Document:

Exhibit 4.1

Triumph Group, Inc.

2.625% Convertible Senior Subordinated Notes
due 2026

INDENTURE

Dated as of September 18, 2006

The Bank of New York Trust Company, N.A.

TRUSTEE

 

 

CROSS-REFERENCE TABLE*

	
  Trust Indenture Act

  	
   

  	
  Section

  
	
  310(a)(1)

  	
   

  	
  8.10

  
	
  (a)(2)

  	
   

  	
  8.10

  
	
  (a)(3)

  	
   

  	
  N.A.

  
	
  (a)(4)

  	
   

  	
  N.A.

  
	
  (a)(5)

  	
   

  	
  N.A.

  
	
  (b)

  	
   

  	
  8.08, 8.10

  
	
  (c)

  	
   

  	
  N.A.

  
	
  311(a)

  	
   

  	
  8.11

  
	
  (b)

  	
   

  	
  8.11

  
	
  (c)

  	
   

  	
  N.A.

  
	
  312(a)

  	
   

  	
  2.05

  
	
  (b)

  	
   

  	
  13.03

  
	
  (c)

  	
   

  	
  13.03

  
	
  313(a)

  	
   

  	
  8.06

  
	
  (b)(1)

  	
   

  	
  8.06

  
	
  (b)(2)

  	
   

  	
  8.06

  
	
  (c)

  	
   

  	
  13.02

  
	
  (d)

  	
   

  	
  8.06

  
	
  314(a)

  	
   

  	
  5.02

  
	
  (b)

  	
   

  	
  N.A.

  
	
  (c)(1)

  	
   

  	
  13.04

  
	
  (c)(2)

  	
   

  	
  13.04

  
	
  (c)(3)

  	
   

  	
  N.A.

  
	
  (d)

  	
   

  	
  N.A.

  
	
  (e)

  	
   

  	
  13.05

  
	
  (f)

  	
   

  	
  5.04

  
	
  315(a)

  	
   

  	
  8.01(a)

  
	
  (b)

  	
   

  	
  8.05

  
	
  (c)

  	
   

  	
  8.01

  
	
  (d)

  	
   

  	
  8.01(c)

  
	
  (e)

  	
   

  	
  7.11

  
	
  316(a)(1)(A)

  	
   

  	
  7.05

  
	
  (a)(1)(B)

  	
   

  	
  7.04

  
	
  (a)(2)

  	
   

  	
  N.A.

  
	
  (b)

  	
   

  	
  7.07

  
	
  (c)

  	
   

  	
  1.05(e)

  
	
  317(a)(1)

  	
   

  	
  7.08

  
	
  (a)(2)

  	
   

  	
  7.09

  
	
  (b)

  	
   

  	
  2.04

  
	
  318(a)

  	
   

  	
  13.01

  
	
  N.A.  means
  not applicable.

  	
   

  	
   

  

 

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

 

Table of Contents

	
  

  	
   

  	
  Page

  
	
  ARTICLE 1

  	
   

  	
   

  
	
  DEFINITIONS AND
  INCORPORATION BY REFERENCE

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01 Definitions

  	
   

  	
  1

  
	
  SECTION 1.02 Other Definitions

  	
   

  	
  10

  
	
  SECTION 1.03 Incorporation by Reference of Trust
  Indenture Act

  	
   

  	
  11

  
	
  SECTION 1.04 Rules of Construction

  	
   

  	
  12

  
	
  SECTION 1.05 Acts of Holders

  	
   

  	
  12

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
   

  	
   

  
	
  THE SECURITIES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01 Form and Dating

  	
   

  	
  13

  
	
  SECTION 2.02 Execution and Authentication

  	
   

  	
  14

  
	
  SECTION 2.03 Registrar, Paying Agent, Bid
  Solicitation Agent, and Conversion Agent

  	
   

  	
  15

  
	
  SECTION 2.04 Paying Agent to Hold Money and
  Securities in Trust

  	
   

  	
  15

  
	
  SECTION 2.05 Securityholder Lists

  	
   

  	
  16

  
	
  SECTION 2.06 Transfer and Exchange

  	
   

  	
  16

  
	
  SECTION 2.07 Replacement Securities

  	
   

  	
  18

  
	
  SECTION 2.08 Outstanding Securities; Determinations
  of Holders’ Action

  	
   

  	
  18

  
	
  SECTION 2.09 Temporary Securities

  	
   

  	
  19

  
	
  SECTION 2.10 Cancellation

  	
   

  	
  20

  
	
  SECTION 2.11 Persons Deemed Owners

  	
   

  	
  20

  
	
  SECTION 2.12 Global Securities

  	
   

  	
  20

  
	
  SECTION 2.13 CUSIP Numbers

  	
   

  	
  25

  
	
  SECTION 2.14 Contingent Debt Tax Treatment

  	
   

  	
  26

  
	
  SECTION 2.15 Calculation of Original Issue Discount

  	
   

  	
  26

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

  	
   

  	
   

  
	
  REDEMPTION AND
  REPURCHASES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01 Company’s Right to Redeem; Notices to
  Trustee

  	
   

  	
  27

  
	
  SECTION 3.02 Selection of Securities to Be Redeemed

  	
   

  	
  27

  
	
  SECTION 3.03 Notice of Redemption

  	
   

  	
  28

  
	
  SECTION 3.04 Effect of Notice of Redemption

  	
   

  	
  29

  
	
  SECTION 3.05 Deposit of Redemption Price

  	
   

  	
  29

  
	
  SECTION 3.06 Securities Redeemed in Part

  	
   

  	
  29

  
	
  SECTION 3.07 Repurchase of Securities by the Company
  at Option of the Holder

  	
   

  	
  29

  
	
  SECTION 3.08 Repurchase of Securities at Option of
  the Holder Upon a Fundamental Change

  	
   

  	
  32

  
	
  SECTION 3.09 Effect of Repurchase Notice or
  Fundamental Change Repurchase Notice

  	
   

  	
  34

  
	
  SECTION 3.10 Deposit of Repurchase Price or
  Fundamental Change Repurchase Price

  	
   

  	
  35

  
	
  SECTION 3.11 Securities Purchased in Part

  	
   

  	
  36

  
	
  SECTION 3.12 Covenant to Comply with Securities Laws
  upon Purchase of Securities

  	
   

  	
  36

  

 

 i
 

 

 

	
  SECTION
  3.13 Repayment to the Company

  	
   

  	
  36

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
   

  	
   

  
	
  SUBORDINATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01 Agreement of Subordination

  	
   

  	
  36

  
	
  SECTION 4.02 Payments to Holders

  	
   

  	
  37

  
	
  SECTION 4.03 Subrogation of Securities

  	
   

  	
  39

  
	
  SECTION 4.04 Authorization to Effect Subordination

  	
   

  	
  40

  
	
  SECTION 4.05 Notice to Trustee

  	
   

  	
  40

  
	
  SECTION 4.06 Trustee’s Relation to Senior
  Indebtedness

  	
   

  	
  41

  
	
  SECTION 4.07 No Impairment of Subordination

  	
   

  	
  41

  
	
  SECTION 4.08 Certain Payments Not Prohibited

  	
   

  	
  41

  
	
  SECTION 4.09 Article Applicable to Paying Agents

  	
   

  	
  42

  
	
  SECTION 4.10 Senior Indebtedness Entitled to Rely

  	
   

  	
  42

  
	
  SECTION 4.11 All Indenture Provisions Subject to
  Article Four

  	
   

  	
  42

  
	
  SECTION 4.12 Trustee’s Compensation Not Prejudiced

  	
   

  	
  42

  
	
  SECTION 4.13 Rights of Trustee as Holder of Senior
  Indebtedness; Preservation of Trustee’s Rights

  	
   

  	
  42

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
   

  	
   

  
	
  COVENANTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.01 Payment of Securities

  	
   

  	
  42

  
	
  SECTION 5.02 SEC and Other Reports

  	
   

  	
  43

  
	
  SECTION 5.03 Compliance Certificate

  	
   

  	
  43

  
	
  SECTION 5.04 Further Instruments and Acts

  	
   

  	
  43

  
	
  SECTION 5.05 Maintenance of Office or Agency

  	
   

  	
  43

  
	
  SECTION 5.06 Delivery of Certain Information

  	
   

  	
  44

  
	
  SECTION 5.07 Additional Amounts Notice

  	
   

  	
  44

  
	
  SECTION 5.08 Anti-Layering

  	
   

  	
  44

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6

  	
   

  	
   

  
	
  SUCCESSOR PERSON

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01 When Company May Merge or Transfer Assets

  	
   

  	
  44

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7

  	
   

  	
   

  
	
  DEFAULTS AND
  REMEDIES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.01 Events of Default

  	
   

  	
  45

  
	
  SECTION 7.02 Acceleration

  	
   

  	
  47

  
	
  SECTION 7.03 Other Remedies

  	
   

  	
  47

  
	
  SECTION 7.04 Waiver of Past Defaults

  	
   

  	
  48

  
	
  SECTION 7.05 Control by Majority

  	
   

  	
  48

  
	
  SECTION 7.06 Limitation on Suits

  	
   

  	
  48

  
	
  SECTION 7.07 Rights of Holders to Receive Payment

  	
   

  	
  49

  
	
  SECTION 7.08 Collection Suit by Trustee

  	
   

  	
  49

  

 

 ii
 

 

 

	
  SECTION 7.09 Trustee May File Proofs of Claim

  	
   

  	
  49

  
	
  SECTION 7.10 Priorities

  	
   

  	
  50

  
	
  SECTION 7.11 Undertaking for Costs

  	
   

  	
  50

  
	
  SECTION 7.12 Waiver of Stay, Extension or Usury Laws

  	
   

  	
  50

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8

  	
   

  	
   

  
	
  TRUSTEE

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 8.01 Duties of Trustee

  	
   

  	
  51

  
	
  SECTION 8.02 Rights of Trustee

  	
   

  	
  52

  
	
  SECTION 8.03 Individual Rights of Trustee

  	
   

  	
  54

  
	
  SECTION 8.04 Trustee’s Disclaimer

  	
   

  	
  54

  
	
  SECTION 8.05 Notice of Defaults

  	
   

  	
  54

  
	
  SECTION 8.06 Reports by Trustee to Holders

  	
   

  	
  54

  
	
  SECTION 8.07 Compensation and Indemnity

  	
   

  	
  54

  
	
  SECTION 8.08 Replacement of Trustee

  	
   

  	
  55

  
	
  SECTION 8.09 Successor Trustee by Merger

  	
   

  	
  56

  
	
  SECTION 8.10 Eligibility; Disqualification

  	
   

  	
  56

  
	
  SECTION 8.11 Preferential Collection of Claims
  Against Company

  	
   

  	
  57

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9

  	
   

  	
   

  
	
  DISCHARGE OF
  INDENTURE

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 9.01 Discharge of Liability on Securities

  	
   

  	
  57

  
	
  SECTION 9.02 Repayment to the Company

  	
   

  	
  57

  
	
  SECTION 9.03 Application of Trust Money

  	
   

  	
  57

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10

  	
   

  	
   

  
	
  AMENDMENTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 10.01 Without Consent of Holders

  	
   

  	
  57

  
	
  SECTION 10.02 With Consent of Holders

  	
   

  	
  59

  
	
  SECTION 10.03 Compliance With Trust Indenture Act

  	
   

  	
  60

  
	
  SECTION 10.04 Revocation and Effect of Consents,
  Waivers and Actions

  	
   

  	
  60

  
	
  SECTION 10.05 Notice of Amendments, Notation on or
  Exchange of Securities

  	
   

  	
  60

  
	
  SECTION 10.06 Trustee to Sign Supplemental
  Indentures

  	
   

  	
  61

  
	
  SECTION 10.07 Effect of Supplemental Indentures

  	
   

  	
  61

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11

  	
   

  	
   

  
	
  CONVERSIONS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 11.01 Conversion Privilege

  	
   

  	
  61

  
	
  SECTION 11.02 Conversion Procedure; Conversion Rate;
  Fractional Shares

  	
   

  	
  66

  
	
  SECTION 11.03 Payment Upon Conversion

  	
   

  	
  68

  
	
  SECTION 11.04 Adjustment of Conversion Rate

  	
   

  	
  69

  
	
  SECTION 11.05 Effect of Reclassification,
  Consolidation, Merger or Sale

  	
   

  	
  77

  
	
  SECTION 11.06 Taxes on Shares Issued

  	
   

  	
  79

  

 

 iii
 

 

 

	
  SECTION 11.07 Reservation of Shares, Shares to
  Be Fully Paid; Compliance with Governmental Requirements

  	
   

  	
  79

  
	
  SECTION 11.08 Responsibility of Trustee

  	
   

  	
  79

  
	
  SECTION 11.09 Notice to Holders Prior to Certain
  Actions

  	
   

  	
  80

  
	
  SECTION 11.10 Shareholder Rights Plan

  	
   

  	
  81

  
	
  SECTION 11.11 Unconditional Right of Holders to
  Convert

  	
   

  	
  81

  
	
  SECTION 11.12 Trustee Adjustment Disclaimer

  	
   

  	
  81

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12

  	
   

  	
   

  
	
  CONTINGENT
  INTEREST

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 12.01 Contingent Interest

  	
   

  	
  81

  
	
  SECTION 12.02 Payment of Contingent Interest

  	
   

  	
  82

  
	
  SECTION 12.03 Contingent Interest Notification

  	
   

  	
  82

  
	
  SECTION 12.04 Trustee Contingent Interest Disclaimer

  	
   

  	
  82

  
	
   

  	
   

  	
   

  
	
  ARTICLE 13

  	
   

  	
   

  
	
  MISCELLANEOUS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 13.01 Trust Indenture Act Controls

  	
   

  	
  82

  
	
  SECTION 13.02 Notices

  	
   

  	
  82

  
	
  SECTION 13.03 Communication by Holders with Other
  Holders

  	
   

  	
  83

  
	
  SECTION 13.04 Certificate and Opinion as to
  Conditions Precedent

  	
   

  	
  83

  
	
  SECTION 13.05 Statements Required in Certificate or
  Opinion

  	
   

  	
  84

  
	
  SECTION 13.06 Separability Clause

  	
   

  	
  84

  
	
  SECTION 13.07 Rules by Trustee, Paying Agent,
  Conversion Agent and Registrar

  	
   

  	
  84

  
	
  SECTION 13.08 Legal Holidays

  	
   

  	
  84

  
	
  SECTION 13.09 Governing Law

  	
   

  	
  85

  
	
  SECTION 13.10 No Recourse Against Others

  	
   

  	
  85

  
	
  SECTION 13.11 Successors

  	
   

  	
  85

  
	
  SECTION 13.12 Multiple Originals

  	
   

  	
  85

  
	
  SECTION 13.13 Execution in Counterparts

  	
   

  	
  85

  
	
  SECTION 13.14 Benefits of Indenture

  	
   

  	
  85

  
	
  SECTION 13.15 No Adverse Interpretation of Other
  Agreements

  	
   

  	
  85

  
	
  SECTION 13.16 Calculations in Respect of Securities

  	
   

  	
  85

  
	
  SECTION 13.17 Table of Contents, Cross-Reference
  Sheet and Headings

  	
   

  	
  86

  
	
  SECTION 13.18 Waiver of Jury Trial

  	
   

  	
  86

  
	
  SECTION 13.19 Force Majeure

  	
   

  	
  86

  

 

EXHIBIT A  Form
of Global Security

EXHIBIT B  Form of Certificated Security

EXHIBIT C  Transfer Certificate

EXHIBIT D  Form of Notice of Redemption

EXHIBIT E  Form of Notice of Repurchase

EXHIBIT F  Notice of Occurrence of Change
of Control

SCHEDULE I  Number of Additional Shares

 iv

 

INDENTURE dated as of
September 18, 2006 between TRIUMPH GROUP, INC., a Delaware corporation (the “Company”), and The Bank of New York
Trust Company, N.A., a national banking association (the “Trustee”).

Each party agrees as follows for the benefit of the
other party and for the equal and ratable benefit of the Holders of the Company’s
2.625% Convertible Senior Subordinated Notes due 2026:

ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

SECTION 1.01   Definitions.

“144A Global Security”
means a permanent Global Security in the form of the Security attached hereto
as Exhibit A, and that is deposited with and registered in the name of the
Depositary, representing Securities sold in reliance on Rule 144A under the
Securities Act.

“Additional Amounts”
means the interest that is payable by the Company pursuant to the Registration
Rights Agreement upon a Registration Default (as defined in such agreement).

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

“Applicable Procedures”
means, with respect to any transfer or transaction involving a Global Security
or beneficial interest therein, the rules and procedures of the Depositary for
such Security, in each case to the extent applicable to such transaction and as
in effect from time to time.

“Bid Solicitation Agent”
means the agent of the Company appointed to obtain quotations for the
Securities as set forth under the definition of Trading Price, which agent
shall be appointed no later than the first Contingent Interest Period and shall
at no time be an Affiliate of the Company. 
The Company may, from time to time, change the Bid Solicitation Agent.

“Board of Directors”
means either the board of directors of the Company or any duly authorized
committee of such board.

“Board Resolution”
means a resolution of the Board of Directors.

“Business Day”
means, with respect to any Security, any day, other than a Saturday or Sunday,
that is neither a legal holiday nor a day on which commercial banks are
authorized or required by law, regulation or executive order to close in The
City of New York.

 1
 

 

“Capitalized Lease
Obligation” means an obligation that is required to be classified
and accounted for as a capitalized lease for financial reporting purposes in
accordance with GAAP; and the amount of Indebtedness represented by such
obligation shall be the capitalized amount of such obligation determined in
accordance with GAAP; and the stated maturity thereof shall be the date of the
last payment of rent or any other amount due under such lease before the first
date on which such lease may be terminated by the lessee without payment of a
penalty.

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

“Certificated Securities”
means Securities that are in the form of the Securities attached hereto as
Exhibit B.

“Change of Control”
means the occurrence at such time after the original issuance of the Securities
when any of the following has occurred:

(1)           a “person” or “group” within the
meaning of Section 13(d)(3) of the Exchange Act, 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 “beneficial owner,” as defined in Rule
13d-3 under the Exchange Act, of shares of Common Stock representing more than
50% of the Voting Stock; or

(2)           the first day on which a majority of
the members of the Board of Directors does not consist of Continuing Directors;
or

(3)           a consolidation, merger or binding
share exchange, or any conveyance, transfer, sale, lease or other disposition
(in one transaction or a series of transactions) of all or substantially all of
the Company’s properties and assets to another Person, other than:

(a)           any transaction (i) that does
not result in any reclassification, conversion, exchange or cancellation of
Capital Stock and (ii) under which holders of the Company’s Capital Stock
immediately prior to such transaction have the entitlement to exercise,
directly or indirectly, 50% or more of the total Voting Stock of the continuing
or surviving or successor Person immediately after giving effect to such
issuance; or

(b)           any merger, share exchange, transfer
of assets or similar transaction solely for the purpose of changing the Company’s
jurisdiction of incorporation and resulting in a reclassification, conversion
or exchange of outstanding shares of Common Stock, if at all, solely into
shares of common stock, ordinary shares or American Depositary Shares of the
surviving entity or a direct or indirect parent of the surviving corporation;
or

(c)           any consolidation, merger,
conveyance, transfer, lease or other disposition with or into a Subsidiary, so
long as such merger, consolidation, conveyance, transfer, lease or other
disposition is not part of a plan or a series of transactions designed

 2
 

 

to or having the effect
of merging, consolidating with, or conveying, transferring, selling, leasing or
otherwise disposing of all or substantially all the Company’s properties and
assets to, any other Person.

The term “Person”
includes any syndicate or group that would be deemed to be a “person” under
Section 13(d)(3) of the Exchange Act.

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

“Code” means
the Internal Revenue Code of 1986, as amended from time to time.

“Common Stock”
means the common stock, $0.001 par value, of the Company existing on the date
of this Indenture or any other shares of Capital Stock of the Company into
which such Common Stock shall be reclassified or changed, including, subject to
Section 11.05 below, in the event of a merger, consolidation or other similar
transaction involving the Company that is otherwise permitted hereunder in
which the Company is not the surviving Person, the common stock of such
surviving corporation.

“Company”
means the party named as the “Company” in the preamble of this Indenture until
a successor replaces it pursuant to the applicable provisions of this Indenture
and, thereafter, shall mean such successor. 
The foregoing sentence shall likewise apply to any subsequent such
successor or successors.

“Company Notice”
means a notice to Holders delivered pursuant to Section 3.07 or Section
3.08.

“Company Request”
or “Company Order” means a written
request or order signed in the name of the Company by any Officer and delivered
to the Trustee.

“Contingent Interest”
means such interest payable as described in Article 12.

“Contingent Interest Period”
means (i) the period commencing on, and including, October 6, 2011 and
ending on, but excluding, March 31, 2012, and (ii) each six-month period
from October 1 to March 31 or from April 1 to September 30 thereafter.

“Continuing Director”
means a director who either was a member of the Board of Directors on September
18, 2006 or who becomes a member of the Board of Directors after that date and
whose appointment, election or nomination for election by the Company’s
shareholders is duly approved by a majority of the Continuing Directors on the
Board of Directors at the time of such approval, either by specific vote or by
approval of the proxy statement issued by the Company on behalf of the Board of
Directors in which such individual is named as nominee for director.

“Conversion Settlement Date”
means (A) with respect to the Conversion Settlement Distribution (other
than any Additional Shares which may be issuable pursuant to Section 11.01(c),
the third Business Day immediately following the Cash Settlement Period, and
(B) with respect to any Additional Shares which may be issuable, the later
of (i) the fifth

 3
 

 

Business Day following the effective date of any
Change of Control transaction and (2) the third Business Day immediately
following the Cash Settlement Period.

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

“Corporate Trust Office”
means the designated office of the Trustee at which at any time its corporate
trust business shall be principally administered, which office at the date
hereof is located at 2 North LaSalle Street, Suite 1020, Chicago, IL. 60602, or
such other address as the Trustee may designate from time to time by notice to
the Holders and the Company, or the principal corporate trust office of any
successor Trustee (or such other address as a successor Trustee may designate
from time to time by notice to the Holders and the Company).

“Credit Agreement”
means the Amended and Restated Credit Agreement dated as of July 27, 2005 as
amended on the date hereof, among Triumph Group Inc., as Borrower, the
guarantors party thereto and the lenders party thereto, as supplemented,
amended, modified, refinanced, increased or replaced at any time or from time
to time.

“Current Market Price”
of the Common Stock on any day means the average of the Last Reported Sale
Price per share of the Common Stock for each of the ten consecutive Trading
Days ending on the earlier of the day in question and the day before the “Ex-Dividend
Date” with respect to the issuance or distribution requiring such computation,
subject to adjustment by the Board of Directors if another transaction
requiring an adjustment to the Conversion Rate pursuant to Section 11.04 occurs
during such ten day period.

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

“Designated Senior
Indebtedness” means (i) all Obligations under the Credit
Agreement (as such term is defined in the Credit Agreement) and (ii) any
other Senior Indebtedness the principal amount of which (or, in the case of a
revolving credit, the commitments thereunder) is $15.0 million or more and
that at the time of determination has been designated by the Company as “Designated
Senior Indebtedness”.

“Ex-Dividend Date”
means the first date upon which a sale of the Common Stock, regular way on the
relevant exchange or in the relevant market for the Common Stock, does not
automatically transfer the right to receive the relevant dividend or
distribution from the seller of the Common Stock to its buyer.

“Exchange Act”
means the Securities Exchange Act of 1934, as amended, and the rules and
regulations of the SEC promulgated thereunder.

“Fair Market Value”
means the amount which a willing buyer would pay a willing seller in an arm’s-length
transaction.

“Fundamental Change”
means either a Change of Control or a Termination of Trading.

 4
 

 

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

“Global Securities”
means Securities that are in the form of the Securities attached hereto as
Exhibit A, and that are registered in the register of Securities in the name of
a Depositary or a nominee thereof, and to the extent that such Securities are
required to bear the Legend required by Section 2.06(g), such Securities shall
be in the form of a 144A Global Security.

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

“Indebtedness”
means, with respect to any Person on any date of determination (without
duplication),

(1)           the
indebtedness of such Person for borrowed money;

(2)           the
obligations of such Person evidenced by bonds, debentures, notes or other
similar instruments;

(3)           all
Capitalized Lease Obligations of such Person;

(4)           all
obligations of such Person to pay the deferred and unpaid purchase price of
property or services (except trade payables);

(5)           all
obligations of such Person in respect of letters of credit, banker’s
acceptances or other similar instruments or credit transactions (including
reimbursement obligations with respect thereto), other than obligations with
respect to letters of credit securing obligations (other than obligations
described in the first four clauses above) entered into in the ordinary
course of business of such Person to the extent such letters of credit are not
drawn on or, if and to the extent drawn on, such drawing is reimbursed no later
than the third Business Day following receipt by such Person of a demand for
reimbursement following payment on the letter of credit;

(6)           all
Indebtedness of other Persons secured by a lien on any asset of such Person,
whether or not such Indebtedness is assumed by such Person; provided, however, that the amount of such Indebtedness
shall be the lesser of (A) the fair market value of such asset at such
date of determination or (B) the amount of such Indebtedness of such other
Person; and

(7)           all
indebtedness of other Persons to the extent guaranteed by such Person.

The amount of Indebtedness of any Person at any date
shall be the outstanding balance at such date of all unconditional obligations
as described above and the maximum liability, on the occurrence of the
contingency giving rise to the obligation, of any contingent obligations at
such date.

 5
 

 

“Indenture”
means this Indenture, as amended or supplemented from time to time in
accordance with the terms hereof, including the provisions of the TIA that are
deemed to be a part hereof.

“Interest”
means interest payable on each Security pursuant to Section 1 of the
Securities.

“Interest Payment Date”
means April 1 and October 1 of each year, commencing April 1, 2007.

“Interest Record Date”
means March 15 and September 15 of each year.

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

“Last Reported Sale Price”
means, with respect to the Common Stock on any date, the closing sale price (or
if no closing sale price is reported, the average of the bid and asked prices
or, if more than one in either case, the average of the average bid and the
average asked prices) on that date as reported by the New York Stock
Exchange or, if the Common Stock is not listed on the New York Stock Exchange,
the Nasdaq Global Market, or if the Common Stock is not listed on the Nasdaq
Global Market, in composite transactions for the principal U.S. national or
regional securities exchange on which the Common Stock is traded.  If the Common Stock is not listed for trading
on a U.S. national or regional securities exchange on the relevant date, the “Last
Reported Sale Price” shall be the last quoted bid price for the Common Stock in
the over-the-counter market on the relevant date as reported by the National
Quotation Bureau Incorporated or similar organization.  If the Common Stock is not so quoted, the “Last
Reported Sale Price” shall be the average of the mid-point of the last bid and
ask prices for the Common Stock on the relevant date from each of at least
three independent nationally recognized investment banking firms selected by
the Company for this purpose.

“Market Disruption Event”
means the occurrence or existence for more than one half-hour period in the
aggregate on any scheduled Trading Day for the Company’s common stock of any
suspension or limitation imposed on trading (by reason of movements in price
exceeding limits permitted by the New York Stock Exchange or otherwise) in the
Company’s common stock or in any options, contracts or future contracts
relating to the Company’s common stock, and such suspension or limitation
occurs or exists at any time before 1:00 p.m. (New York City time) on such day.

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

“Officer’s Certificate”
means a written certificate containing the information specified in Sections
13.04 and 13.05, signed in the name of the Company by any Officer, and
delivered to the Trustee.  An Officer’s
Certificate given pursuant to Section 5.03 shall be signed by the principal
executive officer, principal financial officer or principal accounting officer
of the Company.  Any such certificate
shall comply with the requirements of the TIA and any other requirements set
forth in this Indenture.

 6
 

 

“Offering Memorandum”
means the offering memorandum of the Company dated September 12, 2006 relating
to the offering of the Securities.

“Opinion of Counsel”
means a written opinion containing the information specified in Sections 13.04
and 13.05, from legal counsel.  The
counsel may be an employee of, or counsel to, the Company.

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

“Purchase Agreement”
means the Purchase Agreement dated September 12, 2006 between the Company, on
the one hand, and Banc of America Securities LLC, on the other.

“Record Date”
shall mean, with respect to any dividend, distribution or other transaction or
event in which the holders of Common Stock have the right to receive any cash,
securities or other property or 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).

“Redemption Date”
means the date specified in a notice of redemption on which the Securities may
be redeemed in accordance with the terms of the Securities and this Indenture.

“Registration Rights
Agreement” means the Registration Rights Agreement, dated the
date hereof, between the Company, on the one hand, and Banc of America
Securities LLC, on the other.

“Responsible Officer”
means, when used with respect to the Trustee, any officer of the Trustee within
the Institutional Trust Services department (or any successor department) of
the Trustee located at the Corporate Trust Office of the Trustee who has direct
responsibility for the administration of this Indenture and, for the purposes
of Section 8.01(c)(2) and 8.05 shall also mean any other officer of the
Trustee to whom any corporate trust matter is referred because of such person’s
knowledge of and familiarity with the particular subject matter and who shall
have direct responsibility for the administration of this Indenture.

“Restricted Security”
means a Security required to bear the Legend.

“Rule 144A”
means Rule 144A under the Securities Act (or any successor provision), as it
may be amended from time to time.

“SEC” means
the Securities and Exchange Commission.

“Securities Act”
means the Securities Act of 1933, as amended, and the rules and regulations of
the SEC promulgated thereunder.

“Security”
means any of the Company’s 2.625% Convertible Senior Subordinated Notes due
2026 issued under this Indenture.

 7
 

 

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

“Senior Indebtedness”
means the principal of, premium, if any, interest, including any interest
accruing after the commencement of any bankruptcy or similar proceeding,
whether or not a claim for post-petition interest is allowed as a claim in the
proceeding, and rent payable on or in connection with, and all fees, costs,
expenses and other amounts accrued or due on or in connection with, the Company’s
Indebtedness (including the Credit Agreement), whether secured or unsecured,
absolute or contingent, due or to become due, outstanding on the date of the
Indenture or thereafter created, incurred, assumed, guaranteed or in effect
guaranteed by the Company, including all deferrals, renewals, extensions or
refundings of, or amendments, modifications or supplements to, the foregoing.

Senior Indebtedness does not include:

(1)           Indebtedness
that expressly provides that such Indebtedness will not be senior in right of
payment to the Securities or expressly provides that such Indebtedness is on
parity with or junior in right of payment to the Securities;

(2)           any
Indebtedness to any of the Company’s Subsidiaries;

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

(4)           Indebtedness
for trade payables or the deferred purchase price of assets or services
incurred in the ordinary course of business.

“Senior Subordinated Debt”,
with respect to the Company, means the Securities and any other Indebtedness of
the Company that specifically provide that such Indebtedness is to have the
same rank as the Securities in right of payment and is not subordinated by its
terms in right of payment to any Indebtedness of the Company or other
obligations of the Company that is not Senior Indebtedness.

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

“Stated Maturity”,
when used with respect to any Security, means October 1, 2026.

“Stock Price”
means the price per share of Common Stock paid in connection with a Change of
Control transaction pursuant to which Additional Shares are issuable as set
forth in Section 11.01(c) hereof, which shall be equal to (i) if
Holders of Common Stock receive only cash in such Change of Control
transaction, the cash amount paid per share of Common Stock and (ii) in
all other cases, the average of the Last Reported Sale Prices of the Common
Stock on the five Trading Days prior to, but not including, the effective date
of such Change of Control transaction.

 8
 

 

“Subordinated Debt”
means, with respect to the Company, any current or future Indebtedness of the
Company that by its terms is subordinated in right of payment to the
Securities.

“Subsidiary”
means any person of which at least a majority of the outstanding Voting Stock
shall at the time directly or indirectly be owned or controlled by the Company
or by one or more Subsidiaries or by the Company and one or more Subsidiaries.

“Termination of Trading”
means the occurrence, at any time, of the Common Stock of the Company (or other
common stock into which the Securities are then convertible) not listed
for trading on the New York Stock Exchange, the Nasdaq Global Market or such
other U.S. national securities exchange.

“TIA” means
the Trust Indenture Act of 1939 as in effect on the date of this Indenture, provided, however, that in the event the TIA is amended
after such date, TIA means, to the extent required by any such amendment, the
TIA as so amended.

“Trading Day”
means any day on which (i) there is no Market Disruption Event and (ii) the New
York Stock Exchange, or if the Company’s Common Stock is not listed on the New
York Stock Exchange, the Nasdaq Global Market or if the Company’s Common Stock
is not listed on the New York Stock Exchange or on the Nasdaq Global Market,
the principal national securities exchange on which the Company Common Stock is
listed, is open for trading or, if the Company’s Common Stock is not so listed
or admitted for trading, any Business Day. 
A “Trading Day” only includes those days that have a scheduled closing
time of 4:00 p.m. (New York City time) or the then standard closing time for
regular trading on the relevant exchange or trading system.

“Trading Price”
of the Securities on any date of determination means the average of the
secondary market bid quotations per $1,000 principal amount of the Securities
obtained by the Bid Solicitation Agent for $5,000,000 principal amount of the
Securities at approximately 3:30 p.m., New York City time, on such
determination date from three independent nationally recognized securities
dealers which 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; provided further
that if no bids are received or in the Company’s reasonable judgment, the bid
quotations are not indicative of the secondary market value of the Securities,
then (i) for purposes of any determination of whether Contingent Interest
is payable or the amount thereof, the Trading Price of the Securities on any
date of determination shall equal the product of (a) the applicable
Conversion Rate for the Securities as of the date of determination and
(b) the average Last Reported Sale Price of the Common Stock on the five
Trading Days ending on such determination date; and (ii) for purposes of
determining whether the condition to conversion of the Securities set forth in
Section 11.01(a)(1) has been satisfied, the Trading Price of the
Securities will be deemed to be less than 98% of the product of the Closing
Price of the Common Stock and the Conversion Rate on such date.

“Treasury Regulations”
means the U.S. federal income tax regulations, including temporary regulations,
promulgated under the Code, as those regulations may be amended from

 9
 

 

time to time. 
Any reference herein to a specific section of the Treasury regulations
shall include any corresponding provisions of succeeding, similar, substitute,
proposed or final Treasury regulations.

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

“Voting Stock”
of a Person means Capital Stock of such Person of the class or classes pursuant
to which the holders thereof have the general voting power under ordinary
circumstances to elect at least a majority of the board of directors, managers
or trustees of such Person (irrespective of whether or not at the time Capital
Stock of any other class or classes shall have or might have voting power by
reason of the happening of any contingency).

SECTION 1.02  
Other Definitions.

	
  Terms

  	
   

  	
  Section

  
	
  “Act”

  	
   

  	
  1.05

  
	
  “Acquisition Value”

  	
   

  	
  11.01(d)

  
	
  “Additional Amounts Notice”

  	
   

  	
  5.07

  
	
  “Additional Shares”

  	
   

  	
  11.01(c)

  
	
  “Adjustment Event”

  	
   

  	
  11.04(k)

  
	
  “Agent Members”

  	
   

  	
  2.12(e)

  
	
  “Bankruptcy Law”

  	
   

  	
  7.01(i)

  
	
  “cash”

  	
   

  	
  3.01

  
	
  “Cash Amount”

  	
   

  	
  11.03

  
	
  “Cash Settlement Period”

  	
   

  	
  11.03

  
	
  “contingent debt regulations”

  	
   

  	
  2.14

  
	
  “Conversion Agent”

  	
   

  	
  2.03

  
	
  “Conversion Date”

  	
   

  	
  11.02(c)

  
	
  “Conversion Notice”

  	
   

  	
  11.02(b)

  
	
  “Conversion Obligation”

  	
   

  	
  11.01(a)

  
	
  “Conversion Rate”

  	
   

  	
  11.02(a)

  
	
  “Conversion Settlement Distribution”

  	
   

  	
  11.03

  
	
  “Conversion Value”

  	
   

  	
  11.03

  
	
  “Depositary”

  	
   

  	
  2.01(b)

  
	
  “Determination Date”

  	
   

  	
  11.04(k)

  
	
  “Distributed Assets”

  	
   

  	
  11.04(d)

  
	
  “Dividend Threshold Amount”

  	
   

  	
  11.04(e)

  
	
  “DTC”

  	
   

  	
  2.01(b)

  
	
  “effective date”

  	
   

  	
  11.01(c)

  
	
  “Event of Default”

  	
   

  	
  7.01

  

 

 10
 

 

 

	
  “Exchange Property”

  	
   

  	
  11.01(b)

  
	
  “Expiration Time”

  	
   

  	
  11.04(f)

  
	
  “Fiscal Quarter”

  	
   

  	
  11.01(a)

  
	
  “Fundamental Change Repurchase Date”

  	
   

  	
  3.08(a)

  
	
  “Fundamental Change Repurchase Notice”

  	
   

  	
  3.08(c)

  
	
  “Fundamental Change Repurchase Price”

  	
   

  	
  3.08(a)

  
	
  “legal holiday”

  	
   

  	
  13.08

  
	
  “junior securities”

  	
   

  	
  4.08

  
	
  “Legend”

  	
   

  	
  2.06(g)

  
	
  “Measurement Period”

  	
   

  	
  11.01(a)(2)

  
	
  “net share amount”

  	
   

  	
  11.03

  
	
  “Non-Electing Share”

  	
   

  	
  11.05(b)

  
	
  “Notice of Default”

  	
   

  	
  7.01

  
	
  “Paying Agent”

  	
   

  	
  2.03

  
	
  “Payment Blockage Period”

  	
   

  	
  4.02

  
	
  “Public Acquirer Change of Control”

  	
   

  	
  11.01(d)

  
	
  “Public Acquirer Common Stock”

  	
   

  	
  11.01(d)

  
	
  “Purchased Shares”

  	
   

  	
  11.04(f)

  
	
  “QIB”

  	
   

  	
  2.01(b)

  
	
  “Redemption Price”

  	
   

  	
  3.01

  
	
  “Registrar”

  	
   

  	
  2.03

  
	
  “Repurchase Date”

  	
   

  	
  3.07(a)

  
	
  “Repurchase Notice”

  	
   

  	
  3.07(b)

  
	
  “Repurchase Price”

  	
   

  	
  3.07(a)

  
	
  “Rule 144A Information”

  	
   

  	
  5.06

  
	
  “specified cash amount”

  	
   

  	
  11.03

  
	
  “successor Person”

  	
   

  	
  6.01(a)

  
	
  “Trigger Event”

  	
   

  	
  11.04(d)

  
	
  “Valuation Period”

  	
   

  	
  11.01(d)

  

SECTION 1.03   Incorporation
by Reference of Trust Indenture Act. 
Whenever this Indenture refers to a provision of the TIA, the provision
is incorporated by reference in and made a part of this Indenture.  The following TIA terms used in this
Indenture have the following meanings:

 “Commission” means the SEC.

“Indenture Securities”
means the Securities.

“Indenture Security Holder”
means a Securityholder.

“Indenture to be Qualified”
means this Indenture.

 11
 

 

“Indenture Trustee”
or “Institutional Trustee” means the
Trustee.

“Obligor” on
the indenture securities means the Company.

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

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

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

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

(3)                                  “or”
is not exclusive;

(4)                                  “including”
means including, without limitation;

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

(6)                                  references
to Sections and Articles are to references to Sections and Articles of this
Indenture.

SECTION 1.05   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, as described in Section 13.02.  Such instrument or instruments (and the
action embodied therein and evidenced thereby) are herein sometimes
referred to as the “Act” of Holders signing such instrument or
instruments.  Proof of execution of any
such instrument or of a writing appointing any such agent shall be sufficient
for any purpose of this Indenture and conclusive in favor of the Trustee and
the Company, if made in the manner provided in this Section.

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

 12
 

 

(c)           The principal amount and serial number of any Security and
the ownership of Securities shall be proved by the register for the Securities.

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

(e)           If the Company shall solicit from the Holders any request,
demand, authorization, direction, notice, consent, waiver or other Act, the
Company may, at its option, by or pursuant to a Board Resolution, fix in
advance a record date for the determination of Holders entitled to give such
request, demand, authorization, direction, notice, consent, waiver or other
Act, but the Company shall have no obligation to do so.  If such a record date is fixed, such request,
demand, authorization, direction, notice, consent, waiver or other Act may be
given before or after such record date, but only the Holders of record at the
close of business on such record date shall be deemed to be Holders for the
purposes of determining whether Holders of the requisite proportion of
outstanding Securities have authorized or agreed or consented to such request,
demand, authorization, direction, notice, consent, waiver or other Act, and for
that purpose the outstanding Securities shall be computed as of such record
date; provided that no such authorization,
agreement or consent by the Holders on such record date shall be deemed
effective unless it shall become effective pursuant to the provisions of this
Indenture not later than six months after the record date.

ARTICLE 2

THE SECURITIES

SECTION 2.01   Form
and Dating.  (a) The Securities
and the Trustee’s certificate of authentication shall be substantially in the
form of Exhibits A and B, which are a part of this Indenture.  The Securities may have notations, legends or
endorsements required by law, stock exchange rule or usage (provided
that any such notation, legend or endorsement required by usage is in a form
acceptable to the Company).  The Company
shall provide any such notations, legends or endorsements to the Trustee in
writing.  Each Security shall be dated
the date of its authentication.  The
Securities may, but need not, have the corporate seal of the Company or a
facsimile thereof affixed thereto or imprinted thereon.

(b)           144A Global Securities.  Securities offered and sold within the United
States to qualified institutional buyers as defined in Rule 144A (“QIBS”) in reliance on Rule
144A shall be issued, initially in the form of a 144A Global Security, which
shall be deposited with the Trustee at its Corporate Trust Office, as custodian
for the Depositary (as defined below) and registered in the name of The
Depository Trust Company (“DTC”) or
the nominee thereof (DTC, or any successor thereto, and any such nominee being
hereinafter referred to as the “Depositary”),
duly executed by the Company and authenticated by the Trustee as hereinafter
provided.  The aggregate principal amount
of the 144A Global Securities may from time to time

 13
 

 

be increased or decreased by adjustments made
on the records of the Trustee and the Depositary as hereinafter provided.

(c)           Global Securities in General.  Each Global Security shall represent such
amount of the outstanding Securities as shall be specified therein and each
shall provide that it shall represent the aggregate amount of outstanding
Securities from time to time endorsed in the Schedule of Increases and
Decreases of Global Security attached thereto and that the aggregate amount of
outstanding Securities represented thereby may from time to time be reduced or
increased, as appropriate, to reflect exchanges, redemptions, repurchases and
conversions.

Any adjustment of the aggregate principal amount of a
Global Security to reflect the amount of any increase or decrease in the amount
of outstanding Securities represented thereby shall be made by the Trustee in
accordance with instructions given by the Holder thereof as required by Section
2.12 hereof, and shall be made on the records of the Trustee and the
Depositary.

(d)           Book-Entry Provisions.  This Section 2.01(d) shall apply only to
Global Securities deposited with or on behalf of the Depositary.

The Company shall execute and the Trustee shall, in
accordance with this Section 2.01(d), authenticate and deliver initially one or
more Global Securities that (a) shall be registered in the name of the
Depositary or a nominee thereof, (b) shall be delivered by the Trustee to
the Depositary or held by the Trustee pursuant to the Depositary’s instructions
and (c) shall be substantially in the form of Exhibit A attached hereto.

(e)           Certificated Securities.  Securities not issued as interests in the
Global Securities shall be issued in certificated form substantially in the
form of Exhibit B attached hereto.

SECTION 2.02   Execution
and Authentication.  The Securities
shall be executed on behalf of the Company by one Officer.  The signature of such Officer on the
Securities may be manual or facsimile.

Securities bearing the manual or facsimile signature
of an individual who was, at the time of the execution of the Securities, an
Officer shall bind the Company, notwithstanding that such individual has ceased
to hold such office prior to the authentication and delivery of such Securities
or did not hold such office at the date of authentication of such Securities.

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

The Trustee shall authenticate and deliver the
Securities for original issue in an aggregate principal amount of up to
$175,000,000 (or, to the extent the Initial Purchaser exercises its
over-allotment option, up to $201,250,000) upon one or more Company Orders
without any further action by the Company (other than as contemplated in
Section 13.04 and

 14
 

 

Section 13.05 hereof). 
Subject to the provisions of Section 2.08, the aggregate principal
amount of the Securities due at the Stated Maturity thereof outstanding at any
time may not exceed the amount set forth in the foregoing sentence.

The Securities shall be issued only in registered form
without coupons and only in denominations of $1,000 of principal amount and any
integral multiple of $1,000.

SECTION 2.03   Registrar,
Paying Agent, Bid Solicitation Agent, and Conversion Agent.  The Company shall maintain an office or
agency where Securities may be presented for registration of transfer or for
exchange (“Registrar”), an office or
agency where Securities may be presented for purchase or payment (“Paying Agent”) and an office or
agency where Securities may be presented for conversion (“Conversion
Agent”).  The Registrar
shall keep a register of the Securities and of their transfer and
exchange.  The Company may appoint one or
more co-registrars, one or more additional paying agents, one or more
additional bid solicitation agents and one or more additional conversion
agents.  The term Paying Agent includes
any additional paying agent, including any named pursuant to Section 5.05.  The term “Conversion Agent” includes any
additional conversion agent, including any named pursuant to Section 5.05.

The Company shall enter into an appropriate agency
agreement with any Registrar, Paying Agent, Conversion Agent, Bid Solicitation
Agent or co-registrar (in each case, if such Registrar, agent or co-registrar
is a Person other than the Trustee).  The
agreement shall implement the provisions of this Indenture that relate to such
agent.  The Company shall promptly notify
the Trustee of the name and address of any such agent.  If the Company fails to maintain a Registrar,
Paying Agent, Bid Solicitation Agent or Conversion Agent, the Trustee shall act
as such and shall be entitled to appropriate compensation therefore pursuant to
Section 8.07.  The Company or any
Subsidiary or an Affiliate of either of them may act as Paying Agent,
Registrar, Conversion Agent, Bid Solicitation Agent or co-registrar.  The Depositary shall, by acceptance of a
Global Security, agree that transfers of beneficial interests in such Global
Security may be effected only through a book-entry system maintained by the
Depositary (or its agent), and that ownership of a beneficial interest in the
Security shall be required to be reflected in a book entry.

The Company initially appoints the Trustee as
Registrar, Conversion Agent, Bid Solicitation Agent and Paying Agent in
connection with the Securities.

SECTION 2.04   Paying
Agent to Hold Money and Securities in Trust.  Except as otherwise provided herein, on or
prior to each due date of payments in respect of any Security, the Company
shall deposit with the Paying Agent a sum of money (in immediately available
funds if deposited on the due date) or shares of Common Stock sufficient
to make such payments when so becoming due. 
The Company shall require each Paying Agent (other than the Trustee) to
agree in writing that the Paying Agent shall hold in trust for the benefit of
Securityholders or the Trustee all money and shares of Common Stock held by the
Paying Agent for the making of payments in respect of the Securities and shall
promptly notify the Trustee of any Default by the Company in making any such
payment.  At any time during the
continuance of any such Default, the Paying Agent shall, upon the written
request of the Trustee, forthwith pay to the Trustee all money and shares of
Common Stock so held in trust.  If the
Company, a Subsidiary or an Affiliate of either of them acts as Paying Agent,
it shall segregate the money

 15
 

 

and shares of Common
Stock held by it as Paying Agent and hold it as a separate trust fund.  The Company at any time may require a Paying
Agent to pay all money and shares of Common Stock held by it to the Trustee and
to account for any funds and Common Stock disbursed by it.  Upon doing so, the Paying Agent shall have no
further liability for the money or shares of Common Stock.

SECTION 2.05   Securityholder
Lists.  The Trustee shall preserve
the most recent list available to it of the names and addresses of
Securityholders.  If the Trustee is not
the Registrar, the Company shall cause to be furnished to the Trustee at least
semiannually on March 15 and September 15 a listing of Securityholders dated
within 15 days of the date on which the list is furnished and at such other
times as the Trustee may request in writing a list in such form and as of such
date as the Trustee may reasonably require of the names and addresses of
Securityholders.

SECTION 2.06   Transfer
and Exchange.  (a)  Subject
to Section 2.12 hereof, upon surrender for registration of transfer of any
Security, together with a written instrument of transfer satisfactory to the
Registrar duly executed by the Securityholder or such Securityholder’s attorney
duly authorized in writing, at the office or agency of the Company designated
as Registrar or co-registrar pursuant to Section 2.03, the Company shall
execute, and the Trustee shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Securities of any
authorized denomination or denominations, of a like aggregate principal
amount.  The Company shall not charge a
service charge for any registration of transfer or exchange, but the Company
may require payment of a sum sufficient to pay all taxes, assessments or other
governmental charges that may be imposed in connection with the transfer or
exchange of the Securities from the Securityholder requesting such transfer or
exchange.

At the option of the Holder, Securities may be
exchanged for other Securities of any authorized denomination or denominations,
of a like aggregate principal amount upon surrender of the Securities to be
exchanged, together with a written instrument of transfer satisfactory to the
Registrar duly executed by the Securityholder or such Securityholder’s attorney
duly authorized in writing, at such office or agency.  Whenever any Securities are so surrendered
for exchange, the Company shall execute, and the Trustee shall authenticate and
deliver, the Securities which the Holder making the exchange is entitled to
receive.

The Company shall not be required to make, and the
Registrar need not register, transfers or exchanges of Securities selected for
redemption (except, in the case of Securities to be redeemed in part, the
portion thereof not to be redeemed) or any Securities in respect of which
a Repurchase Notice or Fundamental Change Repurchase Notice has been given and
not withdrawn by the Holder thereof in accordance with the terms of this
Indenture (except, in the case of Securities to be purchased in part, the
portion thereof not to be purchased) or any Securities for a period of 15
days before the mailing of a notice of redemption of Securities to be redeemed.

(b)           Notwithstanding any provision to the contrary herein, so
long as a Global Security remains outstanding and is held by or on behalf of
the Depositary, transfers of a Global Security, in whole or in part, shall be
made only in accordance with Section 2.12 and this Section

 16
 

 

2.06(b). 
Transfers of a Global Security shall, except as set forth in Section
2.12, be limited to transfers of such Global Security in whole or in part, to
the Depositary, to nominees of the Depositary or to a successor of the
Depositary or such successor’s nominee. 
Neither the Trustee nor any agent shall have any responsibility for
actions taken by the Depository.

(c)           Successive registrations and registrations of transfers
and exchanges as aforesaid may be made from time to time as desired, and each
such registration shall be noted on the register for the Securities.

(d)           Except as otherwise set forth in this Indenture, any such
action taken by a Holder shall be conclusive and binding upon such Holder and
upon all future Holders and owners of such Security and of any Securities
issued in exchange or substitution therefor, irrespective of whether any
notation in regard thereto is made upon such Security or any Security issued in
exchange or substitution therefore.

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

(f)            No Registrar shall be required to make registrations of
transfer or exchange of Securities during any periods designated in the text of
the Securities or in this Indenture as periods during which such registration
of transfers and exchanges need not be made.

(g)           If Securities are issued upon the transfer, exchange or
replacement of Securities subject to restrictions on transfer and bearing the
legends relating to such restrictions imposed by the securities laws set forth
on the forms of Security attached hereto as Exhibits A and B setting forth such
restrictions (collectively, the “Legend”),
or if a request is made to remove the Legend on a Security, the Securities so
issued shall bear the Legend, or the Legend shall not be removed, as the case
may be, unless there is delivered to the Company and the Registrar such
satisfactory evidence, which shall include an opinion of counsel, as may be
reasonably required by the Company and the Registrar and the Trustee (if not
the same Person as the Registrar), that neither the Legend nor the restrictions
on transfer set forth therein are required to ensure that transfers thereof
comply with the provisions of Rule 144 under the Securities Act or that such
Securities are not “restricted” within the meaning of Rule 144 under the
Securities Act.  Upon (i) provision
of such satisfactory evidence, or (ii) notification by the Company to the
Trustee and Registrar of the sale of such Security pursuant to a registration
statement that is effective at the time of such sale, the Trustee, at the written
direction of the Company, shall authenticate and deliver a Security that does
not bear the Legend.  If the Legend is
removed from the face of a Security and the Security is subsequently held by
the Company or an Affiliate of the Company, the Legend shall be reinstated.

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

 17
 

 

(i)            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
Depositary Participants or beneficial owners of interests in any Global
Security) other than to require delivery of such certificates and other
documentation or evidence as are expressly required by, and to do so if and
when expressly required by the terms of, this Indenture, and to examine the
same to determine substantial compliance as to form with the express
requirements hereof.

SECTION 2.07   Replacement
Securities.  If (a) any
mutilated Security is surrendered to the Trustee, or (b) the Company and
the Trustee receive evidence to their satisfaction of the destruction, loss or
theft of any Security, and there is delivered to the Company and the Trustee
such security or indemnity as may be required by them to save each of them
harmless, then, in the absence of notice to the Company or the Trustee that
such Security has been acquired by a bona fide purchaser, the Company shall
execute and upon its written request the Trustee shall authenticate and
deliver, in exchange for any such mutilated Security or in lieu of any such
destroyed, lost or stolen Security, a new Security of like tenor and principal
amount, bearing a certificate number not contemporaneously outstanding.

In case any such mutilated, destroyed, lost or stolen
Security has become or is about to become due and payable, or is about to be
redeemed or purchased by the Company pursuant to Article 3 hereof, the Company
in its discretion may, instead of issuing a new Security, pay or purchase such
Security, as the case may be.

Upon the issuance of any new Securities under this
Section 2.07, the Company may require the payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in relation thereto
and any other expenses (including the fees and expenses of the
Trustee) connected therewith.

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

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

SECTION 2.08   Outstanding
Securities; Determinations of Holders’ Action.  Securities outstanding at any time are all
the Securities authenticated by the Trustee except for those cancelled by it,
those redeemed or purchased pursuant to Section 2.07, those delivered to it for
cancellation and those described in this Section 2.08 as not outstanding.  A Security does not cease to be outstanding
because the Company or an Affiliate thereof holds the Security; provided, however, that in determining whether the Holders
of the requisite principal amount of Securities have given or concurred in any
request, demand, authorization, direction, notice, consent, waiver, or other
Act hereunder, Securities owned by the Company or any other obligor

 18
 

 

upon the Securities or
any Affiliate of the Company or such other obligor shall be disregarded and
deemed not to be outstanding, except that, in determining whether the Trustee
shall be protected in relying upon any such request, demand, authorization,
direction, notice, consent, waiver or other act, only Securities which a
Responsible Officer of the Trustee actually knows to be so owned shall be so
disregarded.  Subject to the foregoing,
only Securities outstanding at the time of such determination shall be
considered in any such determination (including, without limitation,
determinations pursuant to Article 7 and Article 10).

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

If the Paying Agent holds, in accordance with this
Indenture, on a Redemption Date, or on the Business Day immediately following a
Repurchase Date or a Fundamental Change Repurchase Date, or on Stated Maturity,
money or securities, if permitted hereunder, sufficient to pay Securities
payable on that date, then from and after such Redemption Date, Repurchase
Date, Fundamental Change Repurchase Date or Stated Maturity, as the case may
be, such Securities shall cease to be outstanding and Interest, Contingent
Interest and Additional Amounts, if any, on such Securities shall cease to
accrue; provided, that if such Securities are to
be redeemed, notice of such redemption has been duly given pursuant to this
Indenture or provision therefor satisfactory to the Trustee has been made.

If a Security is converted in accordance with Article
11, then from and after the time of conversion on the date of conversion, such
Security shall cease to be outstanding and Interest, Contingent Interest, Additional
Amounts, if any, shall cease to accrue, and the rights of the Holders therein
shall terminate (other than the right to receive the Conversion Settlement
Distribution).

SECTION 2.09   Temporary
Securities.  Pending the preparation
of Certificated Securities, the Company may execute, and upon Company Order the
Trustee shall authenticate and deliver, temporary Securities which are printed,
lithographed, typewritten, mimeographed or otherwise produced, in any
authorized denomination, substantially of the tenor of the Certificated
Securities in lieu of which they are issued and with such appropriate
insertions, omissions, substitutions and other variations as the Officers
executing such Securities may determine, as conclusively evidenced by their
execution of such Securities.

If temporary Securities are issued, the Company shall
cause Certificated Securities to be prepared without unreasonable delay.  After the preparation of Certificated
Securities, the temporary Securities shall be exchangeable for Certificated
Securities upon surrender of the temporary Securities at the office or agency
of the Company designated for such purpose pursuant to Section 2.03, without
charge to the Holder.  Upon surrender for
cancellation of any one or more temporary Securities the Company shall execute
and the Trustee shall authenticate and deliver in exchange therefore a like
principal amount of Certificated Securities of authorized denominations.  Until so exchanged the temporary Securities
shall in all respects be entitled to the same benefits under this Indenture as
Certificated Securities.

 19

 

SECTION 2.10   Cancellation.  All Securities surrendered for payment,
purchase by the Company pursuant to Article 3, conversion, redemption or
registration of transfer or exchange shall, if surrendered to any Person other
than the Trustee, be delivered to the Trustee and shall be promptly cancelled
by it.  The Company may at any time
deliver to the Trustee for cancellation any Securities previously authenticated
and delivered hereunder which the Company may have acquired in any manner
whatsoever, and all Securities so delivered shall be promptly cancelled by the
Trustee.  The Company may not issue new
Securities to replace Securities it has paid or delivered to the Trustee for
cancellation other than in connection with registrations of transfer or
exchange or that any Holder has converted pursuant to Article 11.  No Securities shall be authenticated in lieu
of or in exchange for any Securities cancelled as provided in this Section,
except as expressly permitted by this Indenture.  All cancelled Securities held by the Trustee
shall be disposed of by the Trustee in accordance with the Trustee’s customary
procedure.

SECTION 2.11   Persons
Deemed Owners.  Prior to due
presentment of a Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in
whose name such Security is registered as the owner of such Security for the
purpose of receiving payment of the principal amount of the Security or any
portion thereof, or the payment of any Redemption Price, Repurchase Price or
Fundamental Change Repurchase Price in respect thereof, and Interest,
Contingent Interest or Additional Amounts thereon, for the purpose of
conversion and for all other purposes whatsoever, whether or not such Security
be overdue, and neither the Company, the Trustee nor any agent of the Company
or the Trustee shall be affected by notice to the contrary.

SECTION 2.12   Global
Securities.  (a) Notwithstanding
any other provisions of this Indenture or the Securities, (A) transfers of
a Global Security, in whole or in part, shall be made only in accordance with
Section 2.06 and Section 2.12(a)(i) below, (B) transfers of a
beneficial interest in a Global Security for a Certificated Security shall
comply with Section 2.06 and Section 2.12(a)(ii) below and Section
2.12(e) below, and (C) transfers of a Certificated Security shall
comply with Section 2.06, Section 2.12(a)(iii) and Section
2.12(a)(iv) below.

(i)            Transfer of Global
Security.  A Global Security
may not be transferred, in whole or in part, to any Person other than the
Depositary or a nominee or any successor thereof, and no such transfer to any
such other Person may be registered; provided that this Section
2.12(a)(i) 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.  Nothing in this Section 2.12(a)(i) shall
prohibit or render ineffective any transfer of a beneficial interest in a
Global Security effected in accordance with the other provisions of this
Section 2.12.

(ii)           Restrictions on
Transfer of a Beneficial Interest in a Global Security for a Certificated
Security.  A beneficial
interest in a Global Security may not be exchanged for a Certificated Security
except upon satisfaction of the requirements set forth in this clause
(ii) below and in Section 2.12(e) below.  Upon receipt by the Trustee of a request to
transfer a beneficial interest in a Global Security in accordance with
Applicable Procedures for a Certificated Security in the form satisfactory to
the Trustee, together with:

 20
 

 

(1)           so long as the Securities are Restricted
Securities, certification in the form set forth in Exhibit C;

(2)           written instructions to the Trustee
to make, or direct the Registrar to make, an adjustment on its books and
records with respect to such Global Security to reflect a decrease in the aggregate
principal amount of the Securities represented by the Global Security, such
instructions to contain information regarding the Depositary account to be
decreased; and

(3)           if the Company or the Trustee so
requests, an opinion of counsel or other evidence reasonably satisfactory to it
as to the compliance with the restrictions set forth in the Legend, then the
Trustee shall cause, or direct the Registrar to cause, in accordance with the
standing instructions and procedures existing between the Depositary and the
Registrar, the aggregate principal amount of the Securities represented by the
Global Security to be decreased by the aggregate principal amount of the
Certificated Security to be issued, shall issue such Certificated Security and
shall debit or cause to be debited to the account of the Person specified in
such instructions a beneficial interest in the Global Security equal to the
principal amount of the Certificated Security so issued.

(iii)          Transfer and Exchange of
Certificated Securities.  When
Certificated Securities are presented to the Registrar with a request:

(y)           to register the transfer of such
Certificated Securities; or

(z)            to exchange such Certificated
Securities for an equal principal amount of Certificated Securities of other
authorized denominations,

the Registrar shall register the transfer or make the
exchange as requested if its reasonable requirements for such transaction are
met; provided, however, that the Certificated
Securities surrendered for transfer or exchange:

(1)           shall be duly endorsed or accompanied
by a written instrument of transfer in form reasonably satisfactory to the
Company and the Registrar, duly executed by the Holder thereof or his attorney
duly authorized in writing; and

(2)           so long as such Securities are Restricted
Securities, such Securities are being transferred or exchanged pursuant to an
effective registration statement under the Securities Act or pursuant to clause
(A), (B) or (C) below, and are accompanied by the following
additional information and documents, as applicable:

(A)          if such Certificated Securities are
being delivered to the Registrar by a Holder for registration in the name of
such Holder, without transfer, a certification from such Holder to that effect;
or

 21
 

 

(B)           if such Certificated Securities are
being transferred to the Company, a certification to that effect; or

(C)           if such Certificated Securities are
being transferred pursuant to an exemption from registration, (i) a
certification to that effect (in the form set forth in Exhibit C, if applicable) and
(ii) if the Company or the Trustee so requests, an opinion of counsel or
other evidence reasonably satisfactory to it as to the compliance with the
restrictions set forth in the Legend.

(iv)          Restrictions on Transfer or
Exchange of a Certificated Security for a Beneficial Interest in a Global
Security.  A Certificated Security
may not be transferred or exchanged for a beneficial interest in a Global
Security except upon satisfaction of the requirements set forth below.

Upon receipt by the Trustee of a Certificated
Security, duly endorsed or accompanied by appropriate instruments of transfer,
in form satisfactory to the Trustee, together with:

(I)            so long as the Securities are
Restricted Securities, certification, in the form set forth in Exhibit C, that
such Certificated Security (A) is being transferred to a QIB in accordance
with Rule 144A under the Securities Act or (B) is being transferred
pursuant to and in compliance with Rule 144 under the Securities Act or another
exemption from the securities laws (which is documented to the Company’s
satisfaction); and

(II)           written instructions directing the
Trustee to make, or to direct the Registrar to make, an adjustment on its books
and records with respect to such Global Security to reflect an increase in the
aggregate principal amount of the Securities represented by the Global
Security, such instructions to contain information regarding the Depositary
account to be credited with such increase, then the Trustee shall cancel such
Certificated Security and cause, or direct the Registrar to cause, in
accordance with the standing instructions and procedures existing between the
Depositary and the Registrar, the aggregate principal amount of Securities
represented by the Global Security to be increased by the aggregate principal
amount of the Certificated Security to be exchanged, and shall credit or cause
to be credited to the account of the person specified in such instructions a
beneficial interest in the Global Security equal to the principal amount of the
Certificated Security so cancelled.  If
no Global Securities are then outstanding, the Company shall issue and the
Trustee shall authenticate, upon written order of the Company in the form of an
Officer’s Certificate, a new Global Security in the appropriate principal
amount.

(b)           Subject
to the succeeding Section 2.12(c), every Security shall be subject to the
restrictions on transfer provided in the Legend including the delivery of an
opinion of counsel, if so provided. 
Whenever any Restricted Security is presented or surrendered for
registration of transfer or for exchange for a Security registered in a name
other than that of the

 22
 

 

Holder, such Security must be accompanied by a certificate in
substantially the form set forth in Exhibit C, dated the date of such surrender
and signed by the Holder of such Security, as to compliance with such
restrictions on transfer.  The Registrar
shall not be required to accept for such registration of transfer or exchange
any Security not so accompanied by a properly completed certificate.

(c)           The
restrictions imposed by the Legend upon the transferability of any Security
shall cease and terminate when such Security has been sold pursuant to an
effective registration statement under the Securities Act or transferred in
compliance with Rule 144 under the Securities Act (or any successor provision
thereto) or, if earlier, upon the expiration of the holding period
applicable to sales thereof under Rule 144(k) under the Securities Act (or
any successor provision).  Any Security
as to which such restrictions on transfer shall have expired in accordance with
their terms or shall have terminated may, upon a surrender of such Security for
exchange to the Registrar in accordance with the provisions of this Section
2.12 (accompanied, in the event that such restrictions on transfer have
terminated by reason of a transfer in compliance with Rule 144 under the
Securities Act or any successor provision, by an opinion of counsel having
substantial experience in practice under the Securities Act and otherwise
reasonably acceptable to the Company and the Trustee, addressed to the Company
and the Trustee and in form acceptable to the Company and the Trustee, to the
effect that the transfer of such Security has been made in compliance with Rule
144 under the Securities Act or such successor provision), be exchanged for a
new Security, of like tenor and aggregate principal amount, which shall not
bear the restrictive Legend.  The Company
shall inform the Trustee of the effective date of any registration statement
registering the Securities under the Securities Act.  The Trustee shall not be liable for any
action taken or omitted to be taken by it in good faith in accordance with the
aforementioned opinion of counsel or registration statement.

(d)           As
used in the preceding two paragraphs of this Section 2.12, the term “transfer”
encompasses any sale, pledge, transfer, loan, hypothecation, or other
disposition of any Security.

(e)           The
provisions of clauses (i), (ii), (iii), (iv) and (v) below shall
apply only to Global Securities:

(i)            Notwithstanding any other provisions
of this Indenture or the Securities, a Global Security shall not be exchanged
in whole or in part for a Security registered in the name of any Person other
than the Depositary or one or more nominees thereof, provided
that a Global Security may be exchanged for Securities registered in the names
of any Person designated by the Depositary in the event that (i) the
Depositary has notified the Company that it is unwilling or unable to continue
as Depositary for such Global Security or such Depositary has ceased to be a “clearing
agency” registered under Exchange Act, and a successor Depositary is not
appointed by the Company within 90 days (ii) the Company determines at any
time that the Securities shall no longer be represented by Global Securities
and shall inform such Depositary of such determination in writing or
(iii) a Default has occurred and is continuing.  Any Global Security exchanged pursuant to
clause (i) above shall be so exchanged in whole and not in part, and any
Global Security exchanged pursuant to clauses (ii) or (iii) above may
be exchanged in whole or from time to time in part as directed by the
Depositary.  Any

 23
 

 

Security
issued in exchange for a Global Security or any portion thereof shall be a
Global Security; provided that any such Security
so issued that is registered in the name of a person other than the Depositary
or a nominee thereof or any successor of either of the foregoing pursuant to
this paragraph shall not be a Global Security.

(ii)           Securities issued in exchange for a
Global Security or any portion thereof shall be issued in definitive, fully
registered form, shall have an aggregate principal amount equal to that of such
Global Security or portion thereof to be so exchanged, shall be registered in
such names and be in such authorized denominations as the Depositary shall
designate and shall bear the applicable legends provided for herein.  Any Global Security to be exchanged in whole
shall be surrendered by the Depositary to the Registrar.  With regard to any Global Security to be
exchanged in part, either such Global Security shall be so surrendered for
exchange or, if the Trustee is acting as custodian for the Depositary or its
nominee with respect to such Global Security, the principal amount thereof
shall be reduced by an amount equal to the portion thereof to be so exchanged,
by means of an appropriate adjustment made on the records of the Trustee.  Upon any such surrender or adjustment, the
Trustee shall authenticate and deliver the Security issuable on such exchange
to or upon the order of the Depositary or an authorized representative thereof.

(iii)          Subject to the provisions of clause
(v) below, the registered Holder may grant proxies and otherwise authorize
any Person, including Agent Members (as defined below) and persons that
may hold interests through Agent Members, to take any action which a Holder is
entitled to take under this Indenture or the Securities.

(iv)          In the event of the occurrence of any
of the events specified in clause (i) above, the Company shall promptly
make available to the Trustee a reasonable supply of Certificated Securities in
definitive, fully registered form.

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

(vi)          Except as expressly set forth in this
Indenture, including Sections 2.12(a)(ii) and 2.12(e), none of the
Trustee, any Paying Agent, Conversion Agent, the Company or the Registrar shall
have any responsibility or obligation to any beneficial owner in the Global
Securities, a member of, or a participant in the Depositary or other

 24
 

 

Person with
respect to the accuracy of the records of the Depositary or its nominee or of
any participant or member thereof, with respect to any ownership interest in
the Global Securities or with respect to the delivery to any participant,
member, beneficial owner or other Person (other than the Depositary) of
any notice (including any notice of redemption) or the payment of any
amount, under or with respect to such Global Securities.  All notices and communications to be given to
the Holders and all payments to be made to Holders under the Securities shall
be given or made only to or upon the order of the registered Holders (which
shall be, in the case of a Global Security, the Depositary or its
nominee).  The rights of beneficial
owners in the Global Securities shall be exercised only through the Depositary
subject to the applicable rules and procedures of the Depositary.  Other than as set forth in this Indenture,
the Trustee, any Paying Agent, the Conversion Agent, the Company and the
Registrar may rely and shall be fully protected in relying upon information
furnished by the Depositary with respect to its members, participants and any
beneficial owners.  Except as expressly
set forth in this Indenture, including Sections 2.12(a)(ii) and 2.12(e),
the Trustee, each Paying Agent, the Conversion Agent, the Company and the
Registrar shall be entitled to deal with any depositary (including the
Depositary), and any nominee thereof, that is the Holder of any Global
Securities as a Holder for all purposes of this Indenture relating to such
Global Securities (including the payment of principal, Interest, Contingent
Interest, if any, and Additional Amounts, if any, and the giving of
instructions or directions by or to the owner or Holder of a beneficial
ownership interest in such Global Securities) as the sole Holder of such
Global Securities and shall have no obligations to the beneficial owners
thereof.  None of the Trustee, any Paying
Agent, the Conversion Agent, the Company or the Registrar shall have any
responsibility or liability for any acts or omissions of any such depositary
with respect to such Global Securities, for the records of any such depositary,
including records in respect of beneficial ownership interests in respect of
any such Global Securities, for any transactions between such depositary and
any participant in such depositary or between or among any such depositary, any
such participant and/or any holder or owner of a beneficial interest in such
Global Securities or for any transfers of beneficial interests in any such
Global Securities.

(f)            The
Trustee and the Registrar 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 beneficial owners of interests in any Global Security) other
than to require delivery of such certificates and other documentation or
evidence as are expressly required by, and to do so if and when expressly
required by the terms of, this Indenture, and to examine the same to determine
substantial compliance as to form with the express requirements hereof.

The Trustee shall have no responsibility for the
actions or omissions of the Depositary, or the accuracy of the books and
records of the Depositary.

SECTION 2.13   CUSIP
Numbers.  The Company may issue the
Securities with 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 notices of redemption as a convenience to Holders; provided that any such notice may state that no representation
is made

 25
 

 

as to the correctness of
such numbers either as printed on the Securities or as contained in any notice
of a redemption or purchase and that reliance may be placed only on the other
identification numbers printed on the Securities, and any such redemption shall
not be affected by any defect in or omission of such numbers.  The Company shall promptly notify the Trustee
of any change in the CUSIP, ISIN or other similar numbers.

SECTION 2.14   Contingent
Debt Tax Treatment.  (a) The
Company and each Holder, by acquiring a beneficial interest in a Security,
agree (i) to treat the Security as indebtedness for U.S. federal income
tax purposes that is subject to the Treasury Regulations governing contingent
payment debt instruments (the “contingent debt regulations”), (ii) that
each Holder shall be bound by the Company’s application of the contingent debt
regulations to the Security, including the Company’s determination of the “comparable
yield” and “projected payment schedule” within the meaning of the contingent
debt regulations, (iii) to treat the cash and the fair market value of any
Common Stock received upon the conversion of the Security as a contingent
payment for purposes of the contingent debt regulations, (iv) to accrue
interest with respect to the outstanding Security as original issue discount
according to the “noncontingent bond method” set forth in the contingent debt
regulations, using the comparable yield of 8.375% compounded semi-annually and
(v) that the Company and each Holder will not take any position on any
U.S. federal income tax return that is inconsistent with (i), (ii),
(iii) or (iv) unless required by applicable law.

The Company acknowledges and agrees, and each
Holder and any beneficial holder of a Security by its purchase thereof shall be
deemed to acknowledge and agree, that (i) the comparable yield means the annual
yield the Company would pay, as of the Issue Date, on a fixed rate,
nonconvertible debt security with no contingent payments, but with terms and
conditions otherwise comparable to those of the Securities, (ii) the schedule
of projected payments is determined on the basis of an assumption of a constant
annual growth rate of the stock price and is not determined for any purpose
other than for the determination of interest accruals and adjustments thereof
in respect of the Securities for U.S. federal income tax purposes and (iii) the
comparable yield and the schedule of projected payments do not constitute a
projection or representation regarding the amounts payable on the Securities.

A Holder may obtain the projected payment schedule for
the Security, as determined by the Company pursuant to the contingent debt
regulations, by submitting a written request to the Company at the following
address:  Triumph Group, Inc., 1550
Liberty Ridge Drive, Suite 100, Wayne, Pennsylvania 19087, Attention:  Corporate Secretary.

(b)           Each
Security shall bear a legend relating to U.S. federal income tax matters in the
form set forth in Exhibits A and B.

SECTION 2.15   Calculation
of Original Issue Discount.  The
Company shall file with the Trustee promptly at the end of each calendar year
(i) a written notice specifying the amount of original issue discount
(including daily rates and accrual periods) accrued on outstanding
Securities as of the end of such year and (ii) such other specific
information relating to such original issue discount as may then be required
under the Code or the Treasury Regulations promulgated thereunder.

 26
 

 

ARTICLE 3

REDEMPTION AND REPURCHASES

SECTION 3.01   Company’s
Right to Redeem; Notices to Trustee. 
Prior to October 6, 2011, the Securities shall not be redeemable at the
Company’s option.  On or after October 6,
2011, the Company, at its option, may redeem the Securities for U.S. legal
tender (“Cash”) at any time, in
whole or in part, at a redemption price (the “Redemption
Price”) equal to 100% of the principal amount of the
Securities to be redeemed, plus any accrued and unpaid Interest, accrued and
unpaid Contingent Interest, if any, and accrued and unpaid Additional Amounts,
if any, on the Securities redeemed up to, but not including, the Redemption
Date; provided that if the Redemption Date is
on a date that is after an Interest Record Date and on or prior to the
corresponding Interest Payment Date, the Redemption Price shall be 100% of the
principal amount of the Securities redeemed but shall not include accrued and
unpaid Interest, accrued and unpaid Contingent Interest, if any, and Additional
Amounts, if any.  Instead, the Company
shall pay such Interest, Contingent Interest, if any, and Additional Amounts,
if any, on the Interest Payment Date to the Holder of record on the
corresponding Interest Record Date.  If
the Company elects to redeem Securities pursuant to this Section 3.01, it shall
notify the Trustee in writing of such election together with the Redemption
Date, the Conversion Rate, the principal amount of Securities to be redeemed
and the Redemption Price. 
Notwithstanding the foregoing, the Company may not redeem the Securities
if it has failed to pay any Interest, including Contingent Interest, if any,
and Additional Amounts, if any, on the Securities when due and such failure to
pay is continuing.

The Company shall give the notice to the Trustee
provided for in this Section 3.01 by a Company Order, at least 30 days but not
more than 60 days before the Redemption Date (unless a shorter notice shall be
satisfactory to the Trustee).

SECTION 3.02   Selection
of Securities to Be Redeemed.  If
less than all of the Securities are to be redeemed, unless the procedures of
the Depositary provide otherwise, the Trustee shall select the Securities to be
redeemed by lot, on a pro rata basis or by another method the Trustee considers
fair and appropriate (so long as such method is not prohibited by the rules of
any stock exchange or quotation association on which the Securities are then
traded or quoted).  The Trustee may
select for redemption portions of the principal amount of Securities that have
denominations larger than $1,000.

Securities and portions of Securities that the Trustee
selects shall be in principal amounts of $1,000 or an integral multiple of
$1,000.  Provisions of this Indenture
that apply to Securities called for redemption also apply to portions of Securities
called for redemption.  The Trustee shall
notify the Company promptly (but in any case within 7 days of the Company Order
referred to in Section 3.01 unless a shorter notice is acceptable to the
Company) of the Securities or portions of the Securities selected to be
redeemed and, in the case of any Securities selected for partial redemption,
the method it has chosen for the selection of the Security.

Following a notice of redemption, Securities and
portions of Securities are convertible, pursuant to Section 11.01(a)(1), by the
Holder until the close of business on the Business Day prior to the Redemption
Date.  If any Security selected for
partial redemption is

 27
 

 

converted in part before termination of the conversion
right with respect to the portion of the Security so selected, the converted portion
of such Security shall be deemed (so far as may be) to be the portion
selected for redemption.  Securities that
have been converted during a selection of Securities to be redeemed may be
treated by the Trustee as outstanding for the purpose of such selection.

SECTION 3.03   Notice
of Redemption.  At least 30 days but
not more than 60 days before a Redemption Date, the Company shall mail a notice
of redemption (substantially in the form of Exhibit D) by first-class
mail, postage prepaid, to each Holder of Securities to be redeemed.

The notice shall identify the Securities to be
redeemed and shall state (along with any other information the Company wishes
to include):

1.       the Redemption Date;

2.       the Redemption Price;

3.       the Conversion Rate;

4.       the name and address of the Paying Agent and Conversion Agent;

5.       that Securities may be converted at any time before the close
of business on the Business Day prior to the Redemption Date;

6.       that Securities called for redemption and not converted shall
be redeemed on the Redemption Date;

7.       that Holders who want to convert their Securities must satisfy
the requirements set forth in the Securities;

8.       that Securities called for redemption must be surrendered to
the Paying Agent (by effecting book entry transfer of the Securities or
delivering Certificated Securities, together with necessary endorsements, as
the case may be) to collect the Redemption Price;

9.       if fewer than all of the outstanding Securities are to be
redeemed, the certificate numbers, if any, and principal amounts of the
particular Securities to be redeemed;

10.     that, unless the Company defaults in making
payment of such Redemption Price, Interest, Contingent Interest, if any, and
Additional Amounts, if any, the Securities called for redemption shall cease to
accrue from and after the Redemption Date; and

11.     the CUSIP, “ISIN” or other similar
number(s), as the case may be, of the Securities being redeemed.

At the Company’s request, the Trustee shall give the
notice of redemption in the Company’s name and at the Company’s expense,
provided that the Company makes such request at least seven Business Days (or
such shorter period as may be satisfactory to the Trustee) prior

 28
 

 

to the date by which such notice of redemption must be
given to Holders in accordance with this Section 3.03.

SECTION 3.04   Effect
of Notice of Redemption.  Once notice
of redemption is given, Securities called for redemption become due and payable
on the Redemption Date and at the Redemption Price stated in the notice except
for Securities that are converted in accordance with the terms of this
Indenture.  Upon surrender to the Paying
Agent, such Securities shall be paid at the Redemption Price stated in the
notice and from and after the Redemption Date (unless the Company shall default
in the payment of the Redemption Price) such Securities shall cease to
bear Interest, Contingent Interest, if any, and Additional Amounts, if any, and
the rights of the Holders therein shall terminate (other than the right to
receive the Redemption Price).

SECTION 3.05   Deposit
of Redemption Price.  Prior to 10:00
a.m.  (New York City time), on the
Redemption Date, the Company shall deposit with the Paying Agent (or if the
Company or a Subsidiary or an Affiliate of either of them is the Paying Agent,
shall segregate and hold in trust) money sufficient to pay the Redemption
Price of all Securities to be redeemed on that date other than Securities or
portions of Securities called for redemption which on or prior thereto have
been delivered by the Company to the Trustee for cancellation or have been
converted.  Upon written request of the
Company, the Paying Agent shall as promptly as practicable return to the
Company any money not required for that purpose because of conversion of
Securities pursuant to Article 11.  If
such money is then held by the Company or a Subsidiary or an Affiliate of
either in trust and is not required for such purpose it shall be discharged
from such trust.

SECTION 3.06   Securities
Redeemed in Part.  Upon surrender of
a Security that is redeemed in part, the Company shall execute and the Trustee
shall, without charge, authenticate and deliver to the Holder a new Security in
an authorized denomination equal in principal amount to the unredeemed portion
of the Security surrendered.

SECTION 3.07   Repurchase
of Securities by the Company at Option of the Holder.  (a) On each of October 1, 2011, October 1,
2016 and October 1, 2021 (each, a “Repurchase Date”),
each Holder shall have the option to require the Company to repurchase
Securities for which that Holder has properly delivered and not withdrawn a
written Repurchase Notice (as described below) at a repurchase price in
cash equal to 100% of the principal amount of those Securities, plus accrued
and unpaid Interest, accrued and unpaid Contingent Interest, if any, and
accrued and unpaid Additional Amounts, if any, on those Securities, to, but not
including, such Repurchase Date (the “Repurchase Price”);
provided that if the Repurchase Date is on a date that is after an Interest
Record Date and on or prior to the corresponding Interest Payment Date, the
Repurchase Price shall be 100% of the principal amount of the Securities
repurchased but shall not include accrued and unpaid Interest, accrued and
unpaid Contingent Interest, if any, and Additional Amounts, if any.  Instead, the Company shall pay such accrued
and unpaid Interest, Contingent Interest, if any, and Additional Amounts, if
any, on the Interest Payment Date, to the Holder of Record on the corresponding
Interest Record Date.  Not later than 20
Business Days prior to any Repurchase Date, the Company shall mail a Company
Notice (substantially in the form of Exhibit E) by first class mail to the
Trustee and to each Holder (and to beneficial owners if required by applicable
law).  The Company Notice shall include a
form of repurchase Notice to be completed by a Holder and shall state:

 29
 

 

(i)            the Repurchase Price and the
Conversion Rate;

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

(iii)          that Securities as to which a
Repurchase Notice has been given may be converted if they are otherwise
convertible only in accordance with Article 11 hereof and the terms of the
Securities if the applicable Repurchase Notice has been withdrawn in accordance
with the terms of this Indenture;

(iv)          that Securities must be surrendered to
the Paying Agent (by effecting book entry transfer of the Securities or
delivering Certificated Securities, together with necessary endorsements, as
the case may be) to collect payment;

(v)           that the Repurchase Price for any
security as to which a Repurchase Notice has been given and not withdrawn shall
be paid promptly following the later of the Business Day immediately following
the Repurchase Date and the time of surrender of such Security as described in
clause (iv) above;

(vi)          the procedures the Holder must follow
to exercise its right to require the Company to repurchase such Holder’s
Securities under this Section 3.07 and a brief description of that right;

(vii)         briefly, the conversion rights, if any,
that exist at the date of the Company Notice or as a result of the Company
Notice with respect to the Securities;

(viii)        the procedures for withdrawing a
Repurchase Notice;

(ix)           that, unless the Company defaults in
making payment on Securities for which a Repurchase Notice has been submitted,
Interest, Contingent Interest, if any, or Additional Amounts, if any, on such
Securities shall cease to accrue from and after the Repurchase Date;

(x)            the CUSIP, “ISIN” or other similar
number(s), as the case may be, of the Securities;

(xi)           that any Security not properly
tendered or otherwise not accepted for repurchase shall remain outstanding and
continue to accrue interest and Additional Interest, if any;

(xii)          that, unless the Company defaults in
the payment of the amount due on the Repurchase Date, all Securities or
portions thereof accepted for repurchase pursuant to the Repurchase Offer shall
cease to accrue Interest, Contingent Interest, if any, and Additional Amounts,
if any, after the Repurchase Date;

(xiii)         that Holders will be entitled to
withdraw their election if the Company, the Depositary or the Paying Agent, as
the case may be, receives, not later than two business days prior to the
Repurchase Date, a facsimile transmission or letter

 30
 

 

setting forth
the name of the Holder, the principal amount of the Securities delivered for
repurchase, certification numbers if applicable, and a statement that such
Holder is withdrawing his election to have such Securities repurchased in whole
or in part; and

(xiv)        that Holders whose Securities are being
repurchased only in part will be issued new Securities equal in principal
amount to the portion of the Securities tendered (or transferred by book-entry
transfer) that is not to be repurchased, which portion must be equal to $1,000
in principal amount or an integral multiple thereof.

At the Company’s request, the Trustee shall give such
Company Notice to each Holder in the Company’s name and at the Company’s
expense; provided, however, that, in all cases,
the text of such Company Notice shall be prepared by the Company.

(b)           A
Holder may exercise its rights specified in Section 3.07(a) upon delivery
to the Paying Agent of a written notice of repurchase (a “Repurchase Notice”) during
the period beginning at any time from the opening of business on the date that
is 20 Business Days prior to the relevant Repurchase Date until the close of
business on such Repurchase Date, stating:

(i)            if Certificated Securities have been
issued, the certificate number(s) of the Securities which the Holder shall
deliver to be repurchased or, if Certificated Securities have not been issued
for such Security, the Repurchase Notice shall comply with the appropriate
Depositary procedures for book-entry transfer,

(ii)           the portion of the principal amount
of the Security which the Holder shall deliver to be repurchased, which portion
must be in principal amounts of $1,000 or an integral multiple of $1,000, and

(iii)          that such Security shall be
repurchased by the Company as of the Repurchase Date pursuant to the terms and
conditions specified in Section 6 of the Securities and in this Indenture.

The delivery of such Security (together with all
necessary endorsements) to the Paying Agent at any time after delivery of the
Repurchase Notice at the offices of the Paying Agent shall be a condition to
receipt by the Holder of the Repurchase Price therefor; provided,
however, that such Repurchase Price shall be so paid pursuant to
this Section 3.07 only if the Security (together with all necessary
endorsements) so delivered to the Paying Agent shall conform in all
respects to the description thereof in the related Repurchase Notice.

The Company shall repurchase from the Holder thereof,
pursuant to this Section 3.07, a portion of a Security, if the principal amount
of such portion is $1,000 or an integral multiple of $1,000.  Provisions of this Indenture that apply to
the repurchase of all of a Security also apply to the repurchase of such
portion of such Security.

Any repurchase by the Company contemplated pursuant to
the provisions of this Section 3.07 shall be consummated by the delivery of the
consideration to be received by the Holder promptly following the later of the
Business Day immediately following the Repurchase Date and the time of delivery
of the Security (together with all necessary endorsements or notifications of
book-entry transfer).

 31
 

 

Notwithstanding anything herein to the contrary, any
Holder delivering to the Paying Agent the Repurchase Notice contemplated by
this Section 3.07 shall have the right to withdraw such Repurchase Notice by
delivery of a written notice of withdrawal to the Paying Agent in accordance
with Section 3.09 at any time prior to the close of business on the Repurchase
Date.

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

SECTION 3.08   Repurchase
of Securities at Option of the Holder Upon a Fundamental Change.  (a) If a Fundamental Change occurs, 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 not previously called for
redemption by the Company, or any portion thereof that is equal to or an
integral multiple of $1,000 principal amount, at a repurchase price equal to
100% of the principal amount of those Securities, plus accrued and unpaid
Interest, accrued and unpaid Contingent Interest, if any, and accrued and
unpaid Additional Amounts, if any, on those Securities (the “Fundamental Change Repurchase Price”) to,
but not including, the date that is 30 days following the date of the notice of
a Fundamental Change mailed by the Company pursuant to Section
3.08(b) (the “Fundamental Change Repurchase Date”),
subject to satisfaction by or on behalf of the Holder of the requirements set
forth in Section 3.08(c); provided that
if the Fundamental Change Repurchase Date is on a date that is after an
Interest Record Date and on or prior to the corresponding Interest Payment
Date, the Fundamental Change Repurchase Price shall be 100% of the principal
amount of the Securities repurchased but shall not include accrued and unpaid
Interest, accrued and unpaid Contingent Interest, if any, and Additional
Amounts, if any.  Instead, the Company
shall pay such Interest, Contingent Interest, if any, and Additional Amounts,
if any, on the Interest Payment Date to the Holder of Record on the
corresponding Interest Record Date.

(b)           No
later than 15 days after the occurrence of a Fundamental Change, the Company
shall mail a Company Notice of the Fundamental Change (substantially in the
form of Exhibit F) by first class mail to the Trustee and to each Holder
(and to beneficial owners if required by applicable law).  The Company Notice shall include a form of
Fundamental Change Repurchase Notice to be completed by the Holder and shall
state:

(i)            briefly, the events causing a
Fundamental Change and the date of such Fundamental Change;

(ii)           the date by which the Fundamental
Change Repurchase Notice pursuant to this Section 3.08 must be delivered to the
Paying Agent in order for a Holder to exercise the repurchase rights;

(iii)          the Fundamental Change Repurchase
Date;

(iv)          the Fundamental Change Repurchase
Price;

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

 32
 

 

(vi)          the Conversion Rate;

(vii)         that the Securities as to which a
Fundamental Change Repurchase Notice has been given may be converted if they
are otherwise convertible pursuant to Article 11 hereof only if the Fundamental
Change Repurchase Notice has been withdrawn in accordance with the terms of
this Indenture;

(viii)        that the Securities must be surrendered
to the Paying Agent (by effecting book entry transfer of the Securities or
delivering Certificated Securities, together with necessary endorsements, as
the case may be) to collect payment;

(ix)           that the Fundamental Change
Repurchase Price for any Security as to which a Fundamental Change Repurchase
Notice has been duly given and not withdrawn shall be paid promptly following
the later of the Business Day immediately following the Fundamental Change
Repurchase Date and the time of surrender of such Security as described in
clause (viii);

(x)            briefly, the procedures the Holder
must follow to exercise rights under this Section 3.08;

(xi)           briefly, the conversion rights, if
any, that exist on the Securities at the date of the Company Notice and as a
result of such Fundamental Change;

(xii)          the procedures for withdrawing a
Fundamental Change Repurchase Notice;

(xiii)         that, unless the Company defaults in
making payment of such Fundamental Change Repurchase Price on Securities for
which a Fundamental Change Repurchase Notice is submitted, Interest, Contingent
Interest and Additional Amounts, if any, on Securities surrendered for purchase
by the Company shall cease to accrue from and after the Fundamental Change
Repurchase Date; and

(xiv)        the CUSIP, “ISIN” or other similar
number(s), as the case may be, of the Securities.

At the Company’s request, the Trustee shall give such
Company Notice to each Holder in the Company’s name and at the Company’s
expense; provided, however, that, in all cases,
the text of such Company Notice shall be prepared by the Company.

(c)           A
Holder may exercise its rights specified in this Section 3.08 upon delivery of
a written notice of repurchase (a “Fundamental
Change Repurchase Notice”) to the Paying Agent at any time on or
prior to the close of business on the Fundamental Change Repurchase Date,
stating:

(i)            If Certificated Securities have been
issued, the certificate number(s) of the Securities which the Holder shall
deliver to be repurchased or, if Certificated Securities have not been issued,
the Fundamental Change Repurchase Notice shall comply with the appropriate
Depositary procedures for book-entry transfer;

 33
 

 

(ii)           the portion of the principal amount
of the Security which the Holder shall deliver to be repurchased, which portion
must be $1,000 or an integral multiple of $1,000; and

(iii)          that such Security shall be
repurchased pursuant to the terms and conditions specified in Section 6 of the
Securities and in this Indenture.

The delivery of such Security (together with all
necessary endorsements) to the Paying Agent with the Fundamental Change
Repurchase Notice at the offices of the Paying Agent shall be a condition to
the receipt by the Holder of the Fundamental Change Repurchase Price therefor; provided, however, that such Fundamental Change Repurchase
Price shall be so paid pursuant to this Section 3.08 only if the Security
(together with all necessary endorsements) so delivered to the Paying Agent
shall conform in all respects to the description thereof set forth in the
related Fundamental Change Repurchase Notice.

The Company shall repurchase from the Holder thereof,
pursuant to this Section 3.08, a portion of a Security if the principal amount
of such portion is $1,000 or an integral multiple of $1,000.  Provisions of this Indenture that apply to
the repurchase of all of a Security also apply to the repurchase of such
portion of such Security.

Any repurchase by the Company contemplated pursuant to
the provisions of this Section 3.08 shall be consummated by the delivery of the
Fundamental Change Repurchase Price promptly following the later of the
Business Day following the Fundamental Change Repurchase Date or the time of
delivery of such Security (together with all necessary endorsements or
notifications of book-entry transfer).

Notwithstanding the foregoing, Holders shall not have
the right to require the Company to repurchase the Securities upon a Change of
Control described in clause (3) of the definition thereof if more than 90%
of the consideration in the transaction or transactions constituting such
Change of Control consists of shares of common stock traded or to be traded
immediately following such Change of Control on the New York Stock Exchange,
the Nasdaq Global Market or such other U.S. national securities exchange, and,
as a result of such transaction or transactions, the Securities become
convertible into such common stock (and any rights attached thereto).

Notwithstanding anything herein to the contrary, any
Holder delivering to the Paying Agent the Fundamental Change Repurchase Notice
contemplated by this Section 3.08(c) shall have the right to withdraw such
Fundamental Change Repurchase Notice by delivery of a written notice of withdrawal
to the Paying Agent in accordance with Section 3.09 at any time prior to the
close of business on the Fundamental Change Repurchase Date.

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

SECTION 3.09   Effect
of Repurchase Notice or Fundamental Change Repurchase Notice.  (a) Upon receipt by the Paying Agent of the
Repurchase Notice or Fundamental Change Repurchase Notice specified in Section
3.07 or Section 3.08, as applicable, the Holder of the Security in respect of
which such Repurchase Notice or Fundamental Change

 34
 

 

Repurchase Notice, as the
case may be, was given shall (unless such Repurchase Notice or Fundamental
Change Repurchase Notice, as the case may be, is withdrawn as specified in
Section 3.09(b)) thereafter be entitled solely to receive the Repurchase
Price or Fundamental Change Repurchase Price, as the case may be, with respect
to such Security whether or not the Security is, in fact, properly delivered.  Such Repurchase Price or Fundamental Change
Repurchase Price shall be paid to such Holder, subject to receipt of funds
and/or securities by the Paying Agent, promptly following the later of
(x) the Business Day following the Repurchase Date or the Fundamental
Change Repurchase Date, as the case may be, with respect to such Security (provided the conditions in Section 3.07 or Section 3.08, as
applicable, have been satisfied) and (y) the time of delivery of such
Security to the Paying Agent by the Holder thereof in the manner required by
Section 3.07 or Section 3.08, as applicable. 
Securities in respect of which a Repurchase Notice or Fundamental Change
Repurchase Notice has been given by the Holder thereof may not be converted
pursuant to and to the extent permitted by Article 11 hereof on or after the
date of the delivery of such Repurchase Notice or Fundamental Change Repurchase
Notice unless such Repurchase Notice or Fundamental Change Repurchase Notice
has first been validly withdrawn as specified in Section 3.09(b).

(b)           A
Repurchase Notice or Fundamental Change Repurchase Notice may be withdrawn by
means of a written notice of withdrawal delivered to the office of the Paying
Agent in accordance with the Repurchase Notice or Fundamental Change Repurchase
Notice, as the case may be, at any time (i) in the case of the Repurchase
Notice, if received by the Paying Agent prior to the close of business on the
Repurchase Date or (ii) in the case of the Fundamental Change Repurchase
Notice, if received by the Paying Agent prior to the close of business on the
Fundamental Change Repurchase Date, as the case may be, specifying:

12.               the principal amount, if any, of
such Security which remains subject to the original Repurchase Notice or
Fundamental Change Repurchase Notice, as the case may be, and which has been or
shall be delivered for purchase by the Company,

13.               if Certificated Securities have
been issued, the certificate number, if any, of the Security in respect of
which such notice of withdrawal is being submitted (or, if Certificated
Securities have not been issued, that such withdrawal notice shall comply with
the appropriate Depositary procedures), and

14.               the principal amount of the
Security with respect to which such notice of withdrawal is being submitted.

SECTION 3.10   Deposit
of Repurchase Price or Fundamental Change Repurchase Price.  Prior to 11:00 a.m.  (local time in The City of New York) on
the Business Day following the Repurchase Date or the Fundamental Change
Repurchase Date, as the case may be, the Company shall deposit with the Paying
Agent (or, if the Company or a Subsidiary or an Affiliate of either of them is
acting as the Paying Agent, shall segregate and hold in trust as provided in
Section 2.04) an amount of cash in immediately available funds sufficient
to pay the aggregate Repurchase Price or Fundamental Change Repurchase Price,
as the case may be, of all the Securities or portions thereof which are to be
purchased as of the Repurchase Date or Fundamental Change Repurchase Date, as
the case may be.

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SECTION 3.11   Securities
Purchased in Part.  Any Certificated
Security which is to be purchased only in part shall be surrendered at the
office of the Paying Agent (with, if the Company or the Trustee so requires,
due endorsement by, or a written instrument of transfer in form satisfactory to
the Company and the Trustee duly executed by, the Holder thereof or such Holder’s
attorney duly authorized in writing) and the Company shall execute and the
Trustee shall authenticate and deliver to the Holder of such Security, without
service charge, a new Security or Securities, of any authorized denomination as
requested by such Holder in aggregate principal amount equal to, and in
exchange for, the portion of the principal amount of the Security so
surrendered which is not purchased.

SECTION 3.12   Covenant
to Comply with Securities Laws upon Purchase of Securities.  When complying with the provisions of Section
3.07 or Section 3.08 hereof (provided that
such offer or purchase constitutes an “issuer tender offer” for purposes of
Rule 13e-4 (which term, as used herein, includes any successor provision
thereto) under the Exchange Act at the time of such offer or purchase),
and subject to any exemptions available under applicable law, the Company shall
(i) comply with Rule 13e-4 and Rule 14e-1 (or any successor
provision) and any other applicable tender offer rules under the Exchange
Act, (ii) file the related Schedule TO (or any successor schedule, form or
report) under the Exchange Act, and (iii) otherwise comply with all
Federal and state securities laws so as to permit the rights and obligations
under Section 3.07 and Section 3.08 to be exercised in the time and in the
manner specified in Section 3.07 and Section 3.08.

SECTION 3.13   Repayment
to the Company.  The Trustee and the
Paying Agent shall return to the Company any cash that remains unclaimed as
provided in Section 12 of the Securities, together with interest, if any,
thereon (subject to the provisions of Section 8.01(f)), held by them for the
payment of the Repurchase Price or Fundamental Change Repurchase Price, as the
case may be.

ARTICLE 4

SUBORDINATION

SECTION 4.01   Agreement
of Subordination.  The Company
covenants and agrees, and each Holder of Securities issued hereunder by its acceptance
thereof likewise covenants and agrees, that all Securities shall be issued
subject to the provisions of this Article 4; and each Person holding any
Security, whether upon original issue or upon transfer, assignment or exchange
thereof, accepts and agrees to be bound by such provisions.

The payment of the principal, Interest, Contingent
Interest and Additional Amounts, if any, on all Securities (including, but not
limited to, the Redemption Price, the Repurchase Price and the Fundamental
Change Repurchase Price with respect to the Securities subject to redemption or
repurchase in accordance with Article 3 and the payment of any cash upon
conversion in accordance with Article 11) issued hereunder shall, to the
extent and in the manner hereinafter set forth, be (i) subordinated and
subject in right of payment to the prior payment in full in cash or other
payment satisfactory to the holders of Senior Indebtedness of all Senior
Indebtedness, whether outstanding at the date of this Indenture or thereafter
incurred;

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(ii) pari passu in right of payment to all Senior
Subordinated Debt and (iii) senior in right of payment to all Subordinated
Debt.

No provision of this Article 4 shall prevent the
occurrence of any default or Event of Default hereunder.

SECTION 4.02   Payments
to Holders.  No payment shall be made
with respect to the principal of, or Interest, Contingent Interest or
Additional Amounts, if any, on the Securities (including, but not limited to,
the Redemption Price, the Repurchase Price and the Fundamental Change
Repurchase Price with respect to the Securities subject to redemption or
repurchase in accordance with Article 3 and any payment of cash upon conversion
in accordance with Article 11), except payments and distributions made by the
Trustee as permitted by the first or second paragraph of Section 4.08, if:

(a)           any
principal, premium, if any, or interest with respect to Designated Senior
Indebtedness is not paid within any applicable grace period (including at
maturity), or

(b)           any
other default on Designated Senior Indebtedness occurs and the maturity of such
Designated Senior Indebtedness is accelerated in accordance with its terms,
unless, in either case,

(i)            the default has been cured or waived
and such acceleration has been rescinded,

(ii)           such Senior Indebtedness has been
paid in full in cash, or

(iii)          the Company and the Trustee receive
written notice approving such payment from the representatives of each issue of
Designated Senior Indebtedness.

During any default (other than a default described in
clause (a) or (b) above of this Section 4.02) on any Designated
Senior Indebtedness under which the maturity of the Designated Senior
Indebtedness may be accelerated without further notice (except any notice
required to effect the acceleration) or the expiration of any applicable
grace periods, the Company may not make payments on the Securities for a period
(the “Payment Blockage Period”) starting
on the date of receipt by the Company and the Trustee of written notice from
the representative of the holders of such Designated Senior Indebtedness of the
election to effect a Payment Blockage Period and ending 179 days
thereafter.  The Payment Blockage Period
may be terminated before its expiration by written notice to the Trustee and to
the Company from the Person who gave the blockage notice, by repayment in full
in cash of the Designated Senior Indebtedness with respect to which the
blockage notice was given, or because the default giving rise to the Payment
Blockage Period is no longer continuing or has been waived.  Unless the holders of the Designated Senior
Indebtedness have accelerated the maturity of the Designated Senior
Indebtedness, the Company may resume payments on the Securities after the
expiration of the Payment Blockage Period. 
Not more than one blockage notice may be given in any period of 360
consecutive days.  In no event, however,
may the total number of days during which any Payment Blockage Period or
Payment Blockage Periods is in effect exceed 179 days in the aggregate during any
period of 360 consecutive days.  No
default that existed or was continuing on the date of delivery of any payment
blockage notice to the Trustee will be, or can be made,

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the basis for the commencement of a subsequent Payment
Blockage Period whether or not within a period of 360 consecutive days.

Upon any payment by the Company, or distribution of
assets of the Company of any kind or character, whether in cash, property or
securities, to creditors upon any dissolution or winding-up or liquidation or
reorganization of the Company (whether voluntary or involuntary) or in
bankruptcy, insolvency, receivership or similar proceedings, all amounts due or
to become due upon all Senior Indebtedness shall first be paid in full in cash,
or other payments satisfactory to the holders of Senior Indebtedness, before
any payment of cash, property or securities is made on account of the principal
of, Interest, Contingent Interest or Additional Amounts, if any, on, or with
respect to the conversion of, the Securities (except as permitted by Section
4.08); and upon any such dissolution or winding-up or liquidation or
reorganization of the Company or bankruptcy, insolvency, receivership or other
proceeding, any payment by the Company, or distribution of assets of the Company
of any kind or character, whether in cash, property or securities, to which the
Holders of the Securities or the Trustee would be entitled, except for the
provisions of this Article 4, shall (except as aforesaid) be paid by the
Company or by any receiver, trustee in bankruptcy, liquidating trustee, agent
or other Person making such payment or distribution, or by the Holders of the
Securities or by the Trustee under this Indenture if received by them or it,
directly to the holders of Senior Indebtedness (pro rata to such holders on the
basis of the respective amounts of Senior Indebtedness held by such holders, or
as otherwise required by law or a court order) or their representative or
representatives, or to the trustee or trustees under any indenture pursuant to
which any instruments evidencing any Senior Indebtedness may have been issued,
as their respective interests may appear, to the extent necessary to pay all
Senior Indebtedness in full in cash, or other payment satisfactory to the
holders of Senior Indebtedness, after giving effect to any concurrent payment
or distribution to or for the holders of Senior Indebtedness, before any
payment or distribution is made to the Holders of the Securities or to the
Trustee.

The consolidation of the Company with, or the merger
of the Company into, another corporation or the liquidation or dissolution of
the Company following the conveyance, transfer or lease of all or substantially
all its property to another corporation upon the terms and conditions provided
for in Article 6 shall not be deemed a dissolution, winding-up, liquidation or
reorganization for the purposes of this Section 4.02 if such other corporation
shall, as a part of such consolidation, merger, conveyance, transfer or lease,
comply with the conditions stated in Article 6.

If payment of the Securities is accelerated because of
an Event of Default, the Company shall promptly notify holders of Senior
Indebtedness or their Representatives of such acceleration.

In the event that, notwithstanding the foregoing
provisions, any payment or distribution of assets of the Company of any kind or
character, whether in cash, property or securities (including, without
limitation, by way of setoff or otherwise), prohibited by the foregoing, shall
be received by the Trustee or the Holders of the Securities before all Senior
Indebtedness is paid in full, in cash or other payment satisfactory to the
holders of Senior Indebtedness, or provision is made for such payment thereof
in accordance with its terms in cash or other payment satisfactory to the
holders of Senior Indebtedness, such payment or distribution

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shall be held in trust for the benefit of and shall be
paid over or delivered to the holders of Senior Indebtedness or their
Representative or Representatives, as their respective interests may appear, as
calculated by the Company, for application to the payment of all Senior
Indebtedness remaining unpaid to the extent necessary to pay all Senior
Indebtedness in full, in cash or other payment satisfactory to the holders of
Senior Indebtedness or their Representative, after giving effect to any
concurrent payment or distribution to or for the holders of such Senior
Indebtedness.

Nothing in this Section 4.02 shall apply to claims of,
or payments to, the Trustee under or pursuant to Section 7.10 and Section
8.07.  This Section 4.02 shall be subject
to the further provisions of Section 4.08.

SECTION 4.03   Subrogation
of Securities.  Subject to the
payment in full, in cash or other payment satisfactory to the holders of Senior
Indebtedness, of all Senior Indebtedness, the rights of the Holders of the
Securities shall be subrogated to the extent of the payments or distributions
made to the holders of such Senior Indebtedness pursuant to the provisions of
this Article 4 (equally and ratably with the holders of all Senior Subordinated
Indebtedness) to the rights of the holders of Senior Indebtedness to
receive payments or distributions of cash, property or securities of the
Company applicable to the Senior Indebtedness until the principal, interest or
Additional Amounts, if any, on the Securities shall be paid in full in cash or
other payment satisfactory to the holders of Securities; and, for the purposes
of such subrogation, no payments or distributions to the holders of the Senior
Indebtedness of any cash, property or securities to which the Holders of the
Securities or the Trustee would be entitled except for the provisions of this
Article 4, and no payment over pursuant to the provisions of this Article 4, to
or for the benefit of the holders of Senior Indebtedness by Holders of the
Securities or the Trustee, shall, as between the Company, its creditors other
than holders of Senior Indebtedness, and the Holders of the Securities, be
deemed to be a payment by the Company to or on account of the Senior
Indebtedness; and no payments or distributions of cash, property or securities
to or for the benefit of the Holders of the Securities pursuant to the
subrogation provisions of this Article 4, which would otherwise have been paid
to the holders of Senior Indebtedness shall be deemed to be a payment by the
Company to or for the account of the Securities.  It is understood that the provisions of this
Article 4 are and are intended solely for the purposes of defining the relative
rights of the Holders of the Securities, on the one hand, and the holders of
the Senior Indebtedness, on the other hand.

Nothing contained in this Article 4 or elsewhere in
this Indenture or in the Securities is intended to or shall impair, as among
the Company, its creditors other than the holders of Senior Indebtedness, and
the Holders of the Securities, the obligation of the Company, which is absolute
and unconditional, to pay to the Holders of the Securities the principal of,
Interest, Contingent Interest or Additional Amounts, if any, on the Securities
as and when the same shall become due and payable in accordance with their
terms, or is intended to or shall affect the relative rights of the Holders of
the Securities and creditors of the Company other than the holders of the
Senior Indebtedness, nor shall anything herein or therein prevent the Trustee
or the Holder of any Security from exercising all remedies otherwise permitted
by applicable law upon default under this Indenture, subject to the rights, if
any, under this Article 4 of the holders of Senior Indebtedness in respect of
cash, property or securities of the Company received upon the exercise of any
such remedy.

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Upon any payment or distribution of assets of the
Company referred to in this Article 4, the Trustee, subject to the provisions
of Section 8.01, and the Holders of the Securities shall be entitled to rely
upon any order or decree made by any court of competent jurisdiction in which
such bankruptcy, dissolution, winding-up, liquidation or reorganization
proceedings are pending, or a certificate of the receiver, trustee in
bankruptcy, liquidating trustee, agent or other person making such payment or
distribution, delivered to the Trustee or to the Holders of the Securities, for
the purpose of ascertaining the persons entitled to participate in such
distribution, the holders of the Senior Indebtedness and other indebtedness of
the Company, the amount thereof or payable thereon and all other facts
pertinent thereto or to this Article 4.

SECTION 4.04   Authorization to Effect Subordination.  Each Holder of a Security by the Holder’s
acceptance thereof authorizes and directs the Trustee on the Holder’s behalf to
take such action as may be necessary or appropriate to effectuate the
subordination as provided in this Article 4 and appoints the Trustee to act as
the Holder’s attorney-in-fact for any and all such purposes.  If the Trustee does not file a proper proof
of claim or proof of debt in the form required in any proceeding referred to in
Section 4.03 hereof at least 30 days before the expiration of the time to file
such claim, the holders of any Senior Indebtedness or their representatives are
hereby authorized to file an appropriate claim for and on behalf of the Holders
of the Securities.

SECTION 4.05   Notice
to Trustee.  The Company shall give
prompt written notice in the form of an Officer’s Certificate to a Responsible
Officer of the Trustee and to any Paying Agent of any fact known to the Company
which would prohibit the making of any payment of monies to or by the Trustee
or any Paying Agent in respect of the Securities pursuant to the provisions of
this Article 4.  Notwithstanding the
provisions of this Article 4 or any other provision of this Indenture, the
Trustee shall not be charged with knowledge of the existence of any facts which
would prohibit the making of any payment of monies to or by the Trustee in
respect of the Securities pursuant to the provisions of this Article 4, unless
and until a Responsible Officer of the Trustee shall have received written
notice thereof at the Corporate Trust Office from the Company (in the form of
an Officer’s Certificate) or a Representative or a Holder or Holders of
Senior Indebtedness or from any trustee thereof; and before the receipt of any
such written notice, the Trustee, subject to the provisions of Section 8.01,
shall be entitled in all respects to assume that no such facts exist; provided that, if on a date not less than two Business Days
prior to the date upon which by the terms hereof any such monies may become
payable for any purpose (including, without limitation, the payment of the
principal of, Interest, Contingent Interest or Additional Amount, if any, on
any Security) the Trustee shall not have received, with respect to such
monies, the notice provided for in this Section 4.05, then, anything herein
contained to the contrary notwithstanding, the Trustee shall have full power
and authority to receive such monies and to apply the same to the purpose for
which they were received, and shall not be affected by any notice to the
contrary which may be received by it on or after such prior date.

The Trustee, subject to the provisions of Section
8.01, shall be entitled to rely on the delivery to it of a written notice by a
Representative or a Person representing himself to be a holder of Senior
Indebtedness (or a trustee on behalf of such holder) to establish that
such notice has been given by a Representative or a holder of Senior
Indebtedness.  In the event that the
Trustee determines in good faith that further evidence is required with respect
to the right of any

 40
 

 

Person as a holder of Senior Indebtedness to
participate in any payment or distribution pursuant to this Article 4, the
Trustee may request such Person to furnish evidence to the reasonable satisfaction
of the Trustee as to the amount of Senior Indebtedness held by such Person, the
extent to which such Person is entitled to participate in such payment or
distribution and any other facts pertinent to the rights of such Person under
this Article 4, and if such evidence is not furnished the Trustee may defer any
payment to such Person pending judicial determination as to the right of such
Person to receive such payment.

SECTION 4.06   Trustee’s
Relation to Senior Indebtedness.  The
Trustee in its individual capacity shall be entitled to all the rights set
forth in this Article 4 in respect of any Senior Indebtedness at any time held
by it, to the same extent as any other holder of Senior Indebtedness, and
nothing in Section 8.11 or elsewhere in this Indenture shall deprive the
Trustee of any of its rights as such holder.

With respect to the holders of Senior Indebtedness,
the Trustee undertakes to perform or to observe only such of its covenants and
obligations as are specifically set forth in this Article 4, and no implied
covenants or obligations with respect to the holders of Senior Indebtedness
shall be read into this Indenture against the Trustee.  The Trustee shall not be deemed to owe any
fiduciary duty to the holders of Senior Indebtedness and, subject to the
provisions of Section 8.01, the Trustee shall not be liable to any holder of
Senior Indebtedness if it shall pay over or deliver to Holders of Securities,
the Company or any other Person money or assets to which any holder of Senior
Indebtedness shall be entitled by virtue of this Article 4 or otherwise.

SECTION 4.07   No
Impairment of Subordination.  No
right of any present or future holder of any Senior Indebtedness to enforce
subordination as herein provided shall at any time in any way be prejudiced or
impaired by any act or failure to act on the part of the Company or by any act
or failure to act, in good faith, by any such holder, or by any noncompliance
by the Company with the terms, provisions and covenants of this Indenture, regardless
of any knowledge thereof which any such holder may have or otherwise be charged
with.

SECTION 4.08   Certain
Payments Not Prohibited.  (a) For the
purposes of this Article 4 only, the issuance and delivery of junior securities
upon dissolution, winding-up, liquidation, insolvency or reorganization and the
issuance of Common Stock, other securities into which the Notes are then
convertible or junior securities upon conversion of Securities in accordance
with Article 11 shall not be deemed to constitute a payment or distribution on
account of the principal of such Security or interest subject to blockage
pursuant to Section 4.02.  For the
purposes of this Section 4.08, the term “Junior Securities”
means (x) shares of any Capital Stock of any class of the Company, or
(y) securities of the Company which are subordinated in right of payment
to all Senior Indebtedness that may be outstanding at the time of issuance or
delivery of such securities to substantially the same extent as, or to a
greater extent than, the Securities are so subordinated as provided in this
Article.  Nothing contained in this
Article 4 or elsewhere in this Indenture or in the Securities is intended to or
shall impair, as among the Company, its creditors other than holders of Senior
Indebtedness and the Holders, the right, which is absolute and unconditional,
of the Holder of any Security to convert such Security in accordance with
Article 11.

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(b)           Notwithstanding
anything in this Article 4 to the contrary, nothing shall prevent any payment
by the Trustee to the Holders of monies deposited with it pursuant to Article 9
prior to commencement of a Payment Blockage Period or commencement of
proceedings for dissolution, winding-up, liquidation or reorganization, and any
such payment shall not be subject to the provisions of this Article 4.

SECTION 4.09   Article
Applicable to Paying Agents.  If at
any time any Paying Agent other than the Trustee shall have been appointed by
the Company and be then acting hereunder, the term “Trustee” as used in this
Article shall (unless the context otherwise requires) be construed as
extending to and including such Paying Agent within its meaning as fully for
all intents and purposes as if such Paying Agent were named in this Article in
addition to or in place of the Trustee; provided, however,
that the first paragraph of Section 4.05 shall not apply to the Company or any
Affiliate of the Company if it or such Affiliate acts as Paying Agent.

SECTION 4.10   Senior
Indebtedness Entitled to Rely.  The
holders of Senior Indebtedness (including, without limitation, Designated
Senior Indebtedness) shall have the right to rely upon this Article 4, and
no amendment or modification of the provisions contained herein shall diminish
the rights of such holders unless such holders shall have agreed in writing
thereto.

SECTION 4.11   All
Indenture Provisions Subject to Article Four.  Notwithstanding anything herein contained to
the contrary, all the provisions of this Indenture shall be subject to the
provisions of this Article Four, so far as the same may be applicable
thereto.  The provisions of this Article
Four shall not apply to amounts due the Trustee under Section 8.07.

SECTION 4.12   Trustee’s
Compensation Not Prejudiced.  Nothing
in this Article Four shall apply to claims of, or payments to, the Trustee
pursuant to Section 8.07.

SECTION 4.13   Rights
of Trustee as Holder of Senior Indebtedness; Preservation of Trustee’s Rights.  The Trustee or any Authenticating Agent in
its individual capacity shall be entitled to all the rights set forth in this
Article with respect to any Senior Indebtedness which may at any time be held
by it, to the same extent as any other holder of Senior Indebtedness, and
nothing in this Indenture shall deprive the Trustee or any Authenticating Agent
of any of its rights as such holder.

ARTICLE 5

COVENANTS

SECTION 5.01   Payment
of Securities.  The Company shall
make all payments in respect of the Securities on the dates and in the manner
provided in the Securities or pursuant to this Indenture.  Any amounts of cash in immediately available
funds or shares of Common Stock to be given to the Trustee or Paying Agent
shall be deposited with the Trustee or Paying Agent by 11:00 a.m., New York
City time, by the Company.  The principal
amount of, and Interest, Contingent Interest, if any, and Additional Amounts,
if any, on the Securities, and the Redemption Price, Repurchase Price and the
Fundamental Change Repurchase Price shall be

 42
 

 

considered paid on the
applicable date due if on such date (which, in the case of a Repurchase Price
or a Fundamental Change Repurchase Price, shall be on the Business Day
immediately following the applicable Repurchase Date or Fundamental Change
Repurchase Date, as the case may be) the Trustee or the Paying Agent
holds, in accordance with this Indenture, cash or securities, if permitted
hereunder, sufficient to pay all such amounts then due.

SECTION 5.02   SEC
and Other Reports.  The Company shall
deliver to the Trustee, within 15 days after it files such annual and quarterly
reports, information, documents and other reports with the SEC, copies of its
annual report and of the information, documents and other reports (or copies of
such portions of any of the foregoing as the SEC may by rules and regulations
prescribe) which the Company is required to file with the SEC pursuant to
Section 13 or 15(d) of the Exchange Act. 
The Company shall also comply with the other provisions of TIA Section
314(a).  Delivery of such reports,
information and documents to the Trustee is for informational purposes only and
the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained
therein, including the Company’s compliance with any of its covenants hereunder
(as to which the Trustee is entitled to rely conclusively on Officer’s
Certificates).

SECTION 5.03   Compliance
Certificate.  The Company shall
deliver to the Trustee within 120 days after the end of each fiscal year of the
Company (beginning with the fiscal year ending March 31, 2007) an Officer’s
Certificate, stating whether or not to the knowledge of the signer thereof, the
Company is in default in the performance and observance of any of the terms,
provisions and conditions of this Indenture (without regard to any period of
grace or requirement of notice provided hereunder) and if the Company
shall be in default, specifying all such defaults and the nature and status
thereof of which such Officer may have knowledge and otherwise comply with
Section 314(a)(4) of the TIA.

The Company shall, so long as any of the Securities
are outstanding, deliver to the Trustee, within 10 days of any executive
officer of the Company becoming aware of any Default or Event of Default in
respect of the performance or observance of any covenant or agreement contained
in this Indenture or the Securities, an Officers’ Certificate specifying such
Default or Event of Default and what action the Company is taking or proposes
to take with respect thereto.

SECTION 5.04   Further
Instruments and Acts.  The Company
shall execute and deliver such further instruments and do such further acts as
may be reasonably necessary or proper to carry out more effectively the
purposes of this Indenture.

SECTION 5.05   Maintenance
of Office or Agency.  The Company
shall maintain in the United States of America, an office or agency of the
Trustee, Registrar, Paying Agent and Conversion Agent where Securities may be
presented or surrendered for payment, where Securities may be surrendered for
registration of transfer, exchange, purchase, redemption or conversion and
where notices and demands to or upon the Company in respect of the Securities
and this Indenture may be served.  The
Corporate Trust Office of the Trustee, as listed in Section 13.02, shall initially
be such office or agency for all of the aforesaid purposes.  The Company shall give prompt written notice
to the Trustee of the location, and of any change in the location, of any such
office or agency (other than a change in the location of the office of the
Trustee).  If at any time the Company
shall fail to maintain any such required office or agency or shall fail to

 43

 

furnish the Trustee with
the address thereof, such presentations, surrenders, notices and demands may be
made or served at the address of the Trustee set forth in Section 13.02.

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

SECTION 5.06   Delivery
of Certain Information.  At any time
when the Company is not subject to Section 13 or 15(d) of the Exchange
Act, upon the request of a Holder or any beneficial owner of Securities or
Holder or beneficial owner of shares of Common Stock issued upon conversion
thereof, the Company shall promptly furnish or cause to be furnished Rule 144A
Information (as defined below) to such Holder or any beneficial owner of
Securities or Holder or beneficial owner of shares of Common Stock issued upon
conversion thereof, the Company shall promptly furnish or cause to be furnished
Rule 144A Information (as defined below) to such Holder or any beneficial
owner of Securities or Holder or beneficial owner of shares of Common Stock, or
to a prospective purchaser of any such security designated by any such Holder,
as the case may be, to the extent required to permit compliance by such Holder
or beneficial owner with Rule 144A under the Securities Act in connection with
the resale of any such security.  “Rule 144A Information” shall be such
information as is specified pursuant to Rule 144A(d)(4) under the
Securities Act.  Whether a person is a
beneficial owner shall be determined by the Company to the Company’s reasonable
satisfaction.

SECTION 5.07   Additional
Amounts Notice.  In the event that
the Company is required to pay Additional Amounts to Holders of Securities
pursuant to the Registration Rights Agreement, the Company shall provide
written notice (“Additional Amounts Notice”) to
the Trustee of its obligation to pay Additional Amounts prior to the required
payment date for the Additional Amounts, and the Additional Amounts Notice
shall set forth the amount of Additional Amounts to be paid by the Company on
such payment date.  The Trustee shall not
at any time be under any duty to any Holder of Securities to determine the
Additional Amounts, or with respect to the nature, extent or calculation of the
amount of Additional Amounts when made, or with respect to the method employed
in such calculation of the Additional Amounts.

SECTION 5.08   Anti-Layering.  The Company may not incur any Indebtedness
that is subordinate in right of payment to Senior Indebtedness of the Company
unless such Indebtedness is pari passu with, or subordinated in right of
payment to, the Notes.  This does not
apply to distinctions between categories of Indebtedness that exist by reason
of any liens or guarantees securing or in favor of some but not all of such
Indebtedness.

ARTICLE 6

SUCCESSOR PERSON

SECTION 6.01   When
Company May Merge or Transfer Assets. 
The Company shall not consolidate with or merge with or into any other
Person or convey, transfer, sell or lease all or substantially all of its
properties and assets to any Person, unless:

 44
 

 

(a)           the
resulting, surviving or transferee person (the “Successor
Person”) will be a corporation organized and existing under
the laws of the United States of America, any State thereof or the District of
Columbia and the successor Person (if not the Company) will expressly
assume, by indenture supplemental hereto, executed and delivered to the
Trustee, in form reasonably satisfactory to the Trustee, all of the obligations
of the Company or such successor Person under the Securities and this
Indenture;

(b)           immediately after giving effect to such transaction (and
treating any indebtedness which becomes an obligation of the successor Person
as a result of such transaction as having been incurred by such successor
Person as the time of such transaction), no Default shall have occurred and be
continuing; and

(c)           the Company shall have delivered to the Trustee an Officer’s
Certificate and an Opinion of Counsel, each stating that such consolidation,
merger, conveyance, transfer, sale or lease and, if a supplemental indenture is
required in connection with such transaction, such supplemental indenture
comply with this Article 6 and that all conditions precedent herein provided
relating to such transaction have been satisfied.

The successor Person formed by such consolidation or
into which the Company is merged or the successor Person to which such
conveyance, transfer, sale, lease or other disposition is made shall succeed
to, and be substituted for, and may exercise every right and power of, the
Company under this Indenture with the same effect as if such successor had been
named as the Company herein; and thereafter, except in the case of a lease and
obligations the Company may have under a supplemental indenture, the Company
shall be discharged from all obligations and covenants under this Indenture and
the Securities.  Subject to Section
10.06, the Company, the Trustee and the successor Person shall enter into a
supplemental indenture to evidence the succession and substitution of such
successor Person and such discharge and release of the Company.

ARTICLE 7

DEFAULTS AND REMEDIES

SECTION 7.01   Events
of Default.  So long as any
Securities are outstanding, each of the following shall be an “Event Of Default”:

(a)           the Company defaults in the payment of the principal
amount of any Security when due at maturity, redemption, upon repurchase or
otherwise, whether or not such payment is prohibited by reason of the
subordination provisions in Article 4;

(b)           the Company defaults in the payment of any Interest,
Contingent Interest or Additional Amounts, if any, when due and payable,
whether or not such payment is prohibited by reason of the subordination
provisions in Article 4, and continuance of such default for a period of 30 days;

(c)           the Company defaults in its obligation to provide timely
notice of a Fundamental Change to the Trustee and each Holder as required under
Section 3.08(b);

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(d)           following the exercise by the Holder of the right to
convert a Security in accordance with Article 11 hereof, the Company fails to
comply with its obligations to deliver the cash or shares of Common Stock, if
any, required to be delivered as part of the applicable Conversion Settlement
Distribution on the applicable Conversion Settlement Date and such failure
continues for a period of 5 days or more;

(e)           the Company fails to comply with the obligation to
repurchase Notes pursuant to Section 3.07 or Section 3.08, whether or not such
payment is prohibited by reason of the subordination provisions in Article 13;

(f)            the Company defaults in its obligation to redeem any
Security, or any portion thereof, called for redemption by the Company pursuant
to and in accordance with Section 3.01 hereof;

(g)           the Company fails to perform or observe any covenant or
warranty in the Securities or this Indenture (other than those referred to in
clause (a) through clause (f) above) and such failure continues
for 60 days after receipt by the Company of a Notice of Default;

(h)           the failure by the Company or any Subsidiary to pay
Indebtedness within any applicable grace period after final maturity or the
Indebtedness is accelerated by the holders of the Indebtedness because of a
default, the total amount of such Indebtedness unpaid or accelerated exceeds
$5.0 million, and such default remains uncured or such acceleration is not
rescinded for 10 days after the date on which Notice of Default has been
provided;

(i)            the entry by a court having jurisdiction in the premise
of (i) a decree or order for relief in respect of the Company or any of
Subsidiary, in an involuntary case or proceeding under any applicable
bankruptcy, insolvency, reorganization or other similar law (any “Bankruptcy Law”)or
(ii) a decree or order adjudging the Company or any Subsidiary, a bankrupt
or insolvent, or approving as properly filed a petition seeking reorganization,
arrangement, adjustment or composition of or in respect of the Company or any
Subsidiary, under any applicable Bankruptcy Law, or appointing a custodian,
receiver, liquidator, assignee, trustee, sequestrator or other similar official
of the Company or of any substantial part of its property, or ordering the
winding up or liquidation of its affairs, and the continuance of any such
decree or order for relief or any such other decree or order described in
clause (i) or (ii) above is unstayed and in effect for a period of 60
consecutive days; and

(j)            (i) the commencement by the Company or any
Significant Subsidiary (or any Subsidiary that, together, would constitute a
Significant Subsidiary), of a voluntary case or proceeding under any applicable
Bankruptcy Law or of any other case or proceeding to be adjudicated a bankrupt
or insolvent, or (ii) the consent by the Company, to the entry of a decree
or order for relief in respect of the Company or any Significant Subsidiary (or
any Subsidiary that, together, would constitute a Significant Subsidiary), in
an involuntary case or proceeding under any applicable Bankruptcy Law or to the
commencement of any bankruptcy or insolvency case or proceeding against the
Company, or (iii) the filing by the Company, of a petition or answer or
consent seeking reorganization or relief under any applicable Bankruptcy Law,
or (iv) the consent by the Company to the filing of such petition or to
the appointment of or the

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taking possession by a custodian, receiver,
liquidator, assignee, trustee, sequestrator or other similar official of the
Company or of any substantial part of its property, or (v) the making by
the Company or any Significant Subsidiary (or any Subsidiary that, together,
would constitute a Significant Subsidiary), of a general assignment for the
benefit of creditors.

The foregoing shall constitute Events of Default
whatever the reason for any such Event of Default and whether it is voluntary
or involuntary or is 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.

For the avoidance of doubt, clauses (g) and
(h) above shall not constitute an Event of Default until the Trustee
notifies the Company, or the Holders of at least 25% in aggregate principal
amount of the Securities at the time outstanding notify the Company and the
Trustee, of such default and the Company does not cure such default (and such
default is not waived) within the time specified in clauses (g) and
(h) above after actual receipt of such notice.  Any such notice must specify the default,
demand that it be remedied and state that such notice is a “Notice of Default.”

SECTION 7.02   Acceleration.  If an Event of Default (other than an Event
of Default specified in Section 7.01(i) or Section 7.01(j) with
respect to the Company) occurs and is continuing (the Event of Default not
having been cured or waived), the Trustee by notice to the Company, or the
Holders of at least 25% in aggregate principal amount of the Securities at the
time outstanding by notice to the Company and the Trustee, may declare the
principal amount of the Securities and any accrued and unpaid Interest, any accrued
and unpaid Contingent Interest, if any, and accrued and unpaid Additional
Amounts, if any, on all the Securities to be immediately due and payable.  Upon such a declaration, such accelerated
amount shall be due and payable immediately. 
If an Event of Default specified in Section 7.01(i) or Section
7.01(j) with respect to the Company occurs and is continuing, the
principal amount of the Securities and any accrued and unpaid Interest, any
accrued and unpaid Contingent Interest, if any, and accrued and unpaid
Additional Amounts, if any, on all the Securities shall become and be
immediately due and payable without any declaration or other act on the part of
the Trustee or any Securityholders.  The
Holders of a majority in aggregate principal amount of the Securities at the
time outstanding, by notice to the Trustee (and without notice to any other
Securityholder) may rescind an acceleration and its consequences, and
thereby waive the Events of Default giving rise to such acceleration, if the
rescission would not conflict with any judgment or decree and if all existing
Events of Default have been cured or waived except (1) an Event of Default
described in clauses (a), (b), (c), and (d) of Section 7.01 or (2) an
Event of Default in respect of a provision that under Section 10.02 cannot be
amended without the consent of each Securityholder affected.  No such rescission shall affect any
subsequent Event of Default or impair any right consequent thereto.

SECTION 7.03   Other
Remedies.  If an Event of Default
occurs and is continuing, the Trustee may pursue any available remedy to
collect the payment of the principal amount of the Securities and any accrued
and unpaid Interest, any accrued and unpaid Contingent Interest, if any, and
accrued and unpaid Additional Amounts, if any, on the Securities or to enforce
the performance of any provision of the Securities or this Indenture.

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The Trustee may maintain a proceeding even if the
Trustee does not possess any of the Securities or does not produce any of the
Securities in the proceeding.  A delay or
omission by the Trustee or any Securityholder in exercising any right or remedy
accruing upon an Event of Default shall not impair the right or remedy or
constitute a waiver of, or acquiescence in, the Event of Default.  No remedy is exclusive of any other
remedy.  All available remedies are
cumulative.

SECTION 7.04   Waiver
of Past Defaults.  The Holders of a
majority in aggregate principal amount of the Securities at the time
outstanding, by notice to the Trustee (and without notice to any other
Securityholder), may waive any existing or past Default and its consequences
except (1) an Event of Default described in clauses (a), (b), (c), and
(d) of Section 7.01 or (2) an Event of Default in respect of a
provision that under Section 10.02 cannot be amended without the consent of
each Securityholder affected.  When a
Default is waived, it is deemed cured, but no such waiver shall extend to any
subsequent or other Default or impair any consequent right.  This Section 7.04 shall be in lieu of Section
316(a)1(B) of the TIA and such Section 316(a)1(B) is hereby expressly
excluded from this Indenture, as permitted by the TIA.

SECTION 7.05   Control
by Majority.  The Holders of a
majority in aggregate principal amount of the Securities at the time
outstanding may direct the time, method and place of conducting any proceeding
for any remedy available to the Trustee or of exercising any trust or power
conferred on the Trustee.  However, the
Trustee may refuse to follow any direction that conflicts with law or this
Indenture or that the Trustee determines is unduly prejudicial to the rights of
other Securityholders or would involve the Trustee in personal liability; provided that the Trustee may take any other action deemed
proper by the Trustee which is not inconsistent with such direction or this
Agreement.  Prior to taking any action
under this Indenture, the Trustee may require indemnity satisfactory to it in
its sole discretion against all losses and expenses caused by taking or not
taking such action.  This Section 7.05
shall be in lieu of Section 316(a)1(A) of the TIA and such Section
316(a)1(A) is hereby expressly excluded from this Indenture, as permitted
by the TIA.

SECTION 7.06   Limitation
on Suits.  A Securityholder may not
pursue any remedy with respect to this Indenture or the Securities, except in
case of a Default due to the non-payment of the principal amount of the
Securities, any accrued and unpaid Interest, any accrued and unpaid Contingent
Interest, if any, or any accrued and unpaid Additional Amounts, if any, unless:

(1)           the Holder gives to the Trustee
written notice stating that a Default is continuing;

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

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

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

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(5)           the Holders of a majority in
aggregate principal amount of the Securities at the time outstanding do not
give the Trustee a direction inconsistent with the request during such 60-day
period.

A Securityholder may not use this Indenture to
prejudice the rights of any other Securityholder or to obtain a preference or
priority over any other Securityholder (it being understood that the Trustee
does not have an affirmative duty to ascertain whether or not such actions or
forebearance are unduly prejudiced to such Holders).

SECTION 7.07   Rights
of Holders to Receive Payment. 
Notwithstanding any other provision of this Indenture, the right of any
Holder to receive payment of the principal amount of the Securities and any
accrued and unpaid Interest, any accrued and unpaid Contingent Interest, if
any, and accrued and unpaid Additional Amounts, if any, in respect of the
Securities held by such Holder, on or after the respective due dates expressed
in the Securities or any Redemption Date, Repurchase Date or Fundamental Change
Repurchase Date, and to convert the Securities in accordance with Article 11,
or to bring suit for the enforcement of any such payment or the right to
convert on or after such respective dates, shall not be impaired or affected
adversely without the consent of such Holder.

SECTION 7.08   Collection
Suit by Trustee.  If an Event of
Default described in Section 7.01 clauses (a) through (f) (other than
(b)) occurs and is continuing, the Trustee may recover judgment in its own
name and as trustee of an express trust against the Company for the whole
amount owing with respect to the Securities and the amounts provided for in
Section 8.07.

SECTION 7.09   Trustee
May File Proofs of Claim.  In case of
the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to the Company or any other obligor upon the Securities or
the property of the Company or of such other obligor or their creditors, the
Trustee (irrespective of whether the principal amount of the Securities and any
accrued and unpaid Interest, accrued and unpaid Contingent Interest, if any,
and accrued and unpaid Additional Amounts, if any, in respect of the Securities
shall then be due and payable as therein expressed or by declaration or
otherwise and irrespective of whether the Trustee shall have made any demand on
the Company for the payment of any such amount) shall be entitled and empowered,
by intervention in such proceeding or otherwise:

(a)           to file and prove a claim for the whole principal amount
of the Securities and any accrued and unpaid Interest, any accrued and unpaid
Contingent Interest, if any, and accrued and unpaid Additional Amounts, if any,
and to file such other papers or documents as may be necessary or advisable in
order to have the claims of the Trustee (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel or any other amounts due the Trustee under Section 8.07) and
of the Holders allowed in such judicial proceeding, and

(b)           to collect and receive any moneys or other property
payable or deliverable on any such claims and to distribute the same; and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or similar
official in any such judicial proceeding is hereby authorized by each Holder to
make such payments to the Trustee and, in the event that the Trustee shall
consent

 49
 

 

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.

The Company agrees not to object to the Trustee
participating as a member of any official committee of creditors of the Company
as it deems necessary or advisable.

SECTION 7.10   Priorities.  Any money collected by the Trustee pursuant
to this Article 7, and, after an Event of Default, any money or other property
distributable in respect of the Company’s obligations under this Indenture,
shall be paid out in the following order:

FIRST:  to the Trustee (including any predecessor
Trustee), its agents and attorneys for amounts due under Section 8.07;

SECOND:  to Securityholders for amounts due and unpaid
on the Securities for the principal amount of the Securities and any accrued
and unpaid Interest, any accrued and unpaid Contingent Interest, if any, and
accrued and unpaid Additional Amounts, if any, as the case may be, ratably,
without preference or priority of any kind, according to such amounts due and payable
on the Securities; and

THIRD:  the balance, if any, to the Company.

The Trustee may fix a record date and payment date for
any payment to Securityholders pursuant to this Section 7.10.  At least 15 days before such record date, the
Trustee shall mail to each Securityholder and the Company a notice that states
the record date, the payment date and the amount to be paid.

SECTION 7.11   Undertaking
for Costs.  In any suit for the
enforcement of any right or remedy under this Indenture or in any suit against
the Trustee for any action taken or omitted by it as Trustee, a court in its
discretion may require the filing by any party litigant (other than the
Trustee) in the suit of an undertaking to pay the costs of the suit, and
the court in its discretion may assess reasonable costs, including reasonable
attorneys’ fees and expenses, against any party litigant in the suit, having
due regard to the merits and good faith of the claims or defenses made by the
party litigant.  This Section 7.11 does
not apply to a suit by the Trustee, a suit by a Holder pursuant to Section 7.07
or a suit by Holders of more than 10% in aggregate principal amount of the
Securities at the time outstanding.  This
Section 7.11 shall be in lieu of Section 315(e) of the TIA and such Section
315(e) is hereby expressly excluded from this Indenture, as permitted by
the TIA.

SECTION 7.12   Waiver
of Stay, Extension or Usury Laws. 
The Company covenants (to the extent that it may lawfully do
so) that it shall not at any time insist upon, or plead, or in any manner
whatsoever claim or take the benefit or advantage of, any stay or

 50
 

 

extension law or any
usury or other law wherever enacted, now or at any time hereafter in force,
which would prohibit or forgive the Company from paying all or any portion of
the principal amount of the Securities and any accrued and unpaid Interest, any
accrued and unpaid Contingent Interest, if any, and accrued and unpaid
Additional Amounts, if any, on Securities, as contemplated herein, or which may
affect the covenants or the performance of this Indenture; and the Company (to
the extent that it may lawfully do so) hereby expressly waives all benefit
or advantage of any such law, and covenants that it shall not hinder, delay or
impede the execution of any power herein granted to the Trustee, but shall
suffer and permit the execution of every such power as though no such law had
been enacted.

ARTICLE 8

TRUSTEE

SECTION 8.01   Duties
of Trustee.

(a)           If 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
such Person’s own affairs.

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

(1)           the
Trustee need perform only those duties that are specifically set forth in this
Indenture and no others, and no implied duties 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, but in the case of any such certificates
or opinions which by any provision hereof are specifically required to be
furnished to the Trustee, the Trustee shall be under a duty to examine such
certificates and opinions to determine whether or not they conform to the
requirements of this Indenture, but need not confirm or investigate the
accuracy of mathematical calculations or other facts stated therein.  This Section 8.01(b) shall be in lieu of
Section 315(a) of the TIA and such Section 315(a) is hereby expressly
excluded from this Indenture, as permitted by the TIA.

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

(1)           this
Section 8.01(c) does not limit the effect of Section 8.01(b) and
8.01(g);

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

 51
 

 

(3)           the
Trustee shall not be liable with respect to any action it takes or omits to
take in good faith in accordance with a direction received by it pursuant to
Section 7.05.

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

(d)           Every provision of this Indenture that in any way relates
to the Trustee is subject to this Section 8.01.

(e)           The Trustee may refuse to perform any duty or exercise any
right or power unless it receives indemnity satisfactory to it against any
loss, liability or expense.

(f)            Money held by the Trustee in trust hereunder need not be
segregated from other funds except to the extent required by law.  The Trustee (acting in any capacity
hereunder) shall be under no liability for interest on any money received
by it hereunder unless otherwise agreed in writing with the Company.

(g)           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.

SECTION 8.02   Rights
of Trustee.  Subject to the
provisions of Section 8.01:

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

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

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

(d)           the Trustee shall not be liable for any action taken,
suffered, or omitted to be taken by it in good faith which it believes to be
authorized or within its rights or powers conferred under this Indenture;

 52
 

 

(e)           the Trustee may consult with counsel selected by it and
any advice or Opinion of Counsel shall be full and complete authorization and
protection in respect of any action taken or suffered or omitted by it
hereunder in good faith and in accordance with such advice or Opinion of
Counsel;

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

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

(h)           the Trustee shall not be bound to make any investigation
into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, other evidence of indebtedness or other paper or document, but
the Trustee, in its discretion, may make such further inquiry or investigation
into such facts or matters as it may see fit, and, if the Trustee shall
determine to make such further inquiry or investigation, it shall be entitled
to, during regular business hours, 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;

(i)            the Trustee shall not be deemed to have notice of any
Default or Event of Default unless a Responsible Officer of the Trustee has
actual knowledge thereof or unless written notice of any event which is in fact
such a Default is received by the Trustee at the Corporate Trust Office of the
Trustee, and such notice references the Securities and this Indenture;

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

(k)           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; 

(l)            the permissive rights of the Trustee to take certain
actions under this Indenture shall not be construed as a duty unless so
specified herein; and

(m)          in no event shall the Trustee be responsible or liable for
special, indirect, or consequential loss or damage of any kind whatsoever (including,
but not limited to, loss of

 53
 

 

profit) irrespective of whether the Trustee
has been advised of the likelihood of such loss or damage and regardless of the
form of action.

SECTION 8.03   Individual
Rights of Trustee.  The Trustee in
its individual or any other capacity may become the owner or pledgee of
Securities and may otherwise deal with the Company or its Affiliates with the
same rights it would have if it were not Trustee.  Any Paying Agent, Registrar, Conversion Agent
or co-registrar may do the same with like rights.  However, the Trustee must comply with Section
8.10 and Section 8.11.

SECTION 8.04   Trustee’s
Disclaimer.  The Trustee makes no
representation as to, and shall have no responsibility for, the validity or
adequacy of this Indenture or the Securities, it shall not be accountable for
the Company’s use or application by the Company of the Securities or of the
proceeds from the Securities, it shall not be responsible for the correctness
of any statement in the registration statement for the Securities under the
Securities Act or in any offering document for the Securities, the Indenture or
the Securities (other than its certificate of authentication), or the
determination as to which beneficial owners are entitled to receive any notices
hereunder.

SECTION 8.05   Notice
of Defaults.  If a Default or Event
of Default occurs and if it is known to the Trustee, the Trustee shall give to
each Securityholder notice of the Default or Event of Default within 90 days
after it is known to the Trustee, unless such Default or Event of Default shall
have been cured or waived before the giving of such notice.  Notwithstanding the preceding sentence,
except in the case of a Default or Event of Default described in clauses
(a) and (b) of Section 7.01, the Trustee may withhold the notice if
and so long as a committee of its Responsible Officers in good faith determines
that withholding the notice is in the interest of the Securityholders.  The preceding sentence shall be in lieu of
the proviso to Section 315(b) of the TIA and such proviso is hereby
expressly excluded from this Indenture, as permitted by the TIA.  The Trustee shall not be deemed to have
knowledge of a Default or Event of Default unless a Responsible Officer of the
Trustee has received written notice of such Default or Event of Default, which
notice specifically references this Indenture and the Securities.

SECTION 8.06   Reports
by Trustee to Holders.  Within 75
days after each March 31 beginning with March 31, 2007, the Trustee shall mail
to each Securityholder a brief report dated as of such March 31 that complies
with TIA Section 313(a), if required by such Section 313(a).  The Trustee also shall comply with TIA
Section 313(b).  Any reports required by
this Section 8.06 shall be transmitted by mail to Securityholders pursuant to
TIA Section 313(c).

A copy of each report at the time of its mailing to
Securityholders shall be filed with the SEC and each securities exchange, if
any, on which the Securities are listed. 
The Company agrees to notify the Trustee promptly whenever the
Securities become listed on any securities exchange and of any delisting
thereof.

SECTION 8.07   Compensation
and Indemnity.  The Company agrees:

(a)           to pay to the Trustee from time to time such compensation
as the Company and the Trustee shall from time to time agree in writing for all
services rendered by it

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hereunder (which compensation shall not be
limited (to the extent permitted by law) by any provision of law in regard
to the compensation of a trustee of an express trust);

(b)           to reimburse the Trustee upon its request for all
reasonable expenses, disbursements and advances incurred or made by the Trustee
in accordance with any provision of this Indenture (including the reasonable
compensation and the expenses, advances and disbursements of its agents and
counsel), except any such expense, disbursement or advance as may be
attributable to its own negligence or willful misconduct; and

(c)           to indemnify the Trustee and any predecessor Trustee and
their agents for, and to hold them harmless against, any loss, damage, claim,
liability, cost or expense (including reasonable attorney’s fees and expenses,
and taxes (other than taxes based upon, measured by or determined by the income
of the Trustee)) incurred without negligence or willful misconduct on its
part, arising out of or in connection with the acceptance or administration of
this trust, including the costs and expenses of defending itself against any
claim (whether asserted by the Company or any Holder or any other Person) or
liability in connection with the exercise or performance of any of its powers
or duties hereunder.

To secure the Company’s payment obligations in this
Section 8.07, the Trustee shall have a lien prior to the Securities on all
money or property held or collected by the Trustee, except that held in trust
to pay the principal amount of, or the Redemption Price, Repurchase Price,
Fundamental Change Repurchase Price, Interest, Contingent Interest or
Additional Amounts, if any, as the case may be, on particular Securities.

The Company’s payment, reimbursement and indemnity
obligations pursuant to this Section 8.07 shall survive the satisfaction and
discharge of this Indenture, the resignation or removal of the Trustee and the
termination of this Indenture for any reason. 
In addition to and without prejudice to its rights hereunder, when the
Trustee incurs expenses or renders services in connection with an Event of
Default specified in Section 7.01(i) or Section 7.01(j), the expenses,
including the reasonable charges and expenses of its counsel and the
compensation for services payable pursuant to Section 8.07(a), are intended to
constitute expenses of administration under any applicable federal or state
bankruptcy, insolvency or similar laws.

For the purposes of this Section 8.07, the “Trustee”
shall include any predecessor Trustee; provided, however,
that except as may be otherwise agreed among the parties, the negligence,
willful misconduct or bad faith of any Trustee hereunder shall not affect the
rights of any other Trustee hereunder.

SECTION 8.08   Replacement of Trustee.  The Trustee may resign at any time by so
notifying the Company; provided, however,
no such resignation shall be effective until a successor Trustee has accepted
its appointment pursuant to this Section 8.08. 
The Holders of a majority in aggregate principal amount of the
Securities at the time outstanding may remove the Trustee by so notifying the
Trustee and the Company in writing.  The
Company shall remove the Trustee if:

(1)           the Trustee fails to comply with
Section 8.10;

(2)           the Trustee is adjudged bankrupt or
insolvent;

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

(4)           the Trustee otherwise becomes
incapable of acting.

If the Trustee resigns or is removed or if a vacancy
exists in the office of Trustee for any reason, the Company shall promptly
appoint, by resolution of its Board of Directors, a successor Trustee.

A successor Trustee shall deliver a written acceptance
of its appointment to the retiring Trustee and to the Company satisfactory in
form and substance to the retiring Trustee and the Company.  Thereupon the resignation or removal of the
retiring Trustee shall become effective, and the successor Trustee shall have
all the rights, powers and duties of the Trustee under this Indenture.  The successor Trustee shall mail a notice of
its succession to Securityholders.  The
retiring Trustee shall promptly transfer all property held by it as Trustee to
the successor Trustee, subject to the lien provided for in Section 8.07.

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

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

So long as no Default or Event of Default shall have
occurred and be continuing, if the Company shall have delivered to the Trustee
(i) a Board Resolution appointing a successor Trustee, effective as of a
date at least 30 days after delivery of such Resolution to the Trustee, and
(ii) an instrument of acceptance of such appointment, effective as of such
date, by such successor Trustee in accordance with this Indenture, the Trustee
shall be deemed to have resigned as contemplated in this Section 8.08, the
successor Trustee shall be deemed to have been accepted as contemplated in this
Indenture, all as of such date, and all other provisions of this Indenture
shall be applicable to such resignation, appointment and acceptance.

SECTION 8.09   Successor
Trustee by Merger.  If the Trustee
consolidates with, merges or converts into, or transfers all or substantially
all its corporate trust business or assets to, another Person, the resulting,
surviving or transferee Person without any further act shall be the successor
Trustee, subject to Sections 8.10 and 8.11.

SECTION 8.10   Eligibility;
Disqualification.  The Trustee shall
at all times satisfy the requirements of TIA Sections 310(a)(1) and
310(b).  The Trustee (or any parent
holding company) shall have a combined capital and surplus of at least
$50,000,000 as set forth in its most recent published annual report of
condition.  Nothing herein contained
shall prevent the Trustee from filing with the Commission the application
referred to in the penultimate paragraph of TIA Section 310(b).

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

ARTICLE 9

DISCHARGE OF INDENTURE

SECTION 9.01   Discharge
of Liability on Securities.  When
(i) the Company causes to be delivered to the Trustee all outstanding
Securities (other than Securities replaced or repaid pursuant to Section
2.07) for cancellation or (ii) all outstanding Securities have become
due and payable and the Company deposits with the Trustee cash sufficient to
pay all amounts due and owing on all outstanding Securities (other than
Securities replaced pursuant to Section 2.07), and if in either case the
Company pays all other sums payable hereunder by the Company, then this
Indenture shall, subject to Section 8.07, cease to be of further effect.  The Trustee shall join in the execution of a
document prepared by the Company acknowledging satisfaction and discharge of
this Indenture on demand of the Company accompanied by an Officer’s Certificate
and Opinion of Counsel and at the cost and expense of the Company.  Notwithstanding the satisfaction and
discharge of this Indenture, the obligations of the Company to the Trustee
under Section 8.07, and, if money is deposited with the Trustee pursuant to
clause (ii) of this Section, the provisions of Sections 2.03, 2.06, 2.07, 2.12,
8.01, 8.02 and 8.05 shall survive such satisfaction and discharge.

SECTION 9.02   Repayment
to the Company.  The Trustee and the
Paying Agent shall return to the Company upon written request any money or
securities held by them for the payment of any amount with respect to the
Securities that remains unclaimed for two years, subject to applicable
abandoned property law.  After return to
the Company, Holders entitled to the money or securities must look to the
Company for payment as general creditors unless an applicable abandoned
property law designates another person and the Trustee and the Paying Agent
shall have no further liability to the Securityholders with respect to such
money or securities for that period commencing after the return thereof.

SECTION 9.03   Application
of Trust Money.  The Trustee shall
hold uninvested in trust all money and other consideration deposited with it
pursuant to Section 9.01 and shall apply such deposited money and other
consideration through the Paying Agent and in accordance with this Indenture to
the payment of amounts due on the Securities. 
Money and other consideration so held in trust is subject to the Trustee’s
rights under Section 8.07.

ARTICLE
10

AMENDMENTS

SECTION 10.01   Without
Consent of Holders.  The Company and
the Trustee may modify or amend this Indenture or the Securities without the
consent of any Securityholder to:

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(a)           provide
for the assumption by a successor Person of the Company’s obligations to the
Holders of Securities in the case of a merger, consolidation, conveyance, sale,
transfer or lease pursuant to Article 6 or Section 11.05 hereof, and otherwise
to comply with the provisions of this Indenture relating to consolidations,
mergers, and sales of assets;

(b)           to surrender any right or power conferred on the Company
by the indenture, to add further covenants, restrictions, conditions, or
provisions for the protection of the Holders of all or any Securities, and to
make the occurrence, or the occurrence and continuance of, a default in any of
such additional covenants, restrictions, conditions, or provisions, a Default
or an Event of Default;

(c)           cure any ambiguity or to correct or supplement any
provision herein which may be inconsistent with any other provision herein or
which is otherwise defective or inconsistent with any provision contained in
this Indenture or the Securities; to convey, transfer, assign, mortgage, or
pledge any property to or with the Trustee, or to make such other provisions in
regard to matters or questions arising under this Indenture as shall not
adversely affect the interests of any Holders of the Securities;

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

(e)           to add or change any of the provisions of this Indenture
to change or eliminate any restriction on the payment of principal with respect
to the Securities so long as any such action does not adversely affect the
interests of the Holders of the Securities in any material respect;

(f)            provide for uncertificated Securities in addition to or
in place of Certificated Securities; provided, however,
that uncertificated Securities are issued in registered form for purposes of
Section 163(f) of the Code or in a manner such that uncertificated
Securities are described in Section 163(f)(2)(B) of the Code;

(g)           to make any change in the provisions of Article 13 that
would limit or terminate the benefits available to any Holder of Senior
Indebtedness under such provisions (but only if such Holder of Senior
Indebtedness consents to such change);

(h)           add guarantees with respect to the Securities or to secure
the Securities;

(i)            evidence and provide for the acceptance of the
appointment under this Indenture of a successor Trustee in accordance with the
terms of this Indenture and to add to or change any of the provisions of this
Indenture as shall be necessary to provide for or facilitate the administration
of this Indenture by more than one Trustee;

(j)            establish the form of Securities if issued in definitive
form (substantially in the form of Exhibit B);

(k)           provide for conversion rights of Holders of Securities if
any reclassification or change of the Common Stock or any consolidation, merger
or sale of all or substantially all of the Company’s assets occurs;

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(l)            change the Conversion Rate in accordance with this
Indenture; provided, however, that any increase in
the Conversion Rate other than pursuant to Article 11 shall not adversely affect
the interests of the Holders of Securities (after taking into account U.S.
federal income tax and other consequences of such increase);

(m)          to confirm, as necessary, the Indenture and the form or
terms of the Notes, to the “Description of the Notes” as set forth in the
Offering Memorandum; and

(n)           make any changes or modifications in the Indenture or the
Securities; provided, however, that any such change
or modification does not, adversely affect the interests of the Holders of
Securities in any material respect;

SECTION 10.02   With
Consent of Holders.  Except as
provided below in this Section 10.02 and in Section 10.01, this Indenture or
the Securities may be amended, modified or supplemented, and noncompliance in
any particular instance with any provision of this Indenture or the Securities
may be waived, in each case with the written consent of the Holders of at least
a majority of the principal amount of the Securities at the time outstanding.

Without the written consent or the affirmative vote of
each Holder of Securities affected thereby, an amendment, supplement or waiver
under this Section 10.02 may not:

(a)           reduce the percentage of the aggregate principal amount of
the outstanding Securities the consent of whose Holders is required for any
such supplemental indenture entered into in accordance with this Section 10.02
or the consent of whose Holders is required for any waiver provided for in this
Indenture.

(b)           alter the manner of calculation or rate of accrual of
Interest, Contingent Interest or Additional Amounts, or extend the time for
payment of any such amount or the Redemption Price, Fundamental Change
Repurchase Price or Repurchase Price of any Security;

(c)           reduce the principal amount of or change the maturity of
any Security, or the payment date of any installment of Interest, Contingent
Interest or Additional Amounts payable on any Security;

(d)           reduce the Redemption Price, Repurchase Price or
Fundamental Change Repurchase Price of, any Security or change the time at
which or circumstances under which the Securities may be redeemed or
repurchased;

(e)           change the currency of payment of such Securities or
Interest, Contingent Interest, Additional Amounts, Redemption Price,
Fundamental Change Repurchase Price or Repurchase Price thereon;

(f)            make any change to Article 4 or Section 5.08 that
adversely affects the rights of the Holders thereunder;

(g)           modify any of the provisions of this Section, or reduce
the percentage of the aggregate principal amount of outstanding Securities
required to amend, modify or supplement this Indenture or the Securities or
waive an Event of Default, except to provide that

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certain other provisions of this Indenture
cannot be modified or waived without the consent of the Holder of each
outstanding Security affected thereby;

(h)           adversely impair the right of the Holders of the
Securities to convert any Security or reduce the shares of Common Stock or
other property receivable upon conversion as provided in Article 11, except as
otherwise permitted pursuant to Article 6 or Section 11.05 hereof; or 

(i)            impair the right of any Holder to institute suit for the
enforcement of any payment of past due amounts with respect to, or conversion
of, any Security.

It shall not be necessary for the consent of the
Holders under this Section 10.02 to approve the particular form of any proposed
amendment, but it shall be sufficient if such consent approves the substance
thereof.  A consent to any amendment or
waiver under this Indenture by any Holder of the Securities given in connection
with a tender of such Holder’s Securities will not be rendered invalid by such
tender.

After an amendment under this Section 10.02 becomes
effective, the Company shall mail to each Holder a notice briefly describing
the amendment.  The failure to give such
notice to all Securityholders, or any defect therein, shall not impair or
affect the validity of an amendment under this Section 10.02.

SECTION 10.03   Compliance
With Trust Indenture Act.  Every
supplemental indenture executed pursuant to this Article shall comply with the
TIA as then in effect.

SECTION 10.04   Revocation
and Effect of Consents, Waivers and Actions.  Until an amendment, waiver or other action by
Holders becomes effective, a consent thereto by a Holder of a Security
hereunder is a continuing consent by the Holder and every subsequent Holder of
that Security or portion of the Security that evidences the same obligation as
the consenting Holder’s Security, even if notation of the consent, waiver or
action is not made on the Security. 
However, any such Holder or subsequent Holder may revoke the consent,
waiver or action as to such Holder’s Security or portion of the Security if the
Trustee receives the notice of revocation before the date the amendment, waiver
or action becomes effective.  After an
amendment, waiver or action becomes effective, it shall bind every
Securityholder.

For the purposes of this Indenture, the written
consent of the Holder of a Global Security shall be deemed to include any
consent delivered by an Agent by electronic means in accordance with the
Automated Tender Offer Procedures system or other customary procedures of, and
pursuant to authorization by, DTC.

SECTION 10.05   Notice
of Amendments, Notation on or Exchange of Securities.  Securities authenticated and delivered after
the execution of any supplemental indenture pursuant to this Article 10 may,
and shall if required by the Company, bear a notation in form approved by the
Company 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.

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Failure to make the
appropriate notation or to issue a new Security shall not affect the validity
of such amendment.

SECTION 10.06   Trustee
to Sign Supplemental Indentures.  The
Trustee shall sign any supplemental indenture authorized pursuant to this
Article 10 if the amendment contained therein does not affect the rights,
duties, liabilities or immunities of the Trustee.  If it does, the Trustee may, but need not,
sign such supplemental indenture.  In
signing such supplemental indenture the Trustee shall receive, and (subject to
the provisions of Section 8.01) shall be fully protected in relying upon,
an Officer’s Certificate and an Opinion of Counsel stating that such amendment
is authorized or permitted by this Indenture.

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

ARTICLE
11

CONVERSIONS

SECTION 11.01   Conversion
Privilege.  (a) Subject to and upon
compliance with the provisions of this Article 11, a Holder of a Security shall
have the right, at such Holder’s option, to convert all or any portion (if the
portion to be converted is $1,000 principal amount or an integral multiple
thereof) of such Security prior to the close of business on the Business
Day immediately preceding Stated Maturity into cash and shares of Common Stock,
if any, at the Conversion Rate (the “Conversion Obligation”) in
effect on the date of conversion only as follows:

(1)           during
any fiscal quarter of the Company (a “Fiscal Quarter”) commencing after the
fiscal quarter ending September 30, 2006 (and only during such Fiscal Quarter),
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 exceeds 130% of the
Conversion Price in effect on such last Trading Day;

(2)           during
the five Business Days immediately following any five consecutive Trading Day
period (the “Measurement
Period”) in which the Trading Price per $1,000 principal
amount of the Securities for each day of such Measurement Period was less than
98% of the product of the Closing Price of the Common Stock and the Conversion
Rate on each such date.  The Conversion
Agent will, on the Company’s behalf, determine if the Securities are
convertible as a result of the Trading Price of the Securities and notify the
Company and the Trustee; provided,
that the Conversion Agent shall have no obligation to determine the Trading
Price of the Securities unless the Company has requested such determination and
the Company shall have no obligation to make such request unless requested to
do so by a Holder of the Securities in writing. 
Upon

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making any such written request, any such requesting Holder shall
provide reasonable evidence that (A) such requesting Holder is a Holder of
the Securities as of the date of such notice, and (B) the Trading Price
per $1,000 principal amount of Securities would be less than 98% of the product
of the Closing Price of the Common Stock and the Conversion Rate.  At such time, the Company shall instruct the
Conversion 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 the Securities is greater than or equal to 98%
of the product of the Closing Price of the Common Stock and the Conversion
Rate;

(3)           at
any time prior to the close of business on the Business Day immediately
preceding the Redemption Date, if the Company has called the Securities for
redemption pursuant to Article 3 hereof, even if the Securities are not
otherwise convertible at that time;

(4)           at
any time on or after August 1, 2026 until the close of business on the Business
Day immediately preceding the Stated Maturity; or

(5)           as
provided in clause (b) of this Section 11.01.

The Company or, at its option, the Conversion Agent on
behalf of the Company, shall determine on a daily basis during the time periods
specified in Section 11.01(a)(1) or, following a request by a Holder of
Securities in accordance with the procedures specified in Section 11.01(a)(2),
whether the Securities shall be convertible as a result of the occurrence of an
event specified in such Sections and, if the Securities shall be so
convertible, the Company or the Conversion Agent, as applicable, shall promptly
deliver to the Trustee and Conversion Agent or the Company, as applicable
written notice thereof.  Whenever the Securities
shall become convertible pursuant to this Section 11.01 (as determined in
accordance with this Section 11.01), the Company or, at the Company’s written
request, the Trustee in the name and at the expense of the Company, shall
promptly notify the Holders of the event triggering such convertibility in the
manner provided in Section 13.02, and the Company shall also promptly
disseminate a press release through Dow Jones & Company, Inc. or Bloomberg
Business News and publish such information on the Company’s Website or through
another public medium the Company may use at that time.  Any notice so given shall be conclusively
presumed to have been duly given, whether or not the Holder receives such
notice.

(b)           In the event that:

(1)           (A) the
Company distributes to all or substantially all holders of Common Stock rights
or warrants entitling them to purchase, for a period expiring within 60 days
after the date of such distribution, Common Stock at less than the Last
Reported Sale Price of the Common Stock on the Trading Day immediately
preceding the announcement date for such distribution; or (B) the Company
distributes to all or substantially all holders of Common Stock assets
(including cash), debt securities or rights or warrants to purchase the Company’s
securities, which distribution has a per share value as determined by

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the Board of Directors exceeding 10% of the Last Reported Sale Price of
the Common Stock on the Trading Day immediately preceding the announcement date
of such distribution, then, in either case, the Securities may be surrendered
for conversion at any time on and after the date that the Company gives notice
to the Holders of such distribution, which shall be not less than 20 Business
Days prior to the Ex-Dividend Date for such distribution, until the earlier of
the close of business on the Business Day immediately preceding the Ex-Dividend
Date or the date on which the Company announces that such distribution shall
not take place, even if the Securities are not otherwise convertible at such
time; provided that no Holder of
a Security shall have the right to convert if the Holder may otherwise
participate in such distribution without conversion; or

(2)           a
Change of Control occurs pursuant to clause (1) of the definition thereof
set forth above or pursuant to clause (3) of the definition thereof set
forth above under which the Common Stock is to be converted into cash,
securities or other property, in either case regardless of whether a Holder has
the right to require the Company to repurchase such Holder’s Securities
pursuant to Section 3.08, then the Securities may be surrendered for conversion
at any time from and after the date which is 15 days prior to the anticipated
effective date of such transaction until 15 days after the actual effective
date of such transaction (or, if such transaction also constitutes a Change of
Control pursuant to which Holders have a right to require the Company to
repurchase the Securities pursuant to Section 3.08, to, but not including, the
applicable Fundamental Change Repurchase Date). 
The Company shall notify Holders and the Trustee at the time the Company
publicly announces the Change of Control transaction giving rise to the above
conversion right (but in no event less than 15 days prior to the anticipated
effective date of such transaction).  If
the Company engages in any reclassification of the Common Stock (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 is party to a consolidation, merger, binding share exchange or
transfer of all or substantially all of its assets pursuant to which Holders of
Common Stock would be entitled to receive cash, securities or other property,
then at the effective time of such transaction, to the extent that it
constitutes a Change of Control as described in this paragraph above as giving
rise to a conversion right, the Conversion Obligation and the Conversion
Settlement Distribution shall be based on the applicable Conversion Rate and
the kind and amount of cash, securities or other property that a holder of one
share of the Common Stock would have received in such transaction (such
property, collectively, the “Exchange Property”). 
In addition, if a Holder converts Securities following the effective
time of any such transaction, any amounts of the Conversion Settlement
Distribution to be settled in shares of Common Stock shall be paid in such
Exchange Property rather than shares of Common Stock.  If the transaction also constitutes a Change
of Control, (A) a Holder can require the Company to repurchase all or a
portion of its Securities pursuant to Section 3.08 or, (B) if such Holder
elects, instead, to convert all or a portion of its Securities, such Holder
shall receive Additional Shares upon conversion pursuant to Section

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11.01(c), in each case, subject to the terms and conditions set forth
in each such Section.

(c)           If and only to the extent a Holder timely elects to
convert Securities during the period specified in Section
11.01(b)(2) above on or prior to October 6, 2011, and 10% or more of the
consideration for the Common Stock in such Change of Control transaction
consists of consideration other than common stock traded or scheduled to be
traded immediately following such transaction on the New York Stock Exchange,
the Nasdaq Global Market or such other U.S. national securities exchange, the
Conversion Rate shall be increased by an additional number of shares of Common
Stock (the “Additional Shares”) as
described below; provided that if the Stock Price
paid in connection with such transaction is greater than $120 or less than
$41.25 (subject in each case to adjustment as described below), no Additional
Shares shall be added to the Conversion Rate. 
Notwithstanding this Section 11.01(c), if the Company elects to adjust
the Conversion Rate pursuant to Section 11.01(d), the provisions of Section
11.01(d) shall apply in lieu of the provisions of this Section
11.01(c).  The Company shall notify
Holders, at least 15 days prior to the anticipated effective date of such
transaction causing any increase of the Conversion Rate pursuant to this
Section 11.01(c), whether the Company elects to increase the Conversion Rate as
described above or to adjust the Conversion Rate pursuant to Section 11.01(d).

The number of Additional Shares to be added to the
Conversion Rate as described in the immediately preceding paragraph shall be
determined by reference to the table attached as Schedule I hereto, based on
the effective date of such Change of Control transaction and the Stock Price
paid in connection with such transaction; provided that
if the Stock Price is between two Stock Price amounts in the table or such
effective date is between two effective dates in the table, the number of
Additional Shares shall be determined by a straight-line interpolation between
the number of Additional Shares set forth for the higher and lower Stock Price
amounts and the two dates, as applicable, based on a 365-day year.  The “Effective Date”
with respect to a Change of Control transaction means the date that a Change of
Control becomes effective.

With respect to any Securities tendered for conversion
to which Additional Shares apply, any shares of Common Stock to be delivered
upon conversion of such Securities pursuant to Section 11.02 shall be delivered
to Holders who elect to convert their Securities on the later of (i) the
fifth Business Day following the effective date and (ii) the third
Business Day following the final day of the Cash Settlement Period.

The Stock Prices set forth in the first row of the
table in Schedule I hereto shall be adjusted as of any date on which the
Conversion Rate of the Securities is adjusted pursuant to Section 11.04.  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
the adjustment giving rise to the Stock Price adjustment and the denominator of
which is the Conversion Rate as so adjusted. 
The number of Additional Shares shall be adjusted in the same manner as
the Conversion Rate as set forth in Section 11.04.

Notwithstanding the foregoing, in no event shall the
total additional number of shares of Common Stock issuable upon conversion of
the Securities pursuant to this clause

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(c) exceed 24.2355 per $1,000 principal amount of
Securities, subject to adjustments in the same manner as the Conversion Rate as
set forth in Section 11.04.

(d)           Notwithstanding the provisions of Section 11.01(c), in the
case of a Change of Control that would lead to the issuance of Additional
Shares as set forth in clause (c) above that is also a Public Acquirer
Change of Control, the Company may, in lieu of increasing the Conversion Rate
by Additional Shares as described in Section 11.01(c), elect to adjust the
Conversion Rate and the related Conversion Obligation such that from and after
the effective date of such Public Acquirer Change of Control, Holders of
Securities shall be entitled to convert their Securities (subject to the satisfaction
of the conditions to conversion set forth in Section 11.01(a)) into Public
Acquirer Common Stock.  The Conversion
Rate following the effective date of such transaction will be a number of
shares of Public Acquirer Common Stock equal to the product of the Conversion
Rate in effect immediately before the Public Acquirer Change of Control times
the average of the quotients obtained, for each Trading Day in the 10
consecutive Trading Day period ending on the Trading Day immediately preceding
the effective date of such Public Acquirer Change of Control (the “Valuation Period”), of:

(i)            the
Acquisition Value of our Common Stock on each such Trading Day in the Valuation
Period, divided by

(ii)           the
Last Reported Sale Price of the Public Acquirer Common Stock on each such
Trading Day in the Valuation Period.

The “Acquisition Value”
of the Common Stock means, for each Trading Day in the Valuation Period, the
value of the consideration paid per share of Common Stock in connection with
such Public Acquirer Change of Control, as follows:

(i)            for any cash, 100%
of the face amount of such cash;

(ii)           for
any Public Acquirer Common Stock, 100% of the Last Reported Sale Price of such
Public Acquirer Common Stock on such trading day; and

(iii)          for
any other securities, assets or property, 100% of the fair market value of such
security, asset or property on such Trading Day, as determined by three
independent nationally recognized investment banks selected by the Company for
this purpose.

“Public Acquirer Change of
Control” means an event constituting a corporate transaction
that would otherwise obligate the Company to increase the Conversion Rate as
described in Section 11.01(c) and the acquirer, the Person formed by or
surviving the merger or consolidation or any entity that is direct or indirect “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act) of more than 50%
of such Person’s or acquirer’s Voting Stock has a class of common stock traded
on the New York Stock Exchange, the Nasdaq Global Market or such other U.S.
national securities exchange or which shall be so traded when issued or
exchanged in connection with such Change of Control (the “Public
Acquirer Common Stock”); provided, that if there is more than
one of such entity, the relevant entity shall be such entity with the most
direct beneficial ownership to such acquirer’s or Person’s Capital Stock.

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Upon a Public Acquirer Change of Control, if the
Company so elects, Holders may convert their Securities (subject to the
satisfaction of the conditions to conversion set forth in Section
11.01(a)) at the adjusted Conversion Rate described above but shall not be
entitled to the increased Conversion Rate described in Section 11.01(c).  The Company shall notify Holders of its
election in its notice to Holders pursuant to Section
11.01(b)(2) above.  Holders may
convert their Securities upon a Public Acquirer Change of Control during the
period specified in Section 11.01(b)(2). 
In addition, Holders can also, subject to certain conditions, require
the Company to repurchase all or a portion of their Securities as described in
Section 3.08.

After any adjustment of the Conversion Rate in
connection with a Public Acquirer Change of Control, the Conversion Rate shall
be subject to further similar adjustments in the event that any of the events
described in Section 11.04 occur thereafter.

The Company may only make such election if such public
acquirer is a corporation organized under the laws of the United States, any
State thereof or the District of Columbia and if the Company and such public
acquirer executes a supplemental indenture whereby the public acquirer agrees
to comply with the obligations of the Company under the Securities and the
Indenture applicable to such public acquirer or any securities thereof that may
be issuable upon conversion of the Securities.

SECTION 11.02   Conversion
Procedure; Conversion Rate; Fractional Shares.  (a) Subject to Section 11.01 and the Company’s
rights under Section 11.03, each Security shall be convertible at the office of
the Conversion Agent into a combination of cash and fully paid and
nonassessable shares (calculated to the nearest 1/10,000th of a share) of
Common Stock, if any at a rate (the “Conversion Rate”) equal
to, initially, 18.3655 shares of Common Stock for each $1,000 principal amount
of Securities.  The Conversion Rate shall
be adjusted in certain instances as provided in Section 11.04 hereof, but shall
not be adjusted for any accrued and unpaid Interest, Contingent Interest, or
Additional Amounts, if any.  Upon
conversion, no payment shall be made by the Company with respect to any accrued
and unpaid Interest, including Contingent Interest, if any.  Instead, such amount shall be deemed paid by
the applicable Conversion Settlement Distribution delivered upon conversion of
any Security.  In addition, no payment or
adjustment shall be made in respect of dividends on the Common Stock with a
record date prior to the Conversion Date. 
Notwithstanding the foregoing, upon conversion, a Holder shall receive
any accrued and unpaid Additional Amounts to the Conversion Date.  The Company shall not issue any fraction of a
share of Common Stock in connection with any conversion of Securities, but
instead shall, subject to Section 11.03 hereof, make a cash payment (calculated
to the nearest cent) equal to such fraction multiplied by the Last
Reported Sale Price of the Common Stock on the Trading Day prior to the
Conversion Date.

(b)           Before any Holder of a Security shall be entitled to
convert the same into a combination of cash and Common Stock, if any, such
Holder shall (1) in the case of Global Securities, comply with the
procedures of the Depositary in effect at that time for converting a beneficial
interest in a Global Security, and in the case of Certificated Securities, surrender
such Securities, duly endorsed to the Company or in blank, at the office of the
Conversion Agent, and (2) give written notice to the Company in the form
on the reverse of such Certificated Security (the “Conversion Notice”) at said office or place that
such Holder elects to convert the same and shall state in writing therein the
principal amount of Securities to be converted and the name or

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names (with addresses) in which such
Holder wishes the certificate or certificates for Common Stock included in the
Conversion Settlement Distribution, if any, to be registered.

Before any such conversion, a Holder also shall pay
all taxes or duties, if any, as provided in Section 11.06 and any amount
payable pursuant to Section 11.02(g).

If more than one Security shall be surrendered for
conversion at one time by the same Holder, the number of full shares of Common
Stock, if any, that shall be deliverable upon conversion as part of the
Conversion Settlement Distribution shall be computed on the basis of the aggregate
principal amount of the Securities (or specified portions thereof to the extent
permitted thereby) so surrendered.

(c)           A Security shall be deemed to have been converted as of
the close of business on the date (the “Conversion
Date”) that the Holder has complied with Section 11.02(b).

(d)           The Company shall, on the Conversion Settlement Date,
(i) pay the cash component (including cash in lieu of any fraction of a
share to which such Holder would otherwise be entitled) of the Conversion
Obligation determined pursuant to Section 11.03 to the Holder of a Security
surrendered for conversion, or such Holder’s nominee or nominees, and
(ii) issue, or cause to be issued, and deliver to the Conversion Agent or
to such Holder, or such Holder’s nominee or nominees, certificates for the
number of full shares of Common Stock, if any, to which such Holder shall be
entitled as part of such Conversion Obligation. 
The Company shall not be required to deliver certificates for shares of
Common Stock while the stock transfer books for such stock or the security
register are duly closed for any purpose, but certificates for shares of Common
Stock shall be issued and delivered as soon as practicable after the opening of
such books or security register, and the Person or Persons entitled to receive
the Common Stock as part of the applicable Conversion Settlement Distribution
upon such conversion shall be treated for all purposes as the record holder or
holders of such Common Stock, as of the close of business on the applicable Conversion
Settlement Date.

(e)           In case any Security shall be surrendered for partial
conversion, the Company shall execute and the Trustee shall authenticate and
deliver to or upon the written order of the Holder of the Security so
surrendered, without charge to such Holder (subject to the provisions of
Section 11.06 hereof), a new Security or Securities in authorized denominations
in an aggregate principal amount equal to the unconverted portion of the
surrendered Securities.

(f)            By delivering the combination of cash and shares of
Common Stock, if any, together with a cash payment in lieu of any fractional
shares to the Conversion Agent or to the Holder or such Holder’s nominee or
nominees, the Company shall have satisfied in full its Conversion Obligation
with respect to such Security, and upon such delivery, accrued and unpaid
Interest, if any, and Contingent Interest, if any, with respect to such
Security shall be deemed to be paid in full rather than canceled, extinguished
or forfeited, and such amounts shall no longer accrue.

(g)           If a Securityholder delivers a Conversion Notice after the
Interest Record Date for a payment of Interest (including Contingent Interest,
if any) but prior to the

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corresponding Interest Payment Date, such
Securityholder must pay to the Company, at the time such Securityholder
surrenders Securities for conversion, an amount equal to the Interest
(including Contingent Interest, if any, and excluding, for the avoidance of
doubt, Additional Amounts, if any), that has accrued and shall be paid on the
related Interest Payment Date.  The
preceding sentence shall not apply if (1) the Company has specified a
Redemption Date that is after an Interest Record Date but on or prior to the
corresponding Interest Payment Date, (2) the Company has specified a
Fundamental Change Repurchase Date during such period referred to in clause
(1) of this paragraph, (3) to the extent of Overdue Interest, if any
overdue Interest exists at the time of conversion with respect to the
Securities converted or (4) in connection with any conversion following the
Interest Record Date immediately preceding the final Interest Payment Date.

SECTION 11.03   Payment
Upon Conversion.  (a) Upon conversion
of Securities, the Company shall deliver to Holders surrendering Securities for
conversion, for each $1,000 principal amount of Securities, a settlement amount
(the “Conversion Settlement Distribution”) on
the Conversion Settlement Date consisting of:

(i)            cash
amount (the “Cash Amount”) equal
to the lesser of $1,000 and the Conversion Value; and

(ii)           to
the extent the Conversion Value exceeds $1,000, (x) a number of shares of
Common Stock equal to the sum of, for each day of the Cash Settlement Period
described below, the greater of:

(A)          zero and

(B)           the quotient of

(1)           5% of the difference between
(x) the product of the Conversion Rate (plus any Additional Shares as
described under Section 11.01(c))and the Last Reported Sale Price of the Common
Stock on such date, and (y) $1,000, divided by

(2)           the Last Reported Sale Price of the
Common Stock for such day, or

(y)           if the Company so elects, cash equal
to the difference (such difference, the “Net Share Amount”) between
the Conversion Value and $1,000 or

(z)            if the Company so elects, a
combination of cash and shares of Common Stock with a value equal to the
difference between the Conversion Value and $1,000, such amount to be
determined as set out below.

The Company may elect to pay cash to Holders of
Securities surrendered for conversion in lieu of all or a portion of the net
shares of Common Stock issuable upon conversion of such Securities only if
payment of such cash would not be prohibited by the terms of the Company’s
other Indebtedness.  If the Company does
so elect to pay cash, the Company will notify Holders though the Trustee of the
dollar amount to be satisfied in cash (either 100%

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or a fixed dollar amount will be paid (the “Specified Cash Amount”)) at any
time on or before the date that is two Business Days following the Conversion
Date.

If the Company elects to satisfy some but not all of
the net share amount for any conversion in cash as set out in clause
(ii)(z) above, (a) the Company will pay to converting Holders cash in
an amount equal to the lesser of (x) the net share amount for such
conversion and (y) the specified cash amount, and (b) the Company
will deliver to converting holders a number of shares of Common Stock equal to
the greater of (i) zero and (ii) the number of shares to which such
Holder would be entitled under clause (ii)(x), but replacing “$1,000” in clause
(ii)(x)(B)(l)(y) with “$1,000 plus the specified cash amount”.

The “Conversion Value”
means the product of (1) the Conversion Rate in effect (plus any
Additional Shares as described under Section 11.01(c)) and (2) the
average of the Last Reported Sale Prices of the Common Stock for the Trading
Days during the Cash Settlement Period.

The “Cash Settlement Period”
with respect to any Securities converted means the 20 consecutive Trading Days
beginning on the second Trading Day after the Conversion Date for those
Securities except in circumstances where conversion occurs within 20 days
leading up to the Stated Maturity or a specified Redemption Date, in which case
the Cash Settlement Period will be the 20 consecutive Trading Days beginning on
the second Trading Day following the Stated Maturity or the Redemption Date, as
the case may be.  In addition, if the
Company chooses to settle all or any portion of the net shares in cash in
conjunction with conversion within 20 days leading up to the Stated Maturity or
a specified Redemption Date, the Company will send, on or prior to the Stated
Maturity or the specified Redemption Date, as the case may be, a single notice
to the Trustee of the net shares to be satisfied in cash.

(b)           If a Holder tenders Securities for conversion and the
Conversion Value is being determined at a time when the Securities are
convertible into Exchange Property, the Conversion Value of each Security shall
be determined based on the kind and amount of such Exchange Property and the
value thereof during the Cash Settlement Period.  Settlement of Securities tendered for
conversion after the effective date of any transaction giving rise to Exchange
Property shall be as set forth above.

For the purposes of this Section, the Last Reported
Sale Price of the Common Stock shall be deemed to equal the sum of
(A) 100% of the value of any Exchange Property consisting of cash received
per share of Common Stock, (B) the Last Reported Sale Price of any
Exchange Property received per share of Common Stock consisting of securities
that are traded on a U.S. national securities exchange or approved for
quotation on the Nasdaq Global Market and (3) the Fair Market Value of any
other Exchange Property received per share, as determined by three independent
nationally recognized investment banks selected by the Company for this
purpose.  Settlement (in cash and/or
shares) will occur on the third Business Day following the final day of
such Cash Settlement Period.

SECTION 11.04   Adjustment
of Conversion Rate.  The Conversion
Rate shall be adjusted from time to time, without duplication, by the Company
in accordance with this Section 11.04:

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(a)           In
case the Company shall hereafter pay a dividend or make a distribution to all
or substantially all holders of the outstanding Common Stock in shares of
Common Stock, the Conversion Rate shall be increased so that the same shall
equal the rate determined by multiplying the Conversion Rate in effect at the
opening of business on the date following the date fixed for the determination
of stockholders entitled to receive such dividend or other distribution by a
fraction,

(i)            the numerator of which shall be the
sum of (A) the number of shares of Common Stock outstanding at the close
of business on the date fixed for such determination plus (B) the total
number of shares of Common Stock constituting the dividend or distribution; and

(ii)           the denominator of which shall be the
number of shares of Common Stock outstanding at the close of business on the
date fixed for such determination,

 such increase
to become effective immediately after the opening of business on the day
following the date fixed for such determination.  If any dividend or distribution of the type
described in this Section 11.04 is declared but not so paid or made, the
Conversion Rate shall again be adjusted to the Conversion Rate that would then
be in effect if such dividend or distribution had not been declared.

(b)           In
case the Company shall issue rights, warrants or options (other than pursuant
to any dividend reinvestment or share repurchase plans) to all or
substantially all holders of its outstanding shares of Common Stock entitling
them (for a period expiring within 60 days after the date of such
distribution) to subscribe for or purchase shares of Common Stock at a
price per share less than the Current Market Price on the date fixed for
determination of stockholders entitled to receive such rights or warrants, the
Conversion Rate shall be adjusted so that the same shall equal the rate
determined by multiplying the Conversion Rate in effect immediately prior to
the date fixed for determination of stockholders entitled to receive such rights
or warrants by a fraction,

(i)            the numerator of which shall be the
sum of (A) the number of shares of Common Stock outstanding on the date
fixed for determination of stockholders entitled to receive such rights or
warrants plus (B) the total number of additional shares of Common Stock
offered for subscription or purchase, and

(ii)           the denominator of which is the sum
of (A) the number of shares of Common Stock outstanding on the date fixed
for determination of stockholders entitled to receive such rights or warrants
plus (B) the total number of additional shares of Common Stock that the
aggregate offering price of the total number of shares of Common Stock offered
for subscription or purchase would purchase at the Current Market Price of the
Common Stock on such date.

Such adjustment shall be successively made whenever
any such rights or warrants are issued, and shall become effective immediately
after the opening of business on the day following the date fixed for
determination of stockholders entitled to receive such rights or

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warrants.  To
the extent that shares of Common Stock are not delivered after the expiration
of such rights 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 or warrants been made on the basis of delivery of only
the number of shares of Common Stock actually delivered.  In the event that such rights or warrants are
not so issued, the Conversion Rate shall again be adjusted to be the Conversion
Rate that would then be in effect if such date fixed for the determination of
stockholders entitled to receive such rights or warrants had not been
fixed.  In determining whether any
rights, options or warrants entitle the holders to subscribe for or purchase
shares of Common Stock at less than such Current Market Price, and in
determining the aggregate offering price of such shares of Common Stock, there
shall be taken into account any consideration received by the Company for such
rights 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)           In
case outstanding shares of Common Stock shall be subdivided into a greater number
of shares of Common Stock, the Conversion Rate in effect at the opening of
business on the day following the day upon which such subdivision becomes
effective shall be proportionately increased, and conversely, in case
outstanding shares of Common Stock shall be combined into a smaller number of
shares of Common Stock, the Conversion Rate in effect at the opening of
business on the day following the day upon which such combination becomes
effective shall be proportionately reduced, such increase or reduction, as the
case may be, to become effective immediately after the opening of business on
the day following the day upon which such subdivision or combination becomes
effective.

(d)           In
case the Company shall, by dividend or otherwise, distribute to all or
substantially all holders of its Common Stock shares of any class of Capital
Stock of the Company or evidences of its indebtedness or assets (including
securities, but excluding any rights, options or warrants referred to in
Section 11.04(b) and excluding any dividend or distribution (x) paid
exclusively in cash or (y) referred to in Section 11.04(a)) (any of the
foregoing hereinafter in this Section 11.04(d) called the “Distributed Assets”), then,
in each such case, the Conversion Rate shall be increased so that the same
shall be equal to the rate determined by multiplying the Conversion Rate in
effect on the Record Date with respect to such distribution by a fraction,

(i)            the numerator of which shall be the
Current Market Price per share of the Common Stock on such Record Date; and

(ii)           the denominator of which shall be the
Current Market Price per share of the Common Stock less the Fair Market Value
(as determined by the Board of Directors and described in a resolution of the
Board of Directors) on the Record Date of the portion of the Distributed
Assets so distributed applicable to one share of Common Stock,

such adjustment to become effective immediately prior
to the opening of business on the day following such Record Date; provided, however, that in the event (1) the then Fair
Market Value (as so determined) of the portion of the Distributed Assets
so distributed applicable to one share of Common Stock is equal to or greater
than the Current Market Price of the Common Stock on

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such Record Date or (2) the Current Market Price
of Common Stock on the Record Date exceeds the then Fair Market Value (as so
determined) of the portion of the Distributed Assets so distributed
applicable to one share of Common Stock by less than $1.00, in lieu of the
foregoing adjustment, adequate provision shall be made so that each Holder
shall have the right to receive upon conversion the amount of Distributed
Assets such Holder would have received had such Holder converted each Security
on the Record Date for such distribution. 
In the event that such dividend or distribution is not so paid or made,
the Conversion Rate shall 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 the Fair
Market Value of any distribution for purposes of this Section 11.04(d) 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 Current Market Price of the Common Stock.

Rights or warrants distributed by the Company to all
holders of Common Stock entitling the Holders thereof to subscribe for or
purchase shares of the Company’s Capital Stock (either initially or under
certain circumstances), which rights or warrants, until the occurrence of a
specified event or events (a “Trigger Event”):  (i) are deemed to be transferred with
such shares of Common Stock; (ii) are not exercisable; and (iii) are
also issued in respect of future issuances of Common Stock, shall be deemed not
to have been distributed for purposes of this Section 11.04 (and no adjustment
to the Conversion Rate under this Section 11.04 shall 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 11.04.  If any such right or
warrant, including any such existing rights or warrants distributed prior to
the date of this Indenture, are subject to events, upon the occurrence of which
such rights 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
record date with respect to new rights or warrants with such rights (and a
termination or expiration of the existing rights or warrants without exercise
by any of the holders thereof).  In
addition, in the event of any distribution (or deemed distribution) of
rights or warrants, or any Trigger Event or other event (of the type described
in the preceding sentence) with respect thereto that was counted for
purposes of calculating a distribution amount for which an adjustment to the
Conversion Rate under this Section 11.04 was made, (1) in the case of any
such rights 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 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 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 and warrants had not been issued.

No adjustment of the Conversion Rate shall be made
pursuant to this Section 11.04(d) in respect of rights or warrants
distributed or deemed distributed on any Trigger Event to the extent that such
rights or warrants are actually distributed, or reserved by the Company for

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distribution to Holders of Securities upon conversion
by such Holders of Securities to Common Stock.

For purposes of this Section 11.04(d) and Section
11.04(a) and (b), any dividend or distribution to which this Section
11.04(d) is applicable that also includes shares of Common Stock, or
rights or warrants to subscribe for or purchase shares of Common Stock (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 or warrants (and any Conversion Rate
adjustment required by this Section 11.04(d) with respect to such dividend
or distribution shall then be made) immediately followed by (2) a
dividend or distribution of such shares of Common Stock or such rights or
warrants (and any further Conversion Rate adjustment required by Section
11.04(a) and (b) with respect to such dividend or distribution shall
then be made), except (A) the Record Date of such dividend or distribution
shall be substituted as “the date fixed for the determination of stockholders
entitled to receive such dividend or other distribution”, “the date fixed for
the determination of stockholders entitled to receive such rights or warrants”
and “the date fixed for such determination” within the meaning of Section
11.04(a) and (b), and (B) any shares of Common Stock included in such
dividend or distribution shall not be deemed “outstanding at the close of
business on the date fixed for such determination” within the meaning of
Section 11.04(a).

If any Distributed Assets requiring any adjustment
pursuant to this Section 11.04(d) consists of the Capital Stock, or
similar equity interests in, a Subsidiary or other business unit of the Company
which are or in connection with such distribution will be listed or quoted for
trading on a U.S. national securities exchange or the Nasdaq Global Market, the
Conversion Rate in effect immediately before the close of business on the
Record Date fixed for determination of stockholders entitled to receive the
distribution shall instead be increased by multiplying the Conversion Rate then
in effect by a fraction, (A) the numerator of which is the sum of
(1) the average of the Last Reported Sale Prices of such distributed
security for the 10 Trading Days commencing on and including the fifth Trading
Day after the Ex-Dividend Date on the New York Stock Exchange, the Nasdaq
Global Market or such other national or regional exchange or market on which
such securities are then listed or quoted plus (2) the average of the
Closing Prices of the Common Stock over the same Trading Day period and
(B) the denominator of which is such average of the Last Reported Sale
Prices of the Common Stock for the 10 Trading Days commencing on and including
the fifth Trading Day after the Ex-Dividend Date on the New York Stock Exchange,
the Nasdaq Global Market or such other national or regional exchange or market
on which the securities are then listed or quoted.

(e)           In
case the Company shall, by dividend or otherwise, distribute to all or
substantially all holders of its Common Stock cash (excluding any dividend or
distribution in connection with the liquidation, dissolution or winding up of
the Company, whether voluntary or involuntary, or any regular quarterly cash
dividends on the Company’s Common Stock to the extent that the aggregate amount
of such cash dividend per share of Common Stock does not exceed $0.04 (such
$0.04 amount being referred to herein as the “Dividend Threshold Amount”)), then, in such case, the
Conversion Rate shall be adjusted so that the same shall equal the rate
determined by multiplying the Conversion Rate in effect immediately prior to
the close of business on the Record Date for such cash dividend by a fraction,

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(i)            the numerator of which shall be the
Current Market Price of the Common Stock on such Record Date minus the Dividend
Threshold Amount, and

(ii)           the denominator of which shall be
such Current Market Price of the Common Stock minus the amount per share of
such dividend or the amount of cash so distributed applicable to one share of
Common Stock; provided, however, that if an
adjustment is required to be made under this Section 11.04(e) as a result of a
dividend that is not a regular quarterly cash dividend on the shares of Company’s
Common Stock, the Dividend Threshold Amount shall be deemed to be zero,

such adjustment to be effective immediately prior to
the opening of business on the day following such Record Date; provided, however, that in the event the portion of the cash
so distributed applicable to one share of Common Stock is equal to or greater
than the Current Market Price of the Common Stock on such Record Date, in lieu
of the foregoing adjustment, adequate provision shall be made so that each
Holder shall have the right to receive upon conversion the amount of cash such
Holder would have received had such Holder converted each Security on such
Record Date.  In the event that 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.

The Dividend Threshold Amount is subject to adjustment
in a manner inversely proportional to adjustments to the Conversion Rate as
herein provided, provided no adjustment will be made to the Dividend Threshold Amount
for any adjustment made to the conversion rate under this Section 11.04(e).

(f)            In
case a tender or exchange offer made by the Company or any Subsidiary for all
or any portion of the Common Stock shall expire and such tender or exchange
offer (as amended upon the expiration thereof) shall require the payment
to stockholders of consideration per share of Common Stock having a Fair Market
Value (as determined by the Board of Directors, whose determination shall be
conclusive and described in a resolution of the Board of Directors) that as of
the last time (the “Expiration
Time”) tenders or exchanges may be made pursuant to such
tender or exchange offer (as it may be amended) exceeds the Last Reported
Sale Price of the Common Stock on the Trading Day next succeeding the
Expiration Time, the Conversion Rate shall be increased so that the same shall
equal the rate determined by multiplying the Conversion Rate in effect
immediately prior to the Expiration Time by a fraction,

(i)            the numerator of which shall be the
sum of (x) the Fair Market Value (determined as aforesaid) of the
aggregate consideration payable to stockholders based on the acceptance (up to
any maximum specified in the terms of the tender or exchange offer) of all
shares validly tendered or exchanged and not withdrawn as of the Expiration
Time (the shares deemed so accepted up to any such maximum, being referred to
as the “Purchased Shares”) and
(y) the product of the number of shares of Common Stock outstanding (less
any Purchased Shares) at the Expiration Time and the Last Reported Sale
Price of the Common Stock on the first Trading Day after the Expiration Time,
and

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(ii)           the denominator of which shall be the
product of the number of shares of Common Stock outstanding (including any
Purchased Shares) at the Expiration Time multiplied by the Last Reported
Sale Price of the Common Stock on the first Trading Day after the Expiration
Time,

such adjustment to become effective immediately prior
to the opening of business on the day following the Expiration Time.  In the event that the Company is obligated to
purchase shares pursuant to any such tender or exchange offer, but the Company
is permanently prevented by applicable law from effecting any such purchases or
all 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.

(g)           The
Company may make such increases in the Conversion Rate, in addition to those
required by this Section 11.04, as the Board of Directors considers to be
advisable to avoid or diminish any U.S. federal income tax to holders of Common
Stock resulting from any stock distribution; provided,
however, that such increase in the Conversion Rate shall not
adversely affect the interests of the Holders of Securities (after taking into
account U.S. federal income tax and other consequences of such increase).

To the extent permitted by applicable law and the
listing requirements of the New York Stock Exchange or any national securities
exchange on which the Common Stock is then listed, the Company from time to
time may increase the Conversion Rate by any amount for any period of time if
the period is at least twenty (20) days, the increase is irrevocable
during the period and the Board of Directors shall have made a determination
that such increase would be in the best interests of the Company, which
determination shall be conclusive. 
Whenever the Conversion Rate is increased pursuant to the preceding
sentence, the Company shall mail to Holders of record of the Securities a
notice of the increase at least fifteen (15) 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 shall be in effect.

(h)           All calculations under this Article 11 shall be made by
the Company and shall be made to the nearest cent or to the nearest one-ten
thousandth of a share, as the case may be, with one half-cent and 0.005 of a
share, respectively, being rounded upward. 
Notwithstanding the foregoing, no adjustment need be made for:

(i)            the
issuance of any shares of 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
Common Stock under any plan,

(ii)           the
issuance of any shares of 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 its
Subsidiaries,

(iii)          the
issuance of any shares of Common Stock pursuant to any option, warrant, right
or exercisable, exchangeable or convertible security outstanding as of the date
the Securities were first issued,

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(iv)          a
change in the par value of the Common Stock, or

(v)           accrued
and unpaid Interest, including Contingent Interest or Additional Amounts, if
any.

(i)            Whenever the Conversion Rate is adjusted as herein
provided, the Company shall promptly file with the Trustee and any Conversion
Agent (if 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 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 the Holder of each Security at his last address appearing on
the Security register provided for in Section 2.03 of this Indenture, within
twenty (20) days after execution thereof. 
Failure to deliver such notice shall not affect the legality or validity
of any such adjustment.

(j)            In any case in which this Section 11.04 provides that an
adjustment shall become effective immediately after (1) a record date or
Record Date for an event, (2) the date fixed for the determination of
stockholders entitled to receive a dividend or distribution pursuant to Section
11.04(a), (3) a date fixed for the determination of stockholders entitled
to receive rights or warrants pursuant to Section 11.04(b), (4) the effective
date of any subdivision or combination of Common Stock, or (5) the
Expiration Time for any tender or exchange offer pursuant to Section 11.04(f)
(each a “Determination Date”),
the Company may elect to defer until the occurrence of the relevant Adjustment
Event (as hereinafter defined) (x) issuing to the Holder of any
Security converted after such Determination Date and before the occurrence of
such Adjustment Event, the additional shares of Common Stock or other
securities issuable upon such conversion by reason of the adjustment required
by such Adjustment Event over and above the Common Stock issuable upon such
conversion before giving effect to such adjustment and (y) paying to such
Holder any amount in cash in lieu of any fraction pursuant to Section
11.04(a).  For purposes of this Section
11.04(k), the term “Adjustment
Event” shall mean:

(i)            in
any case referred to in clause (1) hereof, the occurrence of such event,

(ii)           in
any case referred to in clause (2) hereof, the date any such dividend or
distribution is paid or made,

(iii)          in
any case referred to in clause (3) hereof, the date of expiration of such
rights or warrants,

(iv)          in
any case referred to in clause (4) hereof, the date of such subdivision or
combination, and

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(v)           in
any case referred to in clause (5) or clause (6) hereof, the date a
sale or exchange of Common Stock pursuant to such tender or exchange offer is
consummated and becomes irrevocable.

(k)           For purposes of this Section 11.04, 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 shall not pay any dividend or
make any distribution on shares of Common Stock held in the treasury of the
Company.

SECTION 11.05   Effect
of Reclassification, Consolidation, Merger or Sale.

(a)           If any of the following events occur, namely (i) any
reclassification or change of the outstanding shares of Common Stock (other
than a subdivision or combination to which Section 11.04(c) applies or a
change in par value) as a result of which holders of Common Stock shall be
entitled to receive Exchange Property with respect to or in exchange for Common
Stock, (ii) any consolidation, merger, binding share exchange or
combination of the Company with another Person as a result of which holders of
Common Stock shall be entitled to receive Exchange Property with respect to or
in exchange for such Common Stock, or (iii) any sale or conveyance of all
or substantially all the properties and assets of the Company to any other
Person as a result of which holders of Common Stock shall be entitled to
receive Exchange Property with respect to or in exchange for such Common Stock,
then 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 for the conversion and settlement of the
Securities as set forth in this Indenture. 
Such supplemental indenture shall provide for adjustments which shall be
as nearly equivalent as may be practicable to the adjustments provided for in
this Article 11.  If, in the case of any
such reclassification, change, merger, consolidation, binding share exchange,
combination, sale or conveyance, the Exchange Property receivable thereupon by
a holder of Common Stock includes shares of stock or other securities and
assets of a corporation other than the successor or purchasing corporation, as
the case may be, in such reclassification, change, merger, consolidation,
statutory share exchange, combination, sale or conveyance, then such
supplemental indenture shall also be executed by such other corporation and
shall contain such additional provisions to protect the interests of the
Holders of the Securities as the Board of Directors shall reasonably consider
necessary by reason of the foregoing.

(b)           The Conversion Obligation with respect to each $1,000
principal amount of Securities converted following the effective date of any
such transaction, shall be calculated (as provided in clause
(c) below) based on the Exchange Property.  In the event holders of the Common Stock have
the opportunity to elect the form of consideration to be received in such
transaction, the Company shall make adequate provision whereby the Holders of
the Securities shall have a reasonable opportunity to determine the form of
consideration, consistent with election rights and restrictions applicable to
holders of Common Stock, into which all of the Securities, treated as a single
class, shall be convertible from and after the effective date of such
transaction (subject to the Company’s ability to settle the conversion
obligation, entirely in cash as set forth in Section 11.03).  Such determination shall be subject to any
limitations to which all

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of the holders
of the Common Stock are subject, such as pro-rata reductions applicable to any
portion of the considerable payable in such event and shall be conducted in
such a manner as to be completed by the date which is the latest of
(a) the deadline for elections to be made by holders of the Common Stock
in connection with such transaction, and (b) two Trading Days prior to the
anticipated effective date of such event. 
The Company shall provide notice of the opportunity to determine the
form of such consideration, as well as notice of the determination made by Holders
of the Securities by issuing a press release and providing a copy of such
notice to the Trustee.  The Company shall
not become a party to any such transaction unless its terms are consistent with
the proceeding.  However, if the
transaction described above also constitutes a Public Acquirer Change of
Control, then the Company may in certain circumstances elect to change the
conversion right in the manner described in Section 11.01(c) in lieu of
changing the conversion right in the manner described in this Section 11.05(b).

(c)           The Conversion Obligation in respect of any Securities
converted following the effective date of any such transaction shall be
computed in the same manner as set forth in Section 11.03(a) except that
if the Securities become convertible into Exchange Property, the Last Reported
Sale Price of the Common Stock shall be deemed to equal the sum of
(A) 100% of the value of any Exchange Property consisting of cash received
per share of Common Stock, (B) the Last Reported Sale Price of any
Exchange Property received per share of Common Stock consisting of securities
that are traded on a U.S. national securities exchange or approved for
quotation on the Nasdaq Global Market and (C) the Fair Market Value of any
other Exchange Property received per share, as determined by three independent
nationally recognized investment banks selected by the Company for this
purpose.  Settlement (in cash and/or
shares) shall occur on the third Business Day following the final day of
such Cash Settlement Period, provided that
any amount of the Conversion Settlement Distribution to be delivered in shares
of Common Stock shall be paid in Exchange Property rather than shares of Common
Stock.  If the Exchange Property includes
more than one kind of property, the amount of Exchange Property of each kind to
be delivered shall be in the proportion that the value of the Exchange Property
(as calculated pursuant to Section 11.03) of such kind bears to the value
of all such Exchange Property.  If the
foregoing calculations would require the Company to deliver a fractional share
or unit of Exchange Property to a Holder of Securities being converted, the
Company shall deliver cash in lieu of such fractional share or unit based on
the value of the Exchange Property.

(d)           The Company shall cause notice of the execution of such
supplemental indenture to be mailed to each Holder of Securities, at its
address appearing on the Security register provided for in Section 2.03 of this
Indenture, within twenty (20) days after execution thereof.  Failure to deliver such notice shall not
affect the legality or validity of such supplemental indenture.

(e)           The above provisions of this Section shall similarly apply
to successive reclassifications, changes, consolidations, mergers, statutory
share exchanges, combinations, sales and conveyances.

If this Section 11.05 applies to any event or
occurrence, Section 11.04 shall not apply.

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SECTION 11.06   Taxes
on Shares Issued.  The issue of stock
certificates on conversions of Securities shall be made without charge to the
converting Holder for any documentary, stamp or similar issue or transfer tax
in respect of the issue thereof, except for applicable withholding, if
any.  The Company shall not, however, be
required to pay any tax or duty which may be payable in respect of any transfer
involved in the issue and delivery of stock in any name other than that of the
Holder of any Securities converted, and the Company shall not be required to
issue or deliver any such stock certificate unless and until the Person or
Persons requesting the issue thereof shall have paid to the Company the amount
of such tax or shall have established to the satisfaction of the Company that
such tax has been paid.

SECTION 11.07   Reservation
of Shares, Shares to Be Fully Paid; Compliance with Governmental Requirements.  (a) 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 for the conversion of the
Securities from time to time as such Securities are presented for conversion.

(b)           Before taking any action which would cause an adjustment
increasing the Conversion Rate to an amount that would cause the Conversion
Price to be reduced below the then par value, if any, of the shares of Common
Stock issuable upon conversion of the Securities, the Company shall take all
corporate action which may, in the opinion of its counsel, be necessary in
order that the Company may validly and legally issue shares of such Common
Stock at such adjusted Conversion Rate.

(c)           (i) The Company covenants that all shares of Common Stock
which may be issued upon conversion of Securities shall upon issue be fully
paid and non-assessable by the Company and free from all taxes, liens and
charges with respect to the issue thereof.

(ii)           The
Company 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 shall in good
faith and as expeditiously as possible, to the extent then permitted by the
rules and interpretations of the Securities and Exchange Commission (or any
successor thereto), endeavor to secure such registration or approval, as the
case may be.

SECTION 11.08   Responsibility
of Trustee.  The Trustee and any
other Conversion Agent shall not at any time be under any duty or
responsibility to any Holder of Securities to determine the Conversion Rate or
whether any facts exist which may require any adjustment 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 or property,
which 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

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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 11.  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 11.05 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 11.05 or to any adjustment to be made
with respect thereto, but, subject to the provisions of Section 8.01, may
accept 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.

SECTION 11.09   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 11.04; or

(b)           the Company shall authorize the granting to the holders of
all of its Common Stock of rights or warrants to subscribe for or purchase any
share of any class or any other rights or warrants that would require an
adjustment in the Conversion Rate pursuant to Section 11.04(b); or

(c)           of any reclassification or reorganization 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, merger or
statutory share exchange 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 of Securities at his address appearing
on the register provided for in Section 2.03 of this Indenture, as promptly as
possible but in any event at least ten (10) days prior to the applicable date
hereinafter specified, a notice stating (x) the date on which a record is
to be taken for the purpose of such dividend, distribution of rights 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 (y) the date on which such
reclassification, consolidation, merger, or statutory share exchange, 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, or statutory share exchange, 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, or statutory share exchange, sale, transfer,
dissolution, liquidation or winding up.

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SECTION 11.10   Shareholder Rights Plan.  To the extent that the Company has a rights
plan in effect upon conversion of the Securities into Common Stock, a Holder
who converts Securities shall receive, in addition to the Common Stock, the
rights under the rights plan, unless prior to any conversion, the rights have
separated from the Common Stock, in which case the Conversion Rate shall be
adjusted at the time of separation as if the Company distributed to all Holders
of Common Stock, shares of the Company’s Capital Stock, evidences of
indebtedness or assets as described in Section 11.04(d) above, subject to
readjustment in the event of the expiration, termination or redemption of such
rights.  In lieu of any such adjustment,
the Company may amend such applicable shareholder rights plan to provide that
upon conversion of the Securities the Holders shall receive, in addition to the
Common Stock issuable upon such conversion, the rights which would have
attached to such Common Stock if the rights had not become separated from the
Common Stock under such applicable shareholder rights agreement.

SECTION 11.11   Unconditional
Right of Holders to Convert. 
Notwithstanding any other provision in this Indenture, the Holder of any
Security shall have the right, which is absolute and unconditional, to convert
its Security in accordance with this Article 11 and to bring an action for the
enforcement of any such right to convert, and such rights shall not be impaired
or affected without the consent of such Holder.

SECTION 11.12   Trustee
Adjustment Disclaimer.  The Trustee
has no duty to determine when an adjustment under this Article Eleven should be
made, how it should be made or what it should be.   The Trustee shall not be accountable for and
makes no representation as to the validity or value of any securities or assets
issued upon conversion of Securities. 
The Trustee shall not be responsible for the Company’s failure to comply
with this Article Eleven.  Each
Conversion Agent (other than the Company or an Affiliate of the Company) shall
have the same protection under this Section 11.12 as the Trustee.

ARTICLE
12

CONTINGENT INTEREST

SECTION 12.01   Contingent
Interest.  (a) The Company shall
pay Contingent Interest with respect to the Securities for any Contingent
Interest Period if the average Trading Price of Securities for the five
consecutive Trading Days ending on the third Trading Day immediately preceding
the first day of the relevant Contingent Interest Period equals or exceeds 120%
of the principal amount of such Securities.

(b)           The amount of Contingent Interest payable per $1,000
principal amount of Securities in respect of any Contingent Interest Period
shall equal 0.25% per annum calculated on the average Trading Price of $1,000
principal amount of Securities during the relevant five Trading Day period used
to determine whether Contingent Interest must be paid.

(c)           The Company shall be responsible for calculating the
amounts of Contingent Interest, if any, accrued on the Securities.  The Company shall make any such calculations
using the Trading Price provided by the Bid Solicitation Agent.  The Bid Solicitation Agent or the Trustee
shall be entitled in their sole discretion to consult with the

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Company and to request the assistance of the
Company in connection with the Bid Solicitation Agent’s or Trustee’s duties
pursuant to this Article 12, and the Company agrees, if requested by the Bid
Solicitation Agent or by the Trustee, to cooperate with, and provide assistance
to, the Trustee in carrying out its duties under this Article 12.

SECTION 12.02   Payment
of Contingent Interest.  Payments of
Contingent Interest shall be made in the same manner, at the same time, and
subject to the same restrictions, including those restrictions in respect of
accrued and unpaid interest on any Securities that are submitted for
conversion, as payments of Interest.

SECTION 12.03   Contingent
Interest Notification.  By the first
Business Day of a Contingent Interest Period for which Contingent Interest
shall be payable, the Company shall disseminate a press release containing this
information or publish the information on its Website or through such other
public medium as it may use at that time.

SECTION 12.04   Trustee
Contingent Interest Disclaimer.  The
Trustee has no duty to determine when Contingent Interest under this Article
Twelve should be paid.  The Trustee shall
not be accountable for and makes no representation as to the amount of
Contingent Interest payable in respect of any Contingent Interest Period.  The Trustee shall not be responsible for the
Company’s failure to comply with this Article Twelve.  Each Conversion Agent (other than the Company
or an Affiliate of the Company) shall have the same protection under this
Section 12.04 as the Trustee.

ARTICLE
13

MISCELLANEOUS

SECTION 13.01   Trust
Indenture Act Controls.  If any
provision of this Indenture limits, qualifies, or conflicts with another
provision which is required to be included in this Indenture by the TIA, the
required provision shall control.

SECTION 13.02   Notices.  Any request, demand, authorization, notice,
waiver, consent or communication by the Company or the Trustee to the other is
duly given if in writing and delivered in person or mailed by first-class mail,
postage prepaid, addressed as follows or transmitted by facsimile transmission
to the following facsimile numbers:

if to the Company:

Triumph Group, Inc.

1550 Liberty Ridge Drive, Suite 100

Wayne, Pennsylvania
19087,

Attention:  Corporate Secretary

Facsimile:  (610) 251-1556

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if to the Trustee:

The Bank of New York
Trust Company, N.A.

2 North LaSalle Street, Suite 1020

Chicago, IL 60602

Attn:  Corporate Trust Administration

Fax:  (312) 827-8542

The Company or the Trustee by notice given to the
other in the manner provided above may designate additional or different
addresses for subsequent notices or communications.

Any notice or communication given to a Securityholder
shall be delivered to the Securityholder, in accordance with the procedures of
the Registrar or by first-class mail, postage prepaid, at the Securityholder’s
address as it appears on the registration books of the Registrar and shall be
sufficiently given if so mailed within the time prescribed.

Failure to mail a notice or communication to a Securityholder
or any defect in it shall not affect its sufficiency with respect to other
Securityholders.  If a notice or
communication is mailed in the manner provided above, it is duly given, whether
or not received by the addressee; provided, however,
that no notice to the Trustee shall be deemed to be duly given unless and until
the Trustee actually receives same at the address given above.

If the Company mails a notice or communication to the
Securityholders, it shall mail a copy to the Trustee and each Registrar, Paying
Agent, Conversion Agent or co-registrar.

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

SECTION 13.04   Certificate
and Opinion as to Conditions Precedent. 
Upon any request or application by the Company to the Trustee to take
any action under this Indenture, the Company shall furnish to the Trustee:

(1)           an
Officer’s Certificate stating that, in the opinion of the signer, all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with; and

(2)           an
Opinion of Counsel stating that, in the opinion of such counsel, all such
conditions precedent have been complied with.

In any case where several matters are required to be
certified by, or covered by an opinion of, any specified Person, it is not
necessary that all such matters be certified by, or covered by the opinion of,
only one such Person, or that they be so certified or covered by only one
document, but one such Person may certify or give an opinion as to such matters
in one or several documents.

Any certificate or opinion of an Officer of the
Company may be based, insofar as it relates to legal matters, upon a
certificate of opinion of, or representations by, counsel, unless

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such Officer knows, or in the exercise of reasonable
care should know, that the certificate or opinion or representations with
respect to the matters upon which his certificate or opinion is based are
erroneous.  Any such certificate or
Opinion of Counsel may be based, and may state that it is so based, insofar as
it relates to factual matters, upon a certificate or opinion of, or
representations by, an Officer or Officers of the Company stating that the
information with respect to such factual matters is in possession of the
Company, unless such counsel knows, or in the exercise of reasonable care
should know, that the certificate of opinion or representations with respect to
such matters are erroneous.

Where any Person is required to make, give or execute
two or more applications, requests, consents, certificates, statements,
opinions or other instruments under this Indenture, they may, but need not, be
consolidated and form one instrument.

SECTION 13.05   Statements
Required in Certificate or Opinion. 
Each Officer’s Certificate or Opinion of Counsel with respect to
compliance with a covenant or condition provided for in this Indenture shall
include:

(1)           a
statement that each person making such Officer’s Certificate or Opinion of
Counsel has read such covenant or condition;

(2)           a
brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such Officer’s Certificate
or Opinion of Counsel are based;

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

(4)           a
statement that, in the opinion of such person, such covenant or condition has
been complied with.

SECTION 13.06   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 13.07   Rules
by Trustee, Paying Agent, Conversion Agent and Registrar.  The Trustee may make reasonable rules for
action by or a meeting of Securityholders. 
The Registrar, the Conversion Agent and the Paying Agent may make
reasonable rules for their functions.

SECTION 13.08   Legal
Holidays.  A “Legal
Holiday” is any day other than a Business Day.  If any specified date (including a date for
giving notice) is a legal holiday, the action shall be taken on the next
succeeding day that is not a legal holiday, and, if the action to be taken on
such date is a payment in respect of the Securities, no interest shall accrue
with respect to such payment for the intervening period.

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SECTION 13.09   Governing
Law.  THIS INDENTURE SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS RULES THEREOF.

SECTION 13.10   No
Recourse Against Others.  A director,
officer, incorporator, employee or stockholder, as such, of the Company shall
not have any liability for any obligations of the Company under the Securities
or this Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation.  By
accepting a Security, each Securityholder shall waive and release all such
liability.  The waiver and release shall
be part of the consideration for the issue of the Securities.

SECTION 13.11   Successors.  All agreements of the Company in this Indenture
and the Securities shall bind its successor. 
All agreements of the Trustee in this Indenture shall bind its
successor.

SECTION 13.12   Multiple
Originals.  The parties may sign any
number of copies of this Indenture.  Each
signed copy shall be an original, but all of them together represent the same
agreement.  One signed copy is enough to
prove this Indenture.

SECTION 13.13   Execution
in Counterparts.  This Indenture may
be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement.  Delivery of an executed
counterpart of a signature page to this Indenture by telecopier shall be as
effective as delivery of a manually executed counterpart of this Indenture.

SECTION 13.14   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 (and, pursuant to
Article 4, the holders of Senior Indebtedness and Designated Senior
Indebtedness) and the Holders, any benefit or any legal or equitable
right, remedy or claim under this Indenture.

SECTION 13.15   No
Adverse Interpretation of Other Agreements. 
This Indenture may not be used to interpret any other indenture, loan or
debt agreement of the Company or of any other Person.  Any such indenture, loan or debt agreement
may not be used to interpret this Indenture.

SECTION 13.16   Calculations
in Respect of Securities.  The
Company or its agents shall be responsible for making all calculations called
for under the Securities including, but not limited to, determination of the
market prices for the Securities and of the Common Stock and the amounts of
Interest, Contingent Interest and Additional Amounts, if any, accrued on the
Securities.  The Company shall make all
calculations in good faith.  Any
calculations made in good faith and without manifest error shall be final and
binding on Holders of the Securities. 
The Company or its agents shall be required to deliver to the Trustee
and the Conversion Agent a schedule of its calculations and each of the Trustee
and the Conversion Agent shall be entitled to conclusively rely upon the
accuracy of such calculations without

 85
 

 

independent
verification.  The Trustee will forward
such calculations to any Holder upon the request of such Holder.

SECTION 13.17   Table
of Contents, Cross-Reference Sheet and Headings.  The table of contents, cross-reference sheet
and headings of the Articles and Sections of this Indenture have been inserted
for convenience of reference only, are not intended to be considered a part
hereof and shall not modify or restrict any of the terms or provisions hereof.

SECTION 13.18   Waiver
of Jury Trial.  EACH OF THE COMPANY
AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR THE TRANSACTION
CONTEMPLATED HEREBY.

SECTION 13.19   Force
Majeure.  In no event shall the
Trustee be responsible or liable for any failure or delay in the performance of
its obligations hereunder arising out of or caused by, directly or indirectly,
forces beyond its control, including, without limitation, strikes, work
stoppages, accidents, acts of war or terrorism, civil or military disturbances,
nuclear or natural catastrophes or acts of God, and interruptions, loss or
malfunctions of utilities, communications or computer (software and hardware)
services; it being understood that the Trustee shall use reasonable efforts
which are consistent with accepted practices in the banking industry to resume
performance as soon as practicable under the circumstances.

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IN WITNESS WHEREOF, the undersigned, being duly
authorized, have executed this Indenture on behalf of the respective parties
hereto as of the date first above written.

	
   

  	
  TRIUMPH GROUP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/John R. Bartholdson

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John R. Bartholdson

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President,

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer & Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK TRUST

  COMPANY, N.A., as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/D. G. Donovan

  	
   

  
	
   

  	
   

  	
  Name: D. G. Donovan

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  	
   

  
						

 

EXHIBIT A

[FORM OF FACE OF GLOBAL SECURITY]

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

TRANSFERS OF THIS GLOBAL
SECURITY SHALL BE LIMITED TO TRANSFERS TO NOMINEES OF THE DEPOSITORY TRUST
COMPANY, OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF
PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN
ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN ARTICLE TWO OF THE INDENTURE
REFERRED TO ON THE REVERSE HEREOF.

NEITHER THIS SECURITY NOR
THE SHARES OF COMMON STOCK ISSUABLE ON CONVERSION OF THIS SECURITY HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION.  NEITHER THIS SECURITY NOR THE SHARES OF
COMMON STOCK ISSUABLE ON CONVERSION OF THIS SECURITY, NOR ANY INTEREST OR
PARTICIPATION HEREIN OR THEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED,
PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH
REGISTRATION.  THE HOLDER OF THIS
SECURITY, BY ITS ACCEPTANCE HEREOF, (1) REPRESENTS THAT IT IS A “QUALIFIED
INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT (“RULE
144A”)); (2) AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR
ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE
TRANSFER THIS SECURITY OR ANY COMMON STOCK ISSUABLE ON CONVERSION OF THIS
SECURITY, PRIOR TO THE EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO SALES OF
THIS SECURITY UNDER RULE 144(k) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR
PROVISION), ONLY (A) TO TRIUMPH GROUP, INC. (THE “ISSUER”), (B) UNDER
A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES
ACT (AND WHICH CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER),
(C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE UNDER RULE 144A,
IN COMPLIANCE WITH RULE 144A TO A PERSON IT REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE

 A-1
 

 

ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM
NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A OR
(D) UNDER ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT, SUBJECT TO THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO
ANY SUCH OFFER, SALE OR TRANSFER UNDER CLAUSE (D) TO REQUIRE THE DELIVERY
OF AN OPINION OF COUNSEL, CERTIFICATION AND/ OR OTHER INFORMATION SATISFACTORY
TO EACH OF THEM; AND (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO
WHOM THIS SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS
LEGEND.  THIS LEGEND WILL BE REMOVED ON
THE EARLIER OF THE TRANSFER OF THIS SECURITY UNDER CLAUSE 2(B) ABOVE OR ON
ANY TRANSFER OF THIS SECURITY UNDER RULE 144 UNDER THE SECURITIES ACT (OR ANY
SUCCESSOR PROVISION);

The foregoing legend may
be removed from this Security upon the earlier of the Resale Restriction
Termination Date or the transfer of the Securities pursuant to
clause 2(C)or 2(D) above.

THIS SECURITY IS BEING
ISSUED WITH AN INDETERMINATE AMOUNT OF ORIGINAL ISSUE DISCOUNT FOR U.S. FEDERAL
INCOME TAX PURPOSES.  THE ISSUE DATE IS
SEPTEMBER 18, 2006, AND THE YIELD TO MATURITY FOR PURPOSES OF ACCRUING ORIGINAL
ISSUE DISCOUNT IS 8.375% PER ANNUM, COMPOUNDED SEMI-ANNUALLY.  THE COMPANY AGREES TO PROVIDE PROMPTLY TO THE
HOLDER OF THIS SECURITY, UPON WRITTEN REQUEST, THE PROJECTED PAYMENT SCHEDULE.  ANY SUCH WRITTEN REQUEST SHOULD BE SENT TO
THE COMPANY AT THE FOLLOWING ADDRESS: 
TRIUMPH GROUP, INC., 1550 LIBERTY RIDGE DRIVE, SUITE 100, WAYNE,
PENNSYLVANIA 19087, ATTENTION:  CORPORATE
SECRETARY.

Pursuant to Section 2.14
of the Indenture, the foregoing Legend is required for U.S. federal income tax
purposes.

 A-2
 

 

Triumph Group,
Inc.

2.625% Convertible Senior Subordinated Notes due 2026

	
  CUSIP: [     ]

  	
   

  	
   

  
	
  ISSUE DATE:
  September 18, 2006

  	
   

  	
  Principal Amount: $

  
	
  $201,250,000

  	
   

  	
   

  
	
  No. A-1

  	
   

  	
   

  

 

TRIUMPH GROUP, INC., a
Delaware corporation, promises to pay to Cede & Co. or registered assigns,
the principal amount of $201,250,000, on October 1, 2026.

Interest Rate:  2.625% per year.

Interest Payment
Dates:  April 1 and October 1 of
each year, commencing April 1, 2007.

Interest Record
Date:  March 15 and
September 15 of each year.

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

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

	
  Dated: [     ],
  2006

  	
   

  	
  TRIUMPH GROUP, INC. 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 

  
	
   

  	
   

  	
   

  	
  Title:

  

 

TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

The Bank of New York
Trust Company, N.A.,

as
Trustee, certifies that this is one

of the
Securities referred to in the

within-mentioned Indenture.

	
  By

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated: [    ],
  2006

  	
   

  	
   

  

 

 A-3
 

 

[FORM OF REVERSE
OF GLOBAL SECURITY]

2.625% Convertible Senior Subordinated Notes due 2026

This Security is one of a
duly authorized issue of 2.625% Convertible Senior Subordinated Notes due 2026
(the “SECURITIES”) of Triumph Group, Inc., a Delaware corporation
(including any successor corporation under the Indenture hereinafter referred
to, the “COMPANY”), issued under an Indenture, dated as of September 18, 2006
(the “INDENTURE”), between the Company and The Bank of New York Trust Company,
N.A., as trustee (the “TRUSTEE”).  The
terms of the Security include those stated in the Indenture, those made part of
the Indenture by reference to the Trust Indenture Act of 1939, as amended (“TIA”),
and those set forth in this Security. 
This Security is subject to all such terms, and Holders are referred to
the Indenture and the TIA for a statement of all such terms.  To the extent permitted by applicable law, in
the event of any inconsistency between the terms of this Security and the terms
of the Indenture, the terms of the Indenture shall control.  Capitalized terms used but not defined herein
have the meanings assigned to them in the Indenture unless otherwise indicated.

(5)           INTEREST.

The Securities shall bear
Interest on the principal amount thereof at a rate of 2.625% per year.  The Company shall pay Contingent Interest, if
any, as set forth in the Indenture and in Section 3 hereof.  The Company shall also pay Additional
Amounts, if any, as set forth in Section 5.07 of the Indenture and the
Registration Rights Agreement.

Interest shall be payable
semi-annually in arrears on each Interest Payment Date to Holders at the close
of business on the preceding Interest Record Date.  Interest shall be computed on the basis of a
360-day year comprised of twelve 30 day months.

The Company shall pay
Interest to the Securityholder of record on the Interest Record Date even if
the Company elects to redeem or Securityholders elect to require the Company to
repurchase, the Securities on a date that is after an Interest Record Date but
on or prior to the corresponding Interest Payment Date.  In that instance, the Company shall pay
accrued and unpaid Interest on the Securities being redeemed to, but not
including, the Redemption Date, the Repurchase Date or the Fundamental Change
Repurchase Date, as the case may be, to the Securityholder of record on the
Interest Record Date.

If the principal amount
of any Security, or any accrued and unpaid Interest, Contingent Interest, if
any, or Additional Amounts, if any, are not paid when due (whether upon
acceleration pursuant to Section 7.02 of the Indenture, upon the date set
for payment of the Redemption Price pursuant to Section 5 hereof, upon the
date set for payment of the Repurchase Price or Fundamental Change Repurchase
Price pursuant to Section 6 hereof, upon the Stated Maturity of the
Securities, upon the Interest Payment Dates or upon the Additional Amounts
Payment Dates as defined in the Registration Rights Agreement), then in each
such case the overdue amount shall, to the extent permitted by law, bear cash
interest at the rate of 2.625% per annum, compounded semiannually, which
interest shall accrue from the date such overdue amount was originally due to
the date payment of such amount, including interest thereon, has been made or

 A-4
 

 

duly provided for. 
All such interest shall be payable in cash on demand but if not so
demanded shall be paid quarterly to the Holders on the last day of each
quarter.

(6)           METHOD OF PAYMENT.

Except as provided below,
the Company shall pay Interest, Contingent Interest, if any, and Additional
Amounts, if any, on (i) Global Securities, to DTC in immediately available
funds, (ii) any Certificated Security having an aggregate principal amount
of $2,000,000 or less, by check mailed to the Holder of such Security and
(iii) any Certificated Security having an aggregate principal amount of
more than $2,000,000, by wire transfer in immediately available funds if
requested in writing by the Holder of any such Security as least five business
days prior to the relevant Interest Payment Date.

At Stated Maturity, the
Company shall pay Interest on Certificated Securities at the Company’s office
or agency maintained for that purpose, which initially shall be the office or
agency of the Trustee located at 2 North LaSalle Street, Suite 1020, Chicago,
IL, 60602.

Subject to the terms and
conditions of the Indenture, the Company shall make payments in cash in respect
of Redemption Prices, Repurchase Prices, Fundamental Change Repurchase Prices
and at Stated Maturity to Holders who surrender Securities to a Paying Agent to
collect such payments in respect of the Securities.  The Company shall pay cash amounts in money
of the United States that at the time of payment is legal tender for payment of
public and private debts.  However, the
Company may make such cash payments by check payable in such money.

(7)           CONTINGENT INTEREST

The Company shall pay
Contingent Interest under the circumstances and in the amounts described in
Article 12 of the Indenture.  Such
Contingent Interest, if any, shall be payable in the same manner, at the same
time, and subject to the same restrictions, including those restrictions in
respect of accrued and unpaid interest on any Securities that are submitted for
conversion, as payments of Interest.

(8)           INDENTURE.

The Securities are
general unsecured obligations of the Company limited to $175,000,000 aggregate
principal amount (or, to the extent the Initial Purchaser exercises its
over-allotment option, $201,250,000). 
The Indenture does not limit other indebtedness of the Company, secured
or unsecured.

(9)           REDEMPTION AT THE OPTION OF THE
COMPANY.

No sinking fund is
provided for the Securities.  The
Securities are redeemable for cash at the option of the Company, in whole or in
part, at any time or from time to time on or after October 6, 2011 upon not
less than 30 nor more than 60 days’ notice by mail for a redemption price (the “Redemption Price”) equal to the
principal amount of those Securities plus accrued and unpaid Interest, accrued
and unpaid Contingent Interest, if any, and Additional Amounts, if any, on
those Securities up to, but not including, the Redemption Date.

 A-5
 

 

In no event shall any
Security be redeemable before October 6, 2011.

(10)         PURCHASE BY THE COMPANY AT THE OPTION
OF THE HOLDER.

Subject to the terms and
conditions of the Indenture, the Company shall become obligated to repurchase
for cash, at the option of any Holder, all or any portion of the Securities
held by such Holder on October 1, 2011, October 1, 2016 and October 1, 2021 in
integral multiples of $1,000 at a Repurchase Price equal to 100% of the
principal amount of those Securities plus accrued and unpaid Interest, accrued
and unpaid Contingent Interest, if any, and Additional Amounts, if any, on
those Securities up to, but not including, the Repurchase Date.  To exercise such right, a Holder shall
deliver to the Paying Agent a Repurchase Notice containing the information set
forth in the Indenture, at any time from the opening of business on the date
that is 20 Business Days prior to such Repurchase Date until the close of
business on the Repurchase Date, and shall deliver the Securities to the Paying
Agent as set forth in the Indenture.

At the option of any
Holder and subject to the terms and conditions of the Indenture, the Company
shall become obligated to repurchase for cash the Securities held by such
Holder after the occurrence of a Fundamental Change for a Fundamental Change
Repurchase Price equal to 100% of the principal amount of those Securities plus
accrued and unpaid Interest, accrued and unpaid Contingent Interest, if any,
and Additional Amounts, if any, on those Securities up to, but not including,
the Fundamental Change Repurchase Date. 
To exercise such right, a Holder shall deliver to the Paying Agent a
Fundamental Change Repurchase Notice containing the information set forth in
the Indenture at any time on or prior to the close of business on the
Fundamental Change Repurchase Date and shall deliver the Securities to the
Paying Agent as set forth in the Indenture.

Holders have the right to
withdraw any Repurchase Notice or Fundamental Change Repurchase Notice, as the
case may be, by delivering to the Paying Agent a written notice of withdrawal
in accordance with the provisions of the Indenture.

If cash sufficient to pay
the Repurchase Price or Fundamental Change Repurchase Price, as the case may
be, of all Securities or portions thereof to be purchased as of the Repurchase
Date or the Fundamental Change Repurchase Date, as the case may be, is
deposited with the Paying Agent, prior to or on the Business Day following the
Repurchase Date or the Fundamental Change Repurchase Date, as the case may be,
Interest, Contingent Interest, if any, and Additional Amounts, if any, shall
cease to accrue on such Securities (or portions thereof) on and following
such Repurchase Date or Fundamental Change Repurchase Date, and the Holder
thereof shall have no other rights as such other than the right to receive the
Repurchase Price or Fundamental Change Repurchase Price upon surrender of such
Security.

(11)         NOTICE OF REDEMPTION.

Notice of redemption
pursuant to Section 3.01 of this Security shall be mailed at least 30 days
but not more than 60 days before the Redemption Date to each Holder of
Securities to be redeemed at the Holder’s registered address.  If money sufficient to pay the Redemption
Price of

 A-6

 

all Securities (or portions thereof) to be
redeemed on the Redemption Date is deposited with the Paying Agent prior to or
on the Redemption Date, Interest, Contingent Interest, if any, and Additional
Amounts, if any, shall cease to accrue on such Securities or portions thereof
on and following such Redemption Date, and the Holder thereof shall have no
other rights as such other than the right to receive the Redemption Price under
surrender of such Security.  Securities
in denominations larger than $1,000 principal amount may be redeemed in part
but only in integral multiples of $1,000 of principal amount.

(12)         CONVERSION.

Subject to the occurrence
of certain events and in compliance with the provisions of the Indenture
(including, without limitation, the conditions to conversion of this Security
set forth in Section 11.01 thereof), a Holder is entitled, at such Holder’s
option, to convert the Holder’s Security (or any portion of the principal
amount thereof that is $1,000 or an integral multiple of $1,000), into cash or
a combination of cash and fully paid and nonassessable shares of Common Stock
at the Conversion Rate in effect at the time of conversion.

The Company shall notify
Holders of any event triggering the right to convert the Securities as
specified in the Indenture.

A Security in respect of
which a Holder has delivered a Repurchase Notice or Fundamental Change
Repurchase Notice, as the case may be, exercising the option of such Holder to
require the Company to purchase such Security, may be converted only if such
Repurchase Notice or Fundamental Change Repurchase Notice, as the case may be,
is withdrawn in accordance with the terms of the Indenture.

The initial Conversion
Rate is 18.3655 shares of Common Stock per $1,000 principal amount, subject to
adjustment in certain events described in the Indenture.  The Conversion Rate shall not be adjusted for
any accrued and unpaid Interest, accrued and unpaid Contingent Interest, if any
or accrued and unpaid Additional Amounts, if any.  Upon conversion, no payment shall be made by
the Company with respect to accrued and unpaid Interest and accrued and unpaid
Contingent Interest, if any.  Instead,
such amount shall be deemed paid by the cash and shares of Common Stock, if
any, delivered upon conversion of any Security. 
A Holder shall receive, however, accrued and unpaid Additional Amounts,
if any.  In addition, no payment or
adjustment shall be made in respect of dividends on the Common Stock, except as
set forth in the Indenture.

In addition, following
certain corporate transactions as set forth in Section 11.01(b) of the
Indenture that occur prior to October 6, 2011 and that also constitute a Change
of Control, a Holder who elects to convert its Securities in connection with
such corporate transaction shall be entitled to receive Additional Shares of
Common Stock upon conversion (subject to the Company’s ability to settle the
conversion entirely in cash as set forth in the Indenture).  Notwithstanding the previous sentence, in the
case of a Public Acquirer Change of Control, the Company may, in lieu of
increasing the Conversion Rate by Additional Shares, elect to adjust the
Conversion Rate and Conversion Obligation such that from and after the
effective date of such Public Acquirer Change of Control, Holders of the
Securities shall be entitled to convert their

 A-7
 

 

Securities into a number of shares of Public Acquirer
Common Stock, as determined pursuant to Section 11.01(d)of the Indenture.

To surrender a Security
for conversion, a Holder must (1) complete and manually sign the
Conversion Notice attached hereto (or complete and manually sign a facsimile of
such notice) and deliver such notice to the Conversion Agent,
(2) surrender the Security to the Conversion Agent, (3) if required,
furnish appropriate endorsements and transfer documents, (4) if required
by Section 11.02(g) of the Indenture, pay Interest and Contingent Interest
and (5) pay any transfer or similar tax, if required.

No fractional shares of
Common Stock shall be issued upon conversion of any Security.  Instead of any fractional share of Common
Stock that would otherwise be issued upon conversion of such Security, the
Company shall pay a cash adjustment as provided in the Indenture.

If the Company engages in
any reclassification of the Common Stock, (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 is party to a
consolidation, merger, binding share exchange or transfer of all or substantially
all of its assets, and as a result of any such event the Holders of Common
Stock would be entitled to receive Exchange Property for their Common Stock,
upon conversion of the Securities after the effective date of such event, the
Conversion Obligation and the Conversion Settlement Distribution shall be based
on the applicable Conversion Rate and the Exchange Property, in each case in
accordance with the Indenture.

(13)         PAYING AGENT, CONVERSION AGENT AND
REGISTRAR.

Initially, the Trustee
shall act as Paying Agent, Conversion Agent and Registrar.  The Company may appoint and change any Paying
Agent, Conversion Agent or Registrar without notice, other than notice to the
Trustee.  The Company or any of its
Subsidiaries or any of their Affiliates may act as Paying Agent, Conversion
Agent or Registrar.

(14)         DENOMINATIONS; TRANSFER; EXCHANGE.

The Securities are in
fully registered form, without coupons, in denominations of $1,000 of principal
amount and integral multiples of $1,000. 
A Holder may transfer or exchange Securities in accordance with the
Indenture.  The Registrar may require a
Holder, among other things, to furnish appropriate endorsements and transfer
documents and to pay any taxes and fees required by law or permitted by the
Indenture.  The Registrar need not
transfer or exchange any Securities selected for redemption (except, in the
case of a Security to be redeemed in part, the portion of the Security not to
be redeemed) for a period of 15 days before the mailing of a notice of
redemption of Securities to be redeemed or any Securities in respect of which a
Repurchase Notice or Fundamental Change Repurchase Notice has been given and
not withdrawn (except, in the case of a Security to be purchased in part, the
portion of the Security not to be purchased).

 A-8
 

 

(15)         PERSONS DEEMED OWNERS.

The registered Holder of
this Security may be treated as the owner of this Security for all purposes.

(16)         UNCLAIMED MONEY OR SECURITIES.

The Trustee and the
Paying Agent shall return to the Company upon written request any money or
securities held by them for the payment of any amount with respect to the
Securities that remains unclaimed for two years, subject to applicable
abandoned property law.  After return to
the Company, Holders entitled to the money or securities must look to the
Company for payment as general creditors unless an applicable abandoned
property law designates another person.

(17)         AMENDMENT; WAIVER.

Subject to certain
exceptions set forth in the Indenture, (i) the Indenture or the Securities
may be amended with the written consent of the Holders of at least a majority
in aggregate principal amount of the outstanding Securities and
(ii) certain Events of Defaults may be waived with the written consent of
the Holders of a majority in aggregate principal amount of the outstanding
Securities.  Without the consent of any
Securityholder, the Company and the Trustee may amend the Indenture or the
Securities in certain respects.

(18)         DEFAULTS AND REMEDIES.

If any Event of Default
with respect to Securities shall occur and be continuing, the principal amount
of the Securities and any accrued and unpaid Interest, accrued and unpaid
Contingent Interest, if any, and accrued and unpaid Additional Amounts, if any,
on all the Securities may be declared due and payable in the manner and with
the effect provided in the Indenture and shall be subject to Section 15 below.

(19)         SUBORDINATION.

This Note is subordinated
as set forth in the Indenture to all Obligations in respect of Senior
Indebtedness (including all interest accrued or accruing on Senior Indebtedness
after the commencement of any bankruptcy, insolvency or reorganization or
similar case or proceeding at the contract rate (including, without limitation,
any contract rate applicable upon default) specified in the relevant
documentation, whether or not the claim for the interest is allowed as a claim
in the case or proceeding with respect to the Senior Indebtedness).

(20)         TRUSTEE DEALINGS WITH THE COMPANY.

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

 A-9
 

 

(21)         CALCULATIONS IN RESPECT OF SECURITIES.

The Company or its
agents shall be responsible for making all calculations called for under the
Securities including, but not limited to, determination of the market prices
for the Securities and of the Common Stock and the amounts of Contingent
Interest and Additional Amounts, if any, accrued on the Securities.  Any calculations made in good faith and without
manifest error shall be final and binding on Holders of the Securities.  The Company or its agents shall be required
to deliver to the Trustee a schedule of its calculations and the Trustee shall
be entitled to conclusively rely upon the accuracy of such calculations without
independent verification.

(22)         U.S. FEDERAL INCOME TAX TREATMENT.

For purposes of Sections
1272, 1273 and 1275 of the Code, this Security is being issued with an
indeterminate amount of original issue discount and the issue date of this
Security is September 18, 2006.  In
addition, this Security is subject to the Treasury Regulations governing
contingent payment debt instruments (the “contingent debt regulations”).  For purposes of Sections 1272, 1273 and 1275
of the Code, the comparable yield of this Security is 8.375% per annum,
compounded semi-annually (which shall be treated as the yield to maturity for
U.S. federal income tax purposes).

The Company and each
Holder, by acquiring a beneficial interest in a Security, agree (i) to
treat the Security as indebtedness for U.S. federal income tax purposes that is
subject to the contingent debt regulations, (ii) that each Holder shall be
bound by the Company’s application of the contingent debt regulations to the
Security, including the Company’s determination of the “comparable yield” and “projected
payment schedule” within the meaning of the contingent debt regulations,
(iii) to treat the cash and the fair market value of any Common Stock
received upon the conversion of the Security as a contingent payment for
purposes of the contingent debt regulations, (iv) to accrue interest with
respect to the outstanding Security as original issue discount according to the
“noncontingent bond method” set forth in the contingent debt regulations, using
the comparable yield of 8.375% per annum, compounded semi-annually, and
(v) that the Company and each Holder will not take any position on any
U.S. federal income tax return that is inconsistent with (i), (ii), (iii) or
(iv) unless required by applicable law.

The Company
acknowledges and agrees, and each Holder and any beneficial holder of a
Security by its purchase thereof shall be deemed to acknowledge and agree, that
(i) the comparable yield means the annual yield the Company would pay, as of
the Issue Date, on a fixed rate, nonconvertible debt security with no
contingent payments, but with terms and conditions otherwise comparable to
those of the Securities, (ii) the schedule of projected payments is determined
on the basis of an assumption of a constant annual growth rate of the stock price
and is not determined for any purpose other than for the determination of
interest accruals and adjustments thereof in respect of the Securities for U.S.
federal income tax purposes and (iii) the comparable yield and the schedule of
projected payments do not constitute a projection or representation regarding
the amounts payable on the Securities.

The Company agrees to
provide promptly to the Holder of this Security, upon written request, the
projected payment schedule.  Any such
written request should be sent to the Company at the following address:  Triumph Group, Inc., 1550 Liberty Ridge
Drive, Suite 100, Wayne, Pennsylvania 
19087, Attention:  Corporate
Secretary.

 A-10
 

 

(23)         NO
RECOURSE AGAINST OTHERS.

A director, officer,
incorporator, employee or shareholder, as such, of the Company shall not have
any liability for any obligations of the Company under the Securities or the
Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation.  By
accepting a Security, each Securityholder waives and releases all such
liability.  The waiver and release are
part of the consideration for the issue of the Securities.

(24)         AUTHENTICATION.

This Security shall not
be valid until an authorize signatory of the Trustee manually signs the Trustee’s
Certificate of Authentication on the other side of this Security.

(25)         ABBREVIATIONS.

Customary abbreviations
may be used in the name of a Securityholder or an assignee, such as TEN COM
(=tenants in common), TEN ENT (=tenants by the entireties), JT TEN (=joint
tenants with right of survivorship and not as tenants in common), CUST
(=custodian), and U/G/M/A (=Uniform Gift to Minors Act).

(26)         GOVERNING LAW.

THE LAWS OF THE STATE OF
NEW YORK SHALL GOVERN THE INDENTURE AND THIS SECURITY, WITHOUT GIVING EFFECT TO
THE CONFLICT OF LAWS RULES THEREOF.

(27)         COPY OF INDENTURE.

The Company shall furnish
to any securityholder upon written request and without charge a copy of the
Indenture which has in it the text of this Security in larger type.  Requests may be made to:

Triumph
Group, Inc.

1550
Liberty Ridge Drive, Suite 100,

Wayne,
Pennsylvania  19087,

Attention:  Corporate Secretary

Facsimile
No.:  (610) 251-1556

(28)         REGISTRATION RIGHTS.

The Holders of the
Securities are entitled to the benefits of a Registration Rights Agreement,
dated September 18, 2006, between the Company and Banc of America Securities
LLC, as initial purchaser, including the right to receive Additional Amounts
upon a Registration Default (as defined in such agreement).  The Company shall make payments of Additional
Amounts on the Additional Amounts Payment Dates (as defined in the Registration
Rights Agreement), but otherwise in accordance with the provisions set forth
herein for the payment of Interest.

 A-11
 

 

 

	
  ASSIGNMENT FORM

  	
   

  	
  CONVERSION NOTICE

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  To assign
  this Security, fill in the form below:

  	
   

  	
  To convert this Security, check the box o

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  I or we assign and transfer this Security to

  	
   

  	
  To convert only part of this Security,
  state the principal 

  	
   

  
	
   

  	
   

  	
  amount to be converted (which must be
  $1,000 or an integral 

  	
   

  
	
   

  	
   

  	
  multiple of $1,000):

  	
   

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

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If you want the stock certificate made out
  in another person’s 

  	
   

  
	
   

  	
   

  	
  name fill in the form below:

  	
   

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

  	
   

  	
   

  	
   

  
	
  and
  irrevocably appoint

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  agent to transfer this Security on the 

  	
   

  	
   

  	
   

  
	
  books of the Company. The agent may
  substitute another 

  	
   

  	
  (Insert the other person’s soc. sec. tax
  ID no.)

  	
   

  
	
  to act for him.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

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

  	
   

  

 

 

	
  Date:

  	
   

  	
   

  	
  Your Signature:

  	
   

  	
   

  

 

(Sign exactly as your name appears on the
other side of this Security)

	
  Signature
  Guaranteed

  
	
   

  
	
   

  	
   

  

 

Participant in a Recognized Signature

Guarantee Medallion Program

	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  
				

 

 A-12
 

 

 

SCHEDULE OF INCREASES AND DECREASES

OF GLOBAL SECURITY

Initial Principal Amount of Global
Security:                                 
($                       ).

	
  Date

  	
   

  	
  Amount
  of

  Increase in

  Principal

  Amount of

  Global

  Security

  	
   

  	
  Amount
  of

  Decrease in

  Principal

  Amount of

  Global

  Security

  	
   

  	
  Principal

  Amount of

  Global

  Security After

  Increase or

  Decrease

  	
   

  	
  Notation
  by

  Registrar or

  Security

  Custodian

  
	
            

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
             

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
              

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 A-13

EXHIBIT B

[FORM OF
FACE OF CERTIFICATED SECURITY]

NEITHER THIS SECURITY NOR THE SHARES OF COMMON STOCK
ISSUABLE ON CONVERSION OF THIS SECURITY HAVE BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES
LAWS OF ANY STATE OR OTHER JURISDICTION. 
NEITHER THIS SECURITY NOR THE SHARES OF COMMON STOCK ISSUABLE ON
CONVERSION OF THIS SECURITY, NOR ANY INTEREST OR PARTICIPATION HEREIN OR
THEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR
OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH
TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION.  THE HOLDER OF THIS SECURITY, BY ITS
ACCEPTANCE HEREOF, (1) REPRESENTS THAT IT IS A “QUALIFIED INSTITUTIONAL
BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”));
(2) AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR
WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER THIS
SECURITY OR ANY COMMON STOCK ISSUABLE ON CONVERSION OF THIS SECURITY, PRIOR TO
THE EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO SALES OF THIS SECURITY UNDER
RULE 144(k)UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION), ONLY
(A) TO TRIUMPH GROUP, INC. (THE “ISSUER”), (B) UNDER A REGISTRATION
STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH
CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER), (C) FOR SO LONG
AS THE SECURITIES ARE ELIGIBLE FOR RESALE UNDER RULE 144A, IN COMPLIANCE
WITH RULE 144A TO A PERSON IT REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
BEING MADE IN RELIANCE ON RULE 144A OR (D) UNDER ANOTHER AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO
THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
UNDER CLAUSE (D) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/ OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM; AND
(3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS SECURITY IS
TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.  THIS LEGEND WILL BE REMOVED ON THE EARLIER OF
THE TRANSFER OF THIS SECURITY UNDER CLAUSE 2(B) ABOVE OR ON ANY TRANSFER
OF THIS SECURITY UNDER RULE 144 UNDER THE SECURITIES ACT (OR ANY SUCCESSOR
PROVISION);

The foregoing legend may
be removed from this Security upon the earlier of the Resale Restriction
Termination Date or the transfer of the Securities pursuant to clause 2(C)
or 2(D) above.

THIS
SECURITY IS BEING ISSUED WITH AN INDETERMINATE AMOUNT OF ORIGINAL ISSUE
DISCOUNT.  THE ISSUE DATE IS SEPTEMBER 18, 2006, AND THE

 

 B-1

YIELD TO MATURITY FOR PURPOSES OF ACCRUING ORIGINAL
ISSUE DISCOUNT IS 8.375% PER ANNUM, COMPOUNDED SEMI-ANNUALLY.  THE COMPANY AGREES TO PROVIDE PROMPTLY
TO THE HOLDER OF THIS SECURITY, UPON WRITTEN REQUEST, THE PROJECTED PAYMENT
SCHEDULE.  ANY SUCH WRITTEN REQUEST SHOULD
BE SENT TO THE COMPANY AT THE FOLLOWING ADDRESS:  TRIUMPH GROUP, INC., 1550 LIBERTY RIDGE
DRIVE, SUITE 100, WAYNE, PENNSYLVANIA 
19087, ATTENTION:  CORPORATE
SECRETARY.

Pursuant to Section 2.14
of the Indenture, the foregoing legend is required for U.S. federal income tax
purposes.

 B-2
 

 

TRIUMPH GROUP,
INC.

2.625%
Convertible Senior Subordinated Notes due 2026

CUSIP:                             

	
  ISSUE DATE: September 18,
  2006

  	
   

  	
  Principal Amount: $[     ]

  

No. [           ]

TRIUMPH GROUP, INC., a
Delaware corporation, promises to pay to                            
or registered assigns, the principal amount of                            ,
on October 1, 2026.

Interest Rate:  2.625% per year.

Interest Payment
Dates:  April 1 and October 1 of
each year, commencing April 1, 2007.

Interest Record
Date:  March 15 and
September 15 of each year.

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

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

	
  Dated:
  [            ]

  	
   

  	
  TRIUMPH GROUP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

	
   

  	
   

  
	
  The Bank of New York Trust
  Company, N.A.,

  

as
Trustee, certifies that this is one

of the
Securities referred to in the

within-mentioned Indenture.

	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  
				

Dated:
[            ]

 B-3
 

 

[FORM OF REVERSE
OF CERTIFICATED SECURITY IS IDENTICAL TO EXHIBIT A]

 B-4

EXHIBIT C

TRIUMPH
GROUP, INC.

2.625%
Convertible Senior Subordinated Notes due 2026

Transfer
Certificate

In connection with any
transfer of any of the Securities within the period prior to the expiration of
the holding period applicable to the sales thereof under Rule 144(k) under
the Securities Act of 1933, as amended (the “SECURITIES ACT”) (or any
successor provision), the undersigned registered owner of this Security hereby
certifies with respect to $                                       
principal amount of the above-captioned Securities presented or surrendered on
the date hereof (the “SURRENDERED SECURITIES”) for registration of
transfer, or for exchange or conversion where the securities issuable upon such
exchange or conversion are to be registered in a name other than that of the
undersigned registered owner (each such transaction being a “TRANSFER”), that
such transfer complies with the restrictive legend set forth on the face of the
Surrendered Securities for the reason checked below:

o                                    A transfer of the
Surrendered Securities is made to the Company or any subsidiaries; or

o                                    The transfer of the
Surrendered Securities is pursuant to an effective registration statement under
the Securities Act; or

o                                    The transfer of the
Surrendered Securities complies with Rule 144A under the Securities Act;
or

o                                    The transfer of the
Surrendered Securities is pursuant to Rule 144 under the Securities Act
and each of the conditions set forth in such rule have been met;

and unless the box
below is checked, the undersigned confirms that, to the undersigned’s
knowledge, such Securities are not being transferred to an
“affiliate” of the Company as defined in Rule 144 under the Securities Act
(an “AFFILIATE”).

o                                    The transferee is
an Affiliate of the Company.

	
  DATE:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Signature(s)

  	
   

  
						

 

 C-1
 

 

(If the registered owner
is a corporation, partnership or fiduciary, the title of the person signing on
behalf of such registered owner must be stated.)

	
  Signature Guaranteed

  
	
   

  	
   

  
	
  Participant in a
  Recognized Signature

  
	
   

  
	
  Name:

  
	
   

  
	
  Address:

  
	
   

  
	
  Tax I.D.:

  

 C-2

EXHIBIT D

TRIUMPH GROUP, INC.

NOTICE OF
REDEMPTION

[DATE]

To the Holders of the 2.625% Convertible Senior
Subordinated Notes due 2026 issued by Triumph Group, Inc.:

Triumph Group, Inc. (the “Issuer”) by
this written notice hereby exercises, pursuant to Section 3.01 of that
certain Indenture (the “Indenture”), dated as of September 18, 2006, between
the Issuer and The Bank of New York Trust Company, N.A., its right to redeem $[                        ]
of its 2.625% Convertible Senior Subordinated Notes due 2026 (the “Securities”).  All capitalized terms used herein and not
otherwise defined herein shall have the meanings assigned to such terms in the
Indenture.

1.       Redemption
Date:  [                
   ,        ]

2.       Redemption
Price:  $[                   ]

3.       Conversion
Rate:  Each $1,000 principal amount of
the Securities is convertible at your option into cash and Common Stock, if
any, at a rate of [insert number of shares] shares of the Issuer’s common
stock, par value $0.001 per share (the “Common Stock”), subject to adjustment,
during the period described below.

4.       Paying
Agent and Conversion Agent:  [NAME]
[ADDRESS]

5.       The
Securities called for redemption may be converted at your option at any time
from the date of this Notice of Redemption until 5:00 p.m. (New York City
time) on the Business Day immediately prior to the Redemption Date set forth
above.

6.       The
Securities called for redemption and not converted at your election prior to
5:00 p.m. (New York City time) on the Business Day immediately prior to
Redemption Date set forth above shall be redeemed on the Redemption Date.

7.       If you
elect to convert your Securities, you must satisfy the requirements for
conversion set forth in your Securities.

8.       Your
Securities called for redemption must be surrendered by you (by effecting book
entry transfer of the Securities or delivering Certificated Securities,
together with necessary endorsements, as the case may be) to [Name of
Paying Agent] at [insert address] in order for you to collect the Redemption
Price.

9.       [The
Securities bearing the following Certificate Number(s) in the principal amount
set forth below opposite such Certificate Number(s) are being redeemed:

	
  Certificate Number(s)

  	
   

  	
  Principal Amount]

  

 

 D-1
 

 

10.     Unless
the Issuer defaults in making the payment of the Redemption Price owed to you,
Interest, Contingent Interest, if any, and Additional Amounts, if any, on your
Securities called for redemption shall cease to accrue on and after the
Redemption Date.

11.     CUSIP
Number:  [    ]

TRIUMPH GROUP,
INC.

 D-2

EXHIBIT E

TRIUMPH
GROUP, INC.

NOTICE OF
REPURCHASE

[DATE]

To the Beneficial Owners of the 2.625% Convertible
Senior Subordinated Notes due 2026 (the “Securities”) issued by TRIUMPH
GROUP, Inc.:

Triumph Group, Inc. (the “Issuer”) by
this written notice hereby notifies you, pursuant to Section 3.07 of that
certain Indenture (the “Indenture”), dated as of September 18, 2006, between
the Issuer and The Bank of New York Trust Company, N.A., that you may request
the Issuer to repurchase your Securities by delivery of a Repurchase
Notice.  Included herewith is the form of
Repurchase Notice to be completed by you if you wish to have your Securities
repurchased by the Issuer.  All
capitalized terms used herein and not otherwise defined herein shall have the
meanings assigned to such terms in the Indenture.

15.     Repurchase Date:  [   ]

16.     Repurchase Price:  [   ]

17.     Conversion Rate:  To the extent described in Item 5 below,
each $1,000 principal amount of the Securities is convertible into [insert
number of shares] shares of the Issuer’s common stock, par value $0.001 per
share (the “Common Stock”), subject to adjustment.

18.     Paying Agent and Conversion Agent:  [NAME] [ADDRESS]

19.     The Securities as to which you have
delivered a Repurchase Notice to the Paying Agent may be converted if they are
otherwise convertible pursuant to Article 11 of the Indenture and the
terms of the Securities only if you withdraw such Repurchase Notice pursuant to
the terms of the Indenture.  You may be
entitled to have your Securities converted into cash or a combination of cash
and shares of the Issuer’s common stock:

(i)        during any fiscal quarter commencing
after the fiscal quarter ending September 30, 2006 (and only during such
quarter, if the last reported sale price (as defined in the Indenture) of
the Issuer’s common stock for at least 20 trading days (as defined in the
Indenture) during the period of 30 consecutive trading days ending on the
last trading day of the preceding fiscal quarter more than 130% of the
conversion price (as defined in the Indenture) on such last trading day;

(ii)       during the five business days immediately
following any five consecutive trading-day period in which the trading price
(as defined in the Indenture) per $1,000 principal amount of the Securities for
each day of that period was less than 98% of the product of the closing price
of the Common Stock and the conversion rate (as defined in the
Indenture) of the Securities on each such day;

 E-1
 

 

(iii)      if the Issuer has called the Securities
for redemption;

(iv)      upon the occurrence of certain specified
corporate transactions described in the Indenture; or

(v)       during the two-month period prior to
Stated Maturity.

20.               The Securities as to which you
have delivered a Repurchase Notice must be surrendered by you (by effecting
book entry transfer of the Securities or delivering Certificated Securities,
together with necessary endorsements, as the case may be) to [Name of Paying
Agent] at [insert address] in order for you to collect the Repurchase Price.

21.     The Repurchase Price for the Securities as
to which you have delivered a Repurchase Notice and not withdrawn such
Repurchase Notice shall be paid promptly following the later of the business
day immediately following such Repurchase Date and the date you deliver such
Securities to [Name of Paying Agent].

22.     In order to exercise your option to have
the Issuer repurchase your Securities, you must deliver the Repurchase Notice,
duly completed by you with the information required by such Repurchase Notice
(as specified in Section 3.07 of the Indenture) and deliver such
Repurchase Notice to the Paying Agent at any time from 9:00 a.m. (New York
City time) on [insert day that is 20 Business Days prior to Repurchase Date]
until 5:00 p.m. (New York City time) on the [insert day that is the
Repurchase Date].

23.     In order to withdraw any Repurchase Notice
previously delivered by you to the Paying Agent, you must deliver to the Paying
Agent, by 5:00 p.m. (New York time) on [insert day that is the
Repurchase Date], a written notice of withdrawal specifying (i) the
certificate number, if any, of the Securities in respect of which such notice
of withdrawal is being submitted, (ii) the principal amount of the
Securities in respect of which such notice of withdrawal is being submitted,
and (iii) if you are not withdrawing your Repurchase Notice for all of
your Securities, the principal amount of the Securities which still remain
subject to the original Repurchase Notice.

24.     Unless the Issuer defaults in making the
payment of the Repurchase Price owed to you, Interest, Contingent Interest, if
any, and Additional Amounts, if any, on your Securities as to which you have
delivered a Repurchase Notice shall cease to accrue on and after the Repurchase
Date.

25.     CUSIP Number:  [   ]

TRIUMPH GROUP,
INC.

 E-2

EXHIBIT F

TRIUMPH
GROUP, INC.

NOTICE OF OCCURRENCE

OF FUNDAMENTAL CHANGE

[DATE]

To the Holders of the 2.625% Convertible Senior
Subordinated Notes due 2026 (the “Securities”) issued by Triumph Group,
Inc.:

Triumph Group, Inc. (the “Issuer”) by
this written notice hereby notifies you, pursuant to Section 3.08 of that
certain Indenture (the “Indenture”), dated as of September 18, 2006, between
the Issuer and The Bank of New York Trust Company, N.A., that a Fundamental
Change (as such term and other capitalized terms used herein and not otherwise
defined herein are defined in the Indenture) as described below has
occurred.  Included herewith is the form
of Fundamental Change Repurchase Notice to be completed by you if you wish to
have your Securities repurchased by the Issuer.

26.     Fundamental Change:  [Insert brief description of the Fundamental
Change and the date of the occurrence thereof].

27.     Date by which Fundamental Change Repurchase
Notice must be delivered by you to Paying Agent in order to have your
Securities repurchased:

28.     Fundamental Change Repurchase Date:

29.     Fundamental Change Repurchase Price:

30.     Paying Agent and Conversion Agent:  [NAME] [ADDRESS]

31.     Conversion Rate:  To the extent described in Item 7 below,
each $1,000 principal amount of the Securities is convertible into [insert
number of shares] shares of the Issuer’s common stock, par value $0.001 per
share (the “Common Stock”), subject to adjustment.

32.     The Securities as to which you have
delivered a Fundamental Change Repurchase Notice to the Paying Agent may be
converted if they are otherwise convertible pursuant to Article 11 of the
Indenture and the terms of the Securities only if you withdraw such Fundamental
Change Repurchase Notice pursuant to the terms of the Indenture.  You may be entitled to have your Securities
converted into cash or a combination of cash and shares of the Issuer’s common
stock:

(i)        during
any fiscal quarter commencing after the fiscal quarter ending
September 30, 2006 (and only during such fiscal quarter), if the last
reported sale price (as defined in the Indenture) of the Issuer’s common
stock for at least 20 days during the period of 30 consecutive trading days
ending on the last trading day (as defined in the Indenture) of the
preceding fiscal quarter was more than 130% of the conversion price (as defined
in the Indenture) on such last trading day;

 F-1
 

 

(ii)       during
the five business days immediately following any five consecutive trading-day
period in which the trading price (as defined in the Indenture) per $1,000
principal amount of the Securities for each day of that period was less than
98% of the product of the closing price of the Common Stock and the conversion
rate (as defined in the Indenture) of the Securities on each such day;

(iii)      if the
Issuer has called the Securities for redemption;

(iv)      upon
the occurrence of certain specified corporate transactions described in the
Indenture; or

(v)       during
the two-month period prior to Stated Maturity.

33.     The Securities as to which you have
delivered a Fundamental Change Repurchase Notice must be surrendered by you (by
effecting book entry transfer of the Securities or delivering Certificated
Securities, together with necessary endorsements, as the case may be) to [Name
of Paying Agent] at [insert address] in order for you to collect the
Fundamental Change Repurchase Price.

34.     The Fundamental Change Repurchase Price for
the Securities as to which you have delivered a Fundamental Change Repurchase
Notice and not withdrawn such Notice shall be paid promptly following the later
of the Business Day immediately following such Fundamental Change Repurchase
Date and the date you deliver such Securities to [Name of Paying Agent].

35.     In order to have the Issuer repurchase your
Securities, you must deliver the Fundamental Change Repurchase Notice, duly
completed by you with the information required by such Fundamental Change
Repurchase Notice (as specified in Section 3.08 of the Indenture) and
deliver such Fundamental Change Repurchase Notice to the Paying Agent at any
time from 9:00 a.m. (New York City time) on the date of the occurrence of
the Change of Control until 5:00 p.m. (New York City time) on the
Fundamental Change Repurchase Date.

36.     In order to withdraw any Fundamental Change
Repurchase Notice previously delivered by you to the Paying Agent, you must
deliver to the Paying Agent, by 5:00 p.m. (New York City time) on the
Fundamental Change Repurchase Date, a written notice of withdrawal specifying
(i) the certificate number, if any, of the Securities in respect of which
such notice of withdrawal is being submitted, (ii) the principal amount of
the Securities in respect of which such notice of withdrawal is being
submitted, and (iii) if you are not withdrawing your Fundamental Change
Repurchase Notice for all of your Securities, the principal amount of the
Securities which still remain subject to the original Fundamental Change
Repurchase Notice.

37.     Unless the Issuer defaults in making the
payment of the Fundamental Change Repurchase Price owed to you, Interest,
Contingent Interest, if any, and Additional Amounts, if any, on your Securities
as to which you have delivered a Fundamental Change Repurchase Notice shall
cease to accrue on and after the Fundamental Change Repurchase Date.

 F-2
 

 

38.     CUSIP Number:                                  TRIUMPH
GROUP, INC.

 F-3

SCHEDULE I

The following table sets
forth the Stock Prices and the number of Additional Shares per $1,000 principal
amount of Securities.

	
   

  	
   

  	
  Stock Price

  	
   

  
	
  Effective Date

  	
   

  	
  $41.25

  	
   

  	
  $45.00

  	
   

  	
  $50.00

  	
   

  	
  $54.45

  	
   

  	
  $60.00

  	
   

  	
  $65.00

  	
   

  	
  $70.00

  	
   

  	
  $75.00

  	
   

  	
  $80.00

  	
   

  	
  $85.00

  	
   

  	
  $90.00

  	
   

  	
  $100.00

  	
   

  	
  $120.00

  	
   

  
	
  18-Sep-06

  	
   

  	
   

  	
  5.87

  	
   

  	
  4.88

  	
   

  	
  3.84

  	
   

  	
  3.17

  	
   

  	
  2.53

  	
   

  	
  2.09

  	
   

  	
  1.77

  	
   

  	
  1.50

  	
   

  	
  1.30

  	
   

  	
  1.13

  	
   

  	
  0.99

  	
   

  	
  0.78

  	
   

  	
  0.52

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1-Oct-07

  	
   

  	
   

  	
  5.78

  	
   

  	
  4.70

  	
   

  	
  3.59

  	
   

  	
  2.92

  	
   

  	
  2.26

  	
   

  	
  1.84

  	
   

  	
  1.52

  	
   

  	
  1.27

  	
   

  	
  1.07

  	
   

  	
  0.92

  	
   

  	
  0.79

  	
   

  	
  0.62

  	
   

  	
  0.40

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1-Oct-08

  	
   

  	
   

  	
  5.70

  	
   

  	
  4.49

  	
   

  	
  3.33

  	
   

  	
  2.61

  	
   

  	
  1.94

  	
   

  	
  1.53

  	
   

  	
  1.21

  	
   

  	
  0.99

  	
   

  	
  0.81

  	
   

  	
  0.69

  	
   

  	
  0.58

  	
   

  	
  0.45

  	
   

  	
  0.29

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1-Oct-09

  	
   

  	
   

  	
  5.57

  	
   

  	
  4.24

  	
   

  	
  3.02

  	
   

  	
  2.24

  	
   

  	
  1.54

  	
   

  	
  1.16

  	
   

  	
  0.86

  	
   

  	
  0.68

  	
   

  	
  0.52

  	
   

  	
  0.43

  	
   

  	
  0.36

  	
   

  	
  0.26

  	
   

  	
  0.17

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1-Oct-10

  	
   

  	
   

  	
  5.46

  	
   

  	
  3.92

  	
   

  	
  2.46

  	
   

  	
  1.55

  	
   

  	
  0.90

  	
   

  	
  0.55

  	
   

  	
  0.32

  	
   

  	
  0.22

  	
   

  	
  0.14

  	
   

  	
  0.11

  	
   

  	
  0.09

  	
   

  	
  0.07

  	
   

  	
  0.05

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6-Oct-11

  	
   

  	
   

  	
  3.54

  	
   

  	
  2.52

  	
   

  	
  1.29

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00Exhibit
4.3

BANC OF AMERICA SECURITIES LLC

$175,000,000 AGGREGATE
PRINCIPAL AMOUNT

TRIUMPH GROUP, INC.

2.625% CONVERTIBLE SENIOR
SUBORDINATED NOTES

DUE 2026

REGISTRATION RIGHTS AGREEMENT

DATED SEPTEMBER 18, 2006

REGISTRATION
RIGHTS AGREEMENT, dated as of September 18, 2006, between Triumph Group, Inc.,
a Delaware corporation (together with any successor entity, herein referred to
as the “Company”) and Banc of America
Securities LLC, as initial purchaser (the “Initial Purchaser”)
under the Purchase Agreement (as defined below).

Pursuant to
the Purchase Agreement, dated as of September 12, 2006, between the Company and
the Initial Purchaser (the “Purchase Agreement”),
relating to the initial placement (the “Initial Placement”)
of the Notes (as defined below), the Initial Purchaser has agreed to purchase
from the Company $175,000,000 ($201,250,000 if the Initial Purchaser exercises
its option in full) in aggregate principal amount of 2.625% Convertible Senior
Subordinated Notes due 2026 (collectively, the “Notes”).  The Notes will be convertible into cash and,
if any, fully paid, nonassessable shares of common stock, par value $0.001 per
share, of the Company (the “Common Stock”).  The notes will be convertible on the terms,
and subject to the conditions, set forth in the Indenture (as defined
herein).  To induce the Initial Purchaser
to purchase the Notes, the Company has agreed to provide the registration
rights set forth in this Agreement pursuant to Section 5(g) of the Purchase
Agreement.

The parties
hereby agree as follows:

1.                                       Definitions.  Capitalized terms used in this Agreement
without definition shall have their respective meanings set forth in the
Purchase Agreement.  As used in this
Agreement, the following capitalized terms shall have the following meanings:

“Additional
Amounts”:  As
defined in Section 3(a) hereof.

“Additional
Amounts Payment Date”: 
Each April 1 and October 1.

“Affiliate”
of any specified person means any other person which, directly or indirectly,
is in control of, is controlled by, or is under common control with, such
specified person.  For purposes of this
definition, control of a person means the power, direct or indirect, to direct
or cause the direction of the management and policies of such person whether by
contract or 

 

otherwise; and
the terms “controlling” and “controlled” have meanings correlative to the
foregoing.

“Agreement”:  This Registration Rights Agreement.

“Amendment
Effectiveness Deadline Date”:  has the meaning set forth in Section 2(f)(i)
hereof.

“Blue Sky
Application”: 
As defined in Section 6(a)(i) hereof.

“Business
Day”:  The
definition of “Business Day” in the Indenture.

“Closing
Date”:  The date
of the first issuance of the Notes.

“Commission”:  The Securities and Exchange Commission.

“Common
Stock”:  As
defined in the preamble hereto.

“Company”:  As defined in the preamble hereto.

“Effectiveness
Period”:  As
defined in Section 2(a)(iii) hereof.

“Effectiveness
Target Date”: 
As defined in Section 2(a)(ii) hereof.

“Exchange
Act”:  The
Securities Exchange Act of 1934, as amended.

“Free
Writing Prospectus”: 
A free writing prospectus, as defined in Rule 405 under the Securities
Act.

“Holder”:  A Person who owns, beneficially or otherwise,
Transfer Restricted Securities.

“Indemnified
Holder”:  As
defined in Section 6(a) hereof.

“Indenture”:  The Indenture, dated as of September 18, 2006
between the Company and The Bank of New York Trust Company, N.A., as trustee
(the “Trustee”), pursuant to which the
Securities are to be issued, as such Indenture is amended, modified or
supplemented from time to time in accordance with the terms thereof.

“Initial
Placement”:  As
defined in the preamble hereto.

“Initial
Purchaser”:  As
defined in the preamble hereto.

“Issuer
Free Writing Prospectus”:  An issuer free writing prospectus, as defined
in Rule 433 under the Securities Act.

“Losses”:  As defined in Section 6(a) hereof.

“Majority
of Holders”: 
Holders holding over 50% of the aggregate principal amount of Notes
outstanding; provided that, for the purpose of this definition, a holder of
shares of

 2
 

 

Common Stock
which constitute Transfer Restricted Securities shall be deemed to hold an
aggregate principal amount of Notes (in addition to the principal amount of the
Notes held by such holder) equal to the quotient of (x) the number of such
shares of Common Stock held by such holder and (y) the conversion rate in
effect at the time of such conversion as determined in accordance with the
Indenture.

“Managing
Underwriter”: 
The investment banker or investment bankers and manager or managers,
each of recognized national standing, that administer an underwritten offering,
if any, conducted pursuant to Section 8 hereof.

“NASD”:  The National Association of Securities
Dealers, Inc.

“Notes”:  As defined in the preamble hereto.

“Notice
and Questionnaire”: 
A written notice executed by a Holder and delivered to the Company
containing substantially the information called for by the Form of Selling
Securityholder Notice and Questionnaire attached as Appendix A to the
Offering Memorandum of the Company relating to the Notes.

“Notice
Holder”:  On any
date, any Holder of Transfer Restricted Securities that has delivered a Notice
and Questionnaire to the Company on or prior to such date.

“Person”:  An individual, partnership, corporation,
company, unincorporated organization, trust, joint venture, a government or
agency or political subdivision thereof, or another entity.

“Purchase
Agreement”:  As
defined in the preamble hereto.

“Prospectus”:  The prospectus included in a Shelf
Registration Statement, as amended or supplemented by any prospectus supplement
and by all other amendments thereto, including post-effective amendments, and
all material incorporated by reference into such prospectus.

“Record
Holder”:  With
respect to any Additional Amounts Payment Date, each Person who is a Holder on
the record date, as set forth in the Indenture, immediately preceding the
relevant Additional Amounts Payment Date. 
In the case of a Holder of shares of Common Stock issued upon conversion
of the Notes, “Record Holder” shall mean each Person who is a Holder of shares
of Common Stock which constitute Transfer Restricted Securities on the record
date, as set forth in the Indenture, immediately preceding the relevant
Additional Amounts Payment Date.

“Registration
Default”:  As
defined in Section 3(a) hereof.

“Representative”:  As defined in the preamble hereto.

“Securities
Act”:  The
Securities Act of 1933, as amended.

“Shelf
Filing Deadline”: 
As defined in Section 2(a)(i) hereof.

 3
 

 

“Shelf
Registration Statement”:  As defined in Section 2(a)(i) hereof.

“Subsequent
Shelf Registration Statement” has the meaning set
forth in Section 2(c) hereof.

“Suspension
Notice”:  As
defined in Section 4(c) hereof.

“Suspension
Period”:  As
defined in Section 4(b)(ii) hereof.

“TIA”:  The Trust Indenture Act of 1939, as amended,
and the rules and regulations of the Commission thereunder, in each case, as in
effect on the date the Indenture is qualified under the TIA.

“Transfer
Restricted Securities”:  Each Note and each share of Common Stock issued
or issuable upon conversion of Notes until the earlier of:

(i)                                     the
date on which such Note or such share of Common Stock issued upon conversion
has been effectively registered under the Securities Act and disposed of in
accordance with the Shelf Registration Statement;

(ii)                                  the
date on which such Note or such share of Common Stock issued upon conversion is
transferred in compliance with Rule 144 (or any other similar provision then in
force) under the Securities Act or may be sold or transferred by a person who
is not an affiliate of the Company pursuant to paragraph (k) of Rule 144 under
the Securities Act (or any other similar provision then in force);

(iii)                               the
date on which such Note or such share of Common Stock issued upon conversion
ceases to be outstanding (whether as a result of redemption, repurchase and
cancellation, conversion or otherwise); or

(iv)                              the
date on which such Note or such share of Common Stock has otherwise been
transferred and a new Note or share of Common Stock not subject to transfer
restrictions under the Securities Act has been delivered by or on behalf of the
Company in accordance with Section 2.06 of the Indenture.

“Underwriter”:  Any underwriter of Notes in connection with
an offering thereof under the Shelf Registration Statement.

“Underwritten
Registration”: 
A registration in which Notes of the Company are sold to an underwriter
for reoffering to the public.

Unless the
context otherwise requires, the singular includes the plural, and words in the
plural include the singular.

2.                                       Shelf
Registration.

(a)                                  The
Company shall:

 4
 

 

(i)                                     as
promptly as practicable (but in no event more than ninety (90) days after the
Closing Date) (the “Shelf Filing Deadline”),
cause to be filed a registration statement pursuant to Rule 415 under the
Securities Act or any similar rule that may be adopted by the Commission (the “Shelf Registration Statement”), which Shelf
Registration Statement shall provide for the registration and resales, on a
continuous or delayed basis, of all Transfer Restricted Securities held by
Holders that have provided the information required pursuant to the terms of
Section 2(b) hereof;

(ii)                                  use
its reasonable best efforts to cause the Shelf Registration Statement to be
declared effective under the Securities Act by the Commission not later than
one hundred eighty (180) days after the date hereof (the “Effectiveness Target Date”); and

(iii)                               use
its reasonable best efforts to keep the Shelf Registration Statement
continuously effective, supplemented and amended as required by the Securities
Act and by the provisions of Section 4(b) hereof to the extent necessary to
ensure that (A) it is available for resales by the Holders of Transfer
Restricted Securities entitled, subject to Section 2(b), to the benefit of this
Agreement and (B) it conforms with the requirements of this Agreement and the
Securities Act and the rules and regulations of the Commission promulgated
thereunder as announced from time to time, for a period (the “Effectiveness Period”) from the date the
Shelf Registration Statement is declared effective by the Commission until the
date when the Notes and the shares of Common Stock issuable upon conversion
thereof have ceased to be Transfer Restricted Securities.

The Company shall be deemed not to have used its reasonable best
efforts to keep the Shelf Registration Statement effective during the
Effectiveness Period if it voluntarily takes any action that would result in
Holders of Transfer Restricted Securities not being able to offer and sell such
securities at any time during the Effectiveness Period, unless such action is
(x) required by applicable law or otherwise undertaken by the Company in good
faith and for valid business reasons (not including avoidance of the Company’s
obligations hereunder), including the acquisition or divestiture
of assets, and (y) permitted by Section 4(b)(ii) hereof.

(b)                                 No
less than thirty (30) days prior to the Effectiveness Target Date, the Company
shall mail the Notice and Questionnaire to the Holders.  At the time the Shelf Registration Statement
is declared effective, each Holder that became a Notice Holder on or prior to
the date twenty (20) days prior to such time of effectiveness shall be named as
a selling securityholder in the Shelf Registration Statement and the related
Prospectus in such a manner as to permit such Holder to deliver such Prospectus
to purchasers of Transfer Restricted Securities in accordance with applicable
law.  None of the Company’s
securityholders (other than the Holders of Transfer Restricted Securities) shall
have the right to include any of the Company’s securities in the Shelf
Registration Statement.

(c)                                  If
the Shelf Registration Statement or any Subsequent Shelf Registration Statement
ceases to be effective for any reason at any time during the Effectiveness

 5
 

 

Period (other than because all Transfer Restricted Securities
registered thereunder shall have been resold pursuant thereto or shall have
otherwise ceased to be Transfer Restricted Securities), the Company shall use
its reasonable best efforts to obtain the prompt withdrawal of any order
suspending the effectiveness thereof, or file an additional Shelf Registration
Statement covering all of the securities that as of the date of such filing are
Transfer Restricted Securities (a “Subsequent
Shelf Registration Statement”). 
If a Subsequent Shelf Registration Statement is filed, the Company shall
use its reasonable best efforts to cause the Subsequent Shelf Registration
Statement to become effective as promptly as is practicable after such filing
and to keep such Registration Statement (or Subsequent Shelf Registration
Statement) continuously effective until the end of the Effectiveness Period.

(d)                                                                                 The
Company shall supplement and amend the Shelf Registration Statement if required
by the rules, regulations or instructions applicable to the registration form
used by the Company for such Shelf Registration Statement, if required by the
Securities Act or as reasonably requested by the Initial Purchaser or by the
Trustee on behalf of the Holders of the Transfer Restricted Securities covered
by such Shelf Registration Statement.

(e)                                                                                  The
Company shall cause the Shelf Registration Statement and the related Prospectus
and any amendment or supplement thereto, as of the effective date of the Shelf
Registration Statement or such amendment or supplement, and any Issuer Free
Writing Prospectus, as of the date thereof (i) to comply in all material
respects with the applicable requirements of the Securities Act, and (ii) not
to contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary in order to make the statements
therein (in the case of the Prospectus and any Issuer Free Writing Prospectus,
in the light of the circumstances under which they were made) not misleading.

(f)                                                                                    Each
Holder agrees that if such Holder wishes to sell Transfer Restricted Securities
pursuant to a Shelf Registration Statement and related Prospectus, it will do
so only in accordance with this Section 2(f) and Section 4(b).  Each Holder wishing to sell Transfer
Restricted Securities pursuant to a Shelf Registration Statement and related
Prospectus agrees to deliver a Notice and Questionnaire to the Company at least
twenty (20) Business Days prior to any intended distribution of Transfer Restricted
Securities under the Shelf Registration Statement.  From and after the date the Shelf
Registration Statement is declared effective, the Company shall, as promptly as
practicable after the date a Notice and Questionnaire is delivered to it, and
in any event upon the later of (x) twenty (20) Business Days after such date
(but no earlier than twenty (20) Business Days after effectiveness) or (y)
twenty (20) Business Days after the expiration of any Suspension Period in
effect when the Notice and Questionnaire is delivered or put into effect within
twenty (20) Business Days of such delivery date:

(i)                                     if
required by applicable law, file with the Commission a post-effective amendment
to the Shelf Registration Statement or prepare and, if required by applicable
law, file a supplement to the related Prospectus or a supplement or amendment
to any document incorporated therein by reference or

 6
 

 

file any other
required document so that the Holder delivering such Notice and Questionnaire
is named as a selling securityholder in the Shelf Registration Statement and
the related Prospectus in such a manner as to permit such Holder to deliver
such Prospectus to purchasers of the Transfer Restricted Securities in
accordance with applicable law and, if the Company shall file a post-effective
amendment to the Shelf Registration Statement, use its reasonable best efforts
to cause such post-effective amendment to be declared effective under the
Securities Act as promptly as is practicable, but in any event by the date (the
“Amendment Effectiveness Deadline Date”)
that is twenty (20) Business Days after the date such post-effective amendment
is required by this clause to be filed;

(ii)                                  provide
such Holder copies of the documents filed pursuant to Section 2(e)(i); and

(iii)                               notify
such Holder as promptly as practicable after the effectiveness under the
Securities Act of any post-effective amendment filed pursuant to Section
2(e)(i); provided that if such Notice and Questionnaire is delivered during a
Suspension Period, the Company shall so inform the Holder delivering such
Notice and Questionnaire and shall take the actions set forth in clauses (i),
(ii) and (iii) above upon expiration of the Suspension Period in accordance
with Section 4(b).  Notwithstanding
anything contained herein to the contrary, (i) the Company shall be under no
obligation to name any Holder that is not a Notice Holder as a selling
securityholder in any Registration Statement or related Prospectus and (ii) the
Amendment Effectiveness Deadline Date shall be extended by up to ten (10)
Business Days from the Expiration of a Suspension Period (and the Company shall
incur no obligation to pay Additional Amounts during such extension) if such
Suspension Period shall be in effect on the Amendment Effectiveness Deadline
Date.

Additional Amounts.

(g)                                 If:

(i)                                     the
Shelf Registration Statement is not filed with the Commission prior to or on
the Shelf Filing Deadline;

(ii)                                  the
Shelf Registration Statement has not been declared effective by the Commission
prior to or on the Effectiveness Target Date;

(iii)                               the
Company has failed to perform its obligations set forth in Section 2(f) within
the time period required therein;

(iv)                              any
post-effective amendment to a Shelf Registration filed pursuant to Section
2(f)(i) has not become effective under the Securities Act on or prior to the
Amendment Effectiveness Deadline Date;

(v)                                 except
as provided in Section 4(b)(ii) hereof, the Shelf Registration Statement is
filed and declared effective but, during the Effectiveness Period,

 7
 

 

shall thereafter cease to be effective or fail to be usable for its
intended purpose for more than five (5) Business Days; or

(vi)                              Suspension
Periods exceed an aggregate of 45 days within any 90 day period or an aggregate
of 90 days in any 360 day period;

(each such event referred to in
foregoing clauses (i) through (vi), a “Registration Default”),
the Company hereby agrees to pay interest (“Additional
Amounts”) with respect to the Transfer Restricted Securities from
and including the day following the Registration Default to but excluding the
earlier of (1) the day on which the Registration Default has been cured and (2)
the date the Shelf Registration Statement is no longer required to be kept
effective, accruing at a rate:

(1)                                  in
respect of the Notes, to each holder of Notes, (x) with respect to the first 90-day
period during which a Registration Default shall have occurred and be
continuing, equal to 0.25% per annum of the aggregate principal amount of the
Notes, and (y) with respect to the period commencing on the 91st day following
the day the Registration Default shall have occurred and be continuing, equal
to 0.50% per annum of the aggregate principal amount of the Notes; provided
that in no event shall Additional Amounts accrue at a rate per annum exceeding
0.50% of the aggregate principal amount of the Notes; and

(2)                                  in
respect of the Notes that are Transfer Restricted Securities submitted for
conversion into cash and Common Stock, if any, during the existence of a
Registration Default with respect to the Common Stock, the holder will not be
entitled to receive any Additional Amounts with respect to such Common Stock
but will receive from the Company on the settlement date with respect to such
conversion, accrued and unpaid Additional Amounts to the holders of such Notes
calculated in accordance with paragraph (A) to the Conversion Date (as defined
in the Indenture) relating to such settlement date; and

(3)                                  in
respect of Common Stock, if any, issued upon conversion of Notes, each holder
of such Common Stock will not be entitled to any Additional Amounts if the
Registration Default with respect to such Common Stock occurs after the holder
has converted the Notes into Common Stock.

(h)                                 All
accrued Additional Amounts shall be paid in arrears to Record Holders by the
Company on each Additional Amounts Payment Date.  Upon the cure of all Registration Defaults
relating to any particular Note, the accrual of Additional Amounts with respect
to such Note will cease.

All
obligations of the Company set forth in this Section 3 that are outstanding
with respect to any Transfer Restricted Security at the time such security
ceases to be a Transfer

 8
 

 

Restricted
Security shall survive until such time as all such obligations with respect to
such Transfer Restricted Security shall have been satisfied in full.

The Additional
Amounts set forth above shall be the exclusive monetary remedy available to the
Holders of Transfer Restricted Securities for each Registration Default.

3.                                       Registration
Procedures.

(a)                                  In
connection with the Shelf Registration Statement, the Company shall comply with
all the provisions of Section 4(b) hereof and shall use its reasonable best
efforts to effect such registration to permit the sale of the Transfer
Restricted Securities, and pursuant thereto, shall as expeditiously as possible
prepare and file with the Commission a Shelf Registration Statement relating to
the registration on any appropriate form under the Securities Act.

(b)                                 In
connection with the Shelf Registration Statement and any Prospectus required by
this Agreement to permit the sale or resale of Transfer Restricted Securities,
the Company shall:

(i)                                     Subject
to any notice by the Company in accordance with this Section 4(b) of the
existence of any fact or event of the kind described in Section 4(b)(iv)(D),
use its reasonable best efforts to keep the Shelf Registration Statement
continuously effective during the Effectiveness Period; upon the occurrence of
any event that would cause the Shelf Registration Statement or the Prospectus
contained therein (A) to contain a material misstatement or omission or (B) not
to be effective and usable for resale of Transfer Restricted Securities during
the Effectiveness Period, the Company shall file promptly an appropriate
amendment to the Shelf Registration Statement, a supplement to the Prospectus
or a report filed with the Commission pursuant to Section 13(a), 13(c), 14 or
15(d) of the Exchange Act, in the case of clause (A), correcting any such
misstatement or omission, and, in the case of either clause (A) or (B), use its
reasonable best efforts to cause such amendment to be declared effective and
the Shelf Registration Statement and the related Prospectus to become usable
for their intended purposes as soon as practicable thereafter.

(ii)                                  Notwithstanding
Section 4(b)(i) hereof, the Company may suspend the effectiveness of the Shelf
Registration Statement (each such period, a “Suspension
Period”):

(x)                                   if
an event occurs and is continuing as a result of which the Shelf Registration
Statement, the Prospectus, any amendment or supplement thereto, or any document
incorporated by reference therein would, in the Company’s judgment, contain an
untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein not
misleading; and

 9
 

 

(y)                                 if
the Company determines in good faith that the disclosure of a material event at
such time would be seriously detrimental to the Company and its subsidiaries.

Upon the
occurrence of any event described in clauses (x) and (y) of this Section
4(b)(ii), the Company shall give notice to the Holders that the availability of
the Shelf Registration is suspended and, upon actual receipt of any such
notice, each Holder agrees not to sell any Transfer Restricted Securities pursuant
to the Shelf Registration until such Holder’s receipt of copies of the
supplemented or amended Prospectus provided for in Section 4(b) hereof.  A Suspension Period shall not exceed 45 days
in any 90 day period, provided that, Suspension Periods shall not exceed an
aggregate of 90 days in any 360-day period. 
The Company shall not be required to specify in the written notice to
the Holders the nature of the event giving rise to the Suspension Period.

(iii)                               Prepare
and file with the Commission such amendments and post-effective amendments to
the Shelf Registration Statement as may be necessary to keep the Shelf
Registration Statement effective during the Effectiveness Period; cause the
Prospectus to be supplemented by any required Prospectus supplement, and as so
supplemented to be filed pursuant to Rule 424 under the Securities Act, and to
comply fully with the applicable provisions of Rule 424 under the Securities
Act in a timely manner; and comply with the provisions of the Securities Act
with respect to the disposition of all Transfer Restricted Securities covered
by the Shelf Registration Statement during the applicable period in accordance
with the intended method or methods of distribution by the sellers thereof set
forth in the Shelf Registration Statement or supplement to the Prospectus.

(iv)                              Advise
the selling Holders and the Initial Purchaser that has provided in writing to
the Company a telephone or facsimile number and address for notices, promptly
and, if requested by such selling Holders, to confirm such advice in writing
(which notice pursuant to clauses (B) through (E) below shall be accompanied by
an instruction to suspend the use of the Prospectus until the Company shall
have remedied the basis for such suspension):

(1)                                  when
the Prospectus or any Prospectus supplement, any post-effective amendment or
any Issuer Free Writing Prospectus has been filed, and, with respect to the
Shelf Registration Statement or any post-effective amendment thereto, when the
same has become effective,

(2)                                  of
any request by the Commission for amendments to the Shelf Registration
Statement or amendments or supplements to the Prospectus or for additional
information relating thereto,

(3)                                  of
the issuance by the Commission of any stop order suspending the effectiveness of
the Shelf Registration Statement under the Securities Act or of any notice that
would prevent its use, or of the suspension by any state securities commission
of the qualification of the

 10
 

 

Transfer
Restricted Securities for offering or sale in any jurisdiction, or the
threatening or initiation of any proceeding for any of the preceding purposes,

(4)                                  of
the existence of any fact or the happening of any event, during the
Effectiveness Period, that makes any statement of a material fact made in the
Shelf Registration Statement, the Prospectus, any amendment or supplement
thereto, or any document incorporated by reference therein untrue, or that
requires the making of any additions to or changes in the Shelf Registration
Statement or the Prospectus in order to make the statements therein (in the
case of the Prospectus, in the light of the circumstances under which they were
made) not misleading, or

(5)                                  when
any Issuer Free Writing Prospectus includes information that may conflict with
the information contained in the Registration Statement

(v)                                 If
at any time the Commission shall issue any stop order suspending the
effectiveness of the Shelf Registration Statement or any notice that would
prevent its use, or any state securities commission or other regulatory authority
shall issue an order suspending the qualification or exemption from
qualification of the Transfer Restricted Securities under state securities or
Blue Sky laws, the Company shall use its reasonable best efforts to obtain the
withdrawal or lifting of such order at the earliest possible time, including,
if necessary, by filing an amendment to the Shelf Registration Statement or a
new Shelf Registration Statement and using its reasonable best efforts to have
such amendment or new Shelf Registration Statement declared effective, and will
provide to each Holder who is named in the Shelf Registration Statement prompt
notice of the withdrawal of any such order or of the filing or effectiveness of
any such amendment or new registration statement.

(vi)                              Make
available at reasonable times for inspection by one representative of the
selling Holders, designated in writing by a Majority of Holders whose Transfer
Restricted Securities are included in the Shelf Registration Statement, and any
attorney or accountant retained by such selling Holders and any underwriter
participating in any disposition pursuant to the Shelf Registration Statement,
all financial and other records, pertinent corporate documents and properties
of the Company as shall be reasonably necessary to enable them to conduct a
reasonable investigation within the meaning of Section 11 of the Securities
Act, and cause the Company’s officers, directors, managers and employees to
supply all information reasonably requested by any such representative or representatives
of the selling Holders, attorney or accountant in connection therewith.

(vii)                           If
requested by any selling Holders or the Representatives, promptly incorporate
in the Shelf Registration Statement or Prospectus, pursuant to a supplement or
post-effective amendment if necessary, such information as 

 11
 

 

such selling
Holders may reasonably request to have included therein, including, without
limitation, information relating to the “Plan
of Distribution” of the Transfer Restricted Securities.

(viii)                        Deliver
to each selling Holder, without charge, as many copies of the Prospectus
(including each preliminary Prospectus) and any amendment or supplement
thereto, and any Issuer Free Writing Prospectus, as such Persons reasonably may
request; subject to any notice by the Company in accordance with this Section
4(b) of the existence of any fact or event of the kind described in Section
4(b)(iv)(B) through (E), the Company hereby consents to the use of the
Prospectus and any amendment or supplement thereto, and any Issuer Free Writing
Prospectus, by each of the selling Holders in connection with the offering and
the sale of the Transfer Restricted Securities covered by the Prospectus or any
amendment or supplement thereto.

(ix)                                Before
any public offering of Transfer Restricted Securities, cooperate with the
selling Holders and their counsel in connection with the registration and
qualification of the Transfer Restricted Securities under the securities or
Blue Sky laws of such jurisdictions in the United States as the selling Holders
may reasonably request and do any and all other acts or things necessary or
advisable to enable the disposition in such jurisdictions of the Transfer
Restricted Securities covered by the Shelf Registration Statement; provided,
however, that the Company shall not be required (A) to register or qualify as a
foreign corporation or a dealer of securities where it is not now so qualified
or to take any action that would subject it to the service of process in any
jurisdiction where it is not now so subject, other than service of process for
suits arising out of the Initial Placement or any offering pursuant to the
Shelf Registration Statement, or (B) to subject itself to general or unlimited
service of process or to taxation in any such jurisdiction if they are not now
so subject.

(x)                                   Unless
any Transfer Restricted Securities shall be in book-entry form only, cooperate
with the selling Holders to facilitate the timely preparation and delivery of
certificates representing Transfer Restricted Securities to be sold and not
bearing any restrictive legends (unless required by applicable securities
laws); and enable such Transfer Restricted Securities to be in such
denominations and registered in such names as the Holders may request at least
two Business Days before any sale of Transfer Restricted Securities.

(xi)                                Use
its reasonable best efforts to cause the Transfer Restricted Securities covered
by the Shelf Registration Statement to be registered with or approved by such
other U.S. governmental agencies or authorities as may be necessary to enable
the seller or sellers thereof to consummate the disposition of such Transfer
Restricted Securities.

(xii)                             Subject
to Section 4(b)(ii) hereof, if any fact or event contemplated by Section
4(b)(iv)(B) through (E) hereof shall exist or have occurred, use its reasonable
best efforts to prepare a supplement or post-effective amendment to 

 12
 

 

the Shelf
Registration Statement, related Prospectus (including by means of an Issuer
Free Writing Prospectus), relevant Issuer Free Writing Prospectus or any
document incorporated therein by reference or to file any other required
document so that, as thereafter delivered to the purchasers of Transfer
Restricted Securities, none of the Registration Statement, the Prospectus or any
Issuer Free Writing Prospectus will contain an untrue statement of a material
fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein (in the case of the Prospectus and any
such Issuer Free Writing Prospectus, in the light of the circumstances in which
they are made) not misleading.

(xiii)                          Provide
CUSIP numbers for all Transfer Restricted Securities not later than the
effective date of the Shelf Registration Statement and provide the Trustee under
the Indenture with certificates for the Notes that are in a form eligible for
deposit with The Depository Trust Company.

(xiv)                         Cooperate
and assist in any filings required to be made with the NASD and in the
performance of any due diligence investigation by any underwriter that is
required to be undertaken in accordance with the rules and regulations of the
NASD.

(xv)                            Otherwise
use its reasonable best efforts to comply with all applicable rules and
regulations of the Commission and all reporting requirements under the rules
and regulations of the Exchange Act.

(xvi)                         Make
generally available to its security holders an earnings statement satisfying
the provisions of Section 11(a) of the Securities Act as soon as practicable
after the effective date of the Shelf Registration Statement and in any event
no later than forty (40) days after the end of a 12-month period (or 75 days,
if such period is a fiscal year) beginning with the first month of the Company’s
first fiscal quarter commencing after the effective date of the Shelf
Registration Statement.

(xvii)                      Cause
the Indenture to be qualified under the TIA not later than the effective date
of the Shelf Registration Statement required by this Agreement, and, in
connection therewith, cooperate with the Trustee and the holders of Notes to
effect such changes to the Indenture as may be required for such Indenture to
be so qualified in accordance with the terms of the TIA; and execute and use
its reasonable best efforts to cause the Trustee thereunder to execute all documents
that may be required to effect such changes and all other forms and documents
required to be filed with the Commission to enable such Indenture to be so
qualified in a timely manner.  In the
event that any such amendment or modification referred to in this Section
4(b)(xvii) involves the appointment of a new trustee under the Indenture, the
Company shall appoint a new trustee thereunder pursuant to the applicable
provisions of the Indenture.

 13
 

 

(xviii)                   Cause
all Common Stock covered by the Shelf Registration Statement to be listed or
quoted, as the case may be, on each securities exchange or automated quotation
system on which Common Stock is then listed or quoted.

(xix)                           Provide
to each Holder upon written request each document filed with the Commission
pursuant to the requirements of Section 13 and Section 15 of the Exchange Act
after the effective date of the Shelf Registration Statement, unless such
document is available through the Commission’s EDGAR system.

(xx)                              If
the Notes have been rated prior to the initial sale of such Notes, use its
reasonable best efforts to confirm such ratings will apply to the Notes covered
by the Shelf Registration Statement.

(xxi)                           In
connection with any underwritten offering conducted pursuant to Section 8
hereof, make such representations and warranties to the Holders of Securities
registered thereunder and the underwriters, in form, substance and scope as are
customarily made by issuers to underwriters in primary underwritten offerings
and covering matters including, but not limited to, those set forth in the
Purchase Agreement;

(xxii)                        In
connection with any underwritten offering conducted pursuant to Section 8
hereof, obtain opinions of counsel to the Company and updates thereof (which
counsel and opinions (in form, scope and substance) shall be reasonably
satisfactory to the Managing Underwriters) addressed to each selling Holder and
the underwriters, if any, covering such matters as are customarily covered in
opinions requested in underwritten offerings and such other matters as may be
reasonably requested by such Holders and underwriters;

(xxiii)                     In
connection with any underwritten offering conducted pursuant to Section 8,
hereof, obtain “comfort” letters
and updates thereof from the independent certified public accountants of the
Company (and, if necessary, any other independent certified public accountants
of any subsidiary of the Company or of any business acquired by the Company for
which financial statements and financial data are, or are required to be,
included in the Shelf Registration Statement), addressed to each selling Holder
of Securities registered thereunder and the underwriters, in customary form and
covering matters of the type customarily covered in “comfort” letters in connection with primary underwritten
offerings; and

(xxiv)                    In
connection with any underwritten offering conducted pursuant to Section 8
hereof, deliver such documents and certificates as may be reasonably requested
by the Majority Holders and the Managing Underwriters, including those to
evidence compliance with Section 4(b)(ii) and 4(b)(xii) hereof and with any
customary conditions contained in the Purchase Agreement or other agreement
entered into by the Company.

 14
 

 

 

(xxv)                       In
connection with underwritten offering conducted pursuant to Section 8 hereof,
the Company shall, if requested, promptly include or incorporate in a
Prospectus supplement or post-effective amendment to the Shelf Registration
Statement such information as the Managing Underwriters reasonably agree should
be included therein and to which the Company does not reasonably object and
shall make all required filings of such Prospectus supplement or post-effective
amendment as soon as practicable after it is notified of the matters to be
included or incorporated in such Prospectus supplement or post-effective
amendment.

(xxvi)                    Use
its reasonable best efforts to take all other steps necessary to effect the
registration of the Notes covered by the Shelf Registration Statement.

(xxvii)                 Enter
into customary agreements (including, if requested, an underwriting agreement
in customary form) and take all other appropriate actions in order to expedite
or facilitate the registration or the disposition of the Notes, and in
connection therewith, if an underwriting agreement is entered into, cause the
same to contain indemnification provisions and procedures no less favorable
than those set forth in Section 6 hereof.

The actions
set forth in clauses (xxii), (xxiii), (xxiv) and (xxv) of this Section 4(b)
shall be performed at (A) the effectiveness of the Shelf Registration Statement
and each post-effective amendment thereto; and (B) each closing under any
underwriting or similar agreement as and to the extent required thereunder.

(c)                                  Each
Holder agrees by acquisition of Transfer Restricted Securities that, upon
receipt of any notice (a “Suspension Notice”)
from the Company of the existence of any fact of the kind described in Section
4(b)(iv)(B) through (D) hereof, such Holder will forthwith discontinue
disposition of Transfer Restricted Securities pursuant to the Shelf
Registration Statement until:

(i)                                     such
Holder has received copies of the supplemented or amended Prospectus or
applicable Issuer Free Writing Prospectus contemplated by Section 4(b)(xv)
hereof; or

(ii)                                  such
Holder is advised in writing by the Company that the use of the Prospectus and
any applicable Issuer Free Writing Prospectus may be resumed, and has received
copies of any additional or supplemental filings that are incorporated by
reference in the Prospectus.

If so directed by the Company,
each Holder will deliver to the Company (at the Company’s expense) all copies,
other than permanent file copies then in such Holder’s possession, of the
Prospectus covering such Transfer Restricted Securities and any Issuer Free
Writing Prospectus that was current at the time of receipt of such Suspension
Notice.

(d)                                 Each
Holder agrees by acquisition of Transfer Restricted Securities, that no Holder
shall be entitled to sell any of such Transfer Restricted Securities pursuant
to a Shelf Registration Statement; or to receive a Prospectus relating thereto,
unless such

 15
 

 

Holder has
furnished the Company with a Notice and Questionnaire as required pursuant to
Section 2(f) hereof (including the information required to be included in such
Notice and Questionnaire) and the information set forth in the next
sentence.  The Company may require each
Notice Holder of Notes to be sold pursuant to the Shelf Registration Statement
to furnish to the Company such information regarding the Holder and the
distribution of such Notes as the Company may from time to time reasonably
require for inclusion in such Registration Statement.  Each Notice Holder agrees promptly to furnish
to the Company all information required to be disclosed in order to make the
information previously furnished to the Company by such Notice Holder not
misleading and any other information regarding such Notice Holder and the
distribution of such Transfer Restricted Securities as the Company may from
time to time reasonably request in writing. 
The Company may exclude from such Shelf Registration Statement the Notes
of any Holder that unreasonably fails to furnish such information within a
reasonable time after receiving such request.

4.                                       Registration
Expenses.

All expenses
incident to the Company’s performance of or compliance with this Agreement
shall be borne by the Company regardless of whether a Shelf Registration
Statement becomes effective, including, without limitation:

(a)                                  all
registration and filing fees and expenses (including filings made with the
NASD);

(b)                                 all
fees and expenses of compliance with federal securities and state Blue Sky or
securities laws;

(c)                                  all
expenses of printing (including printing of Prospectuses, Issuer Free Writing
Prospectuses and certificates for any Common Stock to be issued upon conversion
of the Notes) and the Company’s expenses for messenger and delivery services
and telephone;

(d)                                 all
fees and disbursements of counsel to the Company;

(e)                                  all
application and filing fees in connection with listing (or authorizing for
quotation) the Common Stock on a national securities exchange or automated
quotation system pursuant to the requirements hereof; and

(f)                                    all
fees and disbursements of independent certified public accountants of the
Company.

The Company
shall bear its internal expenses (including, without limitation, all salaries
and expenses of their officers and employees performing legal, accounting or
other duties), the expenses of any annual audit and the fees and expenses of
any Person, including special experts, retained by the Company.  The Company shall pay all expenses
customarily borne by issuers in an underwritten offering as set forth in
Section 8(c) hereof, and excluding underwriting discounts and commissions.

 16
 

 

5.                                       Indemnification
and Contribution.

(a)                                  The
Company agrees to indemnify and hold harmless each Holder of Transfer
Restricted Securities (including the Initial Purchaser), its directors,
officers, employees and agents, and each person, if any, who controls any
Holder within the meaning of the Securities Act or the Exchange Act (each, an “Indemnified Holder”), against any loss,
claim, damage, liability or expense, as incurred, or any action in respect
thereof (including, but not limited to, any loss, claim, damage, liability or
expense relating to resales of the Transfer Restricted Securities)
(collectively, “Losses”), to which
such Indemnified Holder may become subject, insofar as any such Loss arises out
of or is based upon:

(i)                                     any
(i)              any
untrue statement or alleged untrue statement of a material fact contained in
(A) the Shelf Registration Statement as originally filed or in any amendment
thereof, or (B) any blue sky application or other document or any amendment or
supplement thereto prepared or executed by the Company (or based upon written
information furnished by or on behalf of the Company expressly for use in such
blue sky application or other document or amendment or supplement) filed in any
jurisdiction specifically for the purpose of qualifying any or all of the
Transfer Restricted Securities under the securities law of any state or other
jurisdiction (such application or document being hereinafter called a “Blue Sky Application”), or, in each case,
the omission or alleged omission to state therein any material fact required to
be stated therein or necessary to make the statements therein not misleading;
or

(ii)                                  any
untrue statement or alleged untrue statement of a material fact contained in
any Issuer Free Writing Prospectus, any preliminary prospectus or the
Prospectus (or any amendment or supplement thereto), or the omission or alleged
omission therefrom of a material fact, in each case, necessary in order to make
the statements therein, in the light of the circumstances under which they were
made, not misleading,

and to reimburse each Indemnified
Holder for any and all expenses as such expenses are reasonably incurred by
such Indemnified Holder in connection with investigating, defending, settling,
compromising or paying any such Loss; provided, however, that the foregoing
indemnity agreement shall not apply to any Loss to the extent, but only to the
extent, arising out of or based upon any untrue statement or alleged untrue
statement or omission or alleged omission made in reliance upon and in
conformity with written information furnished to the Company by or on behalf of
such Holder (or its related Indemnified Holder) expressly for use therein.  The foregoing indemnity agreement is in
addition to any liability that the Company may otherwise have.

The Company also agrees to
indemnify as provided in this Section 6(a) or contribute as provided in Section
6(e) hereof to Losses of each underwriter, if any, of Notes registered under a
Shelf Registration Statement, their directors, officers, employees or agents
and each person who controls such underwriter on substantially the same basis
as that of the indemnification of the Initial Purchaser and the selling Holders
provided in this Section 6(a) and shall, if requested by

 17
 

 

any Holder, enter into an
underwriting agreement reflecting such agreement, as provided in Section
4(b)(xxvii) hereof.

(b)                                 Each
Holder agrees, severally and not jointly, to indemnify and hold harmless the
Company, each of its directors, each of its officers who sign the Shelf
Registration Statement and each person, if any, who controls the Company within
the meaning of the Securities Act or the Exchange Act (i) to the same extent as
the foregoing indemnity from the Company to each such Holder, but only with
reference to written information relating to such Holder furnished to the Company
by or on behalf of such Holder specifically for inclusion in the documents
referred to in the foregoing indemnity and (ii) against any Loss, joint or
several, including, but not limited to, any Loss relating to resales of the
Transfer Restricted Securities, to which such person may become subject,
insofar as any such Loss arises out of, or is based upon any Free Writing
Prospectus used by such Holder without the prior consent of the Issuer, and in
connection with any underwritten offering, the underwriters, provided that the
indemnification obligation in this clause (ii) shall be several and not joint
among the Holders who used such Free Writing Prospectus.  This indemnity agreement set forth in this
Section shall be in addition to any liabilities which any such Holder may
otherwise have.

(c)                                  Promptly
after receipt by an indemnified party under this Section 6 of notice of any
claim or the commencement of any action, such indemnified party will, if a
claim in respect thereof is to be made against an indemnifying party under this
Section 6, notify the indemnifying party in writing of the claim or the
commencement thereof, but the failure to notify the indemnifying party (i) will
not relieve it from liability under paragraph (a) or (b) above unless and to the
extent it did not otherwise learn of such action and such failure results in
the forfeiture by the indemnifying party of substantial rights and defenses and
(ii) will not, in any event, relieve the indemnifying party from any
obligations to any indemnified party other than the indemnification obligation
provided in paragraph (a) or (b) above. 
In case any such action is brought against any indemnified party and
such indemnified party seeks or intends to seek indemnity from an indemnifying
party, the indemnifying party will be entitled to participate in, and, to the
extent that it shall elect, jointly with all other indemnifying parties
similarly notified, by written notice delivered to the indemnified party
promptly after receiving the aforesaid notice from such indemnified party, to
assume the defense thereof with counsel satisfactory to such indemnified party;
provided, however, if the defendants in any such action include both the
indemnified party and the indemnifying party and the indemnified party shall
have reasonably concluded that a conflict may arise between the positions of
the indemnifying party and the indemnified party in conducting the defense of
any such action or that there may be legal defenses available to it and/or
other indemnified parties that are different from or additional to those
available to the indemnifying party, the indemnified party or parties shall
have the right to select separate counsel to assume such legal defenses and to
otherwise participate in the defense of such action on behalf of such
indemnified party or parties.  Upon
receipt of notice from the indemnifying party to such indemnified party of such
indemnifying party’s election so to assume the defense of such action and
approval by the indemnified party of counsel, the indemnifying party will not
be liable to such indemnified party under this Section 6 for any legal or other
expenses subsequently incurred by such indemnified party in connection with the
defense thereof

 18
 

 

unless (i) the
indemnified party shall have employed separate counsel in accordance with the
proviso to the preceding sentence (it being understood, however, that the
indemnifying party shall not be liable for the expenses of more than one
separate counsel (other than local counsel), reasonably approved by the
indemnifying party, representing the indemnified parties who are parties to
such action) or (ii) the indemnifying party shall not have employed counsel
satisfactory to the indemnified party to represent the indemnified party within
a reasonable time after notice of commencement of the action, in each of which
cases the fees and expenses of counsel shall be at the expense of the
indemnifying party.

(d)                                 The
indemnifying party under this Section shall not be liable for any settlement of
any proceeding effected without its written consent, which shall not be
withheld unreasonably, but if settled with such consent or if there is a final
judgment for the plaintiff, the indemnifying party agrees to indemnify the
indemnified party against any Loss by reason of such settlement or
judgment.  Notwithstanding the foregoing
sentence, if at any time an indemnified party shall have requested an
indemnifying party to reimburse the indemnified party for fees and expenses of
counsel as contemplated by Section 6(c) hereof, the indemnifying party
agrees that it shall be liable for any settlement of any proceeding effected
without its written consent if (i) such settlement is entered into more
than 30 days after receipt by such indemnifying party of the aforesaid request
and (ii) such indemnifying party shall not have reimbursed the indemnified
party in accordance with such request prior to the date of such
settlement.  No indemnifying party shall,
without the prior written consent of the indemnified party, effect any settlement,
compromise or consent to the entry of judgment in any pending or threatened
action, suit or proceeding in respect of which any indemnified party is or
could have been a party and indemnity was or could have been sought hereunder
by such indemnified party, unless such settlement, compromise or consent (x)
includes an unconditional release of such indemnified party from all liability
on claims that are the subject matter of such action, suit or proceeding and
(y) does not include a statement as to or an admission of fault, culpability or
a failure to act by or on behalf of any indemnified party.

(e)                                  If
the indemnification provided for in Section 6 is for any reason unavailable to
or otherwise insufficient to hold harmless an indemnified party in respect of
any Loss referred to therein, then each indemnifying party shall contribute to
the aggregate amount paid or payable by such indemnified party, as incurred, as
a result of any Loss referred to therein:

(i)                                     in
such proportion as is appropriate to reflect the relative benefits received by
the Company, on the one hand, and the Holders, on the other hand, from the
offering and sale of the Transfer Restricted Securities, on the one hand, and a
Holder with respect to the sale by such Holder of the Transfer Restricted
Securities, on the other hand, or

(ii)                                  if
the allocation provided by Section (6)(e)(i) above is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in Section 6(e)(i) above but also the relative
fault of the Company, on the one hand, and the Holders, on the other hand, in 

 19
 

 

connection
with the statements or omissions or alleged statements or omissions that
resulted in such Loss, as well as any other relevant equitable considerations.

The relative
benefits received by the Company, on the one hand, and the Holders, on the
other hand, in connection with such offering and such sale of the Transfer
Restricted Securities pursuant to this Agreement shall be deemed to be in the
same respective proportions as the total net proceeds from the offering of the
Notes purchased under the Purchase Agreement (before deducting expenses)
received by the Company and the total proceeds received by the Holders with
respect to their sale of Transfer Restricted Securities.  The relative fault of the Company, on the one
hand, and the Holders, on the other hand, shall be determined by reference to,
among other things, whether any such untrue or alleged untrue statement of a
material fact or omission or alleged omission to state a material fact relates
to information supplied by the Company, on the one hand, or the Holders, on the
other hand, and the parties’ relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission.  The Company and the Holders agree that it
would not be just and equitable if contribution pursuant to this Section 6(e)
were determined by pro rata allocation (even if the Holders were treated as one
entity for such purpose) or by any other method of allocation that does not
take account of the equitable considerations referred to in this Section 6(e).

The amount
paid or payable by a party as a result of the Loss referred to above shall be
deemed to include, subject to the limitations set forth in Section 6(c), any
legal or other fees or expenses reasonably incurred by such party in connection
with investigating or defending any action or claim.

Notwithstanding
the provisions of this Section 6, in no event will (i) any Holder be required
to undertake liability to any person under this Section 6 for any amounts in
excess of the dollar amount of the proceeds to be received by such Holder from
the sale of such Holder’s Transfer Restricted Securities (after deducting any
fees, discounts and commissions applicable thereto) pursuant to any Shelf
Registration Statement under which such Transfer Restricted Securities are to
be registered under the Securities Act and (ii) any underwriter be required to
undertake liability to any person hereunder for any amounts in excess of the
discount or commission payable to such underwriter with respect to the Transfer
Restricted Securities underwritten by it and distributed to the public.  No Person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled
to contribution from any Person who was not guilty of such fraudulent
misrepresentation.  The Holders’
obligations to contribute as provided in this Section 6(e) are several and not
joint.

(f)                                    The
provisions of this Section 6 shall remain in full force and effect, regardless
of any investigation made by or on behalf of any Holder or the Company or any
of the officers, directors or controlling persons referred to in Section 6
hereof, and will survive the sale by a Holder of Transfer Restricted
Securities.

6.                                       Rule
144A and Rule 144.  The Company
agrees with each Holder, for so long as any Transfer Restricted Securities
remain outstanding and during any period in which the Company (i) is not
subject to Section 13 or 15(d) of the Exchange Act, to make available, upon
request of any Holder, to such Holder or beneficial owner of Transfer
Restricted Securities in connection with any sale thereof and any prospective
purchaser of such Transfer Restricted

 20
 

 

 

Securities designated by
such Holder or beneficial owner, the information required by Rule 144A(d)(4)
under the Securities Act in order to permit resales of such Transfer Restricted
Securities pursuant to Rule 144A, and (ii) is subject to Section 13 or 15 (d)
of the Exchange Act, to make all filings required thereby in a timely manner in
order to permit resales of such Transfer Restricted Securities pursuant to Rule
144.

7.                                       Underwritten
Registrations.

(a)                                  Any
Holder of Transfer Restricted Securities who desires to do so may sell Transfer
Restricted Securities (in whole or in part) in an underwritten offering;
provided that (i) the Holders of at least 33-1/3% in aggregate principal amount
of the Transfer Restricted Securities then covered by the Shelf Registration
Statement shall request such an offering and (ii) at least such aggregate
principal amount of such Transfer Restricted Securities shall be included in
such offering; and provided further that the Company shall not be obligated to
participate in more than one underwritten offering during the Effectiveness
Period.  Upon receipt of such a request,
the Company shall provide all Holders of Transfer Restricted Securities written
notice of the request, which notice shall inform such Holders that they have
the opportunity to participate in the offering. 
If any of the Transfer Restricted Securities covered by the Shelf
Registration Statement are to be sold in an underwritten offering, the Managing
Underwriters shall be selected by the Majority of Holders, subject to the
approval of the Company, which approval will not be unreasonably withheld or
delayed.

(b)                                 No
person may participate in any underwritten offering pursuant to the Shelf
Registration Statement unless such person (i) agrees to sell such person’s
Notes on the basis reasonably provided in any underwriting arrangements approved
by the persons entitled hereunder to approve such arrangements; (ii) completes
and executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents reasonably required under the terms of such
underwriting arrangements; and (iii) if such Holder is not then a Notice
Holder, such Holder returns a completed and signed Notice and Questionnaire to
the Company in accordance with Section 2(f) hereof within a reasonable amount
of time before such underwritten offering.

(c)                                  The
Holders participating in any underwritten offering shall be responsible for any
underwriting discounts and commissions and fees and, subject to Section 5
hereof, expenses of their own counsel. 
The Company shall pay all expenses customarily borne by issuers in an
underwritten offering, including but not limited to filing fees, the fees and
disbursements of its counsel and independent public accountants and any
printing expenses incurred in connection with such underwritten offering.  Notwithstanding the foregoing or the
provisions of Section 4(b)(xxv) hereof, upon receipt of a request from the
Managing Underwriter or a representative of holders of a majority of the
Transfer Restricted Securities to be included in an underwritten offering to
prepare and file an amendment or supplement to the Shelf Registration Statement
and Prospectus in connection with an underwritten offering, the Company may
delay the filing of any such amendment or supplement for up to ninety (90) days
if the Board of Directors of the Company shall have determined in good faith
that the Company has a bona fide business reason for such delay.

 21
 

 

8.                                       Miscellaneous.

(a)                                  Free
Writing Prospectuses.  Each Holder
represents that it has not prepared or had prepared on its behalf or used or
referred to, and agrees that it will not prepare or have prepared on its behalf
or use or refer to, any Free Writing Prospectus, and has not distributed and
will not distribute any written materials in connection with the offer or sale
of the Transfer Restricted Securities without the prior express written consent
of the Company and, in connection with any underwritten offering, the
underwriters.  Any such Free Writing
Prospectus consented to by the Company and, if applicable, the underwriters, as
the case may be, is hereinafter referred to as a “Permitted Free Writing Prospectus.”  The Company represents and agrees that it has
treated and will treat, as the case may be, each Permitted Free Writing
Prospectus as an Issuer Free Writing Prospectus, including in respect of timely
filing with the Commission, legending and recordkeeping.

(b)                                 Remedies.  The Company acknowledges and agrees that any
failure by the Company to comply with its obligations under Section 2 hereof
may result in material irreparable injury to the Initial Purchaser or the
Holders for which there is no adequate remedy at law, that it will not be
possible to measure damages for such injuries precisely, and that, in the event
of any such failure, in addition to being entitled to exercise all rights provided
to it herein, in the Indenture or in the Purchase Agreement or granted by law,
including recovery of liquidated or other damages, the Initial Purchaser or any
Holder may obtain such relief as may be required to specifically enforce the
Company’s obligations under Section 2 hereof. 
The Company further agrees to waive the defense in any action for
specific performance that a remedy at law would be adequate.

(c)                                  Actions
Affecting Transfer Restricted Securities. 
The Company shall not, directly or indirectly, take any action with
respect to the Transfer Restricted Securities as a class that would adversely
affect the ability of the Holders of Transfer Restricted Securities to include
such Transfer Restricted Securities in a registration undertaken pursuant to
this Agreement.

(d)                                 No
Inconsistent Agreements.  The Company
has not, as of the date hereof, entered into, nor shall it, on or after the
date hereof, enter into, any agreement with respect to its securities that is
inconsistent with the rights granted to the Holders in this Agreement or
otherwise conflicts with the provisions hereof. 
In addition, the Company shall not grant to any of its securityholders
(other than the Holders of Transfer Restricted Securities in such capacity) the
right to include any of its securities in the Shelf Registration Statement
provided for in this Agreement other than the Transfer Restricted Securities.

(e)                                  Amendments
and Waivers.  This Agreement may not
be amended, modified or supplemented, and waivers or consents to or departures
from the provisions hereof may not be given, unless the Company has obtained
the written consent of a Majority of Holders; provided, however, that with
respect to any matter that directly or indirectly adversely affects the rights
of the Initial Purchaser hereunder, the Company shall obtain the written
consent of the Initial Purchaser against which such amendment,

 22
 

 

qualification, supplement, waiver or consent is to be effective.  Notwithstanding the foregoing (except the
foregoing proviso), a waiver or consent to depart from the provisions hereof
with respect to a matter that relates exclusively to the rights of Holders
whose securities are being sold pursuant to a Shelf Registration Statement and
does not directly or indirectly adversely affect the rights of other Holders,
may be given by the Majority of Holders, determined on the basis of Notes being
sold rather than registered under such Shelf Registration Statement.

(f)                                    Notices.  All notices and other communications provided
for or permitted hereunder shall be made in writing by hand delivery, first
class mail (registered or certified, return receipt requested), facsimile
transmission, or air courier guaranteeing overnight delivery:

(i)                                     If
to a Holder, at the address set forth on the records of the registrar under the
Indenture or the transfer agent of the Common Stock, as the case may be;

(ii)                                  If
to the Company, initially at its address set forth in the Purchase Agreement,
with a copy to:

Ballard Spahr Andrews & Ingersoll, LLP

51st Floor

1735 Market Street

Philadelphia, PA 19103-7599

Facsimile: 
(215) 864-9181

Attention:  Gerald J. Guarcini,
Esq.

(iii)                               If
to the Initial Purchaser at its address set forth in the Purchase Agreement,
with a copy to:

Shearman & Sterling LLP

599 Lexington Avenue

New York, NY 10022

Facsimile: 
(212) 848-4000

Attention:  Robert Evans III, Esq.

All such
notices and communications shall be deemed to have been duly given:  at the time delivered by hand, if personally
delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; when receipt acknowledged, if transmitted by facsimile; and
on the next Business Day, if timely delivered to an air courier guaranteeing
overnight delivery.

Any party
hereto may change the address for receipt of communications by giving written
notice to the others.

(g)                                 Successors
and Assigns.  This Agreement shall
inure to the benefit of and be binding upon the successors and assigns of each
of the parties, including without limitation and without the need for an
express assignment, subsequent Holders of

 23
 

 

Transfer Restricted Securities. 
The Company hereby agrees to extend the benefit of this Agreement to any
Holder and any such Holder may specifically enforce the provisions of this
Agreement as if an original party hereto.

(h)                                 Counterparts.  This Agreement may be executed in any number
of counterparts and by the parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

(i)                                     Jurisdiction.  The Company agrees that any suit, action or
proceeding against the Company brought by any Holder or the Initial Purchaser,
the directors, officers, employees, Affiliates and agents of any Holder or the Initial
Purchaser, or by any person who controls any Holder or the Initial Purchaser,
arising out of or based upon this Agreement or the transactions contemplated
hereby may be instituted in any State or U.S. federal court in The City of New
York and County of New York, and waives any objection which it may now or
hereafter have to the laying of venue of any such proceeding, and irrevocably
submits to the non-exclusive jurisdiction of such courts in any suit, action or
proceeding.

(j)                                     Notes
Held by the Company or Their Affiliates. 
Whenever the consent or approval of Holders of a specified percentage of
Transfer Restricted Securities is required hereunder, Transfer Restricted
Securities held by the Company or its Affiliates (other than subsequent Holders
if such subsequent Holders are deemed to be Affiliates solely by reason of
their holding of such Notes) shall not be counted in determining whether such
consent or approval was given by the Holders of such required percentage.

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

(l)                                     Governing
Law.  This Agreement shall be
governed by and construed in accordance with the law of the State of New York.

(m)                               Severability.  If any one or more of the provisions
contained herein, or the application thereof in any circumstance, is held
invalid, illegal or unenforceable, the validity, legality and enforceability of
any such provision in every other respect and of the remaining provisions contained
herein shall not be affected or impaired thereby, it being intended that all of
the rights and privileges of the parties shall be enforceable to the fullest
extent permitted by law.

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

 24
 

 

[Signature Page
Follows]

 25
 

 

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

	
  

  	
   

  	
  TRIUMPH GROUP, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s /John R. Bartholdson

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  John R.
  Bartholdson

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Senior Vice
  President

  	
   

  
	
   

  	
   

  	
   

  	
  Chief Financial
  Officer & Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BANC OF AMERICA SECURITIES LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
   /s /Jay H.
  Caldwell

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 

  	
  Jay H. Caldwell

  	
   

  
	
   

  	
   

  	
   

  	
  Title: 

  	
  Managing Director

  	
   

  
												

 

 26

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