
	
  Section 2.13.

  	
  CUSIP Numbers

  	
  20

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3 REPURCHASE

  	
  20

  
	
   

  	
   

  	
   

  
	
  Section 3.01.

  	
  Repurchase at Option of Holders upon a Change in Control

  	
  20

  
	
   

  	
   

  	
   

  
	
  Section 3.02.

  	
  Repurchase at Option of Holders on Certain Dates

  	
  23

  
	
   

  	
   

  	
   

  
	
  Section 3.03.

  	
  Repayment to the Company

  	
  25

  
	
   

  	
   

  	
   

  
	
  Section 3.04.

  	
  Securities Purchased in Part

  	
  25

  
	
   

  	
   

  	
   

  
	
  Section 3.05.

  	
  Compliance with Securities Laws upon Purchase of Securities

  	
  25

  
	
   

  	
   

  	
   

  
	
  Section 3.06.

  	
  Purchase of Securities in Open Market

  	
  26

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4 CONVERSION

  	
  26

  
	
   

  	
   

  	
   

  
	
  Section 4.01.

  	
  Conversion Privilege and Conversion Rate

  	
  26

  
	
   

  	
   

  	
   

  
	
  Section 4.02.

  	
  Conversion Procedure

  	
  30

  
	
   

  	
   

  	
   

  
	
  Section 4.03.

  	
  Fractional Shares

  	
  31

  

 

i

 

	
  Section 4.04.

  	
  Taxes on Conversion

  	
  31

  
	
   

  	
   

  	
   

  
	
  Section 4.05.

  	
  Company to Provide Stock

  	
  31

  
	
   

  	
   

  	
   

  
	
  Section 4.06.

  	
  Adjustment of Conversion Rate

  	
  32

  
	
   

  	
   

  	
   

  
	
  Section 4.07.

  	
  No Adjustment

  	
  38

  
	
   

  	
   

  	
   

  
	
  Section 4.08.

  	
  Notice of Adjustment

  	
  38

  
	
   

  	
   

  	
   

  
	
  Section 4.09.

  	
  Notice of Certain Transactions

  	
  38

  
	
   

  	
   

  	
   

  
	
  Section 4.10.

  	
  Effect of Consolidation, Merger or Binding Share Exchange

  	
  38

  
	
   

  	
   

  	
   

  
	
  Section 4.11.

  	
  Withholding

  	
  39

  
	
   

  	
   

  	
   

  
	
  Section 4.12.

  	
  Trustee’s Disclaimer

  	
  39

  
	
   

  	
   

  	
   

  
	
  Section 4.13.

  	
  Conversion Settlement

  	
  39

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5 COVENANTS

  	
  40

  
	
   

  	
   

  	
   

  
	
  Section 5.01.

  	
  Payment of Securities

  	
  40

  
	
   

  	
   

  	
   

  
	
  Section 5.02.

  	
  SEC and Other Reports

  	
  41

  
	
   

  	
   

  	
   

  
	
  Section 5.03.

  	
  Compliance Certificates

  	
  41

  
	
   

  	
   

  	
   

  
	
  Section 5.04.

  	
  Further Instruments and Acts

  	
  41

  
	
   

  	
   

  	
   

  
	
  Section 5.05.

  	
  Maintenance of Corporate Existence

  	
  41

  
	
   

  	
   

  	
   

  
	
  Section 5.06.

  	
  Rule 144A Information Requirement

  	
  41

  
	
   

  	
   

  	
   

  
	
  Section 5.07.

  	
  Stay, Extension and Usury Laws

  	
  42

  
	
   

  	
   

  	
   

  
	
  Section 5.08.

  	
  Removed

  	
  42

  
	
   

  	
   

  	
   

  
	
  Section 5.09.

  	
  Maintenance of Office or Agency

  	
  42

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6 CONSOLIDATION; MERGER; CONVEYANCE; TRANSFER
  OR LEASE

  	
  42

  
	
   

  	
   

  	
   

  
	
  Section 6.01.

  	
  Company May Consolidate, Etc., Only on Certain
  Terms

  	
  42

  
	
   

  	
   

  	
   

  
	
  Section 6.02.

  	
  Successor Substituted

  	
  43

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7 DEFAULT AND REMEDIES

  	
  43

  
	
   

  	
   

  	
   

  
	
  Section 7.01.

  	
  Events of Default

  	
  43

  
	
   

  	
   

  	
   

  
	
  Section 7.02.

  	
  Acceleration

  	
  45

  
	
   

  	
   

  	
   

  
	
  Section 7.03.

  	
  Other Remedies

  	
  46

  
	
   

  	
   

  	
   

  
	
  Section 7.04.

  	
  Waiver of Defaults and Events of Default

  	
  46

  
	
   

  	
   

  	
   

  
	
  Section 7.05.

  	
  Control by Majority

  	
  46

  
	
   

  	
   

  	
   

  
	
  Section 7.06.

  	
  Limitations on Suits

  	
  47

  
	
   

  	
   

  	
   

  
	
  Section 7.07.

  	
  Rights of Holders to Receive Payment and to Convert

  	
  47

  
	
   

  	
   

  	
   

  
	
  Section 7.08.

  	
  Collection Suit by Trustee

  	
  47

  
	
   

  	
   

  	
   

  
	
  Section 7.09.

  	
  Trustee May File Proofs of Claim

  	
  48

  

 

ii

 

	
  Section 7.10.

  	
  Priorities

  	
  48

  
	
   

  	
   

  	
   

  
	
  Section 7.11.

  	
  Undertaking for Costs

  	
  49

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8 TRUSTEE

  	
  49

  
	
   

  	
   

  	
   

  
	
  Section 8.01.

  	
  Obligations of Trustee

  	
  49

  
	
   

  	
   

  	
   

  
	
  Section 8.02.

  	
  Rights of Trustee

  	
  50

  
	
   

  	
   

  	
   

  
	
  Section 8.03.

  	
  Individual Rights of Trustee

  	
  51

  
	
   

  	
   

  	
   

  
	
  Section 8.04.

  	
  Trustee’s Disclaimer

  	
  52

  
	
   

  	
   

  	
   

  
	
  Section 8.05.

  	
  Notice of Default or Events of Default

  	
  52

  
	
   

  	
   

  	
   

  
	
  Section 8.06.

  	
  Reports by Trustee to Holders

  	
  52

  
	
   

  	
   

  	
   

  
	
  Section 8.07.

  	
  Compensation and Indemnity

  	
  52

  
	
   

  	
   

  	
   

  
	
  Section 8.08.

  	
  Replacement of Trustee

  	
  53

  
	
   

  	
   

  	
   

  
	
  Section 8.09.

  	
  Successor Trustee by Merger, Etc.

  	
  54

  
	
   

  	
   

  	
   

  
	
  Section 8.10.

  	
  Eligibility; Disqualification

  	
  54

  
	
   

  	
   

  	
   

  
	
  Section 8.11.

  	
  Preferential Collection of Claims Against Company

  	
  54

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9 SATISFACTION AND DISCHARGE OF INDENTURE

  	
  55

  
	
   

  	
   

  	
   

  
	
  Section 9.01.

  	
  Satisfaction and Discharge of Indenture

  	
  55

  
	
   

  	
   

  	
   

  
	
  Section 9.02.

  	
  Application of Trust Money

  	
  55

  
	
   

  	
   

  	
   

  
	
  Section 9.03.

  	
  Repayment to Company

  	
  56

  
	
   

  	
   

  	
   

  
	
  Section 9.04.

  	
  Reinstatement

  	
  56

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10 AMENDMENTS; SUPPLEMENTS AND WAIVERS

  	
  56

  
	
   

  	
   

  	
   

  
	
  Section 10.01.

  	
  Without Consent of Holders

  	
  56

  
	
   

  	
   

  	
   

  
	
  Section 10.02.

  	
  With Consent of Holders

  	
  57

  
	
   

  	
   

  	
   

  
	
  Section 10.03.

  	
  Compliance with Trust Indenture Act

  	
  58

  
	
   

  	
   

  	
   

  
	
  Section 10.04.

  	
  Revocation and Effect of Consents

  	
  59

  
	
   

  	
   

  	
   

  
	
  Section 10.05.

  	
  Notation on or Exchange of Securities

  	
  59

  
	
   

  	
   

  	
   

  
	
  Section 10.06.

  	
  Trustee to Sign Amendments, Etc.

  	
  59

  
	
   

  	
   

  	
   

  
	
  Section 10.07.

  	
  Effect of Supplemental Indentures

  	
  59

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11 REDEMPTION

  	
  59

  
	
   

  	
   

  	
   

  
	
  Section 11.01.

  	
  Redemption

  	
  59

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12 MISCELLANEOUS

  	
  61

  
	
   

  	
   

  	
   

  
	
  Section 12.01.

  	
  Trust Indenture Act Controls

  	
  61

  
	
   

  	
   

  	
   

  
	
  Section 12.02.

  	
  Notices

  	
  61

  
	
   

  	
   

  	
   

  
	
  Section 12.03.

  	
  Communications by Holders with Other Holder

  	
  62

  

 

iii

 

	
  Section 12.04.

  	
  Certificate and Opinion as to Conditions Precedent

  	
  62

  
	
   

  	
   

  	
   

  
	
  Section 12.05.

  	
  Record Date for Vote or Consent of Holders of Securities

  	
  62

  
	
   

  	
   

  	
   

  
	
  Section 12.06.

  	
  Rules by Trustee, Paying Agent, Registrar and
  Conversion Agent

  	
  63

  
	
   

  	
   

  	
   

  
	
  Section 12.07.

  	
  Legal Holidays

  	
  63

  
	
   

  	
   

  	
   

  
	
  Section 12.08.

  	
  Governing Law

  	
  63

  
	
   

  	
   

  	
   

  
	
  Section 12.09.

  	
  No Adverse Interpretation of Other Agreements

  	
  63

  
	
   

  	
   

  	
   

  
	
  Section 12.10.

  	
  No Recourse Against Others

  	
  63

  
	
   

  	
   

  	
   

  
	
  Section 12.11.

  	
  No Security Interest Created

  	
  63

  
	
   

  	
   

  	
   

  
	
  Section 12.12.

  	
  Successors

  	
  63

  
	
   

  	
   

  	
   

  
	
  Section 12.13.

  	
  Multiple Counterparts

  	
  63

  
	
   

  	
   

  	
   

  
	
  Section 12.14.

  	
  Separability

  	
  63

  
	
   

  	
   

  	
   

  
	
  Section 12.15.

  	
  Table of Contents, Headings, Etc.

  	
  64

  
	
   

  	
   

  	
   

  
	
  Section 12.16.

  	
  Force Majeure

  	
  64

  
	
   

  	
   

  	
   

  
	
  Exhibit

  	
   

  	
  A-1

  

 

iv

 

CROSS REFERENCE TABLE*

 

	
  TIA

  SECTION

  	
   

  	
  INDENTURE

  SECTION

  
	
  Section

  	
  310

  	
   

  	
  12.01

  
	
   

  	
  310(a)(1)

  	
   

  	
  8.10

  
	
   

  	
  (a)(2)

  	
   

  	
  8.10

  
	
   

  	
  (a) (3)

  	
   

  	
  N.A.**

  
	
   

  	
  (a) (4)

  	
   

  	
  N.A.

  
	
   

  	
  (a) (5)

  	
   

  	
  8.10

  
	
   

  	
  (b)

  	
   

  	
  8.10

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  Section

  	
  311

  	
   

  	
  12.01

  
	
   

  	
  311
  (a)

  	
   

  	
  8.11

  
	
   

  	
  (b)

  	
   

  	
  8.11

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  Section

  	
  312

  	
   

  	
  12.01

  
	
   

  	
  312(a)

  	
   

  	
  2.05

  
	
   

  	
  (b)

  	
   

  	
  12.03

  
	
   

  	
  (c)

  	
   

  	
  12.03

  
	
  Section

  	
  313

  	
   

  	
  12.01

  
	
   

  	
  313(a)

  	
   

  	
  8.06(a)

  
	
   

  	
  (b)(1)

  	
   

  	
  N.A.

  
	
   

  	
  (b)(2)

  	
   

  	
  8.06(a)

  
	
   

  	
  (c)

  	
   

  	
  8.06(a)

  
	
   

  	
  (d)

  	
   

  	
  8.06(b)

  
	
  Section

  	
  314

  	
   

  	
  12.01

  
	
   

  	
  314(a)

  	
   

  	
  5.02(a); 5.03

  
	
   

  	
  (b)

  	
   

  	
  N.A.

  
	
   

  	
  (c)(1)

  	
   

  	
  2.02; 9.01; 12.04

  
	
   

  	
  (c)(2)

  	
   

  	
  9.01; 12.04

  
	
   

  	
  (c)(3)

  	
   

  	
  N.A.

  
	
   

  	
  (d)

  	
   

  	
  N.A.

  
	
   

  	
  (e)

  	
   

  	
  12.04

  
	
   

  	
  (f)

  	
   

  	
  N.A.

  
	
  Section

  	
  315

  	
   

  	
  12.01

  
	
   

  	
  315(a)

  	
   

  	
  8.01(b)

  
	
   

  	
  (b)

  	
   

  	
  8.05

  
	
   

  	
  (d)

  	
   

  	
  8.01(c)

  
	
   

  	
  (d)(2)

  	
   

  	
  8.01(c)

  
	
   

  	
  (d)(3)

  	
   

  	
  8.01(c)

  
	
   

  	
  (e)

  	
   

  	
  7.11

  
	
  Section

  	
  316

  	
   

  	
  12.01

  
	
   

  	
  316
  (a)

  	
   

  	
  7.05; 10.02(b)

  
	
   

  	
  (b)

  	
   

  	
  7.07

  
	
   

  	
  (c)

  	
   

  	
  11.05

  
	
  Section

  	
  317

  	
   

  	
  7.08; 7.09; 12.01

  

 

 

	
  TIA

  SECTION

  	
   

  	
  INDENTURE

  SECTION

  
	
  Section

  	
  318

  	
   

  	
  12.01

  
				

 

*                 This
Cross-Reference Table shall not, for any purpose, be deemed a part of this
Indenture.

**          N.A. means Not
Applicable.

 

 

THIS
INDENTURE dated as of August 10, 2010 is between INLAND REAL ESTATE
CORPORATION, a corporation duly organized under the laws of the State of
Maryland (the “Company”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, a
national banking association organized and existing under the laws of the
United States of America, as Trustee (the “Trustee”).

 

Both
parties agree as follows for the benefit of the other and for the equal and
ratable benefit of the Holders of the Securities:

 

ARTICLE 1

DEFINITIONS
AND INCORPORATION BY REFERENCE

 

Section 1.01.          Definitions.

 

“Acquired
Debt” means Debt of a Person (i) existing at the time that Person is
merged or consolidated with or into, or becomes a Subsidiary of, the Company or
(ii) assumed by the Company or any of its Subsidiaries in connection with
the acquisition of assets from that Person. 
Acquired Debt shall be deemed to be incurred on the date the acquired
Person is merged or consolidated with or into, or becomes a Subsidiary of, the
Company or the date of the related acquisition, as the case may be.

 

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

 

“Agent”
means any Registrar, Paying Agent or Conversion Agent.

 

“Applicable
Conversion Period” means, with respect to a conversion of Securities, the 20
consecutive Trading Day period commencing on the third Trading Day following
the date the Securities are tendered for conversion.

 

“Applicable
Conversion Rate” means, as of any Trading Day, the Conversion Rate in effect on
such date.

 

“Applicable
Procedures” means, with respect to any tender, payment, transfer or exchange of
beneficial ownership interests in a Global Security, the rules and
procedures of the Depositary, to the extent applicable to such tender, payment,
transfer or exchange.

 

“Average
Price” means, with respect to a conversion of Securities, an amount equal to
the average of the Closing Sale Prices of shares of Common Stock for each
Trading Day in the Applicable Conversion Period.

 

“Beneficial
Ownership” means the definition such term is given in accordance with
Rule 13d-3 promulgated by the SEC under the Exchange Act.

 

1

 

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

 

“Business
Day” means any weekday that is not a day on which the Trustee or banking
institutions in The City of New York, New York or Chicago, Illinois are
authorized or obligated to close.

 

“Capital
Stock” of any Person means any and all shares, interests, rights to purchase,
warrants, options, participations or other equivalents of or interests in
(however designated) equity of such Person, but excluding any debt securities
convertible into such equity.

 

“Cash”
or “cash” means such coin or currency of the United States as at any time of
payment is legal tender for the payment of public and private debts.

 

“Certificated
Security” means a Security that is in substantially the form attached as
Exhibit A but that does not include the information or the schedule called
for by footnote 1 thereof.

 

“Change
in Control” means the occurrence at any time any of any of the following
events:

 

(1)           consummation of
any transaction or event (whether by means of a share exchange or tender offer
applicable to shares of Common Stock, a liquidation, consolidation,
recapitalization, reclassification, combination or merger of the Company or a
sale, lease or other transfer of all or substantially all of the consolidated
assets of the Company) or a series of related transactions or events pursuant
to which all of the shares of outstanding Common Stock are exchanged for,
converted into or constitute solely the right to receive, cash, securities or
other property;

 

(2)           any “person” or
“group” (as such terms are used for purposes of Sections 13(d) and
14(d) of the Exchange Act, whether or not applicable), other than the
Company or any majority owned subsidiary of the Company, any employee benefit
plan of such subsidiary or the Inland Group, Inc. or its affiliates, is or
becomes the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of more than 50% of the total voting
power in the aggregate of all classes of shares of the capital stock of the
Company then outstanding entitled to vote generally in elections of directors;

 

(3)           during any
period of 12 consecutive months after the date of original issuance of the
Securities, persons who at the beginning of such 12-month period constituted
the Board of Directors of the Company, together with any new persons whose
election was approved by a vote of a majority of the persons then still
comprising the Board of Directors of the Company who were either members of the
Board of Directors of the Company at the beginning of such period or whose
election, designation or nomination for election was previously so approved,
cease for any reason to constitute a majority of the Board of Directors of the
Company;

 

2

 

(4)           the Common
Stock (or other common stock or securities into which the Securities are then
convertible) ceases to be listed on a U.S. national or regional securities
exchange; or

 

(5)           the Company’s
stockholders approve any plan or proposal for our liquidation.

 

Notwithstanding the foregoing, even if any of the
events specified in the preceding clauses (1) through (3) have
occurred, except as specified in clause (x), a Change in Control will not be
deemed to have occurred if either: 
(x) the Closing Sale Price per share of Common Stock for any five
Trading Days within (i) the period of 10 consecutive Trading Days ending
immediately after the later of the Change in Control or the public announcement
of the Change in Control, in the case of a Change in Control relating to an
acquisition of capital stock, or (ii) the period of 10 consecutive Trading
Days ending immediately after the Change in Control, in the case of a Change in
Control relating to a merger, consolidation or asset sale, equals or exceeds
105% of the Conversion Price in effect on each of those Trading Days; provided, however, that
the exception to the definition of “Change in Control” specified in this clause
(x) shall not apply in the context of a Change in Control for purposes of
Section 4.01(g); or (y) at least 90% of the consideration (excluding
cash payments for fractional shares and cash payments made pursuant to
dissenters’ appraisal rights) in a merger, consolidation or other transaction
otherwise constituting a Change in Control consists of shares of common stock
(or depositary receipts or other certificates representing common equity
interests) traded on a U.S. national securities exchange or quoted on an
established automated over the counter trading market in the United States (or
will be so traded or quoted immediately following such merger, consolidation or
other transaction) and as a result of the merger, consolidation or other
transaction the Securities become convertible into such shares of common stock
(or depositary receipts or other certificates representing common equity interests).  For the purposes of this definition, “person”
includes any syndicate or group that would be deemed to be a “person” under
Section 13(d)(3) of the Exchange Act.

 

“Change
in Control Effective Date” means the date on which any Change in Control becomes
effective.

 

“Change
in Control Purchase Date” has the meaning provided in
Section 3.01(b) hereof.

 

“Change
in Control Purchase Notice” has the meaning provided in
Section 3.01(c) hereof.

 

“Change
in Control Purchase Price” of any Security, means 100% of the principal amount
of the Security to be purchased plus accrued and unpaid interest, if any, to,
but excluding, the Change in Control Purchase Date.

 

“Closing
Sale Price” of the Common Stock or other capital stock or similar equity
interests or other publicly traded securities on any Trading Day means the
closing sale price per share (or, if no closing sale price is reported, the
average of the closing bid and ask prices or, if more than one in either case,
the average of the average closing bid and the average closing ask prices) on
such date as reported on the principal U.S. national or regional securities
exchange on 

 

3

 

which
the Common Stock or such other capital stock or similar equity interests or other
publicly traded securities are listed or, if the Common Stock or such other
capital stock or similar equity interests or other publicly traded securities
are not listed on a U.S. national or regional securities exchange, as reported
on another established over the counter trading market in the United
States.  The Closing Sale Price shall be
determined without regard to after hours trading or extended market
making.  In the absence of the foregoing,
the Company shall determine the Closing Sale Price on such basis as it
considers appropriate.

 

“Common
Stock” means the common stock of the Company, par value $0.01 per share as it
exists on the date of this Indenture and any shares of any class or classes of
Capital Stock of the Company resulting from any reclassification or
reclassifications thereof, or, in the event of a merger, consolidation or other
similar transaction involving the Company that is otherwise permitted hereunder
in which the Company is not the surviving corporation the common stock, common
equity interests, ordinary shares or depositary shares or other certificates
representing common equity interests of such surviving corporation or its
direct or indirect parent corporation, and which have no preference in respect
of dividends or of amounts payable in the event of any voluntary or involuntary
liquidation, dissolution or winding-up of the Company and which are not subject
to redemption by the Company; provided, however, that if at any time there
shall be more than one such resulting class, the shares of each such class then
so issuable on conversion of Securities shall be substantially in the
proportion which the total number of shares of such class resulting from all
such reclassifications bears to the total number of shares of all such classes
resulting from all such reclassifications.

 

“Company”
means the party named as such in the first paragraph of this Indenture until a
successor replaces it pursuant to the applicable provisions of this Indenture,
and thereafter “Company” shall mean such successor Company.

 

“Conversion
Date” means, with respect to a Security, the date on which the Holder of the
Security has complied with Section 4.02.

 

“Conversion
Price” per share of Common Stock as of any day means the result obtained by
dividing (i) $1,000 by (ii) the then Applicable Conversion Rate,
rounded to the nearest cent.

 

“Conversion
Rate” means the rate at which shares of Common Stock shall be delivered upon
conversion, which rate shall be initially 102.8807 shares of Common Stock for
each $1,000 principal amount of Securities, as adjusted from time to time
pursuant to the provisions of this Indenture.

 

“Conversion
Value” means, for each $1,000 principal amount of Securities, the average of
the Daily Conversion Values for each of the twenty consecutive Trading Days of
the Applicable Conversion Period.

 

“Corporate
Trust Office” means the office of the Trustee at which at any particular time
the trust created by this Indenture shall be administered, which initially will
be the office of Wells Fargo Bank, National Association located at 230 W.
Monroe Street, Suite 2900, Chicago, Illinois 60606 attention:  Corporate Trust Services except that, with
respect to presentation of the Securities for payment, conversion or
registration of transfers or exchanges and the location of 

 

4

 

the
Security Registrar, such term means the office or agency of the Trustee in
Minneapolis, Minnesota, which at the date of original execution of this
Indenture is located at 608 Second Avenue South, N9303-121, Minneapolis,
Minnesota 55479, Attention: Corporate Trust Operations.

 

“Daily
Conversion Value” means, with respect to any Trading Day, the product of
(1) the Applicable Conversion Rate and (2) the Closing Sale Price of
the Common Stock on such Trading Day.

 

“Daily Share Amount” for
each $1,000 principal amount of Securities and each Trading Day in the
Applicable Conversion Period is equal to the greater of:

 

(a)           zero; and

 

(b)           a number of shares of Common Stock determined by the following formula:

 

 

where

 

CSP
means the Closing Sale Price per share of Common Stock on such Trading Day,

 

CR
means the Applicable Conversion Rate, and

 

Net
Cash Amount has the meaning set forth in this Section 1.01.

 

“Debt”
means, with respect to any Person, any: 
(i) indebtedness of that Person, whether or not contingent, in
respect of borrowed money or evidenced by bonds, notes, debentures or similar
instruments, (ii).indebtedness secured by any lien on any property or asset
owned by the Person, but only to the extent of the lesser of (A) the
amount of indebtedness so secured and (B) the fair market value,
determined in good faith by the board of directors of the Person or, in the
case of the Company or any of its Subsidiaries, by the Board of Directors, of
the property subject to the lien, (iii) reimbursement obligations,
contingent or otherwise, in connection with any letters of credit actually
issued or amounts representing the balance deferred and unpaid of the purchase
price of any property except any balance that constitutes an accrued expense,
trade payable or payment under any shared service agreement between the Company
and the Inland Group, Inc. or its affiliates, (iv) lease of property
by a Person as lessee which is required to be reflected on that Person’s
balance sheet as a capitalized lease in accordance with GAAP, and
(v) obligation of such Person to be liable for, or to pay, as obligor,
guarantor or otherwise, other than for purposes of collection in the ordinary
course of business, “Debt” referred to in clauses (i) through
(iv) above or another Person.  “Debt”
shall be deemed to be incurred by a Person whenever that Person shall create,
assume, guarantee or otherwise become liable in respect thereof.

 

5

 

“Default”
means, when used with respect to the Securities, any event that is or, after
notice or passage of time, or both, would be, an Event of Default.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder, as in effect from time to time.

 

“Ex-dividend
Date”‘ means the first date upon which a sale of shares of the Common Stock
does not automatically transfer the right to receive the relevant distribution
from the seller of Common Stock to the buyer.

 

“Final
Maturity Date” means November 15, 2029.

 

“GAAP”
means generally accepted accounting principles in the United States of America
as in effect from time to time, including those set forth in (1) the
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants, (2) the statements and
pronouncements of the Public Company Accounting Oversight Board and the
Financial Accounting Standards Board, (3) such other statements by such
other entity as approved by a significant segment of the accounting profession
and (4) the rules and regulations of the SEC governing the inclusion
of financial statements (including pro forma financial statements) in
registration statements filed under the Securities Act and periodic reports
required to be filed pursuant to Section 13 of the Exchange Act, including
opinions and pronouncements in staff accounting bulletins and similar written
statements from the accounting staff of the SEC.

 

“Global
Security” means a Security in global form that is in substantially the form
attached as Exhibit A and that includes the information and schedule
called for in footnote 1 thereof and which is deposited with the Depositary or
its custodian and registered in the name of the Depositary or its nominee.

 

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

 

“Indenture”
means this Indenture as amended or supplemented from time to time pursuant to
the terms of this Indenture, including the provisions of the TIA that are
automatically deemed to be a part of this Indenture by operation of the TIA,
and the terms of the Securities.

 

“Interest
Payment Date” means May 15 and November 15 each year, commencing
November 15, 2010.

 

“Issue
Date” of any Security means the date on which the Security was originally
issued or deemed issued as set forth on the face of the Security.

 

“Net
Amount” has the meaning provided in Section 4.13(a) hereof.

 

“Net
Cash Amount” has the meaning provided in Section 4.13(b) hereof.

 

“NYSE”
means the New York Stock Exchange.

 

6

 

“Officer”
means the Chairman of the Board, the Chief Executive Officer, the President,
any Vice President, the Chief Financial Officer, the Controller, the Secretary,
any Assistant Controller or any Assistant Secretary of the Company.

 

“Officers’
Certificate” means a certificate signed by the Chairman, any Vice Chairman, the
President or a Vice President and by the Treasurer, an Assistant Treasurer, the
Secretary or an Assistant Secretary of the Company, and delivered to the
Trustee.

 

“Opinion
of Counsel” means a written opinion from legal counsel reasonably acceptable to
the Trustee.  The counsel may be an employee
of or counsel to the Company.

 

“Optional
Repurchase Date” has the meaning provided in Section 3.02(a) hereof.

 

“Optional
Repurchase Notice” has the meaning provided in
Section 3.02(c) hereof.

 

“Optional
Repurchase Price” has the meaning provided in Section 3.02(a) hereof.

 

“Outstanding”
has the meaning set forth in Section 2.08.

 

“Person”
or “person” means any individual, corporation, partnership, limited liability
company, joint venture, association, joint-stock company, trust, unincorporated
organization, government or any agency or political subdivision thereof or any
syndicate or group that would be deemed to be a “person” under
Section 13(d)(3) of the Exchange Act or any other entity.

 

“Principal”
or “principal” of a debt security, including the Securities, means the
principal of the debt security plus, when appropriate, the premium, if any, on
the debt security.

 

“Redemption
Date” means, with respect to any Security or portion thereof to be redeemed in
accordance with the provisions of Section 11.01 hereof, the date fixed for
such redemption in accordance with the provisions of Section 11.01 hereof.

 

“Redemption
Price” has the meaning provided in Section 11.01(b) hereof.

 

“Reference
Dividend” has the meaning specified in Section 4.06(a)(4).

 

“Regular
Record Date” means, with respect to each Interest Payment Date, the May 1
or November 1 as the case may be, next preceding such Interest Payment
Date.

 

“REIT”
means a “real estate investment trust” under the Internal Revenue Code of 1986,
as amended.

 

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

 

“Restricted
Global Security” means a Global Security that is a Restricted Security.

 

7

 

“Restricted
Security” means a Security required to bear the restricted legend set forth in
the form of Security annexed as Exhibit A.

 

“Rule 144”
means Rule 144 under the Securities Act or any successor to such Rule.

 

“Rule 144A”
means Rule 144A under the Securities Act or any successor to such Rule.

 

“SEC”
means the Securities and Exchange Commission.

 

“Securities”
means the up to $29,215,000 aggregate principal amount of 5.0% Convertible
Senior Notes due 2029, or any of them (each a “Security”), as amended or
supplemented from time to time, that are issued under this Indenture.

 

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

 

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

 

“Significant
Subsidiary” means, in respect of any Person, as of any date of determination, a
Subsidiary of such Person that would constitute a “significant subsidiary” as
such term is defined under Rule 1-02(w) of Regulation S-X under the
Securities Act.

 

“Subsidiary”
means, in respect of any Person, any corporation, association, partnership or
other business entity of which more than 50% of the total voting power of
shares of Capital Stock entitled (without regard to the occurrence of any
contingency within the control of such Person to satisfy) to vote in the
election of directors, managers, general partners or trustees thereof is at the
time owned or controlled, directly or indirectly, by (i) such Person,
(ii) such Person and one or more Subsidiaries of such Person or
(iii) one or more Subsidiaries of such Person.

 

“TIA”
means the Trust Indenture Act of 1939, as amended, and the rules and
regulations thereunder as in effect on the date of this Indenture, except to
the extent that the Trust Indenture Act or any amendment thereto expressly
provides for application of the Trust Indenture Act as in effect on another
date.

 

“Trading
Day” means a day during which trading in securities generally occurs on the
NYSE or, if shares of Common Stock are not then listed on the NYSE, on the
principal other U.S. national or regional securities exchange on which shares
of Common Stock are then listed or, if shares of Common Stock are not then
listed on a U.S. national or regional securities exchange, on the principal
other market on which shares of Common Stock are then traded.  A “Trading Day” only includes those days that
have a scheduled closing time of 4:00 p.m. (New York City time) or the
then standard closing time for regular trading on the relevant exchange or
trading system.

 

“Trading
Price” means, with respect to the Securities on any date of determination, the
average of the secondary market bid quotations per $1,000 principal amount of
Securities obtained by the Company for a $1,000,000 principal amount of
Securities at approximately 3:30 

 

8

 

p.m.,
New York City time, on such determination date from two independent nationally
recognized securities dealers selected by the Company.  If at least two such bids cannot reasonably
be obtained by the Company, but one such bid can reasonably be obtained by the Company,
then one bid shall be used.  If the
Company cannot reasonably obtain at least one bid for a $1,000,000 principal
amount of Securities from a nationally recognized securities dealer or, in the
reasonable judgment of the Company, the bid quotations are not indicative of
the secondary market value of the Securities, then the Trading Price per $1,000
principal amount of Securities shall be deemed to be less than 98% of the
product of the Closing Sale Price of shares of Common Stock and the Applicable
Conversion Rate on such determination date.

 

“Trustee”
means the party named as such in the first paragraph of this Indenture until a
successor replaces it in accordance with the provisions of this Indenture, and
thereafter means the successor.

 

“Vice
President” when used with respect to the Company or the Trustee, means any vice
president, whether or not designated by a number or a word or words added
before or after the title “vice president.”

 

“Voting
Stock” of a Person means all classes of Capital Stock or other interests
(including partnership interests) of such Person then outstanding and normally
entitled (without regard to the occurrence of any contingency within the
control of such person to satisfy) to vote in the election of directors,
managers or trustees thereof.

 

Section 1.02.          Other Definitions.

 

	
  Term

  	
   

  	
  Defined in Section

  
	
  “Agent
  Members”

  	
   

  	
  2.01

  
	
  “Bankruptcy
  Law”

  	
   

  	
  7.01

  
	
  “Company
  Order”

  	
   

  	
  2.02

  
	
  “Company
  Notice”

  	
   

  	
  3.01

  
	
  “Conversion
  Agent”

  	
   

  	
  2.03

  
	
  “Conversion
  Date”

  	
   

  	
  4.02

  
	
  “Depositary”

  	
   

  	
  2.01

  
	
  “Distribution
  Notice”

  	
   

  	
  4.01(b)

  
	
  “DTC”

  	
   

  	
  2.01

  
	
  “Event
  of Default”

  	
   

  	
  7.01

  
	
  “Expiration
  Time”

  	
   

  	
  4.06

  
	
  “Legal
  Holiday”

  	
   

  	
  11.07

  
	
  “Net
  Amount”

  	
   

  	
  4.13

  
	
  “Net
  Cash Amount”

  	
   

  	
  4.13

  
	
  “Net
  Shares”

  	
   

  	
  4.13

  
	
  “Notice
  of Default”

  	
   

  	
  7.01

  
	
  “Paying
  Agent”

  	
   

  	
  2.03

  
	
  “Primary
  Registrar”

  	
   

  	
  2.03

  
	
  “Principal
  Return”

  	
   

  	
  4.13

  
	
  “Prospectus”

  	
   

  	
  2.01(a)

  
	
  “Receiver”

  	
   

  	
  7.01

  

 

9

 

	
  Term

  	
   

  	
  Defined in Section

  
	
  “Registrar”

  	
   

  	
  2.03

  
	
  “Registration
  Statement”

  	
   

  	
  2.01(a)

  
	
  “record
  date”

  	
   

  	
  4.06

  

 

Section 1.03.          Trust Indenture Act Provisions.  Whenever this Indenture refers to a provision
of the TIA, that provision is incorporated by reference in and made a part of
this Indenture.  This Indenture shall
also include those provisions of the TIA required to be included herein by the
provisions of the Trust Indenture Reform Act of 1990.

 

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

 

“indenture
securities” means the Securities;

 

“indenture
security holder” means a Holder of a Security;

 

“indenture
to be qualified” means this Indenture;

 

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

 

“obligor”
on the indenture securities means the Company or any other obligor on the
Securities.

 

All
other terms used in this Indenture that are defined in the TIA, defined by TIA
reference to another statute or defined by any SEC rule and not otherwise
defined herein have the meanings assigned to them therein.

 

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

 

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

 

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

 

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

 

(4)           provisions apply to successive events and transactions;

 

(5)           the term “merger” includes a statutory share exchange and the term “merged”
has a correlative meaning;

 

(6)           the masculine gender includes the feminine and the neuter;

 

(7)           references to agreements and other instruments include subsequent
amendments thereto; and

 

(8)           all “Article”, “Exhibit” and “Section” references are to Articles,
Exhibits and Sections, respectively, of or to this Indenture unless otherwise
specified herein, and 

 

10

 

 

the
terms “herein,” “hereof” and other words of similar import refer to this
Indenture as a whole and not to any particular Article, Section or other
subdivision.

 

ARTICLE 2

THE
SECURITIES

 

Section 2.01.          Form and Dating.  The Securities and the Trustee’s certificate
of authentication shall be substantially in the respective forms set forth in
Exhibit A, which Exhibit is incorporated in and made part of this
Indenture.  The Securities may have
notations, legends or endorsements required by law, stock exchange or automated
quotation system rule or regulation or usage.  The Company shall provide any such notations,
legends or endorsements to the Trustee in writing.  Each Security shall be dated the date of its
authentication.

 

(a)           Global Securities.  All of the Securities are initially being
offered and sold to existing holders of the Company’s 4.625% Convertible Notes
due 2026 pursuant to the Company’s offer to exchange the Securities upon the
terms and subject to the conditions set forth in the prospectus, subject to
amendment, dated June 29, 2010 (as it may be amended and supplemented from
time to time, the “Prospectus”), which forms a part of the Registration
Statement on Form S-4 filed by the Company on the date hereof (the “Registration
Statement”) (collectively, “Exchange Participants” or individually, each an “Exchange
Participant”) and shall be issued initially in the form of one or more Global
Securities, which shall be deposited on behalf of the Exchange Participants
represented thereby with the Securities Custodian, as custodian for the
depositary, The Depository Trust Company (“DTC”, and such depositary, or any
successor thereto, being hereinafter referred to as the “Depositary”), and
registered in the name of its nominee, Cede & Co.  (or any successor thereto), for the
accounts of participants in the Depositary, duly executed by the Company and
authenticated by the Trustee as hereinafter provided.  The aggregate principal amount of the Global
Securities may from time to time be increased or decreased by adjustments made
on the records of the Securities Custodian as hereinafter provided, subject in
each case to compliance with the Applicable Procedures.

 

(b)           Global Securities In General.  The Securities issued in global form shall be
substantially in the form of Exhibit A attached hereto (including the
Global Security legend thereon and the “Schedule of Exchanges of Securities”
attached thereto).  The Securities issued
in definitive form shall be substantially in the form of Exhibit A
attached hereto (but without the Global Security legend thereon and without the
“Schedule of Exchanges of Securities” attached thereto). Each Global Security
shall represent such of the outstanding Securities as shall be specified
therein and each shall provide that it shall represent the aggregate amount of
outstanding Securities from time to time endorsed thereon and that the
aggregate amount of outstanding Securities represented thereby may from time to
time be reduced or increased, as appropriate, to reflect replacements, exchanges,
purchases, redemptions, or conversions of such Securities.  Any adjustment of the aggregate principal
amount of a Global Security to reflect the amount of any increase or decrease
in the amount of outstanding Securities represented thereby shall be made by
the Trustee in accordance with instructions given by the Holder thereof as
required by Section 2.12 and shall be made on the records of the Trustee
and the Depositary.

 

11

 

Members
of, or participants in, the Depositary (“Agent Members”) shall have no rights
under this Indenture with respect to any Global Security held on their behalf
by the Depositary or under the Global Security, and the Depositary (including,
for this purpose, its nominee) may be treated by the Company, the Trustee and
any agent of the Company or the Trustee as the absolute owner and Holder of
such Global Security for all purposes whatsoever.  Notwithstanding the foregoing, nothing herein
shall (1) 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 (2) impair, as between the
Depositary and its Agent Members, the operation of customary practices governing
the exercise of the rights of a Holder of any Security.

 

(c)           Book Entry Provisions.  The Company shall execute and the Trustee
shall, in accordance with this Section 2.01(c), authenticate and deliver
initially one or more Global Securities that (1) shall be registered in
the name of the Depositary or its nominee, (2) shall be delivered by the
Trustee to the Depositary or pursuant to the Depositary’s instructions and
(3) shall bear legends substantially to the following effect:

 

“UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE
TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.  THIS SECURITY IS A GLOBAL SECURITY WITHIN THE
MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME
OF A DEPOSITARY OR A NOMINEE THEREOF. 
THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A
PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED
IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY
MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF
THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER
NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.”

 

12

 

Section 2.02.          Execution and Authentication.

 

(a)           The aggregate principal amount of Securities which may be authenticated
and delivered under this Indenture is limited to $29,215,000 aggregate
principal amount, except as provided in Sections 2.06 and 2.07.

 

(b)           An Officer shall sign the Securities for the Company by manual or
facsimile signature.  Typographic and
other minor errors or defects in any such facsimile signature shall not affect
the validity or enforceability of any Security that has been authenticated and
delivered by the Trustee.

 

(c)           If an officer whose signature is on a Security no longer holds that
office at the time the Trustee authenticates the Security, the Security shall
be valid nevertheless.

 

(d)           A Security shall not be valid until an authorized signatory of the
Trustee by manual signature signs the certificate of authentication on the
Security.  The signature shall be
conclusive evidence that the Security has been authenticated under this
Indenture.

 

(e)           The Trustee shall authenticate and make available for delivery Securities
for original issue in the aggregate principal amount of up to $29,215,000 upon
receipt of a written order or orders of the Company signed by an Officer of the
Company (a “Company Order”).  The Company
order shall specify the amount of Securities to be authenticated and the date
on which each original issue of Securities is to be authenticated.

 

(f)            The Trustee shall act as the initial authenticating agent.  Thereafter, the Trustee may appoint an
authenticating agent acceptable to the Company to authenticate Securities.  An authenticating agent may authenticate
Securities whenever the Trustee may do so. 
Each reference in this Indenture to authentication by the Trustee
includes authentication by such agent. 
An authenticating agent shall have the same rights as an Agent to deal
with the Company or an Affiliate of the Company.

 

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

 

Section 2.03.          Registrar, Paying Agent and Conversion Agent.

 

(a)           The Company shall maintain one or more offices or agencies where
Securities may be presented for registration of transfer or for exchange (each,
a “Registrar”), one or more offices or agencies where Securities may be
presented for payment (each, a “Paying Agent”), one or more offices or agencies
where Securities may be presented for conversion (each, a “Conversion Agent”)
and one or more offices or agencies where notices and demands to or upon the
Company in respect of the Securities and this Indenture may be served.  The Company will at all times maintain a
Paying Agent, Conversion Agent, Registrar and an office or agency where notices
and demands to or upon the Company in respect of the Securities and this
Indenture may be served, which initially shall be the Corporate Trust Office of
the Trustee.  One of the Registrars (the “Primary
Registrar”) shall keep a register of the Securities and of their transfer and
exchange.

 

13

 

(b)           The Company shall enter into an appropriate agency agreement with any
Agent not a party to this Indenture, provided that the Agent may be an
Affiliate of the Trustee.  The agreement
shall implement the provisions of this Indenture that relate to such
Agent.  The Company shall notify the Trustee
of the name and address of any Agent not a party to this Indenture.  If the Company fails to maintain a Registrar,
Paying Agent, Conversion Agent, or agent for service of notices and demands in
any place required by this Indenture, or fails to give the foregoing notice,
the Trustee shall act as such.  The
Company or any Affiliate of the Company may act as Paying Agent (except for the
purposes of Section 5.01 and Article 9).

 

(c)           The Company hereby initially designates the Trustee as Paying Agent, Registrar,
Securities Custodian and Conversion Agent, and initially designates the
Corporate Trust Office of the Trustee as an office or agency where notices and
demands to or upon the Company in respect of the Securities and this Indenture
shall be served.

 

Section 2.04.          Paying Agent to Hold Money in Trust.  Prior to 10:00 a.m., New York City time,
on each due date of the payment of principal of, or interest on, any
Securities, the Company shall deposit with the Paying Agent a sum sufficient to
pay such principal or interest so becoming due. 
Subject to Section 9.02, a Paying Agent shall hold in trust for the
benefit of Holders of Securities or the Trustee all money held by the Paying
Agent for the payment of principal of, or interest on, the Securities, and shall
notify the Trustee of any failure by the Company (or any other obligor on the
Securities) to make any such payment.  If
the Company or an Affiliate of the Company acts as Paying Agent, it shall,
before 10:00 a.m., New York City time, on each due date of the principal
of, or interest on, any Securities, segregate the money and hold it as a
separate trust fund.  The Company at any
time may require a Paying Agent to pay all money held by it to the Trustee, and
the Trustee may at any time during the continuance of any Default, upon written
request to a Paying Agent, require such Paying Agent to pay forthwith to the
Trustee all sums so held in trust by such Paying Agent.  Upon doing so, the Paying Agent (other than
the Company) shall have no further liability for the money.  The Company or an Affiliate of the Company
shall not act as Paying Agent in connection with a redemption pursuant to
Article 11 or pursuant to repurchase pursuant to Section 3.01 and
Section 3.02.

 

Section 2.05.          Lists of Holders of Securities.  The Trustee shall preserve in as current a
form as is reasonably practicable the most recent list available to it of the
names and addresses of Holders of Securities. 
If the Trustee is not the Primary Registrar, the Company shall furnish
to the Trustee on or before each Interest Payment Date and at such other times
as the Trustee may request in writing, a list in such form and as of such date
as the Trustee may reasonably require of the names and addresses of Holders of
Securities.

 

Section 2.06.          Transfer and Exchange.

 

(a)           Subject to compliance with any applicable additional requirements
contained in Section 2.12, when a Security is presented to a Registrar
with a request to register a transfer thereof or to exchange such Security for
an equal principal amount of Securities of other authorized denominations, the
Registrar shall register the transfer or make the exchange as requested; provided, however, that every Security presented or
surrendered for registration of transfer or exchange shall be duly endorsed or
accompanied by an assignment form and completed in a manner satisfactory to the
Registrar and duly executed by the Holder thereof or 

 

14

 

its attorney duly
authorized in writing.  To permit registration
of transfers and exchanges, upon surrender of any Security for registration of
transfer or exchange at an office or agency maintained pursuant to
Section 2.03, the Company shall execute and the Trustee shall authenticate
Securities of a like aggregate principal amount at the Registrar’s
request.  Any exchange or transfer shall
be without charge, except that the Company or the Registrar may require payment
of a sum sufficient to cover any tax or other governmental charge that may be
imposed in relation thereto; provided that this sentence shall not apply to any
exchange pursuant to Section 2.10, 2.12(a), 3.04, 4.02(e), or 4.04.

 

(b)           Neither the Company, any Registrar nor the Trustee shall be required to
exchange or register a transfer of (1) any Securities for a period of 15
days next preceding mailing of a notice of Securities to be redeemed, or
(2) any Securities or portions thereof in respect of which a Change in
Control Purchase Notice has been delivered and not withdrawn by the Holder thereof
(except, in the case of the purchase of a Security in part, the portion thereof
not to be purchased).

 

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

 

(d)           Any Registrar appointed pursuant to Section 2.03 shall provide to
the Trustee such information as the Trustee may reasonably require in
connection with the delivery by such Registrar of Securities upon transfer or
exchange of Securities.

 

(e)           Each Holder of a Security agrees to indemnify the Company and the Trustee
against any liability that may result from the transfer, exchange or assignment
of such Holder’s Security in violation of any provision of this Indenture
and/or applicable United States federal or state securities law.

 

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

 

Section 2.07.          Replacement Securities.

 

(a)           If any mutilated Security is surrendered to the Company, a Registrar or
the Trustee, and the Company, a Registrar and the Trustee receive evidence to
their satisfaction of the destruction, loss or theft of any Security, and there
is delivered to the Company, the applicable Registrar and the Trustee such
security or indemnity as will be required by them to save each of them
harmless, then, in the absence of notice to the Company, such Registrar or the
Trustee that such Security has been acquired by a bona fide purchaser, the
Company shall execute, and upon its written request the Trustee shall
authenticate and deliver, in exchange for any such mutilated Security or in
lieu of any such destroyed, lost or stolen Security, a new 

 

15

 

Security of like tenor and
principal amount, bearing a number not contemporaneously outstanding.

 

(b)           If any such mutilated, destroyed, lost or stolen Security has become or
is about to become due and payable, or is about to be purchased by the Company
pursuant to Article 3, or converted pursuant to Article 4, the
Company in its discretion may, instead of issuing a new Security, pay, purchase
or convert such Security, as the case may be.

 

(c)           Upon the issuance of any new Securities under this Section 2.07, 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 as a result of any
Securities, at the request of any Holder, being issued to a Person other than
such Holder and any other reasonable expenses (including the reasonable fees
and expenses of the Trustee or the Registrar) in connection therewith.

 

(d)           Every new Security issued pursuant to this Section 2.07 in lieu of
any mutilated, destroyed, lost or stolen Security shall constitute an original
additional contractual obligation of the Company, whether or not the mutilated,
destroyed, lost or stolen Security shall be at any time enforceable by anyone,
and shall be entitled to all benefits of this Indenture equally and
proportionately with any and all other Securities duly issued hereunder.

 

(e)           The provisions of this Section 2.07 are (to the extent lawful)
exclusive and shall preclude (to the extent lawful) all other rights and
remedies with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Securities.

 

Section 2.08.          Outstanding Securities.

 

(a)           Securities outstanding at any time are all Securities authenticated by
the Trustee, except for those canceled by it, those purchased pursuant to
Article 3, those converted pursuant to Article 4, those redeemed by
the Company pursuant to Article 11, those delivered to the Trustee for
cancellation or surrendered for transfer or exchange and those described in
this Section 2.08 as not outstanding.

 

(b)           If a Security is replaced pursuant to Section 2.07, it ceases to be
outstanding unless the Company receives proof satisfactory to it that the
replaced Security is held by a bona fide purchaser.

 

(c)           If a Paying Agent (other than the Company or an Affiliate of the Company)
holds in respect of the outstanding Securities on an Optional Repurchase Date,
a Change in Control Purchase Date, Redemption Date or the Final Maturity Date
money sufficient to pay the principal of and accrued interest, if any, on
Securities (or portions thereof) payable on that date, then on and after such
Optional Repurchase Date, Change in Control Purchase Date, Redemption Date or
Final Maturity Date, as the case may be, such Securities (or portions thereof,
as the case may be) shall cease to be outstanding and cash interest, if any, on
them shall cease to accrue.

 

(d)           Subject to the restrictions contained in Section 2.09, a Security
does not cease to be outstanding because the Company or an Affiliate of the
Company holds the Security.

 

16

 

Section 2.09.          Treasury Securities.  In determining whether the Holders of the
required principal amount of Securities have concurred in any notice,
direction, waiver or consent, securities owned by the Company or any other
obligor on the Securities or by any Affiliate of the Company or of such other
obligor shall be disregarded, except that, for purposes of determining whether
the Trustee shall be protected in relying on any such notice, direction, waiver
or consent, only Securities which a Responsible Officer of the Trustee with
responsibility for this Indenture actually knows are so owned shall be so
disregarded.  Securities so owned which
have been pledged in good faith shall not be disregarded if the pledgee
establishes to the satisfaction of the Trustee the pledgee’s right so to act
with respect to the Securities and that the pledgee is not the Company or any
other obligor on the Securities or any Affiliate of the Company or of such
other obligor.

 

Section 2.10.          Temporary Securities.  Until definitive Securities are ready for
delivery, the Company may prepare and execute, and, upon receipt of a Company
Order, the Trustee shall authenticate and deliver, temporary Securities.  Temporary Securities shall be substantially
in the form of definitive securities but may have variations that the Company
with the consent of the Trustee considers appropriate for temporary Securities.
Without unreasonable delay, the Company shall prepare and the Trustee shall
authenticate and deliver definitive Securities in exchange for temporary
Securities.

 

Holders
of temporary Securities shall be entitled to all of the benefits of this indenture.

 

Section 2.11.          Cancellation.  The Company at any time may deliver
Securities to the Trustee for cancellation. The Registrar, the Paying Agent and
the Conversion Agent shall forward to the Trustee or its agent any Securities
surrendered to them for transfer, exchange, purchase, payment or
conversion.  The Trustee and no one else
shall cancel, in accordance with its standard procedures, all Securities
surrendered for transfer, exchange, purchase, payment, conversion or
cancellation and shall dispose of the cancelled Securities in accordance with
its customary procedures.  All Securities
which are purchased, redeemed or otherwise acquired by the Company or any of
its Subsidiaries prior to the Final Maturity Date pursuant to Article 3
shall be delivered to the Trustee for cancellation, and the Company may not
hold or resell such Securities or issue any new Securities to replace any such
Securities or any Securities that any Holder has converted pursuant to
Article 4.

 

Section 2.12.          Legend; Additional Transfer and Exchange
Requirements.

 

(a)           If Securities are issued upon the transfer, exchange or replacement of
Securities subject to restrictions on transfer and bearing the legends set
forth on the forms of Securities attached as Exhibit A (collectively, the “Legend”),
or if a request is made to remove the Legend on a Security, the Securities so
issued shall bear the Legend, or the Legend shall not be removed, as the case
may be, unless there is delivered to the Company and the Registrar such
satisfactory evidence, which shall include an Opinion of Counsel if requested
by the Company or such Registrar, as may be reasonably required by the Company
and the Registrar, that neither the Legend nor the restrictions on transfer set
forth therein are required to ensure that transfers thereof comply with the
provisions of Rule 144A or Rule 144 under the Securities Act or that
such Securities are not “restricted” within the meaning of Rule 144 under
the Securities Act; provided that no such evidence need be supplied in connection
with the sale of such Security 

 

17

 

pursuant to a registration
statement that is effective at the time of such sale.  Upon (1) provision of such satisfactory
evidence if requested or (2) notification by the Company to the Trustee
and Registrar of the sale of such Security pursuant to a registration statement
that is effective at the time of such sale, the Trustee, at the written
direction of the Company, shall authenticate and deliver a Security that does
not bear the Legend.  If the Legend is
removed from the face of a Security and the Security is subsequently held by an
Affiliate of the Company, the Legend shall be reinstated.

 

(b)           A Global Security may not be transferred, in whole or in part, to any
Person other than the Depositary or a nominee or any successor thereof, and no
such transfer to any such other Person may be registered; provided
that the foregoing shall not prohibit any transfer of a Security that is issued
in exchange for a Global Security but is not itself a Global Security.  No transfer of a Security to any Person shall
be effective under this Indenture or the Securities unless and until such
Security has been registered in the name of such Person.  Notwithstanding any other provisions of this
Indenture or the Securities, transfers of a Global Security, in whole or in
part, shall be made only in accordance with this Section 2.12.

 

(c)           Subject to Section 2.12(b), every Security shall be subject to the
restrictions on transfer provided in the legend set forth on the forms of
Securities attached as Exhibit A.

 

(d)           Removed

 

As
used in Sections 2.12(c), the term “transfer” encompasses any sale, pledge,
transfer, hypothecation or other disposition of any Security.

 

(e)           The provisions below shall apply only to Global Securities:

 

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

 

(2)           Notwithstanding any other provisions of this Indenture or the Securities,
a Global Security shall not be exchanged in whole or in part for a Security
registered, and no transfer of a Global Security in whole or in part shall be
registered in the name of any Person other than the Depositary or one or more
nominees thereof; provided that a Global Security may be exchanged for
securities registered in the names of any person designated by the Depositary
in the event that (A) the Depositary has notified the Company that it is
unwilling or unable to continue as Depositary for such Global Security or such
Depositary has ceased to be a “clearing agency” registered under the Exchange
Act, and a successor Depositary is not appointed by the Company within 90 days
after receiving such notice or becoming aware that the Depositary has ceased to
be a “clearing agency,” or (B) an Event of Default has occurred and is
continuing with respect to the Securities. 
Any Global Security exchanged pursuant to subclause (A) above shall
be so exchanged in whole and not in part, and any Global Security exchanged
pursuant to subclause (B) above may be exchanged in whole or from time to
time in part as directed by the Depositary. 
Any Security issued in exchange for a Global Security or any portion 

 

18

 

thereof
shall be a Global Security; provided further that any such Security so issued
that is registered in the name of a Person other than the Depositary or a
nominee thereof shall not be a Global Security.

 

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

 

(4)           Subject to clause (6) of this Section 2.12(e), the registered
Holder may grant proxies and otherwise authorize any Person, including Agent
Members and Persons that may hold interests through Agent Members, to take any
action which a Holder is entitled to take under this Indenture or the
Securities.

 

(5)           In the event of the occurrence of any of the events specified in clause
(2) of this Section 2.12(e), the Company will promptly make available
to the Trustee a reasonable supply of Certificated Securities in definitive,
fully registered form, without interest coupons.

 

(6)           Neither Agent Members nor any other Persons on whose behalf Agent Members
may act shall have any rights under this Indenture with respect to any Global
Security registered in the name of the Depositary or any nominee thereof, or
under any such Global Security, and the Depositary or such nominee, as the case
may be, may be treated by the Company, the Trustee and any agent of the Company
or the Trustee as the absolute owner and Holder of such Global Security for all
purposes whatsoever.  Notwithstanding the
foregoing, nothing herein shall prevent the Company, the Trustee or any agent
of the Company or the Trustee from giving effect to any written certification,
proxy or other authorization furnished by the Depositary or such nominee, as
the case may be, or impair, as between the Depositary, its Agent Members and
any other Person on whose behalf an Agent Member may act, the operation of
customary practices of such Persons governing the exercise of the rights of a
Holder of any Security.

 

(7)           At such time as all interests in a Global Security have been converted,
canceled or exchanged for Securities in certificated form, such Global Security
shall, upon receipt thereof, be cancelled by the Trustee in accordance with
standing procedures and instructions existing between the Depositary and the
Securities Custodian, subject to Section 2.11 of this Indenture.  At any time prior to such cancellation, if
any interest in a 

 

19

 

Global
Security is converted, canceled or exchanged for Securities in certificated
form, the principal amount of such Global Security shall, in accordance with
the standing procedures and instructions existing between the Depositary and
the Securities Custodian, be appropriately reduced, and an endorsement shall be
made on such Global Security, by the Trustee or the Securities Custodian, at
the direction of the Trustee, to reflect such reduction.

 

(f)            Removed.

 

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

 

ARTICLE 3

REPURCHASE

 

Section 3.01.          Repurchase at Option of Holders upon a Change
in Control.

 

(a)           If a Change in Control occurs at any time, a Holder of Securities shall
have the right to require the Company to repurchase such Holder’s Securities,
in whole or in part (in principal amounts of $1,000 or an integral multiple
thereof) for cash equal to the Change in Control Purchase Price, subject to
satisfaction by or on behalf of the Holder of the requirements set forth below.

 

(b)           Within 20 days after the occurrence of a Change in Control, the Company
shall notify the Holders and the Trustee of the Change in Control and of the
repurchase right arising as a result of the Change in Control (the “Company
Notice”).  The notice shall include a
form of Change in Control Purchase Notice to be completed by the Holder and
shall state:

 

(a)           briefly, the events causing a Change in Control and the date of such
Change in Control;

 

(b)           the date by which the Change in Control Purchase Notice must be delivered
to the Paying Agent;

 

(c)           the date on which the Company will repurchase Securities in connection
with a Change in Control, which must be not less than 15 days nor more than 45
days after the date of the Company Notice (such date, the “Change in Control
Purchase Date”);

 

(d)           the Change in Control Purchase Price;

 

20

 

(e)           the name and address of the Trustee,
the Paying Agent and the Conversion Agent;

 

(f)            that Securities in respect of which
a Change in Control Purchase Notice is provided by a Holder shall not be
convertible unless such Holder validly withdraws such Change in Control
Purchase Notice in accordance with the provisions of this Section 3.01;

 

(g)           that Securities must be surrendered
to the Paying Agent to collect payment of the Change in Control Purchase Price;

 

(h)           that the Change in Control Purchase
Price for any Security as to which a Change in Control Purchase Notice has been
duly given will be paid within two Business Days after the later of the Change
in Control Purchase Date or the time at which such Securities are surrendered
for repurchase;

 

(i)            that, unless the Company defaults in
making payment of the Change in Control Purchase Price, interest on Securities
surrendered for repurchase will cease to accrue on and after the Change in
Control Purchase Date; and

 

(j)            the CUSIP number of the Securities.

 

The
Company shall also disseminate a press release through Dow Jones &
Company, Inc. or Bloomberg Business News announcing the occurrence of such
Change in Control or publish such information in the Wall Street Journal or
another newspaper of general circulation in The City of New York or on the
Company’s website, or through such other public medium as the Company shall
deem appropriate at such time.

 

(c)           A Holder may exercise its rights
specified in this Section 3.01 upon delivery of a written notice of such
Holder’s exercise of its repurchase right (a “Change in Control Purchase Notice”)
to the Trustee (or any Paying Agent) at any time prior to the close of business
on the third Business Day prior to the Change in Control Purchase Date,
stating:

 

(a)           if such Securities are in
certificated form, the certificate number(s) of the Securities which the
Holder will deliver to be repurchased;

 

(b)           the portion of the principal amount
of the Securities to be repurchased, in multiples of $1,000, provided that the
remaining principal amount of Securities is in an authorized denomination; and

 

(c)           that such Security shall be
repurchased pursuant to the applicable provisions hereof and of the Securities.

 

The
Trustee (or any Paying Agent) shall promptly notify the Company in writing of
the receipt by it of any Change in Control Purchase Notice.

 

Book-entry
transfer of Securities in book-entry form in compliance with the Applicable
Procedures or delivery of Securities in certificated form (together with all
necessary

 

21

 

endorsements)
to the Paying Agent on or after the Change in Control Purchase Date at the
offices of the Paying Agent shall be a condition to the receipt by the Holder
of the Change in Control Purchase Price therefor.  Holders electing to require the Company to
repurchase Securities must effect such transfer or delivery to the Paying Agent
prior to the Change in Control Purchase Date to receive payment of the Change
in Control Purchase Price on or within two Business Days after the Change in
Control Purchase Date.  The Company shall
pay the Change in Control Purchase Price within two Business Days after the
later of the Change in Control Purchase Date or the time of such transfer or
delivery of the Securities.

 

(d)           A Change in Control Purchase Notice
may be withdrawn in whole or in part by a Holder by means of a written notice
of withdrawal delivered to the office of the Paying Agent prior to the close of
business on the third Business Day prior to the Change in Control Purchase Date
specifying:

 

(a)           the Holder’s name;

 

(b)           the principal amount of Securities in
respect of which the Change in Control Purchase Notice is being withdrawn,
which must be an integral multiple of $1,000;

 

(c)           if the Securities subject to the
notice of withdrawal are in certificated form, the certificate number(s) of all
Securities subject to the notice of withdrawal; and

 

(d)           the principal amount of Securities,
if any, that remains subject to the Change in Control Purchase Notice, which
must be an integral multiple of $1,000.

 

If
Securities subject to the notice of
withdrawal are in book-entry form, the above notices must also comply with the
Applicable Procedures.

 

(e)           On or before 10:00 a.m. (New
York City time) on the Change in Control Purchase Date, the Company shall
deposit with the Paying Agent money sufficient to pay the aggregate Change in
Control Purchase Price of the Securities to be purchased pursuant to this Section 3.01.  If the Paying Agent holds, in accordance with
the terms of the Indenture, money sufficient to pay the Change in Control
Purchase Price of such Securities on the Change in Control Purchase Date, then,
on and after such date, such Securities shall cease to be Outstanding and
interest on such Securities shall cease to accrue and all rights of the Holders
of such Securities shall terminate (other than the right to receive the Change
in Control Purchase Price after delivery or transfer of the Securities).  Such will be the case whether or not book
entry transfer of the Securities in book entry form is made and whether or not
Securities in certificated form, together with the necessary endorsements, are
delivered to the Paying Agent.

 

(f)            Notwithstanding the foregoing, no
Securities may be repurchased by the Company in accordance with the provisions
of this Section 3.01 if there has occurred and is continuing an Event of
Default with respect to the Securities (other than a default in the payment of
the Change in Control Purchase Price).

 

22

 

(g)           The Paying Agent will promptly return
to the respective Holders thereof any Securities with respect to which a Change
of Control Purchase Notice has been withdrawn in compliance with this
Indenture.

 

(h)           If a Change of Control Purchase Date
falls after a Regular Record Date and on or before the related Interest Payment
Date, then interest on the Securities payable on such Interest Payment Date
will be payable to the Holders in whose names the Securities are registered at
the close of business on such Regular Record Date.

 

Section 3.02.          Repurchase
at Option of Holders on Certain Dates.

 

(a)           A Holder of Securities shall have the
right to require the Company to repurchase such Holder’s Securities, in whole
or in part (in principal amounts of $1,000 or an integral multiple thereof), on
each of November 15, 2014, November 15, 2016, November 15, 2019
and  November 15, 2024 (each,
an “Optional Repurchase Date”) for cash equal to 100% of the principal amount
of the Securities to be repurchased plus accrued but unpaid interest to but
excluding the Optional Repurchase Date (such amount, the “Optional Repurchase
Price”), subject to satisfaction by or on behalf of the Holder of the
requirements set forth below.

 

(b)           On or before the 20th Business Day
prior to each Optional Repurchase Date, the Company shall provide a written
notice by first class mail to the Trustee, any Paying Agent and all Holders
(and to beneficial owners as required by applicable law).  The notice shall include a form of Optional
Repurchase Notice to be completed by the Holder and shall state:

 

(1)           the date by which the Optional
Repurchase Notice must be delivered to the Paying Agent;

 

(2)           the Optional Repurchase Date;

 

(3)           the Optional Repurchase Price;

 

(4)           the name and address of the Trustee,
the Paying Agent and the Conversion Agent;

 

(5)           that Securities must be surrendered
to the Paying Agent to collect payment of the Optional Repurchase Price;

 

(6)           that the Optional Repurchase Price
for any Security as to which an Optional Repurchase Notice has been duly given
will be paid within two Business Days after the later of the Optional
Repurchase Date or the time at which such Securities are surrendered for
repurchase;

 

(7)           that, unless the Company defaults in
making payment of the Optional Repurchase Price, interest on Securities
surrendered for repurchase will cease to accrue on and after the Optional
Repurchase Date;

 

(8)           that Securities in respect of which
an Optional Repurchase Notice is provided by a Holder shall not be convertible
in accordance with their terms even if

 

23

 

otherwise
convertible unless such Holder validly withdraws such Optional Repurchase
Notice in accordance with the provisions of this Section 3.02; and

 

(9)           the CUSIP number of the Securities.

 

The
Company shall also disseminate a press release through Dow Jones &
Company, Inc. or Bloomberg Business News containing the information
specified in such notice or publish that information in the Wall Street Journal
or another newspaper of general circulation in The City of New York or on the
Company’s website, or through other public medium as the Company deems
appropriate.

 

(c)           A Holder may exercise its rights
specified in this Section 3.02 upon delivery of a written notice of
repurchase (an “Optional Repurchase Notice”) to the Paying Agent during the
period beginning at any time from the opening of business on the date that is
20 Business Days prior to the applicable Optional Repurchase Date until the
close of business on the third Business Day prior to such Optional Repurchase
Date, stating:

 

(1)           if such Securities are in
certificated form, the certificate number(s) of the Securities which the
Holder will deliver to be repurchased;

 

(2)           the portion of the principal amount
of the Securities to be repurchased, in integral multiples of $1,000, provided
that the remaining principal amount of Securities is in an authorized
denomination; and

 

(3)           that such Securities shall be
repurchased pursuant to the applicable provisions hereof and the Securities.

 

The
Paying Agent shall promptly notify the Company in writing of the receipt by it
of any Optional Repurchase Notice.

 

(d)           Book entry transfer of Securities in
book entry form in compliance with the Applicable Procedures or delivery of
Securities in certificated form, together with all necessary endorsements, to
the Paying Agent on or after the Optional Repurchase Date at the offices of the
Paying Agent shall be a condition to the receipt by the Holder of the Optional
Repurchase Price.  Holders electing to
require the Company to repurchase Securities must effect such transfer or
delivery to the Paying Agent prior to the Optional Repurchase Date to receive
payment of the Optional Repurchase Price on or within two Business Days after
the Optional Repurchase Date.  The
Company shall pay the Optional Repurchase Price within two Business Days after
the later of the Optional Repurchase Date or the time of such transfer or
delivery of the Securities.

 

(e)           An Optional Repurchase Notice may be
withdrawn in whole or in part by a Holder by means of a written notice of
withdrawal delivered to the office of the Paying Agent prior to the close of
business on the third Business Day prior to the Optional Repurchase Date
specifying:

 

(1)           the Holder’s name;

 

24

 

(2)           the principal amount of Securities in
respect of which the Optional Repurchase Notice is being withdrawn, which must
be an integral multiple of $1,000;

 

(3)           if the Securities subject to the notice
of withdrawal are in certificated form, the certificate number(s) of all
Securities subject to the notice of withdrawal; and

 

(4)           the principal amount of Securities,
if any, that remains subject to the Optional Repurchase Notice, which must be
an integral multiple of $1,000.

 

If
Securities subject to the notice of withdrawal are in book-entry form, the
above notices must also comply with the Applicable Procedures.

 

(f)            On or before 10:00 a.m. (New
York City time) on the Optional Repurchase Date, the Company shall deposit with
the Paying Agent money sufficient to pay the aggregate Optional Repurchase
Price of the Securities to be purchased pursuant to this Section 3.02.  If the Paying Agent holds, in accordance with
the terms of the Indenture, money sufficient to pay the Optional Repurchase
Price of such Securities on the Optional Repurchase Date, then on and after
such date, such Securities shall cease to be Outstanding and interest on such
Securities shall cease to accrue, and all rights of the Holder of such
Securities shall terminate (other than the right to receive the Optional
Repurchase Price after delivery or transfer of the Securities).  Such will be the case whether or not book
entry transfer of the Securities in book entry form is made and whether or not
Securities in certificated form, together with the necessary endorsements, are
delivered to the Paying Agent.

 

(g)           Notwithstanding the foregoing, no
Securities may be purchased by the Company in accordance with the provisions of
this Section 3.02 if there has occurred and is continuing an Event of
Default with respect to the Securities (other than a default in the payment of
the Optional Repurchase Price).

 

Section 3.03.          Repayment
to the Company.  To the extent that
the aggregate amount of cash deposited by the Company pursuant to Section 3.01
or 3.02 exceeds the aggregate Change in Control Purchase Price or Optional
Repurchase Price, as applicable, of the Securities or portions thereof that the
Company is obligated to purchase, then promptly after the Change in Control
Purchase Date or Optional Repurchase Date, as applicable, the Trustee or a
Paying Agent, as the case may be, shall return any such excess cash to the
Company.

 

Section 3.04.          Securities
Purchased in Part.  Any Security that
is to be purchased only in part shall be surrendered at the office of a Paying
Agent, and promptly after the Change in Control Purchase Date or Optional
Repurchase Date, as applicable, the Company shall execute and the Trustee shall
authenticate and deliver to the Holder of such Security, without service
charge, a new Security or Securities, of such authorized denomination or
denominations as may be requested by such Holder (which must be equal to $1,000
principal amount or any integral thereof), in aggregate principal amount equal
to, and in exchange for, the portion of the principal amount of the Security so
surrendered that is not purchased.

 

Section 3.05.          Compliance
with Securities Laws upon Purchase of Securities.  In connection with any offer to purchase of
Securities under Section 3.01 or 3.02, the Company shall (a) comply
with Rule 13e-4 and Rule 14e-1 (or any successor to either such
Rule), and any

 

25

 

other
tender offer rules, if applicable, under the Exchange Act, (b) file the
related Schedule TO (or any successor or similar schedule, form or report) if
required under the Exchange Act, and (c) otherwise comply with all federal
and state securities laws in connection with such offer to purchase or purchase
of Securities, all so as to permit the rights of the Holders and obligations of
the Company under Sections 3.01 and 3.02 to be exercised in the time and in the
manner specified therein.  To the extent
that compliance with any such laws, rules and regulations would result in
a conflict with any of the terms hereof, this Indenture is hereby modified to
the extent required for the Company to comply with such laws, rules and
regulations.

 

Section 3.06.          Purchase
of Securities in Open Market.  The
Company may repurchase Securities in the open market, at any time, by tender at
any price or by negotiated transactions. 
The Company shall surrender any Security purchased by the Company to the
Trustee for cancellation.  Any securities
surrendered to the Trustee for cancellation may not be reissued or resold by
the Company and will be canceled promptly in accordance with Section 2.11.

 

ARTICLE 4

CONVERSION

 

Section 4.01.          Conversion
Privilege and Conversion Rate.

 

(a)           Upon compliance with the provisions
of this Article 4, at the option of the Holder thereof, any Security or
portion thereof that is an integral multiple of $1,000 principal amount may be
converted into the consideration provided for in Section 4.13 in the
following circumstances:

 

(1)           during any calendar quarter beginning
after June 30, 2010, and only during such calendar quarter, if, as of the
last day of the immediately preceding calendar quarter, the Closing Sale Price
per share of the Common Stock for at least 20 Trading Days in the period of the
30 consecutive Trading Days ending on the last Trading Day of such preceding
calendar quarter was more than 130% of the Conversion Price in effect on the
applicable Trading Day;

 

(2)           if the Company distributes to all
holders of Common Stock rights entitling them to purchase, for a period
expiring within 45 days of the date of issuance, shares of Common Stock at less
than the Closing Sale Price of the Common Stock on the Trading Day ending on
the date immediately preceding the first public announcement of the distribution;

 

(3)           if the Company distributes to all
holders of Common Stock, assets, debt securities (or other evidences of
Indebtedness) or rights to purchase the Company’s securities, which
distribution, together with all other distributions within the preceding twelve
months, has a per share value, as determined by the Company’s Board of
Directors, exceeding 15% of the average of 
the Closing Sale Prices of the Common Stock for the five consecutive
Trading Days ending on the date immediately preceding the first public
announcement of  such distribution;

 

26

 

(4)           if an event specified in any of
clauses (1) through (4) of the definition of Change in Control
occurs;

 

(5)           at any time during the period
beginning on October 15, 2029 and ending at the close of business on the
second Business Day immediately preceding the Final Maturity Date;

 

(6)           during any five Business Day period
after any five consecutive Trading Day period in which the Trading Price per
$1,000 principal amount of Securities, as determined following a request by a
Holder in accordance with the procedures described below in Section 4.01(d)(ii),
for each day of that period was less than 98% of the product of (i) the
Closing Sale Price of the Common Stock for each day in that period and (ii) the
Applicable Conversion Rate;

 

(7)           a Holder may surrender for conversion
any of the Securities called for redemption at any time prior to the close of
business on the third Business Day prior to the Redemption Date.  The right to convert Securities pursuant to
this clause (7) will expire after the close of business on the third
Business Day prior to the Redemption Date unless the Company defaults in making
the payment due upon redemption.  A
Holder may convert fewer than all of its Securities so long as the Securities
converted are an integral multiple of $1,000 principal amount and the remaining
principal amount of Securities is in an authorized denomination; or

 

(8)           if the Common Stock ceases to be
listed on a U.S. national or regional securities exchange, during the period
beginning on the date the Common Stock was delisted and ending on the close of
business on the 30th Business Day after such date.  The Company shall notify Holders and the
Trustee of the delisting of the Common Stock within five days following the
delisting.

 

(b)           In the case of a distribution
contemplated by clauses (2) and (3) of Section 4.01(a), the
Company shall notify Holders and the Trustee at least 20 days prior to the Ex-
Dividend Date for such distribution (the “Distribution Notice”).  Once the Company has given the Distribution
Notice, Holders may surrender their Securities for conversion at any time until
the earlier of the close of business on the last Business Day preceding the
Ex-Dividend Date or the Company’s announcement that such distribution will not
take place.  In the event of a
distribution contemplated by clauses (2) and (3) of Section 4.01(a),
Holders may not convert the Securities if the Holders will otherwise
participate in such distribution to the same extent as if the Securities had
been converted into shares of Common Stock immediately prior to the time at
which eligibility is determined for such transaction without converting their
Securities, other than through adjustments contemplated by
Section 4.06.  The Company will
provide written notice to the Conversion Agent as soon as reasonably
practicable of any anticipated or actual event or transaction that will cause
or causes the Securities to become convertible pursuant to clause (2) or (3) of
Section 4.01(a).

 

(c)           In the case of a transaction
contemplated by clause (4) of Section 4.01(a), the Company will
notify the Holders and Trustee as promptly as practicable following the date
the Company publicly announces the Change in Control, but in no event will such
public

 

27

 

announcement be less than
five Business Days prior to the Change in Control Effective Date.  Holders may surrender Securities for
conversion at any time from and after the Change in Control Effective Date
until the close of business on the 30th Business Day following the Change in Control
Effective Date.

 

(d)           (1)  For each calendar quarter
of the Company, beginning with the calendar quarter ending June 30, 2010,
the Company will determine, on the first Business Day following the last
Trading Day of such calendar quarter, whether the Securities are convertible
pursuant to clause (1) of Section 4.01(a), and, if so, will notify
the Holders, the Trustee and the Conversion Agent in writing within five
Business Days of that determination. 
Such notice will inform Holders that they have until the end of that
current quarter to surrender their Securities for conversion.  Upon request of the Conversion Agent, the
Company shall provide, or cause to be provided to, the Conversion Agent the
Closing Sale Price of the Common Stock for the 30 consecutive Trading Days
ending on the last Trading Day of the preceding calendar quarter.

 

(2) 
The Company shall have no obligation to determine the Trading Price of the
Securities and whether the Securities are convertible pursuant to clause (6) of
Section 4.01(a) unless a Holder of Securities provides the Company
with reasonable evidence that the Trading Price per $1,000 principal amount of
Securities would be less than 98% of the product of the Closing Sale Price of
the Common Stock and the Applicable Conversion Rate over the relevant
period.  At such time, the Company shall
determine the Trading Price of the Securities beginning on the next Trading Day
and on each successive Trading Day until the Trading Price per $1,000 principal
amount of the Securities is greater than 98% of the product of the Closing Sale
Price of the Common Stock and the Applicable Conversion Rate.  The Company shall notify the Trustee of the
Trading Price promptly following its determination.

 

(e)           If a Security is submitted or
presented for purchase upon a Change of Control pursuant to Article 3,
such conversion right shall terminate at the close of business on the Business
Day immediately preceding the Change in Control Purchase Date for such Security
(unless the Company shall fail to make the Change in Control Purchase Price
payment when due in accordance with Article 3, in which case the
conversion right shall terminate at the close of business on the date such
failure is cured and such Security is redeemed or purchased, as the case may
be).  Securities in respect of which a
Change in Control Purchase Notice has been delivered may not be surrendered for
conversion pursuant to this Article 4 prior to a valid withdrawal of such
Change of Control Purchase Notice in accordance with the provisions of Article 3.

 

(f)            Provisions of this Indenture that
apply to conversion of all of a Security also apply to conversion of a portion of
a Security.

 

(g)           If a Change of Control occurs with
respect to an event specified in any of clauses (1) through (4) of
the definition thereof, then the Conversion Rate per $1,000 principal amount of
Securities otherwise in effect in respect of Securities that are converted
during the period beginning on the Change of Control Effective Date and ending
at the close of business on the 30th Business Day following such date shall be
increased by the amount, if any, determined by the Company by reference to the
table below, based on the effective date of the Change of Control and the Stock
Price of such Change of Control; provided that
if the Stock Price or

 

28

 

effective date of the
Change of Control is not set forth on the table:  (i) if the actual Stock Price on the
Change of Control Effective Date is between two Stock Prices on the table or
the actual Change of Control Effective Date is between two dates on the table,
the amount of the Conversion Rate adjustment will be determined by a
straight-line interpolation between the adjustment amounts set forth for the
two Stock Prices and the two dates on the table based on a 365-day year, as
applicable, (ii) if the Stock Price on the Change in Control Effective
Date exceeds $12.50 per share, subject to adjustment as set forth herein, no
adjustment to the applicable Conversion Rate will be made, and (iii) if
the Stock Price on the Change in Control Effective Date is less than $8.27 per
share, subject to adjustment as set forth herein, no adjustment to the
applicable Conversion Rate will be made. 
If holders of the Common Stock receive only cash in the Change of
Control, the Stock Price shall be the cash amount paid per share of the Common
Stock in connection with the Change of Control. 
Otherwise, the Stock Price shall be equal to the average Closing Sale
Prices of the Common Stock for each of the 10 Trading Days immediately
preceding, but not including, the applicable Change in Control Effective Date.

 

The
following table shows the amount, if any, by which the applicable Conversion
Rate will increase for each Stock Price and Change in Control Effective Date
set forth below:

 

	
  Effective
  date

  	
   

  	
  $8.27

  	
   

  	
  $8.50

  	
   

  	
  $9.00

  	
   

  	
  $9.50

  	
   

  	
  $10.00

  	
   

  	
  $10.50

  	
   

  	
  $11.00

  	
   

  	
  $11.50

  	
   

  	
  $12.00

  	
   

  	
  $12.50

  	
   

  
	
  August 3, 2010

  	
   

  	
  18.67

  	
   

  	
  16.66

  	
   

  	
  12.86

  	
   

  	
  9.74

  	
   

  	
  7.17

  	
   

  	
  5.09

  	
   

  	
  3.42

  	
   

  	
  2.11

  	
   

  	
  1.11

  	
   

  	
  0.39

  	
   

  
	
  November 15, 2010

  	
   

  	
  18.67

  	
   

  	
  17.68

  	
   

  	
  13.76

  	
   

  	
  10.53

  	
   

  	
  7.88

  	
   

  	
  5.71

  	
   

  	
  3.97

  	
   

  	
  2.58

  	
   

  	
  1.52

  	
   

  	
  0.74

  	
   

  
	
  November 15, 2011

  	
   

  	
  18.67

  	
   

  	
  18.68

  	
   

  	
  14.52

  	
   

  	
  11.09

  	
   

  	
  8.29

  	
   

  	
  6.01

  	
   

  	
  4.18

  	
   

  	
  2.73

  	
   

  	
  1.62

  	
   

  	
  0.80

  	
   

  
	
  November 15, 2012

  	
   

  	
  18.67

  	
   

  	
  18.86

  	
   

  	
  14.47

  	
   

  	
  10.90

  	
   

  	
  8.01

  	
   

  	
  5.69

  	
   

  	
  3.85

  	
   

  	
  2.43

  	
   

  	
  1.36

  	
   

  	
  0.61

  	
   

  
	
  November 15, 2013

  	
   

  	
  18.67

  	
   

  	
  17.29

  	
   

  	
  12.70

  	
   

  	
  9.05

  	
   

  	
  6.21

  	
   

  	
  4.03

  	
   

  	
  2.41

  	
   

  	
  1.24

  	
   

  	
  0.49

  	
   

  	
  0.10

  	
   

  
	
  November 21, 2014

  	
   

  	
  18.67

  	
   

  	
  14.74

  	
   

  	
  8.20

  	
   

  	
  2.35

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  

 

The
Stock Prices set forth in the first column of the table above will be adjusted
as of any date on which the Conversion Rate of the Securities is adjusted,
other than as a result of an adjustment of the Conversion Rate by virtue of the
provisions of this Section 4.01(g). 
The adjusted Stock Prices will equal the Stock Prices applicable
immediately prior to such adjustment multiplied by a fraction, the numerator of
which is the Conversion Rate immediately prior to the adjustment and the
denominator of which is the Conversion Rate as so adjusted.  The Conversion Rate adjustment amounts set
forth in the table above will be adjusted in the same manner as the Conversion
Rate as set forth in Section 4.06 hereof.

 

Notwithstanding
the foregoing paragraph, in no event will the Conversion Rate exceed 121.58 per
$1,000 principal amount of Securities, subject to adjustment in the manner set
forth in Section 4.06(a) hereof.

 

(h)           Except as set forth in Section 4.02(c),
by delivering the amount of cash and/or the number of shares of Common Stock
issuable on conversion to the Trustee, the Company will be deemed to have
satisfied its obligation to pay the principal amount of the Securities so
converted and its obligation to pay accrued and unpaid interest, if any,
attributable to the period from the most recent Interest Payment Date through
the Conversion Date (which amount will be deemed paid in full rather than
cancelled, extinguished or forfeited).

 

29

 

Section 4.02.          Conversion
Procedure.

 

(a)           To convert a Security, a Holder must (1) complete
and manually sign the conversion notice on the back of the Security and deliver
such notice to a Conversion Agent, (2) surrender the Security to a
Conversion Agent, (3) furnish appropriate endorsements and transfer
documents if required by a Conversion Agent, (4) pay all transfer or
similar taxes, if required pursuant to Section 4.04, and (5) pay
funds equal to interest payable on the next Interest Payment Date, if
required.  The date on which the Holder
satisfies all of those requirements is the “Conversion Date.”  Upon the conversion of a Security, the
Company will pay the cash and deliver the shares of Common Stock, as
applicable, as promptly as practicable after the later of the Conversion Date
and the date that all calculations necessary to make such payment and delivery
have been made (such calculations shall be made in accordance with Section 4.13(b) hereof),
but in no event later than five Business Days after the later of those
dates.  Anything herein to the contrary
notwithstanding, in the case of Global Securities, conversion notices may be
delivered and such Securities may be surrendered for conversion in accordance
with the Applicable Procedures as in effect from time to time.

 

(b)           The person in whose name the shares
of Common Stock are issuable upon conversion shall be deemed to be a Holder of
record of such Common Stock on the later of (i) the Conversion Date, (ii) the
expiration of the period in which the Company may elect to deliver cash in lieu
of shares of common stock or (iii) if the Company elects to deliver cash
in lieu of some, but not all, of such shares of Common Stock, the date on which
the amount of cash issuable per Security has been determined; provided, however, that
no surrender of a Security on any Conversion Date when the stock transfer books
of the Company shall be closed shall be effective to constitute the person or
persons entitled to receive the shares of Common Stock upon conversion as the
record Holder or Holders of such shares of Common Stock on such date, but such
surrender shall be effective to constitute the person or persons entitled to
receive such shares of Common Stock as the record Holder or Holders thereof for
all purposes at the close of business on the next succeeding day on which such
stock transfer books are open; provided further that such conversion shall be
at the Conversion Rate in effect on the Conversion Date as if the stock
transfer books of the Company had not been closed.  Upon conversion of a Security, such person
shall no longer be a Holder of such Security. 
Except as set forth in this Indenture, no payment or adjustment will be
made for dividends or distributions declared or made on shares of Common Stock
issued upon conversion of a Security prior to the issuance of such shares.

 

(c)           Holders of Securities surrendered for
conversion (in whole or in part) during the period from the close of business
on any Regular Record Date to the opening of business on the next succeeding
Interest Payment Date will receive the semi annual interest payable on such
Securities on the corresponding Interest Payment Date notwithstanding the
conversion.  However, such Holders must
deliver to the Conversion Agent an amount in cash equivalent to such payment in
order to convert their Securities; provided, however, that no such payment shall be required to be made (1) if
such Securities have been called for redemption on a Redemption Date that is
after such Regular Record Date and on or prior to such Interest Payment Date, (2) if
a Change in Control Redemption Date has been scheduled that is after such
Regular Record Date and on or prior to such Interest Payment Date, or (3) with
respect to overdue interest, if any overdue interest exists at the time of
conversion with respect to such Securities. 
Except as

 

30

 

otherwise provided in this
Section 4.02(c), no payment or adjustment will be made for accrued
interest on a converted Security.

 

(d)           Subject to Section 4.02(c), nothing in this Section shall
affect the right of a Holder in whose name any Security is registered at the
close of business on a Regular Record Date to receive the interest payable on
such Security on the related Interest Payment Date in accordance with the terms
of this Indenture and the Securities.  If
a Holder converts more than one Security at the same time, the amount of cash
to be paid and the number of shares of Common Stock issuable upon the
conversion, if any (and the amount of any cash in lieu of fractional shares
pursuant to Section 4.03), shall be based on the aggregate principal
amount of all Securities so converted.

 

(e)           In the case of any Security which is converted in part only, upon such
conversion the Company shall execute and the Trustee shall authenticate and
deliver to the Holder thereof, without service charge, a new Security or
Securities of authorized denominations in an aggregate principal amount equal
to, and in exchange for, the unconverted portion of the principal amount of
such Security.  A Security may be
converted in part, but only if the principal amount of such part is an integral
multiple of $1,000 and the principal amount of such Security to remain
outstanding after such conversion is equal to $1,000 or any integral multiple
of $1,000 in excess thereof.

 

Section 4.03.          Fractional Shares.  The Company will not issue fractional shares
of Common Stock upon conversion of Securities. 
If more than one Security shall be surrendered for conversion at one
time by the same Holder, the number of full shares that shall be issuable upon
conversion shall be computed on the basis of the aggregate principal amount of
the Securities (or specified portions thereof to the extent permitted hereby)
so surrendered.  In lieu of any
fractional shares, the Company will pay an amount in cash based upon the
Average Price.

 

Section 4.04.          Taxes on Conversion.  If a Holder converts a Security, the Company
shall pay any transfer, stamp or similar taxes or duties related to the issue
or delivery of shares of Common Stock upon such conversion.  The Company shall also pay any such tax with
respect to cash received in lieu of fractional shares.  The Holder shall pay any such tax which is
due because the Holder requests the shares to be issued in a name other than
the Holder’s name.  The Conversion Agent
may refuse to deliver the certificate representing the Common Stock being
issued in a name other than the Holder’s name until the Conversion Agent
receives a sum sufficient to pay any tax which will be due because the shares
are to be issued in a name other than the Holder’s name.  Nothing herein shall preclude any tax
withholding required by law or regulation.

 

Section 4.05.          Company to Provide Stock.

 

(a)           The Company shall, prior to issuance of any Securities hereunder, and
from time to time as may be necessary, reserve, out of its authorized but
unissued Common Stock, a sufficient number of shares of Common Stock to permit
the conversion of all Outstanding Securities into shares of Common Stock.

 

31

 

(b)           All shares of Common Stock delivered upon conversion of the Securities
shall be newly issued shares, shall be duly authorized, validly issued, fully
paid and nonassessable and shall be free from preemptive or similar rights of
any securityholder of the Company and free of any lien or adverse claim as the result
of any action by the Company.

 

(c)           The Company will endeavor promptly to comply with all federal and state
securities laws regulating the offer and delivery of shares of Common Stock
upon conversion of Securities.

 

Section 4.06.          Adjustment of Conversion Rate.

 

(a)           The Company will adjust the Conversion Rate if the following events
occur:

 

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

 

CR1 = CR0 x    OS1   

OS0

 

where,

 

CR0                           =      the Conversion Rate in effect immediately prior to
the Ex-Dividend Date for such dividend or distribution, or the effective date
of such share split or share combination, as applicable;

 

CR1                           =      the new Conversion Rate in effect immediately after
the Ex-Dividend Date for such dividend or distribution, or the effective date
of such share split or share combination, as applicable;

 

OS0                           =      the number of shares of the Common Stock outstanding
immediately prior to the Ex-Dividend Date for such dividend or distribution, or
the effective date of such share split or share combination, as applicable; and

 

OS1                           =      the number of shares of the Common Stock outstanding
immediately after the Ex-Dividend Date for such dividend or distribution, as if
such dividend or distribution occurred at that time, or the effective date of
such share split or share combination, as applicable.

 

If
any dividend or distribution described in this clause (1) is declared but
not so paid or made, the new Conversion Rate shall be readjusted to the
Conversion Rate that would then be in effect if the dividend or distribution
had not been declared.

 

(2)           If the Company issues to all holders of Common Stock any rights,
warrants, options or other securities entitling them for a period of not more
than 45 days after the date of issuance thereof to subscribe for or purchase
shares of Common Stock, or issues to all holders of Common Stock securities
convertible into shares of Common

 

32

 

Stock for a period of not
more than 45 days after the date of issuance thereof, in either case at an
exercise price per share of Common Stock or a conversion price per share of
Common Stock less than the Closing Sale Price of the Common Stock on the
Business Day immediately preceding the time of announcement of such issuance,
the Conversion Rate will be adjusted based on the following formula:

 

CR1 = CR0 x    
  OS0 + X 

OS0 + Y

 

where,

 

CR0                           =      the Conversion Rate in effect immediately prior to
the Ex-Dividend Date for the distribution;

 

CR1                           =      the Conversion Rate in effect immediately after the
Ex-Dividend Date for the distribution;

 

OS0                           =      the number of shares of the Common Stock outstanding
immediately prior to the Ex-Dividend Date for the distribution;

 

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

 

Y                                        =      the number of shares of the Common Stock equal to
the quotient of (A) the aggregate price payable to exercise such rights,
warrants, options, other securities or convertible securities divided by (B) the
average of the Closing Sale Prices of the Common Stock for the 10 consecutive
Trading Days ending on the Business Day immediately preceding the date of
announcement for the issuance, the rights, warrants, options, other securities
or convertible securities.

 

For purposes of this paragraph (2), in determining whether any rights,
warrants, options, other securities or convertible securities entitle the
holders to subscribe for or purchase, or exercise a conversion right for,
shares of Common Stock at less than the applicable Closing Sale Price of the
Common Stock, and in determining the aggregate exercise or conversion price
payable for such Common Stock, there shall be taken into account any
consideration received by the Company for such rights, warrants, options, other
securities or convertible securities and any amount payable on exercise or
conversion thereof, with the value of such consideration, if other than cash,
to be determined by the Board of Directors of the Company.  If any right, warrant, option, other security
or convertible security described in this clause (2) is not exercised or
converted prior to the expiration of the exercisability or convertibility
thereof, the new Conversion Rate shall be readjusted to the Conversion Rate
that would then be in effect if such right, warrant, option, other security or
convertible security had not been so issued.

 

(3)           If the Company distributes shares of its capital stock, evidences of
indebtedness or other assets or property to all holders of the Common Stock,
excluding:

 

33

 

·                                          dividends, distributions,
rights, warrants, options, other securities or convertible securities referred
to in clause (1) or (2) above;

 

·                                          dividends or distributions
paid exclusively in cash; and

 

·                                          spin-offs described below in
this clause (3),

 

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

 

CR1 = CR0 x         SP0        

 SP0 – FMV

 

where,

 

CR0                           =      the Conversion Rate in effect immediately prior to
the Ex-Dividend Date for such distribution;

 

CR1                           =      the new Conversion Rate in effect immediately after
the Ex-Dividend Date for such distribution;

 

SP0                             =      the average of the Closing Sale Prices of the Common
Stock for the 10 consecutive Trading Days prior to the Business Day immediately
preceding the earlier of the record date or the Ex-Dividend Date for such
distribution; and

 

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

 

An
adjustment to the Conversion Rate made pursuant to the immediately preceding
paragraph shall become effective on the day immediately after the date fixed
for the determination of holders of our Common Stock entitled to receive such
distribution.

 

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

 

CR1 = CR0 x     FMV0 + MP0  

MP0

 

where,

 

CR0                           =      the Conversion Rate in effect immediately prior to
the 10th Trading Day immediately following and including the effective date of
the Spin-Off;

 

34

 

CR1                           =      the new Conversion Rate immediately after the 10th
Trading Day immediately following, and including, the effective date of the
Spin-Off;

 

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

 

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

 

An adjustment to the Conversion Rate made pursuant to the immediately
preceding paragraph will occur on the 11th Trading Day
from and including the effective date of the Spin-Off.  If any dividend or distribution described in
this paragraph (3) is declared but not paid or made, the new Conversion
Rate shall be readjusted to be the Conversion Rate that would then be in effect
if the dividend or distribution had not been declared.

 

(4)           If the Company makes any cash dividend or distribution in respect of any
month (without regard to when paid) to all holders of our common stock in an
aggregate amount that, together with other cash dividends or distributions made
in respect of such month, exceeds $0.08 (the “Reference Dividend”) per share,
the Conversion Rate will be adjusted based on the following formula:

 

CR1 = CR0 x    SP0         

SP0 – C

 

where,

 

CR0                           =      the Conversion Rate in effect immediately prior to
the Ex-Dividend Date for such distribution;

 

CR1                           =      the new Conversion Rate immediately after the
Ex-Dividend Date for such distribution;

 

SP0                             =      the average of the Closing Sale Prices of Common
Stock for the 10 consecutive Trading Days ending on the Trading Day prior to
the business day immediately preceding the earlier of the record date or the
day prior to the Ex Dividend Date for such distribution; and

 

C                                        =      the amount in cash per share that the Company
distributes to Holders of the Common Stock in respect of such month that
exceeds the Reference Dividend.

 

The
Reference Dividend shall be subject to adjustment on account of any of the
events set forth in clauses (1), (2) and (3) above and clause (5) below.  Any adjustment will be effected by
multiplying the Reference Dividend by a fraction, the numerator of which will
equal the Conversion Rate in effect immediately prior to the adjustment on
account of the event and the denominator of which will equal the Conversion
Rate as adjusted.

 

35

 

The
Reference Dividend shall also be appropriately adjusted to take into account
any changes in the frequency of payment of our regular dividend.

 

If any dividend or distribution described in this paragraph (4) is
declared but no so paid or made, the new Conversion Rate shall be readjusted to
the Conversion Rate that would then be in effect if the dividend or
distribution had not been declared.

 

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

 

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

SP1 x OS0

 

where,

 

CR0                           =      the Conversion Rate in effect immediately prior to
the date the tender or exchange offer expires;

 

CR1                           =      the new Conversion Rate immediately following the
date the tender or exchange offer expires;

 

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

 

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

 

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

 

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

 

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

 

Any adjustment to the Conversion Rate made pursuant to this paragraph
(5) shall become effective on the date immediately following the date the
tender or exchange offer expires.  If the
Company or one of its Subsidiaries is obligated to purchase shares of Common
Stock pursuant to any such tender or exchange offer but is permanently

 

36

 

prevented
by applicable law from effecting any such purchase or all such purchases are
rescinded, the new Conversion Rate shall be readjusted to be the Conversion
Rate that would be in effect if such tender or exchange offer had not been
made.

 

(b)           The Reference Dividend shall be adjusted (i) whenever the Conversion
Rate is adjusted pursuant to clauses (1) through (3) and (5) of Section 4.06(a),
by multiplying the dividend threshold amount at the time of calculation by a
fraction, the numerator of which is the Conversion Rate prior to adjustment and
the denominator of which is the Conversion Rate following such adjustment and
(2) as appropriate to take into account any change in the frequency of
payment of the Company’s dividend to holders of its Common Stock.

 

(c)           In addition to these adjustments, the Company may in its sole discretion
increase the Conversion Rate as the Company’s Board of Directors deems
advisable to avoid or diminish any income tax to Holders of the Common Stock
resulting from any dividend or distribution of capital stock (or rights to
acquire capital stock) or from any event treated as such for income tax
purposes.  The Company may also, from
time to time, to the extent permitted by applicable law, increase the
Conversion Rate by any amount for any period if the Company’s Board of
Directors has determined that such increase would be in the Company’s best
interests.  If the Company’s Board of
Directors makes that determination, it will be conclusive.  The Company will give Holders of Securities
and the Trustee at least 15 days’ prior notice of such an increase in the
Conversion Rate.

 

(d)           For purposes of this Section 4.06, “record date” shall mean, with
respect to any dividend, distribution or other transaction or event in which
the Holders of Common Stock have the right to receive any cash, securities or
other property or into which the Common Stock (or other applicable security) is
exchanged or converted into any combination of cash, securities or other
property, the date fixed for determination of shareholders entitled to receive
such cash, security or other property (whether or not such date is fixed by the
Board of Directors or by statute, contract or otherwise).

 

(e)           If the Company has in effect a rights plan while any Securities remain
Outstanding, Holders of Securities will receive, upon a conversion of
Securities in respect of which the Company has elected to deliver Net Shares,
in addition to such Net Shares, rights under the Company’s stockholder rights
agreement unless, prior to conversion, the rights have expired, terminated or
been redeemed or unless the rights have separated from the Common Stock.  If the rights provided for in the rights plan
adopted by the Company have separated from the Common Stock in accordance with
the provisions of the applicable stockholder rights agreement so that Holders
of Securities would not be entitled to receive any rights in respect of Common
Stock that the Company elects to deliver as Net Shares upon conversion of
Securities, the Conversion Rate will be adjusted at the time of separation as
if the Company had distributed to all holders of Common Stock capital stock,
evidences of indebtedness or other assets or property pursuant to paragraph (c)
above, subject to readjustment upon the subsequent expiration, termination or
redemption of the rights. In lieu of any such adjustment, the Company may amend
such applicable stockholder rights agreement to provide that upon a conversion
of Securities the Holders will receive, in addition to Common Stock that the
Company elects to deliver as Net Shares upon such conversion, the rights which
would have attached to such Common Stock if the rights had not become separated
from the Common Stock under such

 

37

 

applicable stockholder
rights agreement.  To the extent that the
Company adopts any future stockholder rights agreement, upon a conversion of
Securities in respect of which the Company elects to deliver Common Stock as
Net Shares, a Holder of Securities shall receive, in addition to such Common
Stock, the rights under the future stockholder rights agreement whether or not
the rights have separated from Common Stock at the time of conversion and no
adjustment will be made in accordance with paragraph (c) or otherwise.

 

(f)            Notwithstanding the provisions set forth in Section 4.06(a), in no
event shall the Conversion Rate exceed 121.58 per $1,000 principal amount of
Securities as a result of an adjustment pursuant to clause (4) or (5) of
Section 4.06(a), subject to adjustment in the manner set forth in clauses
(1) through (3) of Section 4.06(a).

 

Section 4.07.          No Adjustment.

 

(a)           No adjustment in the Conversion Rate shall be required if Holders may
participate in the transactions set forth in Section 4.06 above (to the
same extent as if the Securities had been converted into Common Stock
immediately prior to the time at which eligibility is determined for such
transactions) without converting the Securities held by such Holders.

 

(b)           No adjustment in the Conversion Rate shall be required unless such
adjustment would require an increase or decrease of at least 1% in the Conversion
Rate as last adjusted; provided, however, that any adjustments which would be
required to be made but for this Section 4.07(b) shall be carried
forward and taken into account in any subsequent adjustment. All calculations
under this Article 4 shall be made to the nearest cent or to the nearest
one-ten thousandth of a share, as the case may be, with one half cent and
0.00005 of a share, respectively, being rounded upward.

 

Section 4.08.          Notice of Adjustment.  Whenever the Conversion Rate is required to
be adjusted pursuant to this Indenture, the Company shall promptly mail to
Holders a notice of the adjustment and file with the Trustee an Officers’
Certificate briefly stating the facts requiring the adjustment and the manner
of computing it. Failure to mail such notice or any defect therein shall not
affect the validity of any such adjustment. 
Unless and until the Trustee shall receive an Officers’ Certificate
setting forth an adjustment of the Conversion Rate, the Trustee may assume
without inquiry that the Conversion Rate has not been adjusted and that the
last Conversion Rate of which it has knowledge remains in effect.

 

Section 4.09.          Notice of Certain Transactions.  In the event that there is a dissolution or
liquidation of the Company, the Company shall mail to Holders and file with the
Trustee a notice stating the proposed effective date.  The Company shall mail such notice at least
10 days before such proposed effective date. 
Failure to mail such notice or any defect therein shall not affect the
validity of any transaction referred to in this Section 4.09.

 

Section 4.10.          Effect of Consolidation, Merger or Binding
Share Exchange.  If the
Company is a party to a consolidation, merger or binding share exchange
pursuant to which all shares of Common Stock are exchanged for cash, securities
or other property, then at the effective time of the transaction any conversion
of Securities and the Conversion Value will be based on the kind and amount of
cash, securities or other property that the Holder would have

 

38

 

received if such Holder had converted its Securities
for Common Stock immediately prior to the effective time of the
transaction.  For purposes of the
foregoing, where a consolidation, merger or binding share conversion involves a
transaction that causes Common Stock to be converted into the right to receive
more than a single type of consideration based upon any form of stockholder
election, such consideration will be deemed to be the weighted average of the
types and amounts of consideration received by the holders of Common Stock who
affirmatively made such an election.

 

Section 4.11.          Withholding.        At the Maturity of the principal of the Securities,
whether at Stated Maturity or upon earlier redemption or repurchase of
Securities or otherwise, and as otherwise required by law, the Company may
deduct and withhold from the amount of consideration otherwise deliverable to
such Holder the amount required to be deducted and withheld under applicable law.

 

Section 4.12.          Trustee’s Disclaimer.  The Trustee shall have no duty to determine
when an adjustment under this Article 4 should be made, how it should be
made or what such adjustment should be, but may accept as conclusive evidence
of that fact or the correctness of any such adjustment, and shall be protected
in relying upon, an Officers’ Certificate, including the Officers’ Certificate
with respect thereto which the Company is obligated to file with the Trustee
pursuant to Section 4.08.  The
Trustee makes no representation as to the validity or value of any securities
or assets issued upon conversion of Securities.

 

Section 4.13.          Conversion Settlement.

 

(a)           Upon a conversion of Securities, the Company shall deliver, in respect of
each $1,000 principal amount of Securities tendered for conversion:

 

(1)           cash in an amount (the “Principal Return”) equal to the lesser of (1) the
principal amount of the Securities surrendered for conversion and (2) the
Conversion Value; and

 

(2)           if the Conversion Value is greater than the Principal Return, an amount
(the “Net Amount”) in cash or Common Stock with an aggregate value equal to the
difference between the Conversion Value and the Principal Return.

 

(b)           The Company may elect to deliver any portion of the Net Amount in cash
(the “Net Cash Amount”) or Common Stock, and any portion of the Net Amount the
Company elects to deliver in Common Stock (the “Net Shares”) will be the sum of
the Daily Share Amounts for each Trading Day during the Applicable Conversion
Period.  Prior to the close of business
on the second Trading Day following the date on which Securities are tendered
for conversion, the Company shall inform Holders of such Securities of its
election to pay cash for all or a portion of the Net Amount and, if applicable,
the portion of the Net Amount that will be paid in cash and the portion that
will be delivered in the form of Net Shares.

 

(c)           Notwithstanding any other provision of this Indenture, if the Company’s
Board of Directors determines in good faith that the conversion by a Holder of
its Securities into Common Stock would prevent the Company from qualifying as a
REIT, the Company shall elect not to

 

39

 

satisfy the Net Amount in
whole or in part with Common Stock, but shall satisfy the Net Amount in Cash.

 

(d)           The Company shall determine the Conversion Value, Net Amount, Daily Share
Amount and Average Price at the end of the Applicable Conversion Period.  For the purposes of Sections 4.13(a) and
(b), in the event that any of Conversion Value, Net Amount, Daily Share Amounts
or Average Price cannot be determined for all portions of the Applicable
Conversion Period, the Company’s Board of Directors shall in good faith
determine the values necessary to calculate the Conversion Value, Net Amount,
Daily Share Amounts and Average Price, as applicable.

 

ARTICLE 5

COVENANTS

 

Section 5.01.          Payment of Securities.

 

(a)           The Company shall promptly make all payments in respect of the Securities
on the dates and in the manner provided in the Securities and this
Indenture.  A payment of principal or
interest, if any, shall be considered paid on the date it is due if the Paying
Agent (other than the Company) holds by 10:00 a.m., New York City time, on
that date money, deposited by or on behalf of the Company sufficient to make
the payment.  Subject to Section 4.02,
accrued and unpaid interest on any Security that 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 Security is registered at the close of business on
the Regular Record Date for such interest at the office or agency of the
Company maintained for such purpose. 
Principal, interest, Change in Control Purchase Price and Optional
Repurchase Price, if any, in each case if payable, shall be considered paid on
the applicable date due if on such date the Trustee or the Paying Agent holds,
in accordance with this Indenture, money sufficient to pay all such amounts
then due.  The Company shall, to the fullest
extent permitted by law, pay interest in immediately available funds on overdue
principal amount and interest at the annual rate borne by the Securities
compounded semiannually, which interest shall accrue from the date such overdue
amount was originally due to the date payment of such amount, including
interest thereon, has been made or duly provided for.  All such interest shall be payable on demand.

 

(b)           Payment of the principal of and interest, if any, on the Securities shall
be made at the office or agency of the Company maintained for that purpose,
which shall initially be at the Corporate Trust Office of the Trustee, in such
coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts; provided, however, that
at the option of the Company payment of interest may be made by check mailed to
the address of the Person entitled thereto as such address appears in the
Register; provided further that a Holder with an aggregate principal amount in
excess of $2,000,000 will be paid by wire transfer in immediately available
funds at the election of such Holder if such Holder has provided wire transfer
instructions to the Trustee at least 10 Business Days prior to the payment
date.  Any wire transfer instructions
received by the Trustee will remain in effect until revoked by the Holder.

 

40

 

Section 5.02.          SEC and Other Reports.

 

(a)           The Company shall file all reports and other information and documents
which it is required to file with the SEC pursuant to Section 13 or 15(d) of
the Exchange Act, and within 15 days after it files them with the SEC, the
Company shall file copies of all such reports, information and other documents
with the Trustee; provided that any such reports, information and documents
filed with the SEC pursuant to its Electronic Data Gathering, Analysis and
Retrieval (or EDGAR) system shall be deemed to be filed with the Trustee.  The Company also shall comply with the
provisions of TIA Section 314(a).

 

(b)           Delivery or filing of such reports, information and documents to or with
the Trustee is for informational purposes only and the Trustee’s receipt of
such shall not constitute constructive notice of any information contained
therein or determinable from information contained therein, including the
Company’s compliance with any of its covenants hereunder (as to which the Trustee
is entitled to rely exclusively on Officers’ Certificates).

 

Section 5.03.          Compliance Certificates.  The Company shall deliver to the Trustee,
within 120 days after the end of each fiscal year of the Company (beginning
with the fiscal year ending on December 31, 2010), an Officers’
Certificate that need not comply with Section 12.04, one signer of which
shall be the principal executive officer, principal financial officer, or
principal accounting officer of the Company, as to the signer’s knowledge of the
Company’s compliance with all terms, conditions and covenants on its part
contained in this Indenture and stating whether or not the signer knows of any
Default or Event of Default.  If such
signer knows of such a Default or Event of Default, the Officers’ Certificate
shall describe the Default or Event of Default and the efforts to remedy the
same.  For the purposes of this Section 5.03,
compliance shall be determined without regard to any grace period or
requirement of notice provided pursuant to the terms of this Indenture.

 

Section 5.04.          Further Instruments and Acts.  Upon request of the Trustee, the Company will
execute and deliver such further instruments and do such further acts as may be
reasonably necessary or proper to carry out more effectively the purposes of
this Indenture.

 

Section 5.05.          Maintenance of Corporate Existence.  Subject to Article 6, the Company will
do or cause to be done all things necessary to preserve and keep in full force
and effect its corporate existence.

 

Section 5.06.          Rule 144A Information Requirement.  During the period prior to the expiration of
the holding period applicable to sales thereof under Rule 144(k) under
the Securities Act (or any successor provision), the Company covenants and
agrees that it shall, during any period in which it is not subject to Section 13
or 15(d) under the Exchange Act, upon the request of any Holder or
beneficial holder of the Securities, make available to such Holder or
beneficial holder of Securities or any Common Stock issued upon conversion
thereof which continue to be Restricted Securities in connection with any sale
thereof and any prospective purchaser of Securities or such Common Stock
designated by such Holder or beneficial holder, the information required
pursuant to Rule 144A(d)(4) under the Securities Act and it will take
such further action as any Holder or beneficial holder of such Securities or
such Common Stock may reasonably request, all to the extent required from time
to time to enable such Holder or

 

41

 

beneficial holder to sell its Securities or Common
Stock without registration under the Securities Act within the limitation of
the exemption provided by Rule 144A, as such Rule may be amended from
time to time. Whether a person is a beneficial holder shall be determined by
the Company.

 

Section 5.07.          Stay, Extension and Usury Laws.  The Company covenants (to the extent that it
may lawfully do so) that it shall not at any time insist upon, plead, or in any
manner whatsoever claim or take the benefit or advantage of, any stay,
extension or usury law or other law which would prohibit or forgive the Company
from paying all or any portion of the principal of or accrued but unpaid
interest, if any, on the Securities as contemplated herein, wherever enacted,
now or at any time hereafter in force, or which may affect the covenants or the
performance of this Indenture, and the Company (to the extent it may lawfully
do so) hereby expressly waives all benefit or advantage of any such law and
covenants that it will not, by resort to any such law, hinder, delay or impede
the execution of any power herein granted to the Trustee, but will suffer and
permit the execution of every such power as though no such law had been
enacted.

 

Section 5.08.          Removed.

 

Section 5.09.          Maintenance of Office or Agency.  The Company will maintain an office or agency
of the Trustee, Registrar and Paying Agent where securities may be presented or
surrendered for payment, where Securities may be surrendered for registration
of transfer, purchase or redemption and where notices and demands to or upon
the Company in respect of the Securities and this Indenture may be served.  The Corporate Trust Office shall initially be
one such office or agency for all of the aforesaid purposes. The Company shall
give prompt written notice to the Trustee of the location, and of any change in
the location, of any such office or agency (other than a change in the location
of the office of the Trustee).  If at any
time the Company shall fail to maintain any such required office or agency or
shall fail to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the address of the
Trustee set forth in Section 12.02.

 

The
Company may also from time to time designate one or more other offices or
agencies where the Securities may be presented or surrendered for any or all
such purposes and may from time to time rescind such designations; provided,
however, that no such designation or rescission shall in any manner relieve the
Company of its obligation to maintain an office or agency.

 

ARTICLE 6

CONSOLIDATION;
MERGER; CONVEYANCE; TRANSFER OR LEASE

 

Section 6.01.          Company May Consolidate, Etc., Only
on Certain Terms.  The Company
shall not, in any transaction or series of related transactions, consolidate
with, or sell, lease, assign, transfer or otherwise convey all or substantially
all of its assets to, or merge with or into, any other Person, unless:

 

(1)           either the Company shall be the continuing corporation, or the successor
person, if other than the Company, formed by or resulting from any
consolidation or merger or which shall have received the transfer of all or
substantially all of its assets is a

 

42

 

corporation
organized and existing under the laws of the United States of America, any
state thereof or the District of Columbia and shall expressly assume, by
supplemental indenture executed by the successor corporation and delivered to
the Trustee, the due and punctual payment of the principal of and interest and
other amounts payable, if any, payable in respect of the Securities and the due
and punctual performance and observance of all of the other covenants and
conditions contained in the Securities and the indenture to be performed or
observed by the Company;

 

(2)           immediately after giving effect to the transaction, and treating any
Debt, including Acquired Debt, which becomes the Company’s obligation or an
obligation of any of the Company’s Subsidiaries as a result thereof as having
been incurred by the Company or the Subsidiary at the time of the transaction,
no Event of Default under the Indenture, and, no Event of Default, and no event
which, after notice or the lapse of time or both, would become an Event of
Default, shall have occurred and be continuing; and

 

(3)           the Company shall have, at or prior to the effective date of such
consolidation, merger or transfer, delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that such consolidation,
merger or transfer complies with this Article Six and, if a supplemental
indenture is required in connection with such transaction, such supplemental
indenture complies with this Article, and that all conditions precedent herein
provided for relating to such transaction have been complied with.

 

In the event that the Company is not the continuing
corporation, then, for purposes of above, the references to the Company shall
be deemed to refer to the successor corporation.

 

Section 6.02.          Successor Substituted.  Upon any consolidation of the Company with,
or merger of the Company into, any other Person or any conveyance, transfer or
lease substantially as an entirety, of the properties and assets of the Company
and its Subsidiaries, taken as a whole, in accordance with Section 6.01,
the successor Person 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 Person had been
named as the Company herein, and thereafter, except in the case of a lease, and
except for obligations the predecessor Person may have under a supplemental
indenture, the predecessor Person shall be relieved of all obligations and
covenants under this Indenture and the Securities.

 

ARTICLE 7

DEFAULT AND REMEDIES

 

Section 7.01.          Events of Default.

 

(a)           An “Event of Default” shall occur if:

 

(1)           the Company shall fail to pay when due the principal (including, without
limitation, any Principal Redemption Price, Optional Repurchase Price or Change
in Control Purchase Price) of any Security, when the same becomes due and
payable

 

43

 

whether
at the Final Maturity Date or, upon any earlier Redemption Date, Optional
Repurchase Date, Change in Control Purchase Date, acceleration or otherwise; or

 

(2)           the Company shall fail to pay an installment of interest on any of the
Securities, which failure continues for 30 days after the date when due; or

 

(3)           the Company shall fail to deliver when due the Conversion Value upon the
exercise of a Holder’s conversion right in accordance with the terms of this
Indenture, which failure continues for 15 days; or

 

(4)           the Company shall fail to perform or observe (or obtain a waiver with
respect to) any other term, covenant or agreement contained in the Securities
or this Indenture after receipt by the Company of a notice of default
specifying such failure (a “Notice of Default”) from the Trustee or of a Notice
of Default by the Company and the Trustee from Holders of not less than 25% in
aggregate principal amount of the Securities and the Company does not cure (or
obtain a waiver of) the default within 60 days after receipt of the Notice of
Default; or

 

(5)           a default under any bond, note, debenture or other evidence of
indebtedness of the Company or any of its Subsidiaries, or under any mortgage,
indenture or other instrument under which there may be issued or by which there
may be secured or evidenced any indebtedness of the Company or any of its
Subsidiaries which results in the acceleration of such indebtedness in an
aggregate principal amount exceeding $100,000,000  or which constitutes a failure to pay at maturity or other
scheduled payment date (after expiration of any applicable grace period) such
indebtedness in an aggregate principal amount exceeding $100,000,000, but only
if such indebtedness is not discharged or such acceleration is not rescinded or
annulled within 10 days after notice 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 Securities; or

 

(6)           the Company, or any Significant Subsidiary of the Company, pursuant to or
within the meaning of any Bankruptcy Law:

 

(A)          commences as a debtor a voluntary case or
proceeding;

 

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

 

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

 

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

 

(E)           files a petition in bankruptcy or answer or
consent seeking reorganization or relief; or

 

(F)           consents to the filing of such a petition or
the appointment of or taking possession by a Receiver; or

 

44

 

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

 

(A)          grants relief against the Company or any
Significant Subsidiary of the Company in an involuntary case or proceeding or
adjudicates the Company or any Significant Subsidiary of the Company insolvent
or bankrupt;

 

(B)           appoints a Receiver of the Company or any
Significant Subsidiary of the Company or for all or substantially all of the
property of the Company or any Significant Subsidiary of the Company; or

 

(C)           orders the winding up or liquidation of the
Company or any Significant Subsidiary of the Company;

 

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

 

(8)           the Company
shall fail to provide notice of the occurrence of a Change in Control when
required under Section 3.01(b) of this Indenture, which failure
continues for 10 days.

 

The
term “Bankruptcy Law” means Title 11 of the United States Code (or any
successor thereto) or any similar federal or state law for the relief of
debtors.  The term “Receiver” means any
receiver, trustee, assignee, liquidator, sequestrator or similar official under
any Bankruptcy Law.

 

(b)           The Company will deliver to the Trustee, within five Business Days after
becoming aware of the occurrence of a Default or Event of Default, written
notice thereof.

 

Section 7.02.          Acceleration.  If an Event of Default (other than an Event
of Default specified in clause (6) or (7) of Section 7.01(a))
occurs and is continuing with respect to the Company, the Trustee may, by
notice to the Company, or the Holders of at least 25% in aggregate principal
amount of the Securities then outstanding may, by notice to the Company and the
Trustee, declare the principal amount and accrued and unpaid interest, if any,
through the date of declaration on all the Securities to be immediately due and
payable. Upon such a declaration, such principal amount and such accrued and
unpaid interest, if any, shall be due and payable immediately.  If an Event of Default specified in Section 7.01(a)(6) or
(7) occurs in respect of the Company and is continuing, the principal
amount and accrued but unpaid interest, if any, on all the Securities shall
become and be immediately due and payable without any declaration or other act
on the part of the Trustee or any Holders of Securities.  At any time after such a declaration of
acceleration with respect to the Securities has been made and before a judgment
or decree for payment of the money due has been obtained by the Trustee as
hereinafter in this Article provided, the Holders of not less than a
majority in principal amount of the Securities, by written notice to the
Company and the Trustee, may rescind and annul such declaration and its
consequences if:

 

(1)           the Company has paid or deposited with the Trustee a sum sufficient to
pay in the currency in which the Securities are payable:

 

45

 

(B)           all overdue installments of interest on all
outstanding Securities,

 

(C)           the principal of any outstanding Securities
which have become due otherwise than by such declaration of acceleration and
interest thereon at the rate or rates borne by or provided for in the
Securities,

 

(D)          to the extent that payment of such interest is
lawful, interest upon overdue installments of interest at the rate or rates
borne by or provided for in the Securities, and

 

(E)           all sums paid or advanced by the Trustee
hereunder and the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel; and

 

(2)           all Events of Default with respect to the Securities, other than the
nonpayment of the principal of or interest on the Securities which have become
due solely by such declaration of acceleration, have been cured or waived as
provided in Section 7.04.

 

Section 7.03.          Other Remedies.

 

(a)           If an Event of Default occurs and is continuing, the Trustee may, but
shall not be obligated to, pursue any available remedy by proceeding at law or
in equity to collect payment of the principal amount and accrued and unpaid
interest, if any, on the Securities or to enforce the performance of any
provision of the Securities or this Indenture.

 

(b)           The Trustee may maintain a proceeding even if it does not possess any of
the Securities or does not produce any of them in the proceeding.  A delay or omission by the Trustee or any
Holder in exercising any right or remedy accruing upon an Event of Default
shall not impair the right or remedy or constitute a waiver of or acquiescence
in the Event of Default.  No remedy is
exclusive of any other remedy.  All
available remedies are cumulative to the extent permitted by applicable law.

 

Section 7.04.          Waiver of Defaults and Events of Default.  Subject to Sections 7.07 and 10.02, the
Holders of a majority in aggregate principal amount of the Securities then
outstanding by notice to the Trustee may waive an existing Default or Event of
Default and its consequences, except an uncured Default or Event of Default in
the payment of the principal of, other amounts payable, if any, or any accrued
but unpaid interest, if any, on any Security, an uncured failure by the Company
to convert any Securities into Common Stock and cash, as applicable, or any
Default or Event of Default in respect of any provision of this Indenture or
the Securities which, under Section 10.02, cannot be modified or amended
without the consent of the Holder of each Security affected.  When a Default or Event of Default is waived,
it is cured and ceases to exist.

 

Section 7.05.          Control by Majority.  The Holders of a majority in aggregate
principal amount of the Securities then outstanding may 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 it.  However, the Trustee may refuse to follow any
direction that conflicts with law or this Indenture, that the Trustee
determines may be unduly prejudicial to the rights of another

 

46

 

Holder or the Trustee (it being understood that the
Trustee does not have an affirmative duty to ascertain whether or not such
actions or forbearances are unduly prejudicial to such Holders), or that may
involve the Trustee in personal liability unless the Trustee is offered
security or indemnity reasonably satisfactory to it; provided, however, that
the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction.

 

Section 7.06.          Limitations on Suits.

 

(a)           A Holder may not pursue any remedy with respect to this Indenture or the
Securities (except actions for payment of overdue principal, other amounts
payable, if any, or interest or for the conversion of the Securities pursuant
to Article 4) unless:

 

(1)           the Holder gives to the Trustee written notice of a continuing Event of
Default;

 

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

 

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

 

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

 

(5)           no direction inconsistent with such written request has been given to the
Trustee during such 60-day period by the Holders of a majority in aggregate
principal amount of the Securities then outstanding.

 

(b)           No Holder of a Security shall have any right under any provision of this
Indenture or the Securities to affect, disturb, or prejudice the rights of
another Holder of a Security or to obtain a preference or priority over another
Holder of a Security or to enforce any right under this Indenture, except in
the manner herein provided and for the equal and ratable benefit of all of such
Holders.  The Trustee shall mail to all
Holders any notice it receives from Holders under this Section.

 

Section 7.07.          Rights of Holders to Receive Payment and to
Convert.  Notwithstanding any other
provision of this Indenture, the right of any Holder of a Security to receive
payment of the Principal, interest, Redemption Price, Optional Repurchase Price
or Change in Control Purchase Price, if any, in respect of the Securities held
by such Holder, on or after the respective due dates expressed in the
Securities and this Indenture (whether upon repurchase or otherwise), and to
convert such Security in accordance with Article 4, and to bring suit for
the enforcement of any such payment on or after such respective due dates or
for the right to convert in accordance with Article 4, is absolute and
unconditional and shall not be impaired or affected without the consent of the
Holder.

 

Section 7.08.          Collection Suit by Trustee.  If an Event of Default described in clause
(1) or (2) of Section 7.01(a) occurs and is continuing, the
Trustee may recover judgment in its own name and as trustee of an express trust
against the Company or another obligor on the Securities

 

47

 

for the whole amount owing with respect to the
Securities and such further amount as shall be sufficient to cover the costs
and expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel.

 

Section 7.09.          Trustee May File Proofs of Claim.  The Trustee may file such proofs of claim and
other papers or documents as may be necessary or advisable in order to have the
claims of the Trustee (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel)
and the Holders allowed in any judicial proceedings relative to the Company (or
any other obligor on the Securities), its creditors or its property and shall
be entitled and empowered to collect and receive any money or other property
payable or deliverable on any such claims and to distribute the same, and any
Receiver in any such judicial proceeding is hereby authorized by each Holder to
make such payments to the Trustee and, in the event that the Trustee shall
consent to the making of such payments directly to the Holders, to pay to the
Trustee any amount due to it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any
other amounts due the Trustee under Section 8.07, and to the extent that
such payment of the reasonable compensation, expenses, disbursements and
advances in any such proceedings shall be denied for any reason, payment of the
same shall be secured by a lien on, and shall be paid out of, any and all
distributions, dividends, money, securities and other property which the
Holders may be entitled to receive in such proceedings, whether in liquidation
or under any plan of reorganization or arrangement or otherwise. Nothing herein
contained shall be deemed to authorize the Trustee to authorize or consent to,
or, on behalf of any Holder, to authorize, accept or adopt any plan of
reorganization, arrangement, adjustment or composition affecting the Securities
or the rights of any Holder thereof, or to authorize the Trustee to vote in
respect of the claim of any Holder in any such proceeding; provided, however,
that the Trustee may, on behalf of the Holders, vote for the election of a
trustee in bankruptcy or similar official and be a member of a creditors’ or
other similar committee.

 

Section 7.10.          Priorities.

 

(a)           After an Event of Default, any money or other property distributable in
respect of the Company’s obligations under this Indenture it shall be paid out
in the following order:

 

(1)           First, to the Trustee for amounts due under Section 8.07;

 

(2)           Second, to Holders for amounts due and unpaid on the Securities for the
Principal and interest, as applicable, ratably, without preference or priority
of any kind, according to such respective amounts due and payable on the
Holders’ Securities;

 

(3)           Third, to such other Person or Persons, if any, to the extent entitled
thereto; and

 

(4)           Fourth, the balance, if any, to the Company.

 

(b)           The Trustee may fix a record date and payment date for any payment to
Holders pursuant to this Section 7.10.

 

48

 

Section 7.11.          Undertaking for Costs.  In any suit for the enforcement of any right
or remedy under this Indenture or in any suit against the Trustee for any
action taken or omitted by it as Trustee, a court in its discretion may require
the filing by any party litigant in the suit of an undertaking to pay the costs
of the suit, and the court in its discretion may assess reasonable costs,
including reasonable attorneys’ fees and expenses, against any party litigant
in the suit, having due regard to the merits and good faith of the claims or
defenses made by the party litigant. This Section 7.11 does not apply to a
suit made by the Trustee, a suit by a Holder pursuant to Section 7.07, or
a suit by Holders of more than 25% in aggregate principal amount of the
Securities then outstanding.  This
Section 7.11 shall be in lieu of Section 315(e) of the TIA and
such Section 315(e) is hereby expressly excluded from this Indenture,
as permitted by the TIA.

 

ARTICLE 8

TRUSTEE

 

Section 8.01.          Obligations of Trustee.

 

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

 

(b)           Except during the continuance of an Event of Default of which a
Responsible Officer of the Trustee shall have actual knowledge:

 

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

 

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

 

This
Section 8.01(b) shall be in lieu of Section 315(a) of the
TIA and such Section 315(a) is hereby expressly excluded from this
Indenture, as permitted by the TIA.

 

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

 

(1)           this paragraph does not limit the effect of Section 8.01(b);

 

49

 

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

 

(3)           the Trustee shall not be liable in its individual capacity with respect
to any action it takes or omits to take in good faith in accordance with a
request or direction received by it pursuant to Section 7.05, or a request
or direction received by it from a majority of the Holders of the Outstanding Securities
concerning the exercise of any trust or power conferred upon the Trustee by
this Indenture.

 

This
Section 8.01(c) shall be in lieu of Sections 315(d)(1), 315(d)(2) and
315(d)(3) of the TIA and such Sections are hereby expressly excluded from
this Indenture as permitted by the TIA.

 

(d)           No provision of this Indenture shall require the Trustee to expend or
risk its own funds or otherwise incur any financial liability in the
performance of any of its duties hereunder or in the exercise of any of its
rights or powers unless the Trustee shall have received adequate security or
indemnity in its opinion against potential costs and liabilities incurred by it
relating thereto.

 

(e)           Every provision of this Indenture that in any way relates to the Trustee
is subject to subsections (a), (b), (c) and (d) of this Section 8.01.

 

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

 

Section 8.02.          Rights of Trustee.

 

(a)           Subject to Section 8.01:

 

(1)           The Trustee may rely conclusively and shall be protected in acting or
refraining from acting upon on any document believed by it to be genuine and to
have been signed or presented by the proper person. The Trustee need not
investigate any fact or matter stated in the document.

 

(2)           Before the Trustee acts or refrains from acting, it may require an
Officers’ Certificate or an Opinion of Counsel, which shall conform to Section 12.04(b).  The Trustee shall not be liable for any
action it takes or omits to take in good faith in reliance on such Officers’
Certificate or Opinion of Counsel.

 

(3)           The Trustee may execute any of the trusts or powers hereunder or perform
any duties hereunder either directly or by or through agents, attorneys or
custodians, and the Trustee shall not be responsible for any misconduct or
negligence on the part of any such agent, attorney or custodian appointed by
the Trustee with due care.

 

(4)           The Trustee shall not be personally liable for any action it takes or
omits to take in good faith which it believes to be authorized or within its
rights or powers.

 

50

 

(5)           The Trustee may consult with counsel of its selection, and the advice of
such counsel as to matters of law or any Opinion of Counsel shall be full and
complete authorization and protection in respect of any such action taken,
omitted or suffered by it hereunder in good faith and in accordance with the
advice of such counsel or Opinion of Counsel.

 

(6)           The Trustee shall be under no obligation to exercise any of the rights or
powers vested in it by this Indenture or to institute, conduct or defend any litigation
hereunder or in relation hereto at the request or direction of any of the
Holders pursuant to this Indenture, unless such Holders shall have offered to
the Trustee security or indemnity reasonably satisfactory to the Trustee
against the costs, expenses and liabilities which might be incurred by it in
compliance with such request or direction.

 

(7)           The Trustee shall not be bound to make any investigation into the facts
or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture,
note, other evidence of indebtedness or other paper or document, but the
Trustee, in its discretion, may make such further inquiry or investigation into
such facts or matters as it may see fit, and, if the Trustee shall determine to
make such further inquiry or investigation, it shall be entitled to examine the
books, records and premises of the Company, personally or by agent or attorney
at the sole cost of the Company, and shall incur no liability or additional
liability of any kind by reason of such inquiry or investigation.  The reasonable expense of every such
examination shall be paid by the Company or, if paid by the Trustee, shall be
repaid by the Company upon demand from the Company’s own funds.

 

(8)           The Trustee shall not be deemed to have notice or knowledge of any
Default, Event of Default, or Change in Control unless a Responsible Officer of
the Trustee has actual knowledge thereof or unless written notice of any event
which is in fact such a Default is received by the Trustee at the Corporate
Trust Office, and such notice references the Securities and this
Indenture.  In the absence of receipt of
such notice or actual knowledge, the Trustee may conclusively assume that there
is no Default, Event of Default, or Change in Control.

 

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

 

(10)         The
right of the Trustee to perform any discretionary act enumerated in this
Indenture shall not be construed as a duty, and the Trustee shall not be
answerable for other than its own negligence or willful misconduct in the
performance of such act.

 

Section 8.03.          Individual Rights of Trustee.  The Trustee in its individual or any other
capacity may become the owner or pledgee of Securities and may otherwise deal
with the Company or an Affiliate of the Company with the same rights it would
have if it were not

 

51

 

Trustee.  Any
Agent may do the same with like rights. 
However, the Trustee is subject to Sections 8.10 and 8.11.

 

Section 8.04.          Trustee’s Disclaimer.  The Trustee makes no representation as to the
validity or adequacy of this Indenture or the Securities and the Trustee
assumes no responsibility for their correctness.  It shall not be accountable for the Company’s
use of the proceeds from the Securities and it shall not be responsible for any
statement in the Securities other than its certificate of authentication. The
Trustee shall have no responsibility for the Registration Statement or the
Prospectus.

 

Section 8.05.          Notice of Default or Events of Default.  If a Default or an Event of Default occurs
and is continuing and if it is known to the Trustee, the Trustee shall mail to
each Holder of a Security notice of all uncured Defaults or Events of Default
known to it within 90 days after it occurs or, if later, within 15 days after
it becomes known to the Trustee.  However,
the Trustee may withhold the notice if and for so long as a committee of its
Responsible Officers in good faith determines that withholding notice is in the
interests of Holders of Securities, except in the case of a Default or an Event
of Default in payment of the principal of, or other amounts payable, if any, or
interest on any Security when due or in the payment of any redemption or
purchase obligation, or the Company’s failure to convert Securities when
obligated to convert them.  This Section 8.05
is in lieu of section 315(b) of the TIA and such provision is expressly
excluded from this Indenture as permitted by the TIA.

 

Section 8.06.          Reports by Trustee to Holders.

 

(a)           If a report is required by TIA Section 313, within 60 days after
each May 15, beginning with the May 15 following the date of this
Indenture, the Trustee shall mail to each Holder of Securities a brief report
dated as of such May 15 that complies with TIA Section 313(a).  If required by TIA Section 313, the
Trustee also shall comply with TIA Sections 313(b)(2) and (c).

 

(b)           A copy of each report at the time of its mailing to Holders of Securities
shall be mailed to the Company and, to the extent required by the TIA, filed
with the SEC, and each stock exchange, if any, on which the Securities are
listed.  The Company shall notify the
Trustee whenever the Securities become listed on any stock exchange or listed
or admitted to trading on any quotation system and any changes in the stock
exchanges or quotation systems on which the Securities are listed or admitted
to trading and of any delisting thereof.

 

Section 8.07.          Compensation and Indemnity.

 

(a)           The Company shall pay to the Trustee from time to time such compensation
(as agreed to from time to time by the Company and the Trustee in writing) for
its services (which compensation shall not be limited by any provision of law
in regard to the compensation of a trustee of an express trust).  The Company shall reimburse the Trustee upon
request for all reasonable disbursements, expenses and advances incurred or
made by it.  Such expenses may include
the reasonable compensation, disbursements and expenses of the Trustee’s agents
and counsel.

 

52

 

(b)           The Company shall indemnify the Trustee or any predecessor Trustee (which
for purposes of this Section 8.07 shall include its officers, directors,
employees and agents) for, and hold it harmless against, any and all loss,
liability or expense including taxes (other than franchise taxes and taxes
based upon, measured by or determined by the income of the Trustee), incurred
by it arising out of or in connection with the acceptance or administration of
its duties under this Indenture or any action or failure to act as authorized
or within the discretion or rights or powers conferred upon the Trustee
hereunder including the reasonable costs and expenses of the Trustee and its
counsel in defending (including reasonable legal fees and expenses) itself
against any claim or liability in connection with the exercise or performance
of any of its powers or duties hereunder. 
The Trustee shall notify the Company promptly of any claim asserted
against the Trustee for which it may seek indemnity, provided that failure of
the Trustee to so notify the Company shall not relieve the Company of its
obligations hereunder.  The Company need
not pay for any settlement effected without its prior written consent, which
shall not be unreasonably withheld. 
Anything in this Indenture to the contrary notwithstanding, in no event
shall the Trustee be liable for special, indirect or consequential loss or
damage of any kind whatsoever (including but not limited to lost profits), even
if the Trustee has been advised of the likelihood of such loss or damage and
regardless of the form of action.

 

(c)           The Company need not reimburse the Trustee for any expense or indemnify
it against any loss or liability incurred by it resulting from its negligence,
willful misconduct or bad faith.

 

(d)           The Trustee shall have a senior claim to which the Securities are hereby
made subordinate on all money or property held or collected by the Trustee.

 

(e)           When the Trustee incurs expenses or renders services after an Event of
Default specified in clause (6) or (7) of Section 7.01(a) occurs,
the expenses and the compensation for the services are intended to constitute
expenses of administration under any Bankruptcy Law.

 

(f)            The obligations of the Company under this Section 8.07 shall survive
the satisfaction and discharge of this Indenture or the resignation or removal
of the Trustee.

 

Section 8.08.          Replacement of Trustee.

 

(a)           The Trustee may resign by so notifying the Company.  The Holders of a majority in aggregate
principal amount of the Securities then outstanding may remove the Trustee by
so notifying the Trustee and the Company and may, with the Company’s written
consent, appoint a successor Trustee. 
The Company may remove the Trustee at any time, so long as no Default or
Event of Default has occurred and is continuing, and appoint a Successor
Trustee in accordance with this Section 8.08.

 

(b)           If the Trustee resigns or is removed or if a vacancy exists in the office
of Trustee for any reason, the Company shall promptly appoint a successor
Trustee.  If the Company fails to
promptly appoint a successor Trustee, the Trustee shall have the right to
choose a qualified Trustee as successor, and the Company shall appoint such
successor as Trustee.  The resignation or
removal of a Trustee shall not be effective until a successor Trustee shall
have delivered the written acceptance of its appointment as described below.

 

53

 

(c)           If a successor Trustee does not take office within 30 days after the
retiring Trustee resigns or is removed, the retiring Trustee, the Company or
the Holders of 10% in principal amount of the Securities then outstanding may
petition any court of competent jurisdiction for the appointment of a successor
Trustee at the expense of the Company.

 

(d)           If the Trustee fails to comply with Section 8.10, any Holder may
petition any court of competent jurisdiction for the removal of the Trustee and
the appointment of a successor Trustee.

 

(e)           A successor Trustee shall deliver a written acceptance of its appointment
to the retiring Trustee and to the Company. 
Immediately after that, the retiring Trustee shall transfer all property
held by it as Trustee to the successor Trustee and be released from its
obligations (exclusive of any liabilities that the retiring Trustee may have
incurred while acting as Trustee) hereunder, the resignation or removal of the
retiring Trustee shall become effective, and the successor Trustee shall have
all the rights, powers and duties of the Trustee under this Indenture.  A successor Trustee shall mail notice of its
succession to each Holder.

 

(f)            A retiring Trustee shall not be liable for the acts or omissions of any
successor Trustee after its succession.

 

(g)           Notwithstanding replacement of the Trustee pursuant to this Section 8.08,
the Company’s obligations under Section 8.07 shall continue for the
benefit of the retiring Trustee.

 

Section 8.09.          Successor Trustee by Merger, Etc.  If the Trustee consolidates with, merges or
converts into, or transfers all or substantially all of its corporate trust
business (including the administration of this Indenture) to, another corporation,
the resulting, surviving or transferee corporation, without any further act,
shall be the successor Trustee; provided such transferee corporation shall
qualify and be eligible under Section 8.10.  Such successor Trustee shall promptly mail
notice of its succession to the Company and each Holder.

 

Section 8.10.          Eligibility; Disqualification.  The Trustee shall always satisfy the
requirements of paragraphs (1), (2) and (5) of TIA Section 310(a).  The Trustee (or its parent holding company)
shall have a combined capital and surplus of at least $50,000,000 as set forth
in its most recent published annual report of condition.  If at any time the Trustee shall cease to
satisfy any such requirements, it shall resign immediately in the manner and
with the effect specified in this Article 8.  The Trustee shall be subject to the
provisions of TIA Section 310(b). 
Nothing herein shall prevent the Trustee from filing with the SEC the
application referred to in the penultimate paragraph of TIA Section 310(b).  To the extent permitted by the Trust
Indenture Act, the Trustee shall not be deemed to have a conflicting interest
with respect to any other indenture of the Company by virtue of being a trustee
under this Indenture with respect to the Securities.

 

Section 8.11.          Preferential Collection of Claims Against
Company.  The Trustee shall comply with
TIA Section 311(a), excluding any creditor relationship listed in TIA
Section 311(b).  A Trustee who has
resigned or been removed shall be subject to TIA Section 311(a) to
the extent indicated therein.

 

54

 

ARTICLE 9

SATISFACTION
AND DISCHARGE OF INDENTURE

 

Section 9.01.          Satisfaction and Discharge of Indenture.

 

(a)           This Indenture shall cease to be of further force and effect (except as
to any surviving rights of conversion, registration of transfer or exchange of
Securities herein expressly provided for and except as further provided below),
and the Trustee, on demand of and at the expense of the Company, shall execute
proper instruments acknowledging satisfaction and discharge of this Indenture,
when either:

 

(A)          all Securities theretofore authenticated and
delivered (other than (i) Securities which have been destroyed, lost or
stolen and which have been replaced or paid as provided in Section 2.07
and (ii) Securities for whose payment money has theretofore been deposited
in trust and thereafter repaid to the Company as provided in Section 9.03)
have been delivered to the Trustee for cancellation; or

 

(B)           all such Securities not theretofore delivered
to the Trustee for cancellation have become due and payable,

 

provided
that

 

(1)           the Company has deposited with the Trustee, a Paying Agent (other than
the Company or any of its Affiliates) or a Conversion Agent, if applicable, immediately
available funds in trust for the purpose of and in an amount sufficient to pay
and discharge all indebtedness and obligations related to such Securities not
theretofore delivered to the Trustee for cancellation, for principal and
interest to the date of such deposit;

 

(2)           the Company has paid or caused to be paid all other sums payable
hereunder by the Company; and

 

(3)           the Company has delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent herein relating
to the satisfaction and discharge of this Indenture have been complied with.

 

(b)           Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company with respect to the conversion privilege and the Conversion
Rate of the Securities pursuant to Article 4, the obligations of the
Company to the Trustee under Section 8.07 and, if money shall have been
deposited with the Trustee pursuant to clause (1) of Section 9.01(a),
the provisions of Sections 2.03, 2.04, 2.05, 2.06, 2.07, 2.12, 5.01 and 12.05,
Article 4, and this Article 9, shall survive until the Securities
have been paid in full.

 

Section 9.02.          Application of Trust Money.  Subject to the provisions of Section 9.03,
the Trustee or a Paying Agent shall hold in trust, for the benefit of the
Holders, all money deposited with it pursuant to Section 9.01 and shall
apply the deposited money in accordance with this Indenture and the Securities
to the payment of the principal of and interest on the Securities.

 

55

 

Section 9.03.          Repayment to Company.

 

(a)           The Trustee and each Paying Agent shall promptly pay to the Company upon
request any excess money (1) deposited with them pursuant to Section 9.01
and (2) held by them at any time.

 

(b)           The Trustee and each Paying Agent shall, subject to applicable
abandonment property laws, pay to the Company upon request any money held by
them for the payment of principal or interest that remains unclaimed for two
years after a right to such money has matured; provided, however, that the
Trustee or such Paying Agent, before being required to make any such payment,
may at the expense of the Company cause to be mailed to each Holder entitled to
such money notice that such money remains unclaimed and that after a date
specified therein, which shall be at least 30 days from the date of such
mailing, any unclaimed balance of such money then remaining will be repaid to
the Company.  After payment to the
Company, Holders entitled to money must look to the Company for payment as
general creditors unless an applicable abandoned property law designates
another person.

 

Section 9.04.          Reinstatement.  If the Trustee or any Paying Agent is unable
to apply any money in accordance with Section 9.02 by reason of any legal
proceeding or by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application,
then the Company’s obligations under this Indenture and the Securities shall be
revived and reinstated as though no deposit had occurred pursuant to Section 9.01
until such time as the Trustee or such Paying Agent is permitted to apply all
such money in accordance with Section 9.02; provided, however, that if the
Company has made any payment of the principal of or interest on any Securities
because of the reinstatement of its obligations, the Company shall be
subrogated to the rights of the Holders of such Securities to receive any such
payment from the money held by the Trustee or such Paying Agent.

 

ARTICLE 10

AMENDMENTS;
SUPPLEMENTS AND WAIVERS

 

Section 10.01.        Without Consent of Holders.  Without the consent of any Holders of the
Securities, the Company, when authorized by or pursuant to a resolution of the
Board of Directors, and the Trustee may enter into an indenture to indentures
supplemental hereto for any of the following purposes:

 

(a)           to evidence the succession or addition of another Person to the Company
and the assumption by any such successor of covenants of the Company under this
Indenture;

 

(b)           to add to the covenants of the Company for the benefit of the Holders or
to surrender any right or power conferred upon the Company in this Indenture;

 

(c)           to add any additional Events of Default for the benefit of the Holders of
all the Securities;

 

56

 

(d)           to permit or facilitate the issuance of the Securities in uncertificated
form, provided that such action shall not adversely affect the interests of the
Holders in any material respect.

 

(e)           to secure the Securities;

 

(f)            to evidence and provide for the acceptance of appointment by a successor
Trustee and to add to or change any of the provisions of this Indenture as is
necessary to provide for or facilitate the administration of the trusts under
this Indenture by more than one Trustee;

 

(g)           to provide for rights of Holders of the Securities if any
reclassification or change of shares of Common Stock or any consolidation,
merger or sale of all or substantially all of our property or assets occurs;

 

(h)           to cure any ambiguity, defect or inconsistency in, or supplement, this
Indenture provided that such action shall not adversely affect the interests of
Holders in any material respect;

 

(i)            to conform the text of this Indenture or the Securities to any provision
of the “Description of the New Notes” section of the Prospectus, to the extent
that such provision in the “Description of the New Notes” section was intended
to be a verbatim recitation of a provision of this Indenture or the Securities;
or

 

(j)            to supplement any of the provisions of this Indenture to the extent
necessary to permit or facilitate defeasance and discharge of the Securities
under this Indenture, provided that such action shall not adversely affect the
interests of the Holders in any material respect.

 

Section 10.02.        With Consent of Holders.

 

(a) The
Company and the Trustee may amend or supplement this Indenture or the
Securities with the written consent of the Holders of at least a majority in
aggregate principal amount of the Securities then outstanding and affected by
such amendment or supplement (voting together as a single class).  However, subject to Section 10.04,
without the written consent of each Holder affected, an amendment, supplement
or waiver may not:

 

(i)            change the stated maturity of the principal of, or any installment of
principal of, or interest on, the Securities;

 

(ii)           reduce the principal amount of, the rate of interest on, or change the
timing or reduce the amount payable on the redemption of, the Securities;

 

(iii)          make any change that impairs or adversely affects the rights of a Holder
to convert Securities in accordance herewith;

 

(iv)          change the place of payment, or the coin or currency, for payment of
principal of, or interest on, the Securities;

 

57

 

(v)           impair the right to institute suit for the enforcement of any payment on
or with respect to Securities or the delivery of the Conversion Value as
required by this Indenture upon a conversion of Securities;

 

(vi)          reduce the percentage in principal amount of the outstanding Securities,
the consent of whose Holders is required for any such supplemental indenture,
or the consent of whose Holders is required for any waiver with respect to the
outstanding Securities;

 

(vii)         modify
any of the provisions of this Section 10.02 or Section 7.02, 7.05,
7.06(d) or 8.08(a) of this Indenture, except to increase the required
percentage to effect such action or to provide that specified other provisions
of this Indenture may not be modified or waived without the consent of the
Holders of each outstanding Security affected thereby;

 

(viii)        change
the provisions of Section 4.01(g) in a manner that adversely affects
the holders of Securities; or

 

(ix)           change the dates and prices at which the Securities may be redeemed, or
at which the Holders may require the Securities to be repurchased, in a manner
that adversely affects the Holders of Securities.

 

(b)           Without limiting the
provisions of Section 10.02(a) hereof, the Holders of a majority in
principal amount of the Securities then outstanding may, on behalf of all the
Holders of all Securities, (i) waive compliance by the Company with the
restrictive provisions of this Indenture, and (ii) waive any past Default
or Event of Default under this Indenture and its consequences, except an
uncured failure to pay when due the principal amount, accrued and unpaid
interest, Change in Control Purchase Price or Optional Repurchase Price, or in
the obligation to deliver Common Stock or cash, if any and as applicable, or in
respect of any provision which under this Indenture cannot be modified or
amended without the consent of the Holder of each outstanding Security
affected.

 

(c)           After an amendment,
supplement or waiver under this Section 10.02 becomes effective, the
Company shall promptly mail to the Holders affected thereby a notice briefly
describing the amendment, supplement or waiver. 
Any failure of the Company to mail such notice, or any defect therein,
shall not, however, in any way impair or affect the validity of any such
amendment, supplement or waiver.

 

(d)           For purposes of this
Indenture, Securities will be deemed outstanding if they have been
authenticated and delivered under this Indenture unless, among other things,
the Securities have matured or been cancelled, converted, redeemed or
repurchased.

 

Section 10.03.        Compliance with Trust Indenture Act.  Every amendment to or supplement of this
Indenture or the Securities shall comply with the TIA as in effect at the date
of such amendment or supplement.

 

58

 

Section 10.04.        Revocation and Effect of Consents.

 

(a)           Until an amendment, supplement or waiver becomes effective, a consent to
it by a Holder is a continuing consent by the Holder and every subsequent
Holder of a Security or portion of a Security that evidences the same debt as
the consenting Holder’s Security, even if notation of the consent is not made
on any Security.  However, any such
Holder or subsequent Holder may revoke the consent as to its Security or
portion of a Security if the Trustee receives the notice of revocation before
the date the amendment, supplement or waiver becomes effective.

 

(b)           After an amendment, supplement or waiver becomes effective, it shall bind
every Holder of a Security.

 

Section 10.05.        Notation on or Exchange of Securities. If an
amendment, supplement or waiver changes the terms of a Security, the Trustee
may require the Holder of the Security to deliver it to the Trustee.  The Trustee may place an appropriate notation
on the Security about the changed terms and return it to the Holder.  Alternatively, if the Company or the Trustee
so determines, the Company in exchange for the Security shall issue and the Trustee
shall authenticate a new Security that reflects the changed terms.

 

Section 10.06.        Trustee to Sign Amendments, Etc.  The Trustee shall sign any amendment or
supplemental indenture authorized pursuant to this Article 10 if the
amendment or supplemental indenture does not adversely affect the rights,
duties, liabilities or immunities of the Trustee.  If it does, the Trustee may, in its sole
discretion, but need not sign it.  In
signing or refusing to sign such amendment or supplemental indenture, the
Trustee shall be entitled to receive and, subject to Section 8.01, shall
be fully protected in relying upon, an Opinion of Counsel stating that such
amendment or supplemental indenture is authorized or permitted by this
Indenture.  The Company may not sign an
amendment or supplement indenture until the Board of Directors approves it.

 

Section 10.07.        Effect of Supplemental Indentures.  Upon the execution of any supplemental
indenture under this Article 10, this Indenture shall be modified in
accordance therewith, and such supplemental indenture shall form a part of this
Indenture for all purposes; and every Holder of Securities theretofore or
thereafter authenticated and delivered hereunder shall be bound thereby.

 

ARTICLE 11

REDEMPTION

 

Section 11.01.        Redemption.

 

(a)           The Company shall not have the right to redeem any Securities prior to
November 21, 2014, except to preserve the Company’s status as a REIT.  If, at any time, the Company determines it is
necessary to redeem the Securities in order to preserve the Company’s status as
a REIT, the Company may, upon not less than 30 nor more than 60 days’ prior
written notice by mail to the Holders of the Securities, redeem the Securities
in whole or in part, for cash equal to 100% of the principal amount of the
Securities to be redeemed plus any accrued but unpaid interest to but excluding
the Redemption Date. In such case, the Company shall provide the

 

59

 

Trustee with an Officers’
Certificate evidencing that the Board of Directors of the Company has, in good
faith, made the determination that it is necessary to redeem the Securities in
order to preserve the Company’s status as a real estate investment trust.

 

(b)           The Company shall have the right to redeem the Securities, in whole or in
part at any time or from time to time, on or after November 21, 2014 upon
not less than 30 nor more than 60 days’ prior written notice by mail to the
Holders of the Securities, at a redemption price (“Redemption Price”) for cash
equal to 100% of the principal amount of the Securities to be redeemed plus any
accrued but unpaid interest to but excluding the Redemption Date.  If less than all the Securities are to be
redeemed, the Trustee shall select the Securities to be redeemed (in principal
amounts of $1,000 and integral multiples thereof) on a pro rata basis or by
such other method the Trustee considers fair and appropriate or is required by
Applicable Procedures of the Depositary for the Securities.  The Trustee shall make the selection at least
30 days but not more than 60 days before the Redemption Date from Outstanding
Securities not previously called for redemption.  Securities and portions of the principal
amount thereof selected for redemption shall be in integral multiples of $1,000.  The Trustee shall notify the Company promptly
of the Securities or portions of the principal amount thereof to be
redeemed.  If the Trustee selects a
portion of a Security for partial redemption and a Holder converts a portion of
the same Security in accordance with the provisions of Section 4.01(a)(7) hereof
before termination of the conversion right with respect to the portion of the
Security so selected, the converted portion of such Security shall be deemed to
be from the portion selected for redemption. 
Securities that have been converted during a selection of Securities to
be redeemed shall be treated by the Trustee as Outstanding for the purpose of
such selection.

 

(c)           In the event of any redemption in part, the Company shall not be required
to:  (i) issue or register the
transfer or conversion of any Security during a period beginning at the opening
of business 15 days before any selection of Securities for redemption and
ending at the close of business on the earliest date on which the relevant
notice of redemption is deemed to have been given to all Holders of Securities
to be so redeemed, or (ii) register the transfer or conversion of any
Security so selected for redemption, in whole or in part, except the unredeemed
portion of any Security being redeemed in part.

 

(d)           A notice of redemption sent to the Holders of Securities to be redeemed
in accordance with the provisions of the two preceding paragraphs shall state:

 

(1)           the name of the Paying Agent and Conversion Agent;

 

(2)           the then current Conversion Rate;

 

(3)           that Securities called for redemption may be converted at any time
prior to the close of business on the third Business Day immediately preceding
the Redemption Date; and

 

(4)           that Holders who wish to convert Securities must comply with the
procedures relating thereto specified in Section 4.02 hereof.

 

60

 

ARTICLE 12

MISCELLANEOUS

 

Section 12.01.        Trust
Indenture Act Controls.  If
any provision of this Indenture limits, qualifies or conflicts with the duties
imposed by any of Sections 310 to 317, inclusive, of the TIA through operation
of Section 318(c) thereof, such imposed duties shall control.

 

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

 

If
to the Company, to:

Inland Real Estate Corporation

2901 Butterfield Road, Oak Brook, Illinois

Attention:  Mark Zalatoris

Fax:  630-218-7350

 

with
a copy to:

Shefsky & Froelich Ltd.

Attention:  Michael J. Choate

111 East Wacker Drive, Suite 2800

Chicago, Illinois  60611

Fax:  312-275-7554

 

if
to the Trustee, to:

Wells Fargo Bank, National Association

230
W. Monroe Street, Suite 2900

Chicago, IL
60606

Attention:
Corporate Trust Services

Fax:  312-726-2158

 

Such
notices or communications shall be effective when received.

 

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

 

Any
notice or communication mailed to a Holder of a Security shall be mailed by
first-class mail or delivered by an overnight delivery service to it at its
address shown on the register kept by the Primary Registrar.

 

Failure
to mail a notice or communication to a Holder of a Security or any defect in it
shall not affect its sufficiency with respect to other Holders of
Securities.  If a notice or 

 

61

 

communication
to a Holder of a Security is mailed in the manner provided above, it is duly
given, whether or not the addressee receives it.

 

If
the Company mails any notice to a Holder of a Security, it shall mail a copy to
the Trustee and each Registrar, Paying Agent and Conversion Agent.

 

Section 12.03.        Communications
by Holders with Other Holder.  Holders of Securities may communicate
pursuant to TIA Section 312(b) with other Holders of Securities with
respect to their rights under this Indenture or the Securities.  The Company, the Trustee, the Registrar and
any other person shall have the protection of TIA Section 312(c).

 

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

 

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

 

(2)           an Opinion of Counsel stating that,
in the opinion of such counsel, all such conditions precedent (including any
covenants, compliance with which constitutes a condition precedent) have been
complied with.

 

(b)           Each
Officers’ Certificate and Opinion of Counsel with respect to compliance with a
condition or covenant provided for in this Indenture shall include:

 

(1)           a statement that the person making
such certificate or opinion has read such covenant or condition;

 

(2)           a brief statement as to the nature
and scope of the examination or investigation upon which the statements or opinions
contained in such certificate or opinion are based;

 

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

 

(4)           a statement as to whether or not, in
the opinion of such person, such condition or covenant has been complied with;
provided, however, that with respect to matters of fact an Opinion of Counsel
may rely on an Officers’ Certificate or certificates of public officials.

 

Section 12.05.        Record
Date for Vote or Consent of Holders of Securities.  The Company (or, in the event deposits have
been made pursuant to Section 9.01, the Trustee) may set a record date for
purposes of determining the identity of Holders entitled to vote or consent to
any action by vote or consent authorized or permitted under this Indenture,
which record date shall not be more than 30 days prior to the date of the
commencement of solicitation of such action. 

 

62

 

Notwithstanding the provisions of Section 10.04,
if a record date is fixed, those persons who were Holders of Securities at the
close of business on such record date (or their duly designated proxies), and
only those persons, shall be entitled to take such action by vote or consent or
to revoke any vote or consent previously given, whether or not such persons
continue to be Holders after such record date.

 

Section 12.06.        Rules by
Trustee, Paying Agent, Registrar and Conversion Agent. The Trustee
may make reasonable rules (not inconsistent with the terms of this
Indenture) for action by or at a meeting of Holders.  Any Registrar, Paying Agent or Conversion
Agent may make reasonable rules for its functions.

 

Section 12.07.        Legal
Holidays.  A “Legal
Holiday” is a Saturday, Sunday or a day on which state or federally chartered
banking institutions in The City of New York , New York or Chicago, Illinois
are authorized or obligated to close.  If
a payment date is a Legal Holiday, payment shall be made on the next succeeding
day that is not a Legal Holiday, and no interest shall accrue for the
intervening period.  If a Regular Record
Date is a Legal Holiday, the record date shall not be affected.

 

Section 12.08.        Governing
Law.  This Indenture and the
Securities shall be governed by, and construed in accordance with, the internal
laws of the State of New York.

 

Section 12.09.        No
Adverse Interpretation of Other Agreements.  This Indenture may not be used to interpret
another indenture, loan or debt agreement of the Company or a Subsidiary of the
Company.  Any such indenture, loan or
debt agreement may not be used to interpret this Indenture.

 

Section 12.10.        No
Recourse Against Others.  All liability
described in paragraph 15 of the Securities of any director, officer, employee
or shareholder, as such, of the Company hereby is waived and released by each
of the Holders.

 

Section 12.11.        No
Security Interest Created. 
Nothing in this Indenture or in the Securities, express or implied,
shall be construed to constitute a security interest under the Uniform
Commercial Code or similar legislation, now in effect or hereafter enacted and
made effective, in any jurisdiction.

 

Section 12.12.        Successors.  All agreements of the Company in this
Indenture and the Securities shall bind its successor.  All agreements of the Trustee in this
Indenture shall bind its successor.

 

Section 12.13.        Multiple
Counterparts.  The parties
may sign multiple counterparts of this Indenture.  Each signed counterpart shall be deemed an
original, but all of them together represent the same agreement.

 

Section 12.14.        Separability.  If any provisions in this Indenture or in the
Securities shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

 

63

 

Section 12.15.        Table
of Contents, Headings, Etc.  The table of contents, cross-reference sheet
and headings of the Articles and Sections of this Indenture have been inserted
for convenience of reference only, are not to be considered a part hereof, and
shall in no way modify or restrict any of the terms or provisions hereof.

 

Section 12.16.        Force
Majeure.  In no event
shall the Trustee be responsible or liable, nor shall the Company be
responsible or liable to the Trustee, for any failure or delay in the
performance of their respective obligations hereunder arising out of or caused
by, directly or indirectly, forces beyond their control, including, without
limitation strikes, work stoppages, accidents, acts of war or terrorism, civil
or military disturbances, nuclear or natural catastrophes or acts of God, and
interruptions, loss or malfunctions of utilities; it being understood that the
Trustee or the Company, as the case may be, shall use reasonable efforts which
are consistent with accepted practices to resume performance as soon as
practicable under the circumstances.

 

[SIGNATURE PAGE FOLLOWS]

 

64

 

IN
WITNESS WHEREOF, the parties hereto have hereunto set their hands as of the
date and year first above written.

 

	
   

  	
  INLAND
  REAL ESTATE CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Mark E. Zalatoris

  
	
   

  	
  Name:
  Mark E. Zalatoris

  
	
   

  	
  Title:
  President and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WELLS
  FARGO BANK, NATIONAL ASSOCIATION, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Gregory S. Clarke

  
	
   

  	
  Name:
  Gregory S. Clarke

  
	
   

  	
  Title: Vice President

  

 

[SIGNATURE PAGE TO
INDENTURE]

 

 

EXHIBIT A

 

[FORM OF FACE OF SECURITY]

 

UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE
TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.  THIS SECURITY IS A GLOBAL SECURITY WITHIN THE
MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME
OF A DEPOSITARY OR A NOMINEE THEREOF. 
THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A
PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN
PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE
TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY
OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE
DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY
OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.(1)

 

(1)          This paragraph should be included only if the
Security is a Global Security.

 

A-1

 

INLAND REAL ESTATE CORPORATION

5.0% Convertible Senior Notes due 2029

 

	
  No. 1

  	
  CUSIP: 457461 AC 5

  

 

INLAND
REAL ESTATE CORPORATION, a State of Maryland corporation, promises to pay to
Cede & Co. or registered assigns the principal amount of TWENTY-NINE
MILLION TWO HUNDRED FIFTEEN THOUSAND DOLLARS ($29,215,000) on  November 15, 2029.

 

This
Security shall bear interest as specified on the other side of this
Security.  This Security is convertible
as specified on the other side of this Security.

 

Additional
provisions of this Security are set forth on the other side of this Security.

 

Dated:  August 10, 2010

 

[SIGNATURE PAGE FOLLOWS]

 

A-2

 

IN
WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

 

	
   

  	
  INLAND
  REAL ESTATE

  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Dated:  August 10, 2010

 

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

 

Wells
Fargo Bank, National Association

as Trustee

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  	
   

  

 

A-3

 

[FORM OF REVERSE SIDE OF SECURITY]

 

INLAND REAL ESTATE CORPORATION

CONVERTIBLE SENIOR NOTES DUE 2029

 

This
Security is one of a duly authorized issue of notes, debentures, bonds, or
other evidences of indebtedness of the Company (hereinafter called the “Securities”)
of the series hereinafter specified, all issued or to be issued under and
pursuant to an Indenture, dated as of August 10, 2010 between the Company
and Wells Fargo Bank, National Association, as trustee, and reference is hereby
made to the Indenture, and all modifications and amendments and indentures
supplemental thereto relating to the Securities, for a description of the
rights, limitations of rights, obligations, duties, and immunities thereunder
of the Trustee, the Company and the Holders of the Securities and the terms
upon which the Securities are authenticated and delivered.  Terms used herein without definition and
which are defined in the Indenture have the meanings assigned to them in the
Indenture.

 

1.                                       INTEREST

 

The
Securities shall bear interest at the rate of 5.0% per annum from
August 10, 2010 or from the most recent Interest Payment Date (as defined
below) to which interest has been paid or duly provided for, as the case may
be, payable semi annually in arrears on May 15 and November 15 of
each year (each, an “Interest Payment Date”), commencing on November 15,
2010, until the principal hereof is paid or duly made available for
payment.  Interest payable on each
Interest Payment Date shall equal the amount of interest accrued for the period
commencing on and including the immediately preceding Interest Payment Date in
respect of which interest has been paid or duly provided for (or commencing on
and including August 10, 2010, if no interest has been paid or duly
provided for) and ending on and including the day preceding such Interest
Payment Date.  Interest on the Securities
will be computed on the basis of a 360-day year consisting of twelve 30-day
months.

 

2.                                       METHOD OF
PAYMENT

 

Except
as provided in the Indenture, the Company shall pay interest on the Securities
to the Persons who are Holders of record of Securities at the close of business
(whether or not a Business Day) on the May 1 and November 1
immediately preceding the applicable Interest Payment Date (each, a “Regular
Record Date”).  Holders must surrender
Securities to a Paying Agent and comply with the other terms of the Indenture
to collect the principal amount, Redemption Price, Optional Repurchase Price or
Change in Control Purchase Price of the Securities, plus, if applicable,
accrued and unpaid interest payable as herein provided at maturity, upon
redemption at the Company’s option or repurchase at the Holder’s option.  The Company shall pay, in money of the United
States that at the time of payment is legal tender for payment of public and
private debts, all amounts due in cash with respect to the Securities on the
dates and in the manner provided in this Security and the Indenture.

 

3.                                       PAYING AGENT,
CONVERSION AGENT AND SECURITY REGISTRAR

 

Initially,
the Trustee shall act as Paying Agent, Conversion Agent and Security
Registrar.  The Company hereby initially
designates the Corporate Trust Office of the Trustee as the office 

 

A-4

 

to
be maintained by it where this Security may be presented for payment,
registration of transfer or exchange, where notices or demands to or upon the
Company in respect of this Security or the Indenture may be served and where
the Securities may be surrendered for conversion in accordance with the
provisions of paragraph 6 hereof and the Indenture.  The Company may appoint and change any Paying
Agent, Conversion Agent, Security Registrar or co-registrar or approve a change
in the office through which any Paying Agent acts without notice, other than
notice to the Trustee.

 

4.                                       REDEMPTION BY
THE COMPANY

 

The
Company shall not have the right to redeem any Securities prior to
November 21, 2014, except to preserve its status as a real estate
investment trust.  If the Company
determines it is necessary to redeem the Securities in order to preserve its
status as a real estate investment trust, the Company may redeem the Securities
then Outstanding, in whole or in part, at 100% of the principal amount of the
Securities to be redeemed plus any accrued but unpaid interest to but excluding
the Redemption Date.

 

The
Company shall have the right to redeem the Securities for cash, in whole or in
part at any time or from time to time, on or after November 21, 2014 at
100% of the principal amount of the Securities to be redeemed plus any accrued
but unpaid interest to but excluding the Redemption Date (the “Redemption Price”).

 

Notice
of redemption at the option of the Company shall be mailed at least 30 days but
not more than 60 days before the Redemption Date to each Holder of Securities
to be redeemed at the Holder’s registered address.  Securities in denominations larger than
$1,000 principal amount may be redeemed in part but only in integral multiples
of $1,000 principal amount.

 

5.                                       OPTIONAL
REPURCHASE RIGHTS; REPURCHASE AT OPTION OF HOLDER UPON A CHANGE IN CONTROL

 

(a)                                  Subject to the
terms and conditions of the Indenture, a Holder shall have the right to require
the Company to repurchase all of its Securities, or any portion of the
principal amount thereof that is equal to $1,000 or an integral multiple
thereof, on each of November 15, 2014, November 15, 2016, November 15,
2019 and November 15, 2024 (each, an “Optional Repurchase Date”) for cash
equal to 100% of the principal amount of the Securities to be repurchased plus
any accrued but unpaid interest to but excluding such Optional Repurchase Date
(the “Optional Repurchase Price”), upon delivery to the Paying Agent of an
Optional Repurchase Notice containing the information set forth in the
Indenture, from the opening of business on the date that is 20 Business Days
prior to such Optional Repurchase Date until the close of business on the third
Business Day prior to such Optional Repurchase Date and upon compliance with
the other terms of the Indenture.

 

(b)                                 If a Change in
Control occurs at any time, a Holder shall have the right, at such Holder’s
option and subject to the terms and conditions of the Indenture, to require the
Company to repurchase all or any of such Holder’s Securities having a principal
amount equal to $1,000 or an integral multiple thereof on the date (the “Change
in Control Purchase Date”) specified by the Company in the Company Notice
(which date shall be no earlier than 15 days and no later than 

 

A-5

 

45
days after the date of such Company Notice) for cash equal to the 100% of the
principal amount of the Securities to be repurchased plus any accrued but
unpaid interest to but excluding the Change in Control Purchase Date (the “Change
in Control Purchase Price”).

 

(c)                                  Holders have
the right to withdraw any Optional Repurchase Notice or Change in Control
Purchase Notice, as the case may be, by delivery to the Paying Agent of a
written notice of withdrawal in accordance with the provisions of the
Indenture.

 

(d)                                 If the Paying
Agent holds, in accordance with the terms of the Indenture, money sufficient to
pay the Optional Repurchase Price or Change in Control Purchase Price of such
Securities on the Optional Repurchase Date or Change in Control Purchase Date,
as the case may be, then, on and after such date and as set forth in the
Indenture, such Securities shall cease to be Outstanding and interest on such
Securities shall cease to accrue, and all other rights of the Holder shall
terminate (other than the right to receive the Optional Repurchase Price or
Change in Control Purchase Price upon delivery or transfer of the Securities).

 

6.                                       CONVERSION

 

The
Securities shall be convertible into the consideration specified in the
Indenture at such times, upon compliance with such conditions and upon the
terms set forth in the Indenture.

 

The
initial Conversion Rate shall be 102.8807 shares of Common Stock per $1,000
principal amount of Securities, subject to adjustment in certain circumstances
as specified in the Indenture. 
Securities tendered for conversion by a Holder after the close of
business on any Regular Record Date for an interest payment and on or prior to
the corresponding Interest Payment Date must be accompanied by payment of an
amount equal to the interest that such Holder is to receive on such Securities
on such Interest Payment Date; provided, however,
that no such payment of interest shall be required (1) if such Securities
have been called for redemption on a Redemption Date that is after such Regular
Record Date and on or prior to such Interest Payment Date, (2) if a Change
in Control Redemption Date has been scheduled that is after such Regular Record
Date and on or prior to such Interest Payment Date, or (3) with respect to
overdue interest, if any overdue interest exists at the time of conversion with
respect to such Securities.

 

The
Conversion Rate applicable to each Security in respect of which a notice of
conversion is received by the Conversion Agent from and including the Effective
Date of a Change in Control resulting from a transaction described in clauses
(1) through (4) of the definition of Change in Control up to and
including the 30th Business Day following the Effective Date of such Change in
Control shall be increased as specified in the Indenture.

 

To
convert this Security if this Security is in book-entry form, the Holder must
convert by book-entry transfer to the Conversion Agent through the facilities
of DTC and the conversion notice must comply with all applicable DTC
procedures.  To convert this Security if
this Security is held in certificated form, the Holder must (a) complete and
manually sign the conversion notice set forth below (or complete and manually
sign a facsimile of such notice) and deliver such notice to the Conversion
Agent at the office maintained by the Conversion Agent for such purpose,
(b) surrender such Security to the Conversion Agent, (c) furnish
appropriate

 

A-6

 

endorsements
and transfer documents if required by the Conversion Agent and (d) pay any
transfer or similar tax, if required. The date on which the Holder satisfies
all such requirements shall be deemed to be the date on which this Security
shall have been tendered for conversion.

 

If
the Holder has delivered an Optional Repurchase Notice or a Change in Control
Purchase Notice requiring the Company to repurchase all or a portion of this
Security pursuant to paragraph 5 hereof, then this Security (or portion hereof
subject to such Optional Repurchase Notice or Change in Control Purchase
Notice) may be converted only if the Optional Repurchase Notice or Change in
Control Purchase Notice is withdrawn in accordance with the terms of the
Indenture.

 

7.                                       RANKING

 

The
Securities are senior unsecured obligations of the Company and shall rank pari
passu in right of payment with all other senior unsecured indebtedness of the
Company from time to time outstanding.

 

8.                                       DEFAULTED
INTEREST

 

Except
as otherwise specified herein or in the Indenture, any defaulted Interest on
this Security shall forthwith cease to be payable to the Holder hereof on the
relevant Interest Payment Date by virtue of having been paid to such Holder,
and such defaulted Interest may be paid by the Company as provided for in
Section 5.01 of the Indenture.

 

9.                                       DENOMINATIONS;
TRANSFER; EXCHANGE

 

This
Security is issuable only in fully registered, book-entry form, in
denominations of $1,000 and integral multiples thereof.  This Security may be exchanged for a like
aggregate principal amount of Securities of other authorized denominations at
the office or agency of the Company or in the manner and subject to the
limitations provided herein and in the Indenture, but without the payment of
any charge except for any tax or other governmental charge imposed in
connection therewith.  Upon due
presentment for registration of transfer of this Security at the office or
agency of the Company, one or more new Securities of authorized denominations
in an equal aggregate principal amount will be issued to the transferee in
exchange therefor, and bearing such restrictive legends as may be required by
the Indenture, but without payment of any charge except for any tax or other
governmental charge imposed in connection therewith.  In the event of any redemption in part, the
Company shall not be required to: 
(i) issue or register the transfer or exchange of any Security
during a period beginning at the opening of business 15 days before any
selection of Securities for redemption and ending at the close of business on
the earliest date on which the relevant notice of redemption is deemed to have
been given to all Holders of Securities to be so redeemed, or
(ii) register the transfer or exchange of any Security so selected for redemption,
in whole or in part, except the unredeemed portion of any Security being
redeemed in part.

 

A-7

 

10.                                 PERSONS DEEMED
OWNERS

 

The
Holder of this Security may be treated as the owner of this Security for all
purposes, and none of the Company or the Trustee nor any authorized agent of
the Company or the Trustee shall be affected by any notice to the contrary,
except as required by law.

 

11.                                 MODIFICATION
AND AMENDMENT; WAIVER

 

The
Indenture permits, with certain exceptions as therein provided, the amendment
thereof and the modification of the rights and obligations of the Company and
the rights of the Holders of the Securities under the Indenture at any time by
the Company and the Trustee with the consent of the Holders of a majority in
the aggregate principal amount of all Outstanding Securities affected thereby
(voting together as a single class).  The
Indenture also provides that certain amendments or modifications may not be
made without the consent of each Holder to be affected thereby.  Furthermore, provisions in the Indenture
permit the Holders of a majority in the aggregate principal amount of the
Outstanding Securities of any series, in certain instances, to waive, on behalf
of all of the Holders of Securities of such series, certain past defaults under
the Indenture and their consequences. 
Any such waiver by the Holder of this Security shall be conclusive and
binding upon such Holder and upon all future Holders of this Security and other
Securities issued upon the registration of transfer hereof or in exchange
hereof, or in lieu hereof, whether or not notation of such consent or waiver is
made upon this Security.

 

12.                                 DEFAULTS AND
REMEDIES

 

The
Indenture sets forth events that constitute an Event of Default under the
Indenture.  If an Event of Default shall
occur and be continuing, there may be declared due and payable the principal
amount (together with accrued and unpaid interest) on the Securities in the
manner and with the effect provided in the Indenture.  If certain bankruptcy or insolvency events
occur and continue with respect to the Company or a Significant Subsidiary, the
Securities shall automatically become due and payable in accordance with the
terms of the Indenture.

 

13.                                 CONSOLIDATION,
MERGER, AND SALE OF ASSETS

 

In
the event of a consolidation or merger of the Company or a sale, lease or
conveyance of all or substantially all of the assets of the Company as
described in Article 6 of the Indenture the successor entity to the
Company shall succeed to and be substituted for the Company and may exercise
the rights and powers of the Company under the Indenture, and thereafter,
except in the case of a lease, the Company shall be relieved of all obligations
and covenants under the Indenture and the Securities.

 

14.                                 TRUSTEE AND
AGENT DEALINGS WITH THE COMPANY

 

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

 

A-8

 

15.                                 CALCULATIONS IN
RESPECT OF THE SECURITIES

 

Except
as otherwise specifically stated herein or in the Indenture, all calculations
to be made in respect of the Securities shall be the obligation of the
Company.  All calculations made by the
Company or its agent as contemplated pursuant to the terms hereof and of the
Indenture shall be final and binding on the Company and the Holders absent
manifest error.  The Company shall
provide a schedule of calculations to the Trustee, and the Trustee shall be
entitled to rely upon the accuracy of the calculations by the Company without
independent verification.  The Trustee
shall forward calculations made by the Company to any Holder of Securities upon
request.

 

16.                                 GOVERNING LAW

 

The
Indenture and this Security shall be governed by and construed in accordance
with the internal laws of the State of New York.

 

A-9

 

ASSIGNMENT FORM

 

To
assign this Security, fill in the form below:

 

I
or we assign and transfer this Security to

 

	
   

  

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

 

	
   

  
	
   

  
	
   

  

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

 

and
irrevocably appoint

 

	
   

  

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

 

	
   

  	
   

  	
  Your
  Signature

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Sign
  exactly as your name appears on the 

  other side of this Security)

  
	
   

  	
   

  	
   

  
	
  * Signature guaranteed by:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  

 

*                 The signature
must be guaranteed by an institution which is a member of one of the following
recognized signature guaranty programs: 
(i) the Securities Transfer Agent Medallion Program (STAMP);
(ii) the New York Stock Exchange Medallion Program (MSP); (iii) the
Stock Exchange Medallion Program (SEMP); or (iv) such other guaranty
program acceptable to the Trustee.

 

A-10

 

CONVERSION NOTICE

 

To
convert this Security into Common Stock of the Company, check the box:

 

To
convert only part of this Security, state the principal amount to be converted
(must be $1,000 or a integral multiple of $1,000): 
$              .

 

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

 

	
   

  

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

 

	
   

  
	
   

  
	
   

  

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

 

	
   

  	
   

  	
  Your
  Signature

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Sign
  exactly as your name appears on the

  other side of this Security)

  
	
   

  	
   

  	
   

  
	
  *
  Signature guaranteed by:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  

 

*                 The signature
must be guaranteed by an institution which is a member of one of the following
recognized signature guaranty programs: 
(i) the Securities Transfer Agent Medallion Program (STAMP);
(ii) the New York Stock Exchange Medallion Program (MSP); (iii) the
Stock Exchange Medallion Program (SEMP); or (iv) such other guaranty
program acceptable to the Trustee.

 

A-11

 

SCHEDULE OF EXCHANGES OF SECURITIES (1)

 

The
following exchanges, purchase, redemptions, purchases or conversions of a part
of this Global Security have been made:

 

	
  Principal
  Amount of this

  Global Security

  Following Such Decrease

  Date of Exchange (or

  Increase)

  	
   

  	
  Authorized Signatory of

  Securities Custodian

  	
   

  	
  Amount of Decrease in

  Principal Amount of this

  Global Security

  	
   

  	
  Amount of Increase in

  Principal Amount of this

  Global Security

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(1)          This schedule should be included only if the
Security is a Global Security.

 

A-12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]