Document:

internationalstem_8k-ex1002.htm

    EXHIBIT
10.2

     

    INTERNATIONAL
STEM CELL CORPORATION

     

    CERTIFICATE
OF DESIGNATIONS OF PREFERENCES,

    RIGHTS
AND LIMITATIONS

    OF

    SERIES E
PREFERRED STOCK

     

    The
undersigned, Kenneth C. Aldrich and William B. Adams, do hereby certify
that:

     

    1.    They are the
Chief Executive Officer and Secretary, respectively, of International Stem Cell
Corporation, a Delaware corporation (the “Corporation”).

     

    2.           The
Corporation is authorized to issue 20,000,000 shares of preferred stock,
3,400,040 of which have been issued or are outstanding.

     

    3.           The
following resolutions were duly adopted by the Board of Directors:

     

    WHEREAS,
the Certificate of Incorporation of the Corporation provides for a class of its
authorized stock known as preferred stock, comprised of 20,000,000 shares,
$0.001 par value per share, issuable from time to time in one or more
series;

     

    WHEREAS,
the Board of Directors of the Corporation is authorized to fix the dividend
rights, dividend rate, voting rights, conversion rights, rights and terms of
redemption and liquidation preferences of any wholly unissued series of
preferred stock and the number of shares constituting any series and the
designation thereof, of any of them; and

     

    WHEREAS,
it is the desire of the Board of Directors of the Corporation, pursuant to its
authority as aforesaid, to fix the rights, preferences, restrictions and other
matters relating to a series of preferred stock, which shall consist of up to
500 shares of the preferred stock which the Corporation has the authority to
issue, as follows:

     

    NOW,
THEREFORE, BE IT RESOLVED, that the Board of Directors does hereby provide for
the issuance of a series of preferred stock for cash or exchange of other
securities, rights or property and does hereby fix and determine the rights,
preferences, restrictions and other matters relating to such series of preferred
stock as follows:

     

    TERMS OF
PREFERRED STOCK

     

    1.    Designation, Amount and Par
Value.  The series of preferred stock shall be designated as
the Corporation’s Series E Preferred Stock (the “Series E Preferred
Stock”) and the number of shares so designated shall be 500 (which shall
not be subject to increase without the consent of all of the holders of the
Series E Preferred Stock (each a “Holder” and
collectively, the “Holders”).  Each
share of Series E Preferred Stock shall have a par value of $0.001 per share.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    2.    Dividends and Other
Distributions.  Commencing on the date of the issuance of any
such shares of Series E Preferred Stock (each respectively an “Issuance Date”),
Holders of Series E Preferred Stock shall be entitled to receive dividends on
each outstanding share of Series E Preferred Stock (“Dividends”), which
shall accrue in shares of Series E Preferred Stock on a daily basis at a rate
equal to 10.0%
per annum.

     

    a.    Any
calculation of the amount of such Dividends payable pursuant to the provisions
of this Section 2 shall
be made based on a 365-day year and on the number of days actually elapsed
during the applicable calendar quarter, compounded annually.

     

    b.    So long
as any shares of Series E Preferred Stock are outstanding, no dividends or other
distributions will be paid, declared or set apart with respect to any Junior
Securities (as defined below).  As used herein, “Junior Securities”
means any series or class of the capital stock of the Corporation now or
hereafter authorized or issued by the Corporation ranking junior to the Series E
Preferred Stock with respect to dividends or distributions or upon the
liquidation, distribution of assets, dissolution or winding-up of the
Corporation, including, without limitation, the Corporation’s common stock, par
value $0.001 per share (“Common Stock”); provided that notwithstanding the foregoing the
Corporation may pay, declare or set apart
any dividend or distribution required to be paid on any shares of Series D
Preferred Stock or other preferred stock.  The Common Stock
shall not be redeemed while the Series E Preferred Stock is
outstanding.

     

    3.    Protective
Provision.  So long as any shares of Series E Preferred Stock
are outstanding, the Corporation shall not, without the affirmative approval of
the Holders of a majority of the shares of the Series E Preferred Stock then
outstanding, (a) alter or change adversely the powers, preferences or
rights given to the Series E Preferred Stock or alter or amend this Certificate
of Designations, (b) authorize or create any class of stock ranking as to
distribution of assets upon a liquidation senior to the Series E Preferred
Stock, (c) amend its certificate or articles of incorporation or other
charter documents in breach of any of the provisions hereof, (d) increase
the authorized number of shares of Series E Preferred Stock, (e) liquidate,
dissolve or wind-up the business and affairs of the  Corporation, or
effect any Deemed Liquidation Event (as defined below), or (f) enter into
any agreement with respect to the foregoing.

     

    a.    A “Deemed Liquidation
Event” shall mean: (i) a merger or consolidation in which the Corporation
is a constituent party or a subsidiary of the Corporation is a constituent party
and the Corporation issues shares of its capital stock pursuant to such merger
or consolidation, except any such merger or consolidation involving the
Corporation or a subsidiary in which the shares of capital stock of the
Corporation outstanding immediately prior to such merger or consolidation
continue to represent, or are converted into or exchanged for shares of capital
stock that represent, immediately following such merger or consolidation, at
least a majority, by voting power, of the capital stock of the surviving or
resulting corporation or if the surviving or resulting corporation is a wholly
owned subsidiary of another corporation immediately following such merger or
consolidation, the parent corporation of such surviving or resulting
corporation; or (ii) the sale, lease, transfer, exclusive license or other
disposition, in a single transaction or series of related transactions, by the
Corporation or any subsidiary of the Corporation of all or substantially all the
assets of the Corporation and its subsidiaries taken as a whole,  or
the sale or disposition (whether by merger or otherwise) of one or more
subsidiaries of the Corporation if substantially all of the assets of the
Corporation and its subsidiaries taken as a whole are held by such subsidiary or
subsidiaries, except where such sale, lease, transfer, exclusive license or
other disposition is to a wholly owned subsidiary of the
Corporation.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    b.    The
Corporation shall not have the power to effect a Deemed Liquidation Event
referred to in Section
3.a
unless the agreement or plan of merger or consolidation for such transaction
provides that the consideration payable to the stockholders of the Corporation
shall be allocated among the holders of capital stock of the Corporation in
accordance with Section
4

     

    4.    Liquidation.

     

    a.    Upon any
liquidation, dissolution or winding up of the Corporation, whether voluntary or
involuntary, after payment or provision for payment of debts and other
liabilities of the Corporation, before any distribution or payment shall be made
to the holders of any other equity securities of the Corporation by reason of
their ownership thereof, the Holders of Series E Preferred Stock shall first be
entitled to be paid out of the assets of the Corporation available for
distribution to its stockholders an amount with respect to each share of Series
E Preferred Stock equal to $10,000.00 (the “Original Series E Issue
Price”), plus any accrued but unpaid Dividends thereon (collectively, the
“Series E Liquidation
Value”).

     

    b.    After
payment has been made to the Holders of the Series E Preferred Stock of the full
amount of the Series E Liquidation Value, any remaining assets of the
Corporation shall be distributed among the holders of the Corporation's Junior
Securities in accordance with the Corporation’s  Certificates of
Designation and Certificate of Incorporation, as amended.

     

    c.    If, upon
any liquidation, dissolution or winding up of the Corporation, the assets of the
Corporation shall be insufficient to make payment in full to all Holders, then
such assets shall be distributed among the Holders at the time outstanding,
ratably in proportion to the full amounts to which they would otherwise be
respectively entitled.

     

    5.    Redemption.

     

    a.    Corporation's Redemption
Option.  Upon or after the first anniversary of the initial
Issuance Date, the Corporation shall have the right, at the Corporation's
option, to redeem all or a portion of the shares of Series E Preferred Stock, at
a price per share of Series E Preferred Stock (the “Corporation Redemption
Price”) equal to the Series E Liquidation Value plus the following
percentages of the Original Series E Issue Price determined by reference to the
original Issuance Date of such shares of Series E Preferred Stock:

    
    

     

    
      	 	If
      the redemption occurs	
              Additional
      percentage

            	 
	 	 	 	 
	 	
              After first
      anniversary of issuance but prior
      to second anniversary of issuance

            	
              26%

            	 
	 	 	 	 
	 	
              After second
      anniversary of issuance but prior
      to third anniversary of issuance

            	
              17%

            	 
	 	 	 	 
	 	
              After third
      anniversary of issuance but prior
      to fourth anniversary of issuance

            	
              8%

            	 
	 	 	 	 
	 	
              After fourth
      anniversary of issuance

            	
              0%

            	 

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    b.    Mechanics of
Redemption.  If the Corporation elects to redeem any of the
Holders' Series E Preferred Stock then outstanding by delivering written notice
thereof via facsimile and overnight courier (“Notice of Redemption at
Option of Corporation”) to the Holder, which Notice of Redemption at
Option of Corporation shall indicate (A) the number of shares of Series E
Preferred Stock that the Corporation is electing to redeem and (B) the
Corporation Redemption Price.

     

    c.    Payment of Redemption
Price.  Upon receipt of a Notice of Redemption at Option of
Corporation by any Holder, such Holder shall promptly submit to the Corporation
such Holder’s Series E Preferred Stock certificates.  Upon receipt of
such Holder’s Series E Preferred Stock certificates, the Corporation shall pay
the Corporation Redemption Price in cash to such Holder.

     

    6.    Transferability.
The Series E Preferred Stock may only be sold, transferred, assigned,
pledged or otherwise disposed of (“Transfer”) in
accordance with state and federal securities laws.  The Corporation
shall keep at its principal office, or at the offices of a transfer agent, a
register of the Series E Preferred Stock.  Upon the surrender of any
certificate representing Series E Preferred Stock at such place, the
Corporation, at the request of the record Holder of such certificate, shall
execute and deliver (at the Corporation's expense) a new certificate or
certificates in exchange therefor representing in the aggregate the number of
shares represented by the surrendered certificate.  Each such new
certificate shall be registered in such name and shall represent such number of
shares as is requested by the Holder of the surrendered certificate and shall be
substantially identical in form to the surrendered certificate.

     

    7.    Miscellaneous.

     

    a.    Notices.  Any
and all notices to the Corporation shall be addressed to the Corporation's
President at the Corporation's principal place of business on file with the
Secretary of State of the State of Delaware.  Any and all notices or
other communications or deliveries to be provided by the Corporation to any
Holder hereunder shall be in writing and delivered personally, by facsimile,
sent by a nationally recognized overnight courier service addressed to each
Holder at the facsimile telephone number or address of such Holder appearing on
the books of the Corporation, or if no such facsimile telephone number or
address appears, at the principal place of business of the Holder. Any notice or
other communication or deliveries hereunder shall be deemed given and effective
on the earliest of (i) the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile telephone number
specified in this Section 7.a prior to
5:30 p.m.  (New York City time), (ii) the date after the
date of transmission, if such notice or communication is delivered via facsimile
at the facsimile telephone number specified in this Section 7.a no later than
5:30 p.m.  (New York City time) on any date and earlier than
11:59 p.m.  (New York City time) on such date, (iii) the
second business day following the date of mailing, if sent by nationally
recognized overnight courier service, or (iv) upon actual receipt by the
party to whom such notice is required to be given.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    b.    Lost or Mutilated Preferred
Stock Certificate.  Upon receipt of evidence reasonably
satisfactory to the Corporation (an affidavit of the registered Holder shall be
satisfactory) of the ownership and the loss, theft, destruction or mutilation of
any certificate evidencing shares of Series E Preferred Stock, and in the case
of any such loss, theft or destruction upon receipt of indemnity reasonably
satisfactory to the Corporation (provided that if the Holder is a financial
institution or other institutional investor its own agreement shall be
satisfactory) or in the case of any such mutilation upon surrender of such
certificate, the Corporation, shall execute and deliver in lieu of such
certificate a new certificate of like kind representing the number of shares of
such class represented by such lost, stolen, destroyed or mutilated certificate
and dated the date of such lost, stolen, destroyed or mutilated
certificate.

     

    c.    Headings.  The
headings contained herein are for convenience only, do not constitute a part of
this Certificate of Designations and shall not be deemed to limit or affect any
of the provisions hereof.

     

    RESOLVED,
FURTHER, that the Chairman, the president or any vice-president, and the
secretary or any assistant secretary, of the Corporation be and they hereby are
authorized and directed to prepare and file a Designation of Preferences, Rights
and Limitations of Series E Preferred Stock in accordance with the foregoing
resolution and the provisions of Delaware law.

     

    IN
WITNESS WHEREOF, the undersigned have executed this Certificate this 30 of June
2009.

     

     

    
      	/s/ Kenneth C.
      Aldrich	 	 	 	 
	      
              Kenneth
      C. Aldrich

              Chief
      Executive Officer

            	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	/s/ William B.
      Adams	 	 	 	 
	      
              William
      B. Adams

              Secretary

            	 	 	 	 

    

    
       

       

       

      5Exhibit 4.1

 

REGIS CORPORATION, as Issuer

 

and

 

WELLS FARGO BANK, N.A., as Trustee

 

 

 

INDENTURE

 

Dated as of •, 2009

 

 

 

•% Convertible Senior Notes due 2014

 

 

TABLE
OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE 1

  DEFINITIONS AND INCORPORATION BY REFERENCE

  	
   

  
	
   

  	
   

  
	
  Section 1.01.

  	
  Definitions

  	
  1

  
	
  Section 1.02.

  	
  Other Definitions

  	
  8

  
	
  Section 1.03.

  	
  Trust Indenture Act Provisions

  	
  9

  
	
  Section 1.04.

  	
  Rules Of Construction

  	
  9

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
   

  
	
  THE
  SECURITIES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.01.

  	
  Form and Dating

  	
  10

  
	
  Section 2.02.

  	
  Execution and Authentication

  	
  12

  
	
  Section 2.03.

  	
  Registrar, Paying Agent and Conversion Agent

  	
  13

  
	
  Section 2.04.

  	
  Paying Agent To Hold Money In Trust

  	
  13

  
	
  Section 2.05.

  	
  Conversion Agent To Hold Amounts In Trust

  	
  14

  
	
  Section 2.06.

  	
  Lists of Holders of Securities

  	
  14

  
	
  Section 2.07.

  	
  Transfer and Exchange

  	
  15

  
	
  Section 2.08.

  	
  Replacement Securities

  	
  16

  
	
  Section 2.09.

  	
  Outstanding Securities

  	
  16

  
	
  Section 2.10.

  	
  Treasury Securities

  	
  17

  
	
  Section 2.11.

  	
  Temporary Securities

  	
  17

  
	
  Section 2.12.

  	
  Cancellation

  	
  17

  
	
  Section 2.13.

  	
  Legend; Additional Transfer and Exchange
  Requirements

  	
  18

  
	
  Section 2.14.

  	
  CUSIP Numbers

  	
  19

  
	
  Section 2.15.

  	
  Calculations

  	
  20

  
	
  Section 2.16.

  	
  Payment of Interest; Interest Rights Preserved

  	
  20

  
	
  Section 2.17.

  	
  Computation of Interest

  	
  21

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

  	
   

  
	
  PURCHASE

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 3.01.

  	
  Repurchase at Option of Holders upon a Fundamental
  Change

  	
  21

  
	
  Section 3.02.

  	
  Withdrawal of Fundamental Change Repurchase Notice

  	
  24

  
	
  Section 3.03.

  	
  Deposit of Fundamental Change Repurchase Price

  	
  24

  
	
  Section 3.04.

  	
  Purchase of Securities In Open Market

  	
  25

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
   

  
	
  CONVERSION

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.01.

  	
  Right to Convert

  	
  25

  
	
  Section 4.02.

  	
  Conversion Procedures

  	
  27

  
	
  Section 4.03.

  	
  Settlement Upon Conversion

  	
  29

  

 

i

 

	
  Section 4.04.

  	
  Increased Conversion Rate Applicable to Securities
  Surrendered in Connection with Make-Whole Fundamental Changes

  	
  32

  
	
  Section 4.05.

  	
  Adjustment of Conversion Rate

  	
  34

  
	
  Section 4.06.

  	
  Effect of Reclassification, Consolidation, Merger or
  Sale

  	
  43

  
	
  Section 4.07.

  	
  Taxes on Shares Issued

  	
  45

  
	
  Section 4.08.

  	
  Reservation of Shares;
  Shares to be Fully Paid; Compliance With Governmental Requirements; Listing
  of Common Stock

  	
  45

  
	
  Section 4.09.

  	
  Responsibility of Trustee

  	
  46

  
	
  Section 4.10.

  	
  Notice to Holders Prior to Certain Actions

  	
  47

  
	
  Section 4.11.

  	
  Stockholder Rights Plans

  	
  47

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
   

  
	
  COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.01.

  	
  Payment of Securities

  	
  48

  
	
  Section 5.02.

  	
  Reports by Company

  	
  49

  
	
  Section 5.03.

  	
  Compliance Certificates

  	
  49

  
	
  Section 5.04.

  	
  Further Instruments and Acts

  	
  49

  
	
  Section 5.05.

  	
  Stay, Extension And Usury Laws

  	
  49

  
	
  Section 5.06.

  	
  Maintenance of Office or Agency

  	
  50

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6

  	
   

  
	
  CONSOLIDATION;
  MERGER; SALE OF ASSETS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.01.

  	
  Company May Consolidate, Etc., Only on Certain
  Terms

  	
  50

  
	
  Section 6.02.

  	
  Successor Substituted

  	
  51

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7

  	
   

  
	
  DEFAULT
  AND REMEDIES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 7.01.

  	
  Events of Default

  	
  51

  
	
  Section 7.02.

  	
  Acceleration

  	
  53

  
	
  Section 7.03.

  	
  Collection of Indebtedness and Suits for Enforcement
  by Trustee

  	
  54

  
	
  Section 7.04.

  	
  Trustee May File Proofs of Claim

  	
  55

  
	
  Section 7.05.

  	
  Trustee May Enforce Claims Without Possession of
  Securities

  	
  56

  
	
  Section 7.06.

  	
  Application of Money Collected

  	
  56

  
	
  Section 7.07.

  	
  Limitation on Suits

  	
  56

  
	
  Section 7.08.

  	
  Unconditional Right of Holders to Receive Payment
  and to Convert

  	
  57

  
	
  Section 7.09.

  	
  Restoration of Rights and Remedies

  	
  57

  
	
  Section 7.10.

  	
  Rights and Remedies Cumulative

  	
  58

  
	
  Section 7.11.

  	
  Delay or Omission Not Waiver

  	
  58

  
	
  Section 7.12.

  	
  Control by Holders

  	
  58

  
	
  Section 7.13.

  	
  Waiver of Past Defaults

  	
  58

  
	
  Section 7.14.

  	
  Undertaking for Costs

  	
  59

  
	
  Section 7.15.

  	
  Remedies Subject to Applicable Law

  	
  59

  

 

ii

 

	
  ARTICLE 8

  	
   

  
	
  TRUSTEE

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.01.

  	
  Duties of Trustee

  	
  59

  
	
  Section 8.02.

  	
  Notice of Default

  	
  60

  
	
  Section 8.03.

  	
  Certain Rights of Trustee

  	
  60

  
	
  Section 8.04.

  	
  Trustee Not Responsible for Recitals, Dispositions
  of Securities or Application of Proceeds Thereof

  	
  62

  
	
  Section 8.05.

  	
  Trustee and Agents May Hold Securities;
  Collections; etc.

  	
  62

  
	
  Section 8.06.

  	
  Money Held in Trust

  	
  62

  
	
  Section 8.07.

  	
  Compensation and Indemnification of Trustee and Its
  Prior Claim

  	
  63

  
	
  Section 8.08.

  	
  Conflicting Interests

  	
  63

  
	
  Section 8.09.

  	
  Trustee Eligibility

  	
  64

  
	
  Section 8.10.

  	
  Resignation and Removal; Appointment of Successor
  Trustee

  	
  64

  
	
  Section 8.11.

  	
  Acceptance of Appointment by Successor

  	
  65

  
	
  Section 8.12.

  	
  Merger, Conversion, Consolidation or Succession to
  Business

  	
  66

  
	
  Section 8.13.

  	
  Preferential Collection of Claims Against Company

  	
  66

  
	
  Section 8.14.

  	
  Reports By Trustee

  	
  67

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9

  	
   

  
	
  SATISFACTION
  AND DISCHARGE OF INDENTURE

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.01.

  	
  Satisfaction and
  Discharge of the Indenture

  	
  67

  
	
  Section 9.02.

  	
  Deposited Monies to Be
  Held in Trust by Trustee

  	
  68

  
	
  Section 9.03.

  	
  Paying Agent to Repay
  Monies Held

  	
  68

  
	
  Section 9.04.

  	
  Return of Unclaimed Monies

  	
  68

  
	
  Section 9.05.

  	
  Reinstatement

  	
  68

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  10

  	
   

  
	
  AMENDMENTS;
  SUPPLEMENTS AND WAIVERS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.01.

  	
  Without Consent of Holders

  	
  69

  
	
  Section 10.02.

  	
  With Consent of Holders

  	
  69

  
	
  Section 10.03.

  	
  Execution of Supplemental Indentures and Agreements

  	
  70

  
	
  Section 10.04.

  	
  Effect of Supplemental Indentures

  	
  71

  
	
  Section 10.05.

  	
  Conformity with Trust Indenture Act

  	
  71

  
	
  Section 10.06.

  	
  Reference in Securities to Supplemental Indentures

  	
  71

  
	
  Section 10.07.

  	
  Notice of Supplemental Indentures

  	
  71

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  11

  	
   

  
	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.01.

  	
  Conflict with Trust Indenture Act

  	
  71

  
	
  Section 11.02.

  	
  Notices

  	
  72

  
	
  Section 11.03.

  	
  Disclosure of Names and Addresses of Holders

  	
  73

  
	
  Section 11.04.

  	
  Compliance Certificates and Opinions

  	
  73

  
	
  Section 11.05.

  	
  Acts of Holders

  	
  74

  

 

iii

 

	
  Section 11.06.

  	
  Benefits of Indenture

  	
  75

  
	
  Section 11.07.

  	
  Legal Holidays

  	
  75

  
	
  Section 11.08.

  	
  Governing Law

  	
  75

  
	
  Section 11.09.

  	
  No Adverse Interpretation of Other Agreements

  	
  75

  
	
  Section 11.10.

  	
  No Personal Liability of Directors, Officers,
  Employees and Stockholders

  	
  76

  
	
  Section 11.11.

  	
  Successors and Assigns

  	
  76

  
	
  Section 11.12.

  	
  Multiple Counterparts

  	
  76

  
	
  Section 11.13.

  	
  Separability Clause

  	
  76

  
	
  Section 11.14.

  	
  Schedules and Exhibits

  	
  76

  
	
  Section 11.15.

  	
  Effect of Headings and Table of Contents

  	
  76

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  Form of Security

  	
  A-1

  
	
  Exhibit B

  	
  Form of Notice of Conversion

  	
  B-1

  
	
  Exhibit C

  	
  Form of Fundamental Change Repurchase Notice

  	
  C-1

  
	
  Exhibit D

  	
  Form of
  Assignment and Transfer

  	
  D-1

  
				

 

iv

 

CROSS-REFERENCE
TABLE

 

	
  TIA

  Section

  	
   

  	
   

  	
   

  	
  Indenture

  Section(s)

  	
   

  
	
  Section

  	
   

  	
  310(a)(1)

  	
   

  	
  8.09

  	
   

  
	
   

  	
   

  	
  (a)(2)

  	
   

  	
  8.09

  	
   

  
	
   

  	
   

  	
  (a)(3)

  	
   

  	
  N.A. **

  	
   

  
	
   

  	
   

  	
  (a)(4)

  	
   

  	
  N.A.

  	
   

  
	
   

  	
   

  	
  (a)(5)

  	
   

  	
  8.09

  	
   

  
	
   

  	
   

  	
  (b)

  	
   

  	
  8.08

  	
   

  
	
   

  	
   

  	
  (c)

  	
   

  	
  N.A.

  	
   

  
	
  Section

  	
   

  	
  311(a)

  	
   

  	
  8.13

  	
   

  
	
   

  	
   

  	
  (b)

  	
   

  	
  8.05

  	
   

  
	
   

  	
   

  	
  (c)

  	
   

  	
  N.A.

  	
   

  
	
  Section

  	
   

  	
  312(a)

  	
   

  	
  2.06

  	
   

  
	
   

  	
   

  	
  (b)

  	
   

  	
  11.03

  	
   

  
	
   

  	
   

  	
  (c)

  	
   

  	
  11.03

  	
   

  
	
  Section

  	
   

  	
  313(a)

  	
   

  	
  8.14 (a)

  	
   

  
	
   

  	
   

  	
  (b)(1)

  	
   

  	
  N.A.

  	
   

  
	
   

  	
   

  	
  (b)(2)

  	
   

  	
  8.14 (a)

  	
   

  
	
   

  	
   

  	
  (c)

  	
   

  	
  8.14 (a)

  	
   

  
	
   

  	
   

  	
  (d)

  	
   

  	
  8.14 (b)

  	
   

  
	
  Section

  	
   

  	
  314(a)

  	
   

  	
  5.02

  	
   

  
	
   

  	
   

  	
  (b)

  	
   

  	
  N.A.

  	
   

  
	
   

  	
   

  	
  (c)(1)

  	
   

  	
  11.04

  	
   

  
	
   

  	
   

  	
  (c)(2)

  	
   

  	
  11.04

  	
   

  
	
   

  	
   

  	
  (c)(3)

  	
   

  	
  N.A.

  	
   

  
	
   

  	
   

  	
  (d)

  	
   

  	
  N.A.

  	
   

  
	
   

  	
   

  	
  (e)

  	
   

  	
  11.04

  	
   

  
	
   

  	
   

  	
  (f)

  	
   

  	
  N.A.

  	
   

  
	
  Section

  	
   

  	
  315(a)

  	
   

  	
  8.01 (b)

  	
   

  
	
   

  	
   

  	
  315(b)

  	
   

  	
  8.02

  	
   

  
	
   

  	
   

  	
  315(c)

  	
   

  	
  8.01 (a)

  	
   

  
	
   

  	
   

  	
  315(d)

  	
   

  	
  8.01 (c)

  	
   

  
	
   

  	
   

  	
  315(d)(2)

  	
   

  	
  8.01 (c)

  	
   

  
	
   

  	
   

  	
  315(d)(3)

  	
   

  	
  8.01 (c)

  	
   

  
	
   

  	
   

  	
  315(e)

  	
   

  	
  7.14

  	
   

  
	
  Section

  	
   

  	
  316(a) (last sentence)

  	
   

  	
  2.10

  	
   

  
	
   

  	
   

  	
  316(a)(1)

  	
   

  	
  7.12, 7.13

  	
   

  
	
   

  	
   

  	
  316(a)(2)

  	
   

  	
  N.A.

  	
   

  
	
   

  	
   

  	
  316(b)

  	
   

  	
  7.08

  	
   

  
	
   

  	
   

  	
  316(c)

  	
   

  	
  11.05(e)

  	
   

  
	
  Section

  	
   

  	
  317(a)

  	
   

  	
  7.03, 7.04(a)

  	
   

  
	
   

  	
   

  	
  317(b)

  	
   

  	
  2.04

  	
   

  
	
  Section

  	
   

  	
  318(a)

  	
   

  	
  11.01

  	
   

  
	
   

  	
   

  	
  318(c)

  	
   

  	
  11.01

  	
   

  

 

v

 

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

**                                     N.A. means Not
Applicable.

 

vi

 

THIS
INDENTURE, dated as of •, 2009, is between Regis Corporation, a
corporation duly organized under the laws of the State of Minnesota (the “Company”),
and Wells Fargo Bank, N.A., as trustee (the “Trustee”).

 

In
consideration of the purchase of the Securities (as defined herein) by the
Holders thereof, the parties hereto agree as follows for the benefit of one
another and for the equal and ratable benefit of the Holders of the Company’s
•% Convertible Senior Notes due 2014.

 

ARTICLE
1

 

DEFINITIONS
AND INCORPORATION BY REFERENCE

 

Section 1.01.          Definitions.

 

“Additional Interest” means all amounts, if any,
payable pursuant to Section 7.02(b) hereof.

 

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

 

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

 

“Bid
Solicitation Agent” means initially the
Company.  The Company may, however,
appoint another Person (including the Trustee) as the Bid Solicitation Agent
without prior notice to the Holders of the Securities.

 

“Board
of Directors” means the board of directors of the Company or any duly
authorized committee of such board, or any equivalent body in a limited
partnership, limited liability company or other entity serving substantially
the same function as a board of directors of a corporation.

 

“Board
Resolution” means, with respect to any Person, a duly adopted resolution (or
other similar action) of the Board of Directors of such Person.

 

“Business
Day” means each Monday, Tuesday, Wednesday, Thursday and Friday that is not a
day on which the banking institutions in New York City are authorized or
obligated by law or executive order to close or be closed.

 

 

“Capital
Stock” means, for any entity, any and all shares, interests, rights to
purchase, warrants, options, participations or other equivalents of or
interests in (however designated) stock issued by that entity.

 

“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.

 

“Cash Settlement Averaging Period” means, with respect
to any Security surrendered for conversion, the 20 consecutive Trading Day
period beginning on, and including, the third Trading Day immediately following
the Conversion Date for such Security; provided
that, with respect to any Conversion Date occurring during the
period beginning on, and including, April 15, 2014 and ending at the close
of business on the second Scheduled Trading Day immediately prior to the
Maturity Date, the “Cash Settlement Averaging Period” means the 20 consecutive
Trading Day period beginning on, and including, the 22nd Scheduled Trading Day
prior to the Maturity Date.

 

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

 

“close of business” means 5:00 p.m. (New York
City time).

 

“Common Equity” of any Person means Capital Stock of
such Person that is generally entitled (a) to vote in the election of
directors of such Person or (b) if such Person is not a corporation, to
vote or otherwise participate in the selection of the governing body, partners,
managers or others that will control the management or policies of such Person.

 

“Common Stock” means the
shares of common stock, par value $0.05 per share, of the Company as they exist
on the date of this Indenture, subject to Section 4.06.

 

“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.

 

“Company
Request” or “Company Order” means a written request or order signed in the name
of the Company by any one of its Chairman of the Board, its Chief Executive
Officer, its President, its Chief Operating Officer, its Chief Financial
Officer or a Vice President (regardless of Vice Presidential designation), and
by any one of its Treasurer, an Assistant Treasurer, any other Vice President
(regardless of Vice Presidential designation), its Secretary or an Assistant
Secretary, and delivered to the Trustee.

 

“Conversion Obligation” means the obligation of the
Company to deliver amounts owing upon conversion in accordance with the
provisions of Article 4 hereof.

 

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

 

2

 

“Conversion Rate” means,
initially, • shares of Common Stock per $1,000 principal amount of
Securities, subject to adjustment as set forth herein.

 

“Corporate Trust Office”
means the office of the Trustee at which at any particular time its corporate
trust business shall be principally administered, which office at the date
hereof is located at MAC N9311-110 625 Marquette Ave., 11th Floor Minneapolis, MN 55479, Attention:
Corporate Trust Services, or such other address as the Trustee may designate
from time to time by notice to the Company, or the principal corporate trust
office of any successor Trustee (or such other address as such successor
Trustee may designate from time to time by notice to the Company).

 

“Daily Conversion Value”
means, for each of the 20 consecutive Trading Days during the Cash Settlement
Averaging Period, one-twentieth (1/20th) of the product of (a) the
then-applicable Conversion Rate on such Trading Day and (b) the Daily VWAP
of the Common Stock on such Trading Day.

 

“Daily Measurement Value” is
equal to the Specified Dollar Amount, divided
by 20.

 

“Daily Settlement Amount,”
for each of the 20 consecutive Trading Days during the Cash Settlement
Averaging Period, shall consist of:

 

(a)           cash
equal to the lesser of the Daily Measurement Value and the Daily Conversion
Value for such Trading Day; and

 

(b)           to
the extent the Daily Conversion Value for such Trading Day exceeds the Daily
Measurement Value, a number of shares of Common Stock equal to the Daily Share
Amount.

 

“Daily Share Amount” means,
to the extent the Daily Conversion Value exceeds the Daily Measurement Value, (i) the
difference between the Daily Conversion Value and
the Daily Measurement Value, divided
by (ii) the Daily VWAP of the Common Stock for such Trading
Day.

 

“Daily VWAP” for the Common
Stock, in respect of any Trading Day, means the per share volume-weighted
average price on the New York Stock Exchange as displayed under the heading “Bloomberg
VWAP” on Bloomberg page “RGS.N <equity> AQR” (or its equivalent
successor if such page is not available) in respect of the period from the
scheduled opening of trading until the scheduled close of trading of the
primary trading session on such Trading Day (or if such volume-weighted average
price is unavailable, the market value of one share of the Common Stock on such
Trading Day as determined by the Board of Directors in a commercially
reasonable manner, using a volume-weighted average price method) and will be
determined without regard to after hours trading or any other trading outside
of the regular trading session.

 

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

 

“Ex-Dividend
Date” means, with respect to any issuance, dividend or distribution in which
the holders of Common Stock (or other security) have the right to receive any
cash, securities or other property, the first date on which the shares of the
Common Stock (or other 

 

3

 

security) trade on the applicable exchange or in the
applicable market, regular way, without the right to receive the issuance,
dividend or distribution in question.

 

“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.

 

“Fundamental Change” means
the occurrence after the original issuance of the Securities of any of the
following events:

 

(a)           any
“person” or “group” (within the meaning of Section 13(d) of the
Exchange Act) other than the Company or its Subsidiaries or any of their
respective employee benefit plans files a Schedule TO or any schedule,
form or report under the Exchange Act disclosing that such person or group has
become the direct or indirect ultimate “beneficial owner,” as defined in Rule 13d-3
under the Exchange Act, of the Company’s Common Equity representing more than
50% of the voting power of the Company’s Common Equity;

 

(b)           consummation
of any binding share exchange, exchange offer, tender offer, consolidation or
merger of the Company pursuant to which the Common Stock will be converted into
cash, securities or other property or any sale, lease or other transfer in one
transaction or a series of transactions of all or substantially all of the
consolidated assets of the Company and its Subsidiaries, taken as a whole, to
any Person other than one or more of the Company’s Subsidiaries; (any such
exchange, offer, consolidation, merger, sale, lease or other transfer
transaction or series of transactions being referred to herein as an “event”); provided, however,
that any such event where the holders of more than 50% of our shares of Common
Stock immediately prior to such event, own, directly or indirectly, more than
50% of all classes of Common Equity of the continuing or surviving person or
transferee or the Parent thereof immediately after such event shall not be a
Fundamental Change;

 

(c)           the
stockholders of the Company approve any plan or proposal for the liquidation or
dissolution of the Company; or

 

(d)           the
Common Stock (or other common stock into which the Securities are then
convertible) ceases to be listed on at least one U. S. national securities
exchange,

 

provided, however, no transaction or event
described in clause (b) above shall constitute a Fundamental Change if at
least 90% of the consideration, excluding cash payments for fractional shares,
in the transaction or event that would otherwise have constituted a Fundamental
Change consists of shares of Publicly Traded Securities, and as a result of the
transaction or event, the Securities become convertible into such Publicly
Traded Securities, excluding cash payments for fractional shares (subject to
the provisions of Section 4.02). 
For purposes of this definition, whether a “person” is a “beneficial
owner” shall be determined in accordance with Rule 13d-3 under the
Exchange Act and “person” includes any syndicate or group that would be deemed
to be a “person” under Section 13(d)(3) of the Exchange Act.

 

“Global Security” means a
Security in global form that is in substantially the form attached as Exhibit A
and that includes the legend called for in footnote 1 thereof and the related 

 

4

 

schedule
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
register maintained by the Primary Registrar.

 

“Indenture” means this
instrument as originally executed (including all exhibits and schedules
thereto) and as it may from time to time be supplemented or amended by one or
more indentures supplemental hereto entered into pursuant to the applicable
provisions hereof, including the provisions of the TIA that are automatically
deemed to be part of this Indenture by operation of the TIA.

 

“Interest Payment Date”
means January 15 and July 15 of each year, commencing January 15,
2010.

 

“Issue Date” means the date
of this Indenture.

 

“Last
Reported Sale Price” of the Common Stock on any date means the closing sale
price per share (or if no closing sale price is reported, the average of the
bid and ask prices or, if more than one in either case, the average of the
average bid and the average ask prices) on that date as reported in composite
transactions for the principal U.S. national or regional securities exchange on
which the Common Stock is listed for trading. 
If the Common Stock is not listed for trading on a U.S. national securities
exchange on the relevant date, then the “Last Reported Sale Price” of the
Common Stock will be the last quoted bid price for the Common Stock in the
over-the-counter market on the relevant date as reported by Pink OTC Markets
Inc. or similar organization. If the Common Stock is not so quoted, the “Last
Reported Sale Price” of the Common Stock will be determined by a U.S.
nationally recognized independent investment banking firm selected by the
Company for this purpose.  The Last
Reported Sale Price will be determined without reference to after-hours or
extended market trading.

 

“Make-Whole Fundamental
Change” means any transaction or event that constitutes a Fundamental Change
under clause (a) or (b) of the definition thereof (in the case of any
Fundamental Change described in clause (b) of the definition thereof,
determined without regard to the proviso in such clause but after giving effect
to the exceptions and exclusions to the definition of Fundamental Change that
otherwise apply).

 

“Market Disruption Event”
means (a) a failure by the primary exchange or quotation system on which
the Common Stock trades or is quoted, as the case may be, to open for trading
during its regular trading session or (b) the occurrence or existence
prior to 1:00 p.m., New York City time, on any Trading Day for the Common
Stock of an aggregate one-half hour period, of any suspension or limitation
imposed on trading (by reason of movements in price exceeding limits permitted
by the stock exchange or otherwise) in the Common Stock or in any options,
contracts or future contracts relating to the Common Stock.

 

“Maturity Date” means July 15,
2014.

 

“Officer” means the
Chairman, any Vice Chairman, the President, the Chief Executive Officer, any
Vice President, the Chief Financial Officer, the Chief Operating Officer, the 

 

5

 

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

 

“Officer’s Certificate”
means a certificate signed by an Officer of the Company and delivered to, the Trustee;
provided, however,
that for purposes of Section 5.03, “Officer’s Certificate” means a
certificate signed by the principal executive officer, principal financial
officer, principal operating officer, principal accounting officer or treasurer
of the Company.

 

“opening of business” means
9:00 a.m. (New York City time).

 

“Opinion of Counsel” means a
written opinion of counsel, who may be an employee of or counsel for the
Company or the Trustee and who shall be reasonably acceptable to the Trustee,
and which opinion shall contain the statements required by Section 11.04.

 

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

 

“Prospectus”
means the prospectus dated •, 2009 relating to the offering and sale of
the Securities.

 

“Publicly
Traded Securities” means shares of common stock that are traded on a U.S. national
securities exchange or that will be so traded when issued or exchanged in
connection with a transaction described in clause (b) of the definition of
Fundamental Change.

 

“Regular Record Date” means,
with respect to each Interest Payment Date, the January 1 or July 1,
as the case may be, immediately preceding such Interest Payment Date.

 

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

 

“SEC” means the U.S.
Securities and Exchange Commission.

 

“Securities” means the up to
$• aggregate principal amount ($• aggregate principal amount if the
Underwriters exercise their over-allotment option to purchase up to an
additional $• aggregate principal amount in full) of •% Convertible
Senior Notes due 2014, or any $1,000 principal amount thereof (each a “Security”),
that are initially 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.

 

“Settlement
Notice” means the notice specifying the Settlement Method that the Company has
elected in accordance with the provisions of Section 4.03(b) and
which contains the information required by Section 4.03(c).

 

6

 

“Significant
Subsidiary” means, at any date of determination, any Subsidiary that would
constitute a “significant subsidiary” within the meaning of Article 1 of
Regulation S-X promulgated under the Securities Act as in effect on the
date of this Indenture.

 

“Special Record Date” for
the payment of any Defaulted Interest means a date fixed by the Trustee
pursuant to Section 2.16.

 

“Specified
Dollar Amount” means an amount of cash per $1,000 principal amount of a
converted Security specified by the Company in the Settlement Notice related to
such converted Security.

 

“Stated Maturity” means,
with respect to any installment of interest or principal on any Security, the
date on which such payment of interest or principal shall become due and
payable.

 

“Subsidiary” means, with
respect to any specified Person: (1) any corporation, association or other
business entity of which more than 50% of the total voting power of shares of
Capital Stock entitled (without regard to the occurrence of any contingency) to
vote in the election of directors, managers or trustees of the corporation,
association or other business entity is at the time owned or controlled,
directly or indirectly, by that Person or one or more of the other Subsidiaries
of that Person (or a combination thereof); or (2) any partnership (a) the
sole general partner or the managing general partner of which is such Person or
a Subsidiary of such Person or (b) the only general partners of which are
that Person or one or more Subsidiaries of that Person (or any combination
thereof).

 

“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 the Common Stock generally occurs on
the primary exchange or quotation system on which Common Stock then trades or
is quoted and there is no Market Disruption Event. If the Common Stock (or
other security for which a Last Reported Sale Price or Daily VWAP must be determined)
is not so traded or quoted, “Trading Day” means “Business Day.”

 

“Trading Price” of the
Securities on any date of determination means the average of the secondary
market bid quotations obtained by the Bid Solicitation Agent for $5 million
principal amount of the Notes at approximately 3:30 p.m., New York City
time, on such determination date from three nationally recognized securities
dealers the Company selects; provided that,
if three such bids cannot reasonably be obtained by the Bid Solicitation Agent
but two such bids are obtained, then the average of the two bids shall be used,
and if only one such bid can reasonably be obtained by the Bid Solicitation
Agent, that one bid shall be used.  If
the Bid Solicitation Agent cannot reasonably obtain at least one bid for $5
million principal amount of the Notes from a nationally recognized securities
dealer, then the Trading Price per $1,000 principal amount of Notes will be
deemed to be less than 98% of the product of the Last Reported Sale Price of the
Common Stock and the applicable Conversion Rate.

 

7

 

“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.

 

“Trust Officer” means, with
respect to the Trustee, any officer of the Trustee who shall have direct
responsibility for the administration of this Indenture and, for the purposes
of Section 8.01(c)(2) and the proviso in Section 8.02, shall
also include any other officer of the Trustee to whom any corporate trust
matter is referred because of such officer’s knowledge of and familiarity with
the particular subject.

 

“Underwriters” means the
underwriters named in the Purchase Agreement, dated •, 2009, among the
Company and the underwriters named therein.

 

“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.”

 

Section 1.02.          Other
Definitions.

 

	
  Term

  	
   

  	
  Defined in Section

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  “Act”

  	
   

  	
  11.05

  	
   

  
	
  “Additional Securities”

  	
   

  	
  2.02

  	
   

  
	
  “Additional Shares”

  	
   

  	
  4.01

  	
   

  
	
  “Agent Members”

  	
   

  	
  2.01

  	
   

  
	
  “Conversion Agent”

  	
   

  	
  2.03

  	
   

  
	
  “Conversion Date”

  	
   

  	
  4.02

  	
   

  
	
  “DTC”

  	
   

  	
  2.01

  	
   

  
	
  “Defaulted Interest”

  	
   

  	
  2.16

  	
   

  
	
  “Depositary”

  	
   

  	
  2.01

  	
   

  
	
  “Dividend Threshold Amount”

  	
   

  	
  4.05

  	
   

  
	
  “Effective Date”

  	
   

  	
  4.04

  	
   

  
	
  “Event of Default”

  	
   

  	
  7.01

  	
   

  
	
  “Expiration Date”

  	
   

  	
  4.05

  	
   

  
	
  “Expiration Time”

  	
   

  	
  4.05

  	
   

  
	
  “Fundamental Change Company Notice”

  	
   

  	
  3.01

  	
   

  
	
  “Fundamental Change Expiration Time”

  	
   

  	
  3.01

  	
   

  
	
  “Fundamental Change Repurchase Date”

  	
   

  	
  3.01

  	
   

  
	
  “Fundamental Change Repurchase Notice”

  	
   

  	
  3.01

  	
   

  
	
  “Fundamental Change Repurchase Price”

  	
   

  	
  3.01

  	
   

  
	
  “Make-Whole Fundamental Change Period”

  	
   

  	
  4.04

  	
   

  
	
  “Measurement Period”

  	
   

  	
  4.01

  	
   

  
	
  “Merger Event”

  	
   

  	
  4.06

  	
   

  
	
  “Outstanding”

  	
   

  	
  2.09

  	
   

  
	
  “Paying Agent”

  	
   

  	
  2.03

  	
   

  
	
  “Primary Registrar”

  	
   

  	
  2.03

  	
   

  
	
  “Reference Property”

  	
   

  	
  4.06

  	
   

  
	
  “Registrar”

  	
   

  	
  2.03

  	
   

  

 

8

 

	
  Term

  	
   

  	
  Defined in Section

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  “Settlement Amount”

  	
   

  	
  4.03

  	
   

  
	
  “Settlement Method”

  	
   

  	
  4.03

  	
   

  
	
  “Special Payment Date”

  	
   

  	
  2.16

  	
   

  
	
  “Spin-Off”

  	
   

  	
  4.05

  	
   

  
	
  “Stock Price”

  	
   

  	
  4.04

  	
   

  
	
  “Trading Price Condition

  	
   

  	
  4.01

  	
   

  
	
  “Trigger Event”

  	
   

  	
  4.05

  	
   

  
	
  “Valuation Period”

  	
   

  	
  4.05

  	
   

  
	
  “Weighted Average Consideration”

  	
   

  	
  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.

 

All terms used in this
Indenture that are defined in the TIA, defined by the TIA by 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.

 

For all purposes of this
Indenture, except as otherwise provided or 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)  the term “merger” includes a
statutory share exchange and the term “merged” has a correlative meaning;

 

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

 

(6)  the terms “include”, “including”,
and similar terms should be construed as if followed by the phrase “without
limitation”;

 

(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 the terms “hereunder,” “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.

 

9

 

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 include
such letters, numbers or other marks of identification and such notations,
legends, endorsements or changes as the Officer executing the same may approve
(execution thereof to be conclusive evidence of such approval) and as are not
inconsistent with the provisions of this Indenture, or as may be required by
the Trustee, the Depositary, or as may be required to comply with any
applicable law or with any rule or regulation made pursuant thereto or
with any rule or regulation of any national securities exchange or
automated quotation system on which the Securities may be listed or quoted, or
to conform to usage, or to indicate any special limitations or restrictions to
which any particular Securities are subject. Each Security shall be dated the
date of its authentication.

 

(a)           Global Securities. 
All of the Securities initially being offered and sold to the
Underwriters shall be issued in the form of one or more Global Securities,
which shall be deposited on behalf of the purchasers of the Securities
represented thereby with Wells Fargo Bank, N.A., at its Corporate Trust Office,
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 Global Security shall represent such of
the outstanding Securities as shall be specified therein and each shall provide
that it shall represent the aggregate principal amount of outstanding
Securities from time to time endorsed thereon and that the aggregate principal
amount of outstanding Securities represented thereby may from time to time be
reduced or increased, as appropriate, to reflect exchanges, purchases or
conversions of such Securities.

 

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.  None of the
Trustee, the Paying Agent or the Security Registrar shall have any
responsibility or obligation to any beneficial owner in a Global Security, an
Agent Member or other Person with respect to the accuracy of the records of the
Depositary or its nominee or of any Agent Member, with respect to any ownership
interest in the Securities or with respect to the delivery to any Agent Member,
beneficial owner or other Person (other than the Depositary) of any notice
(including any notice 

 

10

 

of
redemption) or the payment of any amount, under or with respect to such
Securities.  All notices and
communications to be given to the Holders and all payments to be made to
Holders under the Securities and this Indenture shall be given or made only to
or upon the order of the registered Holders (which shall be the Depositary or
its nominee in the case of the Global Security).  The rights of beneficial owners in the Global
Security shall be exercised only through the Depositary subject to the Applicable
Procedures.  The Trustee, the Paying Agent
and the Security Registrar shall be entitled to rely and shall be fully
protected in relying upon information furnished by the Depositary with respect
to its members, participants and any beneficial owners.  The Trustee, the Paying Agent and the Security
Registrar shall be entitled to deal with the Depositary, and any nominee
thereof, that is the registered Holder of any Global Security for all purposes
of this Indenture relating to such Global Security (including the payment of
principal and interest and the giving of instructions or directions by or to
the owner or Holder of a beneficial ownership interest in such Global Security)
as the sole Holder of such Global Security and shall have no obligations to the
beneficial owners thereof.  None of the Trustee,
the Paying Agent or the Security Registrar shall have any responsibility or
liability for any acts or omissions of the Depositary with respect to such
Global Security, for the records of any such depositary, including records in
respect of beneficial ownership interests in respect of any such Global
Security, for any transactions between the Depositary and any Agent Member or
between or among the Depositary, any such Agent Member and/or any Holder or
owner of a beneficial interest in such Global Security, or for any transfers of
beneficial interests in any such Global Security.

 

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:

 

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 OF A DEPOSITARY. 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 NO
TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY 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) MAY BE REGISTERED
EXCEPT IN LIMITED CIRCUMSTANCES.

 

UNLESS THIS SECURITY IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
CORPORATION (“DTC”), TO 

 

11

 

THE COMPANY OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE &
CO., HAS AN INTEREST HEREIN.

 

Section 2.02.          Execution
and Authentication.

 

(a)           The aggregate principal amount of Securities which may be
authenticated and delivered under this Indenture is initially limited to
$• aggregate principal amount ($• aggregate principal amount if the
Underwriters exercise their over-allotment option to purchase up to an
additional $• aggregate principal amount in full), except as provided in
Sections 2.07 and 2.08.

 

The Company may, without the
consent of the Holders of the Securities, hereafter issue additional Securities
(“Additional Securities”) under the Indenture with the same terms and with the
same CUSIP number as the Securities issued on the date of this Indenture (the “Initial
Securities”) in an unlimited aggregate principal amount; provided that such Additional Securities
must be part of the same issue as the Initial Securities for federal income tax
purposes. Any such Additional Securities shall constitute a single series
together with the Initial Securities for all purposes hereunder, including,
without limitation, for purposes of any waivers, supplements or amendments to
the Indenture requiring the approval of Holders of the Securities and any
offers to purchase the Securities.

 

(b)           The Securities shall be executed on behalf of the Company
by one of its Officers. The signatures of any of the Officers on the Securities
may be manual or facsimile.

 

(c)           Securities bearing the manual or facsimile signatures of
individuals who were at any time the proper officers of the Company shall bind
the Company, notwithstanding that such individuals or any of them have ceased
to hold such offices prior to the authentication and delivery of such
Securities or did not hold such offices at the date of such Securities.

 

(d)           No Security shall be entitled to any benefit under this
Indenture or be valid or obligatory for any purpose unless there appears on
such Security a certificate of authentication substantially in the form
provided for herein duly executed by the Trustee by manual signature of an
authorized signatory, and such certificate upon any Security shall be
conclusive evidence, and the only evidence, that such Security has been duly
authenticated and delivered hereunder and is entitled to the benefits of this
Indenture.

 

(e)           The Trustee shall authenticate and make available for
delivery Securities for original issue in the aggregate principal amount of $•
(or up to $• if the Underwriters exercise their over-allotment option in
full) upon receipt of a Company Order. The Company Order shall specify the
amount of Securities to be authenticated, shall provide that all such
Securities will be represented by a Global Security and the date on which each
original issue of Securities is to be authenticated.

 

12

 

(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 or surrendered 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 in the
Borough of Manhattan, The City of New York. One of the Registrars (the “Primary
Registrar”) shall keep a register of the Securities and of their transfer and
exchange.

 

(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, and any change in the
name or 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.

 

(c)           The Company hereby initially designates Wells Fargo Bank,
N.A. as Paying Agent, Primary Registrar, Securities Custodian and Conversion
Agent, and designates the Corporate Trust Office of the Trustee as the office
or agency of the Company for each of the aforesaid purposes and as the office
or agency where notices and demands to or upon the Company in respect of the
Securities and this Indenture may be served.

 

Section 2.04.          Paying
Agent To Hold Money In Trust.

 

Unless otherwise specified
herein, 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 a sum sufficient to pay such principal or interest so becoming due. 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 to make any such payment. If the Company or an Affiliate of the 

 

13

 

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 for the benefit of Holders. 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.

 

Any money deposited with the
Trustee or any Paying Agent, or then held by the Company, in trust for the
payment of the principal of or interest on any Security and remaining unclaimed
for two years after such principal or interest has become due and payable shall
promptly be paid to the Company or (if then held by the Company) shall be
discharged from such trust; and the Holder of such Security shall thereafter,
as an unsecured general creditor, look only to the Company for payment thereof,
and all liability of the Trustee or such Paying Agent with respect to such
trust money, and all liability of the Company as trustee thereof, shall
thereupon cease; provided, however,
that the Trustee or such Paying Agent, before being required to make any such
repayment, may at the expense of the Company cause to be published once, in a
newspaper published in the English language, customarily published on each
Business Day and of general circulation in The City of New York, notice that
such money remains unclaimed and that, after a date specified therein, which
shall not be less than 30 days from the date of such publication, any unclaimed
balance of such money then remaining will promptly be repaid to the Company.

 

Section 2.05.          Conversion
Agent To Hold Amounts In Trust.

 

The Company shall require
each Conversion Agent (that is not the Trustee) to agree in writing that the
Conversion Agent will hold in trust for the benefit of Holders or the Trustee
all cash and shares of Common Stock delivered by the Company to the Conversion
Agent for the delivery of amounts due upon conversion, and will notify the
Trustee of any default by the Company in making any such delivery.

 

While any such default
continues, the Trustee may require a Conversion Agent to deliver all cash and shares
of Common Stock delivered by the Company to it to the Trustee. Upon payment
over to the Trustee, the Conversion Agent (if other than the Company or a
Subsidiary) shall have no further liability in respect of such amounts. If the
Company or a Subsidiary acts as Conversion Agent, it shall segregate and hold
in a separate trust fund for the benefit of the Holders all cash and shares of
Common Stock held by it as Conversion Agent. Upon any bankruptcy or
reorganization proceedings relating to the Company, the Trustee shall serve as
Conversion Agent for the Securities.

 

Section 2.06.          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. The
Company shall furnish or cause the Primary Registrar to furnish to the Trustee (a) semiannually,
not more than 10 days after each Regular Record Date, a list, in such form as
the Trustee may reasonably require, of the names and addresses of the Holders
as of such Regular Record Date; and (b) at 

 

14

 

such
other times as the Trustee may request in writing, within 30 days after receipt
by the Company of any such request, a list of similar form and content to that
in subsection (a) hereof as of a date not more than 15 days prior to the
time such list is furnished; provided, however, that if and so long as the Trustee shall be the
Primary Registrar, no such list need be furnished.

 

Section 2.07.          Transfer
and Exchange.

 

(a)           Subject to compliance with any applicable additional
requirements contained in Section 2.13, 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 if its requirements for such transactions are met; 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, if
applicable, a transfer certificate each substantially in the form included in Exhibit D
hereto, and completed in a manner satisfactory to the Registrar and duly
executed by the Holder thereof or its attorney duly authorized in writing. To
permit registration of transfers and exchanges, upon surrender of any Security
for registration of transfer or exchange at an office or agency maintained 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
transfer tax or similar governmental charge that may be imposed in relation
thereto; provided that this sentence shall not apply to any exchange pursuant
to Section 2.11, 2.13(b), 3.03(c), 4.02(c) or 10.06 unless, and to
the extent, specified otherwise therein.

 

(b)           Neither the Company, any Registrar nor the Trustee shall
be required to register the transfer of or exchange any Securities or portions
thereof in respect of which a Fundamental Change Repurchase 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 registration of 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 registration of
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 

 

15

 

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 2.08.          Replacement
Securities.

 

(a)           If (1) any mutilated Security is surrendered to the
Trustee, or (2) the Company and the Trustee receive evidence to their
satisfaction of the destruction, loss or theft of any Security, and there is
delivered to the Company and the Trustee, such security or indemnity, in each
case, as may be required by them to save each of them harmless, then, in the
absence of notice to the Company or the Trustee that such Security has been
acquired by a protected purchaser, the Company shall execute and upon a Company
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
replacement 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 2.08,
the Company may require the payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of counsel and the Trustee) in
connection therewith.

 

(d)           Every new Security issued pursuant to this Section 2.08
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 2.08 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 2.09.          Outstanding
Securities.

 

(a)           Securities outstanding (“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 delivered to the Trustee for cancellation or surrendered for transfer or
exchange and those described in this Section 2.09 as not Outstanding.

 

(b)           If a Security is replaced pursuant to Section 2.08,
such replaced Security ceases to be Outstanding unless the Company receives
proof satisfactory to it that the replaced Security is held by a protected
purchaser.

 

16

 

(c)           If a Paying Agent holds in respect of the Outstanding
Securities on a Fundamental Change Repurchase Date or the Maturity Date money
sufficient to pay the principal of and accrued interest on Securities (or
portions thereof) payable on that date, then on and after such Fundamental
Change Repurchase Date or Maturity Date, as the case may be, such Securities
(or portions thereof, as the case may be) shall cease to be Outstanding and
interest on them shall cease to accrue.

 

(d)           Subject to the restrictions contained in Section 2.10,
a Security does not cease to be Outstanding because the Company or an Affiliate
of the Company holds the Security.

 

Section 2.10.          Treasury
Securities.

 

In determining whether the
Holders of the required principal amount of Securities have concurred in any request,
demand, authorization, notice, direction, waiver or consent, Securities owned
by the Company or by any Affiliate of the Company shall be disregarded, except
that, for purposes of determining whether the Trustee shall be protected in
relying on any such request, demand, authorization, notice, direction, waiver
or consent, only Securities which a Trust Officer of the Trustee actually knows
are so owned shall be so disregarded.

 

Section 2.11.          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
representing an equal principal amount of Securities. The temporary Securities
will be exchanged for definitive Securities in accordance with Sections 2.07
and 2.13 hereof. Until so exchanged, temporary Securities shall have the same
rights under this Indenture as the definitive Securities.

 

Section 2.12.          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 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 or deliver the canceled Securities to the Company upon
request. All Securities which are purchased or otherwise acquired by the
Company or any of its Subsidiaries prior to the 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.
The Trustee shall maintain a record of all canceled Securities. The Trustee
shall provide the Company a list of all Securities that have been canceled from
time to time as requested by the Company in writing.

 

17

 

Section 2.13.          Legend;
Additional Transfer and Exchange Requirements.

 

(a)                                  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 2.13.

 

(b)                                 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 the Depositary (A) 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 in either case, 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 the
preceding sentence shall be so exchanged as directed by the Depositary. Any
Security issued in exchange for a Global Security or any portion thereof shall
be a Global Security; provided, however, 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 that are not
issued as a Global Security shall be issued in definitive, fully registered
form, without interest coupons, shall have a 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 or the 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 

 

18

 

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 2.13(b), 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 2.13(b), 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, 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, cancelled
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 2.12 of this Indenture. At any time prior to
such cancellation, if any interest in a 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.

 

Section 2.14.          CUSIP
Numbers.

 

The Company in issuing the
Securities may use one or more “CUSIP,” “ISIN” or other similar numbers (if
then generally in use), and, if so, the Trustee shall use “CUSIP,” “ISIN” or
other similar numbers in a Fundamental Change Repurchase Notice 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
Fundamental Change Repurchase Notice and that reliance may be placed only on the
other identification numbers 

 

19

 

printed
on the Securities, and any such purchase shall not be affected by any defect in
or omission of such numbers. The Company will notify the Trustee in writing of
any change in the “CUSIP,” “ISIN” or other similar numbers.

 

Section 2.15.          Calculations.

 

Except as otherwise
specifically stated herein or in the Securities, the Company shall be
responsible for making all calculations called for under the Indenture and the Securities.  Such calculations include, but are not
limited to, determinations of the Settlement Amount and related calculations,
accrued interest payable on the Securities and the applicable Conversion Rate.
The Company shall make all these calculations in good faith and, absent
manifest error, such calculations shall be final and binding on Holders of
Securities.  The Company shall provide a
schedule of its calculations to each of the Trustee and the Conversion Agent,
and each of the Trustee and Conversion Agent is entitled to rely conclusively
upon the accuracy of the Company’s calculations without independent
verification. The Trustee shall forward calculations of the Company to any
Holder upon the request of such Holder.

 

Section 2.16.          Payment
of Interest; Interest Rights Preserved.

 

Interest on any Security
which is payable, and is punctually paid or duly provided for, on the Stated
Maturity of such interest shall be paid to the Person in whose name the
Security is registered at the close of business on the Regular Record Date for
such interest payment.

 

Any interest on any Security
which is payable, but is not punctually paid or duly provided for, on the
Stated Maturity of such interest, and interest on such defaulted interest at
the then applicable interest rate borne by the Securities, to the extent lawful
(such defaulted interest and interest thereon herein collectively called “Defaulted
Interest”), shall forthwith cease to be payable to the Holder on the Regular
Record Date; and such Defaulted Interest may be paid by the Company, at its
election in each case, as provided in Subsection (a) or (b) below:

 

(a)           The Company may elect to make payment of any Defaulted
Interest to the Persons in whose names the Securities are registered at the
close of business on a Special Record Date for the payment of such Defaulted
Interest, which shall be fixed in the following manner. The Company shall
notify the Trustee in writing of the amount of Defaulted Interest proposed to
be paid on each Security and the date (not less than 20 days after such notice)
of the proposed payment (the “Special Payment Date”), and on the date of
payment the Company shall deposit with the Trustee an amount of money equal to
the aggregate amount proposed to be paid in respect of such Defaulted Interest
or shall make arrangements satisfactory to the Trustee for such deposit prior
to the Special Payment Date, such money when deposited to be held in trust for
the benefit of the Persons entitled to such Defaulted Interest as in this
subsection provided. Thereupon the Trustee shall fix a Special Record Date for
the payment of such Defaulted Interest which shall be not more than 15 days and
not less than 10 days prior to the date of the Special Payment Date and not
less than 10 days after the receipt by the Trustee of the notice of the
proposed payment. The Trustee shall promptly notify the Company in writing of
such Special Record Date. Unless the Company issues a press release to the same
effect, in the name and at the expense of the Company, the Trustee shall cause
notice of the proposed payment of such Defaulted Interest and the Special
Record Date therefor to be mailed, first-class postage prepaid, 

 

20

 

to each Holder at its address as it appears in
the Security Register, not less than 10 days prior to such Special Record Date
or notify in such other manner as the Trustee determines, including in
accordance with any Applicable Procedures. 
Notice of the proposed payment of such Defaulted Interest and the
Special Record Date and Special Payment Date therefor having been so mailed or
otherwise conveyed, such Defaulted Interest shall be paid to the Persons in
whose names the Securities are registered on such Special Record Date and shall
no longer be payable pursuant to the following paragraph (b).

 

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

 

Subject to the foregoing
provisions of this Section 2.16, each Security delivered under this
Indenture upon registration of transfer of or in exchange for or in lieu of any
other Security shall carry the rights to interest accrued and unpaid, and to
accrue, which were carried by such other Security.

 

Section 2.17.          Computation
of Interest.

 

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

 

ARTICLE 3

 

PURCHASE

 

Section 3.01.          Repurchase
at Option of Holders upon a Fundamental Change.

 

(a)           If there shall occur a Fundamental Change at any time
prior to the Maturity Date, then each Holder shall have the right, at such
Holder’s option, to require the Company to repurchase for cash all of such
Holder’s Securities, or any portion thereof that is an integral multiple of
$1,000 principal amount, on the date (the “Fundamental Change Repurchase Date”)
specified by the Company that is not less than 20 Business Days and not more
than 35 Business Days after the date of the Fundamental Change Company Notice
at a repurchase price equal to 100% of the principal amount thereof, together
with accrued and unpaid interest thereon to, but excluding, the Fundamental
Change Repurchase Date (the “Fundamental Change Repurchase Price”), unless the
Fundamental Change Repurchase Date is after a Regular Record Date and on or
prior to the related Interest Payment Date, in which case interest accrued to
the Interest Payment Date will be paid to holders of the Securities as of the
preceding Regular Record Date and the Fundamental Change Repurchase Price
payable to the Holder surrendering the Security for repurchase pursuant to this
Article 3 shall be equal to the principal amount of Securities subject to
repurchase and will not include any accrued and unpaid interest. Repurchases of
Securities under this Section 3.01 shall be made, at the option of the
Holder thereof, upon:

 

21

 

(i)            delivery
to the Paying Agent by a holder of a duly completed notice (the “Fundamental
Change Repurchase Notice”) in the form set forth on the reverse of the Security
and attached as Exhibit C hereto on or prior to the Scheduled Trading Day
immediately preceding the Fundamental Change Repurchase Date; and

 

(ii)           delivery
or book-entry transfer of the Securities to the Paying Agent at any time after
delivery of the Fundamental Change Repurchase Notice (together with all
necessary endorsements) at the office of the Paying Agent, such delivery being
a condition to receipt by the holder of the Fundamental Change Repurchase Price
therefor; provided that such
Fundamental Change Repurchase Price shall be so paid pursuant to this Section 3.01
only if the Security so delivered to the Paying Agent shall conform in all
respects to the description thereof in the related Fundamental Change
Repurchase Notice.

 

The Fundamental Change
Repurchase Notice shall state:

 

(A)          if
certificated, the certificate numbers of Securities to be delivered for
repurchase;

 

(B)           the
portion of the principal amount of Securities to be repurchased, which must be
$1,000 or an integral multiple thereof; and

 

(C)           that
the Securities are to be repurchased by the Company pursuant to the applicable
provisions of the Securities and this Indenture;

 

provided,
however, that if the Securities are not Certificated Securities, the
Fundamental Change Repurchase Notice must comply with Applicable Procedures of
the Depositary.

 

Any repurchase by the
Company contemplated pursuant to the provisions of this Section 3.01 shall
be consummated by the payment of the Fundamental Change Repurchase Price
pursuant to Section 3.03(a).

 

Notwithstanding anything
herein to the contrary, any holder delivering to the Paying Agent the
Fundamental Change Repurchase Notice contemplated by this Section 3.01
shall have the right to withdraw, in whole or in part, such Fundamental Change
Repurchase Notice at any time prior to the close of business on the Scheduled
Trading Day immediately preceding the Fundamental Change Repurchase Date in
accordance with Section 3.02.

 

The Paying Agent shall
promptly notify the Company of the receipt by it of any Fundamental Change
Repurchase Notice or written notice of withdrawal thereof.

 

(b)           On or before the 20th calendar day after the occurrence of
the effective date of a Fundamental Change, the Company shall provide notice
(the “Fundamental Change Company Notice”) to all Holders of record of the
Securities and the Trustee of, and issue a press release in respect of (and
make such press release available on the Company’s website), the occurrence of
the Fundamental Change and of the repurchase right at the option of the Holders
arising as a result thereof.  Such notice
shall be effected by first class mail or, in the case of any Global 

 

22

 

Securities, in accordance with the Applicable
Procedures of the Depositary for providing notices. Each Fundamental Change
Company Notice shall specify:

 

(i)            the
events causing the Fundamental Change;

 

(ii)           the
effective date of the Fundamental Change, and whether the Fundamental Change is
a Make-Whole Fundamental Change;

 

(iii)          the
last date on which a holder may exercise the repurchase right pursuant to this Article 3;

 

(iv)          the
Fundamental Change Repurchase Price;

 

(v)           the
Fundamental Change Repurchase Date;

 

(vi)          the
name and address of the Paying Agent and the Conversion Agent;

 

(vii)         the
applicable Conversion Rate, and, if applicable, any adjustments to the
applicable Conversion Rate;

 

(viii)        that
the Securities with respect to which a Fundamental Change Repurchase Notice has
been delivered by a holder may be converted only if the holder withdraws the
Fundamental Change Repurchase Notice in accordance with the terms of this
Indenture;

 

(ix)           that
the holder must exercise the repurchase right on or prior to the close of
business on the Scheduled Trading Day immediately preceding the Fundamental
Change Repurchase Date (the “Fundamental Change Expiration Time”);

 

(x)            that
the holder shall have the right to withdraw any Securities surrendered prior to
the Fundamental Change Expiration Time; and

 

(xi)           the
procedures that holders must follow to require the Company to repurchase their
Securities.

 

No
failure of the Company to give the foregoing notices and no defect therein
shall limit the Holders’ repurchase rights or affect the validity of the
proceedings for the repurchase of the Securities pursuant to this Section 3.01.

 

(c)           Notwithstanding the foregoing, no Securities may be
repurchased by the Company at the option of the Holders upon a Fundamental
Change if the principal amount of the Securities has been accelerated, and such
acceleration has not been rescinded, on or prior to the Fundamental Change
Repurchase Date (except in the case of an acceleration resulting from a Default
by the Company in the payment of the Fundamental Change Repurchase Price with
respect to such Securities).

 

(d)           In connection with any purchase offer, the Company will:

 

23

 

(i)            comply with the provisions of Rule 13e-4, Rule 14e-1
and any other tender offer rules under the Exchange Act, if required under
the Exchange Act,

 

(ii)           file a Schedule TO or any successor or similar
schedule, if required under the Exchange Act, and

 

(iii)          otherwise comply with all federal and state
securities laws in connection with any offer by the Company to purchase the
Securities.

 

Notwithstanding
anything to the contrary provided in this Indenture, compliance by the Company
with Rule 13e-4, Rule 14e-1 and any other tender offer rule under
the Exchange Act in accordance with clause (i) above, to the extent
inconsistent with any other provision of this Indenture, will not, standing
alone, constitute an Event of Default solely as a result of compliance by the
Company with such rules.

 

Notwithstanding the
foregoing the Company shall not be required to repurchase the Securities in
accordance with this Section 3.01 if a third party makes an offer in the
manner, at the times and otherwise in compliance with the requirements set
forth in this Section 3.01 and purchases all Securities validly tendered
and not withdrawn under such purchase offer.

 

Section 3.02.          Withdrawal of Fundamental
Change Repurchase Notice.

 

(a)           A Fundamental Change
Repurchase Notice may be withdrawn by means of a written notice of withdrawal
delivered to the Paying Agent in accordance with this Section 3.02 at any
time prior to the close of business on the Scheduled Trading Day immediately
preceding the Fundamental Change Repurchase Date, specifying:

 

(i)            the principal amount of the Security with respect to
which such notice of withdrawal is being submitted,

 

(ii)           if Certificated Securities have been issued, the
certificate numbers of the withdrawn Securities, and

 

(iii)          the principal amount, if any, of such Security that
remains subject to the original Fundamental Change Repurchase Notice, which
portion must be in principal amounts of $1,000 or an integral multiple of
$1,000;

 

provided,
however, that if the Securities are not Certificated Securities, the notice of
withdrawal of the Fundamental Change Repurchase Notice must comply with
Applicable Procedures of the Depositary.

 

Section 3.03.          Deposit of Fundamental
Change Repurchase Price.

 

(a)           The Company will deposit
with the Trustee (or other Paying Agent appointed by the Company, or if the
Company is acting as its own Paying Agent, set aside, segregate and hold in
trust) on or prior to 11:00 a.m. New York City time, on the Fundamental
Change Repurchase Date an amount of cash sufficient to repurchase all of the
Securities to be repurchased at the appropriate Fundamental Change Repurchase
Price.  Subject to receipt of funds from
the 

 

24

 

Company and Securities from Holders by the
Trustee (or other Paying Agent appointed by the Company), payment for
Securities surrendered for repurchase (and not withdrawn prior to the
Fundamental Change Expiration Time) will be made on the later of (i) the
Fundamental Change Repurchase Date with respect to such Security (provided the holder has satisfied the
conditions in Section 3.01) and (ii) the time of book-entry transfer
or the delivery of such Security to the Trustee (or other Paying Agent
appointed by the Company) by the holder or beneficial owner thereof in the
manner required by Section 3.01 by mailing checks for the amount payable
to the holders of such Securities entitled thereto as they shall appear in the
register for the Securities maintained by the Primary Registrar, provided, however,
that payments to the Depositary shall be made by wire transfer of immediately
available funds to the account of the Depositary or its nominee. The Trustee
shall, promptly after such payment and upon written demand by the Company,
return to the Company any funds in excess of the Fundamental Change Repurchase
Price.

 

(b)           If by 11:00 a.m. New
York City time, on the Fundamental Change Repurchase Date, the Trustee (or
other Paying Agent appointed by the Company) holds money sufficient to make
payment on all the Securities or portions thereof that are to be repurchased as
a result of the corresponding Fundamental Change, then (i) such Securities
will cease to be outstanding, (ii) interest will cease to accrue on such
Securities, and (iii) all other rights of the holders of such Securities
will terminate (other than the right to receive the Fundamental Change
Repurchase Price, and previously accrued but unpaid interest, upon delivery of
the Securities), whether or not book-entry transfer of the Securities has been
made or the Securities have been delivered to the Trustee or Paying Agent.

 

(c)           Upon surrender of a Security
that is to be repurchased in part pursuant to Section 3.01, the Company
shall execute and the Trustee shall authenticate and deliver to the holder a
new Security in an authorized denomination equal in principal amount to the
unrepurchased portion of the Security surrendered.

 

Section 3.04.          Purchase of Securities In
Open Market.

 

The Company may from time to
time repurchase Securities in open market purchases or negotiated transactions
without prior notice to Holders.  Any
Securities surrendered to the Trustee for cancellation pursuant to Section 2.12
may not be reissued or resold by the Company and will be canceled promptly in
accordance therewith.

 

ARTICLE 4

 

CONVERSION

 

Section 4.01.          Right to Convert.

 

(a)           Upon compliance with the
provisions of this Indenture, a Holder of Securities shall have the right, at
such Holder’s option, to convert all or any portion (if the portion to be
converted is $1,000 principal amount or an integral multiple thereof) of such
Securities, at the applicable Conversion Rate then in effect, (x) prior to
the close of business on the Business Day immediately preceding April 15,
2014, only upon satisfaction of one or more of the conditions 

 

25

 

described in clauses (i) through (iv) below
and (y) on or after April 15, 2014, at any time prior to the close of
business on the second Scheduled Trading Day immediately preceding July 15,
2014 irrespective of the conditions described in clauses (i) through (iv) below.

 

(i)            Prior to the close of business on the Business Day
immediately preceding April 15, 2014, a Holder of Securities may surrender
all or a portion of its Securities for conversion during any fiscal quarter
(and only during such fiscal quarter) commencing after September 30, 2009
if the Last Reported Sale Price of the Common Stock for at least 20 Trading
Days during the period of 30 consecutive Trading Days ending on the last
Trading Day of the immediately preceding fiscal quarter is greater than or
equal to 130% of the applicable Conversion Price in effect on each applicable
Trading Day.

 

(ii)           Prior to the close of business on the Business Day
immediately preceding April 15, 2014, a Holder of Securities may surrender
its Securities for conversion during the five Business Day period after any 10
consecutive Trading Day period (the “Measurement
Period”) in which the Trading Price per $1,000 principal amount of
Securities, as determined following a request by a Holder of Securities in
accordance with the procedures set forth in this Section 4.01(a)(ii), for
each Trading Day of such period was less than 98% of the product of the Last
Reported Sale Price of the Common Stock and the applicable Conversion Rate (the
“Trading Price Condition”).  The Bid Solicitation Agent shall have no
obligation to determine the Trading Price of the Securities in accordance with
this Section 4.01(a)(ii) unless requested by the Company, and the
Company shall have no obligation to make such request 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 Last Reported Sale Price of the Common Stock and the applicable
Conversion Rate.  Promptly after
receiving such evidence, the Company shall instruct the Bid Solicitation Agent
to 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 Securities is greater than or equal to 98% of the product
of the Last Reported Sale Price of the Common Stock and the applicable
Conversion Rate.  If the Company does not
so instruct the Bid Solicitation Agent to obtain bids when required, the
Trading Price per $1,000 principal amount of the Securities will be deemed to
be less than 98% of the product of the Last Reported Sale Price of the Common
Stock and the applicable Conversion Rate on each day the Company fails to do
so.  If the Trading Price Condition has
been met, the Company shall so notify Holders, the Trustee and the Conversion
Agent.  If, at any time after the Trading
Price Condition has been met, the Trading Price per $1,000 principal amount of
Securities is greater than or equal to 98% of the product of the Last Reported
Sale Price of the Common Stock and the Conversion Rate for such date, the
Company shall so notify the holders of the Securities, the Trustee and the
Conversion Agent.

 

(iii)          If the Company elects to:

 

(A)          issue to all or substantially all holders of Common
Stock rights entitling them to purchase, for a period expiring within 45 days
after the announcement date of such issuance, shares of Common Stock at less
than the 

 

26

 

average of the Last Reported
Sale Prices of a share of Common Stock for the 10 consecutive Trading Day
period ending on the Trading Day preceding the announcement of such issuance;
or

 

(B)           distribute to all or substantially all holders of
Common Stock assets, debt securities or rights to purchase securities of the
Company, which distribution has a per share value, as reasonably determined by
the Board of Directors, exceeding 10% of the Last Reported Sale Price of the
Common Stock on the Trading Day preceding the declaration date for such
distribution,

 

then, in each case, the
Company shall notify the Holders of the Securities, in the manner provided in Section 11.2
hereof, at least 25 Scheduled Trading Days prior to the Ex-Dividend Date for
such issuance. Once the Company has given such notice, Holders may surrender
Securities for conversion at any time until the earlier of the close of
business on the Business Day immediately prior to such Ex-Dividend Date or the Company’s
announcement that such issuance or distribution will not take place, even if
the Securities are not otherwise convertible at such time.  Notwithstanding the foregoing, a Holder of
Securities may not convert its Securities under the provisions of this Section 4.01(a)(iii) if
such Holder will participate in such issuance or distribution, at the same time
and upon the same terms as a holder of Common Stock, as if such Holder held,
for each $1,000 principal amount of Securities, a number of shares of Common
Stock equal to the Conversion Rate in effect immediately prior to the
Ex-Dividend Date.

 

(iv)          If a transaction or event that constitutes a
Fundamental Change or a Make-Whole Fundamental Change occurs, regardless of
whether a Holder has the right to require the Company to purchase the
Securities pursuant to Article 3 hereof, or if the Company is a party to a
consolidation, merger, binding share exchange, or  sale, transfer or lease of all or
substantially all of the Company’s assets, in each case, pursuant to which the
Common Stock would be converted into cash, securities or other assets, Holders
may surrender Securities for conversion at any time from or after the date
which is 25 Scheduled Trading Days prior to the anticipated effective date of
such transaction until 35 Trading Days after the actual effective date of such
transaction (or, if such transaction also constitutes a Fundamental Change,
until the related Fundamental Change Repurchase Date).  The Company shall notify Holders and the
Trustee as promptly as practicable following the date the Company publicly
announces such transaction, but in no event less than 25 Scheduled Trading Days
prior to the anticipated effective date of such transaction (it being
understood and agreed that the public announcement by the Company of any such
transaction or event shall satisfy in full the Company’s obligation to so
notify Holders of the Securities).

 

(b)           Securities may not be
converted after the close of business on the second Scheduled Trading Day
immediately preceding July 15, 2014.

 

Section 4.02.          Conversion Procedures.

 

(a)           In order to exercise the
conversion privilege with respect to any interest in a Global Security, the
Holder must complete the appropriate instruction form for conversion 

 

27

 

pursuant to the Applicable Procedures of the
Depositary, furnish appropriate endorsements and transfer documents if required
by the Company or the Trustee or Conversion Agent, and pay the funds, if any,
required by Section 4.03(e) and any taxes or duties if required
pursuant to Section 4.07 and the Trustee or Conversion Agent must be
informed of the conversion in accordance with the Applicable Procedures of the
Depositary.  In order to exercise the
conversion privilege with respect to any Certificated Securities, the Holder of
any such Securities to be converted, in whole or in part, shall:

 

(i)            complete and manually sign the conversion notice
provided on the back of the Security (the “Conversion Notice”) or a facsimile
of the Conversion Notice;

 

(ii)           deliver the Conversion Notice, which is irrevocable,
and the Security to the Conversion Agent;

 

(iii)          if required, furnish appropriate endorsements and
transfer documents,

 

(iv)          make any payment required under Section 4.03(e);
and

 

(v)           if required, pay all transfer or similar taxes as
set forth in Section 4.07.

 

The date on which the Holder satisfies all of
the applicable requirements set forth above is the “Conversion Date.”  A Security shall be deemed to have been
converted immediately prior to the close of business on the Conversion
Date.  The Conversion Agent will, as
promptly as possible, and in any event within one Business Day, provide the
Company with notice of any conversion by Holders of the Securities.

 

(b)           Each Conversion Notice shall
state the name or names (with address or addresses) in which any certificate or
certificates for shares of Common Stock which shall be issuable on such
conversion shall be issued.  All such Securities
surrendered for conversion shall, unless the shares issuable on conversion are
to be issued in the same name as the registration of such Securities, be duly
endorsed by, or be accompanied by instruments of transfer in form satisfactory
to the Company duly executed by, the Holder or his duly authorized attorney.

 

(c)           In case any Securities of a
denomination greater than $1,000 shall be surrendered for partial conversion,
the Company shall execute and the Trustee shall authenticate and deliver to the
Holder of the Securities so surrendered, without charge, new Securities in
authorized denominations in an aggregate principal amount equal to the
unconverted portion of the surrendered Securities.

 

Each conversion shall be deemed to have been
effected as to any such Securities (or portion thereof) surrendered for
conversion on the relevant Conversion Date. 
The Person in whose name the certificate for any shares of Common Stock
delivered upon conversion is registered shall be treated as a stockholder of
record as of the close of business on the relevant Conversion Date (if the
Company elects in accordance with the provisions of Section 4.03(c) to
satisfy the related Conversion Obligation solely in shares of Common Stock) or
the last Trading Day of the related Cash Settlement Averaging Period (in the
case of any other Settlement Method elected (or deemed elected) by the Company
in accordance with the provisions of Section 4.03(c)); provided, however,
if such Conversion Date or such last Trading Day of the 

 

28

 

Cash Settlement Averaging Period occurs on
any date when the stock transfer books of the Company shall be closed, such
occurrence shall not be effective to constitute the Person or Persons entitled
to receive any such shares of Common Stock due upon conversion as the record
holder or holders of such shares of Common Stock on such date, but such
occurrence 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. Upon conversion of Securities, such Person shall
no longer be a Holder of Securities.

 

(d)           Upon the conversion of an
interest in Global Securities, the Trustee (or other Conversion Agent appointed
by the Company) shall make a notation on such Global Securities as to the
reduction in the principal amount represented thereby. The Company shall notify
the Trustee in writing of any conversions of Securities effected through any
Conversion Agent other than the Trustee.

 

(e)           Notwithstanding the
foregoing, a Security in respect of which a Holder has delivered a Fundamental
Change Repurchase Notice exercising such Holder’s option to require the Company
to purchase such Securities may be converted only if such notice of exercise is
withdrawn in accordance with Article 3 hereof prior to the close of
business on the Business Day prior to the relevant Fundamental Change
Repurchase Date.

 

Section 4.03.          Settlement Upon Conversion.

 

(a)           Upon any conversion of any
Security, the Company shall pay and/or deliver to converting Holders, in
respect of each $1,000 principal amount of Securities being converted, the
Settlement Amount specified in Section 4.03(b) on the applicable day
specified in Section 4.03(d).

 

(b)           The “Settlement Amount” in
respect of any conversion of Securities shall be the amount of shares of Common
Stock or cash or combination thereof determined as follows:

 

(i)            if the Company elects as its Settlement Method in
accordance with the provisions of Section 4.03(c) to settle its
Conversion Obligation in respect of such conversion solely by delivering shares
of Common Stock, the Company will deliver to the converting Holder a number of
shares of Common Stock equal to (1)(i) the aggregate principal amount of
Securities to be converted, divided by (ii) $1,000,
multiplied by (2) the
then-applicable Conversion Rate;

 

(ii)           if the Company elects as its Settlement Method in
accordance with the provisions of Section 4.03(c) to satisfy its
Conversion Obligation in respect of such conversion by paying solely cash, the
Company shall pay to the converting Holder, cash in an amount per $1,000
principal amount of Securities being converted equal to the sum of the Daily Conversion
Values for each of the 20 consecutive Trading Days during the related Cash
Settlement Averaging Period; and

 

(iii)          if the Company elects as its Settlement Method in
accordance with the provisions of Section 4.03(c) to satisfy its
Conversion Obligation in respect of such conversion by paying and delivering,
as the case may be, a combination of cash and 

 

29

 

shares of Common Stock, if
any, the Company shall pay and deliver to the converting Holder, as the case
may be, in respect of each $1,000 principal amount of Securities being
converted, cash and shares of Common Stock, if any, in an amount equal to the
sum of the Daily Settlement Amounts for each of the 20 consecutive Trading Days
during the related Cash Settlement Averaging Period.

 

(c)           With respect to each
conversion of Securities, the Company shall elect whether it will satisfy the
related Conversion Obligation (x) by delivering solely shares of Common
Stock, (y) by paying solely cash or (z) by paying or delivering, as
the case may be, cash and shares of Common Stock (each, a “Settlement Method”).

 

(i)            With respect to any Conversion Date occurring prior
to April 15, 2014, the Company shall elect a Settlement Method and deliver
to converting Holders a related Settlement Notice no later than the second
Business Day immediately following the relevant Conversion Date (it being
understood that, prior to April 15, 2014, the Company may elect only a
single Settlement Method for a given Conversion Date but may elect different
Settlement Methods for Conversion Dates occurring on different dates).

 

(ii)           With respect to each Conversion Date occurring
during the period commencing on and including April 15, 2014 and ending on
and including the second Scheduled Trading Day preceding the Maturity Date, the
Company shall elect a single Settlement Method applicable to all conversions
during such period and deliver to all Holders the related Settlement Notice
prior to April 15, 2014.

 

(iii)          Each Settlement Notice shall specify the Settlement
Method that the Company has elected and the manner in which the Settlement
Amount shall be calculated in accordance with the provisions of Section 4.03(b).  If in connection with any conversion of
Securities the Company elects as its Settlement Method to pay and deliver, as
the case may be, a combination of cash and shares of Common Stock, such
Settlement Notice shall also designate the Specified Dollar Amount.

 

(iv)          If, in connection with any conversion of Securities,

 

(x)            the Company does not deliver a Settlement Notice
within the time period required by this Section 4.03(c), or

 

(y)           the Company delivers a Settlement Notice within the
time period required by this Section 4.03(c) but such Settlement
Notice does not include the Specified Dollar Amount in the event that the
Company shall have elected to satisfy its Conversion Obligation through the
payment and delivery of a combination of cash and shares of Common Stock,

 

then, in either case, the
Company will be deemed to have elected to deliver a combination of cash and
shares of Common Stock in respect of its Conversion Obligation and the
Specified Dollar Amount shall be deemed to be equal to $1,000.

 

(d)           The Company shall pay or
deliver, as the case may be, the cash, shares of Common Stock or combination
thereof in respect of any relevant Conversion Obligation on the 

 

30

 

third Trading Day immediately following the
last Trading Day of the applicable Cash Settlement Averaging Period; provided that

 

(i)            if the Company elects to fulfill its Conversion
Obligation solely in shares of Common Stock, or

 

(ii)           if prior to the relevant Conversion Date, the Common
Stock has been replaced by Reference Property consisting solely of cash,
pursuant to Section 4.06(b),

 

then,
in either case, the Company shall pay the cash amounts owing on the third
Trading Day immediately following the relevant Conversion Date.  Notwithstanding the foregoing, if any
information required to calculate the Conversion Obligation is not available as
of the applicable date on which the consideration in respect of the Conversion
Obligation shall be payable and/or deliverable, the Company will deliver the
additional consideration resulting from such adjustment on the third Trading
Day after the earliest Trading Day on which such calculation can be made.

 

If any shares of Common
Stock are due to converting Holders, the Company shall issue or cause to be
issued, and deliver to the Conversion Agent or to such Holder, or such Holder’s
nominee or nominees, certificates or a book-entry transfer through the
Depositary for the number of full shares of Common Stock to which such Holder
shall be entitled in satisfaction of such Conversion Obligation.

 

(e)           Upon conversion, a Holder
shall not receive any additional cash payment for accrued and unpaid interest
except as set forth below. The Company’s settlement of the Conversion
Obligations pursuant to Section 4.02 shall be deemed to satisfy its
obligation to pay the principal amount of the Security and accrued and unpaid
interest to, but not including, the Conversion Date. As a result, accrued and
unpaid interest to, but not including, the Conversion Date shall be deemed to
be paid in full rather than cancelled, extinguished or forfeited. Notwithstanding
the preceding sentence, if Securities are converted after the close of business
on a Regular Record Date, Holders of such Securities as of the close of
business on the Regular Record Date will receive the interest payable on such
Securities on the corresponding Interest Payment Date notwithstanding the
conversion. Securities surrendered for conversion during the period from the
close of business on any Regular Record Date to the opening of business on the
corresponding Interest Payment Date must be accompanied by payment of an amount
equal to the interest payable on the Securities so converted; provided, however,
that no such payment shall be required (1) if the Company has specified a
Fundamental Change Repurchase Date that is after a Regular Record Date but on
or prior to the corresponding Interest Payment Date, (2) to the extent of
any Defaulted Interest, if any, existing at the time of conversion with respect
to such Securities or (3) if the Securities are surrendered for conversion
after the close of business on the Regular Record Date immediately preceding
the Maturity Date. Except as set forth in this Section 4.03(e), no payment
or adjustment will be made for accrued and unpaid interest on converted
Securities.

 

(f)            The Company shall not issue
fractional shares of Common Stock upon conversion of Securities. Instead, the
Company shall pay cash in lieu of fractional shares based on the Daily VWAP on
the relevant Conversion Date (if the Company elects to satisfy its Conversion 

 

31

 

Obligation solely in shares of Common Stock
in accordance with the provisions of clause (i) of Section 4.03(b))
or based on the Daily VWAP on the last Trading Day of the relevant Cash
Settlement Averaging Period (in the case of any other Settlement Method).  The number of full shares that shall be
issued upon conversion of Securities by a Holder thereof shall be computed on
the basis of the aggregate principal amount of the Securities (or specified
portions thereof) so surrendered.  If the
Company has elected to deliver a combination of cash and shares of Common Stock
in respect of its Conversion Obligation in accordance with the provisions of
clause (iii) of Section 4.03(b), the provisions of the preceding
sentence shall apply and the number of full shares that shall be issued upon
conversion thereof shall be computed on the basis of the aggregate Daily
Settlement Amounts for the applicable Cash Settlement Averaging Period and any
fractional shares remaining after such computation shall be paid in cash.

 

Section 4.04.          Increased Conversion Rate
Applicable to Securities Surrendered in Connection with Make-Whole Fundamental
Changes.

 

(a)           If a Holder elects to
convert its Securities at any time from and including the Effective Date of a
Make-Whole Fundamental Change until, and including, the close of business on
the second Scheduled Trading Day immediately preceding the related Fundamental
Change Repurchase Date corresponding to such Make-Whole Fundamental Change, or
the 35th Business Day immediately following the Effective Date of such
Make-Whole Fundamental Change (in the case of a Make-Whole Fundamental Change
that does not constitute a Fundamental Change by virtue of the proviso in
clause (2) in the definition of Make-Whole Fundamental Change) (such
period, the “Make-Whole Fundamental Change Period”), the applicable Conversion
Rate shall be increased by an additional number of shares of Common Stock (the “Additional
Shares”) as described in this Section 4.04.

 

(b)           The number of Additional
Shares by which the Conversion Rate will be increased for conversions that
occur during the Make-Whole Fundamental Change Period will be determined by
reference to the table set forth below, based on the date on which the
Make-Whole Fundamental Change occurs or becomes effective (the “Effective Date”)
and the price (the “Stock Price”) paid (or deemed paid) per share of the
Company’s Common Stock in the Make-Whole Fundamental Change.  If holders of Common Stock receive only cash
in a Make-Whole Fundamental Change described in clause (b) of the
definition of Fundamental Change, the Stock Price shall be the cash amount paid
per share of Common Stock.  In the case
of any other Make-Whole Fundamental Change, the Stock Price shall be the
average of the Last Reported Sale Prices of the Common Stock over the 10
consecutive Trading-Day period ending on and including the Trading Day
preceding the Effective Date of the Make-Whole Fundamental Change.

 

(c)           The following table sets
forth the number of Additional Shares, if any, by which the Conversion Rate
will be increased for each Stock Price and Effective Date set forth in the
table below:

 

32

 

Make-Whole Conversion Rate Adjustment

(per $1,000 principal amount of Securities)

 

	
   

  	
   

  	
  Stock Price

  	
   

  
	
  Effective Date

  	
   

  	
  $

  	
   

  	
  $

  	
   

  	
  $

  	
   

  	
  $

  	
   

  	
  $

  	
   

  	
  $

  	
   

  	
  $

  	
   

  	
  $

  	
   

  	
  $

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  July    ,
  2009

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  July 15,
  2010

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  July 15,
  2011

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  July 15,
  2012

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  July 15,
  2013

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  July 15,
  2014

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

The exact Stock Prices and
Effective Dates may not be set forth in the table above, in which case:

 

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

 

(ii)           If the Stock Price is greater than $• per
share (subject to adjustment in the same manner as the Stock Prices set forth
in the table above pursuant to Section 4.04(d) above), no Additional
Shares shall be added to the Conversion Rate.

 

(iii)          If the Stock Price is less than $• per share e
(subject to adjustment in the same manner as the Stock Prices set forth in the
table above pursuant to Section 4.04(d) above), no Additional Shares
shall be added to the Conversion Rate.

 

Notwithstanding
the foregoing, in no event shall the Conversion Rate exceed • shares of
Common Stock per $1,000 principal amount of Securities, subject to adjustments
in the same manner as the Conversion Rate as set forth in Section 4.05.

 

(d)           The Stock Prices set forth
in the first row of the table in Section 4.04(c) shall be adjusted as
of any date on which the Conversion Rate of the Securities is otherwise
adjusted.  The adjusted Stock Prices
shall 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 such adjustment and the denominator of which is the
Conversion Rate as so adjusted.  The
number of Additional Shares set forth in such table shall be adjusted in the
same manner as the Conversion Rate as set forth in Section 4.05.

 

(e)           As soon as practicable after
the Effective date of any Make-Whole Fundamental Change but in no event later
than five Trading Days after such Effective Date, the Company shall mail to
each Holder, the Trustee and the Conversion Agent written notice of, and shall
issue 

 

33

 

a press release announcing, the Effective
Date of such Make-Whole Fundamental Change and make such press release
available on the Company’s web site.  If
applicable, such notice and press release shall also specify the amount, if
any, by which the Conversion Rate shall be increased in accordance with the
provisions of this Section 4.04 and the period in which Securities may be
converted at the increased Conversion Rate.

 

(f)            Nothing in this Section 4.04
shall prevent an adjustment to the Conversion Rate pursuant to Section 4.05.

 

Section 4.05.          Adjustment of Conversion
Rate.

 

The Conversion Rate shall be
adjusted from time to time by the Company if any of the following events
occurs, except that the Company will not make any adjustment to the Conversion
Rate if Holders of Securities participate, as a result of holding the
Securities, in any of the transactions described in this Section 4.05, at
the same time as holders of the Common Stock participate, without having to
convert their Securities as if such Holders held, for each $1,000 principal
amount of Securities, a number of shares of Common Stock equal to the
Conversion Rate in effect at the time any such adjustment would otherwise be
required.

 

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

 

	
  CR = CR0 x OS

  
	
  OS0

  

 

where

 

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

 

CR =                  the applicable Conversion
Rate in effect immediately after the open of business on the Ex-Dividend Date
for such dividend or distribution, or immediately after the open of business on
the effective date of such share split or share combination, as the case may
be;

 

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

 

OS =                  the number of shares of
Common Stock outstanding immediately after such dividend or distribution, or
immediately after the effective date of such share split or share combination,
as the case may be.

 

34

 

Such adjustment shall become
effective immediately after the opening of business on the Ex-Dividend Date for
such dividend or distribution, or the effective date for such share split or
share combination. If any dividend or distribution of the type described in
this Section 4.05(a) is declared but not so paid or made, or the
outstanding shares of Common Stock are not split or combined, as the case may
be, the Conversion Rate shall be immediately readjusted, effective as of the
date the Board of Directors determines not to pay such dividend or
distribution, or split or combine the outstanding shares of Common Stock, as
the case may be, to the Conversion Rate that would then be in effect if such
dividend, distribution, share split or share combination had not been declared
or announced.

 

(b)           If the Company distributes
to all or substantially all holders of its Common Stock any rights, options or
warrants entitling them for a period of not more than sixty days from the
record date for such distribution to subscribe for or purchase shares of the
Common Stock, at a price per share less than the average of the Last Reported
Sale Prices of the Common Stock for the ten consecutive Trading Day period
ending on, and including, the Trading Day immediately preceding the declaration
date for such distribution, the Conversion Rate shall be increased based on the
following formula:

 

	
  CR = CR0 x  

  	
    OS0 + X

  	
   

  
	
   

  	
    OS0 + Y

  

 

where

 

CR0 =                     the applicable Conversion
Rate in effect immediately prior to the open of business on the Ex-Dividend
Date for such distribution;

 

CR =                         the applicable
Conversion Rate in effect immediately after the open of business on the
Ex-Dividend Date for such distribution;

 

OS0 =                    the number of shares of the
Common Stock that are outstanding immediately prior to the open of business on
the Ex-Dividend Date for such distribution;

 

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

 

Y =                                 the number of
shares of the Common Stock equal to the aggregate price payable to exercise
such rights, options or warrants, divided by the average of the Last Reported
Sale Prices of Common Stock over the ten consecutive Trading Day period ending
on, and including, the Trading Day immediately preceding the Ex-Dividend Date
relating to such distribution of such rights, options or warrants.

 

Such adjustment shall be
successively made whenever any such rights, options or warrants are distributed
and shall become effective immediately after the opening of business on the
Ex-Dividend Date for such distribution. 
To the extent that shares of the Common Stock are not delivered after
the expiration of such rights, options or warrants, the Conversion Rate shall
be readjusted to the Conversion Rate that would then be in effect had the
adjustments made upon the issuance of such rights, options or warrants been
made on the basis of delivery of only the number of shares of Common Stock
actually delivered. If such rights, options or warrants are not 

 

35

 

so
issued, the Conversion Rate shall again be adjusted to be the Conversion Rate
that would then be in effect if such Ex-Dividend Date for such distribution had
not been fixed.

 

For purposes of this Section 4.05(b),
in determining whether any rights, options or warrants entitle the holders to
subscribe for or purchase shares of the Common Stock at less than the average
of the Last Reported Sale Prices of the Common Stock for each Trading Day in
the applicable ten-consecutive-Trading Day period, there shall be taken into
account any consideration received by the Company for such rights, options or
warrants and any amount payable on exercise or conversion thereof, the value of
such consideration, if other than cash, to be determined by the Board of
Directors.

 

(c)           If the Company shall
distribute shares of its Capital Stock, evidences of its indebtedness or other
of its assets or property to all or substantially all holders of its Common
Stock other than (i) dividends or distributions (including share splits)
or rights, options or warrants covered by Section 4.05(a) or Section 4.05(b),
(ii) dividends or distributions paid exclusively in cash, and (iii) Spin-Offs
to which the provisions set forth below in this Section 4.05(c) shall
apply, then, in each such case the Conversion Rate shall be increased based on
the following formula:

 

	
  CR = CR0 x  

  	
  SP0

  	
   

  
	
   

  	
  SP0 - FMV

  	
   

  

 

where

 

CR0 =                     the applicable Conversion
Rate in effect immediately prior to the open of business on the Ex-Dividend
Date for such distribution;

 

CR =                         the applicable
Conversion Rate in effect immediately after the open of business on the
Ex-Dividend Date for such distribution.

 

SP0 =                      the average of the Last
Reported Sale Prices of the Common Stock over the ten consecutive Trading Day
period ending on, and including, the Trading Day immediately preceding the
Ex-Dividend Date for such distribution; and

 

FMV =              the fair market value (as
determined by the Board of Directors) of the shares of Capital Stock, evidences
of indebtedness, assets or property distributed with respect to each
outstanding share of the Common Stock as of the open of business on the
Ex-Dividend Date for such distribution.

 

Such adjustment shall become
effective immediately prior to the opening of business on the Ex-Dividend Date
for such distribution; provided that
if “FMV” as set forth above is equal to or greater than “SP0” as set forth above, in
lieu of the foregoing adjustment, adequate provisions shall be made so that
each Holder shall have the right to receive on conversion in respect of each
$1,000 principal amount of the Securities held by such holder, in addition to
the cash, shares of Common Stock or combination thereof to which such Holder
shall be entitled, the amount and kind of shares of the Company’s Capital Stock,
evidences of the Company’s indebtedness or other of the Company’s assets or
property such holder would have received had such holder 

 

36

 

owned
a number of shares of Common Stock equal to the Conversion Rate immediately
prior to the record date for such distribution. If such distribution is not so
paid or made, the Conversion Rate shall again be adjusted to be the Conversion
Rate that would then be in effect if such dividend or distribution had not been
declared. If the Board of Directors determines “FMV” for purposes of this Section 4.05(c) by
reference to the actual or when issued trading market for any securities, it
must in doing so consider the prices in such market over the same period used
in computing the Last Reported Sale Prices of the Common Stock over the ten
consecutive Trading Day period ending on the Trading Day immediately preceding
the Ex-Dividend Date for such distribution.

 

With respect to an
adjustment pursuant to this Section 4.05(c) where there has been a dividend or
other distribution on all or substantially all shares of the Common Stock of
shares of Capital Stock of any class or series, or similar equity interest, of
or relating to a Subsidiary or other business unit of the Company that are or
will be when issued listed on a securities exchange, (a “Spin-Off”), the
Conversion Rate will be increased based on the following formula:

 

	
  CR = CR0 x  

  	
  FMV + MP0

  	
   

  
	
   

  	
  MP0

  	
   

  

 

where

 

	
  CR0 =

  	
  the
  applicable Conversion Rate in effect immediately prior to the open of
  business on the Ex-Dividend Date for the Spin-Off;

  
	
   

  	
   

  
	
  CR
  =

  	
  the
  applicable Conversion Rate in effect immediately after the open of business
  on the Ex-Dividend Date for the Spin-Off;

  
	
   

  	
   

  
	
  FMV0 =

  	
  the
  average of the Last Reported 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 ten consecutive Trading Day period
  immediately following, and including, the Ex-Dividend Date for the Spin-Off
  (such period, the “Valuation Period”), and

  
	
   

  	
   

  
	
  MP0 =

  	
  the
  average of the Last Reported Sale Prices of the Common Stock over the
  Valuation Period.

  

 

The adjustment to the
Conversion Rate under the preceding paragraph of this Section 4.05(c) shall
be made immediately after the opening of business on the day after the last day
of the Valuation Period, but shall become effective as of the opening of
business on the Ex-Dividend Date for the Spin-Off. If the Ex-Dividend Date for
the Spin-Off is less than ten Trading Days prior to, and including, the end of
the Cash Settlement Averaging Period in respect of any conversion references
within this Section 4.05(c) to ten Trading Days shall be deemed
replaced, for purposes of calculating the affected daily Conversion Rates in
respect of that conversion, with such lesser number of Trading Days as have
elapsed from, and including, the Ex-Dividend Date for the Spin-Off to, and
including, the last Trading Day of such Cash Settlement Averaging Period. For
purposes of determining the applicable Conversion Rate, in respect of any
conversion during the ten Trading Days commencing on the Ex- Dividend Date of
any Spin-Off, 

 

37

 

references
in the portion of this Section 4.05(c) related to Spin-Offs to ten
Trading Days shall be deemed replaced with such lesser number of Trading Days
as have elapsed from, and including, the Ex-Dividend Date for such Spin-Off to,
but excluding, the Conversion Date for such conversion.

 

For the purposes of this Section 4.05(c) (and
subject in all respect to Section 4.11), rights, options or warrants
distributed by the Company to all holders of its Common Stock entitling the
holders thereof to subscribe for or purchase shares of the Company’s Capital
Stock, including Common Stock (either initially or under certain
circumstances), which rights, options or warrants, until the occurrence of a
specified event or events (“Trigger Event”): (i) are deemed to be
transferred with such shares of the Common Stock; (ii) are not
exercisable; and (iii) are also issued in respect of future issuances of
the Common Stock, shall be deemed not to have been distributed for purposes of
this Section 4.05 (and no adjustment to the Conversion Rate under this Section 4.05
will be required) until the occurrence of the earliest Trigger Event, whereupon
such rights and warrants shall be deemed to have been distributed and an
appropriate adjustment (if any is required) to the Conversion Rate shall be
made under this Section 4.05(c). If any such right, option or warrant,
including any such existing rights, options or warrants distributed prior to
the date of this Indenture, are subject to events, upon the occurrence of which
such rights, options or warrants become exercisable to purchase different
securities, evidences of indebtedness or other assets, then the date of the
occurrence of any and each such event shall be deemed to be the date of
distribution and Ex-Dividend Date with respect to new rights, options or
warrants with such rights (and a termination or expiration of the existing
rights, options or warrants without exercise by any of the holders thereof). In
addition, in the event of any distribution (or deemed distribution) of rights,
options or warrants, or any Trigger Event or other event (of the type described
in the preceding sentence) with respect thereto that was counted for purposes
of calculating a distribution amount for which an adjustment to the Conversion
Rate under this Section 4.05(c) was made, (1) in the case of any
such rights, options or warrants that shall all have been redeemed or
repurchased without exercise by any holders thereof, the Conversion Rate shall
be readjusted upon such final redemption or repurchase to give effect to such
distribution or Trigger Event, as the case may be, as though it were a cash
distribution, equal to the per share redemption or repurchase price received by
a holder or holders of Common Stock with respect to such rights, options or
warrants (assuming such holder had retained such rights or warrants), made to
all holders of Common Stock as of the date of such redemption or repurchase,
and (2) in the case of such rights, options or warrants that shall have
expired or been terminated without exercise by any holders thereof, the
Conversion Rate shall be readjusted as if such rights, options and warrants had
not been issued.

 

For purposes of this Section 4.05(c),
Section 4.05(a), and Section 4.05(b), any dividend or distribution to
which this Section 4.05(c) is applicable that also includes shares of
Common Stock, or rights, options or warrants to subscribe for or purchase
shares of Common Stock to which Section 4.05(b) applies (or both),
shall be deemed instead to be (1) a dividend or distribution of the
evidences of indebtedness, assets or shares of capital stock other than such
shares of Common Stock or rights, options or warrants to which Section 4.05(c) applies
(and any Conversion Rate adjustment required by this Section 4.05(c) with
respect to such dividend or distribution shall then be made) immediately
followed by (2) a dividend or distribution of such shares of Common Stock
or such rights, options or warrants (and any further Conversion Rate adjustment
required by Section 4.05(a) and Section 4.05(b) with
respect to such dividend or 

 

38

 

distribution
shall then be made), except (A) the Ex-Dividend Date of such dividend or
distribution shall be substituted as “the Ex-Dividend Date,” “the Ex-Dividend
Date relating to such distribution of such rights, options or warrants” and “the
Ex-Dividend Date for such distribution” within the meaning of Section 4.05(a) and
Section 4.05(b) and (B) any shares of Common Stock included in
such dividend or distribution shall not be deemed “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 the case may be”
within the meaning of Section 4.05(a) or “outstanding immediately
prior to the Ex-Dividend Date for such dividend or distribution” within the
meaning of Section 4.05(b).

 

(d)           If the Company shall make or
pay any cash dividend or distribution to all or substantially all holders of
its outstanding Common Stock in an amount per share of Common Stock that
exceeds the Dividend Threshold Amount, the applicable Conversion Rate shall be
increased based on the following formula:

 

	
  CR = CR0 x  

  	
  SP0

  	
   

  
	
   

  	
  SP0 - C  

  	
   

  

 

where

 

CR0 =                     the applicable Conversion
Rate in effect immediately prior to the open of business on the Ex-Dividend
Date for such dividend or distribution;

 

CR =                         the applicable
Conversion Rate in effect immediately after the open of business on the
Ex-Dividend Date for such dividend or distribution;

 

SP0 =                       the average of the Last
Reported Sale Prices of the Common Stock over the ten consecutive Trading Day
period ending on, and including, the Trading Day immediately preceding the
Ex-Dividend Date for such dividend or distribution; and

 

C =                                 the amount in
cash per share the Company pays or distributes to holders of its Common Stock
in excess of the Dividend Threshold Amount (which Dividend Threshold Amount
will be deemed to be zero if the dividend or distribution is not a regular
quarterly cash dividend).

 

The “Dividend Threshold
Amount” is initially $0.04 and is subject to adjustment in a manner inversely
proportional to adjustments to the conversion rate; provided that no adjustment will be made to the dividend
threshold amount for any adjustment to the conversion rate under this clause
(4).

 

Such adjustment shall become
effective immediately after the opening of business on the Ex-Dividend Date for
such dividend or distribution; provided that
if “C” as set forth above is equal to or greater than “SP0” as set forth above, in
lieu of the foregoing adjustment, adequate provision shall be made so that each
Holder shall have the right to receive on the date on which the relevant cash
dividend or distribution is distributed to holders of Common Stock, for each
$1,000 principal amount of Securities, the amount of cash such holder would
have received had such holder owned a number of shares equal to the Conversion
Rate on the record date for such 

 

39

 

distribution.
If such dividend or distribution is not so paid or made, the Conversion Rate
shall again be adjusted to be the Conversion Rate that would then be in effect
if such dividend or distribution had not been declared.

 

For the avoidance of doubt,
for purposes of this Section 4.05(d), in the event of any reclassification
of the Common Stock, as a result of which the Securities become convertible
into more than one class of Common Stock, if an adjustment to the Conversion
Rate is required pursuant to this Section 4.05(d), references in this Section to
one share of Common Stock or Last Reported Sale Prices of one share of Common
Stock shall be deemed to refer to a unit or to the price of a unit consisting
of the number of shares of each class of Common Stock into which the Securities
are then convertible equal to the numbers of shares of such class issued in
respect of one share of Common Stock in such reclassification. The above
provisions of this paragraph shall similarly apply to successive
reclassifications.

 

(e)           If the Company or any of its
Subsidiaries makes a payment in respect of a tender offer or exchange offer for
the Common Stock and if the cash and value of any other consideration included
in the payment per share of the Common Stock exceeds the last reported 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 Date”), the Conversion Rate shall be increased based on
the following formula:

 

	
  CR = CR0 x  

  	
  AC + (SP x OS)

  	
   

  
	
   

  	
  OS0 x SP

  	
   

  

 

where

 

CR0  =                 the applicable Conversion Rate in effect
immediately prior to the open of business on the Trading Day next succeeding
the Expiration Date;

 

CR =                         the applicable
Conversion Rate in effect immediately after the open of business on the Trading
Day next succeeding the Expiration Date;

 

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

 

OS0 =                     the number of shares of
Common Stock outstanding immediately prior to the time (the “Expiration Time”)
such tender or exchange offer expires (prior to giving effect to such tender
offer or exchange offer);

 

OS =                         the number of
shares of Common Stock outstanding immediately after the Expiration Time (after
giving effect to such tender offer or exchange offer); and

 

SP =                           the average of
the Last Reported Sale Prices of Common Stock over the ten consecutive Trading
Day period commencing on, and including, the Trading Day next succeeding the
Expiration Date.

 

40

 

Such adjustment under this Section 4.05(e) shall
become effective at the opening of business on the Trading Day next succeeding
the Expiration Date. If the Trading Day next succeeding the Expiration Date is
less than ten Trading Days prior to, and including, the end of the Cash
Settlement Averaging Period in respect of any conversion, references within
this Section 4.05(e) to ten Trading Days shall be deemed replaced,
for purposes of calculating the affected daily Conversion Rates in respect of
that conversion, with such lesser number of Trading Days as have elapsed from,
and including, the Trading Day next succeeding the Expiration Date to, and
including, the last Trading Day of such Cash Settlement Averaging Period. For
purposes of determining the applicable Conversion Rate, in respect of any
conversion during the ten Trading Days commencing on the Trading Day next
succeeding the Expiration Date, references within this Section 4.05(e) to
ten Trading Days shall be deemed replaced with such lesser number of Trading
Days as have elapsed from, and including, the Trading Day next succeeding the
Expiration Date to, but excluding, the Conversion Date for such conversion. If
the Company is obligated to purchase shares pursuant to any such tender or
exchange offer, but the Company is permanently prevented by applicable law from
effecting any or all or any portion of such purchases or all such purchases are
rescinded, the Conversion Rate shall again be adjusted to be the Conversion
Rate that would then be in effect if such tender or exchange offer had not been
made or had been made only in respect of the purchases that had been effected.
In no event shall the Conversion Rate be decreased pursuant to this Section 4.05(e).

 

(f)            For purposes of this Section 4.05,
the term “record date” means, with respect to any dividend, distribution or
other transaction or event in which the holders of Common Stock (or other
security) have the right to receive any cash, securities or other property or
in which the Common Stock (or other applicable security) is exchanged for or
converted into any combination of cash, securities or other property, the date
fixed for determination of stockholders entitled to receive such cash,
securities or other property (whether such date is fixed by the Board of
Directors or by statute, contract or otherwise).

 

(g)           In addition to those
required by clauses (a), (b), (c), (d) and (e) of this Section 4.05,
and to the extent permitted by applicable law and subject to the applicable rules of
the New York Stock Exchange, the Company from time to time may increase the
Conversion Rate by any amount for a period of at least twenty Business Days if
the Board of Directors determines that such increase would be in the Company’s
best interest.  Whenever the Conversion
Rate is increased pursuant to the preceding sentence, the Company shall mail to
the holder of each Security at its last address appearing on the register for
the Securities maintained by the Primary Registrar a notice of the increase at
least five days prior to the date the increased Conversion Rate takes effect,
and such notice shall state the increased Conversion Rate and the period during
which it will be in effect.

 

(h)           The Company may (but is not
required to) increase the Conversion Rate to avoid or diminish any income tax
to holders of Common Stock or rights to purchase Common Stock in connection
with any dividend or distribution of shares (or rights to acquire shares) or
similar event.  Whenever the Conversion
Rate is increased pursuant to the preceding sentence, the Company shall mail to
the holder of each Security at its last address appearing on the register for
the Securities maintained by the Primary Registrar a notice of the increase at
least five days prior 

 

41

 

to the date the increased Conversion Rate
takes effect, and such notice shall state the increased Conversion Rate and the
period during which it will be in effect.

 

(i)            All calculations and other
determinations under this Article 4 shall be made by the Company and shall
be made to the nearest one-ten thousandth (1/10,000) of a share. The Company
shall not be required to make an adjustment in the Conversion Rate unless the adjustment
would require a change of at least 1% in the Conversion Rate. However, the
Company shall carry forward any adjustments that are less than 1% of the
Conversion Rate and make such carried forward adjustment, regardless of whether
the aggregate adjustment is less than 1%, (i) upon any conversion of
Securities, and (ii) on each of the 22 Scheduled Trading Days immediately
preceding the Maturity Date.

 

(j)            Whenever the Conversion Rate
is adjusted as herein provided, the Company shall promptly file with the
Trustee and any Conversion Agent other than the Trustee an Officer’s
Certificate setting forth the Conversion Rate after such adjustment and setting
forth a brief statement of the facts requiring such adjustment. Unless and
until a Responsible Officer of the Trustee shall have received such Officer’s
Certificate, the Trustee shall not be deemed to have knowledge of any
adjustment of the Conversion Rate and may assume without inquiry that the last
Conversion Rate of which it has knowledge is still in effect. Promptly after
delivery of such certificate, the Company shall prepare a notice of such
adjustment of the Conversion Rate setting forth the adjusted Conversion Rate
and the date on which each adjustment becomes effective and shall mail such
notice of such adjustment of the Conversion Rate to each holder of the
Securities within ten days of the effective date of such adjustment. Failure to
deliver such notice shall not affect the legality or validity of any such
adjustment.

 

(k)           For purposes of this Section 4.05,
the number of shares of Common Stock at any time outstanding shall not include
shares held in the treasury of the Company but shall include shares issuable in
respect of scrip certificates issued in lieu of fractions of shares of Common
Stock. The Company will not pay any dividend or make any distribution on shares
of Common Stock held in the treasury of the Company.

 

(l)            The Company shall not take
any action that would result in adjustment of the Conversion Rate, pursuant to
this Article 4, in such a manner as to result in the reduction of the
Conversion Price to less than the par value per share of Common Stock.  Notwithstanding any of the provisions of this
Section 4.05, if the application of the foregoing formulas set forth in
this Section 4.05 would result in a decrease in the Conversion Rate, no
adjustment to the Conversion Rate shall be made (other than as a result of a
share split or share combination).

 

(m)          Notwithstanding this Section 4.05
or any other provision of this Indenture or the Securities, if any Conversion
Rate adjustment becomes effective, or any Ex-Dividend Date for any issuance,
dividend or distribution (relating to a required Conversion Rate adjustment)
occurs, during the period beginning on, and including, the open of business on
a Conversion Date and ending on, and including, (x) the close of business
on the third Trading Day immediately following the relevant Conversion Date (if
the Company elects to satisfy the related Conversion Obligation solely in
shares of Common Stock) or (y) the close of business on the last Trading
Day of a related Cash Settlement Averaging Period (in the case of any other
Settlement Method), the Board of Directors shall make adjustments to the
Conversion Rate and the amount of cash or 

 

42

 

number of shares of Common Stock issuable
upon conversion of the Securities, as the case may be, as are necessary or
appropriate to effect the intent of this Section 4.05 and the other
provisions of this Article 4 and to avoid unjust or inequitable results,
as determined in good faith by the Board of Directors. Any adjustment made
pursuant to this Section 4.05(m) shall apply in lieu of the
adjustment or other term that would otherwise be applicable.

 

(n)           Except as set forth in this Article 4,
the Company shall not adjust the Conversion Rate.  The applicable Conversion Rate will not be
adjusted:

 

(i)            upon the issuance of any shares of the Common Stock
pursuant to any present or future plan providing for the reinvestment of
dividends or interest payable on the Company’s securities and the investment of
additional optional amounts in shares of the Common Stock under any plan;

 

(ii)           upon the issuance of any shares of the Common Stock
or options or rights to purchase those shares pursuant to any present or future
employee, director or consultant benefit plan or program of, or assumed by, the
Company or any of the Company’s Subsidiaries;

 

(iii)          upon the issuance of any shares of the Common Stock
pursuant to any option, warrant, right or exercisable, exchangeable or
convertible security not described in clause (ii) of this subsection and
outstanding as of the date the Securities were first issued;

 

(iv)          for a change in the par value of the Common Stock;

 

(v)           for accrued and unpaid interest; or

 

(vi)          except as stated herein, for the issuance of shares
of its Common Stock or any securities convertible into or exchangeable for
shares of its Common Stock or the right, option or warrant to purchase shares
of its Common Stock or such convertible or exchangeable securities.

 

Section 4.06.          Effect of Reclassification,
Consolidation, Merger or Sale.

 

(a)           Upon the occurrence of

 

(i)            any recapitalization, reclassification or change of
the outstanding shares of Common Stock (other than a change in par value, or
from par value to no par value, or from no par value to par value, or as a
result of a split, subdivision or combination covered by Section 4.05(a)),

 

(ii)           any consolidation, merger, combination or binding
share exchange involving the Company, or

 

(iii)          any sale, lease or conveyance of all or
substantially all of the property and assets of the Company to any other
Person,

 

43

 

(any
such event a “Merger Event”) in each case as a result of which holders of
Common Stock shall be entitled to receive cash, securities or other property or
assets with respect to or in exchange for such Common Stock, then at the
effective time of such transaction, the Company or the successor or purchasing
Person, as the case may be, shall execute with the Trustee a supplemental
indenture (which shall comply with the Trust Indenture Act as in force at the
date of execution of such supplemental indenture) providing that at and after
the effective time of such transaction, the right to convert a Security will be
changed into a right to convert it as set forth in this Indenture into the kind
and amount of shares of stock, other securities or other property or assets
(including cash or any combination thereof) that a holder of a number of shares
of Common Stock equal to the Conversation Rate prior to such transaction would
have owned or been entitled to receive upon such transaction (the “Reference
Property”), subject to the provisions of Section 4.06(b).  The Company shall not become a party to any
such transaction unless its terms are consistent with this Section 4.06.  Such supplemental indenture shall provide for
adjustments which shall be as nearly equivalent as may be practicable to the
adjustments provided for in this Article 4 in the judgment of the Board of
Directors or the board of directors of the successor Person.  If, in the case of any Merger Event the
Reference Property receivable thereupon by a holder of Common Stock includes
shares of stock, securities or other property or assets (including cash or any
combination thereof) of a Person other than the successor or purchasing Person,
as the case may be, in such Merger Event, then such supplemental indenture
shall also be executed by such other Person. 
For purposes of the foregoing, if any Merger Event causes the Common
Stock to be converted into the right to receive more than a single type of
consideration (determined based in part upon any from of stockholder election),
the Reference Property into which the Securities will be convertible as set
forth in this Indenture shall be deemed to be the weighted average of the types
and amounts of consideration received by the holders of Common Stock (or a plurality
thereof if holders of Common Stock are entitled to make multiple elections
pursuant to the applicable Merger Event) that affirmatively make such an
election (the “Weighted Average Consideration”).

 

(b)           With respect to each $1,000
principal amount of Securities surrendered for conversion after the effective
date of any Merger Event, the Company’s Conversion Obligation shall be settled
in cash or units of Reference Property (each consisting of the kind and amount
of shares of stock, securities or other property or assets (including cash or
any combination thereof) that a holder of one share of Common Stock immediately
prior to such Merger Event shall have received (or shall be deemed to have
received) in such Merger Event) or a combination thereof, at the Company’s
election, in accordance with Section 4.02(b) but subject to the
following provisions:

 

(i)            if the Company elects to satisfy its Conversion
Obligation in respect of such conversion by delivering solely Reference
Property, the Company shall deliver to the converting Holder a number of units
of Reference Property equal to (1) the aggregate principal amount of
Securities to be converted, divided by
$1,000, multiplied by (2) the then-applicable Conversion Rate;

 

(ii)           if the Company elects to satisfy its Conversion
Obligation in respect of such conversion by paying solely cash, the Company
shall pay to the converting Holder cash in an amount per $1,000 principal
amount of Securities equal to the sum of the Daily Conversion Values for each
of the 20 consecutive Trading Days during the related Cash 

 

44

 

Settlement Averaging Period,
where such Daily Conversion Values are determined by reference to the Daily
VWAP of a unit of Reference Property in lieu of the Common Stock; and

 

(iii)          if the Company elects to satisfy its Conversion
Obligation through delivery of a combination of cash and Reference Property,
the Company shall deliver in respect of each $1,000 principal amount of
Securities being converted, a Settlement Amount equal to the sum of the Daily
Settlement Amounts for each of the 20 consecutive Trading Days during the Cash
Settlement Averaging Period, where such Daily Settlement Amounts are determined
by reference to the Daily VWAP of a unit of Reference Property in lieu of the
Common Stock.

 

(c)           The Company shall cause
notice of the execution of any supplemental indenture in accordance with the
provisions of this Section 4.06 to be mailed to each Holder, at the
address of such Holder as it appears on the register of the Securities
maintained by the Primary Registrar, within 20 days after execution
thereof.  Failure to deliver such notice
shall not affect the legality or validity of such supplemental indenture.  In addition, in the event that the Securities
become convertible into Reference Property pursuant to this Section 4.06,
the Company shall notify the Trustee and issue a press release containing the
relevant information (and make such press release available on the Company’s
website).  If applicable, the Company
shall notify the holders and the Trustee of the Weighted Average Consideration
as soon as practicable after the Weighted Average Consideration is determined.

 

(d)           If this Section 4.06
applies to any event or occurrence, Section 4.05 shall not apply.

 

(e)           The above provisions of this
Section shall similarly apply to successive Merger Events.

 

Section 4.07.          Taxes on Shares Issued.

 

If a Holder submits
Securities for conversion, the Company shall pay all stamp and other duties, if
any, that may be imposed by the United States or any political subdivision
thereof or taxing authority thereof or therein with respect to the issuance of
shares of Common Stock, if any, upon the conversion. However, the Holder shall
pay any such tax that is due because the holder requests any shares of Common
Stock to be issued in a name other than the Holder’s name. The Conversion Agent
may refuse to deliver the certificates representing the shares of Common Stock
being issued in a name other than the Holder’s name until the Trustee receives
a sum sufficient to pay any tax that 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 regulations.

 

Section 4.08.          Reservation of Shares;
Shares to be Fully Paid; Compliance With Governmental Requirements; Listing of
Common Stock.

 

The Company shall provide,
free from preemptive rights, out of its authorized but unissued shares or
shares held in treasury, sufficient shares of Common Stock to satisfy
conversion of the Securities from time to time as such Securities are presented
for conversion 

 

45

 

(assuming
that, at the time of the computation of such number of shares or securities,
all such Securities would be converted by a single Holder).

 

The Company covenants that
all shares of Common Stock that may be issued upon conversion of Securities
shall be newly issued shares or treasury shares, shall be duly authorized,
validly issued, fully paid and non-assessable and shall be free from preemptive
rights and free from any tax, lien or charge (other than those created by the
Holder).  The Company further covenants
that, if any shares of Common Stock to be provided for the purpose of
conversion of Securities hereunder require registration with or approval of any
governmental authority under any federal or state law before such shares may be
validly issued upon conversion, the Company will, to the extent then permitted
by the rules and interpretations of the Securities and Exchange
Commission, secure such registration or approval, as the case may be.

 

The Company shall list or
cause to have quoted any shares of Common Stock to be issued upon conversion of
Securities on each national securities exchange or over-the-counter or other
domestic market on which the Common Stock is then listed or quoted.

 

Section 4.09.          Responsibility of Trustee.

 

The Trustee and any other
Conversion Agent shall not at any time be under any duty or responsibility to
any Holder to determine the Conversion Rate (or any adjustment thereto) or
whether any facts exist that may require any adjustment (including any
increase) of the Conversion Rate, or with respect to the nature or extent or
calculation of any such adjustment when made, or with respect to the method
employed, or herein or in any supplemental indenture provided to be employed,
in making the same. The Trustee and any other Conversion Agent shall not be
accountable with respect to the validity or value (or the kind or amount) of
any shares of Common Stock, or of any securities, property or cash that may at
any time be issued or delivered upon the conversion of any Security; and the
Trustee and any other Conversion Agent make no representations with respect thereto.
Neither the Trustee nor any Conversion Agent shall be responsible for any
failure of the Company to issue, transfer or deliver any shares of Common Stock
or stock certificates or other securities or property or cash upon the
surrender of any Security for the purpose of conversion or to comply with any
of the duties, responsibilities or covenants of the Company contained in this
Article. Without limiting the generality of the foregoing, neither the Trustee
nor any Conversion Agent shall be under any responsibility to determine the
correctness of any provisions contained in any supplemental indenture entered
into pursuant to Section 4.06 relating either to the kind or amount of
shares of stock or securities or property (including cash) receivable by Holders
upon the conversion of their Securities after any event referred to in such Section 4.06
or to any adjustment to be made with respect thereto, but, subject to the
provisions of Section 8.03 hereof, may accept (without any independent
investigation) as conclusive evidence of the correctness of any such
provisions, and shall be protected in relying upon, the Officer’s Certificate
(which the Company shall be obligated to file with the Trustee prior to the
execution of any such supplemental indenture) with respect thereto. The rights,
privileges, protections, immunities and benefits given to the Trustee,
including without limitation its right to be compensated, reimbursed, and
indemnified, are extended to, and shall be enforceable by, the Trustee in each of
its capacities hereunder, including its capacity as Conversion Agent.

 

46

 

Section 4.10.          Notice to Holders Prior to
Certain Actions.

 

In case:

 

(a)           the Company shall declare a dividend (or any other
distribution) on its Common Stock that would require an adjustment in the
Conversion Rate pursuant to Section 4.05; or

 

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

 

(c)           of any reclassification of the Common Stock of the
Company (other than a subdivision or combination of its outstanding Common
Stock, or a change in par value, or from par value to no par value, or from no
par value to par value), or of any consolidation or merger to which the Company
is a party and for which approval of any stockholders of the Company is
required, or of the sale or transfer of all or substantially all of the assets
of the Company; or

 

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

 

the
Company shall cause to be filed with the Trustee and to be mailed to each
Holder, as promptly as practicable but in any event at least twenty days prior
to the applicable date hereinafter specified, a notice stating (i) the
date on which a record is to be taken for the purpose of such dividend,
distribution or rights, options or warrants, or, if a record is not to be
taken, the date as of which the holders of Common Stock of record to be
entitled to such dividend, distribution or rights are to be determined, or (ii) the
date on which such reclassification, consolidation, merger, sale, transfer,
dissolution, liquidation or winding-up is expected to become effective or
occur, and the date as of which it is expected that holders of Common Stock of
record shall be entitled to exchange their Common Stock for securities or other
property deliverable upon such reclassification, consolidation, merger, sale,
transfer, dissolution, liquidation or winding-up. Failure to give such notice,
or any defect therein, shall not affect the legality or validity of such
dividend, distribution, reclassification, consolidation, merger, sale,
transfer, dissolution, liquidation or winding-up.

 

Section 4.11.          Stockholder Rights Plans.

 

To the extent that the
Company has a stockholder rights plan or other “poison pill” in effect upon
conversion of the Securities, each share of Common Stock, if any, issued upon
such conversion shall be entitled to receive the appropriate number of rights,
if any, and the certificates representing the Common Stock issued upon such
conversion shall bear such legends, if any, in each case as may be provided by
the terms of any such stockholder rights plan or poison pill, as the same may
be amended from time to time. If, however, prior to the time of conversion, the
rights have separated from the shares of Common Stock in accordance with the
provisions of the applicable stockholder rights agreement so that the holders
of the Securities would not be entitled to receive any rights in respect of
Common Stock, if any, issuable upon conversion of the Securities, the
Conversion Rate will be adjusted at the time of separation as if 

 

47

 

the
Company has distributed to all holders of Common Stock, shares of Capital Stock
of the Company, evidence of indebtedness or assets or other property having a
fair market value of the rights as provided in Section 4.05(c), subject to
readjustment in the event of the expiration, termination or redemption of such
rights.

 

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 shall be considered paid on the date it is due if the Paying Agent
(other than the Company) (or if the Company is the Paying Agent, the segregated
account or separate trust fund maintained by the Company pursuant to Section 2.04)
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. Accrued and unpaid
interest on any Security that is payable (whether or not 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. The Company shall, to the fullest extent permitted by law,
pay interest in immediately available funds on overdue principal 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 day
preceding 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 in the Borough of Manhattan, The
City of New York (which shall initially be 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 on any Certificated Securities
having an aggregate principal amount of $5,000,000 or less may be made by check
mailed to the address of the Person entitled thereto as such address appears in
the register maintained by the Primary Registrar; provided
further that a Holder of a Certificated Security having an aggregate
principal amount of more than $5,000,000 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. In the case of a
permanent Global Security, interest payable on any applicable payment date will
be paid to the Depositary, with respect to that portion of such permanent
Global Security held for its account by Cede & Co. for the purpose of
permitting such party to credit the interest received by it in respect of such
permanent Global Security to the accounts of the beneficial owners thereof.

 

48

 

Section 5.02.          Reports by Company.

 

The Company shall deliver to
the Trustee, within 15 days after it is required to file the same with the SEC,
copies of all annual reports, quarterly reports and other documents that it
files with the SEC pursuant to Sections 13 or 15(d) of the Exchange
Act.  The Company also shall comply with
the provisions of TIA Section 314(a). 
The Trustee agrees that any such information, documents or reports filed
with the SEC pursuant to its Electronic Data Gathering, Analysis and Retrieval
(or EDGAR) system or any successor thereto shall constitute delivery of the
same to the Trustee.

 

Section 5.03.          Compliance Certificates.

 

The Company shall deliver to
the Trustee, within one hundred twenty (120) days after the end of each fiscal
year of the Company (beginning with the fiscal year ending June 30, 2009),
an Officer’s Certificate as to the signer’s knowledge of the Company’s
compliance with all 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
Officer’s 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.  Such certificates need not comply with Section 11.04
of this Indenture.

 

The Company shall deliver to
the Trustee, as soon as possible and in any event within 30 days after the
occurrence of any Default or Event of Default an Officer’s Certificate setting
forth the details of such Default or Event of Default and the action which the
Company proposes to take with respect thereto.

 

Section 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.          Stay, Extension And Usury
Laws.

 

The Company covenants (to
the extent that they 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 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.

 

49

 

Section 5.06.          Maintenance of Office or
Agency.

 

The Company shall maintain
an office or agency where Securities may be presented or surrendered for
payment. The Company also will maintain an office or agency where Securities
may be surrendered for registration of transfer or exchange and where notices
and demands to or upon the Company in respect of the Securities and this
Indenture may be served. The office of the Trustee, at its Corporate Trust Office,
will be such office or agency of the Company, unless the Company shall
designate and maintain some other office or agency for one or more of such
purposes. The Company will give prompt written notice to the Trustee of the
location and any change in the location of any such offices or agencies. If at
any time the Company shall fail to maintain any such required offices or
agencies or shall fail to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the
office of the Trustee and the Company hereby appoints the Trustee as its agent
to receive all such presentations, surrenders, notices and demands.

 

The Company may from time to
time designate one or more other offices or agencies (in or outside of The City
of New York) where the Securities may be presented or surrendered for any or
all such purposes, and may from time to time rescind such designation. The
Company will give prompt written notice to the Trustee of any such designation
or rescission and any change in the location of any such office or agency.

 

ARTICLE 6

 

CONSOLIDATION; MERGER; SALE
OF ASSETS

 

Section 6.01.          Company May Consolidate,
Etc., Only on Certain Terms.

 

(a)           The Company shall not
consolidate with or merge with or into, or convey, transfer, or lease all or
substantially all of the Company’s property or assets to, another Person,
unless:

 

(1)           the resulting, surviving or transferee Person (if
other than the Company) shall be a corporation organized and validly existing
under the laws of the United States of America or any State thereof or the
District of Columbia, and such Person shall expressly assume by a supplemental
indenture, the due and punctual payment of the principal of and interest on all
the Securities and the performance and observance of every covenant of this
Indenture to be performed or observed on the part of the Company;

 

(2)           after giving effect to the transaction, no Default
or Event of Default shall have occurred and be continuing;

 

(3)           if the Company will not be the resulting or
surviving Person, the Company shall have, at or prior to the effective date of
such consolidation or merger or sale, conveyance, assignment, transfer, lease
or other disposition, delivered to the Trustee an Officer’s Certificate and an
Opinion of Counsel, each stating that such consolidation, merger or transfer
complies with this Article 6.01 and, if a supplemental indenture is
required in connection with such transaction, such supplemental indenture
complies with 

 

50

 

this Article, and that all conditions precedent herein provided for
relating to such transaction have been complied with.

 

Section 6.02.          Successor Substituted.

 

Upon any consolidation of
the Company with, or merger of the Company into, any other Person or any
transfer or lease of all or substantially all of the Company’s assets in
accordance with Section 6.01, the successor Person formed by such
consolidation or into which the Company is merged or to which such 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, 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.

 

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

 

(1)           a default in the payment of the principal amount of
any Security when the same becomes due and payable whether on the Maturity
Date, upon required repurchase, upon declaration of acceleration or otherwise;

 

(2)           a default in the payment of any interest upon any
Security when it becomes due and payable, and continuance of such default for a
period of 30 days;

 

(3)           the failure to comply with the obligation to convert
Securities into Common Stock, cash or a combination of cash and common stock,
as applicable, upon exercise of a Holder’s conversion right and such failure
continues for five days;

 

(4)           failure by the Company to provide a Fundamental
Change Repurchase Notice within the time required to provide such notice as set
forth in Section 3.01(b) hereof or the failure to provide notice of
any transaction or event specified in Section 4.01(a)(iii) or 4.01(a)(iv) within
the time required to provide such notice as forth in the relevant Section and
such failure continues for five days;

 

(5)           default in the performance, or breach, of any
covenant or agreement by the Company in the Indenture (other than a covenant or
agreement a default in whose performance or whose breach is specifically dealt
with in clauses (1) through (4) of this Section 7.01), and
continuance of such default or breach for a period of 60 consecutive days after
written notice thereof has been given to us by the Trustee or to the Trustee
and 

 

51

 

the Company by the Holders of at least 25% in aggregate principal
amount of the Outstanding Securities;

 

(6)           an event of default (or comparable default) under
any bonds, debentures or other instruments under which there may be issued
evidences of indebtedness (other than the Securities) by the Company or any of
its Significant Subsidiaries having, individually or in the aggregate, a
principal or similar amount outstanding of at least $35 million, whether such
indebtedness now exists or shall hereafter be created, which event of default
(or comparable default) shall have resulted in the acceleration of the maturity
of at least $35 million of such indebtedness prior to its express maturity or
shall constitute a failure to pay at least $35 million of such indebtedness
when due and payable after the expiration of any applicable grace period with
respect thereto and such event of default (or comparable default) shall not
have been rescinded or annulled or such indebtedness shall not have been
discharged and such event of default (or comparable default) continues for a
period of 30 consecutive days after written notice to the Company by the
Trustee or to the Company and the Trustee by the Holders of 25% or more in
aggregate principal amount of the Securities then outstanding;

 

(7)           the entry
against the Company or any of its Subsidiaries that is a Significant Subsidiary
of a final judgment or final judgments for the payment of money in an aggregate
amount in excess of $35 million (excluding any amounts covered by insurance),
by a court or courts of competent jurisdiction, which judgments remain
undischarged, unwaived, unstayed, unbonded or unsatisfied for a period of 60
days after (i) the date on which the right to appeal or petition for
review thereof has expired if no such appeal or review has commenced, or (ii) the
date on which all rights to appeal or petition for review have been
extinguished;

 

(8)           the Company, any Subsidiary that is a Significant Subsidiary pursuant to
or within the meaning of the Bankruptcy Law:

 

(A)          commences a voluntary case;

 

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

 

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

 

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

 

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

 

(A)          is for relief against the Company or any Subsidiary that is a
Significant Subsidiary in an involuntary case;

 

52

 

(B)           appoints a custodian of the Company or any Subsidiary that is a
Significant Subsidiary or for all or substantially all of the property and
assets of the Company or any such Subsidiary; or

 

(C)           orders the liquidation of the Company or any Subsidiary that is a
Significant Subsidiary and the order or decree remains unstayed and in effect
for 60 consecutive days.

 

Section 7.02.          Acceleration.

 

(a)           In case one or more Events
of Default shall have occurred and be continuing (whatever the reason for such
Event of Default and whether it shall be voluntary or involuntary or be
effected by operation of law or pursuant to any judgment, decree or order of
any court or any order, rule or regulation of any administrative or
governmental body), then, and in each and every such case (other than an Event
of Default specified in clause (7) or clause (8) of Section 7.01
with respect to the Company (and not solely with respect to a Significant
Subsidiary of the Company)), unless the principal of all of the Securities
shall have already become due and payable, either the Trustee or the holders of
at least 25% in aggregate principal amount of the Securities then outstanding
by notice in writing to the Company (and to the Trustee if given by Holders),
may declare 100% of the principal of and accrued and unpaid interest on all the
Securities to be due and payable immediately, and upon any such declaration the
same shall become and shall automatically be immediately due and payable,
anything in this Indenture or in the Securities contained to the contrary
notwithstanding.  If an Event of Default
specified in clause (7) or clause of (8) of Section 7.01 with
respect to the Company (and not solely with respect to a Significant Subsidiary
of the Company) occurs and is continuing, the principal of all the Securities
and accrued and unpaid interest shall be immediately due and payable.

 

After a declaration of
acceleration with respect to the Securities, but 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 a majority in aggregate principal
amount of the Securities Outstanding, by written notice to the Company and the
Trustee, may rescind and annul such declaration and its consequences if:

 

(A)          the Company has paid or deposited with the Trustee a
sum sufficient to pay

 

(1)           all sums paid or advanced by the Trustee under this
Indenture and the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel,

 

(2)           all overdue interest on all Outstanding Securities,

 

(3)           the principal of any Outstanding Securities which
have become due otherwise than by such declaration of acceleration and interest
thereon at the rate borne by the Securities, and

 

(4)           to the extent that payment of such interest is
lawful, interest upon overdue interest at the rate borne by the Securities;

 

53

 

(B)           the rescission would not conflict with any judgment
or decree of a court of competent jurisdiction; and

 

(C)           all Defaults or Events of Default, other than the
non-payment of principal of and interest on the Securities which have become
due solely by such declaration of acceleration, have been cured or waived as
provided in Section 7.13.

 

No
such rescission shall affect any subsequent Default or impair any right
consequent thereon.

 

(b)           Notwithstanding the
foregoing and notwithstanding anything in this Indenture or in the Securities
to the contrary, if the Company so elects, the sole remedy of Holders for an
Event of Default relating to any obligation to file reports as required under Section 5.02
of this Indenture shall, for the first 180 days after the occurrence of
such an Event of Default (which will be the 60th day after written notice is
provided to the Company in accordance with Section 7.02(a)), consist
exclusively of the right to receive Additional Interest on the Securities at an
annual rate equal to (x) 0.25% of the Outstanding principal amount of the
Securities for the first 90 days an Event of Default is continuing in such
180-day period and (y) 0.50% of the Outstanding principal amount of the
Securities for the remaining 90 days an Event of Default is continuing in
such 180-day period. Additional Interest shall be payable in arrears on each
Interest Payment Date following the occurrence of such Event of Default in the
same manner as regular interest on the Securities.  On the 181st day after such Event of Default
(if such violation is not cured or waived prior to such 181st day), the
Securities will be subject to acceleration as provided in Section 7.02(a).
The provisions set forth in this Section 7.02(b) shall not affect the
rights of the Holders in the event of the occurrence of any other Event of
Default.  In the event the Company does
not elect to pay Additional Interest upon an Event of Default in accordance
with the provisions of this paragraph, the Securities will be subject to
acceleration as provided in Section 7.02(a).

 

The Company may elect to pay
Additional Interest as the sole remedy under this Section 7.02(b) by
giving notice to the Holders, the Trustee and Paying Agent of such election on
or before the close of business on the 5th Business Day after the date on which
such Event of Default otherwise would occur. If the Company fails to timely
give such notice or pay Additional Interest, the Securities will be immediately
subject to acceleration as provided in Section 7.02(a).

 

Whenever in this Indenture
there is mentioned, in any context, the payment of interest on, or in respect
of, any Security, such mention shall be deemed to include mention of the
payment of “Additional Interest” provided for in this Section 7.02(b) to
the extent that, in such context, Additional Interest is, was or would be
payable in respect thereof pursuant to the provisions of such sections, and
express mention of the payment of Additional Interest (if applicable) in any
provision shall not be construed as excluding Additional Interest in those
provisions where such express mention is not made.

 

Section 7.03.          Collection of Indebtedness
and Suits for Enforcement by Trustee.

 

The Company covenants that
if:

 

(a)           default is made in the
payment of any interest on any Security when such interest becomes due and
payable and such default continues for a period of 30 days, or

 

54

 

(b)           default is made in the payment of the
principal of any Security at the Stated Maturity thereof,

 

the Company will, upon demand of the Trustee, pay to it, for the
benefit of the Holders of such Securities, the whole amount then due and
payable on such Securities for principal and interest, with interest upon the
overdue principal and, to the extent that payment of such interest shall be
legally enforceable, upon overdue installments of interest, at the rate borne
by the Securities; and, in addition thereto, 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.

 

If the Company fails to pay
such amounts forthwith upon such demand, the Trustee, in its own name and as
trustee of an express trust, may institute a judicial proceeding for the
collection of the sums so due and unpaid and may prosecute such proceeding to
judgment or final decree, and may enforce the same against the Company and
collect the moneys adjudged or decreed to be payable in the manner provided by
law out of the property of the Company, wherever situated.

 

If an Event of Default
occurs and is continuing, the Trustee may in its discretion proceed to protect
and enforce its rights and the rights of the Holders under this Indenture by
such appropriate private or judicial proceedings as the Trustee shall deem most
effectual to protect and enforce such rights, whether for the specific
enforcement of any covenant or agreement in this Indenture or in aid of the
exercise of any power granted herein, or to enforce any other proper remedy,
subject however to Section 7.12. No recovery of any such judgment upon any
property of the Company shall affect or impair any rights, powers or remedies
of the Trustee or the Holders.

 

Section 7.04.          Trustee May File Proofs
of Claim.

 

In case of the pendency of
any receivership, insolvency, liquidation, bankruptcy, reorganization,
arrangement, adjustment, composition or other judicial proceeding relative to
the Company or the property of the Company, the Trustee (irrespective of
whether the principal of the Securities shall then be due and payable as
therein expressed or by declaration or otherwise and irrespective of whether
the Trustee shall have made any demand on the Company for the payment of
overdue principal or interest) shall be entitled and empowered, by intervention
in such proceeding or otherwise,

 

(a)           to file and prove a claim
for the whole amount of principal and interest owing and unpaid in respect of
the Securities and to file such other papers or documents as may be necessary
or advisable in order to have the claims of the Trustee (including any claim
for the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel) and of the Holders allowed in such judicial
proceeding, and

 

(b)           to collect and receive any moneys or
other property payable or deliverable on any such claims and to distribute the
same;

 

and any custodian, receiver, assignee, trustee, liquidator,
sequestrator or similar official in any such judicial proceeding is hereby
authorized by each Holder to make such payments to the 

 

55

 

Trustee
and, in the event that the Trustee shall consent to the making of such payments
directly to the Holders, to pay the Trustee any amount due it for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, and any other amounts due the Trustee under Section 8.07.

 

Nothing herein contained
shall be deemed to authorize the Trustee to authorize or consent to or accept
or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Securities or the rights of any Holder
thereof, or to authorize the Trustee to vote in respect of the claim of any
Holder in any such proceeding.

 

Section 7.05.          Trustee May Enforce
Claims Without Possession of Securities.

 

All rights of action and
claims under this Indenture or the Securities may be prosecuted and enforced by
the Trustee without the possession of any of the Securities or the production
thereof in any proceeding relating thereto, and any such proceeding instituted
by the Trustee shall be brought in its own name and as trustee of an express
trust, and any recovery of judgment shall, after provision for the payment of
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, be for the ratable benefit of the Holders of
the Securities in respect of which such judgment has been recovered.

 

Section 7.06.          Application of Money
Collected.

 

Any money collected by the
Trustee pursuant to this Article 7 or otherwise on behalf of the Holders
or the Trustee pursuant to this Article 7 or through any proceeding or any
arrangement or restructuring in anticipation or in lieu of any proceeding
contemplated by this Article 7 and any money or other property
distributable in respect of the Company’s obligations under this Indenture
after an Event of Default shall be applied, subject to applicable law, in the following
order, at the date or dates fixed by the Trustee and, in case of the
distribution of such money on account of principal or interest, upon
presentation of the Securities and the notation thereon of the payment if only
partially paid and upon surrender thereof if fully paid:

 

FIRST: To the payment of all
amounts due the Trustee (or any predecessor trustee) under Section 8.07;

 

SECOND: To the payment of
the amounts then due and unpaid upon the Securities for principal and interest,
in respect of which or for the benefit of which such money has been collected,
ratably, without preference or priority of any kind, according to the amounts
due and payable on such Securities for principal and interest; and

 

THIRD: The balance, if any,
to the Person or Persons entitled thereto, including the Company, provided that
all sums due and owing to the Holders and the Trustee have been paid in full as
required by this Indenture.

 

Section 7.07.          Limitation on Suits.

 

Subject to Section 7.08,
no Holder of any Securities shall have any right to institute any proceeding,
judicial or otherwise, with respect to this Indenture or the Securities, or for
the appointment of a receiver or trustee, or for any other remedy hereunder,
unless

 

56

 

(a)           such Holder has previously
given written notice to the Trustee of a continuing Event of Default;

 

(b)           the Holders of not less than
25% in aggregate principal amount of the Outstanding Securities shall have made
written request to the Trustee to institute proceedings in respect of such
Event of Default in its own name as trustee hereunder;

 

(c)           such Holder or Holders have
offered to the Trustee indemnity reasonably satisfactory to it against any
loss, liability or expense to be incurred in compliance with such request;

 

(d)           the Trustee for 60 days
after its receipt of such notice, request and offer (and if requested,
provision) of indemnity has failed to institute any such proceeding; and

 

(e)           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 principal amount of the Outstanding Securities;

 

it being understood and intended that no one or more Holders shall have
any right in any manner whatever by virtue of, or by availing of, any provision
of this Indenture or any Security to affect, disturb or prejudice the rights of
any other Holders, or to obtain or to seek to obtain priority or preference
over any other Holders or to enforce any right under this Indenture or any
Security, except in the manner provided in this Indenture and for the equal and
ratable benefit of all the Holders.

 

Section 7.08.          Unconditional Right 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 amount, interest, Fundamental Change Repurchase Price,
if any, or Additional Interest, if any, in respect of the Securities held by
such Holder, on or after the respective due dates expressed in the Securities
and 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 7.09.          Restoration of Rights and
Remedies.

 

If the Trustee or any Holder
has instituted any proceeding to enforce any right or remedy under this
Indenture and such proceeding has been discontinued or abandoned for any
reason, or has been determined adversely to the Trustee or to such Holder, then
and in every such case the Company, the Trustee and the Holders shall, subject
to any determination in such proceeding, be restored severally and respectively
to their former positions hereunder, and thereafter all rights and remedies of
the Trustee and the Holders shall continue as though no such proceeding had
been instituted.

 

57

 

Section 7.10.          Rights and Remedies
Cumulative.

 

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

 

Section 7.11.          Delay or Omission Not Waiver.

 

No delay or omission of the
Trustee or of any Holder of any Security to exercise any right or remedy
accruing upon any Event of Default shall impair any such right or remedy or
constitute a waiver of any such Event of Default or an acquiescence therein.
Every right and remedy given by this Article 7 or by law to the Trustee or
to the Holders may be exercised from time to time, and as often as may be
deemed expedient, by the Trustee or by the Holders, as the case may be.

 

Section 7.12.          Control by Holders.

 

The Holders of not less than
a majority in aggregate principal amount of the Outstanding Securities shall
have the right to direct the time, method and place of conducting any
proceeding for exercising any remedy available to the Trustee, or exercising
any trust or power conferred on the Trustee, provided that:

 

(a)           such direction shall not be
in conflict with any rule of law or with this Indenture, expose the
Trustee to personal liability, or be unduly prejudicial to Holders not joining
therein; and

 

(b)           subject to the provisions of
Section 315 of the TIA, the Trustee may take any other action deemed
proper by the Trustee which is not inconsistent with such direction.

 

Section 7.13.          Waiver of Past Defaults.

 

Subject to Section 7.08,
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 a Default or Event of Default with respect
to the payment of the principal of or any accrued but unpaid interest on any
Security, the failure to repurchase Securities in accordance with the
provisions of Article 3 or the failure by the Company to deliver, upon
conversion of Securities, cash, shares of Common Stock or a combination
thereof, 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.

 

58

 

Section 7.14.          Undertaking for Costs.

 

All parties to this
Indenture agree, and each Holder of any Security by his acceptance thereof
shall be deemed to have agreed, that any court may in its discretion require,
in any suit for the enforcement of any right or remedy under this Indenture, or
in any suit against the Trustee for any action taken, suffered or omitted by it
as Trustee, the filing by any party litigant in such suit of an undertaking to
pay the costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys’ fees, against any party
litigant in such suit, having due regard to the merits and good faith of the
claims or defenses made by such party litigant, but the provisions of this Section shall
not apply to any suit instituted by the Trustee, to any suit instituted by any
Holder, or group of Holders, holding in the aggregate more than 10% in
principal amount of the Outstanding Securities, or to any suit instituted by
any Holder for the enforcement of the payment of the principal of or interest
on, any Security on or after the respective Stated Maturities expressed in such
Security (or, in the case of purchase pursuant to Article 3 hereof, on the
Fundamental Change Repurchase Date).

 

Section 7.15.          Remedies Subject to
Applicable Law.

 

All rights, remedies and
powers provided by this Article 7 may be exercised only to the extent that
the exercise thereof does not violate any applicable provision of law in the
premises, and all the provisions of this Indenture are intended to be subject
to all applicable mandatory provisions of law which may be controlling in the
premises and to be limited to the extent necessary so that they will not render
this Indenture invalid, unenforceable or not entitled to be recorded,
registered or filed under the provisions of any applicable law.

 

ARTICLE
8

 

TRUSTEE

 

Section 8.01.          Duties of Trustee.

 

(a)           In case an Event of Default
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 their exercise, as a prudent person would exercise or use under the
circumstances in the conduct of his own affairs.

 

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

 

(1)           the Trustee undertakes to perform those duties and
only those duties as are specifically set forth in this Indenture, and no
implied covenants or obligations shall be read into this Indenture against the
Trustee; and

 

(2)           in the absence of bad faith on its part, the Trustee
may conclusively rely, as to the truth of the statements and the correctness of
the opinions expressed therein, upon certificates or opinions furnished to the
Trustee and conforming to the requirements of this Indenture.  However, in the case of any such certificates
or opinions which by any provision hereof are specifically required to be
furnished to the Trustee, the Trustee shall 

 

59

 

be under a duty to examine the same to determine whether or not they
conform to the requirements of this Indenture.

 

(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 clause (c) does not limit the effect of
clauses (b) or (d) of this Section 8.01;

 

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

 

(3)           the Trustee shall not be liable with respect to any
action it takes or omits to take in good faith in accordance with a direction
of the Holders of a majority in principal amount of Outstanding Securities
relating to the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred
upon the Trustee under this Indenture.

 

(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, if it shall have
reasonable grounds for believing that repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it.

 

(e)           Whether or not therein
expressly so provided, every provision of this Indenture that in any way
relates to the Trustee is subject to clauses (a), (b), (c), (d) and (f) of
this Section 8.01.

 

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

 

Section 8.02.          Notice of Default.

 

Within 90 days after the
occurrence of any Default, the Trustee shall transmit by mail to all Holders
and any other Persons entitled to receive reports pursuant to Section 313(c) of
the TIA, as their names and addresses appear in the Security Register, notice
of such Default hereunder known to the Trustee, unless such Default shall have
been cured or waived; provided, however, that, except in the case of a Default in the
payment of the principal of or interest on any Security or the failure to
deliver amounts owing upon conversion of a Security in accordance with the
provisions of Article 4, the Trustee shall be protected in withholding
such notice if and so long as a trust committee of Trust Officers of the
Trustee in good faith determines that the withholding of such notice is in the
interest of the Holders.

 

Section 8.03.          Certain Rights of Trustee.

 

Subject to the provisions of
Section 8.01 hereof:

 

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(a)           the Trustee may conclusively
rely and shall be fully protected in acting or refraining from acting upon
receipt by it of any resolution, certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order, bond, debenture, note,
other evidence of indebtedness or other paper or document believed by it to be
genuine and to have been signed or presented by the proper party or parties;

 

(b)           any request or direction of
the Company mentioned herein shall be sufficiently evidenced by a Company
Request or Company Order and any resolution of the Board of Directors may be
sufficiently evidenced by a Board Resolution;

 

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

 

(d)           the Trustee shall be under
no obligation to exercise any of the rights or powers vested in it by this
Indenture at the request 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 any loss, liability or
expense which might be incurred by it in compliance with such request or
direction;

 

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

 

(f)            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, approval, appraisal, bond, debenture, note,
coupon, security 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 deem 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;

 

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

 

(h)           the Trustee shall not be
charged with knowledge of or be deemed to have notice of any Default or Event
of Default with respect to the Securities unless written notice of such Default
or Event of Default shall have been received by the Trustee at its Corporate
Trust Office from the Company or any Holder of Securities, and such notice
references this Indenture and the Securities;

 

(i)            the permissive rights of the
Trustee enumerated herein shall not be construed as duties of the Trustee;

 

61

 

(j)            whenever in the
administration of this Indenture the Trustee shall deem it desirable that a
matter be proved or established prior to taking, suffering or omitting any
action hereunder, the Trustee (unless other evidence be herein specifically
prescribed) may, in the absence of bad faith on its part, conclusively rely
upon an Officer’s Certificate;

 

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

 

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

 

(m)          the Trustee shall not be
responsible or liable for any failure or delay in the performance of its
obligations under this Indenture arising out of or caused, directly or
indirectly, by circumstances beyond its reasonable control, including, without
limitation, acts of God, earthquakes, fire, flood, terrorism, wars and other
military disturbances, sabotage, epidemics, riots, interruptions, loss or
malfunctions of utilities, computer (hardware or software) or communication
services, accidents, labor disputes, acts of civil or military authority and
governmental action.

 

Section 8.04.          Trustee Not Responsible for
Recitals, Dispositions of Securities or Application of Proceeds Thereof.

 

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

 

Section 8.05.          Trustee and Agents May Hold
Securities; Collections; etc.

 

The Trustee, any Paying
Agent, Registrar, Conversion Agent or any other agent of the Company, in its
individual or any other capacity, may become the owner or pledgee of
Securities, with the same rights it would have if it were not the Trustee,
Paying Agent, Registrar, Conversion Agent or such other agent and, subject to
TIA Sections 310 and 311, may otherwise deal with the Company and receive,
collect, hold and retain collections from the Company with the same rights it
would have if it were not the Trustee, Paying Agent, Registrar, Conversion
Agent or such other agent.

 

Section 8.06.          Money Held in Trust.

 

All moneys received by the
Trustee shall, until used or applied as herein provided, be held in trust for
the purposes for which they were received, but need not be segregated from
other funds except to the extent required by mandatory provisions of law.

 

62

 

Section 8.07.          Compensation and
Indemnification of Trustee and Its Prior Claim.

 

The Company covenants and
agrees to pay to the Trustee from time to time, and the Trustee shall be
entitled to, such compensation as the parties shall agree in writing from time
to time for all services rendered by it hereunder (which compensation shall not
be limited by any provision of law in regard to the compensation of a trustee
of an express trust) and the Company covenants and agrees to pay or reimburse
the Trustee and each predecessor Trustee upon its request for all reasonable
expenses, disbursements and advances incurred or made by or on behalf of the
Trustee in accordance with any of the provisions of this Indenture (including
the reasonable compensation and the expenses and disbursements of its counsel
and of all agents and other persons not regularly in its employ) except any
such expense, disbursement or advance as may arise from its negligence, bad
faith or willful misconduct. The Company also covenants and agrees to indemnify
the Trustee and each predecessor Trustee for, and to hold it harmless against,
any claim, loss, liability, tax, assessment or other governmental charge (other
than taxes applicable to the Trustee’s compensation hereunder) or expense
incurred without negligence, bad faith or willful misconduct on its part,
arising out of or in connection with the acceptance or administration of this
Indenture or the trusts hereunder and its duties hereunder, including
enforcement of this Section 8.07 and also including any liability which
the Trustee may incur as a result of failure to withhold, pay or report any
tax, assessment or other governmental charge, and the costs and expenses of
defending itself against or investigating any claim or liability in connection
with the exercise or performance of any of its powers or duties hereunder. The
obligations of the Company under this Section 8.07 to compensate and
indemnify the Trustee and each predecessor Trustee and to pay or reimburse the
Trustee and each predecessor Trustee for reasonable expenses, disbursements and
advances shall constitute an additional obligation hereunder and, together with
the lien referred in the next sentence, shall survive the satisfaction and
discharge, and termination for any reason, of this Indenture and the
resignation or removal of the Trustee and each predecessor Trustee. To secure
the Company’s obligations in this Section 8.07, the Trustee shall have a
lien prior to the Securities on all money and property held or collected by the
Trustee, other than money or property held in trust for the payment of
principal of or interest on particular Securities.

 

“Trustee” for purposes of
this Section shall include any predecessor Trustee; provided, however,
that the negligence, willful misconduct or bad faith of any Trustee hereunder
shall not affect the rights of any other Trustee hereunder.

 

Without prejudice to its
other rights hereunder, when the Trustee incurs expenses or renders services in
connection with an Event of Default specified in Section 7.01(a)(8) or
Section 7.01(a)(9), the expenses (including the reasonable charges and
expenses of its counsel) and the compensation for the services are intended to
constitute expenses of administration under any applicable Federal or State
bankruptcy, insolvency or other similar law.

 

Section 8.08.          Conflicting Interests.

 

The Trustee shall comply
with the provisions of Section 310(b) of the TIA.  For purposes of Section 310(b)(1) of
the TIA and to the extent permitted thereby, the Trustee, in its capacity as
trustee in respect of the Securities, shall not be deemed to have a conflicting
interest arising from its capacity as trustee in respect of any indenture or
indentures, if any, pursuant to which other 

 

63

 

securities
or certificates of interest or participation in other securities of the Company
are outstanding if the requirements for such exclusion set forth in said Section 310(b)(1) are
met.  Nothing herein shall preclude the
Trustee from making the application referred to in the penultimate paragraph of
Section 310(b) of the TIA.

 

Section 8.09.          Trustee Eligibility.

 

There shall at all times be
a Trustee hereunder which shall be eligible to act as trustee under TIA Section 310(a) and
which shall have a combined capital and surplus of at least $50,000,000, to the
extent there is an institution eligible and willing to serve. If the Trustee
does not have a Corporate Trust Office in The City of New York, the Trustee may
appoint an agent in The City of New York reasonably acceptable to the Company
to conduct any activities which the Trustee may be required under this
Indenture to conduct in The City of New York. If such Trustee publishes reports
of condition at least annually, pursuant to law or to the requirements of
federal, state, territorial or District of Columbia supervising or examining
authority, then for the purposes of this Section 8.09, the combined
capital and surplus of such corporation shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so
published. If at any time the Trustee shall cease to be eligible in accordance
with the provisions of this Section 8.09, the Trustee shall resign
immediately in the manner and with the effect hereinafter specified in this Article 8.

 

Section 8.10.          Resignation and Removal;
Appointment of Successor Trustee.

 

(a)           No resignation or removal of
the Trustee and no appointment of a successor trustee pursuant to this Article 8
shall become effective until the acceptance of appointment by the successor
trustee under Section 8.11.

 

(b)           The Trustee, or any trustee
or trustees hereafter appointed, may at any time resign by giving written
notice thereof to the Company.  Such
resignation shall take effect upon the appointment of a successor Trustee and
the acceptance of such appointment by such successor Trustee.  If the instrument of acceptance by a
successor Trustee required by Section 811 shall not have been delivered to
the Trustee within 30 days after the giving of such notice of resignation or of
any removal of the Trustee as hereinafter provided, the resigning or removed
Trustee may petition any court of competent jurisdiction for the appointment of
a successor Trustee with respect to the Securities.

 

(c)           The Trustee may be removed
at any time for any cause or for no cause by an Act of the Holders of not less
than a majority in aggregate principal amount of the Outstanding Securities,
delivered to the Trustee and to the Company.

 

(d)           If at any time:

 

(1)           the Trustee shall fail to comply with the provisions
of TIA Section 310(b) after written request therefor by the Company
or by any Holder who has been a bona fide Holder of a Security for at least six
months,

 

64

 

(2)           the Trustee shall cease to be eligible under Section 8.09
and shall fail to resign after written request therefor by the Company or by
any Holder who has been a bona fide Holder of a Security for at least six
months, or

 

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

 

then, in any case, (i) the
Company may remove the Trustee, or (ii) subject to Section 7.14, the
Holder of any Security who has been a bona fide Holder of a Security for at
least six months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the removal of the Trustee and
the appointment of a successor trustee. Such court may thereupon, after such
notice, if any, as it may deem proper and prescribe, remove the Trustee and
appoint a successor trustee.

 

(e)           If the Trustee shall be
removed or become incapable of acting, or if a vacancy shall occur in the
office of Trustee for any cause, the Company shall promptly appoint a successor
trustee and shall comply with the applicable requirements of Section 8.11.
If, within 60 days after such removal or incapability, or the occurrence of
such vacancy, the Company has not appointed a successor Trustee, a successor
trustee shall be appointed by the Act of the Holders of a majority in principal
amount of the Outstanding Securities delivered to the Company and the retiring
Trustee. Such successor trustee so appointed shall forthwith upon its
acceptance of such appointment become the successor trustee. If no successor
trustee shall have been so appointed by the Company or the Holders of the
Securities and accepted appointment in the manner hereinafter provided, the
Trustee or the Holder of any Security who has been a bona fide Holder for at
least six months may, subject to Section 7.14, on behalf of himself and
all others similarly situated, petition any court of competent jurisdiction for
the appointment of a successor trustee.

 

(f)            The Company shall give
notice of each resignation and each removal of the Trustee and each appointment
of a successor trustee by mailing written notice of such event by first-class
mail, postage prepaid, to the Holders of Securities as their names and
addresses appear in the register of the Registrar. Each notice shall include
the name of the successor trustee and the address of its Corporate Trust Office
or agent hereunder.

 

Section 8.11.          Acceptance of Appointment by
Successor.

 

(a)           Every successor trustee
appointed hereunder shall execute, acknowledge and deliver to the Company and
to the retiring Trustee an instrument accepting such appointment, and thereupon
the resignation or removal of the retiring Trustee shall become effective and
such successor trustee, without any further act, deed or conveyance, shall
become vested with all the rights, powers, trusts and duties of the retiring
Trustee as if originally named as Trustee hereunder; but, nevertheless, on the
written request of the Company or the successor trustee, upon payment of its
charges pursuant to Section 8.07 then unpaid, such retiring Trustee shall pay
over to the successor trustee all moneys at the time held by it hereunder,
subject nevertheless to its lien provided for in Section 8.07, and shall
execute and deliver an instrument transferring to such successor trustee all
such rights, powers, trusts and duties. 
Upon request of any such 

 

65

 

successor trustee, the Company shall execute
any and all instruments for more fully and certainly vesting in and confirming
to such successor trustee all such rights and powers.

 

(b)           No successor trustee with
respect to the Securities shall accept appointment as provided in this Section 8.11
unless at the time of such acceptance such successor trustee shall be eligible
to act as trustee under the provisions of TIA Section 310(a) and this
Article 8 and shall have a combined capital and surplus of at least
$50,000,000 and have a Corporate Trust Office or an agent selected in
accordance with Section 8.09.

 

(c)           Upon acceptance of
appointment by any successor trustee as provided in this Section 8.11, the
Company shall give notice thereof to the Holders of the Securities, by mailing
such notice to such Holders at their addresses as they shall appear on the
Security Register. If the acceptance of appointment is substantially
contemporaneous with the appointment, then the notice called for by the
preceding sentence may be combined with the notice called for by Section 8.10.
If the Company fails to give such notice within 10 days after acceptance of
appointment by the successor trustee, the successor trustee shall cause such
notice to be given at the expense of the Company.

 

Section 8.12.          Merger, Conversion,
Consolidation or Succession to Business.

 

Any Person into which the
Trustee may be merged or converted or with which it may be consolidated, or any
Person resulting from any merger, conversion or consolidation to which the
Trustee shall be a party, or any Person succeeding to all or substantially all
of the corporate trust business of the Trustee (including the trust created by
this Indenture) shall be the successor of the Trustee hereunder, provided that such Person shall be eligible under TIA Section 310(a) and
this Article 8 and shall have a combined capital and surplus of at least
$50,000,000 and have a Corporate Trust Office or an agent selected in
accordance with Section 8.09, without the execution or filing of any paper
or any further act on the part of any of the parties hereto.

 

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

 

Section 8.13.          Preferential Collection of
Claims Against Company.

 

If and when the Trustee
shall be or become a creditor of the Company, the Trustee shall be subject to
the provisions of the TIA regarding the collection of claims against the
Company. A Trustee who has resigned or been removed shall be subject to TIA Section 311(a) to
the extent indicated therein.

 

66

 

Section 8.14.          Reports By Trustee.

 

(a)           Within 60 days after June 15
of each year commencing with the first June 15 after the issuance of
Securities, the Trustee, if so required under the TIA, shall transmit by mail to
all Holders, in the manner and to the extent provided in TIA Section 313(c),
a brief report dated as of such June 15 in accordance with and with
respect to the matters required by TIA Section 313(a). The Trustee shall
also transmit by mail to all Holders, in the manner and to the extent provided
in TIA Section 313(c), a brief report in accordance with and with respect
to the matters required by TIA Section 313(b)(2).

 

(b)           A copy of each report
transmitted to Holders pursuant to this Section 8.14 shall, at the time of
such transmission, be mailed to the Company and filed with each national
securities exchange, if any, upon which the Securities are listed and also with
the SEC. The Company will notify the Trustee promptly if the Securities are
listed on any national securities exchange.

 

ARTICLE 9

 

SATISFACTION AND DISCHARGE
OF INDENTURE

 

Section 9.01.          Satisfaction and Discharge
of the Indenture.

 

When (i) the Company
shall deliver to the Trustee for cancellation all Securities theretofore
authenticated (other than any Securities that have been destroyed, lost or
stolen and in lieu of or in substitution for which other Securities shall have
been authenticated and delivered) and not theretofore canceled, or (ii) all
the Securities not theretofore canceled or delivered to the Trustee for
cancellation shall have become due and payable (whether on the Maturity Date,
on any Fundamental Change Repurchase Date or following the Conversion Date or
the last Trading Day of the applicable Cash Settlement Averaging Period, as the
case may be, upon conversion or otherwise) and the Company shall deposit with
the Trustee, in trust, or deliver to the Holders, as applicable, cash funds and
shares of Common Stock, if and as applicable, sufficient to pay or deliver all
amounts due on all of such Securities (other than any Securities that shall
have been mutilated, destroyed, lost or stolen and in lieu of or in
substitution for which other Securities shall have been authenticated and
delivered) not theretofore canceled or delivered to the Trustee for
cancellation, including principal and interest due, accompanied, except in the
event the Securities are due and payable solely in cash on the Maturity Date of
the Securities or upon an earlier Fundamental Change Repurchase Date, by a verification
report as to the sufficiency of the deposited amount from an independent
certified accountant or other financial professional reasonably satisfactory to
the Trustee (which may include any of the Underwriters), and if the Company
shall also pay or cause to be paid all other sums payable hereunder by the
Company, then this Indenture shall cease to be of further effect (except as to (A) rights
hereunder of Holders of the Securities to receive all amounts owing upon the
Securities and the other rights, duties and obligations of Holders of the
Securities, as beneficiaries hereof with respect to the amounts, if any, so
deposited with the Trustee and (B) the rights, obligations and immunities
of the Trustee hereunder), and the Trustee, on written demand of the Company
accompanied by an Officer’s Certificate and an Opinion of Counsel as required
by Section 11.04 hereof and at the cost and expense of the 

 

67

 

Company,
shall execute proper instruments acknowledging satisfaction and discharge of
this Indenture.

 

Section 9.02.          Deposited Monies to Be Held
in Trust by Trustee.

 

Subject to Section 9.04,
all monies deposited with the Trustee pursuant to Section 9.01 shall be
held in trust for the sole benefit of the Holders of the Securities, and such
monies shall be applied by the Trustee to the payment, either directly or
through any Paying Agent (including the Company if acting as its own Paying
Agent), to the Holders of the particular Securities for the payment or redemption
of which such monies have been deposited with the Trustee, of all sums due and
to become due thereon for principal and interest, if any.

 

Section 9.03.          Paying Agent to Repay Monies
Held.

 

Upon the satisfaction and
discharge of this Indenture, all monies then held by any Paying Agent of the
Securities (other than the Trustee) shall, upon written request of the Company,
be repaid to it or paid to the Trustee, and thereupon such Paying Agent shall
be released from all further liability with respect to such monies.

 

Section 9.04.          Return of Unclaimed Monies.

 

Subject to the requirements
of applicable law, any monies deposited with or paid to the Trustee for payment
of the principal of or interest, if any, on the Securities and not applied but
remaining unclaimed by the Holders of the Securities for two years after the
date upon which the principal of or interest, if any, on such Securities, as
the case may be, shall have become due and payable, shall be repaid to the
Company by the Trustee on demand and all liability of the Trustee shall
thereupon cease with respect to such monies; and the Holder of any of the
Securities shall thereafter look only to the Company for any payment that such
Holder of the Securities may be entitled to collect unless an applicable
abandoned property law designates another Person.

 

Section 9.05.          Reinstatement.

 

If the Trustee or the Paying
Agent is unable to apply any money in accordance with Section 9.02 by
reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, 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 the Paying Agent is permitted to apply all
such money in accordance with Section 9.02; provided,
however, that if the Company makes any
payment of interest on or principal of any Security following the reinstatement
of its obligations, the Company shall be subrogated to the rights of the
Holders of such Securities to receive such payment from the money held by the
Trustee or Paying Agent.

 

68

 

ARTICLE
10

 

AMENDMENTS;
SUPPLEMENTS AND WAIVERS

 

Section 10.01.        Without Consent of Holders.

 

(a)           The Company and the Trustee,
may from time to time and at any time enter into an indenture or indentures
supplemental hereto for one or more of the following purposes:

 

(1)           to cure any ambiguity, omission, defect or inconsistency in this
Indenture or in the Securities in a manner that does not materially adversely
affect the rights of any Holder;

 

(2)           to conform the terms of the Indenture or the Securities to the
description thereof in the Prospectus;

 

(3)           to provide for the assumption by a successor corporation of the
obligations of the Company under this Indenture pursuant to Article 6 of
this Indenture;

 

(4)           to add guarantees with respect to the Securities;

 

(5)           to secure the Securities;

 

(6)           to add to the covenants of the Company such further covenants,
restrictions or conditions for the benefit of the Holders or surrender any
right or power conferred upon the Company;

 

(7)           to make any change that does not materially adversely affect the rights
of any Holder;

 

(8)           to appoint a successor Trustee with respect to the Securities; or

 

(9)           to comply with any
requirements of the Trust Indenture Act.

 

Section 10.02.        With Consent of Holders.

 

(a)           The Company and the Trustee
may amend or supplement this Indenture and the Securities with the consent of
the Holders of at least a majority in aggregate principal amount of the
Outstanding Securities (including, without limitation, consents obtained in
connection with a purchase of, or tender offer or exchange offer for, the
Securities). However, without the written consent of each Holder affected, an
amendment or supplement may not:

 

(1)           reduce the rate or extend the stated time for payment of interest,
including Additional Interest, on any Security;

 

(2)           reduce the principal of, or change the Maturity Date of, any Note;

 

(3)           make any change that impairs or adversely affects the conversion rights
of any Securities;

 

69

 

(4)           reduce the Fundamental Change Repurchase Price of any Security or amend or
modify in any manner adverse to the holders of the Securities the Company’s
obligation to make such payments, whether through an amendment or waiver of
provisions in the covenants, definitions or otherwise;

 

(5)           make any Security payable in a currency other than that stated in the
Security;

 

(6)           impair the right of any Holder to receive payment of principal of and
interest on such Holder’s Securities on or after the due dates therefor or to
institute suit for the enforcement of any payment on or with respect to such
Holder’s Securities;

 

(7)           make any change in this Article 10 that requires each Holder’s
consent or in the waiver provisions in Section 7.01 or Section 7.03;
or

 

(8)           reduce the percentage in aggregate principal amount of Securities
Outstanding necessary to modify or amend this Indenture or to waive any past
Default or Event of Default;

 

(b)           Without limiting the
provisions of Section 10.02(a) hereof, the Holders of a majority in
aggregate principal amount of the Securities then Outstanding may, on behalf of
all the Holders of all Securities, consent to the waiver of (including, without
limitation, consents obtained in connection with a purchase of, or tender offer
or exchange offer for, the Securities) compliance by the Company with any
restrictive provisions of this Indenture, 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, or the Fundamental
Change Repurchase Price, if any and as applicable, or to deliver amounts due
upon conversion, with respect to the Securities, 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)           Upon delivery to the Trustee
of a Company Request, and upon the filing with the Trustee of evidence of the
consent of Holders as aforesaid, if required, the Trustee shall, subject to Section 10.03,
join with the Company in the execution of such supplemental indenture.

 

(d)           It shall not be necessary
for any Act of Holders under this Section 10.02 to approve the particular
form of any proposed supplemental indenture but it shall be sufficient if such
Act shall approve the substance thereof.

 

Section 10.03.        Execution of Supplemental
Indentures and Agreements.

 

In executing, or accepting
the additional trusts created by, any supplemental indenture, agreement,
instrument or waiver permitted by this Article 10 or the modifications
thereby of the trusts created by this Indenture, the Trustee shall be entitled
to receive, in addition to the documents required by Section 11.04, and
(subject to Section 8.01 and Section 8.03(a) hereof) shall be
fully protected in relying upon, an Opinion of Counsel and an Officer’s
Certificate each stating that the execution of such supplemental indenture,
agreement or instrument, or acceptance of any such additional trust, is
authorized or permitted by this Indenture. The Trustee may, but shall not be
obligated to, enter into any such supplemental indenture, agreement or 

 

70

 

instrument,
or accept any such additional trusts, which affects the Trustee’s own rights,
duties or immunities under this Indenture or otherwise.

 

Section 10.04.        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.

 

Section 10.05.        Conformity with Trust
Indenture Act.

 

Every supplemental indenture
executed pursuant to this Article 10 shall conform to the requirements of
the TIA as then in effect.

 

Section 10.06.        Reference in Securities to
Supplemental Indentures.

 

Securities authenticated and
delivered after the execution of any supplemental indenture pursuant to this Article 10
may, and shall if required by the Trustee, bear a notation in form approved by
the Trustee as to any matter provided for in such supplemental indenture. If
the Company shall so determine, new Securities so modified as to conform, in
the opinion of the Trustee and the Board of Directors, to any such supplemental
indenture may be prepared and executed by the Company and authenticated and
delivered by the Trustee in exchange for Outstanding Securities.

 

Section 10.07.        Notice of Supplemental
Indentures.

 

Promptly after the execution
by the Company and the Trustee of any supplemental indenture pursuant to the
provisions of Section 10.02, the Company shall give notice thereof to the
Holders of each Outstanding Security affected, in the manner provided for in Section 11.02,
setting forth in general terms the substance of such supplemental indenture.
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 supplemental
indenture.

 

ARTICLE
11

 

MISCELLANEOUS

 

Section 11.01.        Conflict with Trust
Indenture Act.

 

If any provision hereof
limits, qualifies or conflicts with any provision of the TIA or another
provision which is required or deemed to be included in this Indenture by any
of the provisions of the TIA, the provision or requirement of the TIA shall
control. If any provision of this Indenture modifies or excludes any provision
of the TIA that may be so modified or excluded, the latter provision shall be
deemed to apply to this Indenture as so modified or to be excluded, as the case
may be.

 

71

 

Section 11.02.        Notices.

 

Any demand, authorization
notice, request, consent or communication shall be given in writing and mailed
by first-class mail, postage prepaid, or delivered by recognized overnight
courier 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:

 

Regis Corporation

7201
Metro Boulevard

Edina,
Minnesota  55439

Attention:  Eric A. Bakken, Esq.

Facsimile No.:  (952) 918-4770

 

or at any other address previously furnished
in writing to the Trustee by the Company

 

if to the Trustee, to:

 

Wells Fargo Bank, N.A. 

MAC N9311-110

625 Marquette Ave., 11th Floor

Minneapolis, MN 55479

Attention: 
Corporate Trust Services

Facsimile No.:  (612) 667-9825

 

or at any other address previously furnished
in writing to the Holders or the Company by the Trustee.

 

Such notices or
communications shall be effective only when actually received.

 

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

 

Where this Indenture
provides for notice to Holders of any event, such notice shall be sufficiently
given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, or delivered by recognized overnight courier, to
each Holder affected by such event, at its address as it appears in the
register kept by the Primary Registrar, not later than the latest date, and not
earlier than the earliest date, prescribed for the giving of such notice or by
any other manner deemed acceptable to the Trustee. In any case where notice to
Holders is given by mail, neither the failure to mail such notice, nor any
defect in any notice so mailed, to any particular Holder shall affect the
sufficiency of such notice with respect to other Holders. Any notice when
mailed to a Holder in the aforesaid manner shall be conclusively deemed to have
been received by such Holder whether or not actually received by such Holder.
Where this Indenture provides for notice in any manner, such notice may be
waived in writing by the Person entitled to receive such notice, either before
or after the event, and such waiver shall be the equivalent of such notice.
Waivers of notice by Holders shall be filed with the Trustee, but such 

 

72

 

filing
shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver.

 

In case by reason of the
suspension of regular mail service or by reason of any other cause, it shall be
impracticable to mail notice of any event as required by any provision of this
Indenture, then any method of giving such notice as shall be reasonably
satisfactory to the Trustee shall be deemed to be a sufficient giving of such
notice.

 

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 11.03.        Disclosure of Names and
Addresses of Holders.

 

Holders may communicate
pursuant to TIA Section 312(b) with other Holders with respect to
their rights under this Indenture or the Securities, and the Trustee shall
comply with TIA Section 312(b). The Company, the Trustee, the Registrar
and any other Person shall have the protection of TIA 312(c). Further, every
Holder of Securities, by receiving and holding the same, agrees with the
Company and the Trustee that neither the Company nor the Trustee or any agent
of either of them shall be held accountable by reason of the disclosure of any
information as to the names and addresses of the Holders in accordance with TIA
Section 312, regardless of the source from which such information was
derived, and that the Trustee shall not be held accountable by reason of
mailing any material pursuant to a request made under TIA Section 312.

 

Section 11.04.        Compliance Certificates and
Opinions.

 

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

 

(b)           Every certificate or 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 signing such certificate
or opinion has read and understands such covenant or condition and the
definitions herein relating thereto;

 

(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;

 

73

 

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

 

(4)           a statement as to whether, in the opinion of such
Person, such condition or covenant has been complied with.

 

Section 11.05.        Acts of Holders.

 

(a)           Any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be given or taken by Holders may be embodied in and evidenced
by one or more instruments of substantially similar tenor signed by such
Holders in person or by an agent duly appointed in writing; and, except as
herein otherwise expressly provided, such action shall become effective when
such instrument or instruments are delivered to the Trustee and, where it is
hereby expressly required, to the Company. Such instrument or instruments (and
the action embodied therein and evidenced thereby) are herein sometimes
referred to as the “Act” of the Holders signing such instrument or instruments.
Proof of execution of any such instrument or of a writing appointing any such
agent shall be sufficient for any purpose of this Indenture and conclusive in
favor of the Trustee and the Company, if made in the manner provided in this Section 11.05.

 

(b)           The ownership of Securities
shall be proved by the register maintained by the Primary Registrar.

 

(c)           Any request, demand,
authorization, direction, notice, consent, waiver or other Act by the Holder of
any Security shall bind every future Holder of the same Security and the Holder
of every Security issued upon the transfer thereof or in exchange therefor or
in lieu thereof, in respect of anything done, suffered or omitted to be done by
the Trustee, any Paying Agent or Conversion Agent, or the Company in reliance
thereon, whether or not notation of such action is made upon such Security.

 

(d)           The fact and date of the
execution by any Person of any such instrument or writing may be proved by the
affidavit of a witness of such execution or by a certificate of a notary public
or other officer authorized by law to take acknowledgments of deeds, certifying
that the individual signing such instrument or writing acknowledged to him the
execution thereof. Where such execution is by a signer acting in a capacity
other than his individual capacity, such certificate or affidavit shall also
constitute sufficient proof of his authority. The fact and date of the
execution of any such instrument or writing, or the authority of the Person
executing the same, may also be proved in any other manner which the Trustee
deems sufficient.

 

(e)           If the Company shall solicit
from the Holders any request, demand, authorization, direction, notice, consent,
waiver or other Act, the Company may, at its option, by or pursuant to a Board
Resolution, fix in advance a record date for the determination of such Holders
entitled to give such request, demand, authorization, direction, notice,
consent, waiver or other Act, but the Company shall have no obligation to do
so. Notwithstanding TIA Section 316(c), any such record date shall be the
record date specified in or pursuant to such Board Resolution, which 

 

74

 

shall be a date not more than 30 days prior
to the first solicitation of Holders generally in connection therewith and no
later than the date such first solicitation is completed.

 

(f)            If such a record date is
fixed, such request, demand, authorization, direction, notice, consent, waiver
or other Act may be given before or after such record date, but only the
Holders of record at the close of business on such record date shall be deemed
to be Holders for purposes of determining whether Holders of the requisite
proportion of Securities then Outstanding have authorized or agreed or
consented to such request, demand, authorization, direction, notice, consent,
waiver or other Act, and for this purpose the Securities then Outstanding shall
be computed as of such record date; provided that no such request, demand,
authorization, direction, notice, consent, waiver or other Act by the Holders
on such record date shall be deemed effective unless it shall become effective
pursuant to the provisions of this Indenture not later than six months after
such record date.

 

(g)           For purposes of this
Indenture, any action by the Holders which may be taken in writing may be taken
by electronic means or as otherwise reasonably acceptable to the Trustee.

 

Section 11.06.        Benefits of Indenture.

 

Nothing in this Indenture or
in the Securities, express or implied, shall give to any Person (other than the
parties hereto and their successors hereunder, any Paying Agent and the
Holders) any benefit or any legal or equitable right, remedy or claim under
this Indenture.

 

Section 11.07.        Legal Holidays.

 

In any case where any
Interest Payment Date, Fundamental Change Repurchase Date or Maturity Date of
any Security shall not be a Business Day, then (notwithstanding any other
provision of this Indenture or of the Securities) payment of interest or
principal need not be made on such date, but may be made on the next succeeding
Business Day with the same force and effect as if made on such Interest Payment
Date, Fundamental Change Repurchase Date or Maturity Date, and no interest
shall accrue with respect to such payment for the period from and after such
Interest Payment Date, Fundamental Change Repurchase Date or Maturity Date, as
the case may be, to the next succeeding Business Day.

 

Section 11.08.        Governing Law.

 

THIS INDENTURE AND THE
SECURITIES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE APPLICATION OF PRINCIPLES OF
CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION WOULD BE REQUIRED.

 

Section 11.09.        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.

 

75

 

Section 11.10.        No Personal Liability of
Directors, Officers, Employees and Stockholders.

 

No director, officer, employee,
stockholder, incorporator or agent of the Company, as such, will have any
liability for any obligations of the Company under the Securities or the
Indenture or for any claim based on, in respect of, or by reason of, such
obligations or their creation. Each Holder of the Securities by accepting a
Security waives and releases all such liability.

 

Section 11.11.        Successors and Assigns.

 

All covenants and agreements
in this Indenture by the Company shall bind their respective successors and
assigns, whether so expressed or not.

 

Section 11.12.        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 11.13.        Separability Clause.

 

In case any provision in
this Indenture or in the Securities shall be invalid, illegal or unenforceable,
the validity, legality and enforceability of the remaining provisions shall not
in any way be affected or impaired thereby.

 

Section 11.14.        Schedules and Exhibits.

 

All schedules and exhibits
attached hereto are by this reference made a part hereof with the same effect
as if herein set forth in full.

 

Section 11.15.        Effect of Headings and Table
of Contents.

 

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

 

[SIGNATURE PAGES FOLLOW]

 

76

 

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

 

	
   

  	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  REGIS
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:
  ·

  
	
   

  	
   

  	
  Title:
  ·

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WELLS
  FARGO BANK, N.A., as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name: ·

  
	
   

  	
   

  	
   

  	
  Title: ·

  

 

77

 

EXHIBIT A

 

[FORM OF
FACE OF SECURITY]

 

[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 OF A
DEPOSITARY. 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 NO TRANSFER OF THIS SECURITY
(OTHER THAN A TRANSFER OF THIS SECURITY 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) MAY BE REGISTERED EXCEPT IN LIMITED
CIRCUMSTANCES.

 

UNLESS
THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.](1)

 

REGIS CORPORATION

 

·% Convertible Senior Note due 2014

 

	
  No. ·

  	
  Initially
  $·

  
	
  CUSIP
  No. ·

  	
   

  

 

Regis Corporation, a Minnesota corporation (herein
called the “Company”, which term includes any successor Person under the
Indenture hereinafter referred to), for value received, hereby promises to pay
CEDE & CO., or registered assigns,
                      
Dollars
($                    )
[(or such lesser principal amount as shall be specified in the “Schedule of
Exchanges of Securities” attached hereto)](1) on July 15, 2014 unless
earlier converted or repurchased, and to pay interest thereon as set forth in
the manner, at the rates and to the Persons set forth in the Indenture.

 

This Security shall bear interest at a rate of
•% per annum from •, 2009 or from the most recent date to which
interest had been paid or provided to, but excluding, the next scheduled
Interest Payment Date, until the principal hereof shall be repaid.  Interest on this Security will be computed on
the basis of a 360-day year composed of twelve 30-day months.  Interest is payable semi-annually in arrears
on each January 15 and July 15, commencing on July 15, 2010, to
the 

 

(1) Include this legend in the case of a
Global Security.

 

A-1

 

Person in whose name this Security (or one or
more predecessor securities) is registered at the close of business on the
Regular Record Date for such interest. Additional Interest will be payable at
the option of the Company on the terms set forth in Section 7.02(b) of
the within-mentioned Indenture.

 

The Company shall pay principal of and interest on
this Security, so long as such Security is a Global Security, in immediately
available funds to the Depositary or its nominee, as the case may be, as the
registered Holder of such Security. The Company shall pay principal of any
Securities (other than Securities that are Global Securities) at the office or
agency designated by the Company for that purpose. The Company has initially
designated the Trustee as its Paying Agent and Registrar in respect of the
Securities and its agency in New York, New York as a place where Securities may
be presented for payment or for registration of transfer. The Company may,
however, change the Paying Agent or Registrar for the Securities without prior
notice to the Holders thereof, and the Company may act as Paying Agent or
Registrar. Interest on the Securities (other than Securities that are Global
Securities) will be payable (i) to Holders of the Securities having an
aggregate principal amount of Securities of $5,000,000 or less, by check mailed
to the Holders of these Securities at their address in the register maintained
by the Primary Registrar and (ii) to Holders having an aggregate principal
amount of Securities in excess of $5,000,000, either by check mailed to each
Holder at its address in the register maintained by the Primary Registrar or,
upon application by a Holder to the Primary Registrar not later than the
relevant Regular Record Date, by wire transfer in immediately available funds
to that Holder’s account within the United States, which application shall
remain in effect until that Holder notifies, in writing, the Registrar to the
contrary.

 

Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as
if set forth at this place.

 

In the case of any conflict between this Security
and the Indenture, the provisions of the Indenture shall control.  This Security, for all purposes, shall be
governed by and construed in accordance with the laws of the State of New York.

 

Unless the certificate of authentication hereon has
been executed by the Trustee referred to on the reverse hereof by manual
signature, this Security shall not be entitled to any benefit under the
Indenture or be valid or obligatory for any purpose.

 

[Remainder
of page intentionally left blank]

 

A-2

 

IN WITNESS WHEREOF, REGIS
CORPORATION has caused this instrument to be signed manually or by facsimile by
its duly authorized officers.

 

	
  Dated:
  ·, 2009

  	
   

  
	
   

  	
   

  
	
   

  	
  REGIS CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
  Attest:

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

A-3

 

CERTIFICATE
OF AUTHENTICATION

 

This is one of the Securities designated herein
referred to in the within-mentioned Indenture.

 

Dated: ·, 2009

 

	
   

  	
  WELLS FARGO BANK, N.A., as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-4

 

[FORM OF
REVERSE OF SECURITY]

 

REGIS CORPORATION

 

·% Convertible Senior Note due 2014

 

This Security is one of a duly authorized issue of
Securities of the Company (herein called the “Securities”), issued under an
Indenture dated as of ·, 2009 (herein
called the “Indenture”), by and between the Company and Wells Fargo Bank, N.A., herein called the “Trustee”,
and reference is hereby made to the Indenture for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Company,
the Trustee and the Holders of the Securities and of the terms upon which the
Securities are, and are to be, authenticated and delivered. Additional
Securities may be issued in an unlimited aggregate principal amount, subject to
certain conditions specified in the Indenture.

 

This Security is not subject to redemption at the
option of the Company prior to July 15, 2014.

 

Upon the occurrence of a Fundamental Change, the
Holder has the right, at such Holder’s option, to require the Company to
repurchase all of such Holder’s Securities or any portion thereof (in principal
amounts of $1,000 or integral multiples thereof) on the Fundamental Change
Repurchase Date at a price equal to the Fundamental Change Repurchase Price.

 

As provided in and subject to the provisions of the
Indenture, the Holder hereof has the right, at its option, during certain
periods and upon the occurrence of certain conditions specified in the
Indenture, prior to the close of business on the second Scheduled Trading Day
immediately preceding July 15, 2014, to convert this Security or a portion
thereof that is $1,000 or an integral multiple thereof, into cash or shares of
Common Stock or a combination thereof at the option of the Company at the
applicable Conversion Rate specified in the Indenture, as adjusted from time to
time as provided in the Indenture.

 

As provided in and subject to the provisions of the
Indenture, the Company will make all payments in respect of the Fundamental
Change Repurchase Price and the principal amount on the Maturity Date, as the
case may be, to the holder who surrenders a Security to a Paying Agent to
collect such payments in respect of the Security.  The Company will pay cash amounts in money of
the United States that at the time of payment is legal tender for payment of
public and private debts.

 

The Trustee and each Paying Agent shall 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.  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.

 

When a successor corporation assumes all the
obligations of its predecessor under the Securities and the Indenture in
accordance with the terms and conditions of the Indenture, the predecessor
corporation (except in certain circumstances specified in the Indenture) shall
be released from those obligations.

 

A-5

 

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 to
be effected under the Indenture at any time by the Company and the Trustee with
the consent of the Holders of a majority in principal amount of the Securities
at the time outstanding. The Indenture also contains provisions permitting the
Holders of specified percentages in principal amount of the Securities at the
time outstanding, on behalf of the Holders of all Securities, to waive
compliance by the Company with certain provisions of the Indenture and certain past
defaults under the Indenture and their consequences. Any such consent or waiver
by the Holder of this Security shall be conclusive and binding upon such Holder
and upon all future Holders of this Security and of any Security issued upon
the registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Security.

 

As provided in and subject to the provisions of the
Indenture, in case an Event of Default, as defined in the Indenture, shall have
occurred and be continuing, the principal of and interest on all Securities may
be declared due and payable, by either the Trustee or Holders of at least 25%
in aggregate principal amount of Securities then outstanding, and upon said declaration
shall become due and payable, in the manner, with the effect and subject to the
conditions provided in the Indenture; provided that
upon the occurrence of an Event of Default specified in Section 7.01(8) or
(9) of the Indenture, the principal amount of, and interest on, all the
Securities shall automatically become due and payable.

 

No reference herein to the Indenture and no
provision of this Security or of the Indenture shall alter or impair the
obligation of the Company, which is absolute and unconditional, to pay the
principal of and interest on this Security at the time, place and rate, and in
the coin and currency, herein prescribed.

 

As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Security is registrable in
the register maintained by the Primary Registrar, upon surrender of this
Security for registration of transfer at the office or agency of the Company in
any place where the principal of and interest on this Security are payable,
duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Primary Registrar duly executed by, the
Holder hereof or his attorney duly authorized in writing, and thereupon one or
more new Securities of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to
the designated transferee or transferees.

 

The Securities are issuable only in registered form
without coupons in denominations of $1,000 and any integral multiple thereof.
As provided in the Indenture and subject to certain limitations therein set
forth, the Securities are exchangeable for a like aggregate principal amount of
Securities and of like tenor of a different authorized denomination, as
requested by the Holder surrendering the same.

 

No service charge shall be made for any such
registration of transfer or exchange, but the Company may require payment of a
sum sufficient to cover any tax or other governmental charge payable in
connection therewith.

 

A-6

 

Prior to due presentment of this Security for
registration of transfer, the Company, the Trustee and any agent of the Company
or Trustee may treat the Person in whose name the Security is registered as the
owner hereof for all purposes, whether or not this Security be overdue, and
neither the Company, the Trustee nor any such agent shall be affected by notice
to the contrary.

 

All defined terms used in this Security that are
defined in the Indenture shall have the meanings assigned to them in the
Indenture.

 

A-7

 

ABBREVIATIONS

 

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

 

	
  TEN
  COM - as tenants in common

  	
   

  	
  UNIF
  GIFT MIN ACT

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
                                             

  	
  Custodian

  
	
   

  	
   

  	
  (Cust)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TEN
  ENT - as tenants by the entireties

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
                                             

  	
   

  
	
   

  	
   

  	
  (Minor)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  JT
  TEN  — as joint tenants with right of survivorship
  and not as tenants in common

  	
   

  	
  Uniform
  Gifts to Minors Act
                  
  (State)

  

 

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

 

A-8

 

 

 

SCHEDULE A

 

SCHEDULES
OF EXCHANGES OF SECURITIES(2)

 

REGIS
CORPORATION

 

·% Convertible Senior Notes due 2014

 

The initial principal amount of this Registered
Global Security is
                              
($                  ).  The following, exchanges, purchases or
conversions of a part of this Registered Global Security have been made:

 

	
  Date
  of 

  Exchange

  	
   

  	
  Amount of 

  decrease in 

  principal amount of

  this Registered

  Global Security

  	
   

  	
  Amount of increase 

  in principal amount 

  of this Registered

  Global Security

  	
   

  	
  Principal amount of

  this Registered

  Global Security

  following such

  decrease or increase

  	
   

  	
  Signature of 

  authorized 

  signatory of 

  Trustee or 

  Securities 

  Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(2) Include this Schedule in the case of a
Global Security.

 

A-9

 

EXHIBIT
B

 

[FORM OF
NOTICE OF CONVERSION]

 

To:  Regis Corporation

 

The undersigned owner of
this Security hereby irrevocably exercises the option to convert this Security,
or a portion hereof (which is $1,000 or an integral multiple hereof) below
designated, into shares of Common Stock or cash or a combination thereof at the
option of the Company in accordance with the terms of the Indenture referred to
in this Security, and directs that cash, if any, payable and shares of Common
Stock, if any, issuable and deliverable upon conversion, together with any
check in payment for fractional shares of Common Stock, and any Securities
representing any unconverted principal amount hereof, be paid or issued and
delivered, as the case may be, to the registered Holder hereof unless a
different name has been indicated below. Subject to certain exceptions set
forth in the Indenture, if this notice is being delivered on a date after the
close of business on a Regular Record Date and prior to the opening of business
on the related Interest Payment Date, this notice is accompanied by payment of
an amount equal to the interest payable on such Interest Payment Date of the
principal of this Security to be converted. If any shares of Common Stock are
to be issued in the name of a Person other than the undersigned, the
undersigned will pay all transfer taxes payable with respect hereto. Any amount
required to be paid by the undersigned on account of interest accompanies this
Security.

 

Principal
amount to be converted (in an integral multiple of $1,000, if less than all):

 

$                                         

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature(s)

  
	
   

  	
   

  
	
   

  	
  Signature(s) must
  be guaranteed by an institution which is a member of one of the following
  recognized signature Guarantee Programs:

  
	
   

  	
   

  
	
   

  	
  (i) The
  Securities Transfer Agent Medallion Program (STAMP); (ii) The New York
  Stock Exchange Medallion Program (MNSP); (iii) The Stock Exchange
  Medallion Program (SEMP) or (iv) another guarantee program acceptable to
  the Trustee.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature Guarantee

  

 

B-1

 

Fill
in for registration of any shares of Common Stock and Securities if to be
issued otherwise than to the registered Holder.

 

 

	
   

  	
   

  
	
  (Name)

  	
   

  
	
   

  	
   

  
	
  (Address)

  	
   

  
	
   

  	
   

  
	
  Please print Name and
  Address

  	
   

  
	
  (including
  zip code number)

  	
   

  
	
   

  	
   

  
	
  Social
  Security or other Taxpayer

  	
   

  
	
  Identifying
  Number          

  	
   

  

 

B-2

 

EXHIBIT
C

 

[FORM OF
FUNDAMENTAL CHANGE REPURCHASE NOTICE]

 

To:
Regis Corporation

 

The undersigned registered
owner of this Security hereby acknowledges receipt of a notice from Regis
Corporation (the “Company”) as to the occurrence of a Fundamental
Change with respect to the Company and specifying the Fundamental Change
Repurchase Date and requests and instructs the Company to repay to the
registered holder hereof in accordance with the applicable provisions of this
Security and the Indenture referred to in this Security (1) the entire principal
amount of this Security, or the portion thereof (that is $1,000 principal
amount or an integral multiple thereof) below designated, and (2) if such
Fundamental Change Repurchase Date does not fall during the period after a
Regular Record Date and on or prior to the corresponding Interest Payment Date,
accrued and unpaid interest thereon to, but excluding, such Fundamental Change
Repurchase Date.

 

In the case of certificated
Securities, the certificate numbers of the Securities to be repurchased are as
set forth below:

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature(s)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Social
  Security or Other Taxpayer Identification Number

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  principal
  amount to be repaid (if less than all): 
  $            ,000

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NOTICE:  The signature on the Fundamental Change
  Repurchase Notice must correspond with the name as written upon the face of
  the Security in every particular without alteration or enlargement or any
  change whatever.

  

 

C-1

 

EXHIBIT D

 

[FORM OF ASSIGNMENT AND TRANSFER]

 

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

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature(s)

  
	
   

  	
   

  
	
   

  	
  Signature(s) must
  be guaranteed by an institution which is a member of one of the following
  recognized signature Guarantee Programs:

  
	
   

  	
   

  
	
   

  	
  (i) The
  Securities Transfer Agent Medallion Program (STAMP); (ii) The New York
  Stock Exchange Medallion Program (MNSP); (iii) The Stock Exchange
  Medallion Program (SEMP) or (iv) another guarantee program acceptable to
  the Trustee.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature Guarantee

  

 

D-1

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