Document:

Exhibit 4.1

 

SUBORDINATED INDENTURE

 

VERTEX PHARMACEUTICALS INCORPORATED,

 

ISSUER

 

AND

 

U.S. BANK NATIONAL ASSOCIATION,

 

TRUSTEE

 

INDENTURE

 

Dated as of September 28, 2010

 

Subordinated Debt Securities

 

 

CROSS-REFERENCE TABLE(1)

 

	
  Section of Trust Indenture Act of 1939, as amended

  	
   

  	
  Section of Indenture

  
	
   

  	
   

  	
   

  
	
  310(a)

  	
   

  	
  7.09

  
	
   

  	
   

  	
   

  
	
  310(b)

  	
   

  	
  7.08,
  7.10

  
	
   

  	
   

  	
   

  
	
  310(c)

  	
   

  	
  Inapplicable

  
	
   

  	
   

  	
   

  
	
  311(a)

  	
   

  	
  7.13

  
	
   

  	
   

  	
   

  
	
  311(b)

  	
   

  	
  7.13

  
	
   

  	
   

  	
   

  
	
  311(c)

  	
   

  	
  Inapplicable

  
	
   

  	
   

  	
   

  
	
  312(a)

  	
   

  	
  5.01,
  5.02(a)

  
	
   

  	
   

  	
   

  
	
  312(b)

  	
   

  	
  5.02(c)

  
	
   

  	
   

  	
   

  
	
  312(c)

  	
   

  	
  5.02(c)

  
	
   

  	
   

  	
   

  
	
  313(a)

  	
   

  	
  5.04(a)

  
	
   

  	
   

  	
   

  
	
  313(b)

  	
   

  	
  5.04(b)

  
	
   

  	
   

  	
   

  
	
  313(c)

  	
   

  	
  5.04(a),
  5.04(b)

  
	
   

  	
   

  	
   

  
	
  313(d)

  	
   

  	
  5.04(b),
  5.04(c)

  
	
   

  	
   

  	
   

  
	
  314(a)

  	
   

  	
  5.03,
  13.05(c)

  
	
   

  	
   

  	
   

  
	
  314(b)

  	
   

  	
  Inapplicable

  
	
   

  	
   

  	
   

  
	
  314(c)

  	
   

  	
  13.05

  
	
   

  	
   

  	
   

  
	
  314(d)

  	
   

  	
  Inapplicable

  
	
   

  	
   

  	
   

  
	
  314(e)

  	
   

  	
  13.05

  
	
   

  	
   

  	
   

  
	
  314(f)

  	
   

  	
  Inapplicable

  
	
   

  	
   

  	
   

  
	
  315(a)

  	
   

  	
  7.01(b),
  7.02

  
	
   

  	
   

  	
   

  
	
  315(b)

  	
   

  	
  5.04(d)

  
	
   

  	
   

  	
   

  
	
  315(c)

  	
   

  	
  7.01

  
	
   

  	
   

  	
   

  
	
  315(d)

  	
   

  	
  7.01,
  7.02

  
	
   

  	
   

  	
   

  
	
  315(e)

  	
   

  	
  6.07

  
	
   

  	
   

  	
   

  
	
  316(a)

  	
   

  	
  6.06,
  8.04

  

 

i

 

	
  Section of Trust Indenture Act of 1939, as amended

  	
   

  	
  Section of Indenture

  
	
   

  	
   

  	
   

  
	
  316(b)

  	
   

  	
  6.04

  
	
   

  	
   

  	
   

  
	
  316(c)

  	
   

  	
  8.01

  
	
   

  	
   

  	
   

  
	
  317(a)

  	
   

  	
  6.02

  
	
   

  	
   

  	
   

  
	
  317(b)

  	
   

  	
  4.03

  
	
   

  	
   

  	
   

  
	
  318(a)

  	
   

  	
  3.06

  

 

(1)          This Cross-Reference Table does not constitute part
of the Indenture and shall not have any bearing on the interpretation of any of
its terms or provisions.

 

ii

 

TABLE OF CONTENTS(2)

 

	
  ARTICLE I

  	
  DEFINITIONS

  	
  1

  
	
   

  	
   

  
	
  SECTION 1.01

  	
  Definitions of Terms

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION AND
  EXCHANGE OF SECURITIES

  	
  4

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01

  	
  Designation and Terms of Securities

  	
  4

  
	
   

  	
   

  	
   

  
	
  SECTION 2.02

  	
  Form of Securities and Trustee’s Certificate

  	
  6

  
	
   

  	
   

  	
   

  
	
  SECTION 2.03

  	
  Denominations; Provisions for Payment

  	
  6

  
	
   

  	
   

  	
   

  
	
  SECTION 2.04

  	
  Execution and Authentications

  	
  7

  
	
   

  	
   

  	
   

  
	
  SECTION 2.05

  	
  Registration of Transfer and Exchange

  	
  7

  
	
   

  	
   

  	
   

  
	
  SECTION 2.06

  	
  Temporary Securities

  	
  8

  
	
   

  	
   

  	
   

  
	
  SECTION 2.07

  	
  Mutilated, Destroyed, Lost or Stolen Securities

  	
  9

  
	
   

  	
   

  	
   

  
	
  SECTION 2.08

  	
  Cancellation

  	
  9

  
	
   

  	
   

  	
   

  
	
  SECTION 2.09

  	
  Benefits of Indenture

  	
  9

  
	
   

  	
   

  	
   

  
	
  SECTION 2.10

  	
  Authenticating Agent

  	
  9

  
	
   

  	
   

  	
   

  
	
  SECTION 2.11

  	
  Global Securities

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS

  	
  11

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01

  	
  Redemption

  	
  11

  
	
   

  	
   

  	
   

  
	
  SECTION 3.02

  	
  Notice of Redemption

  	
  11

  
	
   

  	
   

  	
   

  
	
  SECTION 3.03

  	
  Payment Upon Redemption

  	
  12

  
	
   

  	
   

  	
   

  
	
  SECTION 3.04

  	
  Sinking Fund

  	
  12

  
	
   

  	
   

  	
   

  
	
  SECTION 3.05

  	
  Satisfaction of Sinking Fund Payments with Securities

  	
  12

  
	
   

  	
   

  	
   

  
	
  SECTION 3.06

  	
  Redemption of Securities for Sinking Fund

  	
  12

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  COVENANTS

  	
  13

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01

  	
  Payment of Principal, Premium and Interest

  	
  13

  
	
   

  	
   

  	
   

  
	
  SECTION 4.02

  	
  Maintenance of Office or Agency

  	
  13

  
	
   

  	
   

  	
   

  
	
  SECTION 4.03

  	
  Paying Agents

  	
  13

  
	
   

  	
   

  	
   

  
	
  SECTION 4.04

  	
  Appointment to Fill Vacancy in Office of Trustee

  	
  14

  
				

 

iii

 

	
  ARTICLE V

  	
  SECURITYHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE
  TRUSTEE

  	
  14

  
	
   

  	
   

  	
   

  
	
  SECTION 5.01

  	
  Company to Furnish Trustee Names and Addresses of
  Securityholders

  	
  14

  
	
   

  	
   

  	
   

  
	
  SECTION 5.02

  	
  Preservation Of Information; Communications With
  Securityholders

  	
  14

  
	
   

  	
   

  	
   

  
	
  SECTION 5.03

  	
  Reports by the Company

  	
  14

  
	
   

  	
   

  	
   

  
	
  SECTION 5.04

  	
  Reports by the Trustee

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF
  DEFAULT

  	
  15

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01

  	
  Events of Default

  	
  15

  
	
   

  	
   

  	
   

  
	
  SECTION 6.02

  	
  Suits for Enforcement by Trustee

  	
  16

  
	
   

  	
   

  	
   

  
	
  SECTION 6.03

  	
  Application of Moneys Collected

  	
  17

  
	
   

  	
   

  	
   

  
	
  SECTION 6.04

  	
  Limitation on Suits

  	
  17

  
	
   

  	
   

  	
   

  
	
  SECTION 6.05

  	
  Rights and Remedies Cumulative; Delay or Omission Not
  Waiver

  	
  18

  
	
   

  	
   

  	
   

  
	
  SECTION 6.06

  	
  Control by Securityholders

  	
  18

  
	
   

  	
   

  	
   

  
	
  SECTION 6.07

  	
  Undertaking to Pay Costs

  	
  18

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
  CONCERNING THE TRUSTEE

  	
  19

  
	
   

  	
   

  	
   

  
	
  SECTION 7.01

  	
  Certain Duties and Responsibilities of Trustee

  	
  19

  
	
   

  	
   

  	
   

  
	
  SECTION 7.02

  	
  Certain Rights of Trustee

  	
  20

  
	
   

  	
   

  	
   

  
	
  SECTION 7.03

  	
  Trustee Not Responsible for Recitals or Issuance or
  Securities

  	
  21

  
	
   

  	
   

  	
   

  
	
  SECTION 7.04

  	
  May Hold Securities

  	
  21

  
	
   

  	
   

  	
   

  
	
  SECTION 7.05

  	
  Moneys Held in Trust

  	
  21

  
	
   

  	
   

  	
   

  
	
  SECTION 7.06

  	
  Compensation and Reimbursement

  	
  21

  
	
   

  	
   

  	
   

  
	
  SECTION 7.07

  	
  Reliance on Officers’ Certificate

  	
  21

  
	
   

  	
   

  	
   

  
	
  SECTION 7.08

  	
  Disqualification; Conflicting Interests

  	
  22

  
	
   

  	
   

  	
   

  
	
  SECTION 7.09

  	
  Corporate Trustee Required; Eligibility

  	
  22

  
	
   

  	
   

  	
   

  
	
  SECTION 7.10

  	
  Resignation and Removal; Appointment of Successor

  	
  22

  
	
   

  	
   

  	
   

  
	
  SECTION 7.11

  	
  Acceptance of Appointment By Successor

  	
  23

  
	
   

  	
   

  	
   

  
	
  SECTION 7.12

  	
  Merger, Conversion, Consolidation or Succession to Business

  	
  24

  
				

 

iv

 

	
  SECTION 7.13

  	
  Preferential Collection of Claims Against the Company

  	
  24

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
  CONCERNING THE SECURITYHOLDERS

  	
  24

  
	
   

  	
   

  	
   

  
	
  SECTION 8.01

  	
  Evidence of Action by Securityholders

  	
  24

  
	
   

  	
   

  	
   

  
	
  SECTION 8.02

  	
  Proof of Execution by Securityholders

  	
  25

  
	
   

  	
   

  	
   

  
	
  SECTION 8.03

  	
  Who May be Deemed Owners

  	
  25

  
	
   

  	
   

  	
   

  
	
  SECTION 8.04

  	
  Certain Securities Owned by Company Disregarded

  	
  25

  
	
   

  	
   

  	
   

  
	
  SECTION 8.05

  	
  Actions Binding on Future Securityholders

  	
  25

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
  SUPPLEMENTAL INDENTURES

  	
  26

  
	
   

  	
   

  	
   

  
	
  SECTION 9.01

  	
  Supplemental Indentures Without the Consent of
  Securityholders

  	
  26

  
	
   

  	
   

  	
   

  
	
  SECTION 9.02

  	
  Supplemental Indentures With Consent of Securityholders

  	
  26

  
	
   

  	
   

  	
   

  
	
  SECTION 9.03

  	
  Effect of Supplemental Indentures

  	
  27

  
	
   

  	
   

  	
   

  
	
  SECTION 9.04

  	
  Securities Affected by Supplemental Indentures

  	
  27

  
	
   

  	
   

  	
   

  
	
  SECTION 9.05

  	
  Execution of Supplemental Indentures

  	
  27

  
	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
  SUCCESSOR ENTITY

  	
  28

  
	
   

  	
   

  	
   

  
	
  SECTION 10.01

  	
  Company May Consolidate, Etc.

  	
  28

  
	
   

  	
   

  	
   

  
	
  SECTION 10.02

  	
  Successor Entity Substituted

  	
  28

  
	
   

  	
   

  	
   

  
	
  SECTION 10.03

  	
  Evidence of Consolidation, Etc.

  	
  28

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI

  	
  SATISFACTION AND DISCHARGE

  	
  29

  
	
   

  	
   

  	
   

  
	
  SECTION 11.01

  	
  Satisfaction and Discharge of Indenture

  	
  29

  
	
   

  	
   

  	
   

  
	
  SECTION 11.02

  	
  Discharge of Obligations

  	
  29

  
	
   

  	
   

  	
   

  
	
  SECTION 11.03

  	
  Deposited Moneys to be Held in Trust

  	
  29

  
	
   

  	
   

  	
   

  
	
  SECTION 11.04

  	
  Payment of Moneys Held by Paying Agents

  	
  29

  
	
   

  	
   

  	
   

  
	
  SECTION 11.05

  	
  Repayment to Company

  	
  30

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII

  	
  IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND
  DIRECTORS

  	
  30

  
	
   

  	
   

  	
   

  
	
  SECTION 12.01

  	
  No Recourse

  	
  30

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIII

  	
  MISCELLANEOUS PROVISIONS

  	
  30

  
	
   

  	
   

  	
   

  
	
  SECTION 13.01

  	
  Effect on Successors and Assigns

  	
  30

  
				

 

v

 

	
  SECTION 13.02

  	
  Actions by Successor

  	
  30

  
	
   

  	
   

  	
   

  
	
  SECTION 13.03

  	
  Notices

  	
  30

  
	
   

  	
   

  	
   

  
	
  SECTION 13.04

  	
  Governing Law

  	
  31

  
	
   

  	
   

  	
   

  
	
  SECTION 13.05

  	
  Submission to Jurisdiction; Appointment of Agent for
  Service of Process

  	
  31

  
	
   

  	
   

  	
   

  
	
  SECTION 13.06

  	
  Compliance Certificates and Opinions

  	
  31

  
	
   

  	
   

  	
   

  
	
  SECTION 13.07

  	
  Payments on Business Days

  	
  32

  
	
   

  	
   

  	
   

  
	
  SECTION 13.08

  	
  Conflict with Trust Indenture Act

  	
  32

  
	
   

  	
   

  	
   

  
	
  SECTION 13.09

  	
  Counterparts

  	
  32

  
	
   

  	
   

  	
   

  
	
  SECTION 13.10

  	
  Separability

  	
  32

  
	
   

  	
   

  	
   

  
	
  SECTION 13.11

  	
  Assignment

  	
  32

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIV

  	
  SUBORDINATION OF SECURITIES

  	
  32

  
	
   

  	
   

  	
   

  
	
  SECTION 14.01

  	
  Subordination Terms

  	
  32

  
				

 

(1)          This Table of Contents does not constitute part of
the Indenture and shall not have any bearing on the interpretation of any of
its terms or provisions.

 

vi

 

INDENTURE,
dated as of September 28, 2010, between VERTEX PHARMACEUTICALS
INCORPORATED, a corporation duly organized and existing under the laws of the
Commonwealth of Massachusetts, having its principal office at 130 Waverly
Street, Cambridge, Massachusetts 02139 (the “Company”), and U.S. BANK NATIONAL
ASSOCIATION, as trustee (the “Trustee”):

 

WHEREAS,
for its lawful corporate purposes, the Company has duly authorized the
execution and delivery of this Indenture to provide for the issuance of
unsecured subordinated debt securities (hereinafter referred to as the “Securities”),
in an unlimited aggregate principal amount to be issued from time to time in
one or more series as in this Indenture provided, as registered Securities
without coupons, to be authenticated by the certificate of the Trustee;

 

WHEREAS,
to provide the terms and conditions upon which the Securities are to be
authenticated, issued and delivered, the Company has duly authorized the
execution of this Indenture; and

 

WHEREAS,
all things necessary to make this Indenture a valid agreement of the Company,
in accordance with its terms, have been done.

 

NOW,
THEREFORE, in consideration of the premises and the purchase of the Securities
by the holders thereof, it is mutually covenanted and agreed as follows for the
equal and ratable benefit of the holders of Securities:

 

ARTICLE I

 

DEFINITIONS

 

SECTION 1.01  Definitions of Terms.

 

The
terms defined in this Section (except as in this Indenture otherwise
expressly provided or unless the context otherwise requires) for all purposes
of this Indenture and of any indenture supplemental hereto shall have the
respective meanings specified in this Section and shall include the plural
as well as the singular.  All other terms
used in this Indenture that are defined in the Trust Indenture Act of 1939, as
amended, or that are by reference in such Act defined in the Securities Act of
1933, as amended (except as herein otherwise expressly provided or unless the
context otherwise requires), shall have the meanings assigned to such terms in
said Trust Indenture Act and in said Securities Act as in force at the date of
the execution of this instrument.

 

“Authenticating
Agent” means an authenticating agent with respect to all or any of the series
of Securities appointed with respect to all or any series of the Securities by
the Trustee pursuant to Section 2.10.

 

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

 

“Board
Resolution” means a copy of a resolution certified by the Secretary or an
Assistant Secretary of the Company to have been duly adopted by the Board of
Directors and to be in full force and effect on the date of such certification.

 

“Business
Day” means, with respect to any series of Securities, any day other than a day
on which Federal or State banking institutions in the Borough of Manhattan, The
City of New York, are authorized or obligated by law, executive order or
regulation to close.

 

“Certificate”
means a certificate signed by both (1) the Chief Executive Officer, the
President or a Vice President and (2) so long as not the same as the
officer signing pursuant to clause (1), the Chief Business Officer, the
Treasurer or the Clerk of the Company, and delivered to the Trustee.  The Certificate need not comply with the
provisions of Section 13.05.

 

1

 

“Company”
means Vertex Pharmaceuticals Incorporated, a corporation duly organized and
existing under the laws of the Commonwealth of Massachusetts and, subject to
the provisions of Article Ten, shall also include its successors and
assigns.

 

“Corporate
Trust Office” means the office of the Trustee at which, at any particular time,
its corporate trust business shall be principally administered, which office at
the date hereof is located at One Federal Street, Boston, Massachusetts 02110,
except that whenever a provision herein refers to an office or agency of the
Trustee in the Borough of Manhattan, The City of New York, such office is
located, at the date hereof, at 100 Wall Street, Suite 1600, New York, New
York 10005.

 

“Default”
means any event, act or condition that with notice or lapse of time, or both,
would constitute an Event of Default.

 

“Depositary”
means, with respect to Securities of any series, for which the Company shall
determine that such Securities will be issued as a Global Security, The
Depository Trust Company, New York, New York, another clearing agency, or any
successor registered as a clearing agency under the Securities Exchange Act of
1934, as amended (the “Exchange Act”), or other applicable statute or
regulation, which, in each case, shall be designated by the Company pursuant to
either Section 2.01 or 2.11.

 

“Event
of Default” means, with respect to Securities of a particular series any event
specified as described in Section 6.01 that has occurred and is
continuing.

 

“Global
Security” means, with respect to any series of Securities, a Security executed
by the Company and delivered by the Trustee to the Depositary or pursuant to the
Depositary’s instruction, all in accordance with the Indenture, which shall be
registered in the name of the Depositary or its nominee.

 

“Governmental
Obligations” means securities that are (i) direct obligations of the
United States of America for the payment of which its full faith and credit is
pledged or (ii) obligations of a Person controlled or supervised by and
acting as an agency or instrumentality of the United States of America, the
payment of which is unconditionally guaranteed as a full faith and credit
obligation by the United States of America that, in either case, are not
callable or redeemable at the option of the issuer thereof, and shall also
include a depositary receipt issued by a bank (as defined in
Section 3(a)(2) of the Securities Act of 1933, as amended) as
custodian with respect to any such Governmental Obligation or a specific
payment of principal of or interest on any such Governmental Obligation held by
such custodian for the account of the holder of such depositary receipt; provided,
however, that (except as required by law) such custodian is not authorized to
make any deduction from the amount payable to the holder of such depositary
receipt from any amount received by the custodian in respect of the
Governmental Obligation or the specific payment of principal of or interest on
the Governmental Obligation evidenced by such depositary receipt.

 

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

 

“Indenture”
means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered
into in accordance with the terms hereof.

 

“Interest
Payment Date,” when used with respect to any installment of interest on a
Security of a particular series, means the date specified in such Security or
in a Board Resolution or in an indenture supplemental hereto with respect to
such series as the fixed date on which an installment of interest with respect
to Securities of that series is due and payable.

 

“Officers’
Certificate” means a certificate signed by both (1) the Chief Executive
Officer, the President or a Vice President and (2) so long as not the same
as the officer signing pursuant to clause (1), the Chief Business Officer, the
Treasurer or the Clerk of the Company, that is delivered to the Trustee in
accordance with the terms hereof.  Each
such certificate shall include the statements provided for in
Section 13.06, if and to the extent required by the provisions thereof.

 

2

 

“Opinion
of Counsel” means an opinion in writing of legal counsel, who may be an
employee of or counsel for the Company, that is delivered to the Trustee in
accordance with the terms hereof.  Each
such opinion shall include the statements provided for in Section 13.06,
if and to the extent required by the provisions thereof.

 

“Outstanding,”
when used with reference to Securities of any series, means, subject to the
provisions of Section 8.04, as of any particular time, all Securities of
that series theretofore authenticated and delivered by the Trustee under this
Indenture, except (a) Securities theretofore canceled by the Trustee or
any paying agent, or delivered to the Trustee or any paying agent for
cancellation or that have previously been canceled; (b) Securities or
portions thereof for the payment or redemption of which moneys or Governmental
Obligations in the necessary amount shall have been deposited in trust with the
Trustee or with any paying agent (other than the Company) or shall have been
set aside and segregated in trust by the Company (if the Company shall act as
its own paying agent); provided, however, that if such Securities or portions
of such Securities are to be redeemed prior to the maturity thereof, notice of
such redemption shall have been given as in Article Three provided, or
provision satisfactory to the Trustee shall have been made for giving such notice;
and (c) Securities in lieu of or in substitution for which other
Securities shall have been authenticated and delivered pursuant to the terms of
Section 2.07.

 

“Person”
means any individual, corporation, partnership, joint venture, joint-stock
company, unincorporated organization or government or any agency or political
subdivision thereof.

 

“Place
of Payment,” when used with respect to the Securities of any series and subject
to Section 4.02, means the place or places where the principal of and any
premium and interest on the Securities of that series are payable as specified
as contemplated by Section 2.01.

 

“Predecessor
Security” of any particular Security means every previous Security evidencing
all or a portion of the same debt as that evidenced by such particular
Security; and, for the purposes of this definition, any Security authenticated
and delivered under Section 2.07 in lieu of a lost, destroyed or stolen
Security shall be deemed to evidence the same debt as the lost, destroyed or
stolen Security.

 

“Responsible
Officer” when used with respect to the Trustee means the Chief Executive
Officer, the President, any Senior Vice President, the Secretary, the
Treasurer, any trust officer, any corporate trust officer or any other officer
or assistant officer of the Trustee customarily performing functions similar to
those performed by the Persons who at the time shall be such officers,
respectively, or to whom any corporate trust matter is referred because of his
or her knowledge of and familiarity with the particular subject.

 

“Securities”
means the debt Securities authenticated and delivered under this Indenture.

 

“Securityholder,”
“holder of Securities,” “registered holder” or other similar term, means the
Person or Persons in whose name or names a particular Security shall be
registered on the books of the Company kept for that purpose in accordance with
the terms of this Indenture.

 

“Senior
Indebtedness” means indebtedness issued pursuant to a senior indenture, as
supplemented or amended by one or more indentures supplemental thereto, payment
of which shall be senior to the payment of the Securities issued hereunder,
pursuant to Section 14 hereof.

 

“Subsidiary”
means, with respect to any Person, (i) any corporation at least a majority
of whose outstanding Voting Stock shall at the time be owned, directly or
indirectly, by such Person or by one or more of its Subsidiaries or by such
Person and one or more of its Subsidiaries, (ii) any general partnership,
joint venture or similar entity, at least a majority of whose outstanding
partnership or similar interests shall at the time be owned by such Person, or
by one or more of its Subsidiaries, or by such Person and one or more of its
Subsidiaries and (iii) any limited partnership of which such Person or any
of its Subsidiaries is a general partner.

 

“Trustee”
means U.S. Bank National Association, and, subject to the provisions of
Article Seven, shall also include its successors and assigns, and, if at
any time there is more than one Person acting in such capacity 

 

3

 

hereunder,
“Trustee” shall mean each such Person. 
The term “Trustee” as used with respect to a particular series of the
Securities shall mean the trustee with respect to that series.

 

“Trust
Indenture Act” means the Trust Indenture Act of 1939, as amended, subject to
the provisions of Sections 9.01, 9.02 and 10.01, as in effect at the date of
execution of this instrument.

 

“Voting
Stock,” as applied to stock of any Person, means shares, interests, participations
or other equivalents in the equity interest (however designated) in such Person
having ordinary voting power for the election of the directors (or the
equivalent) of such Person, other than shares, interests, participations or
other equivalents having such power only by reason of the occurrence of a
contingency.

 

ARTICLE II

 

ISSUE, DESCRIPTION, TERMS,
EXECUTION, REGISTRATION AND EXCHANGE OF SECURITIES

 

SECTION 2.01  Designation and Terms of Securities.

 

(a)           The aggregate principal amount of Securities that may be
authenticated and delivered under this Indenture is unlimited.  The Securities may be issued in one or more
series up to the aggregate principal amount of Securities of that series from
time to time authorized by or pursuant to a Board Resolution of the Company or
pursuant to one or more indentures supplemental hereto.  Prior to the initial issuance of Securities
of any series, there shall be established in or pursuant to a Board Resolution,
and set forth in an Officers’ Certificate, or established in one or more
indentures supplemental hereto:

 

(1)           the title of the Security of the series (which shall
distinguish the Securities of the series from all other Securities);

 

(2)           any limit upon the aggregate principal amount of the
Securities of that series that may be authenticated and delivered under this
Indenture (except for Securities authenticated and delivered upon registration
of transfer of, or in exchange for, or in lieu of, other Securities of that
series);

 

(3)           the date or dates on which the principal of the Securities
of the series is payable and the place(s) of payment;

 

(4)           the place or places where the principal of and any premium
and interest on any Securities of the series shall be payable and the manner in
which any payment may be made;

 

(5)           the rate or rates at which the Securities of the series
shall bear interest or the manner of calculation of such rate or rates, if any;

 

(6)           the date or dates from which such interest shall accrue,
the Interest Payment Dates on which such interest will be payable or the manner
of determination of such Interest Payment Dates, the place(s) of payment,
and the record date for the determination of holders to whom interest is
payable on any such Interest Payment Dates;

 

(7)           the right, if any, to extend the interest payment periods
and the duration of such extension;

 

(8)           the period or periods within which, the price or prices at
which and the terms and conditions upon which, Securities of the series may be
redeemed, in whole or in part, at the option of the Company;

 

(9)           the obligation, if any, of the Company to redeem or
purchase Securities of the series pursuant to any sinking fund or analogous
provisions (including payments made in cash in satisfaction of future sinking
fund obligations) or at the option of a holder thereof and the period or
periods within which, the price or 

 

4

 

prices at which, and the terms and conditions upon
which, Securities of the series shall be redeemed or purchased, in whole or in
part, pursuant to such obligation;

 

(10)         the form of the Securities of the series including the form
of the certificate of authentication for such series;

 

(11)         if other than denominations of one thousand U.S. dollars
($1,000) or any integral multiple thereof, the denominations in which the
Securities of the series shall be issuable;

 

(12)         if other than currency of the United States of America, the
currency, currencies, composite currency, composite currencies or currency
units in which the principal of or any premium or interest on any Securities of
the series shall be payable and the manner of determining the equivalent
thereof in the currency of the United States of America for any purpose,
including for the purposes of making payment in the currency of the United
States of America and applying the definition of “Outstanding”;

 

(13)         if the principal of or any premium or interest on any
Securities of the series is to be payable, at the election of the Company or
the holder of Securities, in one or more currencies, composite currencies or
currency units other than that or those in which such Securities are stated to
be payable, the currency, currencies, composite currency, composite currencies
or currency units in which the principal of or any premium or interest on such
Securities as to which such election is made shall be payable, the periods
within which and the terms and conditions upon which such election is to be
made and the amount so payable (or the manner in which such amount shall be
determined);

 

(14)         any and all other terms with respect to such series (which
terms shall not be inconsistent with the terms of this Indenture, as amended by
any supplemental indenture) including any terms which may be required by or
advisable under United States laws or regulations or advisable in connection
with the marketing of Securities of that series;

 

(15)         whether the Securities are issuable as a Global Security
and, in such case, the identity of the Depositary for such series;

 

(16)         whether the Securities will be convertible into shares of
common stock or other securities of the Company and, if so, the terms and
conditions upon which such Securities will be so convertible, including the
conversion price and the conversion period;

 

(17)         if other than the principal amount thereof, the portion of
the principal amount of Securities of the series which shall be payable upon
declaration of acceleration of the maturity thereof pursuant to
Section 6.01;

 

(18)         the subordination terms of the Securities of the series; and

 

(19)         any Events of Default or restrictive covenants provided for
with respect to the Securities of the series and the consequences of any Events
of Default.

 

All
Securities of any one series shall be substantially identical except as to
denomination and except as may otherwise be provided in or pursuant to any such
Board Resolution or in any indentures supplemental hereto.

 

If
any of the terms of the series are established by action taken pursuant to a
Board Resolution, a copy of an appropriate record of such action shall be
certified by the Secretary or an Assistant Secretary of the Company and
delivered to the Trustee at or prior to the delivery of the Officers’
Certificate setting forth the terms of the series.

 

Securities
of any particular series may be issued at various times, with different dates
on which the principal or any installment of principal is payable, with
different rates of interest, if any, or different methods by 

 

5

 

which
rates of interest may be determined, with different dates on which such
interest may be payable and with different redemption dates.

 

SECTION 2.02  Form of Securities and Trustee’s
Certificate.

 

The
Securities of any series and the Trustee’s certificate of authentication to be
borne by such Securities shall be substantially of the tenor and purport as set
forth in one or more indentures supplemental hereto or as provided in a Board
Resolution and as set forth in an Officers’ Certificate and may have such
letters, numbers or other marks of identification or designation and such
legends or endorsements printed, lithographed or engraved thereon as the
Company may deem appropriate and as are not inconsistent with the provisions of
this Indenture, or as may be required to comply with any law or with any
rule or regulation made pursuant thereto or with any rule or
regulation of any stock exchange on which Securities of that series may be
listed, or to conform to usage.

 

SECTION 2.03  Denominations; Provisions for Payment.

 

The
Securities shall be issuable as registered Securities and in the denominations
of one thousand U.S. dollars ($1,000) or any integral multiple thereof, subject
to Section 2.01(10).  The Securities
of a particular series shall bear interest payable on the dates and at the rate
specified with respect to that series. 
The principal of and the interest on the Securities of any series, as
well as any premium thereon in case of redemption thereof prior to maturity,
shall be payable in the coin or currency of the United States of America that
at the time is legal tender for public and private debt, at the office or
agency of the Company maintained for that purpose in a Place of Payment for
that series.  Each Security shall be dated
the date of its authentication.  Interest
on the Securities shall be computed on the basis of a 360-day year composed of
twelve 30-day months.

 

The
interest installment on any Security that is payable, and is punctually paid or
duly provided for, on any Interest Payment Date for Securities of that series
shall be paid to the Person in whose name said Security (or one or more
Predecessor Securities) is registered at the close of business on the regular
record date for such interest installment. 
In the event that any Security of a particular series or portion thereof
is called for redemption and the redemption date is subsequent to a regular
record date with respect to any Interest Payment Date and prior to such
Interest Payment Date, interest on such Security will be paid upon presentation
and surrender of such Security as provided in Section 3.03.

 

Any
interest on any Security that is payable, but is not punctually paid or duly
provided for, on any Interest Payment Date for Securities of the same series
(herein called “Defaulted Interest”) shall forthwith cease to be payable to the
registered holder on the relevant regular record date by virtue of having been
such holder; and such Defaulted Interest shall be paid by the Company, at its
election, as provided in clause (1) or clause (2) below:

 

(1)           The Company may make payment of any Defaulted Interest on
Securities to the Persons in whose names such Securities (or their respective
Predecessor Securities) are registered at the close of business on a special
record date for the payment of such Defaulted Interest, which shall be fixed in
the following manner:  the Company shall
notify the Trustee in writing of the amount of Defaulted Interest proposed to
be paid on each such Security and the date of the proposed payment, and at the
same time the Company shall deposit with the Trustee an amount of money equal
to the aggregate amount proposed to be paid in respect of such Defaulted
Interest or shall make arrangements satisfactory to the Trustee for such
deposit prior to the date of the proposed payment, such money when deposited to
be held in trust for the benefit of the Persons entitled to such Defaulted
Interest as in this clause provided. 
Thereupon the Trustee shall fix a special record date for the payment of
such Defaulted Interest which shall not be more than 15 nor less than 10 days
prior to the date of the proposed payment and not less than 10 days after the
receipt by the Trustee of the notice of the proposed payment.  The Trustee shall promptly notify the Company
of such special record date and, in the name and at the expense of the Company,
shall cause notice of the proposed payment of such Defaulted Interest and the
special record date therefor to be mailed, first class postage prepaid, to each
Securityholder at his or her address as it appears in the Security Register (as
hereinafter defined), not less than 10 days prior to such special record
date.  Notice of the proposed payment of
such Defaulted Interest and the special record date therefor having been mailed
as aforesaid, such Defaulted Interest shall be paid to the Persons in whose
names such Securities (or their respective Predecessor Securities) are
registered on such special record date.

 

6

 

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

 

Unless
otherwise set forth in a Board Resolution or one or more indentures
supplemental hereto establishing the terms of any series of Securities pursuant
to Section 2.01 hereof, the term “regular record date” as used in this
Section with respect to a series of Securities with respect to any
Interest Payment Date for such series shall mean either the fifteenth day of
the month immediately preceding the month in which an Interest Payment Date
established for such series pursuant to Section 2.01 hereof shall occur,
if such Interest Payment Date is the first day of a month, or the last day of
the month immediately preceding the month in which an Interest Payment Date
established for such series pursuant to Section 2.01 hereof shall occur,
if such Interest Payment Date is the fifteenth day of a month, whether or not
such date is a Business Day.

 

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

 

SECTION 2.04  Execution and Authentications.

 

The
Securities shall be signed on behalf of the Company by two of its officers,
each of whom shall be the Chief Executive Officer, the President, the Chief
Business Officer, the Treasurer, any Vice President or the Clerk of the
Company.  Signatures may be in the form
of a manual or facsimile signature.  The
Company may use the facsimile signature of any Person who shall have been the
Chief Executive Officer, the President, the Chief Business Officer, the
Treasurer, a Vice President or the Clerk of the Company, notwithstanding the
fact that at the time the Securities shall be authenticated and delivered or
disposed of such Person shall have ceased to be the Chief Executive Officer,
the President, the Chief Business Officer, the Treasurer, a Vice President or
the Clerk of the Company.  The seal of
the Company may be in the form of a facsimile of such seal and may be
impressed, affixed, imprinted or otherwise reproduced on the Securities.  The Securities may contain such notations,
legends or endorsements required by law, stock exchange rule or
usage.  Each Security shall be dated the
date of its authentication by the Trustee.

 

A
Security shall not be valid until authenticated manually by an authorized signatory
of the Trustee, or by an Authenticating Agent. 
Such signature shall be conclusive evidence that the Security so
authenticated has been duly authenticated and delivered hereunder and that the
holder is entitled to the benefits of this Indenture.  At any time and from time to time after the
execution and delivery of this Indenture, the Company may deliver Securities of
any series executed by the Company to the Trustee for authentication, together
with a written order of the Company for the authentication and delivery of such
Securities, signed by the Chief Executive Officer, the President, the Chief
Business Officer, the Treasurer, a Vice President or the Clerk of the Company
and its Secretary or any Assistant Secretary, and the Trustee in accordance with
such written order shall authenticate and deliver such Securities.

 

In
authenticating such Securities and accepting the additional responsibilities
under this Indenture in relation to such Securities, the Trustee shall be
entitled to receive, and (subject to Section 7.01) shall be fully
protected in relying upon, an Opinion of Counsel stating that the form and
terms thereof have been established in conformity with the provisions of this
Indenture.

 

The
Trustee shall not be required to authenticate such Securities if the issue of
such Securities pursuant to this Indenture will affect the Trustee’s own
rights, duties or immunities under the Securities and this Indenture or
otherwise in a manner that is not reasonably acceptable to the Trustee.

 

SECTION 2.05  Registration of Transfer and Exchange.

 

(a)           Securities of any series may be exchanged upon
presentation thereof at the office or agency of the Company designated for such
purpose in a Place of Payment, for other Securities of such series of
authorized 

 

7

 

denominations, and for a like aggregate principal
amount, upon payment of a sum sufficient to cover any tax or other governmental
charge in relation thereto, all as provided in this Section.  In respect of any Securities so surrendered
for exchange, the Company shall execute, the Trustee shall authenticate and
such office or agency shall deliver in exchange therefor the Security or
Securities of the same series that the Securityholder making the exchange shall
be entitled to receive, bearing numbers not contemporaneously outstanding.

 

(b)           The Company shall keep, or cause to be kept, at its office
or agency designated for such purpose in a Place of Payment, or such other
location designated by the Company a register or registers (herein referred to
as the “Security Register”) in which, subject to such reasonable regulations as
it may prescribe, the Company shall register the Securities and the transfers
of Securities as in this Article provided and which at all reasonable
times shall be open for inspection by the Trustee.  The registrar for the purpose of registering
Securities and transfer of Securities as herein provided shall be appointed as
authorized by a Board Resolution (the “Security Registrar”).

 

Upon
surrender for transfer of any Security at the office or agency of the Company
designated for such purpose, the Company shall execute, the Trustee shall
authenticate and such office or agency shall deliver in the name of the
transferee or transferees a new Security or Securities of the same series as
the Security presented for a like aggregate principal amount.

 

All
Securities presented or surrendered for exchange or registration of transfer,
as provided in this Section, shall be accompanied (if so required by the
Company or the Security Registrar) by a written instrument or instruments of
transfer, in form satisfactory to the Company or the Security Registrar, duly
executed by the registered holder or by such holder’s duly authorized attorney
in writing.

 

(c)           No service charge shall be made for any exchange or
registration of transfer of Securities, or issue of new Securities in case of
partial redemption of any series, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge in relation thereto,
other than exchanges pursuant to Section 2.06,
Section 3.03(b) and Section 9.04 not involving any transfer.

 

(d)           The Company shall not be required (1) to issue,
exchange or register the transfer of any Securities during a period beginning
at the opening of business 15 days before the day of the mailing of a notice of
redemption of less than all the Outstanding Securities of the same series and
ending at the close of business on the day of such mailing, nor (2) to register
the transfer of or exchange any Securities of any series or portions thereof
called for redemption.  The provisions of
this Section 2.05 are, with respect to any Global Security, subject to
Section 2.11 hereof.

 

SECTION 2.06  Temporary Securities.

 

Pending
the preparation of definitive Securities of any series, the Company may
execute, and the Trustee shall authenticate and deliver, temporary Securities
(printed, lithographed or typewritten) of any authorized denomination.  Such temporary Securities shall be
substantially in the form of the definitive Securities in lieu of which they
are issued, but with such omissions, insertions and variations as may be
appropriate for temporary Securities, all as may be determined by the Company.  Every temporary Security of any series shall
be executed by the Company and be authenticated by the Trustee upon the same
conditions and in substantially the same manner, and with like effect, as the
definitive Securities of such series.  Without
unnecessary delay the Company will execute and will furnish definitive
Securities of such series and thereupon any or all temporary Securities of such
series may be surrendered in exchange therefor (without charge to the holders),
at the office or agency of the Company designated for the purpose in a Place of
Payment for that series, and the Trustee shall authenticate and such office or
agency shall deliver in exchange for such temporary Securities an equal
aggregate principal amount of definitive Securities of such series, unless the
Company advises the Trustee to the effect that definitive Securities need not
be executed and furnished until further notice from the Company.  Until so exchanged, the temporary Securities
of such series shall be entitled to the same benefits under this Indenture as
definitive Securities of such series authenticated and delivered hereunder.

 

8

 

SECTION 2.07  Mutilated, Destroyed, Lost or Stolen
Securities.

 

In
case any temporary or definitive Security shall become mutilated or be
destroyed, lost or stolen, the Company (subject to the next succeeding
sentence) shall execute, and upon the Company’s request, the Trustee (subject
as aforesaid) shall authenticate and deliver, a new Security of the same
series, bearing a number not contemporaneously outstanding, in exchange and
substitution for the mutilated Security, or in lieu of and in substitution for
the Security so destroyed, lost or stolen. 
In every case the applicant for a substituted Security shall furnish to
the Company and the Trustee such security or indemnity as may be required by
them to save each of them harmless, and, in every case of destruction, loss or
theft, the applicant shall also furnish to the Company and the Trustee evidence
to their satisfaction of the destruction, loss or theft of the applicant’s
Security and of the ownership thereof. 
The Trustee may authenticate any such substituted Security and deliver
the same upon the written request or authorization of any officer of the
Company.  Upon the issuance of any
substituted Security, 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.  In case any
Security that has matured or is about to mature shall become mutilated or be
destroyed, lost or stolen, the Company may, instead of issuing a substitute
Security, pay or authorize the payment of the same (without surrender thereof
except in the case of a mutilated Security) if the applicant for such payment
shall furnish to the Company and the Trustee such security or indemnity as they
may require to save each of them harmless, and, in case of destruction, loss or
theft, evidence to the satisfaction of the Company and the Trustee of the
destruction, loss or theft of such Security and of the ownership thereof.

 

Every
replacement Security issued pursuant to the provisions of this
Section shall constitute an additional contractual obligation of the
Company whether or not the mutilated, destroyed, lost or stolen Security shall
be found at any time, or be enforceable by anyone, and shall be entitled to all
the benefits of this Indenture equally and proportionately with any and all other
Securities of the same series duly issued hereunder.  All Securities shall be held and owned upon
the express condition that the foregoing provisions are exclusive with respect
to the replacement or payment of mutilated, destroyed, lost or stolen Securities,
and shall preclude (to the extent lawful) any and all other rights or remedies,
notwithstanding any law or statute existing or hereafter enacted to the
contrary with respect to the replacement or payment of negotiable instruments
or other securities without their surrender.

 

SECTION 2.08  Cancellation.

 

All
Securities surrendered for the purpose of payment, redemption, exchange or
registration of transfer shall, if surrendered to the Company or any paying
agent, be delivered to the Trustee for cancellation, or, if surrendered to the
Trustee, shall be cancelled by it, and no Securities shall be issued in lieu
thereof except as expressly required or permitted by any of the provisions of
this Indenture.  On request of the
Company at the time of such surrender, the Trustee shall deliver to the Company
canceled Securities held by the Trustee. 
In the absence of such request the Trustee may dispose of canceled
Securities in accordance with its standard procedures and deliver a certificate
of disposition to the Company.  If the
Company shall otherwise acquire any of the Securities, however, such
acquisition shall not operate as a redemption or satisfaction of the
indebtedness represented by such Securities unless and until the same are
delivered to the Trustee for cancellation.

 

SECTION 2.09  Benefits of Indenture.

 

Nothing
in this Indenture or in the Securities, express or implied, shall give or be
construed to give to any Person, other than the parties hereto and the holders
of the Securities (and, with respect to the provisions of
Article Fourteen, the holders of Senior Indebtedness), any legal or
equitable right, remedy or claim under or in respect of this Indenture, or
under any covenant, condition or provision herein contained; all such
covenants, conditions and provisions being for the sole benefit of the parties
hereto and of the holders of the Securities (and, with respect to the
provisions of Article Fourteen, the holders of Senior Indebtedness).

 

SECTION 2.10  Authenticating Agent.

 

So
long as any of the Securities of any series remain Outstanding there may be an
Authenticating Agent for any or all such series of Securities which the Trustee
shall have the right to appoint.  Said
Authenticating Agent shall 

 

9

 

be
authorized to act on behalf of the Trustee to authenticate Securities of such
series issued upon exchange, transfer or partial redemption thereof, and
Securities so authenticated shall be entitled to the benefits of this Indenture
and shall be valid and obligatory for all purposes as if authenticated by the
Trustee hereunder.  All references in
this Indenture to the authentication of Securities by the Trustee shall be
deemed to include authentication by an Authenticating Agent for such
series.  Each Authenticating Agent shall
be acceptable to the Company and shall be a corporation that has a combined
capital and surplus, as most recently reported or determined by it, sufficient
under the laws of any jurisdiction under which it is organized or in which it
is doing business to conduct a trust business, and that is otherwise authorized
under such laws to conduct such business and is subject to supervision or
examination by Federal or State authorities. 
If at any time any Authenticating Agent shall cease to be eligible in
accordance with these provisions, it shall resign immediately.

 

Any
Authenticating Agent may at any time resign by giving written notice of
resignation to the Trustee and to the Company. 
The Trustee may at any time (and upon request by the Company shall)
terminate the agency of any Authenticating Agent by giving written notice of
termination to such Authenticating Agent and to the Company.  Upon resignation, termination or cessation of
eligibility of any Authenticating Agent, the Trustee may appoint an eligible
successor Authenticating Agent acceptable to the Company.  Any successor Authenticating Agent, upon
acceptance of its appointment hereunder, shall become vested with all the
rights, powers and duties of its predecessor hereunder as if originally named
as an Authenticating Agent pursuant hereto.

 

SECTION 2.11  Global Securities.

 

(a)           If the Company shall establish pursuant to
Section 2.01 that the Securities of a particular series are to be issued
as a Global Security, then the Company shall execute and the Trustee shall, in
accordance with Section 2.04, authenticate and deliver, a Global Security
that (1) shall represent, and shall be denominated in an amount equal to
the aggregate principal amount of, all of the Outstanding Securities of such
series, (2) shall be registered in the name of the Depositary or its
nominee, (3) shall be delivered by the Trustee to the Depositary or
pursuant to the Depositary’s instruction and (4) shall bear a legend
substantially to the following effect:  “Except
as otherwise provided in Section 2.11 of the Indenture, this Security may
be transferred, in whole but not in part, only to another nominee of the
Depositary or to a successor Depositary or to a nominee of such successor
Depositary.”

 

(b)           Notwithstanding the provisions of Section 2.05, the
Global Security of a series may be transferred, in whole but not in part and in
the manner provided in Section 2.05, only to another nominee of the
Depositary for such series, or to a successor Depositary for such series
selected or approved by the Company or to a nominee of such successor
Depositary.

 

(c)           If at any time the Depositary for a series of the
Securities notifies the Company that it is unwilling or unable to continue as
Depositary for such series or if at any time the Depositary for such series
shall no longer be registered or in good standing under the Exchange Act, or
other applicable statute or regulation, and a successor Depositary for such
series is not appointed by the Company within 90 days after the Company
receives such notice or becomes aware of such condition, as the case may be,
this Section 2.11 shall no longer be applicable to the Securities of such
series and the Company will execute and, subject to Section 2.05, the
Trustee will authenticate and deliver the Securities of such series in
definitive registered form without coupons, in authorized denominations, and in
an aggregate principal amount equal to the principal amount of the Global
Security of such series in exchange for such Global Security.  In addition, the Company may at any time
determine that the Securities of any series shall no longer be represented by a
Global Security and that the provisions of this Section 2.11 shall no
longer apply to the Securities of such series. 
In such event the Company will execute and, subject to
Section 2.05, the Trustee, upon receipt of an Officers’ Certificate
evidencing such determination by the Company, will authenticate and deliver the
Securities of such series in definitive registered form without coupons, in
authorized denominations, and in an aggregate principal amount equal to the
principal amount of the Global Security of such series in exchange for such
Global Security.  Upon the exchange of
the Global Security for such Securities in definitive registered form without
coupons, in authorized denominations, the Global Security shall be canceled by
the Trustee.  Such Securities in
definitive registered form issued in exchange for the Global Security pursuant
to this Section 2.11(c) shall be registered in such names and in such
authorized denominations as the Depositary, pursuant to instructions from its
direct or indirect participants or otherwise, shall instruct the Trustee.  The Trustee shall deliver such Securities to
the Depositary for delivery to the Persons in whose names such Securities are
so registered.

 

10

 

ARTICLE III

 

REDEMPTION OF SECURITIES AND
SINKING FUND PROVISIONS

 

SECTION 3.01  Redemption.

 

The
Company may redeem the Securities of any series issued hereunder on and after
the dates and in accordance with the terms established for such series pursuant
to Section 2.01 hereof.

 

SECTION 3.02  Notice of Redemption.

 

(a)           In case the Company shall
desire to exercise such right to redeem all or, as the case may be, a portion
of the Securities of any series in accordance with the right reserved so to do,
the Company shall, or shall cause the Trustee to, give notice of such
redemption to holders of the Securities of such series to be redeemed by
mailing, first class postage prepaid, a notice of such redemption not less than
30 days and not more than 90 days before the date fixed for redemption of that
series to such holders at their last addresses as they shall appear upon the
Security Register unless a shorter period is specified in the Securities to be
redeemed.  Any notice that is mailed in
the manner herein provided shall be conclusively presumed to have been duly
given, whether or not the registered holder receives the notice.  In any case, failure duly to give such notice
to the holder of any Security of any series designated for redemption in whole
or in part, or any defect in the notice, shall not affect the validity of the
proceedings for the redemption of any other Securities of such series or any
other series.  In the case of any
redemption of Securities prior to the expiration of any restriction on such
redemption provided in the terms of such Securities or elsewhere in this
Indenture, the Company shall furnish the Trustee with an Officers’ Certificate
evidencing compliance with any such restriction.

 

Each
such notice of redemption shall specify the date fixed for redemption and the
redemption price at which Securities of that series are to be redeemed, and
shall state that payment of the redemption price of such Securities to be
redeemed will be made at a Place of Payment for that series, upon presentation
and surrender of such Securities, that interest accrued to the date fixed for
redemption will be paid as specified in said notice, that from and after said
date interest will cease to accrue and that the redemption is for a sinking
fund, if such is the case.  If less than
all the Securities of a series are to be redeemed, the notice to the holders of
Securities of that series to be redeemed in whole or in part shall specify the
particular Securities to be so redeemed. 
In case any Security is to be redeemed in part only, the notice that
relates to such Security shall state the portion of the principal amount
thereof to be redeemed, and shall state that on and after the redemption date,
upon surrender of such Security, a new Security or Securities of such series in
principal amount equal to the unredeemed portion thereof will be issued.

 

(b)           If less than all the
Securities of a series are to be redeemed, the Company shall give the Trustee
at least 45 days’ notice in advance of the date fixed for redemption as to the
aggregate principal amount of Securities of the series to be redeemed, and
thereupon the Trustee shall select, by lot or in such other manner as it shall
deem appropriate and fair in its discretion and that may provide for the
selection of a portion or portions (equal to one thousand U.S. dollars ($1,000)
or any integral multiple thereof) of the principal amount of such Securities of
a denomination larger than $1,000, the Securities to be redeemed and shall
thereafter promptly notify the Company in writing of the numbers of the
Securities to be redeemed, in whole or in part. 
The Company may, if and whenever it shall so elect, by delivery of
instructions signed on its behalf by its Chief Executive Officer or its
President or any Senior Vice President, instruct the Trustee or any paying
agent to call all or any part of the Securities of a particular series for
redemption and to give notice of redemption in the manner set forth in this
Section, such notice to be in the name of the Company or its own name as the
Trustee or such paying agent may deem advisable.  In any case in which notice of redemption is
to be given by the Trustee or any such paying agent, the Company shall deliver
or cause to be delivered to, or permit to remain with, the Trustee or such
paying agent, as the case may be, such Security Register, transfer books or
other records, or suitable copies or extracts therefrom, sufficient to enable
the Trustee or such paying agent to give any notice by mail that may be
required under the provisions of this Section.

 

11

 

SECTION 3.03  Payment Upon Redemption.

 

(a)           If the giving of notice of
redemption shall have been completed as above provided, the Securities or
portions of Securities of the series to be redeemed specified in such notice
shall become due and payable on the date and at the place stated in such notice
at the applicable redemption price, together with interest accrued to the date
fixed for redemption and interest on such Securities or portions of Securities
shall cease to accrue on and after the date fixed for redemption, unless the
Company shall default in the payment of such redemption price and accrued
interest with respect to any such Security or portion thereof.  On presentation and surrender of such
Securities on or after the date fixed for redemption at the place of payment
specified in the notice, said Securities shall be paid and redeemed at the
applicable redemption price for such series, together with interest accrued thereon
to the date fixed for redemption (but if the date fixed for redemption is an
interest payment date, the interest installment payable on such date shall be
payable to the registered holder at the close of business on the applicable
record date pursuant to Section 2.03).

 

(b)           Upon presentation of any
Security of such series that is to be redeemed in part only, the Company shall
execute and the Trustee shall authenticate and the office or agency where the
Security is presented shall deliver to the holder thereof, at the expense of
the Company, a new Security of the same series of authorized denominations in
principal amount equal to the unredeemed portion of the Security so presented.

 

SECTION 3.04  Sinking Fund.

 

The
provisions of Sections 3.04, 3.05 and 3.06 shall be applicable to any sinking
fund for the retirement of Securities of a series, except as otherwise
specified as contemplated by Section 2.01 for Securities of such series.

 

The
minimum amount of any sinking fund payment provided for by the terms of
Securities of any series is herein referred to as a “mandatory sinking fund
payment,” and any payment in excess of such minimum amount provided for by the
terms of Securities of any series is herein referred to as an “optional sinking
fund payment”.  If provided for by the
terms of Securities of any series, the cash amount of any sinking fund payment
may be subject to reduction as provided in Section 3.05.  Each sinking fund payment shall be applied to
the redemption of Securities of any series as provided for by the terms of
Securities of such series.

 

SECTION 3.05  Satisfaction of Sinking Fund Payments with
Securities.

 

The
Company (a) may deliver Outstanding Securities of a series (other than any
Securities previously called for redemption) and (b) may apply as a credit
Securities of a series that have been redeemed either at the election of the
Company pursuant to the terms of such Securities or through the application of
permitted optional sinking fund payments pursuant to the terms of such Securities,
in each case in satisfaction of all or any part of any sinking fund payment
with respect to the Securities of such series required to be made pursuant to
the terms of such Securities, provided that such Securities have not been
previously so credited.  Such Securities
shall be received and credited for such purpose by the Trustee at the
redemption price specified in such Securities for redemption through operation
of the sinking fund and the amount of such sinking fund payment shall be
reduced accordingly.

 

SECTION 3.06  Redemption of Securities for Sinking Fund.

 

Not
less than 45 days prior to each sinking fund payment date for any series of
Securities, the Company will deliver to the Trustee an Officers’ Certificate
specifying the amount of the next ensuing sinking fund payment for that series
pursuant to the terms of the series, the portion thereof, if any, that is to be
satisfied by delivering and crediting Securities of that series pursuant to
Section 3.05 and the basis for such credit and will, together with such
Officers’ Certificate, deliver to the Trustee any Securities to be so
delivered.  Not less than 30 days before
each such sinking fund payment date the Trustee shall select the Securities to
be redeemed upon such sinking fund payment date in the manner specified in
Section 3.02 and cause notice of the redemption thereof to be given in the
name of and at the expense of the Company in the manner provided in
Section 3.02.  Such notice having
been duly given, the redemption of such Securities shall be made upon the terms
and in the manner stated in Section 3.03.

 

12

 

ARTICLE IV

 

COVENANTS

 

SECTION 4.01  Payment of Principal, Premium and Interest.

 

The
Company will duly and punctually pay or cause to be paid the principal of (and
premium, if any) and interest on the Securities of that series at the time and
place and in the manner provided herein and established with respect to such
Securities.

 

SECTION 4.02  Maintenance of Office or Agency.

 

So
long as any series of the Securities remain Outstanding, the Company agrees to
maintain an office or agency in each Place of Payment with respect to each such
series and at such other location or locations as may be designated as provided
in this Section 4.02, where (a) Securities of that series may be
presented for payment, (b) Securities of that series may be presented as
herein above authorized for registration of transfer and exchange, and
(c) notices and demands to or upon the Company in respect of the Securities
of that series and this Indenture may be given or served, such designation to
continue with respect to such office or agency until the Company shall, by
written notice signed by its Chief Executive Officer or its President or a
Senior Vice President and delivered to the Trustee, designate some other office
or agency for such purposes or any of them. 
If at any time the Company shall fail to maintain any such required
office or agency or shall fail to furnish the Trustee with the address thereof,
such presentations, notices and demands may be made or served at the Corporate
Trust Office of the Trustee, and the Company hereby appoints the Trustee as its
agent to receive all such presentations, notices and demands.

 

SECTION 4.03  Paying Agents.

 

(a)           If the Company shall appoint
one or more paying agents for all or any series of the Securities, other than
the Trustee, the Company will cause each such paying agent to execute and
deliver to the Trustee an instrument in which such agent shall agree with the
Trustee, subject to the provisions of this Section:

 

(1)           that it will hold all sums
held by it as such agent for the payment of the principal of (and premium, if
any) or interest on the Securities of that series (whether such sums have been
paid to it by the Company or by any other obligor of such Securities) in trust
for the benefit of the Persons entitled thereto;

 

(2)           that it will give the
Trustee notice of any failure by the Company (or by any other obligor of such
Securities) to make any payment of the principal of (and premium, if any) or
interest on the Securities of that series when the same shall be due and
payable;

 

(3)           that it will, at any time
during the continuance of any failure referred to in the preceding paragraph
(a)(2) above, upon the written request of the Trustee, forthwith pay to
the Trustee all sums so held in trust by such paying agent; and

 

(4)           that it will perform all
other duties of paying agent as set forth in this Indenture.

 

(b)           If the Company shall act as
its own paying agent with respect to any series of the Securities, it will on
or before each due date of the principal of (and premium, if any) or interest
on Securities of that series, set aside, segregate and hold in trust for the
benefit of the Persons entitled thereto a sum sufficient to pay such principal
(and premium, if any) or interest so becoming due on Securities of that series
until such sums shall be paid to such Persons or otherwise disposed of as
herein provided and will promptly notify the Trustee of such action, or any
failure (by it or any other obligor on such Securities) to take such
action.  Whenever the Company shall have
one or more paying agents for any series of Securities, it will, prior to each
due date of the principal of (and premium, if any) or interest on any
Securities of that series, deposit with the paying agent a sum sufficient to
pay the principal (and premium, if any) or interest so becoming due, such sum
to be held in trust for the benefit of the Persons entitled 

 

13

 

to such principal, premium or interest, and (unless
such paying agent is the Trustee) the Company will promptly notify the Trustee
of this action or failure so to act.

 

(c)           Notwithstanding anything in
this Section to the contrary, (1) the agreement to hold sums in trust
as provided in this Section is subject to the provisions of
Section 11.05, and (2) the Company may at any time, for the purpose
of obtaining the satisfaction and discharge of this Indenture or for any other purpose,
pay, or direct any paying agent to pay, to the Trustee all sums held in trust
by the Company or such paying agent, such sums to be held by the Trustee upon
the same terms and conditions as those upon which such sums were held by the
Company or such paying agent; and, upon such payment by any paying agent to the
Trustee, such paying agent shall be released from all further liability with
respect to such money.

 

SECTION 4.04  Appointment to Fill Vacancy in Office of
Trustee.

 

The
Company, whenever necessary to avoid or fill a vacancy in the office of
Trustee, will appoint, in the manner provided in Section 7.10, a Trustee,
so that there shall at all times be a Trustee hereunder.

 

ARTICLE V

 

SECURITYHOLDERS’ LISTS AND
REPORTS BY THE COMPANY AND THE TRUSTEE

 

SECTION 5.01  Company to Furnish Trustee Names and
Addresses of Securityholders.

 

The
Company will furnish or cause to be furnished to the Trustee (a) on each
regular record date (as defined in Section 2.03) a list, in such form as
the Trustee may reasonably require, of the names and addresses of the holders
of each series of Securities as of such regular record date, provided that the
Company shall not be obligated to furnish or cause to be furnished such list at
any time that the list shall not differ in any respect from the most recent
list furnished to the Trustee by the Company and (b) at such other times
as the Trustee may request in writing within 30 days after the receipt by the
Company of any such request, a list of similar form and content as of a date
not more than 15 days prior to the time such list is furnished; provided,
however, that, in either case, no such list need be furnished for any series
for which the Trustee shall be the Security Registrar.

 

SECTION 5.02  Preservation Of Information; Communications
With Securityholders.

 

(a)           The Trustee shall preserve,
in as current a form as is reasonably practicable, all information as to the
names and addresses of the holders of Securities contained in the most recent
list furnished to it as provided in Section 5.01 and as to the names and
addresses of holders of Securities received by the Trustee in its capacity as
Security Registrar (if acting in such capacity).

 

(b)           The Trustee may destroy any
list furnished to it as provided in Section 5.01 upon receipt of a new
list so furnished.

 

(c)           Securityholders may
communicate as provided in Section 312(b) of the Trust Indenture Act
with other Securityholders with respect to their rights under this Indenture or
under the Securities.  The Company, the
Trustee, the Security Registrar and any other Person shall have the protection
of the Trust Indenture Act Section 312(c).

 

SECTION 5.03  Reports by the Company.

 

(a)           The Company covenants and
agrees to file with the Trustee, within 15 days after the Company is required
to file the same with the Commission, copies of the annual reports and of the
information, documents and other reports (or copies of such portions of any of
the foregoing as the Commission may from time to time by rules and
regulations prescribe) that the Company may be required to file with the
Commission pursuant to Section 13 or Section 15(d) of the
Exchange Act; or, if the Company is not required to file information, documents
or reports pursuant to either of such sections, then to file with the Trustee
and the Commission, in accordance with 

 

14

 

the rules and regulations prescribed from time
to time by the Commission, such of the supplementary and periodic information,
documents and reports that may be required pursuant to Section 13 of the
Exchange Act, in respect of a security listed and registered on a national
securities exchange as may be prescribed from time to time in such
rules and regulations.

 

(b)           The Company covenants and
agrees to file with the Trustee and the Commission, in accordance with the
rules and regulations prescribed from to time by the Commission, such
additional information, documents and reports with respect to compliance by the
Company with the conditions and covenants provided for in this Indenture as may
be required from time to time by such rules and regulations.

 

(c)           The Company covenants and
agrees to transmit by mail, first class postage prepaid, or reputable overnight
delivery service that provides for evidence of receipt, to the Securityholders,
as their names and addresses appear upon the Security Register, within 30 days
after the filing thereof with the Trustee, such summaries of any information,
documents and reports required to be filed by the Company pursuant to subsections
(a) and (b) of this Section as may be required by rules and
regulations prescribed from time to time by the Commission.

 

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

 

SECTION 5.04  Reports by the Trustee.

 

(a)           On or before May 15 in
each year in which any of the Securities are Outstanding, the Trustee shall
transmit by mail, first class postage prepaid, to the Securityholders, as their
names and addresses appear upon the Security Register, a brief report dated as
of the preceding February 15, if and to the extent required under
Section 313(a) of the Trust Indenture Act.

 

(b)           The Trustee shall comply
with Sections 313(b), 313(c) and 313(d) of the Trust Indenture Act.

 

(c)           A copy of each such report
shall, at the time of such transmission to Securityholders, be filed by the
Trustee with the Company, with each stock exchange upon which any Securities
are listed (if so listed) and also with the Commission.  The Company agrees to notify the Trustee when
any Securities become listed on any stock exchange.

 

(d)           If an Event of Default
occurs and is continuing and the Trustee receives actual notice of such Event
of Default, the Trustee shall mail to each Securityholder notice of the uncured
Event of Default within 90 days after the occurrence thereof.  Except in the case of an Event of Default in
payment of principal of, or interest on, any Securities, or in the payment of
any sinking or purchase fund installment, the Trustee may withhold the notice
if and so long as the board of directors, the executive committee or a trust
committee of directors and/or Responsible Officers of the Trustee in good faith
determine that the withholding of such notice is in the interests of the
Securityholders.

 

ARTICLE VI

 

REMEDIES OF THE TRUSTEE AND
SECURITYHOLDERS ON EVENT OF DEFAULT

 

SECTION 6.01  Events of Default.

 

(a)           Whenever used herein with
respect to Securities of a particular series, “Event of Default” means any one
of the events specified as “Events of Default” for such series as provided in
Section 2.01, if such event has occurred and is continuing.

 

15

 

(b)           If so specified with respect
to Securities of a particular series as provided in Section 2.01, upon the
occurrence of an Event of Default with respect to Securities of that series,
unless the principal of all the Securities of that series shall have already
become due and payable, either the Trustee or the holders of not less than a
majority in aggregate principal amount of the Securities of that series then
outstanding hereunder, by notice in writing to the Company (and to the Trustee
if given by such Securityholders), may declare the principal of all the
Securities of that series to be due and payable immediately, and upon any such
declaration the same shall become and shall be immediately due and payable.

 

(c)           If so specified with respect
to Securities of a particular series as provided in Section 2.01, at any
time after the principal of the Securities of that series shall have been so
declared due and payable, and before any judgment or decree for the payment of
the moneys due shall have been obtained or entered as hereinafter provided, the
holders of a majority in aggregate principal amount of the Securities of that
series then Outstanding hereunder, by written notice to the Company and the
Trustee, may rescind and annul such declaration and its consequences if:  (1) the Company has paid or deposited
with the Trustee a sum sufficient to pay all matured installments of interest
upon all the Securities of that series and the principal of (and premium, if
any, on) all Securities of that series that shall have become due otherwise
than by acceleration (with interest upon such principal and premium, if any,
and, to the extent that such payment is enforceable under applicable law, upon
overdue installments of interest, at the rate per annum expressed in the
Securities of that series to the date of such payment or deposit) and any
amount payable to the Trustee under Section 7.06, and (2) any and all
other Events of Default under the Indenture with respect to such series, other
than the nonpayment of principal on Securities of that series that shall not
have become due by their terms, shall have been remedied or waived as provided
in Section 6.06.

 

No
such rescission and annulment shall extend to or shall affect any subsequent
default or impair any right consequent thereon.

 

(d)           In case the Trustee shall
have proceeded to enforce any right with respect to Securities of that series
under this Indenture and such proceedings shall have been discontinued or
abandoned because of such rescission or annulment or for any other reason or
shall have been determined adversely to the Trustee, then and in every such
case, subject to any determination in such proceedings, the Company and the
Trustee shall be restored respectively to their former positions and rights
hereunder, and all rights, remedies and powers of the Company and the Trustee
shall continue as though no such proceedings had been taken.

 

SECTION 6.02  Suits for Enforcement by Trustee.

 

(a)           If so specified as provided
in Section 2.01 with respect to a category of Event of Default for Securities
of a particular series, if such an Event of Default occurs and is continuing,
the Trustee, in its own name and as trustee of an express trust, shall be
entitled and empowered to institute any action or proceedings at law or in
equity for the collection of the sums so due and unpaid, and may prosecute any
such action or proceeding to judgment or final decree, and may enforce any such
judgment or final decree against the Company or other obligor upon the
Securities of that series and collect the moneys adjudged or decreed to be
payable in the manner provided by law out of the property of the Company or
other obligor upon the Securities of that series, wherever situated.

 

(b)           If so specified with respect
to Securities of a particular series as provided in Section 2.01, in case
of any receivership, insolvency, liquidation, bankruptcy, reorganization,
readjustment, arrangement, composition or judicial proceedings affecting the
Company, or its creditors or property, the Trustee shall have power to intervene
in such proceedings and take any action therein that may be permitted by the
court and shall (except as may be otherwise provided by law) be entitled to
file such proofs of claim and other papers and documents as may be necessary or
advisable in order to have the claims of the Trustee and of the holders of
Securities of a series allowed for the entire amount due and payable by the
Company under this Indenture at the date of institution of such proceedings and
for any additional amount that may become due and payable by the Company after
such date, and to collect and receive any moneys or other property payable or
deliverable on any such claim, and to distribute the same after the deduction
of the amount payable to the Trustee under Section 7.06; and any receiver,
assignee or trustee in bankruptcy or reorganization is hereby authorized by
each of the holders of Securities of such series to make such payments to the
Trustee, and, in the event that the Trustee shall consent to the making of such
payments directly to such Securityholders, to pay to the Trustee any amount due
it under Section 7.06.

 

16

 

(c)           All rights of action and of
asserting claims under this Indenture, or under any of the terms established
with respect to Securities of a series, may be enforced by the Trustee without
the possession of any of such Securities, or the production thereof at any
trial or other proceeding relative thereto, and any such suit or proceeding
instituted by the Trustee shall be brought in its own name as trustee of an
express trust, and any recovery of judgment shall, after provision for payment
to the Trustee of any amounts due under Section 7.06, be for the ratable
benefit of the holders of the Securities of such series.

 

(d)           If so specified with respect
to Securities of a particular series as provided in Section 2.01, upon the
occurrence of an Event of Default with respect to Securities of that series,
the Trustee may in its discretion proceed to protect and enforce the rights
vested in it by this Indenture by such appropriate judicial proceedings as the
Trustee shall deem most effectual to protect and enforce any of such rights,
either at law or in equity or in bankruptcy or otherwise, whether for the
specific enforcement of any covenant or agreement contained in this Indenture
or in aid of the exercise of any power granted in this Indenture, or to enforce
any other legal or equitable right vested in the Trustee by this Indenture or
by law.

 

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

 

SECTION 6.03  Application of Moneys Collected.

 

Any
moneys collected by the Trustee pursuant to this Article with respect to a
particular series of Securities shall be applied in the following order, at the
date or dates fixed by the Trustee and, in case of the distribution of such
moneys on account of principal (or premium, if any) or interest, upon
presentation of the Securities of that series, and notation thereon the
payment, if only partially paid, and upon surrender thereof if fully paid:

 

FIRST:                    To the payment of costs and
expenses of collection and of all amounts payable to the Trustee under
Section 7.06;

 

SECOND:               To the payment of all Senior Indebtedness of
the Company if and to the extent required by Article Fourteen; and

 

THIRD:                  To the payment of the amounts then due and
unpaid upon Securities of such series for principal (and premium, if any) and
interest, in respect of which or for the benefit of which such money has been
collected, ratably, without preference or priority of any kind, according to
the amounts due and payable on such Securities for principal (and premium, if
any) and interest, respectively.

 

SECTION 6.04  Limitation on Suits.

 

No
holder of any Security of any series shall have any right by virtue or by
availing of any provision of this Indenture to institute any suit, action or
proceeding in equity or at law upon or under or with respect to this Indenture
or for the appointment of a receiver or trustee, or for any other remedy
hereunder, unless (a) such holder previously shall have given to the
Trustee written notice of an Event of Default and of the continuance thereof
with respect to the Securities of such series specifying such Event of Default,
as hereinbefore provided; (b) the holders of not less than a majority in
aggregate principal amount of the Securities of such series then Outstanding
shall have made written request upon the Trustee to institute such action, suit
or proceeding in its own name as trustee hereunder; (c) such holder or
holders shall have offered to the Trustee such reasonable indemnity as it may
require against the costs, expenses and liabilities to be incurred therein or
thereby; (d) the Trustee for 60 days after its receipt of such notice,
request and offer of indemnity, shall have failed to institute any such action,
suit or proceeding; and (e) during such 60-day period, the holders of a
majority in principal amount of the Securities of that series shall not have
given the Trustee a direction inconsistent with the request.

 

17

 

Notwithstanding
anything contained herein to the contrary, the right of any holder of any
Security to receive payment of the principal of (and premium, if any) and
interest on such Security, as therein provided, on or after the respective due
dates expressed in such Security (or in the case of redemption, on the
redemption date), or to institute suit for the enforcement of any such payment
on or after such respective dates or redemption date, shall not be impaired or
affected without the consent of such holder. 
By accepting a Security hereunder it is expressly understood, intended
and covenanted by the taker and holder of every Security of such series with
every other such taker and holder and the Trustee, that no one or more holders
of Securities of such series shall have any right in any manner whatsoever by
virtue or by availing of any provision of this Indenture to affect, disturb or prejudice
the rights of the holders of any other of such Securities, or to obtain or seek
to obtain priority over or preference to any other such holder, or to enforce
any right under this Indenture, except in the manner herein provided and for
the equal, ratable and common benefit of all holders of Securities of such
series.  For the protection and
enforcement of the provisions of this Section, each and every Securityholder
and the Trustee shall be entitled to such relief as can be given either at law
or in equity.

 

SECTION 6.05  Rights and Remedies Cumulative; Delay or
Omission Not Waiver.

 

(a)           All powers and remedies
given by this Article to the Trustee or to the Securityholders shall, to
the extent permitted by law, be deemed cumulative and not exclusive of any
other powers and remedies available to the Trustee or the holders of the
Securities, by judicial proceedings or otherwise, to enforce the performance or
observance of the covenants and agreements contained in this Indenture or
otherwise established with respect to such Securities.

 

(b)           No delay or omission of the
Trustee or of any holder of any of the Securities to exercise any right or
power accruing upon any Event of Default occurring and continuing as aforesaid
shall impair any such right or power, or shall be construed to be a waiver of
any such default or on acquiescence therein; and, subject to the provisions of
Section 6.04, every power and remedy given by this Article or by law
to the Trustee or the Securityholders may be exercised from time to time, and
as often as shall be deemed expedient, by the Trustee or by the
Securityholders.

 

SECTION 6.06  Control by Securityholders.

 

The
holders of a majority in aggregate principal amount of the Securities of any
series at the time Outstanding, determined in accordance with
Section 8.01, shall have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred on the Trustee with respect to such
series; provided, however, that such direction shall not be in conflict with
any rule of law or with this Indenture or be unduly prejudicial to the
rights of holders of Securities of any other series at the time Outstanding
determined in accordance with Section 8.01.  Subject to the provisions of
Section 7.01, the Trustee shall have the right to decline to follow any
such direction if the Trustee in good faith shall, by a Responsible Officer or
Officers of the Trustee, determine that the proceeding so directed would involve
the Trustee in personal liability.  The
holders of a majority in aggregate principal amount of the Securities of any
series at the time Outstanding affected thereby, determined in accordance with
Section 8.01, may on behalf of the holders of all of the Securities of
such series waive any past default in the performance of any of the covenants
contained herein or established pursuant to Section 2.01 with respect to
such series and its consequences, except an uncured default in the payment of
the principal of (or premium, if any) or interest on, any of the Securities of
that series as and when the same shall become due by the terms of such
Securities otherwise than by acceleration (unless such default has been cured
and a sum sufficient to pay all matured installments of interest and principal
and any premium has been deposited with the Trustee (in accordance with
Section 6.01(c)).  Upon any such
waiver, the default covered thereby shall be deemed to be cured for all
purposes of this Indenture and the Company, the Trustee and the holders of the
Securities of such series shall be restored to their former positions and
rights hereunder, respectively; but no such waiver shall extend to any
subsequent or other default or impair any right consequent thereon.

 

SECTION 6.07  Undertaking to Pay Costs.

 

All
parties to this Indenture agree, and each holder of any Securities by such
holder’s acceptance thereof shall be deemed to have agreed, that any court may
in its discretion require, in any suit for the enforcement of any 

 

18

 

right
or remedy under this Indenture, or in any suit against the Trustee for any
action taken or omitted by it as Trustee, the filing by any party litigant in
such suit of an undertaking to pay the costs of such suit, and that such court
may in its discretion assess reasonable costs, including reasonable attorneys’
fees, against any party litigant in such suit, having due regard to the merits
and good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Securityholder, or group of
Securityholders, holding more than 10% in aggregate principal amount of the
Outstanding Securities of any series, or to any suit instituted by any
Securityholder for the enforcement of the payment of the principal of (or
premium, if any) or interest on any Security of such series, on or after the
respective due dates expressed in such Security or established pursuant to this
Indenture.

 

ARTICLE VII

 

CONCERNING THE TRUSTEE

 

SECTION 7.01  Certain Duties and Responsibilities of
Trustee.

 

(a)           The Trustee, prior to the
occurrence of an Event of Default with respect to the Securities of a series
and after the curing of all Events of Default with respect to the Securities of
that series that may have occurred, shall undertake to perform with respect to
the Securities of such series such duties and only such duties as are
specifically set forth in this Indenture, and no implied covenants shall be
read into this Indenture against the Trustee. 
In case an Event of Default with respect to the Securities of a series
has occurred (that has not been cured or waived), the Trustee shall exercise
with respect to Securities of that series such of the rights and powers vested
in it by this Indenture, and use the same degree of care and skill in their
exercise, as a prudent person would exercise or use under the circumstances in
the conduct of his own affairs.

 

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

 

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

 

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

 

(ii)           in the absence of bad faith
on the part of the Trustee, the Trustee may with respect to the Securities of
such series conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon any 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 that by any
provision hereof are specifically required to be furnished to the Trustee, the
Trustee shall be under a duty to examine the same to determine whether or not
they conform to the requirements of this Indenture;

 

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

 

(3)           the Trustee shall not be
liable with respect to any action taken or omitted to be taken by it in good
faith in accordance with the direction of the holders of not less than a
majority in principal amount of the Securities of any series at the time
Outstanding relating to the time, method and place of conducting any proceeding
for any remedy available to the Trustee, or exercising any trust or power
conferred upon the Trustee under this Indenture with respect to the Securities
of that series; and

 

19

 

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

 

SECTION 7.02  Certain Rights of Trustee.

 

Except
as otherwise provided in Section 7.01:

 

(a)           The Trustee may rely and
shall be protected in acting or refraining from acting upon any resolution,
certificate, statement, instrument, opinion, report, notice, request, consent,
order, approval, bond, security or other paper or document believed by it to be
genuine and to have been signed or presented by the proper party or parties;

 

(b)           Any request, direction,
order or demand of the Company mentioned herein shall be sufficiently evidenced
by a Board Resolution or an instrument signed in the name of the Company, by
the Chief Executive Officer or the President or any Senior Vice President and
by the Secretary or an Assistant Secretary or the Treasurer or an Assistant
Treasurer thereof (unless other evidence in respect thereof is specifically
prescribed herein);

 

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

 

(d)           The Trustee shall be under
no obligation to exercise any of the rights or powers vested in it by this
Indenture at the request, order or direction of any of the Securityholders,
pursuant to the provisions of this Indenture, unless such Securityholders shall
have offered to the Trustee reasonable security or indemnity against the costs,
expenses and liabilities that may be incurred therein or thereby; nothing
contained herein shall, however, relieve the Trustee of the obligation, upon
the occurrence of an Event of Default with respect to a series of the
Securities (that has not been cured or waived) to exercise with respect to
Securities of that series such of the rights and powers vested in it by this
Indenture, and to use the same degree of care and skill in their exercise, as a
prudent person would exercise or use under the circumstances in the conduct of
his own affairs;

 

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

 

(f)            The Trustee shall not be
bound to make any investigation into the facts or matters stated in any
resolution, certificate, statement, instrument, opinion, report, notice,
request, consent, order, approval, bond, security or other papers or documents,
unless requested in writing so to do by the holders of not less than a majority
in principal amount of the Outstanding Securities of the particular series
affected thereby (determined as provided in Section 8.04); provided,
however, that if the payment within a reasonable time to the Trustee of the
costs, expenses or liabilities likely to be incurred by it in the making of such
investigation is, in the opinion of the Trustee, not reasonably assured to the
Trustee by the security afforded to it by the terms of this Indenture, the
Trustee may require reasonable indemnity against such costs, expenses or
liabilities as a condition to so proceeding. 
The reasonable expense of every such examination shall be paid by the
Company or, if paid by the Trustee, shall be repaid by the Company upon demand;
and

 

(g)           The Trustee may execute any
of the trusts or powers hereunder or perform any duties hereunder either
directly or by or through agents or attorneys 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.

 

20

 

SECTION 7.03  Trustee Not Responsible for Recitals or
Issuance or Securities.

 

(a)           The recitals contained herein and in the Securities shall
be taken as the statements of the Company, and the Trustee assumes no
responsibility for the correctness of the same.

 

(b)           The Trustee makes no representations as to the validity or
sufficiency of this Indenture or of the Securities.

 

(c)           The Trustee shall not be accountable for the use or
application by the Company of any of the Securities or of the proceeds of such Securities,
or for the use or application of any moneys paid over by the Trustee in
accordance with any provision of this Indenture or established pursuant to
Section 2.01, or for the use or application of any moneys received by any
paying agent other than the Trustee.

 

SECTION 7.04  May Hold Securities.

 

The
Trustee or any paying agent or Security Registrar, in its individual or any
other capacity, may become the owner or pledgee of Securities with the same
rights it would have if it were not Trustee, paying agent or Security
Registrar.

 

SECTION 7.05  Moneys Held in Trust.

 

Subject
to the provisions of Section 11.05, all moneys received by the Trustee
shall, until used or applied as herein provided, be held in trust for the
purposes for which they were received, but need not be segregated from other
funds except to the extent required by law. 
The Trustee shall be under no liability for interest on any moneys
received by it hereunder except such as it may agree with the Company to pay
thereon.

 

SECTION 7.06  Compensation and Reimbursement.

 

(a)           The Company covenants and agrees to pay to the Trustee,
and the Trustee shall be entitled to, such reasonable compensation (which shall
not be limited by any provision of law in regard to the compensation of a
trustee of an express trust), as the Company and the Trustee may from time to
time agree in writing, for all services rendered by it in the execution of the
trusts hereby created and in the exercise and performance of any of the powers
and duties hereunder of the Trustee, and, except as otherwise expressly
provided herein, the Company will pay or reimburse the Trustee upon its request
for all reasonable expenses, disbursements and advances incurred or made by the
Trustee in accordance with any of the provisions of this Indenture (including
the reasonable compensation and the expenses and disbursements of its counsel
and of all Persons not regularly in its employ) except any such expense,
disbursement or advance as may arise from its negligence or bad faith.  The Company also covenants to indemnify the
Trustee (and its officers, agents, directors and employees) for, and to hold it
harmless against, any loss, liability or expense incurred without negligence or
bad faith on the part of the Trustee and 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 of liability.

 

(b)           The obligations of the Company under this Section to
compensate and indemnify the Trustee and to pay or reimburse the Trustee for
expenses, disbursements and advances shall constitute additional indebtedness
hereunder.  Such additional indebtedness
shall be secured by a lien prior to that of the Securities upon all property
and funds held or collected by the Trustee as such, except funds held in trust
for the benefit of the holders of particular Securities.

 

SECTION 7.07  Reliance on Officers’ Certificate.

 

Except
as otherwise provided in Section 7.01, whenever in the administration of
the provisions of this Indenture the Trustee shall deem it necessary or
desirable that a matter be proved or established prior to taking or suffering
or omitting to take any action hereunder, such matter (unless other evidence in
respect thereof be herein specifically prescribed) may, in the absence of
negligence or bad faith on the part of the Trustee, be deemed to be 

 

21

 

conclusively
proved and established by an Officers’ Certificate delivered to the Trustee and
such certificate, in the absence of negligence or bad faith on the part of the
Trustee, shall be full warrant to the Trustee for any action taken, suffered or
omitted to be taken by it under the provisions of this Indenture upon the faith
thereof.

 

SECTION 7.08  Disqualification; Conflicting Interests.

 

If
the Trustee has or shall acquire any “conflicting interest” within the meaning
of Section 310(b) of the Trust Indenture Act, the Trustee and the
Company shall in all respects comply with the provisions of Section 310(b) of
the Trust Indenture Act.

 

SECTION 7.09  Corporate Trustee Required; Eligibility.

 

There
shall at all times be a Trustee with respect to the Securities issued hereunder
which shall at all times be a corporation organized and doing business under
the laws of the United States of America or any State or Territory thereof or
of the District of Columbia, or a corporation or other Person permitted to act
as trustee by the Commission, authorized under such laws to exercise corporate
trust powers, having a combined capital and surplus of at least 50 million U.S.
dollars ($50,000,000), and subject to supervision or examination by Federal,
State, Territorial or District of Columbia authority.  If such corporation publishes reports of
condition at least annually, pursuant to law or to the requirements of the
aforesaid supervising or examining authority, then for the purposes of this
Section, the combined capital and surplus of such corporation shall be deemed
to be its combined capital and surplus as set forth in its most recent report
of condition so published.  The Company
may not, nor may any Person directly or indirectly controlling, controlled by
or under common control with the Company, serve as Trustee.  In case at any time the Trustee shall cease
to be eligible in accordance with the provisions of this Section, the Trustee
shall resign immediately in the manner and with the effect specified in
Section 7.10.

 

SECTION 7.10  Resignation and Removal; Appointment of
Successor.

 

(a)           The Trustee or any successor hereafter appointed, may at
any time resign with respect to the Securities of one or more series by giving
written notice thereof to the Company and by transmitting notice of resignation
by mail, first class postage prepaid, to the Securityholders of such series, as
their names and addresses appear upon the Security Register.  Upon receiving such notice of resignation,
the Company shall promptly appoint a successor trustee with respect to
Securities of such series by written instrument, in duplicate, executed by
order of the Board of Directors, one copy of which instrument shall be
delivered to the resigning Trustee and one copy to the successor trustee.  If no successor trustee shall have been so
appointed and have accepted appointment within 30 days after the mailing of
such notice of resignation, the resigning Trustee may petition any court of
competent jurisdiction for the appointment of a successor trustee with respect
to Securities of such series, or any Securityholder of that series who has been
a bona fide holder of a Security or Securities for at least six months may on
behalf of himself and all others similarly situated, petition any such court
for the appointment of a successor trustee. 
Such court may thereupon after such notice, if any, as it may deem
proper and prescribe, appoint a successor trustee.

 

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

 

(1)           the Trustee shall fail to comply with the provisions of
Section 7.08 after written request therefor by the Company or by any Securityholder
who has been a bona fide holder of a Security or Securities for at least six
months; or

 

(2)           the Trustee shall cease to be eligible in accordance with
the provisions of Section 7.09 and shall fail to resign after written
request therefor by the Company or by any such Securityholder; or

 

(3)           the Trustee shall become incapable of acting, or shall be
adjudged a bankrupt or insolvent, or commence a voluntary bankruptcy
proceeding, or a receiver of the Trustee or of its property shall be appointed
or consented to, or any public officer shall take charge or control of the
Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation, then, in any such case, the Company may remove the
Trustee with respect to all Securities and appoint a successor trustee by
written instrument, in duplicate, 

 

22

 

executed by order of the Board of Directors, one
copy of which instrument shall be delivered to the Trustee so removed and one
copy to the successor trustee, or, unless the Trustee’s duty to resign is
stayed as provided herein, any Securityholder who has been a bona fide holder
of a Security or Securities for at least six months may, on behalf of that
holder and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor
trustee.  Such court may thereupon after
such notice, if any, as it may deem proper and prescribe, remove the Trustee
and appoint a successor trustee.

 

(c)           The holders of a majority in aggregate principal amount of
the Securities of any series at the time Outstanding may at any time remove the
Trustee with respect to such series by so notifying the Trustee and the Company
and may appoint a successor Trustee for such series with the consent of the
Company.

 

(d)           Any resignation or removal of the Trustee and appointment
of a successor trustee with respect to the Securities of a series pursuant to
any of the provisions of this Section shall become effective upon
acceptance of appointment by the successor trustee as provided in
Section 7.11.

 

(e)           Any successor trustee appointed pursuant to this
Section may be appointed with respect to the Securities of one or more
series or all of such series, and at any time there shall be only one Trustee
with respect to the Securities of any particular series.

 

SECTION 7.11  Acceptance of Appointment By Successor.

 

(a)           In case of the appointment hereunder of a successor
trustee with respect to all Securities, every such successor trustee so
appointed shall execute, acknowledge and deliver to the Company and to the
retiring Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee shall become effective and such
successor trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, trusts and duties of the retiring Trustee;
but, on the request of the Company or the successor trustee, such retiring
Trustee shall, upon payment of its charges, execute and deliver an instrument
transferring to such successor trustee all the rights, powers and trusts of the
retiring Trustee and shall duly assign, transfer and deliver to such successor
trustee all property and money held by such retiring Trustee hereunder.

 

(b)           In case of the appointment hereunder of a successor
trustee with respect to the Securities of one or more (but not all) series, the
Company, the retiring Trustee and each successor trustee with respect to the Securities
of one or more series shall execute and deliver an indenture supplemental
hereto wherein each successor trustee shall accept such appointment and which
(1) shall contain such provisions as shall be necessary or desirable to
transfer and confirm to, and to vest in, each successor trustee all the rights,
powers, trusts and duties of the retiring Trustee with respect to the
Securities of that or those series to which the appointment of such successor
trustee relates, (2) shall contain such provisions as shall be deemed
necessary or desirable to confirm that all the rights, powers, trusts and
duties of the retiring Trustee with respect to the Securities of that or those
series as to which the retiring Trustee is not retiring shall continue to be
vested in the retiring Trustee, and (3) shall add to or change any of the
provisions of this Indenture as shall be necessary to provide for or facilitate
the administration of the trusts hereunder by more than one Trustee, it being
understood that nothing herein or in such supplemental indenture shall
constitute such Trustees co-trustees of the same trust, that each such Trustee
shall be trustee of a trust or trusts hereunder separate and apart from any
trust or trusts hereunder administered by any other such Trustee and that no
Trustee shall be responsible for any act or failure to act on the part of any
other Trustee hereunder; and upon the execution and delivery of such
supplemental indenture the resignation or removal of the retiring Trustee shall
become effective to the extent provided therein, such retiring Trustee shall
with respect to the Securities of that or those series to which the appointment
of such successor trustee relates have no further responsibility for the
exercise of rights and powers or for the performance of the duties and
obligations vested in the Trustee under this Indenture, and each such successor
trustee, without any further act, deed or conveyance, shall become vested with
all the rights, powers, trusts and duties of the retiring Trustee with respect
to the Securities of that or those series to which the appointment of such
successor trustee relates; but, on request of the Company or any successor
trustee, such retiring Trustee shall duly assign, transfer and deliver to such
successor trustee, to the extent contemplated by such supplemental indenture,
the property and money held by such retiring Trustee hereunder with respect to
the Securities of that or those series to which the appointment of such
successor trustee relates.

 

23

 

(c)           Upon request of any such successor trustee, the Company
shall execute any and all instruments for more fully and certainly vesting in
and confirming to such successor trustee all such rights, powers and trusts referred
to in paragraph (a) or (b) of this Section, as the case may be.

 

(d)           No successor trustee shall accept its appointment unless
at the time of such acceptance such successor trustee shall be qualified and
eligible under this Article.

 

(e)           Upon acceptance of appointment by a successor trustee as
provided in this Section, the Company shall transmit notice of the succession
of such trustee hereunder by mail, first class postage prepaid, to the
Securityholders, as their names and addresses appear upon the Security
Register.  If the Company fails to
transmit such notice within ten days after acceptance of appointment by the
successor trustee, the successor trustee shall cause such notice to be
transmitted at the expense of the Company.

 

SECTION 7.12  Merger, Conversion, Consolidation or
Succession to Business.

 

Any
corporation into which the Trustee may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion
or consolidation to which the Trustee shall be a party, or any corporation
succeeding to the corporate trust business of the Trustee, shall be the
successor of the Trustee hereunder, provided that such corporation shall be
qualified under the provisions of Section 7.08 and eligible under the provisions
of Section 7.09, without the execution or filing of any paper or any
further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding.  In case any
Securities shall have been authenticated, but not delivered, by the Trustee
then in office, any successor by merger, conversion or consolidation to such
authenticating Trustee may adopt such authentication and deliver the Securities
so authenticated with the same effect as if such successor Trustee had itself
authenticated such Securities.

 

SECTION 7.13  Preferential Collection of Claims Against the
Company.

 

The
Trustee shall comply with Section 311(a) of the Trust Indenture Act,
excluding any creditor relationship described in Section 311(b) of
the Trust Indenture Act.  A Trustee who
has resigned or been removed shall be subject to Section 311(a) of
the Trust Indenture Act to the extent included therein.

 

ARTICLE VIII

 

CONCERNING THE
SECURITYHOLDERS

 

SECTION 8.01  Evidence of Action by Securityholders.

 

Whenever
in this Indenture it is provided that the holders of a majority or specified
percentage in aggregate principal amount of the Securities of a particular
series may take any action (including the making of any demand or request, the
giving of any notice, consent or waiver or the taking of any other action), the
fact that at the time of taking any such action the holders of such majority or
specified percentage of that series have joined therein may be evidenced by any
instrument or any number of instruments of similar tenor executed by such
holders of Securities of that series in Person or by agent or proxy appointed
in writing.

 

If
the Company shall solicit from the Securityholders of any series any request,
demand, authorization, direction, notice, consent, waiver or other action, the
Company may, at its option, as evidenced by an Officers’ Certificate, fix in
advance a record date for such series for the determination of Securityholders
entitled to give such request, demand, authorization, direction, notice, consent,
waiver or other action, 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 action may
be given before or after the record date, but only the Securityholders of
record at the close of business on the record date shall be deemed to be
Securityholders for the purposes of determining whether Securityholders of the
requisite proportion of Outstanding Securities of that series have authorized or
agreed or consented to such request, demand, authorization, direction, notice,
consent, waiver or other action, and for that purpose the Outstanding
Securities of that series shall be computed as of the record date; provided,
however, that no 

 

24

 

such
authorization, agreement or consent by such Securityholders on the 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.

 

SECTION 8.02  Proof of Execution by Securityholders.

 

Subject
to the provisions of Section 7.01, proof of the execution of any
instrument by a Securityholder (such proof will not require notarization) or
his agent or proxy and proof of the holding by any Person of any of the
Securities shall be sufficient if made in the following manner:

 

(a)           The fact and date of the execution by any such Person of
any instrument may be proved in any reasonable manner acceptable to the
Trustee.

 

(b)           The ownership of Securities shall be proved by the
Security Register of such Securities or by a certificate of the Security
Registrar thereof.

 

(c)           The Trustee may require such additional proof of any
matter referred to in this Section as it shall deem necessary.

 

SECTION 8.03  Who May be Deemed Owners.

 

Prior
to the due presentment for registration of transfer of any Security, the
Company, the Trustee, any paying agent and any Security Registrar may deem and
treat the Person in whose name such Security shall be registered upon the books
of the Company as the absolute owner of such Security (whether or not such
Security shall be overdue and notwithstanding any notice of ownership or
writing thereon made by anyone other than the Security Registrar) for the purpose
of receiving payment of or on account of the principal of (and premium, if any)
and (subject to Section 2.03) interest on such Security and for all other
purposes; and neither the Company nor the Trustee nor any paying agent nor any
Security Registrar shall be affected by any notice to the contrary.

 

SECTION 8.04  Certain Securities Owned by Company
Disregarded.

 

In
determining whether the holders of the requisite aggregate principal amount of
Securities of a particular series have concurred in any direction, consent or
waiver under this Indenture, the Securities of that series that are owned by
the Company or any other obligor on the Securities of that series or by any
Person directly or indirectly controlling or controlled by or under common
control with the Company or any other obligor on the Securities of that series
shall be disregarded and deemed not to be Outstanding for the purpose of any
such determination, except that for the purpose of determining whether the
Trustee shall be protected in relying on any such direction, consent or waiver,
only Securities of such series that the Trustee actually knows are so owned
shall be so disregarded.  The Securities
so owned that have been pledged in good faith may be regarded as Outstanding
for the purposes of this Section, if the pledgee shall establish to the
satisfaction of the Trustee the pledgee’s right so to act with respect to such
Securities and that the pledgee is not a Person directly or indirectly
controlling or controlled by or under direct or indirect common control with
the Company or any such other obligor. 
In case of a dispute as to such right, any decision by the Trustee taken
upon the advice of counsel shall be full protection to the Trustee.

 

SECTION 8.05  Actions Binding on Future Securityholders.

 

At
any time prior to (but not after) the evidencing to the Trustee, as provided in
Section 8.01, of the taking of any action by the holders of the majority
or percentage in aggregate principal amount of the Securities of a particular
series specified in this Indenture in connection with such action, any holder
of a Security of that series that is shown by the evidence to be included in
the Securities the holders of which have consented to such action may, by
filing written notice with the Trustee, and upon proof of holding as provided
in Section 8.02, revoke such action so far as concerns such Security.  Except as aforesaid any such action taken by
the holder of any Security shall be conclusive and binding upon such holder and
upon all future holders and owners of such Security, and of any Security issued
in exchange therefor, on registration of transfer thereof or in place thereof,
irrespective of whether or 

 

25

 

not
any notation in regard thereto is made upon such Security.  Any action taken by the holders of the
majority or percentage in aggregate principal amount of the Securities of a
particular series specified in this Indenture in connection with such action
shall be conclusively binding upon the Company, the Trustee and the holders of
all the Securities of that series.

 

ARTICLE IX

 

SUPPLEMENTAL INDENTURES

 

SECTION 9.01  Supplemental Indentures Without the Consent
of Securityholders.

 

In
addition to any supplemental indenture otherwise authorized by this Indenture,
the Company and the Trustee may from time to time and at any time enter into an
indenture or indentures supplemental hereto (which shall conform to the
provisions of the Trust Indenture Act as then in effect), without the consent
of the Securityholders, for one or more of the following purposes:

 

(a)           to cure any ambiguity, defect or inconsistency herein or
in the Securities of any series;

 

(b)           to comply with Article Ten;

 

(c)           to provide for uncertificated Securities in addition to or
in place of certificated Securities;

 

(d)           to add to the covenants of the Company for the benefit of
the holders of all or any series of Securities (and if such covenants are to be
for the benefit of less than all series of Securities, stating that such covenants
are expressly being included solely for the benefit of such series) or to
surrender any right or power herein conferred upon the Company;

 

(e)           to add to, delete from or revise the conditions,
limitations and restrictions on the authorized amount, terms, purposes of
issue, authentication and delivery of Securities, as herein set forth;

 

(f)            to make any change that does not adversely affect the
rights of any Securityholder in any material respect; or

 

(g)           to provide for the issuance of and establish the form and
terms and conditions of the Securities of any series as provided in
Section 2.01, to establish the form of any certifications required to be
furnished pursuant to the terms of this Indenture or any series of Securities,
or to add to the rights of the holders of any series of Securities.

 

The
Trustee is hereby authorized to join with the Company in the execution of any
such supplemental indenture, and to make any further appropriate agreements and
stipulations that may be therein contained, but the Trustee shall not be
obligated to enter into any such supplemental indenture that affects the
Trustee’s own rights, duties or immunities under this Indenture or otherwise.

 

Any
supplemental indenture authorized by the provisions of this Section may be
executed by the Company and the Trustee without the consent of the holders of
any of the Securities at the time Outstanding, notwithstanding any of the
provisions of Section 9.02.

 

SECTION 9.02  Supplemental Indentures With Consent of
Securityholders.

 

With
the consent (evidenced as provided in Section 8.01) of the holders of not
less than a majority in aggregate principal amount of the Securities of each
series affected by such supplemental indenture or indentures at the time
Outstanding, the Company, when authorized by Board Resolutions, and the Trustee
may from time to time and at any time enter into an indenture or indentures
supplemental hereto (which shall conform to the provisions of the Trust
Indenture Act as then in effect) for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Indenture
or of any supplemental indenture or of modifying in any manner 

 

26

 

not
covered by Section 9.01 the rights of the holders of the Securities of
such series under this Indenture; provided, however, that no such supplemental
indenture shall, without the consent of the holders of each Security then
Outstanding and affected thereby, (i) extend the fixed maturity of any
Securities of any series, or reduce the principal amount thereof, or reduce the
rate of interest thereon, or reduce any premium payable upon the redemption
thereof or (ii) reduce the aforesaid percentage of Securities, the holders
of which are required to consent to any such supplemental indenture.

 

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

 

SECTION 9.03  Effect of Supplemental Indentures.

 

Upon
the execution of any supplemental indenture pursuant to the provisions of this
Article or of Section 10.01, this Indenture shall, with respect to
such series, be and be deemed to be modified and amended in accordance
therewith and the respective rights, limitations of rights, obligations, duties
and immunities under this Indenture of the Trustee, the Company and the holders
of Securities of the series affected thereby shall thereafter be determined,
exercised and enforced hereunder subject in all respects to such modifications
and amendments, and all the terms and conditions of any such supplemental
indenture shall be and be deemed to be part of the terms and conditions of this
Indenture for any and all purposes.

 

SECTION 9.04  Securities Affected by Supplemental
Indentures.

 

Securities
of any series affected by a supplemental indenture, authenticated and delivered
after the execution of such supplemental indenture pursuant to the provisions
of this Article or of Section 10.01, may bear a notation in form
approved by the Company, provided such form meets the requirements of any
exchange upon which such series may be listed, as to any matter provided for in
such supplemental indenture.  If the
Company shall so determine, new Securities of that series so modified as to
conform, in the opinion of the Board of Directors, to any modification of this
Indenture contained in any such supplemental indenture may be prepared by the
Company, authenticated by the Trustee and delivered in exchange for the
Securities of that series then Outstanding.

 

SECTION 9.05  Execution of Supplemental Indentures.

 

Upon
the request of the Company, accompanied by Board Resolutions authorizing the
execution of any such supplemental indenture, and upon the filing with the
Trustee of evidence of the consent of Securityholders required to consent
thereto as aforesaid, the Trustee shall join with the Company in the execution
of such supplemental indenture unless such supplemental indenture affects the
Trustee’s own rights, duties or immunities under this Indenture or otherwise,
in which case the Trustee may in its discretion but shall not be obligated to
enter into such supplemental indenture. 
The Trustee, subject to the provisions of Section 7.01, may receive
an Opinion of Counsel as conclusive evidence that any supplemental indenture
executed pursuant to this Article is authorized or permitted by, and
conforms to, the terms of this Article and that it is proper for the
Trustee under the provisions of this Article to join in the execution
thereof; provided, however, that such Opinion of Counsel need not be provided
in connection with the execution of a supplemental indenture that establishes
the terms of a series of Securities pursuant to Section 2.01 hereof.

 

Promptly
after the execution by the Company and the Trustee of any supplemental
indenture pursuant to the provisions of this Section, the Trustee shall
transmit by mail, first class postage prepaid, a notice, setting forth in
general terms the substance of such supplemental indenture, to the
Securityholders of all series affected thereby as their names and addresses
appear upon the Security Register.  Any
failure of the Trustee to mail such notice, or any defect therein, shall not,
however, in any way impair or affect the validity of any such supplemental
indenture.

 

27

 

ARTICLE X

 

SUCCESSOR ENTITY

 

SECTION 10.01  Company May Consolidate, Etc.

 

Nothing
contained in this Indenture or in any of the Securities shall prevent any
consolidation or merger of the Company with or into any other Person (whether
or not affiliated with the Company) or successive consolidations or mergers in
which the Company or its successor or successors shall be a party or parties,
or shall prevent any sale, conveyance, transfer or other disposition of the
property of the Company or its successor or successors as an entirety, or
substantially as an entirety, to any other corporation (whether or not
affiliated with the Company or its successor or successors) authorized to
acquire and operate the same; provided, however, the Company hereby covenants
and agrees that, upon any such consolidation or merger (in each case, if the
Company is not the survivor of such transaction), sale, conveyance, transfer or
other disposition, the due and punctual payment of the principal of (premium,
if any) and interest on all of the Securities of all series in accordance with
the terms of each series, according to their tenor, and the due and punctual
performance and observance of all the covenants and conditions of this
Indenture with respect to each series or established with respect to such
series pursuant to Section 2.01 to be kept or performed by the Company
shall be expressly assumed, by supplemental indenture (which shall conform to
the provisions of the Trust Indenture Act as then in effect) satisfactory in
form to the Trustee executed and delivered to the Trustee by the entity formed
by such consolidation, or into which the Company shall have been merged, or by
the entity which shall have acquired such property.

 

SECTION 10.02  Successor Entity Substituted.

 

(a)           In case of any such consolidation, merger, sale,
conveyance, transfer or other disposition and upon the assumption by the
successor entity by supplemental indenture, executed and delivered to the
Trustee and satisfactory in form to the Trustee, of the due and punctual
payment of the principal of (and premium, if any) and interest on all of the
Securities of all series Outstanding and the due and punctual performance of
all of the covenants and conditions of this Indenture or established with
respect to each series of the Securities pursuant to Section 2.01 to be
performed by the Company with respect to each series, such successor entity
shall succeed to and be substituted for the Company with the same effect as if
it had been named as the Company herein, and thereupon the predecessor
corporation shall be relieved of all obligations and covenants under this
Indenture and the Securities.

 

(b)           In case of any such consolidation, merger, sale,
conveyance, transfer or other disposition, such changes in phraseology and form
(but not in substance) may be made in the Securities thereafter to be issued as
may be appropriate.

 

(c)           Nothing contained in this Article shall apply to
limit or impose any requirements upon the consolidation or merger of any Person
into the Company where the Company is the survivor of such transaction, or the
acquisition by the Company, by purchase or otherwise, of all or any part of the
property of any other Person (whether or not affiliated with the Company).

 

SECTION 10.03  Evidence of Consolidation, Etc.

 

The
Trustee, subject to the provisions of Section 7.01, may receive an Opinion
of Counsel as conclusive evidence that any such consolidation, merger, sale,
conveyance, transfer or other disposition, and any such assumption, comply with
the provisions of this Article.

 

28

 

ARTICLE XI

 

SATISFACTION AND DISCHARGE

 

SECTION 11.01  Satisfaction and Discharge of Indenture.

 

If
at any time:  (a) the Company shall
have delivered to the Trustee for cancellation all Securities of a series
theretofore authenticated (other than any Securities that have been destroyed,
lost or stolen and that have been replaced or paid as provided in
Section 2.07) and Securities for whose payment money or Governmental
Obligations have theretofore been deposited in trust or segregated and held in
trust by the Company (and thereupon repaid to the Company or discharged from
such trust, as provided in Section 11.05); or (b) all such Securities
of a particular series not theretofore delivered to the Trustee for
cancellation shall have become due and payable, or are by their terms to become
due and payable within one year or are to be called for redemption within one
year under arrangements satisfactory to the Trustee for the giving of notice of
redemption, and the Company shall deposit or cause to be deposited with the
Trustee as trust funds the entire amount in moneys or Governmental Obligations
or a combination thereof, sufficient in the opinion of a nationally recognized
firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee, to pay at maturity or upon redemption all
Securities of that series not theretofore delivered to the Trustee for
cancellation, including principal (and premium, if any) and interest due or to
become due to such date of maturity or date fixed for redemption, as the case
may be, and if the Company shall also pay or cause to be paid all other sums
payable hereunder with respect to such series by the Company then this
Indenture shall thereupon cease to be of further effect with respect to such
series except for the provisions of Sections 2.03, 2.05, 2.07, 4.01, 4.02, 4.03
and 7.10, that shall survive until the date of maturity or redemption date, as
the case may be, and Sections 7.06 and 11.05, that shall survive to such date
and thereafter, and the Trustee, on demand of the Company and at the cost and
expense of the Company, shall execute proper instruments acknowledging
satisfaction of and discharging this Indenture with respect to such series.

 

SECTION 11.02  Discharge of Obligations.

 

If
at any time all such Securities of a particular series not heretofore delivered
to the Trustee for cancellation or that have not become due and payable as
described in Section 11.01 shall have been paid by the Company by
depositing irrevocably with the Trustee as trust funds moneys or an amount of
Governmental Obligations sufficient to pay at maturity or upon redemption all
such Securities of that series not theretofore delivered to the Trustee for
cancellation, including principal (and premium, if any) and interest due or to
become due to such date of maturity or date fixed for redemption, as the case
may be, and if the Company shall also pay or cause to be paid all other sums
payable hereunder by the Company with respect to such series, then after the
date such moneys or Governmental Obligations, as the case may be, are deposited
with the Trustee, the obligations of the Company under this Indenture with
respect to such series shall cease to be of further effect except for the
provisions of Sections 2.03, 2.05, 2.07, 4.01, 4.02, 4.03, 7.06, 7.10 and 11.05
hereof that shall survive until such Securities shall mature and be paid.  Thereafter, Sections 7.06 and 11.05 shall
survive.

 

SECTION 11.03  Deposited Moneys to be Held in Trust.

 

All
moneys or Governmental Obligations deposited with the Trustee pursuant to
Sections 11.01 or 11.02 shall be held in trust and shall be available for
payment as due, either directly or through any paying agent (including the
Company acting as its own paying agent), to the holders of the particular
series of Securities for the payment or redemption of which such moneys or
Governmental Obligations have been deposited with the Trustee.

 

SECTION 11.04  Payment of Moneys Held by Paying Agents.

 

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

 

29

 

SECTION 11.05  Repayment to Company.

 

Any
moneys or Governmental Obligations deposited with any paying agent or the
Trustee, or then held by the Company, in trust for payment of principal of (and
premium, if any) or interest on the Securities of a particular series that are
not applied but remain unclaimed by the holders of such Securities for at least
two years after the date upon which the principal of (and premium, if any) or
interest on such Securities shall have respectively become due and payable,
shall be repaid to the Company or (if then held by the Company) shall be
discharged from such trust; and thereupon the paying agent and the Trustee
shall be released from all further liability with respect to such moneys or
Governmental Obligations, and the holder of any of the Securities entitled to
receive such payment shall thereafter, as an unsecured general creditor, look
only to the Company for the payment thereof.

 

ARTICLE XII

 

IMMUNITY OF INCORPORATORS,
STOCKHOLDERS, OFFICERS AND DIRECTORS

 

SECTION 12.01  No Recourse.

 

No
recourse under or upon any obligation, covenant or agreement of this Indenture,
or of any Security, or for any claim based thereon or otherwise in respect
thereof, shall be had against any incorporator, stockholder, officer or
director, past, present or future as such, of the Company or of any predecessor
or successor corporation, either directly or through the Company or any such
predecessor or successor corporation, whether by virtue of any constitution,
statute or rule of law, or by the enforcement of any assessment or penalty
or otherwise; it being expressly understood that this Indenture and the obligations
issued hereunder are solely corporate obligations, and that no such personal
liability whatever shall attach to, or is or shall be incurred by, the
incorporators, stockholders, officers or directors as such, of the Company or
of any predecessor or successor corporation, or any of them, because of the
creation of the indebtedness hereby authorized, or under or by reason of the
obligations, covenants or agreements contained in this Indenture or in any of
the Securities or implied therefrom; and that any and all such personal
liability of every name and nature, either at common law or in equity or by
constitution or statute, of, and any and all such rights and claims against,
every such incorporator, stockholder, officer or director as such, because of
the creation of the indebtedness hereby authorized, or under or by reason of
the obligations, covenants or agreements contained in this Indenture or in any
of the Securities or implied therefrom, are hereby expressly waived and
released as a condition of, and as a consideration for, the execution of this
Indenture and the issuance of such Securities.

 

ARTICLE XIII

 

MISCELLANEOUS PROVISIONS

 

SECTION 13.01  Effect on Successors and Assigns.

 

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

 

SECTION 13.02  Actions by Successor.

 

Any
act or proceeding by any provision of this Indenture authorized or required to
be done or performed by any board, committee or officer of the Company shall
and may be done and performed with like force and effect by the corresponding
board, committee or officer of any corporation that shall at the time be the
lawful successor of the Company.

 

SECTION 13.03  Notices.

 

Except
as otherwise expressly provided herein any notice or demand that by any
provision of this Indenture is required or permitted to be given or served by
the Trustee or by the holders of Securities to or on the Company 

 

30

 

may
be given or served by being deposited first class postage prepaid in a
post-office letterbox addressed (until another address is filed in writing by
the Company with the Trustee), as follows: Vertex Pharmaceuticals Incorporated,
130 Waverly Street, Cambridge, MA  02139,
Attn: General Counsel.  Any notice,
election, request or demand by the Company or any Securityholder to or upon the
Trustee shall be deemed to have been sufficiently given or made, for all
purposes, if given or made in writing at the Corporate Trust Office of the
Trustee.

 

SECTION 13.04  Governing Law.

 

This
Indenture and each Security shall be deemed to be a contract made under the
internal laws of the State of New York, and for all purposes shall be construed
in accordance with the laws of said State.

 

SECTION 13.05  Submission to Jurisdiction; Appointment of
Agent for Service of Process.

 

The
Company hereby appoints U.S. Bank National Association, acting through its
office at 100 Wall Street, New York, New York 10005 (or such other address in
the Borough of Manhattan, The City of New York, as such agent shall furnish in
writing to the Trustee) as its authorized agent (the “Authorized Agent”) upon
which process may be served in any legal action or proceeding against it with
respect to its obligations under this Indenture or the Securities of any
series, as the case may be, instituted in any federal or state court in the
Borough of Manhattan, The City of New York by the holder of any Security, and
agrees that service of process upon the Authorized Agent, together with written
notice of said service mailed or delivered to the Company, addressed as
provided in Section 13.03, shall be deemed in every respect effective
service of process upon the Company in any such legal action or proceeding, and
the Company hereby irrevocably submits to the non-exclusive jurisdiction of any
such court in respect of any such legal action or proceeding and waives, to the
extent it may effectively do so, any objection it may have to the laying of the
venue of any such legal action or proceeding. 
Such appointment shall be irrevocable so long as the holders of
Securities shall have any rights pursuant to the terms of the Securities or of
this Indenture until the appointment of a successor Authorized Agent by the
Company and such successor’s acceptance of such appointment.  The Company reserves the right to appoint
another person located, or with an office, in the Borough of Manhattan, The
City of New York, selected in its sole discretion, as a successor Authorized
Agent, and upon acceptance of such appointment by such a successor the
appointment of the prior Authorized Agent shall terminate.  If for any reason U.S. Bank National
Association ceases to be able to act as the Authorized Agent or to have an
address in the Borough of Manhattan, The City of New York, the Company will
appoint a successor Authorized Agent in accordance with the preceding
sentence.  The Company further agrees to
take any and all action, including the filing of any and all documents and
instruments as may be necessary to continue such designation and appointment of
such agent or successor in full force and effect for as long as required
hereunder.

 

SECTION 13.06  Compliance Certificates and Opinions.

 

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

 

(b)           Each certificate or opinion provided for in this Indenture
and delivered to the Trustee with respect to compliance with a condition or
covenant in this Indenture shall include (1) a statement that the Person
making such certificate or opinion has read such covenant or condition;
(2) a brief statement as to the nature and scope of the examination or
investigation upon which the statements or opinions contained in such
certificate or opinion are based; (3) a statement that, in the opinion of
such Person, he has made such examination or investigation as is necessary to
enable him to express an informed opinion as to whether or not such covenant or
condition has been complied with; and (4) a statement as to whether or
not, in the opinion of such Person, such condition or covenant has been
complied with.

 

31

 

(c)           The Company shall furnish to the Trustee, within 120 days
after the end of each fiscal year, a brief certificate from the principal
executive officer, principal financial officer or principal accounting officer
as to his or her knowledge of such obligor’s compliance with all conditions and
covenants under this Indenture.  For
purposes of this subsection, such compliance shall be determined without regard
to any period of grace or requirement of notice provided hereunder.

 

SECTION 13.07  Payments on Business Days.

 

Except
as provided pursuant to Section 2.01 pursuant to a Board Resolution, and
as set forth in an Officers’ Certificate, or established in one or more
indentures supplemental to this Indenture, in any case where the date of
maturity of interest or principal of any Security or the date of redemption of
any Security shall not be a Business Day, then payment of interest or principal
(and premium, if any) may be made on the next succeeding Business Day with the same
force and effect as if made on the nominal date of maturity or redemption, and
no interest shall accrue for the period after such nominal date.

 

SECTION 13.08  Conflict with Trust Indenture Act.

 

If
and to the extent that any provision of this Indenture limits, qualifies or
conflicts with the duties imposed by Sections 310 to 317, inclusive, of the
Trust Indenture Act, such imposed duties shall control.

 

SECTION 13.09  Counterparts.

 

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

 

SECTION 13.10  Separability.

 

In
case any one or more of the provisions contained in this Indenture or in the
Securities of any series shall for any reason be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provisions of this Indenture or of such Securities,
but this Indenture and such Securities shall be construed as if such invalid or
illegal or unenforceable provision had never been contained herein or therein.

 

SECTION 13.11  Assignment.

 

The
Company will have the right at all times to assign any of its rights or
obligations under this Indenture to a direct or indirect wholly owned
Subsidiary of the Company, provided that, in the event of any such assignment,
the Company will remain liable for all such obligations.  Subject to the foregoing, the Indenture is
binding upon and inures to the benefit of the parties thereto and their
respective successors and assigns.  This
Indenture may not otherwise be assigned by the parties thereto.

 

ARTICLE XIV

 

SUBORDINATION OF SECURITIES

 

SECTION 14.01  Subordination Terms.

 

The
payment by the Company of the principal of (and premium, if any) and interest
on any series of Securities issued hereunder shall be subordinated to the
extent set forth in an indenture supplemental hereto relating to such
securities.

 

[Remainder of page intentionally left blank.]

 

32

 

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

 

	
   

  	
  VERTEX
  PHARMACEUTICALS INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Ian F. Smith

  
	
   

  	
  Name:

  	
  Ian
  F. Smith

  
	
   

  	
  Title:

  	
  Executive
  Vice President and Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  U.S
  BANK NATIONAL ASSOCIATION,

  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Karen R. Beard

  
	
   

  	
  Name:

  	
  Karen
  R. Beard

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

33Exhibit 4.2

 

FIRST SUPPLEMENTAL INDENTURE

 

BETWEEN

 

VERTEX PHARMACEUTICALS INCORPORATED,

 

AS ISSUER

 

AND

 

U.S. BANK NATIONAL ASSOCIATION,

 

AS TRUSTEE

 

DATED AS OF SEPTEMBER 28, 2010

 

ESTABLISHING THE SERIES OF SECURITIES DESIGNATED AS

 

3.35% CONVERTIBLE SENIOR SUBORDINATED NOTES DUE 2015

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1

  
	
  DEFINITIONS AND
  INCORPORATION BY REFERENCE

  
	
   

  	
   

  	
   

  
	
  Section 1.01

  	
  Definitions

  	
  2

  
	
  Section 1.02

  	
  Other
  Definitions

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  
	
  THE SECURITIES

  
	
   

  	
   

  	
   

  
	
  Section 2.01

  	
  Designation,
  Form and Dating

  	
  10

  
	
  Section 2.02

  	
  Final
  Maturity Date; Interest

  	
  11

  
	
  Section 2.03

  	
  Denominations;
  Provisions for Payment

  	
  11

  
	
  Section 2.04

  	
  Conversion
  Agent

  	
  11

  
	
  Section 2.05

  	
  Conversion
  Agent to Hold Shares in Trust

  	
  13

  
	
  Section 2.06

  	
  Global
  Securities

  	
  13

  
	
  Section 2.07

  	
  References
  to Interest and Premium

  	
  14

  
	
  Section 2.08

  	
  Outstanding
  Securities

  	
  14

  
	
  Section 2.09

  	
  Treasury
  Securities

  	
  15

  
	
  Section 2.10

  	
  CUSIP
  Numbers

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

  
	
  REDEMPTION AND REPURCHASE
  OF SECURITIES

  
	
   

  	
   

  	
   

  
	
  Section 3.01

  	
  Company’s
  Right to Redeem

  	
  15

  
	
  Section 3.02

  	
  Notices
  to Trustee

  	
  16

  
	
  Section 3.03

  	
  Selection
  of Securities To Be Redeemed

  	
  16

  
	
  Section 3.04

  	
  Notice
  of Redemption

  	
  17

  
	
  Section 3.05

  	
  Effect
  of Notice of Redemption

  	
  18

  
	
  Section 3.06

  	
  Deposit
  and Payment of Redemption Price

  	
  19

  
	
  Section 3.07

  	
  Repurchase
  of Securities at Option of the Holder upon a Fundamental Change

  	
  19

  
	
  Section 3.08

  	
  Effect
  of Fundamental Change Repurchase Notice

  	
  22

  
	
  Section 3.09

  	
  Deposit
  of Fundamental Change Repurchase Price

  	
  22

  
	
  Section 3.10

  	
  Repayment
  to the Company

  	
  22

  
	
  Section 3.11

  	
  Securities
  Purchased in Part

  	
  23

  
	
  Section 3.12

  	
  Compliance
  with Securities Laws upon Purchase of Securities

  	
  23

  
	
  Section 3.13

  	
  Purchase
  of Securities in Open Market

  	
  23

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4

  
	
  CONVERSION

  
	
   

  	
   

  	
   

  
	
  Section 4.01

  	
  Conversion
  Privilege and Conversion Rate

  	
  23

  
	
  Section 4.02

  	
  Conversion
  Procedure

  	
  26

  
	
  Section 4.03

  	
  Fractional
  Shares

  	
  27

  

 

i

 

TABLE OF CONTENTS

(continued)

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Section 4.04

  	
  Taxes
  on Conversion

  	
  27

  
	
  Section 4.05

  	
  Company
  to Provide Common Stock

  	
  28

  
	
  Section 4.06

  	
  Adjustment
  of Conversion Rate

  	
  28

  
	
  Section 4.07

  	
  No
  Adjustment

  	
  36

  
	
  Section 4.08

  	
  Notice
  of Adjustment

  	
  37

  
	
  Section 4.09

  	
  Notice
  of Certain Transactions

  	
  37

  
	
  Section 4.10

  	
  Effect
  of Reclassification, Consolidation, Merger or Sale on Conversion Privilege

  	
  37

  
	
  Section 4.11

  	
  Trustee’s
  Disclaimer

  	
  38

  
	
  Section 4.12

  	
  Voluntary
  Increase

  	
  39

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  
	
  SUBORDINATION

  
	
   

  	
   

  	
   

  
	
  Section 5.01

  	
  Securities
  Subordinated to Senior Debt

  	
  39

  
	
  Section 5.02

  	
  Subrogation

  	
  40

  
	
  Section 5.03

  	
  Obligation
  of the Company Is Absolute and Unconditional

  	
  41

  
	
  Section 5.04

  	
  Maturity
  of or Default on Senior Debt

  	
  41

  
	
  Section 5.05

  	
  Payments
  on Securities Permitted

  	
  41

  
	
  Section 5.06

  	
  Effectuation
  of Subordination by Trustee

  	
  41

  
	
  Section 5.07

  	
  Knowledge
  of Trustee

  	
  42

  
	
  Section 5.08

  	
  Trustee’s
  Relation to Senior Debt

  	
  42

  
	
  Section 5.09

  	
  Rights
  of Holders of Senior Debt Not Impaired

  	
  43

  
	
  Section 5.10

  	
  Modification
  of Terms of Senior Debt

  	
  43

  
	
  Section 5.11

  	
  Certain
  Conversions Not Deemed Payment

  	
  43

  
	
  Section 5.12

  	
  No
  Layering of Debt

  	
  44

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6

  
	
  COVENANTS

  
	
   

  	
   

  	
   

  
	
  Section 6.01

  	
  Payment
  of Securities

  	
  44

  
	
  Section 6.02

  	
  Corporate
  Existence

  	
  45

  
	
  Section 6.03

  	
  Maintenance
  of Properties

  	
  45

  
	
  Section 6.04

  	
  Payment
  of Taxes and Other Claims

  	
  45

  
	
  Section 6.05

  	
  Reports

  	
  45

  
	
  Section 6.06

  	
  Compliance
  Certificate

  	
  46

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7

  
	
  CONSOLIDATION; MERGER;
  CONVEYANCE; TRANSFER OR LEASE

  
	
   

  	
   

  	
   

  
	
  Section 7.01

  	
  Company
  May Consolidate, Etc., Only on Certain Terms

  	
  46

  
	
  Section 7.02

  	
  Successor
  Substituted

  	
  47

  

 

ii

 

TABLE OF CONTENTS

(continued)

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8

  
	
  DEFAULT AND REMEDIES

  
	
   

  	
   

  	
   

  
	
  Section 8.01

  	
  Events
  of Default

  	
  48

  
	
  Section 8.02

  	
  Acceleration
  of Maturity; Rescission and Annulment

  	
  49

  
	
  Section 8.03

  	
  Other
  Remedies

  	
  50

  
	
  Section 8.04

  	
  Waiver
  of Past Defaults

  	
  50

  
	
  Section 8.05

  	
  Control
  by Majority

  	
  51

  
	
  Section 8.06

  	
  Limitation on Suit

  	
  51

  
	
  Section 8.07

  	
  Unconditional
  Rights of Holders to Receive Payment and to Convert

  	
  52

  
	
  Section 8.08

  	
  Collection
  of Indebtedness and Suits for Enforcement by the Trustee

  	
  52

  
	
  Section 8.09

  	
  Trustee
  May File Proofs of Claim

  	
  53

  
	
  Section 8.10

  	
  Restoration
  of Rights and Remedies

  	
  53

  
	
  Section 8.11

  	
  Rights
  and Remedies Cumulative

  	
  54

  
	
  Section 8.12

  	
  Delay
  or Omission Not Waiver

  	
  54

  
	
  Section 8.13

  	
  Application
  of Money Collected

  	
  54

  
	
  Section 8.14

  	
  Undertaking
  for Costs

  	
  54

  
	
  Section 8.15

  	
  Waiver
  of Stay or Extension Laws

  	
  55

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9

  
	
  THE TRUSTEE

  
	
   

  	
   

  	
   

  
	
  Section 9.01

  	
  Certain
  Duties and Responsibilities

  	
  55

  
	
  Section 9.02

  	
  Certain
  Rights of Trustee

  	
  55

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10

  
	
  AMENDMENTS; SUPPLEMENTS
  AND WAIVERS

  
	
   

  	
   

  	
   

  
	
  Section 10.01

  	
  Without
  Consent of Holders

  	
  56

  
	
  Section 10.02

  	
  With
  Consent of Holders

  	
  57

  
	
  Section 10.03

  	
  Revocation
  and Effect of Consents

  	
  58

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11

  
	
  SATISFACTION AND DISCHARGE

  
	
   

  	
   

  	
   

  
	
  Section 11.01

  	
  Satisfaction
  and Discharge of Indenture

  	
  59

  
	
  Section 11.02

  	
  Deposited
  Cash to be Held in Trust

  	
  59

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12

  
	
  MEETING OF HOLDERS OF
  SECURITIES

  
	
   

  	
   

  	
   

  
	
  Section 12.01

  	
  Purposes
  for Which Meetings May Be Called

  	
  60

  
	
  Section 12.02

  	
  Call
  Notice and Place of Meetings

  	
  60

  
	
  Section 12.03

  	
  Persons
  Entitled to Vote at Meetings

  	
  60

  

 

iii

 

TABLE OF CONTENTS

(continued)

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Section 12.04

  	
  Quorum;
  Action

  	
  61

  
	
  Section 12.05

  	
  Determination
  of Voting Rights; Conduct and Adjournment of Meetings

  	
  61

  
	
  Section 12.06

  	
  Counting
  Votes and Recording Action of Meetings

  	
  62

  
	
   

  	
   

  	
   

  
	
  ARTICLE 13

  
	
  MISCELLANEOUS

  
	
   

  	
   

  	
   

  
	
  Section 13.01

  	
  Notices

  	
  62

  
	
  Section 13.02

  	
  Acts
  of Holders of Securities

  	
  63

  
	
  Section 13.03

  	
  Certificate
  and Opinion as to Conditions Precedent

  	
  64

  
	
  Section 13.04

  	
  Governing
  Law

  	
  64

  
	
  Section 13.05

  	
  Counterparts

  	
  64

  
	
  Section 13.06

  	
  Legal
  Holidays

  	
  64

  
	
  Section 13.07

  	
  Calculations
  in Respect of Securities

  	
  65

  
	
  Section 13.08

  	
  No
  Security Interest Created

  	
  65

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  Form of
  Note

  	
  1

  
				

 

iv

 

FIRST
SUPPLEMENTAL INDENTURE (the “Supplemental
Indenture”), dated as of September 28, 2010, between VERTEX
PHARMACEUTICALS INCORPORATED, a corporation duly organized and existing under
the laws of the Commonwealth of Massachusetts, having its principal office at
130 Waverly Street, Cambridge, Massachusetts 02139, and U.S. BANK NATIONAL
ASSOCIATION, as trustee, having its principal corporate trust office at One
Federal Street, Boston, Massachusetts 02110, supplementing and amending the
Subordinated Indenture (the “Base
Indenture”) dated as of September 28, 2010 between the Company
and the Trustee.

 

RECITALS

 

WHEREAS,
the Company executed and delivered the Base Indenture to the Trustee to provide
for, among other things, the issuance from time to time of the Company’s debt
securities in one or more series as might be authorized under the Base
Indenture;

 

WHEREAS,
the Base Indenture provides that the Company and the Trustee may enter into an
Indenture supplemental to the Base Indenture to establish the form and terms of
any series of Securities (as defined in Section 1.01 of the Base Indenture) as
provided by Section 2.01 of the Base Indenture;

 

WHEREAS,
the Company desires to enter into this Supplemental Indenture to provide for
the establishment of a series of Securities (as defined in Section 1.01 of the
Base Indenture) to be known as the 3.35% Convertible Senior Subordinated Notes
due 2015, the form, substance, terms, provisions and conditions of which shall
be set forth in Article 2 of the Base Indenture as supplemented by this
Supplemental Indenture, as the same may be further amended and supplemented
from time to time (being hereinafter called this “Indenture”);

 

WHEREAS,
this Supplemental Indenture shall apply only to the 3.35% Convertible Senior
Subordinated Notes due 2015 and not to any other series of Securities (as
defined in Section 1.01 of the Base Indenture) issued under the Base Indenture;

 

WHEREAS,
the Board of Directors of the Company has duly adopted resolutions authorizing
the Company to issue the Securities provided for in this Supplemental
Indenture; and

 

WHEREAS,
the Company has requested that the Trustee execute and deliver this
Supplemental Indenture and has satisfied all requirements necessary to make (i)
this Supplemental Indenture a valid instrument in accordance with its terms and
(ii) the Securities provided for hereby, when executed and delivered by the
Company and authenticated by the Trustee, a series of Securities that are the
valid obligations of the Company.

 

NOW, THEREFORE, THIS INDENTURE
WITNESSETH:

 

For
and in consideration of the premises and the purchase of the Securities by the
Holders thereof, it is mutually covenanted and agreed, for the equal and
proportionate benefit of all Holders of the Securities, as follows:

 

 

Article 1

Definitions and Incorporation by Reference

 

Section
1.01                  Definitions.  Unless otherwise specified herein or the
context otherwise requires:

 

(a)  a term defined in the Base Indenture has the
same meaning when used in this Supplemental Indenture unless the definition of
such term is amended or supplemented pursuant to this Supplemental Indenture;

 

(b)  the terms defined in this Article and in this
Supplemental Indenture include the plural as well as the singular;

 

(c)  a reference to a Section or Article is to a Section
or Article of this Supplemental Indenture;

 

(d)  Article and Section headings herein and the
table of contents hereof are for convenience only and shall not affect the
construction hereof; and

 

(e)  the following terms have the meanings given to
them in this Section 1.01(e):

 

“5-Day Volume-Weighted Average Price”
means the per share volume-weighted average price as displayed under the
heading “Bloomberg VWAP” on Bloomberg page “VRTX.UQ <equity> AQR” (or its
equivalent successor if such page is not available) in respect of the five
trading day period from the scheduled open of trading on the trading day
immediately following the Notice Date until the scheduled close of trading of
the primary trading session on the last trading day of that five trading day
period (or if such volume-weighted average price is unavailable, the market
value of one share of Common Stock during that five trading day period
determined, using a volume-weighted average method, by a nationally recognized
independent investment banking firm retained for this purpose by the
Company).  The 5-Day Volume-Weighted
Average Price will be determined without regard to after hours trading or any
other trading outside of the regular trading session trading hours.

 

“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” (including, with correlative meanings,
the terms “controlled by” and “under common control with”), as used with
respect to any person, shall mean the possession, directly or indirectly, of
the power to direct or cause the direction of the management or policies of
such person, whether through the ownership of voting securities or by agreement
or otherwise.

 

“Agent” means any Security Registrar,
Paying Agent, co-agent, co-registrar or Service Agent.

 

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

 

2

 

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

 

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

 

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

 

“Change in Control” means the occurrence
of any of the following events from and after the Issue Date:

 

(i)
any “person” or “group” (as such terms are used in Section 13(d)(3) of the
Exchange Act or any successor provision to the foregoing), including any group
acting for the purpose of acquiring, holding or disposing of securities within
the meaning of Rule 13d–5(b)(1) under the Exchange Act, other than the Company,
any of its Subsidiaries or any of its employee benefit plans, is or becomes the
“beneficial owner” (as defined in Rule 13d–3 under the Exchange Act), directly
or indirectly, through a purchase, merger or other acquisition transaction or
series of transactions, of 50% or more of the total voting power of all classes
of the Company’s Voting Stock;

 

(ii)
the Company consolidates with, or merges with or into, another person (as such
term is used in Sections 13(d)(3) of the Exchange Act) or any person
consolidates or merges with or into the Company, or the Company conveys,
transfers, leases or otherwise disposes of all or substantially all of its
assets to any person, other than (x) any transaction that (A) does not result
in any reclassification, conversion, exchange or cancellation of outstanding
shares of the Company’s Capital Stock, and (B) pursuant to which holders of the
Company’s Capital Stock immediately prior to the transaction have the
entitlement to exercise, directly or indirectly, 50% or more of the total
voting power of all shares of the Voting Stock of the continuing or surviving
entity of such transaction; or (y) any merger solely for the purpose of
changing the Company’s jurisdiction of formation and resulting in a
reclassification, conversion or exchange of outstanding shares of Common Stock
solely into shares of common stock of the surviving entity; notwithstanding
anything to the contrary set forth herein, a Change in Control will be deemed
not to have occurred if, in the case of a merger or consolidation, at least 90%
of the consideration (excluding cash payments for fractional shares and cash
payments made in respect of dissenters’ appraisal rights) in a transaction or
transactions otherwise constituting a Change in Control consists of shares of
common stock traded on a U.S. national securities exchange, or which will be so
traded when issued or exchanged in connection with the transaction or
transactions, and as a result of the transaction or transactions the Securities
become convertible solely into such common stock;

 

(iii)
during any consecutive two-year period, individuals who at the beginning of
that two-year period constituted the Board of Directors (together with any new
directors whose election to such Board of Directors, or whose nomination for
election by stockholders of the Company, was approved by a vote of a majority
of the directors then still in office who were 

 

3

 

either
directors at the beginning of such period or whose election or nomination for
election was previously so approved) cease for any reason (other than death) to
constitute a majority of the Board of Directors then in office; or

 

(iv)
the Company’s stockholders approve a plan of liquidation or dissolution.

 

“Closing Price” means, on any Trading
Day, the reported last sale price per share of the Common Stock (or the other
security in respect of which the Closing Price is being determined), or if no
last sale price is reported, the average of the bid and ask prices per share
or, if more than one in either case, the average of the average bid and the
average ask prices per share, on such date reported by the Nasdaq Global Select
Market or, if the Common Stock (or the applicable security) is not listed on
the Nasdaq Global Select Market, as reported by the principal national
securities exchange on which the Common Stock (or such other security) is
listed, or if no such prices are available, the Closing Price per share shall
be the fair value of a share of Common Stock (or such other security) as
reasonably determined by the Board of Directors (which determination shall be
conclusive and shall be evidenced by an Officers’ Certificate delivered to the
Trustee).

 

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

 

“Company Order” means a written order
signed in the name of the Company by two Officers, one of whom must be the
Company’s principal executive officer, principal financial officer or principal
accounting officer.

 

“Conversion Agent” means any Person
authorized by the Company to convert Securities in accordance with Article 4
hereof.

 

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

 

“Conversion Rate” means the rate at
which shares of Common Stock shall be delivered upon conversion, which rate shall
be initially 20.4794 shares of Common Stock for each $1,000 principal amount of
Securities, as adjusted from time to time pursuant to the provisions of this
Indenture.

 

4

 

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

 

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

 

“Final Maturity Date” means October 1,
2015.

 

“Final Prospectus” means the prospectus
of the Company dated February 19, 2010 together with the prospectus supplement
thereto with respect to the Securities dated September 23, 2010.

 

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

 

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

 

“Fundamental Change Repurchase Price” of
any Security means 100% of the principal amount of the Security to be
repurchased plus unpaid interest, including Special Interest, if any, accrued
and unpaid to, but excluding, the Fundamental Change Repurchase Date.

 

“GAAP” means generally accepted
accounting principles in the United States of America as in effect from time to
time, including those set forth in (1) the opinions and pronouncements of the
Accounting Principles Board of the American Institute of Certified Public
Accountants, (2) the statements and pronouncements of the Financial Accounting
Standards Board, and (3) such other statements by such other entity as approved
by a significant segment of the accounting profession.

 

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

 

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

 

“Indebtedness,” when used with respect
to any Person, and without duplication means:

 

(i)
all indebtedness, obligations and other liabilities (contingent or otherwise)
of such Person for borrowed money (including obligations of such person in
respect of overdrafts and any loans or advances from banks, whether or not
evidenced by notes or similar instruments) or evidenced by bonds, notes or
other instruments for the payment of money, or incurred in connection with the
acquisition of any property, services or assets (whether or not the recourse of
the lender is to the whole of the assets of such Person or to only a portion
thereof), other than any account payable or other accrued current liability or
obligation to trade creditors incurred in the ordinary course of business in
connection with the obtaining of materials or services;

 

5

 

(ii)
all reimbursement obligations and other liabilities (contingent or otherwise)
of such Person with respect to letters of credit, bank guarantees, bankers’
acceptances, surety bonds, performance bonds or other guaranty of contractual
performance;

 

(iii)
all obligations and liabilities (contingent or otherwise) in respect of (a) leases
of such Person required, in conformity with GAAP, to be accounted for as
capitalized lease obligations on the balance sheet of such Person and (b) any
lease or related documents, including a purchase agreement, in connection with
the lease of real property which provides that such Person is contractually
obligated to purchase or cause a third party to purchase the leased property
and thereby guarantee a minimum residual value of the leased property to the
landlord and the obligations of such Person under such lease or related
document to purchase or to cause a third party to purchase the leased property;

 

(iv)
all obligations of such Person (contingent or otherwise) with respect to an
interest rate or other swap, cap or collar agreement or other similar
instrument or agreement or foreign currency hedge, exchange, purchase or
similar instrument or agreement;

 

(v)
all direct or indirect guaranties or similar agreements by such Person in
respect of, and obligations or liabilities (contingent or otherwise) of such
Person to purchase or otherwise acquire or otherwise assure a creditor against
loss in respect of, indebtedness, obligations or liabilities of another Person
of the kind described in clauses (i) through (iv);

 

(vi)
any indebtedness or other obligations described in clauses (i) through (iv) secured
by any mortgage, pledge, lien or other encumbrance existing on property which
is owned or held by such Person, regardless of whether the indebtedness or
other obligation secured thereby shall have been assumed by such Person; and

 

(vii)
any and all deferrals, renewals, extensions, refinancings, replacements,
restatements and refundings of, or amendments, modifications or supplements to,
any indebtedness, obligation or liability of the kind described in clauses (i) through
(vi).

 

“Interest Payment Date” means each date
specified as such in Exhibit A.

 

“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.

 

“Maturity” means the date on which the
principal of such Security becomes due and payable as therein or herein
provided, whether at the Final Maturity Date or by acceleration, conversion,
exercise of a repurchase right or otherwise.

 

“Officer” means the Chief Executive
Officer, any President, any Vice-President, the Treasurer, the Secretary, any
Assistant Treasurer or any Assistant Secretary of the Company.

 

“Regular Record Date” means, with
respect to each Interest Payment Date, March 15 or September 15, as the case
may be, next preceding such Interest Payment Date.

 

6

 

“Rights” means any common stock or
preferred stock purchase right or warrant, as the case may be, that all or
substantially all shares of Common Stock are entitled to receive under a Rights
Plan.

 

“Rights Plan” means the Company’s
preferred shares rights plan in connection with the Rights Agreement, dated as
of July 1, 1991, as amended, and any preferred shares rights plan or any
similar plan adopted by the Company after the date hereof.

 

“SEC” means the Securities and Exchange
Commission.

 

“Securities” means the up to
$400,000,000 aggregate principal amount of 3.35% Convertible Senior
Subordinated Notes due 2015, or any of them (each a “Security”), as amended or supplemented
from time to time, that are issued under this Indenture.

 

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

 

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

 

“Senior Debt” means the principal of,
premium, if any, interest (including interest, to the extent allowable,
accruing subsequent to the filing of a petition initiating any proceeding under
any state, federal or foreign bankruptcy law, whether or not a claim for
post-petition interest is allowable as a claim in any such proceeding) and rent
payable on or termination payments with respect to or in connection with, and
all fees, costs, expenses and other amounts accrued or due on or in connection
with, Indebtedness of the Company, whether outstanding on the date of this
Supplemental 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), except for:

 

(i)
Indebtedness that by its terms expressly provides that it shall not be senior
in right of payment to the Securities or expressly provides that such
Indebtedness is equal with or junior to the Securities; and

 

(ii)
Indebtedness between or among the Company or any of the Subsidiaries of the
Company.

 

“Significant Subsidiary” means (i) any
direct or indirect Subsidiary of the Company that would be a “significant
subsidiary” as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated
pursuant to the Securities Act, as such regulation is in effect on the date
hereof, or (ii) any group of direct or indirect Subsidiaries of the Company
that, taken together as a group, would be a “significant subsidiary” as defined
in Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to the
Securities Act, as such regulation is in effect on the date hereof.

 

“Special Record Date” for the payment of
any Defaulted Interest means a date fixed by the Company pursuant to Section 2.03
of the Base Indenture.

 

7

 

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

 

“Stock Price” means the price paid per
share of the Common Stock in connection with a Fundamental Change as determined
pursuant to Section 4.01(e).

 

“Termination of Trading” means the
occurrence of the Common Stock (or other common stock for which the Securities
are then convertible) not being listed for trading on a United States national
securities exchange nor approved for on any United States system of automated
dissemination of quotations of securities prices or approved for trading on an
established automated over-the-counter trading market in the United States.

 

“TIA” means the Trust Indenture Act of
1939 (15 U.S. Code §§ 77aaa-77bbbb) as in effect on the date of this
Supplemental Indenture; provided, however, that in the event the Trust
Indenture Act of 1939 is amended after such date, “TIA” means, to the extent
required by any such amendment, the Trust Indenture Act as so amended.

 

“Trading Day” means any day on which the
Nasdaq Global Select Market or, if the Common Stock is not listed on the Nasdaq
Global Select Market, the principal national securities exchange on which the
Common Stock is listed, is open for trading or, if the Common Stock is listed
on the New York Stock Exchange, a day on which trades may be made on such
market or, if the applicable Security is not so listed, admitted for trading or
quoted, 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.

 

“Underwriter” means Merrill Lynch,
Pierce, Fenner & Smith Incorporated.

 

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

 

Section
1.02                  Other Definitions.

 

	
  Term

  	
   

  	
  Defined in Section

  
	
   

  	
   

  	
   

  
	
  “Additional Payment upon Provisional Redemption”

  	
   

  	
  3.01(a)

  
	
  “Agent Members”

  	
   

  	
  2.06(b)

  
	
  “Bankruptcy Law”

  	
   

  	
  8.01

  
	
  “Base Indenture”

  	
   

  	
  Recitals

  
	
  “Board Resolution”

  	
   

  	
  Base
  Indenture

  
	
  “Business Day”

  	
   

  	
  Base
  Indenture

  

 

8

 

	
  “Company”

  	
   

  	
  Base
  Indenture

  
	
  “Conversion Agent”

  	
   

  	
  2.04

  
	
  “Conversion Date”

  	
   

  	
  4.02(a)

  
	
  “Current Market Price”

  	
   

  	
  4.06(a)(8)

  
	
  “Defaulted Interest”

  	
   

  	
  Base
  Indenture

  
	
  “Depositary”

  	
   

  	
  Base
  Indenture

  
	
  “Drop Agent’s Office”

  	
   

  	
  2.04

  
	
  “Event of Default”

  	
   

  	
  8.01

  
	
  “Expiration Time”

  	
   

  	
  4.06(a)(7)

  
	
  “Fundamental Change Company Notice”

  	
   

  	
  3.07(b)

  
	
  “Fundamental Change Repurchase Date”

  	
   

  	
  3.07(a)

  
	
  “Fundamental Change Repurchase Notice”

  	
   

  	
  3.07(c)

  
	
  “Indenture”

  	
   

  	
  Recitals

  
	
  “Make-Whole Premium”

  	
   

  	
  4.01(e)

  
	
  “Measurement Period”

  	
   

  	
  4.06(a)(4)

  
	
  “Notice Date”

  	
   

  	
  3.04

  
	
  “Officers’ Certificate”

  	
   

  	
  Base
  Indenture

  
	
  “Opinion of Counsel”

  	
   

  	
  Base
  Indenture

  
	
  “Paying Agent”

  	
   

  	
  2.04

  
	
  “Person”

  	
   

  	
  Base
  Indenture

  
	
  “Purchased Shares”

  	
   

  	
  4.06(a)(7)(i)

  
	
  “record date”

  	
   

  	
  4.06(a)(8)(C)

  
	
  “Receiver”

  	
   

  	
  8.01

  
	
  “Redemption Notice”

  	
   

  	
  3.01

  
	
  “Redemption Price”

  	
   

  	
  3.01

  
	
  “Redemption Date”

  	
   

  	
  3.01

  
	
  “Reference Period”

  	
   

  	
  4.06(a)(4)

  
	
  “Responsible Officer”

  	
   

  	
  Base
  Indenture

  
	
  “Security Registrar”

  	
   

  	
  Base
  Indenture

  
	
  “Service Agent”

  	
   

  	
  2.04

  
	
  “Special Interest”

  	
   

  	
  8.02

  
	
  “Spin-off”

  	
   

  	
  4.06(a)(4)

  

 

9

 

	
  “Subsidiary”

  	
   

  	
  Base
  Indenture

  
	
  “Supplemental Indenture”

  	
   

  	
  Recitals

  
	
  “Trigger Event”

  	
   

  	
  4.06(a)(4)

  
	
  “Trustee”

  	
   

  	
  Base
  Indenture

  
	
  “Underwriting Agreement”

  	
   

  	
  2.01

  

 

Article 2

The Securities

 

Section 2.01                  Designation, Form and Dating.

 

There
is hereby authorized a series of senior subordinated unsecured Securities
designated as “3.35% Convertible Senior Subordinated Notes due 2015.” The
Securities are being offered and sold pursuant to an Underwriting Agreement,
dated as of September 23, 2010 (the “Underwriting
Agreement”), between the Company and the Underwriter.

 

The
Securities and the Trustee’s certificate of authentication to be borne by such
Securities shall be substantially in the form set forth in Exhibit A. The terms
and provisions contained in the form of Securities attached as Exhibit A hereto
shall constitute, and are hereby expressly made, a part of this Indenture and,
to the extent applicable, the Company and the Trustee, by their execution and
delivery of this Indenture, expressly agree to such terms and provisions and to
be bound thereby.

 

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

 

The
Depositary for the Securities shall be The Depository Trust Company.  Subject to Section 2.06 hereof, so long as
the Securities are eligible for book-entry settlement with the Depositary, or
unless otherwise required by law, all of the Securities will be represented by
one or more Global Securities. The transfer and exchange of beneficial
interests in any such Global Security shall be effected through the Depositary
in accordance with this Indenture and the Applicable Procedures.

 

Each
Global Security shall represent such of the outstanding Securities as shall be
specified therein and each shall provide that it shall represent the aggregate
principal amount of outstanding Securities from time to time endorsed thereon
and that the aggregate principal amount of outstanding Securities represented
thereby may from time to time be reduced or increased, as appropriate, to
reflect exchanges, redemptions, purchases or conversions of such Securities.

 

10

 

Section 2.02           Final Maturity Date; Interest.

 

The
Final Maturity Date of the Securities shall be October 1, 2015.

 

The
rate or rates at which the Securities shall bear interest, including Special
Interest, if any, the date or dates from which such interest shall accrue and
the Interest Payment Dates on which such interest shall be payable, in each
case, shall be as set forth in the form of Security set forth as Exhibit A
hereto.

 

Section 2.03           Denominations; Provisions for
Payment.

 

Two Officers shall sign the Securities for the
Company by manual or facsimile signature.

 

If an Officer whose signature is on a Security no
longer holds that office at the time the Security is authenticated, the
Security shall nevertheless be valid.

 

The Trustee shall authenticate Securities for
original issue in the aggregate principal amount up to $400,000,000 aggregate
principal amount upon receipt by the Trustee of a Company Order. Such Company
Order may authorize authentication and delivery pursuant to oral or electronic
instructions from the Company or its duly authorized agent or agents, which
oral instructions shall be promptly confirmed in writing. Each Security shall
be dated the date of its authentication unless otherwise provided by a Board
Resolution, a supplemental indenture hereto or an Officers’ Certificate.

 

Section 2.04           Conversion Agent.

 

The
Company shall maintain an office or agency where Securities of such Series may
be presented or surrendered for payment (“Paying
Agent”), where the Securities may be surrendered for
registration of transfer or exchange (the Security Registrar) and where notices
and demands to or upon the Company in respect of the Securities and this
Indenture may be served (“Service Agent”).
The Security Registrar shall keep a register with respect to the Securities and
to their transfer and exchange. The Company will give prompt written notice to
the Trustee of the name and address, and any change in the name or address, of
each Security Registrar, Paying Agent or Service Agent. If at any time the
Company shall fail to maintain any such required Security Registrar, Paying
Agent or Service Agent or shall fail to furnish the Trustee with the name and
address thereof, such presentations, surrenders, notices and demands may be
made or served at the Corporate Trust Office of the Trustee, and the Company
hereby appoints the Trustee as its agent to receive all such presentations,
surrenders, notices and demands.

 

The
Company may also from time to time designate one or more co-registrars,
additional paying agents or additional service agents 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 obligations to maintain a Security Registrar, Paying Agent and Service
Agent in each place for the Securities for such purposes. The Company will give
prompt written notice to the Trustee of any such designation or rescission and
of any change in the name or address of any such co-registrar, additional
paying agent or additional service agent. The term 

 

11

 

“Security
Registrar” includes any co-registrar; the term “Paying Agent” includes any
additional paying agent; and the term “Service Agent” includes any additional
service agent.

 

The
Company hereby appoints the Trustee the initial Security Registrar, Paying
Agent and Service Agent for the Securities unless another Security Registrar,
Paying Agent or Service Agent, as the case may be, is appointed prior to the
time the Securities are first issued.

 

The
rights, privileges, protections, immunities and benefits given to the Trustee
under this Indenture including, without limitation, its right to be
indemnified, are extended to, and shall be enforceable by, the Trustee in each
of its capacities hereunder, and each Agent acting hereunder.

 

The
Company shall maintain an office or agency where Securities may be presented
for conversion (the “Conversion Agent”).
The Company hereby initially designates the Trustee as the Conversion Agent.
The Company further designates the office of the Trustee’s drop agent in New
York City (U.S. Bank National Association, 100 Wall Street, New York, New York
10005) (the “Drop Agent’s Office”)
as its office in The City of New York where Securities may be:

 

(1) presented
or surrendered for payment;

 

(2) surrendered
for registration of transfer or exchange; or

 

(3) surrendered
for conversion;

 

and
where notices and demands to or upon the Company in respect of the Securities
and this Indenture may be served.

 

The
Company may at any time and from time to time vary or terminate the appointment
of any such office or appoint any additional offices for any or all of such
purposes; provided, however, that
until all of the Securities have been delivered to the Trustee for
cancellation, or moneys sufficient to pay the principal of and premium, if any,
and interest, including Special Interest, if any, on the Securities have been
made available for payment and either paid or returned to the Company pursuant
to the provisions of Section 11.05 of the Base Indenture, the Company will
maintain in The City of New York an office or agency where Securities may be
presented or surrendered for payment, where Securities may be surrendered for
registration of transfer or exchange, where Securities may be surrendered for
conversion and where notices and demands to or upon the Company in respect of
the Securities and this Indenture may be served. The Company will give prompt
written notice to the Trustee, and notice to the Holders, of the appointment or
termination of any such agents and of the location and any change in the
location of any such office or agency.

 

If
at any time the Company shall fail to maintain any such required office or
agency in The City of New York, or shall fail to furnish the Trustee with the
address thereof, presentations and surrenders may be made at, and notices and
demands may be served on, the Drop Agent’s Office.

 

The
Company may also from time to time designate one or more Conversion Agents and
from time to time rescind such designations. The Company will give prompt
written notice to the 

 

12

 

Trustee
of any such designation or rescission and of any change in the name or address
of such Conversion Agent.

 

The
rights, privileges, protections, immunities and benefits given to the Trustee
under the Indenture and this Indenture, including, without limitation, its
right to be indemnified, are extended to, and shall be enforceable by, the
Trustee in each of its capacities hereunder, and each Conversion Agent or other
Agent acting hereunder.

 

Section 2.05           Conversion Agent to Hold Shares in
Trust.

 

The
Company shall require each Conversion Agent other than the Trustee to agree in
writing that the Conversion Agent will hold in trust for the benefit of Holders
or the Trustee all shares of Common Stock held by the Conversion Agent for the
delivery of Common Stock when due upon conversion, and will notify the Trustee
in writing of any default by the Company in making any such delivery. While any
such default continues, the Trustee may require a Conversion Agent to deliver
all shares of Common Stock held by it to the Trustee. The Company at any time
may require a Conversion Agent to pay all money held by it to the Trustee. Upon
such acknowledgement by the Trustee of its receipt of any such payment, the
Conversion Agent (if other than the Company or a Subsidiary) shall have no
further liability for such money. If the Company or a Subsidiary acts as
Conversion Agent, it shall segregate and hold in a separate trust fund for the
benefit of the Holders all shares held by it as Conversion Agent. Upon any
bankruptcy or reorganization proceedings relating to the Company, the Trustee
shall serve as Conversion Agent for the Securities.

 

Section 2.06           Global Securities.

 

(a)  Subject to the
provisions of Section 2.06(d), the registered Holder may grant proxies and
otherwise authorize any Person, including Agent Members (as defined in Section 2.06(d))
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.

 

(b)  In the event of
the occurrence of any of the events specified in Section 2.11(c) of
the Base Indenture, the Company will promptly make available to the Trustee a
reasonable supply of certificated Securities in definitive, fully registered
form, without interest coupons.

 

(c)  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 or 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.

 

13

 

(d)  At such time as
all interests in a Global Security have been repurchased, converted, cancelled
or exchanged for Securities in certificated form, such Global Security shall,
upon receipt thereof, be cancelled by the Trustee in accordance with standing
procedures and instructions existing between the Depositary and the Securities
Custodian, subject to Section 2.08 of the Base Indenture. At any time
prior to such cancellation, if any interest in a Global Security is
repurchased, converted, cancelled or exchanged for Securities in certificated
form, the principal amount of such Global Security shall, in accordance with
the standing procedures and instructions existing between the Depositary and
the Securities Custodian, be appropriately reduced, and an endorsement shall be
made on such Global Security, by the Trustee or the Securities Custodian, at
the direction of the Trustee, to reflect such reduction.

 

Section 2.07           References to Interest and Premium.

 

For
the avoidance of doubt, references to “interest” in this Indenture include
Special Interest and references to “premium” in this Indenture include any
applicable Additional Payment upon Provisional Redemption, in each case except
as the context otherwise requires.

 

Section 2.08           Outstanding Securities.

 

This
Section 2.08 hereby replaces and supersedes, solely with respect to the
3.35% Convertible Senior Subordinated Notes due 2015, the definition of “Outstanding”
in Section 1.01 of the Base Indenture and applies to use of the word “outstanding”
in this Indenture whether upper-case or lower-case, unless otherwise specified
herein or the context otherwise requires.

 

The
Securities outstanding at any time are all the Securities authenticated by the
Trustee except for those canceled by it, those delivered to it for
cancellation, those reductions in the interest on a Global Security effected by
the Trustee in accordance with the provisions hereof and those described in
this Section 2.08 as not outstanding.

 

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

 

If
the Paying Agent (other than the Company, a Subsidiary or an Affiliate of any
thereof) holds on the Maturity of the Securities money sufficient to pay such
Securities payable on that date, then on and after that date such Securities
cease to be outstanding and interest on them ceases to accrue.

 

A
Security does not cease to be outstanding because the Company or an Affiliate
holds the Security.

 

In
determining whether the Holders of the requisite principal amount of
outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, the principal amount of a
Security that shall be deemed to be outstanding for such purposes shall be the
amount of the principal thereof that would be due and payable as of the date of
such determination upon a declaration of acceleration of the Maturity thereof
pursuant to Section 8.02.

 

14

 

Section 2.09           Treasury Securities.

 

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

 

Section 2.10           CUSIP Numbers.

 

The
Company in issuing the Securities may use “CUSIP” numbers (if then generally in
use), and, if so, the Trustee shall use “CUSIP” numbers in notices of
redemption as a convenience to Holders; provided
that any such notice may state that no representation is made as to
the correctness of such numbers either as printed on the Securities or as
contained in any notice of a redemption and that reliance may be placed only on
the other elements of identification printed on the Securities, and any such
redemption shall not be affected by any defect in or omission of such numbers.

 

Article 3

Redemption and Repurchase of Securities

 

Section 3.01           Company’s Right to Redeem.

 

(a) Provisional Redemption.  Prior to October 1, 2013, the Securities
will be subject to redemption at the option of the Company, in whole or in
part, upon notice to Holders as provided in Section 3.04, at a Redemption
Price equal to 100% of the principal amount of the Securities to be redeemed; provided that such right may be exercised
only if the Closing Price of the Common Stock has exceeded 130% of the
applicable Conversion Price (as determined pursuant to the applicable Conversion
Rate) for at least 20 Trading Days within a period of 30 consecutive Trading
Days ending on the Trading Day prior to the Notice Date.  Upon any redemption pursuant to this Section 3.01(a),
the Company shall make an additional payment (the “Additional
Payment upon Provisional Redemption”)
with respect to the Securities called for redemption to Holders of record
thereof on the Notice Date in an amount equal to $100.50 per $1,000 principal
amount of Securities, less the amount of any interest paid on such Securities
from their issuance.  On the redemption
date (the “Redemption Date”) set forth in the Redemption Notice in respect of any redemption
pursuant to this Section 3.01(a), the Company shall make the Additional
Payment upon Provisional Redemption in respect of all Securities called for
redemption, including any Securities submitted for conversion after the Notice
Date and before the Redemption Date.

 

The
Company may, at its option, pay the Additional Payment upon Provisional
Redemption in shares of Common Stock in lieu of cash, so long as (i) the
Common Stock is then listed on a national securities exchange and (ii) the
Company registers the delivery of such Common Stock as payment under the
Securities Act and applicable state securities laws, in each case to the extent
required in order to deliver unrestricted Common Stock.  The number of shares of Common Stock
deliverable to a Holder in lieu of cash as an Additional Payment upon 

 

15

 

Provisional
Redemption shall be equal to the cash amount otherwise payable divided by 98%
of the 5-Day Volume-Weighted Average Price of a share of the Common Stock on
the Notice Date.  The Company shall pay
cash in lieu of fractional shares (in an amount determined by multiplying the
number of fractional shares otherwise deliverable by the 5-Day Volume-Weighted
Average Price of the Common Stock on the Notice Date) of Common Stock that
would otherwise be deliverable in the event the Company elects to deliver
Common Stock pursuant to this paragraph. 
If the conditions hereunder to payment of the Additional Payment upon
Provisional Redemption in Common Stock are not satisfied with respect to a
Holder prior to the close of business on the relevant Redemption Date, the
Company shall pay the Additional Payment upon Provisional Redemption in respect
of the Securities of such Holder entirely in cash.  To elect to pay the Additional Payment upon
Provisional Redemption in Common Stock, the Company must include notice of this
election in the Redemption Notice provided in accordance with Section 3.04
hereof, which shall be irrevocable, and may not change such election
thereafter.

 

(b)           Optional Redemption.  On or after October 1, 2013, the
Securities will be subject to redemption at the option of the Company, in whole
or in part, upon notice to Holders as provided in Section 3.04, at a
Redemption Price equal to a percentage
of the principal amount of the Securities to be redeemed set forth below, plus
accrued and unpaid interest, if any, to but excluding the Redemption Date.

 

	
  From and after

  	
   

  	
  Redemption

  Price

  	
   

  
	
  October 1, 2013

  	
   

  	
  101.34

  	
  %

  
	
  October 1, 2014

  	
   

  	
  100.67

  	
  %

  

 

(c)           If a Redemption Date occurs after a Regular Record Date or
a Special Record Date but on or prior to the corresponding Interest Payment
Date or Defaulted Interest payment date, the Company will pay the applicable
interest payment to the record Holder on the Regular Record Date or Special
Record Date corresponding to such Interest Payment Date or Defaulted Interest
payment date (and, in the case of any redemption pursuant to Section 3.01(b),
such payment shall be in lieu of paying interest in connection with such
redemption).

 

Section 3.02           Notices to Trustee.

 

If
the Company elects to redeem Securities pursuant to the provisions of paragraph 5
of the Securities and Section 3.01 hereof, it shall furnish to the
Trustee, at least 30 days but not more than 60 days before a Redemption Date
(unless a shorter period shall be satisfactory to the Trustee), an Officers’
Certificate setting forth (i) the Section of this Indenture pursuant
to which the redemption shall occur (ii) the information described in
clauses (1)-(11) of Section 3.04 hereof (which amended and superseded Section 3.02
of the Base Indenture).

 

Section 3.03           Selection of Securities To Be
Redeemed.  If less than all the
Securities are to be redeemed, the Trustee shall select the Securities to be
redeemed on a pro rata basis, by lot or by any other method that the Trustee
considers fair and appropriate. The Trustee shall make the selection not more
than 60 days and not less than 30 days before the Redemption Date 

 

16

 

from Securities outstanding and not previously
called for redemption. The Trustee may select for redemption a portion of the
principal of any Securities that has a denomination larger than $1,000.
Securities and portions thereof will be redeemed in the amount of $1,000 or
integral multiples of $1,000.

 

Provisions
of this Indenture that apply to Securities called for redemption also apply to
portions of Securities called for redemption. The Trustee shall notify the
Company promptly of the Securities or portions of Securities to be called for
redemption.

 

If
any Security selected for partial redemption is converted in part after such
selection, the converted portion of such Security shall be deemed (so far as
possible) to be the portion to be selected for redemption. The Securities (or
portion thereof) so selected shall be deemed duly selected for redemption for
all purposes hereof, notwithstanding that any such Security is converted in
whole or in part before the mailing of the Redemption Notice. Upon any
redemption of less than all the Securities, the Company and the Trustee may
treat as outstanding any Securities surrendered for conversion during the
period of 15 days immediately preceding the mailing of a notice of redemption
and need not treat as outstanding any Security authenticated and delivered
during such period in exchange for the unconverted portion of any Security
converted in part during such period.

 

In
the event of any redemption of less than all the Securities, the Company will
not be required to (i) issue or register the transfer or exchange of any
Security during a period of 15 days immediately preceding the mailing of a
notice of redemption for such Securities for redemption, or (ii) register
the transfer or exchange of any Security so selected for redemption, in whole
or in part, except the unredeemed portion of any Security being redeemed in
part, in which case the Company will execute and the Trustee will authenticate
and deliver to the Holder a new Security or Securities equal in principal
amount to the unredeemed portion of the Security surrendered.

 

Section 3.04           Notice of Redemption.

 

This
Section 3.04 hereby replaces and supersedes, solely with respect to the
3.35% Convertible Senior Subordinated Notes due 2015, Section 3.02 of the
Base Indenture.

 

At
least 30 days but not more than 60 days before a Redemption Date, the Company
shall mail by first class mail a notice of redemption (a “Redemption Notice”) to each Holder
whose Securities are to be redeemed, at such Holder’s registered address.

 

The
notice shall identify the Securities to be redeemed and shall state:

 

(1) the
Redemption Date;

 

(2) the
Redemption Price and, if redemption is made pursuant to Section 3.01(b),
the amount of any accrued and unpaid interest payable on the Redemption Date;

 

(3) if
any Security is being redeemed in part, the portion of the principal amount of
such Security to be redeemed and that, after the Redemption Date, upon
surrender of such Security, a 

 

17

 

new
Security or Securities in principal amount equal to the unredeemed portion will
be issued in the name of the Holder thereof;

 

(4) that
Securities called for redemption must be surrendered to the Paying Agent to
collect the Redemption Price and, if redemption is made pursuant to Section 3.01(b),
any accrued and unpaid interest;

 

(5) that
interest on Securities called for redemption and for which funds have been set
apart for payment, ceases to accrue on and after the Redemption Date (unless
the Company defaults in the payment of the Redemption Price or (a) if
redemption is made pursuant to Section 3.01(a), the Additional Payment
upon Provisional Redemption or (b) if redemption is made pursuant to Section 3.01(b),
any accrued and unpaid interest);

 

(6) the
aggregate principal amount of Securities (if less than all) that are being
redeemed;

 

(7) the
CUSIP number of the Securities (provided
that any such notice may state that no representation is made as to the
correctness or accuracy of the CUSIP numbers printed in the notice or on the
Securities and that reliance may be placed only on the other identification
numbers printed on the Securities);

 

(8) the
name and address of the Paying Agent;

 

(9) that
Securities called for redemption may be converted at any time prior to the
close of business on the last Trading Day immediately preceding the Redemption
Date and if not converted prior to the close of business on such date, the
right of conversion will be lost;

 

(10) that
in the case of Securities or portions thereof called for redemption on a date
that is also an Interest Payment Date or a Defaulted Interest payment date, the
interest due on such date shall be paid to the Holder of such Security at the
close of business on the relevant Regular Record Date or Special Record Date;
and

 

(11)
if redemption is made pursuant to Section 3.01(a), the amount of the
Additional Payment upon Provisional Redemption and whether the Company will
make payment of the Additional Payment upon Provisional Redemption in cash or
in shares of Common Stock.

 

The
notice, if mailed in the manner herein provided, shall be conclusively presumed
to have been given, whether or not the Holder receives such notice. In any
case, failure to give such notice by mail or any defect in the notice to any
Holder designated for redemption as a whole or in part shall not affect the
validity of the proceedings for the redemption of any Security.

 

At
the Company’s request, the Trustee shall give notice of redemption in the
Company’s name and at the Company’s expense.

 

Section 3.05           Effect of Notice of Redemption.  Once notice of redemption is mailed,
Securities called for redemption become due and payable on the Redemption Date
at the Redemption Price set forth in the Security.

 

18

 

Section 3.06           Deposit and Payment of Redemption
Price.

 

Section 3.03(a) of
the Base Indenture shall continue in full force and effect; provided, however,
that Section 3.03(a) of the Base Indenture shall not apply to
Securities or portions thereof called for redemption that are submitted for
conversion pursuant to Article 4 of this Indenture prior to the applicable
Redemption Date.

 

On
or before 11:00 a.m. New York City time on the Redemption Date, the
Company shall deposit with the Trustee or with the Paying Agent money in
immediately available funds sufficient to pay the Redemption Price of and
accrued interest, if any, on all Securities to be redeemed on that date. The
Trustee or the Paying Agent shall return to the Company any money not required
for that purpose.

 

On
and after the Redemption Date, unless the Company shall default in the payment
of the Redemption Price or, in the case of redemption pursuant to Section 3.01(a),
the Additional Payment upon Provisional Redemption or, in the case of
redemption pursuant to Section 3.01(b), any accrued and unpaid interest,
interest will cease to accrue on the principal amount of the Securities or
portions thereof called for redemption and for which funds have been set apart
for payment, and such Securities shall cease after the close of business on the
Business Day immediately preceding the Redemption Date to be convertible into
Common Stock and, except as provided in this Section 3.06, to be entitled
to any benefit or security under the Indenture, and the Holders thereof shall
have no right in respect of such Securities or portions thereof except the
right to receive the Redemption Price thereof and, in the case of redemption
pursuant to Section 3.01(a), the Additional Payment upon Provisional
Redemption or, in the case of redemption pursuant to Section 3.01(b),
accrued but unpaid interest to (but excluding) the Redemption Date. In the case
of Securities or portions thereof redeemed on a Redemption Date which is after
a Regular Record Date and on or prior to the corresponding Interest Payment
Date, the interest due on such date shall be paid to the Person in whose name
the Security is registered at the close of business on the relevant Regular
Record Date.  For the avoidance of doubt,
the Company shall not be obligated to make duplicative payments in respect of
such interest and, in the case of redemption pursuant to Section 3.01(a),
accrued interest paid to the Holder of a Security on a Regular Record Date
pursuant to the preceding sentence will be excluded in calculating the
Additional Payment upon Provisional Redemption and, in the case of redemption
pursuant to Section 3.01(b), interest paid to the Holder of a Security on
a Regular Record Date pursuant to the preceding sentence shall not also be
payable in respect of such redemption.

 

Section 3.07           Repurchase of Securities at Option
of the Holder upon a Fundamental Change.

 

(a)   If a Fundamental Change occurs prior to the Final Maturity Date, each
Holder of a Security shall have the right, at the option of the Holder, to
require the Company to repurchase for cash all or any portion of the Securities
of such Holder equal to $1,000 principal amount (or an integral multiple
thereof) at the Fundamental Change Repurchase Price, on the date specified by
the Company that is 45 days after the date of the Fundamental Change Company
Notice pursuant to Section 3.07(b) (the “Fundamental
Change Repurchase Date”).

 

(b)  As promptly as
practicable following the date on which the Company publicly announces a
Fundamental Change, but in no event less than 20 days prior to the anticipated
effective date of a Fundamental Change, the Company shall mail a written notice
of the 

 

19

 

Fundamental Change and of the resulting repurchase
right to the Trustee, Paying Agent and to each Holder (and to beneficial owners
as required by applicable law) (the “Fundamental Change Company Notice”). The Fundamental Change Company Notice shall include the form of a
Fundamental Change Repurchase Notice to be completed by the Holder and shall
state:

 

(1) the
events causing such Fundamental Change;

 

(2) the
date (or expected date) of such Fundamental Change;

 

(3) the
last date by which the Fundamental Change Repurchase Notice must be delivered
to elect the repurchase option pursuant to this Section 3.07;

 

(4) the
Fundamental Change Repurchase Date;

 

(5) the
Fundamental Change Repurchase Price;

 

(6) the
Holder’s right to require the Company to purchase the Securities;

 

(7) the
name and address of each Paying Agent and Conversion Agent;

 

(8) the
then-effective Conversion Rate and any adjustments to the Conversion Rate resulting
from such Fundamental Change;

 

(9) whether
a Make-Whole Premium shall be payable by the Company upon conversion;

 

(10) the
procedures that the Holder must follow to exercise rights under Article 4;

 

(11)
the procedures that the Holder must follow to exercise rights under this Section 3.07;

 

(12)
that, unless the Company fails to pay such Fundamental Change Repurchase Price,
Securities covered by any Fundamental Change Repurchase Notice will cease to be
outstanding and interest, including Special Interest, if any, will cease to
accrue on and after the Fundamental Change Repurchase Date, subject to Section 3.09
hereof; and

 

(13)
the CUSIP number of the Securities.

 

At
the Company’s written request, the Trustee shall give such Fundamental Change
Company Notice in the Company’s name and at the Company’s expense; provided that, in all cases, the Company
makes such request at least three (3) Business Days prior to the date by
which such Fundamental Change Company Notice must be given to the Holders in
accordance with this Section 3.07; provided,
further, that the text of such Fundamental Change Company Notice
shall be prepared by the Company. In connection with the delivery of the
Fundamental Change Company Notice to the Holders, the Company shall disseminate
a press release through Dow Jones & Company, Inc. or Bloomberg
Business News, or publish a notice containing substantially the same
information that is required in the Fundamental Change Company Notice in a
newspaper of general circulation in The City of New York, or publish
information on a website of the Company or through such other public medium the
Company may use at that time. If any of the Securities is in the form of a
Global Security, then the Company shall modify 

 

20

 

such
notice to the extent necessary to accord with the Applicable Procedures
relating to the purchase of Global Securities.

 

No
failure of the Company to give the foregoing notices or defect therein shall
limit any Holder’s right to exercise its right to cause the Company to
repurchase such Holder’s Securities pursuant to this Section 3.07.

 

(c)  A Holder may
exercise its rights specified in Section 3.07(a) upon delivery of a
written notice (which shall be in substantially the form included in Exhibit A
under the heading “Fundamental Change Repurchase Notice” and which may be
delivered by letter, overnight courier, hand delivery, facsimile transmission
or in any other written form and, in the case of Global Securities, may be
delivered electronically or by other means in accordance with the Depositary’s
Applicable Procedures) of the exercise of such rights (a “Fundamental
Change Repurchase Notice”)
to the Paying Agent at any time prior to the close of business on the 30th day
following the date of the Fundamental Change Company Notice, subject to
extension to comply with applicable law.

 

(1) The
Fundamental Change Repurchase Notice shall state: (A) the certificate
number (if such Security is held other than in global form) of the Security which
the Holder will deliver to be repurchased (or, if the Security is held in
global form, any other items required to comply with the Applicable
Procedures), (B) the portion of the principal amount of the Security which
the Holder will deliver to be repurchased and, (C) that such Security
shall be repurchased as of the Fundamental Change Repurchase Date pursuant to
the terms and conditions specified in the Securities and in this Indenture.

 

(2) The
delivery of a Security for which a Fundamental Change Repurchase Notice has
been timely delivered to any Paying Agent on or after the Fundamental Change
Repurchase Date (together with all necessary endorsements) at the office of
such Paying Agent shall be a condition to the receipt by the Holder of the
Fundamental Change Repurchase Price therefor.

 

(3) The
Company shall only be obliged to purchase, 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
purchase of all of a Security also apply to the purchase of such portion of
such Security).

 

(4) A
Paying Agent shall promptly notify the Company of the receipt by it of any
Fundamental Change Repurchase Notice.

 

(5) Anything
herein to the contrary notwithstanding, in the case of Global Securities, any
Fundamental Change Repurchase Notice may be delivered and such Securities may
be surrendered or delivered for purchase in accordance with the Applicable
Procedures as in effect from time to time.

 

(6) A
Fundamental Change Repurchase Notice shall be irrevocable, except that the
right of the Holder to convert the Securities that are the subject of the
Fundamental Change Repurchase Notice shall continue until the close of business
on the second Business Day immediately preceding the Fundamental Change
Repurchase Date.

 

21

 

(d)  The Company
shall deposit cash, at the time and in the manner as provided in Section 3.09,
sufficient to pay the aggregate Fundamental Change Repurchase Price of all
Securities to be purchased pursuant to this Section 3.07.

 

Section 3.08           Effect of Fundamental Change
Repurchase Notice.

 

Upon
receipt by any Paying Agent of a properly completed Fundamental Change
Repurchase Notice from a Holder, the Holder of the Security in respect of which
such Fundamental Change Repurchase Notice was given shall thereafter be
entitled to receive the Fundamental Change Repurchase Price with respect to
such Security, subject to the occurrence of the Fundamental Change Effective
Date. Such Fundamental Change Repurchase Price shall be paid to such Holder
promptly, but no later than two Business Days, following the later of (1) the
Fundamental Change Repurchase Date (provided
that the conditions in Section 3.07 have been satisfied), and (2) the
time of delivery of such Security to a Paying Agent by the Holder thereof in
the manner required by Section 3.07(c).

 

Section 3.09           Deposit of Fundamental Change
Repurchase Price.

 

(a)  On or before
10:00 a.m. New York City time on the Business Day following the applicable
Fundamental Change Repurchase Date, the Company shall deposit with the Paying
Agent (or, if the Company or an Affiliate of the Company is acting as the
Paying Agent, shall segregate and hold in trust as provided in Section 4.03
of the Base Indenture) an amount of money (in immediately available funds if
deposited on or after such Fundamental Change Repurchase Date) sufficient to
pay the aggregate Fundamental Change Repurchase Price of all the Securities or
portions thereof that are to be purchased as of the Fundamental Change
Repurchase Date.

 

(b)  If a Paying
Agent holds on the Business Day following the Fundamental Change Repurchase
Date, in accordance with the terms hereof, money sufficient to pay the
Fundamental Change Repurchase Price of any Security for which a Fundamental
Change Repurchase Notice has been tendered and not withdrawn in accordance with
this Indenture then, immediately following the applicable Fundamental Change
Repurchase Date, whether or not the Security is delivered to the Paying Agent,
each such Security will cease to be outstanding, interest, including Special
Interest, if any, shall cease to accrue, and the rights of the Holder in
respect of the Security shall terminate (other than the right to receive the
Fundamental Change Repurchase Price upon delivery of the Security as
aforesaid).

 

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

 

Section 3.10           Repayment to the Company.

 

To
the extent that the aggregate amount of cash deposited by the Company pursuant
to Section 3.09 exceeds the aggregate Fundamental Change Repurchase Price
of the Securities or 

 

22

 

portions
thereof that the Company is obligated to purchase, then promptly after the
Fundamental Change Repurchase Date the Paying Agent shall return any such
excess cash to the Company.

 

Section 3.11           Securities Purchased in Part.

 

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

 

Section 3.12           Compliance with Securities Laws
upon Purchase of Securities.

 

In
connection with any offer to purchase Securities under Section 3.07, the
Company shall (a) comply with Rule 13e-4 and Rule 14e-1 (or any
successor to either such Rule), and any other tender offer rules, if
applicable, under the Exchange Act, (b) file the related Schedule TO (or
any successor or similar schedule, form or report) if required under the
Exchange Act, and (c) otherwise comply with all federal and state
securities laws in connection with such offer to purchase or purchase of
Securities, all so as to permit the rights of the Holders and obligations of
the Company under Sections 3.07 through 3.10 to be exercised in the time and in
the manner specified therein. To the extent that compliance with any such laws,
rules and regulations would result in a conflict with any of the terms
hereof, this Indenture is hereby modified to the extent required for the
Company to comply with such laws, rules and regulations.

 

Section 3.13           Purchase of Securities in Open
Market.

 

The
Company shall surrender any Security repurchased by the Company pursuant to
this Article 3 to the Trustee for cancellation. Any Securities surrendered
to the Trustee for cancellation may not be reissued or resold by the Company
and will be cancelled promptly in accordance with Section 2.08 of the Base
Indenture. The Company may purchase Securities in the open market, by tender at
any price or pursuant to private agreements.

 

Article 4

Conversion

 

Section 4.01           Conversion Privilege and
Conversion Rate.

 

(a)  The conversion
rights pursuant to this Article 4 shall commence on the Issue Date of the
Securities and expire at the close of business on the second Business Day
immediately preceding the Final Maturity Date, subject, in the case of
conversion of any Global Security, to any Applicable Procedures. If a Security
is submitted or presented for purchase or redemption pursuant to Article 3,
such conversion right shall terminate at the close of business on the second
Business Day immediately preceding the Fundamental Change Repurchase Date or Redemption
Date for such Security (unless the Company shall fail to make the Fundamental
Change Repurchase Price or Redemption Price payment when due in accordance with
Article 3, in which 

 

23

 

case the conversion right shall terminate at the
close of business on the date such failure is cured and such Security is
purchased or redeemed).

 

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

 

(c)  A Holder of
Securities is not entitled to any rights of a holder of Common Stock until such
Holder has converted its Securities into Common Stock, and only to the extent
such Securities are deemed to have been converted into Common Stock pursuant to
this Article 4.

 

(d)  The Conversion
Rate shall be adjusted in certain instances as provided in Section 4.01(e) and
Section 4.06.

 

(e)  If there shall
have occurred a transaction described in clause (i) or (ii) of the
definition of a Change in Control, the Company shall pay a “Make-Whole
Premium” to the Holders of the
Securities who convert their Securities during the period beginning 20 days
before the anticipated Fundamental Change Effective Date until the close of
business on the Business Day immediately preceding the Fundamental Change
Repurchase Date by increasing the Conversion Rate for such Securities. The
number of additional shares of Common Stock per $1,000 principal amount of
Securities constituting the Make-Whole Premium shall be determined by reference
to the table (the “Make-Whole Table”) set forth below in this Section 4.01(e),
based on the Fundamental Change Effective Date of such Fundamental Change and
the Stock Price; provided that if
the Stock Price or Fundamental Change Effective Date are not set forth on the
Make-Whole Table: (i) if the actual Stock Price on the Fundamental Change
Effective Date is between two Stock Prices on the table or the actual
Fundamental Change Effective Date is between two Fundamental Change Effective
Dates on the table, the Make-Whole Premium will be determined by a
straight-line interpolation between the Make-Whole Premiums set forth for the
two Stock Prices and the two Fundamental Change Effective Dates on the
Male-Whole Table based on a 365-day year, as applicable, (ii) if the Stock
Price on the Fundamental Change Effective Date exceeds $180.00 per share,
subject to adjustment as set forth herein, no Make-Whole Premium will be paid,
and (iii) if the Stock Price on the Fundamental Change Effective Date is
less than $36.17 per share, subject to adjustment as set forth herein, no
Make-Whole Premium will be paid. If Holders of the Common Stock receive only
cash in the transaction, the Stock Price shall be the cash amount paid per
share of the Common Stock in connection with the Fundamental Change. Otherwise,
the Stock Price shall be equal to the average Closing Price of the Common Stock
over the 15 Trading Day period ending on the Trading Day immediately preceding,
and excluding, the applicable Fundamental Change Effective Date.

 

Make-Whole Premium Upon a Fundamental Change (Number of Additional
Shares)

 

	
   

  	
   

  	
  Effective Date

  	
   

  
	
  Stock
  Price on

  Effective Date

  	
   

  	
  September 28,

  2010

  	
   

  	
  October 1,

  2011

  	
   

  	
  October 1,

  2012

  	
   

  	
  October 1,

  2013

  	
   

  	
  October 1,

  2014

  	
   

  	
  October 1,

  2015

  	
   

  
	
  $

  	
  36.17

  	
   

  	
  7.1678

  	
   

  	
  7.1678

  	
   

  	
  7.1678

  	
   

  	
  7.1678

  	
   

  	
  7.1678

  	
   

  	
  7.1678

  	
   

  
	
  $

  	
  40.00

  	
   

  	
  5.5972

  	
   

  	
  5.2650

  	
   

  	
  4.8010

  	
   

  	
  4.5206

  	
   

  	
  4.5206

  	
   

  	
  4.5206

  	
   

  
	
  $

  	
  45.00

  	
   

  	
  4.1374

  	
   

  	
  3.6841

  	
   

  	
  3.0411

  	
   

  	
  1.7428

  	
   

  	
  1.7428

  	
   

  	
  1.7428

  	
   

  
	
  $

  	
  48.83

  	
   

  	
  3.3316

  	
   

  	
  2.8316

  	
   

  	
  2.1407

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  
	
  $

  	
  60.00

  	
   

  	
  1.9064

  	
   

  	
  1.3715

  	
   

  	
  0.7815

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  
	
  $

  	
  70.00

  	
   

  	
  1.3264

  	
   

  	
  0.8946

  	
   

  	
  0.4424

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  
	
  $

  	
  80.00

  	
   

  	
  1.0759

  	
   

  	
  0.7263

  	
   

  	
  0.3583

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  
	
  $

  	
  100.00

  	
   

  	
  0.7836

  	
   

  	
  0.5411

  	
   

  	
  0.2700

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  
	
  $

  	
  140.00

  	
   

  	
  0.5050

  	
   

  	
  0.3561

  	
   

  	
  0.1776

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  
	
  $

  	
  180.00

  	
   

  	
  0.3581

  	
   

  	
  0.2561

  	
   

  	
  0.1264

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  

 

24

 

The
Stock Prices set forth in the first column of the Make-Whole Table will be
adjusted as of any date on which the Conversion Rate of the Securities is
adjusted other than an adjustment pursuant to the Make-Whole Premium pursuant
to this Section 4.01(e). The adjusted Stock Prices will equal the Stock
Prices applicable immediately prior to such adjustment multiplied by a
fraction, the numerator of which is the Conversion Rate immediately prior to
the adjustment giving rise to the Stock Price adjustment and the denominator of
which is the Conversion Rate as so adjusted. The number of additional shares
set forth in the Make-Whole Table will be adjusted in the same manner as the
Conversion Rate as set forth in Section 4.06 hereof.

 

Notwithstanding
the foregoing paragraph, in no event will the total number of shares of Common
Stock issuable upon conversion of a Security exceed 27.6472 per $1,000
principal amount, subject to proportional adjustment in the same manner as the
Conversion Rate as set forth in clauses (1) through (7) of Section 4.06(a) hereof.

 

The
Make-Whole Premium will be in addition to, and not in substitution for, any
cash, securities or other assets otherwise due to Holders of the Securities
upon the conversion of a Security (including any Additional Payment upon
Provisional Redemption, if applicable).

 

(f)  By delivering
the number of shares of Common Stock issuable on conversion to the Trustee plus
a cash payment for a fractional share, the Company will be deemed to have
satisfied its obligation to pay the principal amount of the Securities so
converted and its obligation to pay accrued and unpaid interest, including
Special Interest, if any, attributable to the period from the most recent
Interest Payment Date through the Conversion Date (which amount will be deemed
cancelled, extinguished and forfeited).

 

Additional
shares of Common Stock constituting the Make-Whole Premium will be delivered to
the converting Holder upon the later of (i) the settlement of conversion
pursuant to Section 4.02 and (ii) the Fundamental Change Effective
Date.

 

(g)  A conversion of
the Securities by a Holder will be deemed for purposes of Section 4.01(e) to
be “in connection with” certain Fundamental Change transactions if the
conversion notice is received by the Conversion Agent on or subsequent to the
date 20 calendar days prior to the date announced by the Company as the
anticipated Fundamental Change Effective Date of the related Fundamental Change
but before the close of business on the Business Day immediately preceding the
related Fundamental Repurchase Date. The Company will notify Holders of
Securities of the anticipated Fundamental Change Date as promptly as
practicable following the date the Company publicly announces such Fundamental
Change, but in no event less than 20 days prior to such date.

 

25

 

Section 4.02           Conversion Procedure.

 

(a)  To convert a
Security, a Holder must (1) complete and manually sign the conversion
notice on the back of the Security and deliver such notice to the Conversion
Agent, (2) surrender the Security to the Conversion Agent, which shall
become irrevocable upon receipt by the Conversion Agent, (3) furnish
appropriate endorsements and transfer documents if required by the Security
Registrar or the Conversion Agent, (4) pay an amount equal to the
interest, including Special Interest, if any, as required by Section 4.02(c),
and (5) pay all transfer or similar taxes, if required pursuant to Section 4.04.
The date on which the Holder satisfies all of those requirements is the “Conversion
Date.” Upon the conversion of
a Security, the Company will deliver the shares of Common Stock, without
service charge, as promptly as practicable after the Conversion Date, but in no
event later than third Business Days after the Conversion Date. Anything herein
to the contrary notwithstanding, in the case of Global Securities, conversion notices
may be delivered and such Securities may be surrendered for conversion in
accordance with clauses (3), (4) and (5) of this Section 4.02(a) and
the Applicable Procedures as in effect from time to time.

 

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

 

(c)  Holders of
Securities surrendered for conversion (in whole or in part) during the period
from the close of business on any Regular Record Date to the opening of
business on the next succeeding Interest Payment Date will receive the
semi-annual interest and Special Interest, if any, payable on the principal
amount of such Securities being surrendered for conversion on the corresponding
Interest Payment Date notwithstanding the conversion. Upon surrender of any
such Securities for conversion, such Securities shall also be accompanied by
payment in funds to the Conversion Agent acceptable to the Company of an amount
equal to the interest, including Special Interest, if any, payable on such
corresponding Interest Payment Date (but excluding any overdue interest on the
principal amount of such Security so converted that exists at the time such
Holder surrenders such Security for conversion). Notwithstanding the foregoing,
any such Holder which surrenders for conversion any Security (a) with
respect to which the Company has specified a Fundamental Change Repurchase Date
or a Redemption Date, in either case, that is after such Regular Record Date
and on or prior to the next succeeding Interest Payment Date, or (b) after
the last Regular Record Date prior to the Final Maturity Date, in either case,
need not pay the Company an amount equal to the interest, including Special
Interest, if any, on the 

 

26

 

principal amount of such Security so converted at
the time such Holder surrenders such Security for conversion. Except as otherwise
provided in this Section 4.02(c), no payment or adjustment will be made
for accrued interest, including Special Interest, if any, on a converted
Security.

 

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

 

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

 

Section 4.03           Fractional Shares.

 

No
fractional shares of Common Stock shall be issued upon conversion of any
Security or Securities. If more than one Security shall be surrendered for
conversion at one time by the same Holder, the number of full shares which
shall be issued upon conversion thereof shall be computed on the basis of the
aggregate principal amount of the Securities (or specified portions thereof) so
surrendered. In lieu of any fractional share of Common Stock which would
otherwise be issued upon conversion of any Security or Securities (or specified
portions thereof), the Company shall pay a cash adjustment in respect of such
fraction (calculated to the nearest one-100th of a share) in an amount equal to
the same fraction of the Closing Price of the Common Stock as of the Trading
Day preceding the date of conversion.

 

Section 4.04           Taxes on Conversion.

 

Except
as provided in the next sentence, the Company will pay any and all taxes (other
than taxes on income) and duties that may be payable in respect of the issue or
delivery of shares of Common Stock on conversion of Securities pursuant hereto.
A Holder delivering a Security for conversion shall be liable for and will be
required to pay any tax or duty which may be payable in respect of any transfer
involved in the issue and delivery of shares of Common Stock in a name other
than that of the Holder of the Security or Securities to be converted, and no
such issue or delivery shall be made unless the Person requesting such issue
has paid to the Company the amount of any such tax or duty, or has established
to the satisfaction of the Company that such tax or duty has been paid.

 

27

 

Section 4.05           Company to Provide Common Stock.

 

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

 

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

 

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

 

(d)  The Company will
use its best efforts to ensure that the shares of Common Stock to be issued
upon conversion of the Securities will be registered under the Securities Act
of 1933, as amended. In the event that despite the Company’s best efforts it is
unable to deliver shares that have been so registered, upon conversion of the
Securities, the Company may deliver shares of Common Stock that have not been
registered.

 

Section 4.06           Adjustment of Conversion Rate.

 

(a)  The Conversion
Rate shall be adjusted from time to time by the Company, without duplication,
as follows:

 

(1) If
the Company shall pay a dividend or make a distribution to all holders of
outstanding Common Stock in shares of Common Stock, the Conversion Rate in
effect immediately prior to the record date for the determination of
shareholders entitled to receive such dividend or other distribution shall be
increased so that the same shall equal the rate determined by multiplying the
Conversion Rate in effect immediately prior to such record date by a fraction
of which the numerator shall be the sum of the number of shares of Common Stock
outstanding at the close of business on such record date plus the total number
of shares of Common Stock constituting such dividend or other distribution and
of which the denominator shall be the number of shares of Common Stock
outstanding at the close of business on such record date. Such adjustment shall
be made successively whenever any such dividend or distribution is made and
shall become effective immediately after such record date. For the purpose of
this clause (1), the number of shares of Common Stock at any time outstanding
shall not include shares held in the treasury of the Company. The Company will
not pay any dividend or make any distribution on Common Stock held in the
treasury of the Company. If any dividend or distribution of the type described
in this clause 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 as if
such dividend or distribution had not been declared.

 

(2) If
the Company shall subdivide its outstanding Common Stock into a greater number
of shares, or combine its outstanding Common Stock into a smaller number of
shares, the Conversion Rate in effect immediately prior to the day upon which
such subdivision or 

 

28

 

combination
becomes effective shall be, in the case of a subdivision of Common Stock,
proportionately increased and, in the case of a combination of Common Stock,
proportionately reduced. Such adjustment shall be made successively whenever
any such subdivision or combination of the Common Stock occurs and shall become
effective immediately after the date upon which such subdivision or combination
becomes effective.

 

(3) If
the Company shall issue any rights or warrants (other than rights or warrants
referred to in Section 4.06(a)(4)) to all or substantially all holders of
its outstanding Common Stock entitling them to subscribe for or purchase shares
of Common Stock (or securities convertible into or exchangeable for Common
Stock) at a price per share (or having a Conversion Price per share) less than
the Current Market Price per share of Common Stock (as determined in accordance
with clause (8) of this Section 4.06(a)) on the record date for the
determination of shareholders entitled to receive such rights or warrants, the
Conversion Rate in effect immediately prior thereto 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 immediately prior to such record
date by a fraction of which the numerator shall be the number of shares of
Common Stock outstanding at the close of business on such record date plus the
number of additional shares of Common Stock so offered for subscription or
purchase (or into or for which the convertible or exchangeable securities so
offered are convertible or exchangeable) and of which the denominator shall be
the number of shares of Common Stock outstanding at the close of business on
such record date plus the number of shares which the aggregate offering price
of the total number of shares of Common Stock so offered for subscription or
purchase (or the aggregate conversion price of the convertible or exchangeable
securities so offered for subscription or purchase, which shall be determined
by multiplying the number of shares of Common Stock issuable upon conversion or
exchange of such convertible or exchangeable securities by the conversion price
per share of Common Stock pursuant to the terms of such convertible or
exchangeable securities) would purchase at the Current Market Price per share
of Common Stock on such record date. Such adjustment shall be made successively
whenever any such rights or warrants are issued, and shall become effective immediately
after such record date. To the extent that shares of Common Stock (or
securities convertible into or exchangeable for Common Stock) are not delivered
pursuant to such rights or warrants, upon the expiration or termination 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 (or securities convertible into or exchangeable for
Common Stock) actually delivered. If 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 the record date for the determination of
shareholders entitled to receive such rights or warrants had not been fixed. In
determining whether any rights or warrants entitle the shareholders to
subscribe for or purchase shares of Common Stock at a price less than the
Current Market Price per share of Common Stock and in determining the aggregate
offering price of the total number of shares of Common Stock so offered, 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.

 

(4) 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 (other than 

 

29

 

any
dividends or distributions to which Section 4.06(a)(1) applies) or
evidences of its indebtedness, cash or other assets, including securities, but
excluding (x) any rights or warrants referred to in Section 4.06(a)(3),
(y) any stock, securities or other property or assets (including cash)
distributed in connection with a reclassification, change, merger,
consolidation, statutory share exchange, combination, sale, conveyance or lease
to which Section 4.10 hereof applies, and (z) dividends and
distributions paid exclusively in cash (the securities described in foregoing
clauses (x), (y) and (z) hereinafter in this Section 4.06(a)(4) called
the “securities”), then, in each such case, subject to the third succeeding
paragraph of this Section 4.06(a)(4), the Conversion Rate shall be
increased so that the same shall be equal to the rate determined by multiplying
the Conversion Rate in effect immediately prior to the close of business on the
record date (as defined in Section 4.06(a)(8)(C)) with respect to such
distribution by a fraction, the numerator of which shall be the Current Market
Price (determined as provided in Section 4.06(a)(8)) on such date, and the
denominator of which shall be such Current Market Price on such date less the
fair market value (as determined by the Board of Directors (except as set forth
in this Section), whose determination shall be conclusive and set forth in a Board
Resolution) on such date of the portion of the shares of capital stock,
evidences of indebtedness, cash or other assets, including securities, so
distributed applicable to one share of Common Stock (determined on the basis of
the number of shares of the Common Stock outstanding on the record date).

 

Such
increase shall become effective immediately prior to the opening of business on
the day following the record date, or in the case of a Spin-off (as set forth
in this Section), immediately prior to the opening of business on the day
following the last Trading Day of the Measurement Period. However, in the event
that the then fair market value (as so determined) of the portion of the
securities so distributed applicable to one share of Common Stock is equal to
or greater than the Current Market Price on the record date, in lieu of the
foregoing adjustment, adequate provision shall be made so that each Holder
shall have the right to receive upon conversion of a Security (or any portion
thereof) the amount of shares of capital stock, evidences of indebtedness, cash
or other assets, including securities, such Holder would have received had such
Holder converted such Security (or portion thereof) immediately prior to such
record date. In the event that such dividend or distribution is not so paid or
made, the Conversion Rate shall again be adjusted to be the Conversion Rate
which would then be in effect as 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 4.06(a)(4) by reference to the actual or
when issued trading market for any securities comprising all or part of such
distribution, it must in doing so consider the prices in such market over the
same period (the “Reference Period”)
used in computing the Current Market Price pursuant to Section 4.06(a)(8) to
the extent possible, unless the Board of Directors in a Board Resolution
determines in good faith that determining the fair market value during the
Reference Period would not be in the best interest of the Holder.

 

In
the event the Company distributes shares of capital stock of a Subsidiary or
other business unit of the Company, the Conversion Rate will be adjusted, if at
all, so that the same shall be equal to the rate determined by multiplying the
Conversion Rate in effect immediately prior to the close of business on the
record date (as defined in Section 4.06(a)(8)) with respect to such
distribution by a fraction, (i) the numerator of which shall be the
Current Market Price (determined as set forth in this Section) on such date
plus the fair market value on such date of 

 

30

 

the
portion of the shares of capital stock of such Subsidiary or other business
unit of the Company so distributed applicable to one share of Common Stock
(determined on the basis of the number of shares of the Common Stock
outstanding on the record date), and (ii) the denominator of which shall
be such Current Market Price on such date (determined as set forth in this
Section).

 

In
respect of a dividend or other distribution of shares of capital stock of a
class or series, or similar equity interest, of or relating to a Subsidiary or
other business unit of the Company, that are or when issued will be traded or
quoted on any national securities exchange or other market (a “Spin-off”), the fair market value of
the securities to be distributed shall equal the average of the daily Closing
Price of such securities for the 10 consecutive Trading Days commencing on and
including the fifth Trading Day of such securities after the effectiveness of
the Spin-off (the “Measurement Period”)
and the Current Market Price shall be calculated over the same Measurement
Period; provided, however, that
in the event that an underwritten initial public offering of the securities in
the Spin-off occurs simultaneously with the Spin-off, the fair market value of
the securities distributed in the Spin-off shall be the initial public offering
price of such securities and the market price per share of the Common Stock
shall mean the Closing Price for the Common Stock on the same Trading Day.

 

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 (“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 4.06(a)(4) (and
no adjustment to the Conversion Rate under this Section 4.06(a)(4) will
be required) until the occurrence of the earliest Trigger Event. If such right
or warrant is subject to subsequent events, upon the occurrence of which such
right or warrant shall become exercisable to purchase different securities, evidences
of indebtedness or other assets or entitle the holder to purchase a different
number or amount of the foregoing or to purchase any of the foregoing at a
different purchase price, then the occurrence of each such event shall be
deemed to be the date of issuance and record date with respect to a new right
or warrant (and a termination or expiration of the existing right or warrant
without exercise by the holder thereof). In addition, in the event of any
distribution (or deemed distribution) of rights or warrants, or any Trigger
Event or other event (of the type described in the preceding sentence) with
respect thereto, that resulted in an adjustment to the Conversion Rate under
this Section 4.06(a)(4):

 

(A) in the case of any such rights or warrants which shall all
have been redeemed or repurchased without exercise by any holders thereof, the
Conversion 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 

 

31

 

share
redemption or repurchase price received by a holder 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

 

(B) in the case of such rights or warrants all of which shall have
expired or been terminated without exercise, the Conversion Rate shall be
readjusted as if such rights and warrants had never been issued.

 

For
purposes of this Section 4.06(a)(4) and Sections 4.06(a)(1), 4.06(a)(2) and
4.06(a)(3), any dividend or distribution to which this Section 4.06(a)(4) is
applicable that also includes shares of Common Stock, a subdivision or
combination of Common Stock to which Section 4.06(a)(2) applies, or
rights or warrants to subscribe for or purchase shares of Common Stock to which
Section 4.06(a)(3) applies (or any combination thereof), shall be
deemed instead to be:

 

(A) a dividend or distribution of the evidences of indebtedness,
assets, shares of capital stock, rights or warrants other than such shares of
Common Stock, such subdivision or combination or such rights or warrants to
which Sections 4.06(a)(1), 4.06(a)2 and 4.06(a)(3) apply, respectively
(and any Conversion Rate increase required by this Section 4.06(a)(4) with
respect to such dividend or distribution shall then be made); immediately
followed by

 

(B) a dividend or distribution of such shares of Common Stock,
such subdivision or combination or such rights or warrants (and any further
Conversion Rate increase required by Sections 4.06(a)(1), 4.06(a)(2) and
4.06(a)(3) with respect to such dividend or distribution shall then be
made); except:

 

(i) the record date of such dividend or
distribution shall be substituted as (x) “the date fixed for the
determination of stockholders entitled to receive such dividend or other
distribution”, “record date fixed for such determination” and “record date”
within the meaning of Section 4.06(a)(1), (y) “the day upon which
such subdivision becomes effective” and “the day upon which such combination
becomes effective” within the meaning of Section 4.06(a)(2), and (z) “the
record date fixed for the determination of stockholders entitled to receive
such rights or warrants,” such “record date,” “the record date fixed for the
determination of stockholders entitled to receive such rights or warrants” and “such
date fixed for the determination of stockholders entitled to receive such
rights or warrants” within the meaning of Section 4.06(a)(3); and

 

(ii) any shares of Common Stock included in
such dividend or distribution shall not be deemed “outstanding at the close of
business on the record date fixed for such determination” within the meaning of
Section 4.06(a)(1) and any reduction or increase in the number of
shares of Common Stock resulting from such subdivision or combination shall be
disregarded in connection with such dividend or distribution.

 

32

 

(5) To the extent the Company has a Rights Plan
in effect upon conversion of the Securities pursuant to this Article 4: (i) if
such Rights have not separated from the Common Stock prior to the conversion of
the Securities, each share of Common Stock issued upon conversion of the
Securities pursuant to this Article 4 shall be entitled to receive the
appropriate number of Rights, if any, and the certificates representing the
Common Stock issued upon such conversion shall bear such legends, if any, in
each case as may be provided by the terms of any Rights Plan; or (ii) if
such Rights have separated from the Common Stock prior to the conversion of the
Securities, the Conversion Rate will be adjusted as though the Rights were
being distributed to all holders of Common Stock on the date of such
separation. If such an adjustment is made and the Rights are later redeemed,
invalidated or terminated, then a corresponding reversing adjustment will be
made to the Conversion Rate on an equitable basis.

 

(6) In case the Company shall, by dividend or
otherwise, distribute to all or substantially all holders of its Common Stock
cash (excluding any cash that is distributed upon a reclassification, change,
merger, consolidation, statutory share exchange, combination, sale, conveyance
or lease to which Section 4.10 hereof applies or as part of a distribution
referred to in Section 4.06(a)(4) hereof), then, and in each such
case, immediately after the close of business on such date, 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 close of
business on such record date by a fraction:

 

(i)                         the numerator
of which shall be equal to the Current Market Price on the record date, and

 

(ii)                      the denominator
of which shall be equal to the Current Market Price on such date less an amount
equal to the quotient of (x) the sum of the aggregate amount of cash so
distributed, and (y) the number of shares of Common Stock outstanding on
the 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 which would then be in effect as if such dividend or
distribution had not been declared.

 

(7) In case a tender or exchange offer made by
the Company or any of its subsidiaries for all or any portion of the Common
Stock shall expire, to the extent that the cash and value of any other
consideration included in the payment per share of Common Stock in such offer
exceeds Closing Price per share of Common Stock on the day after the date of
the last time (the “Expiration Time”)
tenders could have been made pursuant to such tender or exchange offer, 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
close of business on the date of the Expiration Time by a fraction:

 

(i)                         the numerator
of which shall be the sum of (x) the fair market value (determined as set
forth in Section 4.06(a)(8)) 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 

 

33

 

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 Current Market Price of the Common Stock
on the Trading Day next succeeding the Expiration Time, and

 

(ii)                      the denominator
shall be (x) the number of shares of Common Stock outstanding (including
any tendered or exchanged shares) at the Expiration Time multiplied by (y) the
Current Market Price of the Common Stock on the Trading Day next succeeding the
Expiration Time.

 

Such increase (if any) shall become effective
immediately prior to the opening of business on the day following the
Expiration Time. In the event that the Company is obligated to purchase shares
pursuant to any such tender 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 which
would then be in effect as if such tender or exchange offer had not been made.
If the application of this Section 4.06(a)(7) to any tender or
exchange offer would result in a decrease in the Conversion Rate, no adjustment
shall be made for such tender or exchange offer under this Section 4.06(a)(7).

 

(8) For purposes of this Section 4.06(a),
the following terms shall have the meanings indicated:

 

(A) “Current
Market Price” shall mean the average of the daily Closing Prices
per share of Common Stock for the 10 consecutive Trading Days immediately prior
to the date in question; provided, however,
that if:

 

(i) the “ex” date (as hereinafter defined) for
any event (other than the issuance or distribution requiring such computation)
that requires an adjustment to the Conversion Rate pursuant to Section 4.06(a)(1),
(2), (3), (4), (6) or (7) occurs during such 10 consecutive Trading
Days, the Closing Price for each Trading Day prior to the “ex” date for such
other event shall be adjusted by dividing such Closing Price by the same
fraction by which the Conversion Rate is so required to be adjusted as a result
of such other event;

 

(ii) the “ex” date for any event (other than
the issuance or distribution requiring such computation) that requires an
adjustment to the Conversion Rate pursuant to Section 4.06(a)(1), (2),
(3), (4), (6) or (7) occurs on or after the “ex” date for the
issuance or distribution requiring such computation and prior to the day in
question, the Closing Price for each Trading Day on and after the “ex” date for
such other event shall be adjusted by dividing such Closing Price by the
reciprocal of the fraction by which the Conversion Rate is so required to be
adjusted as a result of such other event; and

 

(iii) the “ex” date for the issuance or
distribution requiring such computation is prior to the day in question, after
taking into account any adjustment required pursuant to clause (i) or (ii) of
this proviso, the Closing Price for each Trading Day on or after such “ex” date
shall be adjusted by adding thereto the amount of any cash and the fair market
value (as determined by the Board of Directors in a manner consistent with any
determination of such value for purposes of Section 4.06(a)(4) or
(7), whose determination shall be conclusive and 

 

34

 

set
forth in a Board Resolution) of the evidences of indebtedness, shares of
capital stock or assets being distributed applicable to one share of Common
Stock as of the close of business on the day before such “ex” date.

 

For purposes of any computation under Section 4.06(a)(7),
the Current Market Price of the Common Stock on any date shall be deemed to be
the average of the daily Closing Prices per share of Common Stock for such day
and the next two succeeding Trading Days; provided,
however, that if the “ex” date for any event (other than the tender
offer requiring such computation) that requires an adjustment to the Conversion
Rate pursuant to Section 4.06(a)(1), (2), (3), (4), (6) or (7) occurs
on or after the Expiration Time for the tender or exchange offer requiring such
computation and prior to the day in question, the Closing Price for each
Trading Day on and after the “ex” date for such other event shall be adjusted
by dividing such Closing Price by the reciprocal of the fraction by which the
Conversion Rate is so required to be adjusted as a result of such other event.
For purposes of this paragraph, the term “ex” date, when used:

 

(x) with respect to any
issuance or distribution, means the first date on which the Common Stock trades
regular way on the relevant exchange or in the relevant market from which the
Closing Price was obtained without the right to receive such issuance or
distribution;

 

(y) with respect to any
subdivision or combination of shares of Common Stock, means the first date on
which the Common Stock trades regular way on such exchange or in such market
after the time at which such subdivision or combination becomes effective; and

 

(z) with respect to any
tender or exchange offer, means the first date on which the Common Stock trades
regular way on such exchange or in such market after the Expiration Time of
such offer.

 

Notwithstanding the foregoing, whenever successive
adjustments to the Conversion Rate are called for pursuant to this Section 4.06(a),
such adjustments shall be made to the Current Market Price as may be necessary
or appropriate to effectuate the intent of this Section 4.07(a) and
to avoid unjust or inequitable results as determined in good faith by the Board
of Directors.

 

(B) “fair market value” shall mean the amount
which a willing buyer would pay a willing seller in an arm’s length
transaction.

 

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

 

(b) 
In any case in which this Section 4.06 shall require that an adjustment be
made following a record date or Expiration Time, as the case may be,
established for the purposes 

 

35

 

specified in this Section 4.06,
the Company may elect to defer (but only until five Business Days following the
filing by the Company with the Trustee of the certificate described in Section 4.08)
issuing to the Holder of any Security converted after such record date or
Expiration Time the shares of Common Stock and other Capital Stock of the
Company issuable upon such conversion over and above the shares of Common Stock
and other Capital Stock of the Company (or other cash, property or securities,
as applicable) issuable upon such conversion only on the basis of the
Conversion Rate prior to adjustment; and, in lieu of any cash, property or
securities the issuance of which is so deferred, the Company shall issue or
cause its transfer agents to issue due bills or other appropriate evidence
prepared by the Company of the right to receive such cash, property or
securities. If any distribution in respect of which an adjustment to the
Conversion Rate is required to be made as of the record date or Expiration Time
therefore is not thereafter made or paid by the Company for any reason, the
Conversion Rate shall be readjusted to the Conversion Rate which would then be
in effect if such record date had not been fixed or such record date or
Expiration Time had not occurred.

 

(c) 
If one or more events occur requiring an adjustment be made to the Conversion
Rate for a particular period, adjustments to the Conversion Rate shall be
determined by the Company’s Board of Directors to reflect the combined impact of
such Conversion Rate adjustment events, as set out in this Section 4.06,
during such period.

 

Section 4.07                                No Adjustment.

 

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

 

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

 

(c) 
No adjustment in the Conversion Rate shall be required for issuances of Common
Stock pursuant to a Company plan for reinvestment of dividends or interest or
for a change in the par value or a change to no par value of the Common Stock.

 

(d) 
To the extent that the Securities become convertible into the right to receive
cash, no adjustment need be made thereafter as to the cash.

 

(e) 
No adjustment in the Conversion Rate shall be required with respect to accrued
and unpaid interest, including Special Interest, on the Securities.

 

36

 

Section 4.08                                Notice of Adjustment.

 

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

 

Section 4.09                                Notice of Certain Transactions.

 

In the event that there is a dissolution or
liquidation of the Company, the Company shall mail to Holders and file with the
Trustee a notice stating the proposed effective date. The Company shall mail
such notice at least 20 days before such proposed effective date. Failure to
mail such notice or any defect therein shall not affect the validity of any
transaction referred to in this Section 4.09.

 

Section 4.10                                Effect of Reclassification, Consolidation, Merger or Sale on Conversion
Privilege.

 

If any of the following events occur:

 

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

 

(ii) any merger, consolidation, statutory share
exchange or combination of the Company with another corporation as a result of
which holders of Common Stock shall be entitled to receive stock, securities or
other property or assets (including cash) with respect to or in exchange for
such Common Stock;

 

(iii) any sale, conveyance or lease of the
properties and assets of the Company as, or substantially as, an entirety to
any other corporation; or

 

(iv) any statutory share exchange,

 

in
each case, as a result of which holders of Common Stock shall be entitled to
receive stock, securities or other property or assets (including cash) with
respect to or in exchange for such Common Stock, the Company or the successor
or purchasing corporation, as the case may be, shall execute with the Trustee a
supplemental indenture (which shall comply with the TIA as in force at the date
of execution of such supplemental indenture if such supplemental indenture is
then required to so comply) providing that each Security shall be convertible
into the kind and amount of shares of stock and other securities or property or
assets (including cash) which such Holder would have been entitled to receive
upon such recapitalization, reclassification, change, merger, consolidation,
statutory share exchange, combination, sale, conveyance or lease. In the event
holders of the Common Stock have the opportunity to elect the form of
consideration to be 

 

37

 

received
in such business combination, the Securities will be convertible into the
weighted average of the kind and amount of consideration received by the
holders of the Common Stock that affirmatively make such an election. The
Company may not become a party to any such transaction unless its terms are
consistent with the preceding. None of the foregoing provisions shall affect
the right of a Holder of Securities to convert its Securities into shares of
the Common Stock prior to the effective date of the business combination.

 

Such supplemental indenture shall provide for
adjustments which shall be as nearly equivalent as may be practicable to the
adjustments provided for in this Article 4. If, in the case of any such
recapitalization, reclassification, change, merger, consolidation, statutory
share exchange, combination, sale, conveyance or lease, the stock or other
securities and assets receivable thereupon by a holder of shares 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
recapitalization, 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, including to the extent practicable the provisions
providing for the repurchase rights set forth in Article 3 hereof.

 

In the event the Company shall execute a
supplemental indenture pursuant to this Section 4.10, the Company shall
promptly file with the Trustee an Officers’ Certificate briefly stating the
reasons therefor, the kind or amount of shares of stock or other securities or
property (including cash) that a holder of shares of Common Stock equal to the
Conversion Rate immediately prior to such transaction would have owned or been
entitled to receive after any such transaction, and any adjustment to be made
with respect thereto. The Company shall cause notice of the execution of such
supplemental indenture to be mailed to each Holder, at the address of such
Holder as it appears on the register of the Securities, within 20 days after
execution thereof. Failure to deliver such notice shall not affect the legality
or validity of such supplemental indenture.

 

The provisions of this Section shall similarly
apply to successive recapitalizations, reclassifications, mergers,
consolidations, statutory share exchanges, combinations, sales and conveyances.

 

If this Section 4.10 applies to any event or
occurrence, Section 4.06(a) hereof shall not apply.

 

Section 4.11                                Trustee’s Disclaimer.

 

(a) 
The Trustee shall have no duty to determine when an adjustment under this Article 4
should be made, how it should be made or what such adjustment should be, but
may accept as conclusive evidence of that fact or the correctness of any such
adjustment, and shall be protected in relying upon, an Officers’ Certificate
and Opinion of Counsel, including the Officers’ Certificate with respect
thereto which the Company is obligated to file with the Trustee pursuant to Section 4.08.
Unless and until the Trustee receives such Officers’ Certificate delivered
pursuant to Section 4.08, the Trustee may assume without inquiry that no
such adjustment has 

 

38

 

been made and the last
Conversion Rate of which the Trustee has knowledge remains in effect. The
Trustee makes no representation as to the validity or value of any securities
or assets issued upon conversion of Securities, and the Trustee shall not be
responsible for the Company’s failure to comply with any provisions of this Article 4.

 

(b) 
The Trustee shall not be under any responsibility to determine the correctness
of any provisions contained in any supplemental indenture executed pursuant to Section 4.10,
but may accept as conclusive evidence of the correctness thereof, and shall be
fully protected in relying upon, the Officers’ Certificate and Opinion of
Counsel with respect thereto which the Company is obligated to file with the
Trustee pursuant to Section 4.10 hereof and Section 9.01 of the Base
Indenture, respectively.

 

Section 4.12                                Voluntary Increase.

 

The Company from time to time may increase the
Conversion Rate, to the extent permitted by law, by any amount for any period
of time if the period is at least 20 Business Days, the increase is irrevocable
during the period and the Board of Directors determines that such increase
would be in the best interests of the Company or to avoid or diminish income
tax to holders of shares of Common Stock in connection with a dividend or
distribution of stock, or rights to acquire stock, or similar event, and the
Company provides 15 days’ prior written notice of any increase in the
Conversion Rate to the Trustee and the Holders; provided, however,
that in no event may the Company increase the Conversion Rate such that it
causes the Conversion Price to be less than the par value of a share of Common
Stock.

 

Article 5

Subordination

 

Section 5.01                                Securities Subordinated to Senior Debt.

 

The Company covenants and agrees, and each Holder of
Securities, by such Holder’s acceptance thereof, likewise covenants and agrees,
that the Indebtedness represented by the Securities and the payment of the
principal of and premium, if any, and interest, including Special Interest, if
any, on each and all of the Securities is hereby expressly subordinated and
junior, to the extent and in the manner set forth in this Section 5.01, in
right of payment to the prior payment in full of all Senior Debt; provided, however,
that the Securities, the Indebtedness represented thereby and the payment of the
principal of and premium, if any, and interest, including Special Interest, if
any, on the Securities in all respects shall rank equally with, or prior to,
all existing and future Indebtedness of the Company that is expressly
subordinated to any Senior Debt.

 

(a) 
In the event of any payment or distribution of assets of the Company upon any
dissolution, winding-up, liquidation or reorganization of the Company, whether
in bankruptcy, insolvency, reorganization or receivership proceedings or upon
an assignment for the benefit of creditors or any other marshalling of the
assets and liabilities of the Company or otherwise, the holders of all Senior
Debt shall first be entitled to receive payment of the full amount due thereon
in respect of all such Senior Debt and all other amounts due or provision shall
be made for such amount in cash, or other payments satisfactory to the holders
of Senior Debt, before the 

 

39

 

Holders of any of the
Securities are entitled to receive any payment or distribution of any
character, whether in cash, securities or other property, on account of the
principal of or premium, if any, or interest, including Special Interest, if
any, on the Securities.

 

(b) 
In the event of any acceleration of Maturity of the Securities because of an
Event of Default, unless the full amount due in respect of all Senior Debt is
paid in cash or other form of payment satisfactory to the holders of Senior
Debt, no payment shall be made by the Company with respect to the principal of,
premium, if any, or interest, including Special Interest, if any, on the
Securities or to acquire any of the Securities (including any conversion,
redemption or cash repurchase pursuant to the exercise of the Fundamental
Change Repurchase Right or otherwise), and the Company shall give prompt
written notice of such acceleration to such holders of Senior Debt.

 

(c) 
In the event of and during the continuance of any default in payment of the
principal of or premium, if any, or interest on, rent or other payment
obligations in respect of, any Senior Debt, unless all such payments due in
respect of such Senior Debt have been paid in full in cash or other payments
satisfactory to the holders of Senior Debt, no payment shall be made by the
Company with respect to the principal of, premium, if any, or interest,
including Special Interest, if any, on the Securities or to acquire any of the
Securities (including any conversion, redemption, or cash repurchase pursuant
to the exercise of the Fundamental Change Repurchase Right). The Company shall
give prompt written notice to the Trustee of any default under any Senior Debt
or under any agreement pursuant to which Senior Debt may have been issued.

 

(d) 
In the event that, notwithstanding the foregoing provisions of Sections
5.01(a), 5.01(b) and 5.01(c), any payment on account of principal,
premium, if any, or interest, including Special Interest, if any, on the
Securities shall be made by or on behalf of the Company and received by the
Trustee, by any Holder or by any Paying Agent (or, if the Company is acting as
its own Paying Agent, money for any such payment shall be segregated and held
in trust):

 

(1) after the occurrence of an event specified
in Section 5.01(a) or 5.01(b), then, unless all Senior Debt is paid
in full in cash, or provision shall be made therefor; or

 

(2) after the happening of an event of default
of the type specified in Section 5.01(c), then, unless the amount of such
Senior Debt then due shall have been paid in full, or provision made therefor
or such event of default shall have been cured or waived, such payment
(subject, in each case, to the provisions of Section 5.07 hereof) shall be
held in trust for the benefit of, and shall be immediately paid over to, the
holders of Senior Debt or their representative or representatives or the
trustee or trustees under any indenture under which any instruments evidencing
any of the Senior Debt may have been issued, as their interests may appear.

 

Section 5.02                                Subrogation.

 

Subject to the payment in full of all Senior Debt to
which the Indebtedness evidenced by the Securities is in the circumstances
subordinated as provided in Section 5.01 hereof, the Holders of the
Securities shall be subrogated to the rights of the holders of such Senior Debt
to receive payments or distributions of cash, property or securities of the
Company applicable to 

 

40

 

such
Senior Debt until all amounts owing on the Securities shall be paid in full,
and, as between the Company, its creditors other than holders of such Senior
Debt, and the Holders of the Securities, no such payment or distribution made
to the holders of Senior Debt by virtue of this Article 5 which otherwise
would have been made to the holders of the Securities shall be deemed to be a
payment by the Company on account of such Senior Debt; provided, however, that the provisions of
this Article 5 are and are intended solely for the purpose of defining the
relative rights of the Holders of the Securities, on the one hand, and the
holders of Senior Debt, on the other hand.

 

Section 5.03                                Obligation of the Company Is Absolute and Unconditional.

 

Nothing contained in this Article 5 or
elsewhere in the Indenture or in the Securities is intended to or shall impair,
as between the Company, its creditors other than the holders of Senior Debt,
and the Holders of the Securities, the obligation of the Company, which is
absolute and unconditional, to pay to the Holders of the Securities the
principal of and premium, if any, and interest, including Special Interest, 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 Senior Debt, nor shall anything contained herein or therein
prevent the Trustee or the Holder of any Security from exercising all remedies
otherwise permitted by applicable law upon default under the Indenture, subject
to the rights, if any, under this Article 5 of the holders of Senior Debt
in respect of cash, property or securities of the Company received upon the
exercise of any such remedy.

 

Section 5.04                                Maturity of or Default on Senior Debt.

 

Upon the maturity of any Senior Debt by lapse of
time, acceleration or otherwise, all principal of or premium, if any, or
interest on, rent or other payment obligations in respect of all such matured
Senior Debt shall first be paid in full, or such payment shall have been duly
provided for, before any payment on account of principal, or premium, if any,
or interest, including Special Interest, if any, is made upon the Securities.

 

Section 5.05                                Payments on Securities Permitted.

 

Except as expressly provided in this Article 5,
nothing contained in this Article 5 shall affect the obligation of the
Company to make, or prevent the Company from making, payments of the principal
of, or premium, if any, or interest, including Special Interest, if any, on the
Securities in accordance with the provisions hereof and thereof, or shall
prevent the Trustee or any Paying Agent from applying any moneys deposited with
it hereunder to the payment of the principal of, or premium, if any, or
interest, including Special Interest, if any, on the Securities.

 

Section 5.06                                Effectuation of Subordination by Trustee.

 

Each Holder of Securities, by such Holder’s
acceptance thereof, authorizes and directs the Trustee on such Holder’s behalf
to take such action as may be necessary or appropriate to effectuate the
subordination provided in this Article 5 and appoints the Trustee such
Holder’s attorney-in-fact for any and all such purposes. Upon any payment or
distribution of assets of the 

 

41

 

Company
referred to in this Article 5, the Trustee 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 any such dissolution, winding-up,
liquidation or reorganization proceeding affecting the affairs of the Company
is pending or upon a certificate of the trustee in bankruptcy, receiver,
assignee for the benefit of creditors, liquidating trustee or agent or other
Person making any 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 payment or distribution, and as to other facts pertinent to
the right of such Persons under this Article 5, and, if such evidence is
not furnished, the Trustee may defer any payment to such Persons pending
judicial determination as to the right of such Persons to receive such payment.

 

Section 5.07                                Knowledge of Trustee.

 

Notwithstanding the provisions of this Article 5
or any other provisions of this Indenture, the Trustee shall not be charged
with knowledge of the existence of any facts that would prohibit the making of
any payment or distribution by the Trustee, and the Trustee and Paying Agent
may continue to make payments on the Securities, unless a Responsible Officer
of the Trustee having responsibility for the administration of the trust
established by the Indenture shall have received written notice thereof from
the Company expressly directing the Trustee that such payment cannot be made
and, prior to the receipt of any such written notice, the Trustee shall be
entitled in all respects to assume that no such default or facts exist; provided, however,
that unless on the third Business Day prior to the date upon which by the terms
hereof any such moneys may become payable for any purpose the Trustee shall
have received the notice provided for in this Section 5.07, then, anything
herein contained to the contrary notwithstanding, the Trustee shall have full
power and authority to receive such moneys and 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 date.

 

Section 5.08                                Trustee’s Relation to Senior Debt.

 

The Trustee shall be entitled to all the rights set
forth in this Article 5 with respect to any Senior Debt at the time held
by it, to the same extent as any other holder of Senior Debt and nothing in the
Indenture shall deprive the Trustee of any of its rights as such holder.
Nothing contained in this Article 5 shall apply to claims of or payments
to the Trustee under or pursuant to Section 7.06 of the Base Indenture.
With respect to the holders of Senior Debt, the Trustee undertakes to perform
or to observe only such of its covenants and obligations as are specifically
set forth in this Article 5 (which covenant and obligation is limited
solely to withhold payment to the Holders if the Trustee has actually received
the written notice from the Company described in Section 5.07 to the
effect that a payment should not be made to the Holders), and no implied
covenants or obligations with respect to the holders of Senior Debt shall be
read into the Indenture against the Trustee. The Trustee shall not be deemed to
owe any duties (including, without limitation, any fiduciary duty) to the
holders of Senior Debt and the Trustee shall not be liable to any holder of
Senior Debt if it shall pay over or deliver to Holders, the Company or any
other Person moneys or assets to which any holder of Senior Debt shall be
entitled by virtue of this Article 5 or otherwise.

 

42

 

Section 5.09                                Rights of Holders of Senior Debt Not Impaired.

 

No right of any present or future holder of any
Senior Debt to enforce the subordination herein shall at any time or in any way
be prejudiced or impaired by any act or failure to act on the part of the
Company or by any noncompliance by the Company with the terms, provisions and
covenants of the Indenture, regardless of any knowledge thereof any such holder
may have or be otherwise charged with.

 

Section 5.10                                Modification of Terms of Senior Debt.

 

Any renewal or extension of the time of payment of
any Senior Debt or the exercise by the holders of Senior Debt of any of their
rights under any instrument creating or evidencing Senior Debt, including,
without limitation, the waiver of default thereunder, may be made or done all
without notice to or assent from the Holders of the Securities or the Trustee.
No compromise, alteration, amendment, modification, extension, renewal or other
change of, or waiver, consent or other action in respect of, any liability or
obligation under or in respect of, or of any of the terms, covenants or
conditions of any indenture or other instrument under which any Senior Debt is
outstanding or of such Senior Debt, whether or not such compromise, alteration,
amendment, modification, extension, renewal or other change of, or waiver,
consent or other action is in accordance with the provisions or any applicable
document, shall in any way alter or affect any of the provisions of this Article 5
or of the Securities relating to the subordination thereof.

 

Section 5.11                                Certain Conversions Not Deemed Payment.

 

For the purposes of this Article 5 only:

 

(a) the issuance and delivery of junior
securities upon conversion of Securities in accordance with Article 4
hereof shall not be deemed to constitute a payment or distribution on account
of the principal of, premium, if any, or interest, including Special Interest,
if any, on Securities or on account of the purchase or other acquisition of
Securities; and

 

(b) the payment, issuance or delivery of cash
(except in satisfaction of fractional shares pursuant to Section 4.03
hereof), property or securities (other than junior securities) upon conversion
of a Security shall be deemed to constitute payment on account of the
principal, premium, if any, or interest, including Special Interest, if any, of
such Security. For the purposes of this Section 5.11, the term “junior
securities” means:

 

(1)          shares of any Company Common Stock; or

 

(2)          other securities of the Company that are subordinated in right of payment
to all Senior Debt 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 5.
Nothing contained in this Article 5 or elsewhere in the Indenture or in
the Securities is intended to or shall impair, as among the Company, its
creditors (other than holders of Senior Debt) and the Holders of Securities,
the right, which is absolute and unconditional, of the Holder of any Security
to convert such Security in accordance with Article 4 hereof.

 

43

 

Section 5.12                                No Layering of Debt.  The Company will not incur, create, issue,
assume, guarantee or otherwise become liable for any Indebtedness that is
contractually subordinate or junior in right of payment to any Senior Debt of
the Company and senior in right of payment to the Securities.

 

Article 6

Covenants

 

Section 6.01                                Payment of Securities.

 

(a) 
The Company shall promptly make all payments in respect of the Securities on
the dates and in the manner provided in the Securities and this Indenture. A
payment of principal or interest, including Special Interest, if any, shall be
considered paid on the date it is due if the Paying Agent (other than the
Company) holds by 10:00 a.m., New York City time, on that date money,
deposited by or on behalf of the Company, sufficient to make the payment.
Subject to Section 4.02 and Section 3.10, accrued and unpaid interest,
including Special Interest, if any, on any Security that is payable, and is
punctually paid or duly provided for, on any Interest Payment Date shall be
paid to the Person in whose name that Security is registered at the close of
business on the Regular Record Date for such interest at the office or agency
of the Company maintained for such purpose. Principal, Redemption Price,
Fundamental Change Repurchase Price, interest and Special Interest, in each
case if payable, shall be considered paid on the applicable date due if on such
date (or, in the case of Fundamental Change Repurchase Price, on the Business
Day following the applicable Fundamental Change Repurchase Date) the Trustee or
the Paying Agent holds, in accordance with this Indenture, money sufficient to
pay all such amounts then due. The Company shall, to the fullest extent
permitted by law, pay interest in immediately available funds on overdue
principal amount and interest, including Special Interest, if any, at the
annual rate borne by the Securities compounded semi-annually, which interest
shall accrue from the date such overdue amount was originally due to the date
payment of such amount, including interest thereon, has been made or duly
provided for. All such interest shall be payable on demand.

 

(b) 
Payment of the principal of and interest, including Special Interest, if any,
on the Securities shall be made at the office or agency of the Company
maintained for that purpose, which shall initially be at the Drop Agent’s
Office, in such coin or currency of the United States of America as at the time
of payment is legal tender for payment of public and private debts; provided, however,
that the Company may pay principal, interest and Special Interest, in respect
of any Certificated Security by check or wire transfer payable in such money; provided, further, that at the option of
the Company payment of interest and Special Interest may be made by check
mailed to the address of the Person entitled thereto as such address appears in
the register of the Securities; provided,
further, that a Holder with an aggregate principal amount in excess
of $5,000,000 will be paid by wire transfer in immediately available funds at
the election of such Holder if such Holder has provided wire transfer
instructions to the Trustee at least 10 Business Days prior to the payment
date. Any wire transfer instructions received by the Trustee will remain in
effect until revoked by the Holder. Notwithstanding the foregoing, so long as
the Securities are registered in the name of a Depositary or its nominee, all
payments thereon shall be made by wire transfer of immediately available funds
to the account of the Depositary or its nominee.

 

44

 

Section 6.02                                Corporate Existence.

 

Subject to Article 10 of the Base Indenture,
the Company will do or cause to be done all things necessary to preserve and
keep in full force and effect its corporate existence, rights (charter and
statutory) and franchises; provided,
however, that the Company shall
not be required to preserve any such right or franchise if the Company
determines that the preservation thereof is no longer desirable in the conduct
of the business of the Company and that the loss thereof is not disadvantageous
in any material respect to the Holders.

 

Section 6.03                                Maintenance of Properties.

 

The Company will maintain and keep its properties
and every part thereof in such repair, working order and condition, and make or
cause to be made all such needful and proper repairs, renewals and replacements
thereof, as in the judgment of the Company are necessary in the interests of
the Company; provided, however, that nothing contained in this Section shall
prevent the Company from selling, abandoning or otherwise disposing of any of
its properties or discontinuing a part of its business from time to time if, in
the judgment of the Company, such sale, abandonment, disposition or
discontinuance is advisable and does not materially adversely affect the
interests or business of the Company.

 

Section 6.04                                Payment of Taxes and Other Claims.

 

The Company will, and will cause any Significant
Subsidiary to, promptly pay and discharge or cause to be paid and discharged
all material taxes, assessments and governmental charges or levies lawfully
imposed upon it or upon its income or profits or upon any of its property, real
or personal, or upon any part thereof, as well as all material claims for
labor, materials and supplies which, if unpaid, might by law become a lien or
charge upon its property; provided,
however, that neither the Company
nor any Significant Subsidiary shall be required to pay or discharge or cause
to be paid or discharged any such tax, assessment, charge, levy or claim if the
amount, applicability or validity thereof shall currently be contested in good
faith by appropriate proceedings and if the Company or such Significant
Subsidiary, as the case may be, shall have set aside on its books reserves
deemed by it adequate with respect thereto.

 

Section 6.05                                Reports.

 

This Section 6.05 hereby replaces and
supersedes, solely with respect to the 3.35% Convertible Senior Subordinated
Notes due 2015, Section 5.03(a) of the Base Indenture.

 

The Company shall timely file all reports and other
information and documents which it is required to file with the SEC pursuant to
Section 13 or 15(d) of the Exchange Act, and, within 15 days after it
is required to file them with the SEC, the Company shall file copies of all
such reports, information and other documents with the Trustee; provided that
any such reports, information and documents filed with the SEC pursuant to its
Electronic Data Gathering, Analysis and Retrieval (or EDGAR) system shall be
deemed to be filed with the Trustee. The Company shall inform the Trustee by
electronic mail or other written means that it has filed with the SEC an annual
report on Form 10-K or quarterly report on Form 10-Q. The Company
also shall at all times comply with the provisions of Section 314(a) of
the TIA. In the event the 

 

45

 

Company
is no longer subject to the reporting requirements of Section 13 or 15(d) of
the Exchange Act, the Company shall, if required to do so under rules and
regulations prescribed by the SEC, provide the trustee with such reports
containing such information as would have been required to be filed with the
SEC had we continued to have been subject to such reporting requirements, as
may be prescribed in such rules and regulations. 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 exclusively on Officers’
Certificates).

 

Section 6.06                                Compliance Certificate.

 

This Section 6.06 hereby replaces and
supersedes, solely with respect to the 3.35% Convertible Senior Subordinated
Notes due 2015, Section 13.06(c) of the Base Indenture.

 

The Company shall deliver to the Trustee, within 90
days after the end of each fiscal year of the Company, an Officers’ 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 the status thereof of
which the signer may have knowledge. Within five Business Days of an Officer of
the Company coming to have actual knowledge of a Default, regardless of the
date, the Company shall deliver an Officers’ Certificate to the Trustee
specifying such Default and the nature and status thereof.

 

Article 7

Consolidation; Merger; Conveyance; Transfer or Lease

 

This Article 7 hereby replaces and supersedes
in its entirety, solely with respect to the 3.35% Convertible Senior
Subordinated Notes due 2015, Article 10 of the Base Indenture.

 

Section 7.01                                Company May Consolidate, Etc., Only on Certain Terms.

 

(a) 
The Company may not, without the consent of the Holders, consolidate with,
merge into or convey, transfer or lease all or substantially all of the
property and assets of the Company and its Subsidiaries, taken as a whole, to
another Person unless:

 

(1) either (A) the Company shall be the
resulting or surviving corporation, or (B) the Person (if other than the
Company) formed by such consolidation or into which the Company is merged, or
the Person which acquires by transfer or lease all or substantially all of the
properties and assets of the Company, shall (i) be a corporation
incorporated and existing under the laws of the United States of America or any
State thereof or the District of Columbia, and (ii) expressly assume, by
an indenture supplemental hereto, executed and delivered to the Trustee, in
form satisfactory to the Trustee, the obligations of the Company under the
Securities, this Indenture and the performance or observance of every covenant
and provision of this Indenture and the Securities required on the part of the
Company to be performed or observed 

 

46

 

and
the conversion rights shall be provided for in accordance with Article 4,
by supplemental indenture satisfactory in form to the Trustee, executed and
delivered to the Trustee, by the Person (if other than the Company) formed by
such consolidation or into which the Company shall have been merged or by the
Person which shall have acquired the Company’s assets;

 

(2) after giving effect to such transaction, no
Event of Default, and no event which, after notice or lapse of time or both,
would become an Event of Default, shall have occurred and be continuing;

 

(3) if, as a result of such transaction, the
Securities became convertible into Common Stock or other securities issued by a
third party, such third party agrees to deliver such common stock or other
securities upon conversion under the Securities and the Indenture; and

 

(4) if the Company will not be the resulting or
surviving corporation, the Company shall have, at or prior to the effective
date of such consolidation, merger or transfer, delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that such
consolidation, merger or transfer complies with this Article 7 and, if a
supplemental indenture is required in connection with such transaction, such
supplemental indenture complies with this Article 7, and that all
conditions precedent herein provided for relating to such transaction have been
complied with.

 

(b) 
For purposes of the foregoing, the transfer (by lease, assignment, sale or
otherwise) of the properties and assets of one or more Subsidiaries of the
Company (other than to the Company or another Subsidiary of the Company),
which, if such assets were owned by the Company, would constitute all or
substantially all of the properties and assets of the Company and its
Subsidiaries, taken as a whole, shall be deemed to be the transfer of all or
substantially all of the properties and assets of the Company.

 

Section 7.02                                Successor Substituted.

 

Upon any consolidation of the Company with, or
merger of the Company into, any other Person or any conveyance, transfer or
lease of all or substantially all of the properties and assets of the Company
and its Subsidiaries, taken as a whole, in accordance with Section 7.01,
the successor Person formed by such consolidation or into which the Company is
merged or to which such conveyance, transfer or lease is made shall succeed to,
and be substituted for, and may exercise every right and power of, the Company
under this Indenture with the same effect as if such successor Person had been
named as the Company herein, and thereafter, except in the case of a lease, and
except for obligations the predecessor Person may have under a supplemental
indenture, the predecessor Person shall be relieved of all obligations and
covenants under the Indenture and the Securities.

 

Article 8

Default and Remedies

 

This Article 8 hereby replaces and supersedes
in its entirety, solely with respect to the 3.35% Convertible Senior
Subordinated Notes due 2015, Article 6 of the Base Indenture.

 

47

 

Section 8.01                                Events of Default.

 

An “Event of
Default” shall occur when any of the following occurs (whatever
the reason for such Event of Default and whether it shall be occasioned by the
provisions of Article 5 hereof or be voluntary or involuntary or be
effected by operation of law or pursuant to any judgment, decree or order of
any court or any order, rule or regulation of any administrative or
governmental body):

 

(a) 
the Company shall fail to pay when due the principal, Redemption Price or any
Fundamental Change Repurchase Price of any Security, including any Additional
Payment upon Provisional Redemption or Make-Whole Premium, when the same
becomes due and payable whether at the Final Maturity Date, upon redemption,
repurchase, acceleration or otherwise whether or not such payment is prohibited
by Article 5 hereof; or

 

(b) 
the Company shall fail to pay an installment of interest, including Special
Interest, if any, on any of the Securities, which failure continues for 30 days
after the date when due whether or not such payment is prohibited by Article 5
hereof; or

 

(c) 
the Company shall fail to deliver when due all shares of Common Stock, together
with cash in lieu of fractional shares deliverable upon conversion of the
Securities, which failure continues for 10 days; or

 

(d) 
the Company fails to perform or observe any other term, covenant or agreement
contained in the Securities or this Indenture and the failure continues for a
period of 60 days after written notice of such failure, requiring the Company
to remedy the same, shall have been given to the Company by the Trustee or to
the Company and the Trustee by the Holders of at least 25% in aggregate
principal amount of the then-outstanding Securities; or

 

(e) 
(i) the Company fails to make any payment by the end of the applicable
grace period, if any, after the maturity of any Indebtedness for borrowed money
in an amount in excess of $5,000,000, or (ii) there is an acceleration of
any Indebtedness for borrowed money in an amount in excess of $5,000,000
because of a default with respect to such Indebtedness without such
Indebtedness having been discharged or such acceleration having been cured,
waived, rescinded or annulled, in the case of either (i) or (ii), for a
period of 30 days after written notice to the Company by the Trustee or to the
Company and the Trustee by Holders of at least 25% in aggregate principal
amount of the then-outstanding Securities; or

 

(f) 
the Company fails to provide a Fundamental Change Company Notice in accordance
with Section 3.07; or

 

(g) 
a court having jurisdiction enters (i) a decree or order for relief in
respect of the Company in an involuntary case or proceeding under any
Bankruptcy Law, or (ii) a decree or order adjudging the Company a bankrupt
or insolvent, or approves as properly filed a petition seeking reorganization,
arrangement, adjustment or composition of or in respect of the Company under
any applicable U.S. federal or state law, or appoints a Receiver of the Company
or of any substantial part of its property, or orders the winding-up or
liquidation of its affairs, and the 

 

48

 

continuance of any such
decree or order for relief or any such other decree or order unstayed and in
effect for a period of 60 consecutive days; or

 

(h) 
the Company pursuant to or within the meaning of any Bankruptcy Law:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 8.02                                Acceleration of Maturity; Rescission and Annulment.

 

If an Event of Default with respect to outstanding
Securities (other than an Event of Default specified in Section 8.01(g) or
8.01(h) hereof) occurs and is continuing, the Trustee or the Holders of at
least 25% in aggregate principal amount of the then-outstanding Securities, by
written notice to the Company and the Trustee, may declare due and payable 100%
of the principal amount of all outstanding Securities plus any accrued and
unpaid interest, including Special Interest, if any, to the date of payment.
Upon a declaration of acceleration, such principal and accrued and unpaid
interest to the date of payment shall be immediately due and payable.

 

If an Event of Default specified in Section 8.01(g) or
8.01(h) hereof occurs, all unpaid principal of and accrued and unpaid
interest, including Special Interest, if any, on the outstanding Securities
shall become and be immediately due and payable, without any declaration or
other act on the part of the Trustee or any Holder.

 

Notwithstanding the foregoing or anything to the
contrary set forth in this Indenture, to the extent elected by the Company, the
sole remedy for an Event of Default relating to the failure to comply with the
reporting obligations set forth in Section 5.03 of the Base Indenture (as
amended by Section 6.05 hereof), and for any failure to comply with the
requirements of Section 314(a)(1) of the Trust Indenture Act, will
for the first 180 days after the occurrence of such an Event of Default consist
exclusively of the right to receive special interest on the Securities at an
annual rate equal to 1.0% of the principal amount of the Securities (“Special Interest”). The 

 

49

 

Special
Interest will accrue on all outstanding Securities from and including the date
on which an Event of Default relating to a failure to comply with the reporting
obligations set forth in Section 5.03 of the Base Indenture first occurs
to but not including the 180th day thereafter (or such earlier date on which
the Event of Default shall have been cured or waived).  On such 180th day (or earlier, if the Event
of Default relating to the reporting obligations is cured or waived prior to
such 180th day), such Special Interest will cease to accrue and, if the Event
of Default relating to reporting obligations has not been cured or waived prior
to such 180th day, the Securities will be subject to acceleration as provided
in this Section 8.02.  In the event
the Company does not elect to pay Special Interest upon an Event of Default in
accordance with this paragraph, the Securities will be subject to acceleration
as provided in this Section 8.02. 
If the Company elects to pay Special Interest as the sole remedy for an
Event of Default relating to the failure to comply with the reporting
obligations in Section 5.03 of the Base Indenture (as amended by Section 6.05
hereof) or for any failure to comply with the requirements of Section 314(a)(1) of
the TIA, the Company will notify all Holders, the Trustee and Paying Agent of
such election on or before the close of business on the date on which such
Event of Default first occurs.

 

The Holders of a majority in aggregate principal
amount of the then-outstanding Securities by written notice to the Trustee may
rescind and annul an acceleration and its consequences if:

 

(1) all existing Events of Default, other than
the nonpayment of principal of or interest, including Special Interest, if any,
on the Securities which has become due solely because of the acceleration, have
been remedied, cured or waived; and

 

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

 

provided, however, that in the event such declaration of acceleration
has been made based on the existence of an Event of Default under Section 8.01(e) hereof
and such Event of Default has been remedied, cured or waived in accordance with
Section 8.01(e) hereof, then, without any further action by the
Holders, such declaration of acceleration shall be rescinded automatically and
the consequences of such declaration shall be annulled. No such rescission or
annulment shall affect any subsequent Default or impair any right consequent
thereon.

 

Section 8.03                                Other Remedies.

 

If an Event of Default with respect to outstanding
Securities occurs and is continuing, the Trustee may pursue any available
remedy by proceeding at law or in equity to collect the payment of principal of
or interest, including Special Interest, if any, on the Securities or to
enforce the performance of any provision of the Securities.

 

Section 8.04                                Waiver of Past Defaults.

 

The Holders, either (a) through the written
consent of not less than a majority in aggregate principal amount of the
then-outstanding Securities, or (b) by the adoption of a resolution, at a
meeting of Holders of the then-outstanding Securities at which a quorum is
present, by the Holders of at least a majority in aggregate principal amount of
the outstanding 

 

50

 

Securities
represented at such meeting, may, on behalf of the Holders of all of the
Securities, waive an existing Default or Event of Default, except a Default or
Event of Default:

 

(1) in the payment of the principal of or
premium, if any, or interest, including Special Interest, if any, on any
Security (provided, however, that subject to Section 8.07
hereof, the Holders of a majority in aggregate principal amount of the
then-outstanding Securities may rescind an acceleration and its consequences,
including any related payment default that resulted from such acceleration);

 

(2) in respect of the right to convert any
Security in accordance with Article 4; or

 

(3) in respect of a covenant or provision
hereof which, under Section 10.02 hereof, cannot be modified or amended
without the consent of the Holder of each outstanding Security affected.

 

Upon any such waiver, such Default shall cease to
exist, and any Event of Default arising therefrom shall be deemed to have been
cured, for every purpose of this Indenture; provided,
however, that no such waiver shall extend to any subsequent or other
Default or impair any right consequent thereon.

 

Section 8.05                                Control by Majority.

 

The Holders, either (a) through the written
consent of not less than a majority in aggregate principal amount of the
Securities then outstanding, or (b) by the adoption of a resolution, at a
meeting of Holders of the Securities then outstanding at which a quorum is
present, by the Holders of at least a majority in aggregate principal amount of
the outstanding Securities represented at such meeting, shall have the right to
direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee or exercising any trust or power conferred on the
Trustee. However, the Trustee may refuse to follow any direction that:

 

(a) 
conflicts with any law or with this Indenture;

 

(b) 
the Trustee determines may be unduly prejudicial to the rights of the Holders
not joining therein; or

 

(c) 
in the Trustee’s reasonable judgment may expose the Trustee to personal
liability.

 

The Trustee may take any other action deemed proper
by the Trustee which is not inconsistent with such direction.

 

Section 8.06                                Limitation on Suit.

 

No Holder of any Security shall have any right to
pursue any remedy with respect to this Indenture or the Securities (including
instituting any proceeding, judicial or otherwise, with respect to this
Indenture or for the appointment of a receiver or trustee) unless:

 

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

 

51

 

(b) 
the Holders of at least 25% in aggregate principal amount of the Securities
then outstanding shall have made written request to the Trustee to pursue the
remedy;

 

(c) 
such Holder or Holders have offered to the Trustee indemnity satisfactory to it
against any costs, expenses and liabilities incurred in complying with such
request;

 

(d) 
the Trustee has failed to comply with the request for 60 days after its receipt
of such notice, request and offer of indemnity; and

 

(e) 
during such 60-day period, no direction inconsistent with such written request
has been given to the Trustee by the Holders of a majority in aggregate
principal amount of the Securities then outstanding (or such amount as shall
have acted at a meeting pursuant to the provisions of this Indenture).

 

Section 8.07                                Unconditional Rights of Holders to Receive Payment and to Convert.

 

Notwithstanding any other provision in this
Indenture, the Holder of any Security shall have the right, which is absolute
and unconditional, to receive payment of the principal amount, Redemption
Price, Fundamental Change Repurchase Price, interest, including Special
Interest, if any, or Make-Whole Premium, if any, in respect of the Securities
held by such Holder, on or after the respective due dates expressed in the
Securities and this Indenture, and to convert such Security in accordance with Article 4,
and to bring suit for the enforcement of any such payment on or after such
respective due dates or for the right to convert in accordance with Article 4,
and shall not be impaired or affected without the consent of such Holder.

 

Section 8.08                                Collection of Indebtedness and Suits for Enforcement by the Trustee.

 

The Company covenants that if:

 

(a) 
a Default or Event of Default occurs in the payment of any interest, including
Special Interest, on any Security when such interest becomes due and payable
and such Default or Event of Default continues for a period of 30 days; or

 

(b) 
a Default or Event of Default occurs in the payment of the principal of or
premium, if any, on any Security at the Maturity thereof, the Company shall,
upon demand of the Trustee, pay to it, for the benefit of the Holders of such
Securities, the whole amount then due and payable (as expressed therein or as a
result of any acceleration effected pursuant to Section 8.02 hereof) on
such Securities for principal and premium, if any, and interest, including
Special Interest, and, to the extent that payment of such interest shall be
legally enforceable, interest on any overdue principal and premium, if any, and
on any overdue interest, including Special Interest, in each case at the
Interest Rate, and, in addition thereto, such further amount as shall be sufficient
to cover the costs and expenses of collection, including the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel.

 

If the Company fails to pay such amounts forthwith
upon such demand, the Trustee, in its own name and as trustee of an express
trust, may institute a judicial proceeding for the collection of the sums so
due and unpaid, may prosecute such proceeding to judgment or final decree and 

 

52

 

may
enforce the same against the Company and collect the moneys adjudged or decreed
to be payable in the manner provided by law out of the property of the Company,
wherever situated.

 

If an Event of Default occurs and is continuing, the
Trustee may in its discretion proceed to protect and enforce its rights and the
rights of the Holders of Securities by such appropriate judicial proceedings as
the Trustee shall deem most effectual to protect and enforce any such rights,
whether for the specific enforcement of any covenant or agreement in this
Indenture or in aid of the exercise of any power granted herein, or to enforce
any other proper remedy.

 

Section 8.09                                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 the
property of the Company or its creditors, the Trustee (irrespective of whether
the principal of the Securities shall then be due and payable as therein
expressed or by declaration or otherwise and irrespective of whether the
Trustee shall have made any demand on the Company for the payment of overdue
principal or interest, including Special Interest, if any) shall be entitled
and empowered, by intervention in such proceeding or otherwise, (1) to
file and prove a claim for the whole amount of principal and premium, if any,
and interest, including Special Interest, if any, owing and unpaid in respect
of the Securities and to file such other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee (including
any claim for the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel, and any other amounts due to the
Trustee hereunder) and of the Holders of Securities allowed in such judicial
proceeding, and (2) to collect and receive any moneys or other property
payable or deliverable on any such claim and to distribute the same; and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such judicial proceedings is hereby authorized by each
Holder of Securities to make such payments to the Trustee and, in the event
that the Trustee shall consent to the making of such payments directly to the
Holders of Securities, to pay to the Trustee any amount due to it for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel and any other amounts due the Trustee under Section 7.06
of the Base Indenture.

 

Nothing contained herein shall be deemed to
authorize the Trustee to authorize or consent to or accept, or adopt on behalf
of any Holder of a Security, 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 of a Security in any such proceeding.

 

Section 8.10                                Restoration of Rights and Remedies.

 

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

 

53

 

Section 8.11           Rights and Remedies Cumulative.

 

Except
as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in Section 2.07 of the Base
Indenture, no right or remedy conferred in this Indenture upon or reserved to
the Trustee or to the Holders of Securities is intended to be exclusive of any
other right or remedy, and every right and remedy shall, to the extent
permitted by law, be cumulative and in addition to every other right and remedy
given hereunder or hereafter existing at law or in equity or otherwise. The
assertion or employment of any right or remedy hereunder, or otherwise, shall
not prevent the concurrent assertion or employment of any other appropriate
right or remedy.

 

Section 8.12           Delay or Omission Not Waiver.

 

No
delay or omission of the Trustee or of any Holder of any Security to exercise
any right or remedy accruing upon any Event of Default shall impair any such
right or remedy or constitute a waiver of any such Event of Default or any
acquiescence therein. Every right and remedy given by this Article 8 or by
law to the Trustee or to the Holders of Securities may be exercised from time
to time, and as often as may be deemed expedient, by the Trustee or by the
Holders of Securities, as the case may be.

 

Section 8.13           Application of Money Collected.

 

Subject
to Article 5, any money and property collected by the Trustee pursuant to
this Article 8 shall be applied in the following order, at the date or
dates fixed by the Trustee and, in case of the distribution of such money and
property on account of principal or premium, if any, or interest, including
Special Interest, if any, upon presentation of the Securities and the notation
thereon of the payment if only partially paid and upon surrender thereof if
fully paid:

 

FIRST:
To the payment of all amounts due the Trustee;

 

SECOND:
To the payment of all Senior Debt of the Company if and to the extent required
by Article 5;

 

THIRD:
To the payment of the amounts then due and unpaid for principal of and premium,
if any, and interest, including Special Interest, if any, on the Securities and
coupons in respect of which or for the benefit of which such money has been
collected, ratably, without preference or priority of any kind, according to the
amounts due and payable on such Securities for principal and premium, if any,
and interest, including Special Interest, if any, respectively; and

 

FOURTH:
Any remaining amounts shall be repaid to the Company in accordance with the
provisions of Article 11.

 

Section 8.14           Undertaking for Costs.

 

All
parties to this Indenture agree, and each Holder of any Security by such Holder’s
acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit for the enforcement of any right or remedy
under this Indenture, or in any suit against 

 

54

 

the
Trustee for any action taken, suffered or omitted by it as Trustee, the filing
by any party litigant in such suit of an undertaking to pay the costs of such
suit, and that such court may in its discretion assess reasonable costs,
including reasonable attorneys’ fees, against any party litigant in such suit,
having due regard to the merits and good faith of the claims or defenses made
by such party litigant; but the provisions of this Section shall not apply
to any suit instituted by the Company, to any suit instituted by the Trustee,
to any suit instituted by any Holder, or group of Holders, holding in the
aggregate more than 10% in aggregate principal amount of the Securities then
outstanding, or to any suit instituted by any Holder of any Security for the
enforcement of the payment of the principal of or premium, if any, or interest,
including Special Interest, if any, on any Security on or after the Stated
Maturity expressed in such Security (or, in the case of exercise of a
repurchase right in connection with a Fundamental Change, on or after the
Fundamental Change Repurchase Date) or for the enforcement of the right to
convert any Security in accordance with Article 4.

 

Section 8.15           Waiver of Stay or Extension Laws.

 

The
Company covenants (to the extent that it may lawfully do so) that it will not
at any time insist upon, or plead, or in any manner whatsoever claim to take
the benefit or advantage of, any stay or extension law wherever enacted, now or
at any time hereafter in force, which may affect the covenants or the
performance of this Indenture; and the Company (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such
law and covenants that it will not hinder, delay or impede the execution of any
power herein granted to the Trustee, but will suffer and permit the execution
of every such power as though no such law had been enacted.

 

Article 9

The Trustee

 

Section 9.01           Certain Duties and
Responsibilities.

 

(a) Whether
or not herein expressly so provided, every provision of this Indenture relating
to the conduct or affecting the liability of or affording protection to the
Trustee shall be subject to the provisions of this Section 9.01 and Section 7.01
of the Base Indenture.

 

(b) The
Trustee shall not be deemed to have notice or actual knowledge of any 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 a Default is received by
the Trustee pursuant to Section 13.02 hereof, and such notice references
the Securities and this Indenture.

 

(c) The
rights, privileges, protections, immunities and benefits given to the Trustee
hereunder, including, without limitation, its right to be indemnified, are
extended to, and shall be enforceable by, the Trustee in each of its capacities
hereunder, and each Paying Agent, authenticating agent, Conversion Agent or Registrar
acting hereunder.

 

Section 9.02           Certain Rights of Trustee.

 

Subject
to the provisions of Section 7.01 of the Base Indenture and subject to
Sections 315(a) through (d) of the TIA:

 

55

 

(a) The
Trustee may rely on any document believed by it to be genuine and to have been
signed or presented by the proper person. 
The Trustee need not investigate any fact or matter stated in the
document.

 

(b) Unless
otherwise specifically provided in this Indenture, any demand, request,
direction or notice from the Company shall be sufficient if signed by an
Officer of the Company.

 

(c) The
permissive rights of the Trustee to do things enumerated in this Indenture
shall not be construed as a duty unless so specified herein.

 

Article 10

Amendments; Supplements and Waivers

 

Section 10.01         Without Consent of Holders.

 

This
Section 10.01 hereby replaces and supersedes, solely with respect to the
3.35% Convertible Senior Subordinated Notes due 2015, Section 9.01 of the
Base Indenture.

 

The
Company and the Trustee may amend or supplement this Indenture or the
Securities without notice to or consent of any Holder of a Security for any of
the following purposes:

 

(a)  add to the
covenants of the Company for the benefit of the Holders of Securities;

 

(b)  surrender any
right or power herein conferred upon the Company;

 

(c)  make provision
with respect to the conversion rights of Holders of Securities pursuant to Section 4.10
hereof;

 

(d)  provide for the
assumption of the Company’s obligations to the Holders of Securities in the
case of a merger, consolidation, conveyance, transfer or lease pursuant to Article 10
of the Base Indenture;

 

(e)  increase the
Conversion Rate; provided, however, that such increase in the
Conversion Rate shall not adversely affect the interest of the Holders of
Securities (after taking into account tax and other consequences of such
increase) in any material respect;

 

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

 

(g)  cure any
ambiguity, correct or supplement any provision herein which may be inconsistent
with any other provision herein or which is otherwise defective; provided, however,
that such action pursuant to this clause (g) does not, in the good faith
opinion of the Board of Directors and the Trustee, adversely affect the
interests of the Holders of Securities in any material respect; and provided, further,
that no modification or amendment made to conform this Indenture or the
Securities to the section of the Final Prospectus entitled “Description of the
Notes” shall be deemed to adversely affect the interests of the Holders of the
Securities;

 

56

 

(h)  add or modify
any other provisions with respect to matters or questions arising under this
Indenture which the Company and the Trustee may deem necessary or desirable and
which shall not be inconsistent with the provisions of this Indenture, provided, however;
that such action pursuant to this clause (h) does not adversely affect the
interests of the Holders of Securities in any material respect;

 

(i) to comply with Article 10
of the Base Indenture;

 

(j) to provide for
uncertificated Securities in addition to or in place of Certificated
Securities;

 

(k) to provide for
the issuance of and establish the form and terms and conditions of additional
series of Securities;

 

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

 

(m) to provide for
the addition of a guaranty of the Securities by any other entity.

 

Section 10.02         With Consent of Holders.

 

This
Section 10.02 hereby replaces and supersedes, solely with respect to the
3.35% Convertible Senior Subordinated Notes due 2015, Section 9.02 of the
Base Indenture.

 

Except
as provided in this Section 10.02, this Indenture or the Securities may be
amended or supplemented, and noncompliance by the Company in any particular
instance with any provision of this Indenture or the Securities may be waived,
in each case (i) with the written consent of the Holders of at least a
majority in aggregate principal amount of the then-outstanding Securities, or (ii) by
the adoption of a resolution, at a meeting of Holders of the Securities then
outstanding at which a quorum is present, by the Holders of a majority in
aggregate principal amount of the then-outstanding Securities represented at
such meeting.

 

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

 

(a)  change the
Stated Maturity of the principal of, or any installment of interest, including
Special Interest, on, any Security;

 

(b)  impair the right
of any Holder to receive payment of principal, premium, if any, the Fundamental
Change Repurchase Price, the Redemption Price or interest, in respect of the
Securities held by that Holder on or after the respective due dates;

 

(c)  reduce the
interest rate or interest, including Special Interest, on any Security;

 

(d)  change the
currency of payment of principal of, premium, if any, or interest, including
Special Interest, on any Security;

 

57

 

(e)  impair the right
of any Holder to institute suit for the enforcement of any payment on or with
respect to, or the conversion of, any Security;

 

(f)  modify the
obligation of the Company to maintain an office or agency in The City of New
York pursuant to Section 2.04 hereof;

 

(g)  except as
permitted by Section 4.10 hereof, adversely affect the right to convert
any Security as provided in Article 4 hereof;

 

(h)  adversely affect
the right of Holders to require the Company to repurchase the Securities in the
event of a Fundamental Change;

 

(i)  modify the
subordination provisions of the Securities in a manner adverse to the Holders
of Securities;

 

(j)  modify any of
the provisions of this Section, Section 8.04 or Section 8.11, except
to increase any percentage contained herein or therein or to provide that
certain other provisions of this Indenture cannot be modified or waived without
the consent of the Holder of each outstanding Security affected thereby; or

 

(k)  reduce the
requirements of Section 12.04 hereof for quorum or voting, or reduce the
percentage in aggregate principal amount of the outstanding Securities the
consent of whose Holders is required for any such amendment or the consent of
whose Holders is required for any waiver provided for in this Indenture.

 

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

 

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

 

Section 10.03         Revocation and Effect of Consents.

 

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

 

Any
amendment or waiver once effective shall bind every Holder of each Series affected
by such amendment or waiver unless it is of the type described in any of clauses
(a) through (k) of Section 10.02. In that case, the amendment or
waiver shall bind each Holder of a Security 

 

58

 

who
has consented to it and every subsequent Holder of a Security or portion of a
Security that evidences the same debt as the consenting Holder’s Security.

 

The
Company may, but shall not be obligated to, fix a record date for the purpose
of determining the Holders entitled to give their consent or take any other
action set forth in this Section or required or permitted to be taken
pursuant to this Indenture. If a record date is fixed, then notwithstanding the
immediately preceding paragraph, those Persons who were Holders at such record
date (or their duly designated proxies), and only those persons, shall be
entitled to give such consent or to revoke any consent previously given or to
take any such action, whether or not such Persons continue to be Holders after
such record date.

 

Article 11

Satisfaction and Discharge

 

Section 11.01         Satisfaction and Discharge of
Indenture.

 

This
Section 11.01 hereby replaces and supersedes, solely with respect to the
3.35% Convertible Senior Subordinated Notes due 2015, Sections 11.01 and 11.02
of the Base Indenture.

 

If
at any time:  (a) the Company shall have delivered to the Trustee for
cancellation all Securities theretofore authenticated (other than any
Securities that have been destroyed, lost or stolen and that have been replaced
or paid as provided in Section 2.07 of the Base Indenture); or (b) all
such Securities not theretofore delivered to the Trustee for cancellation shall
have become due and payable or been submitted for conversion pursuant to Article 4,
and the Company shall deposit or cause to be deposited with the Trustee as
trust funds the entire amount in cash, or, in the case of conversions, Common
Stock, sufficient (after giving effect to the provisions of Article 5) to
pay all amounts due and payable to the Holders of all Securities not
theretofore delivered to the Trustee for cancellation, including principal (and
premium, if any) and interest, including Special Interest, if any, as the case
may be, and if the Company shall also pay or cause to be paid all other sums
payable hereunder with respect to the Securities by the Company, then this Indenture
shall thereupon cease to be of further effect with respect to the Securities
except for Sections 7.06 and 11.05 of the Base Indenture, that shall survive to
such date and thereafter, and the Trustee, on demand of the Company and at the
cost and expense of the Company, shall execute proper instruments acknowledging
satisfaction of and discharging this Indenture.

 

Section 11.02         Deposited Cash to be Held in Trust.

 

Subject
to Section 11.05 of the Base Indenture and Article 5 hereof, all cash
(or in the case of conversions, Common Stock) deposited with the Trustee
pursuant to Section 11.01 hereof shall be held in trust and applied by it
to the payment, notwithstanding the provisions of Article 5 hereof, either
directly or through any Paying Agent (including the Company if acting as its
own Paying Agent), to the Holders of the particular Securities for the payment,
redemption, conversion or repurchase of which such cash (or in the case of
conversions, Common Stock) has been deposited with the Trustee, of all sums due
thereon for principal, premium, if any and interest, including Special
Interest, if any.

 

59

 

Article 12

Meeting of Holders of Securities

 

Section 12.01         Purposes for Which Meetings May Be
Called.

 

A
meeting of Holders of Securities may be called at any time and from time to
time pursuant to this Article 12 to make, give or take any request,
demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be made, given or taken by Holders of Securities.

 

Notwithstanding
anything contained in this Article 12, the Trustee may, during the
pendency of a Default or an Event of Default, call a meeting of Holders of
Securities in accordance with its standard practices.

 

Section 12.02         Call Notice and Place of Meetings.

 

The
Trustee may at any time call a meeting of Holders of Securities for any purpose
specified in Section 12.01 hereof, to be held at such time and at such
place in The City of New York. Notice of every meeting of Holders of
Securities, setting forth the time and the place of such meeting, in general
terms the action proposed to be taken at such meeting and the percentage of the
principal amount of the then-outstanding Securities which shall constitute a quorum
at such meeting, shall be given, in the manner provided in the Indenture
hereof, not less than 21 nor more than 180 days prior to the date fixed for the
meeting.

 

In
case at any time the Company, pursuant to a resolution of the Board of
Directors, or the Holders of at least 10% in principal amount of the Securities
then outstanding shall have requested the Trustee to call a meeting of the
Holders of Securities for any purpose specified in Section 12.01 hereof,
by written request setting forth in reasonable detail the action proposed to be
taken at the meeting, and the Trustee shall not have made the first publication
of the notice of such meeting within 21 days after receipt of such request or
shall not thereafter proceed to cause the meeting to be held as provided
herein, then the Company or the Holders of Securities in the amount specified,
as the case may be, may determine the time and the place in The City of New
York for such meeting and may call such meeting for such purposes by giving
notice thereof as provided in the first paragraph of this Section.

 

Section 12.03         Persons Entitled to Vote at Meetings.

 

To
be entitled to vote at any meeting of Holders of Securities, a Person shall be (a) a
Holder of one or more outstanding Securities, or (b) a Person appointed by
an instrument in writing as proxy for a Holder or Holders of one or more
outstanding Securities by such Holder or Holders. The only Persons who shall be
entitled to be present or to speak at any meeting of Holders shall be the
Persons entitled to vote at such meeting and their counsel, any representatives
of the Trustee and its counsel and any representatives of the Company and its
counsel.

 

60

 

Section 12.04         Quorum; Action.

 

The
Persons entitled to vote a majority in principal amount of the then-outstanding
Securities shall constitute a quorum. In the absence of a quorum within 30
minutes of the time appointed for any such meeting, the meeting shall, if
convened at the request of Holders of Securities, be dissolved. In any other
case, the meeting may be adjourned for a period of not less than 10 days as
determined by the chairman of the meeting prior to the adjournment of such
meeting. In the absence of a quorum at any such adjourned meeting, such
adjourned meeting may be further adjourned for a period of not less than 10
days as determined by the chairman of the meeting prior to the adjournment of
such adjourned meeting. Notice of the reconvening of any adjourned meeting
shall be given as provided in Section 12.02 hereof, except that such
notice need be given only once and not less than five days prior to the date on
which the meeting is scheduled to be reconvened.

 

At
a meeting or an adjourned meeting duly reconvened and at which a quorum is present
as aforesaid, any resolution and all matters (except as limited by the third
paragraph of Section 9.02 hereof and Section 7.02 of the Base
Indenture) shall be effectively passed and decided if passed or decided by the
Persons entitled to vote not less than a majority in principal amount of
Securities then outstanding represented and voting at such meeting.

 

Any
resolution passed or decisions taken at any meeting of Holders of Securities
duly held in accordance with this Section shall be binding on all the
Holders of Securities, whether or not present or represented at the meeting.

 

Section 12.05         Determination of Voting Rights;
Conduct and Adjournment of Meetings.

 

Notwithstanding
any other provisions of this Indenture, the Trustee may make such reasonable
regulations as it may deem advisable for any meeting of Holders of Securities
in regard to proof of the holding of Securities and of the appointment of
proxies and in regard to the appointment and duties of inspectors of votes, the
submission and examination of proxies, certificates and other evidence of the
right to vote, and such other matters concerning the conduct of the meeting as
it shall deem appropriate.

 

The
Trustee shall, by an instrument in writing, appoint a temporary chairman (which
may be the Trustee) of the meeting, unless the meeting shall have been called
by the Company or by Holders of Securities as provided in Section 12.02
hereof, in which case the Company or the Holders of Securities calling the
meeting, as the case may be, shall in like manner appoint a temporary chairman.
A permanent chairman and a permanent secretary of the meeting shall be elected
by vote of the Persons entitled to vote a majority in principal amount of the
outstanding Securities represented at the meeting.

 

At
any meeting, each Holder of a Security or proxy shall be entitled to one vote
for each $1,000 principal amount of Securities held or represented by him; provided, however,
that no vote shall be cast or counted at any meeting in respect of any Security
challenged as not outstanding and ruled by the chairman of the meeting to be
not outstanding. The chairman of the meeting shall have no right to vote,
except as a Holder of a Security or proxy.

 

61

 

Any
meeting of Holders of Securities duly called pursuant to Section 12.02
hereof at which a quorum is present may be adjourned from time to time by
Persons entitled to vote a majority in principal amount of the then-outstanding
Securities represented at the meeting, and the meeting may be held as so
adjourned without further notice.

 

Section 12.06       Counting Votes and Recording Action of
Meetings.

 

The
vote upon any resolution submitted to any meeting of Holders of Securities
shall be by written ballots on which shall be subscribed the signatures of the
Holders of Securities or of their representatives by proxy and the principal
amounts and serial numbers of the outstanding Securities held or represented by
them. The permanent chairman of the meeting shall appoint two inspectors of
votes who shall count all votes cast at the meeting for or against any
resolution and who shall make and file with the secretary of the meeting their
verified written reports in duplicate of all votes cast at the meeting. A record,
at least in duplicate, of the proceedings of each meeting of Holders of
Securities shall be prepared by the secretary of the meeting and there shall be
attached to said record the original reports of the inspectors of votes on any
vote by ballot taken thereat and affidavits by one or more Persons having
knowledge of the facts setting forth a copy of the notice of the meeting and
showing that said notice was given as provided in Section 12.02 hereof
and, if applicable, Section 12.04 hereof. Each copy shall be signed and
verified by the affidavits of the permanent chairman and secretary of the
meeting and one such copy shall be delivered to the Company and another to the
Trustee to be preserved by the Trustee, the latter to have attached thereto the
ballots voted at the meeting. Any record so signed and verified shall be
conclusive evidence of the matters therein stated.

 

Article 13

Miscellaneous

 

Section 13.01       Notices.

 

This
Section 13.01 hereby replaces and supersedes, solely with respect to the
3.35% Convertible Senior Subordinated Notes due 2015, Section 13.03 of the
Base Indenture.

 

Any
notice or communication to the Company or the Trustee is duly given if in
writing and delivered in person or mailed by first-class mail to the address
set forth below:

 

if
to the Company:

 

Vertex
Pharmaceuticals Incorporated

130
Waverly Street

Cambridge,
MA  02139

Attention:  General Counsel

 

with
a copy to:

 

Mintz,
Levin, Cohn, Ferris, Glovsky

and
Popeo, P.C.

One Financial Center

Boston, MA 
02111

 

62

 

Attention: 
Michael L. Fantozzi, Esq.

 

if
to the Trustee:

 

U.S.
Bank National Association

Corporate
Trust Department

One
Federal Street, Boston, MA 02110

Attention:
Karen R. Beard

 

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

 

Any
notice or communication to a Holder shall be mailed by first-class mail to his
address shown on the Register kept by the Security Registrar.  Failure to mail a notice or communication to
a Holder or any defect in such notice or communication shall not affect its
sufficiency with respect to other Holders.

 

If
a notice or communication is mailed or sent in the manner provided in this Section within
the time prescribed, it is duly given as of the date it is mailed, whether or
not the addressee receives it, except that notice to the Trustee shall only be
effective upon receipt thereof by the Trustee.

 

If
the Company mails a notice or communication to Holders, it shall mail a copy to
the Trustee at the same time.

 

Section 13.02       Acts of Holders of Securities.

 

(a)  Any request,
demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Holders of Securities may be
embodied in and evidenced by:

 

(1)                                 one or more
instruments of substantially similar tenor signed by such Holders in person or
by agent or proxy duly appointed in writing;

 

(2)                                 the record of
Holders of Securities voting in favor thereof, either in person or by proxies
duly appointed in writing, at any meeting of Holders of Securities duly called
and held in accordance with the provisions of Article 11; or

 

(3)                                 a combination
of such instruments and any such record.

 

Except
as herein otherwise expressly provided, such action shall become effective when
such instrument or instruments or record or both are delivered to the Trustee
and, where it is hereby expressly required, to the Company.  Such instrument or instruments and record
(and the action embodied therein and evidenced thereby) are herein sometimes
referred to as the “Act” of the Holders of Securities signing such instrument
or instruments and so voting at such meeting. 
Proof of execution of any such instrument or of a writing appointing any
such agent or proxy, or of the holding by any Person of a Security, shall be
sufficient for any purpose of this Indenture 

 

63

 

and
(subject to Section 7.01 of the Base Indenture) conclusive in favor of the
Trustee and the Company if made in the manner provided in this Section.  The record of any meeting of Holders of
Securities shall be proved in the manner provided in Section 12.06 hereof.

 

(b)  The fact and
date of the execution by any Person of any such instrument or writing may be
provided in any manner which the Trustee reasonably deems sufficient.

 

(c)  The principal
amount and serial numbers of Securities held by any Person, and the date of
such Person holding the same, shall be proved by the Register.

 

(d)  Any request,
demand, authorization, direction, notice, consent, election, waiver or other
Act of the Holders 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.

 

Section 13.03       Certificate and Opinion as to
Conditions Precedent.

 

Any
certificate or opinion of an officer of the Company may be based, insofar as it
relates to legal matters, upon an Opinion of Counsel, unless such officer
knows, or in the exercise of reasonable care should know, that the Opinion of
Counsel with respect to the matters upon which such certificate or opinion is
based is erroneous.  Any such Opinion of
Counsel may be based, insofar as it relates to factual matters, upon a certificate
or representations by, an officer or officers of the Company stating that the
information with respect to such factual matters is in the possession of the
Company, unless such counsel knows, or in the exercise of reasonable care
should know, that the certificate 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 13.04       Governing Law.

 

THIS SUPPLEMENTAL INDENTURE AND THE SECURITIES SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

 

Section 13.05       Counterparts.

 

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

 

Section 13.06       Legal Holidays.

 

In
any case where any Interest Payment Date, Redemption Date or Stated Maturity of
any Security or the last day on which a Holder of a Security has a right to
convert such Security shall 

 

64

 

not
be a Business Day at any Place of Payment or place of conversion, then (notwithstanding
any other provision of this Indenture or of the Securities) payment of interest
or principal or premium, if any, or conversion of the Securities, need not be
made at such place of payment or place of conversion on such day, but may be
made on the next succeeding Business Day at such place of payment or place of
conversion with the same force and effect as if made on the Interest Payment
Date or redemption date or at the Stated Maturity or on such last day for
conversion, provided, that in the case that payment is made on such succeeding
Business Day, no interest shall accrue on the amount so payable for the period
from and after such Interest Payment Date, Redemption Date or Stated Maturity,
as the case may be.

 

Section 13.07       Calculations in Respect of Securities.

 

Except
as explicitly stated herein, the Company will be responsible for making all
calculations required pursuant to this Indenture, including, without
limitation, calculations with respect to determinations of the Conversion Price
and Conversion Rate. The Company shall make all such calculations in good faith
and, absent manifest error, the Company’s calculations shall be binding on the
Holders. The Company shall provide a written schedule of such calculations to
the Trustee, and the Trustee shall be entitled to rely upon the accuracy of the
Company’s calculations without responsibility for independent verification
thereof. The Trustee shall forward a copy of such calculations to any Holder
upon such Holder’s written request.

 

Section 13.08       No Security Interest Created.

 

Nothing
in this Indenture or in the Securities, express or implied, shall be construed
to constitute a security interest under the Uniform Commercial Code or similar
legislation, now in effect or hereafter enacted and made effective, in any
jurisdiction.

 

[SIGNATURE PAGE FOLLOWS]

 

65

 

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

 

	
   

  	
  VERTEX PHARMACEUTICALS INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Ian F. Smith

  
	
   

  	
   

  	
  Name:
  Ian F. Smith

  
	
   

  	
   

  	
  Title:
  Executive Vice President and Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  U.S. BANK NATIONAL ASSOCIATION, AS TRUSTEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Karen R. Beard

  
	
   

  	
   

  	
  Name:
  Karen R. Beard

  
	
   

  	
   

  	
  Title:
  Vice President

  

 

 

EXHIBIT A

FORM OF SECURITY

 

[FORM OF FACE OF SECURITY]

 

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

 

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

 

1

 

VERTEX PHARMACEUTICALS INCORPORATED

 

3.35% Convertible Senior Subordinated Notes due 2015

 

CUSIP NO. 92532F AN0

 

	
  No.

  	
  $

  

 

VERTEX
PHARMACEUTICALS INCORPORATED, a Massachusetts corporation (the “Company”, which
term includes any successor corporation under the Indenture hereinafter
referred to), for value received, hereby promises to pay to Cede &
Co., or its registered assigns, the principal sum of   U.S.
Dollars ($) on October 1, 2015.

 

Interest Payment Dates:  April 1
and October 1, commencing April 1, 2011.

 

Regular Record Dates:  March 15
and September 15.

 

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

 

[SIGNATURE PAGE FOLLOWS]

 

2

 

IN
WITNESS WHEREOF, the Company has caused this Security to be duly executed
manually or by facsimile by its duly authorized officers.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  VERTEX
  PHARMACEUTICALS INCORPORATED

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

 

Trustee’s
Certificate of Authentication

 

This
is one of the 3.35% Convertible Senior Subordinated Notes due 2015 described in
the within-named Indenture.

 

	
  U.S. BANK NATIONAL ASSOCIATION,

  	
   

  
	
  as Trustee

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  

 

3

 

[FORM OF REVERSE SIDE OF SECURITY]

 

VERTEX PHARMACEUTICALS INCORPORATED

 

3.35% Convertible Senior Subordinated Notes due 2015

 

1.                                      INTEREST

 

The
Company promises to pay interest on the principal amount of this Security at
the rate of 3.35% per annum. The Company shall pay interest semi-annually in
arrears on April 1 and October 1 of each year (each, an “Interest Payment Date”), commencing on April 1,
2011. Interest on the Securities shall accrue from the most recent date to
which interest has been paid or, if no interest has been paid, from April 1,
2011. Interest will be computed on the basis of a 360-day year composed of
twelve 30-day months.

 

If
the Company redeems this Security pursuant to Section 5 of this Security,
on a date that is after the Regular Record Date and prior to the corresponding
Interest Payment Date, interest, including Special Interest, if any, accrued
and unpaid hereon to, but not including, the applicable Redemption Date, will
be paid to the Holder in whose name the Securities are registered as of the
close of business on the Regular Record Date immediately preceding the
applicable Redemption Date.

 

If
the Holder elects to require the Company to repurchase this Security pursuant
to Section 6 of this Security, on a date that is after the Regular Record
Date and prior to the corresponding Interest Payment Date, interest, including
Special Interest, if any, accrued and unpaid hereon to, but not including, the
applicable Fundamental Change Repurchase Date, will be paid to the Holder in
whose name the Securities are registered as of the close of business on the
Regular Record Date immediately preceding the applicable Fundamental Change
Repurchase Date.

 

A
Holder of any Security at the close of business on a Regular Record Date shall
be entitled to receive interest, including Special Interest, if any, on such
Security on the corresponding Interest Payment Date. A Holder of any Security
which is converted after the close of business on a Regular Record Date and
prior to the corresponding Interest Payment Date (other than any Security whose
Maturity is prior to such Interest Payment Date) shall be entitled to receive
interest, including Special Interest, if any, on the principal amount of such
Security, notwithstanding the conversion of such Security prior to such
Interest Payment Date. However, any such Holder which surrenders any such
Security for conversion during the period between the close of business on such
Regular Record Date and ending with the opening of business on the
corresponding Interest Payment Date shall be required to pay the Company an
amount equal to the interest, including Special Interest, if any, on the
principal amount of such Security so converted (but excluding any overdue
interest, including Special Interest, if any, on the principal amount of such
Security so converted that exists at the time such Holder surrenders such
Security for conversion), which is payable by the Company to such Holder on
such Interest Payment Date, at the time such Holder surrenders such Security for
conversion. Notwithstanding the foregoing, any such Holder which surrenders for
conversion any Security (a) with respect to 

 

4

 

which
the Company has specified a Fundamental Change Repurchase Date or a Redemption
Date, in either case, that is after such Regular Record Date and on or prior to
the next succeeding Interest Payment Date, or (b) after the last Regular
Record Date prior to the Final Maturity Date, in either case, shall be entitled
to receive (and retain) such interest, including Special Interest, if any, and
need not pay the Company an amount equal to the interest, including Special
Interest, if any, on the principal amount of such Security so converted at the
time such Holder surrenders such Security for conversion.

 

2.                                      METHOD OF
PAYMENT

 

The
Company shall pay interest, including Special Interest, if any, on this
Security (except defaulted interest) to the person who is the Holder of this
Security at the close of business on March 15 and September 15, as
the case may be (each, a “Regular Record
Date”) immediately preceding the related Interest Payment Date.
The Holder must surrender this Security to a Paying Agent to collect payment of
principal. The Company will pay principal and interest and Special Interest, if
any, in money of the United States that at the time of payment is legal tender
for payment of public and private debts. The Company may pay principal and
interest, including Special Interest, if any, in respect of any Certificated
Security by check or wire transfer payable in such money; provided, however,
that a Holder with an aggregate principal amount in excess of $5,000,000 will
be paid by wire transfer in immediately available funds at the election of such
Holder if such Holder has provided wire transfer instructions to the Trustee at
least 10 Business Days prior to the Interest Payment Date. The Company may mail
an interest check to the Holder’s registered address. Notwithstanding the
foregoing, so long as this Security is registered in the name of a Depositary
or its nominee, all payments hereon shall be made by wire transfer of
immediately available funds to the account of the Depositary or its nominee.

 

Any
wire transfer instructions received by the Trustee will remain in effect until
revoked by the Holder.

 

3.                                      PAYING AGENT,
REGISTRAR AND CONVERSION AGENT

 

Initially,
U.S. Bank National Association (the “Trustee,”
which term shall include any successor trustee under the Indenture hereinafter
referred to) will act as Paying Agent, Security Registrar and Conversion Agent.
The Company may change any Paying Agent, Security Registrar or Conversion Agent
without notice to the Holder. The Company or any of its Subsidiaries may,
subject to certain limitations set forth in the Indenture, act as Paying Agent
or Security Registrar.

 

4.                                      INDENTURE,
LIMITATIONS

 

This
Security is one of a duly authorized issue of Securities of the Company
designated as its 3.35% Convertible Senior Subordinated Notes Due 2015 (the “Securities”), issued under the Subordinated
Indenture dated as of September 28, 2010 (the “Base Indenture” and, as supplemented,
the “Indenture”), between
the Company and the Trustee as supplemented by the First Supplemental Indenture
thereto dated as of September 28, 2010 between the Company and the
Trustee. The terms of this Security include those stated in the Indenture and
those required by 

 

5

 

or
made part of the Indenture by reference to the TIA, as in effect on the date of
the Indenture. This Security is subject to all such terms, and the Holder of
this Security is referred to the Indenture and TIA for a statement of them.

 

The
Securities are a series of senior subordinated unsecured obligations of the
Company limited to $400,000,000 in aggregate principal amount at maturity. The
Indenture does not limit the incurrence of other debt of the Company or its
existing or future Subsidiaries, secured or unsecured.

 

5                                         REDEMPTION.

 

Provisional Redemption.  Prior
to October 1, 2013, the Company may, at its option, redeem the
Securities in whole or in part on any date from time to time, upon notice to the Holders as
provided in the Indenture, at a
Redemption Price equal to 100% of the principal amount of the notes to be
redeemed; provided that
such right may be exercised only if the Closing Price of the Common Stock has
exceeded 130% of the applicable
Conversion Price for at least 20 Trading Days within a period of 30 consecutive
Trading Days. If the Company elects to redeem the Securities during this
period, it shall make an Additional Payment upon Provisional Redemption in an
amount equal to $100.50 per $1,000 principal amount, less the amount of any
interest paid on such Securities from issuance.

 

Optional Redemption.  The Company may, on or after October 1,
2013, at its option, redeem the Securities in whole or in part on any date from
time to time, upon notice to the Holders as provided in the Indenture, at a
Redemption Price equal to a percentage
of the principal amount of the Securities to be redeemed set forth below, plus
accrued and unpaid interest, if any, to but excluding the Redemption Date.

 

	
  From and After

  	
   

  	
  Redemption

  Price

  	
   

  
	
  October 1,
  2013

  	
   

  	
  101.34

  	
  %

  
	
  October 1,
  2014

  	
   

  	
  100.67

  	
  %

  

 

On
and after the Redemption Date, interest ceases to accrue on Securities or
portions of Securities called for redemption, unless the Company defaults in
the payment of the redemption price and accrued and unpaid interest.

 

6.                                      PURCHASE OF
SECURITIES AT OPTION OF HOLDER UPON A FUNDAMENTAL CHANGE

 

If
a Fundamental Change occurs, at the option of the Holder and subject to the
terms and conditions of the Indenture, the Company shall become obligated to
purchase for cash, subject to certain exceptions described in the Indenture all
or any part specified by the Holder (so long as the principal amount of such
part is $1,000 or an integral multiple of $1,000) of the Securities held by
such Holder on a date specified by the Company that is no later than 30 days
after the date of the Fundamental Change Company Notice, at a purchase price
equal to 100% of the principal amount thereof together with unpaid interest,
including Special Interest, if any, accrued to, but excluding, the Fundamental
Change Repurchase Date. A Fundamental Change Company 

 

6

 

Notice
shall be given by the Company to the Holders as provided in the Indenture. To
exercise such repurchase right, a Holder must deliver to the Trustee a
Fundamental Change Repurchase Notice as provided in the Indenture.

 

7.                                      CONVERSION

 

Subject
to and upon compliance with the provisions of the Indenture, a Holder may
surrender for conversion any Security that is $1,000 principal amount or
integral multiples thereof.

 

Subject
to certain conditions provided for in the Indenture, in certain circumstances,
a Holder may receive an amount in Common Stock equal to the Make-Whole Premium,
in addition to the shares of Common Stock issuable upon conversion of such
Security.

 

The
Conversion Rate shall be initially equal to 20.4794 shares of Common Stock per
$1,000 principal amount of Securities. The Conversion Rate shall be adjusted
under certain circumstances as provided in the Indenture.

 

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

 

8.                                      SUBORDINATION

 

The
Indebtedness evidenced by this Security is, to the extent and in the manner
provided in the Indenture, subordinated and subject in right of payment to the
prior payment in full of all amounts then due on all Senior Debt of the
Company; provided, however, that the Securities, the
Indebtedness represented thereby and the payment of the principal of and
premium, if any, and interest on the Securities in all respects shall rank
equally with, or prior to, all existing and future Indebtedness of the Company
that is expressly subordinated to any Senior Debt, and this Security is issued
subject to such provisions of the Indenture with respect thereto. Each Holder
of this Security, by accepting the same, (a) agrees to and shall be bound
by such provisions, (b) authorizes and directs the Trustee on such Holder’s
behalf to take such action as may be necessary or appropriate to effectuate the
subordination so provided, and (c) appoints the Trustee such Holder’s
attorney-in-fact for any and all such purposes.

 

9.                                      DENOMINATIONS,
TRANSFER, EXCHANGE

 

The
Securities are in registered form, without coupons, in denominations of $1,000
principal amount and integral multiples of $1,000 principal amount. A Holder
may register the transfer of or exchange Securities in accordance with the
Indenture. The Security Registrar may require a Holder, among other things, to
furnish appropriate endorsements and transfer documents and to pay any taxes or
other governmental charges that may be imposed in relation thereto by law or
permitted by the Indenture.

 

10.                               PERSONS DEEMED
OWNERS

 

The
Holder of a Security may be treated as the owner of it for all purposes.

 

7

 

11.                               UNCLAIMED MONEY

 

If
money for the payment of principal or interest, including Special Interest, if
any, remains unclaimed for two years, the Trustee and any Paying Agent will pay
the money back to the Company at its written request, subject to applicable
unclaimed property law and the provisions of the Indenture. After that, Holders
entitled to money must look to the Company for payment as general creditors
unless an applicable abandoned property law designates another person.

 

12.                               DISCHARGE PRIOR
TO MATURITY.

 

Subject
to certain conditions contained in the Indenture, the Company may discharge its
obligations under the Securities and the Indenture if (1) all of the
Securities then outstanding shall become due and payable or been submitted for
conversion, and (2) the Company shall have deposited with the Trustee cash
sufficient to pay the principal of, and premium, if any, and interest,
including Special Interest, if any, on all of the outstanding Securities.

 

13.                               AMENDMENT,
SUPPLEMENT AND WAIVER

 

The
Indenture permits, with certain exceptions as therein provided, the amendment
thereof and the modification of the rights and obligations of the Company and
the rights of the Holders of the Securities under the Indenture at any time by
the Company and the Trustee with the consent of the Holders of a majority in
aggregate principal amount of the Securities then outstanding (or such lesser
amount as shall have acted at a meeting pursuant to the provisions of the
Indenture). The Indenture also contains provisions permitting the Holders of
specified percentages in principal amount of the Securities at the time
outstanding, on behalf of the Holders of all the Securities, to waive
compliance by the Company with certain provisions of the Indenture and certain
past defaults under the Indenture and their consequences. Any such consent or
waiver by the Holder of this Security shall be conclusive and binding upon such
Holder and upon all future Holders of this Security and of any Security issued
upon registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Security or
such other Security.

 

No
reference herein to the Indenture and no provision of this Security or of the
Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and premium, if any, and
interest, including Special Interest, if any, on this Security at the times,
places and rate, and in the coin or currency, herein prescribed or to convert
this Security as provided in the Indenture.

 

14.                               SUCCESSOR
ENTITY

 

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

 

8

 

15.                               DEFAULTS AND
REMEDIES

 

Under
the Indenture, an Event of Default shall occur if:

 

(a) 
the Company shall fail to pay when due the principal, Redemption Price or any
Fundamental Change Repurchase Price of any Security, including any Make-Whole
Premium, when the same becomes due and payable whether at the Final Maturity
Date, upon repurchase, redemption, acceleration or otherwise whether or not
such payment is prohibited by Article 5 of the Indenture; or

 

(b) 
the Company shall fail to pay an installment of interest, including Special
Interest, if any, on any of the Securities, which failure continues for 30 days
after the date when due whether or not such payment is prohibited by Article 5
hereof; or

 

(c) 
the Company shall fail to deliver when due all shares of Common Stock, together
with cash in lieu of fractional shares deliverable upon conversion of the
Securities, which failure continues for 10 days; or

 

(d) 
the Company fails to perform or observe any other term, covenant or agreement
contained in the Securities or the Indenture and the failure continues for a
period of 60 days after written notice of such failure, requiring the Company
to remedy the same, shall have been given to the Company by the Trustee or to
the Company and the Trustee by the Holders of at least 25% in aggregate
principal amount of the then-outstanding Securities; or

 

(e) 
(i) the Company fails to make any payment by the end of the applicable
grace period, if any, after the maturity of any Indebtedness for borrowed money
in an amount in excess of $5,000,000, or (ii) there is an acceleration of
any Indebtedness for borrowed money in an amount in excess of $5,000,000
because of a default with respect to such Indebtedness without such
Indebtedness having been discharged or such acceleration having been cured,
waived, rescinded or annulled, in the case of either (i) or (ii), for a
period of 30 days after written notice to the Company by the Trustee or to the
Company and the Trustee by Holders of at least 25% in aggregate principal
amount of the then-outstanding Securities; or

 

(f) 
the Company fails to provide a Fundamental Change Company Notice in accordance
with Section 3.07 of the Indenture; or

 

(g) 
certain events of bankruptcy, insolvency or reorganization as specified in the
Indenture.

 

If
an Event of Default shall occur and be continuing, the principal of all the
Securities may be declared due and payable in the manner and with the effect
provided in the Indenture.

 

Notwithstanding
the foregoing or anything to the contrary set forth in the Indenture, to the
extent elected by the Company, the sole remedy for an Event of Default relating
to the failure to comply with the reporting obligations set forth in Section 5.03
of the Base Indenture and for any failure to comply with the requirements of Section 314(a)(1) of
the Trust Indenture Act will for the first 180 days after the occurrence of
such an Event of Default consist exclusively of the right to receive special
interest on the Securities at an annual rate equal to 1.0% of the principal
amount of the Securities (“Special
Interest”). The Special Interest will accrue on all outstanding
Securities from and including the date on which an Event of Default relating to
a failure to 

 

9

 

comply
with the reporting obligations set forth in Section 5.03 of the Base Indenture
first occurs to but not including the 180th day thereafter (or such earlier
date on which the Event of Default shall have been cured or waived). On such
180th day (or earlier, if the Event of Default relating to the reporting
obligations is cured or waived prior to such 180th day), such Special Interest
will cease to accrue and, if the Event of Default relating to reporting
obligations has not been cured or waived prior to such 180th day, the
Securities will be subject to acceleration as provided for in Section 8.02
of the Indenture. In the event the Company does not elect to pay Special
Interest upon an Event of Default in accordance with this paragraph, the
Securities will be subject to acceleration as provided for above. If the
Company elects to pay Special Interest as the sole remedy for an Event of
Default relating to the failure to comply with reporting obligations in Section 5.03
of the Base Indenture or for any failure to comply with the requirements of Section 314(a)(1) of
the TIA in, the Company will notify all Holders, the Trustee and Paying Agent
of such election on or before the close of business on the date on which such
Event of Default first occurs.

 

16.                               NO RECOURSE
AGAINST OTHERS

 

A
director, officer, employee or shareholder, as such, of the Company shall not
have any liability for any obligations of the Company under the Securities or
the Indenture nor for any claim based on, in respect of or by reason of such
obligations or their creation. The Holder of this Security by accepting this Security
waives and releases all such liability. The waiver and release are part of the
consideration for the issuance of this Security.

 

17.                               AUTHENTICATION

 

This
Security shall not be valid until the Trustee or an Authenticating Agent
manually signs the certificate of authentication on the other side of this
Security.

 

18.                               ABBREVIATIONS
AND DEFINITIONS

 

Customary
abbreviations may be used in the name of the Holder 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 UGMA (= Uniform Gifts to Minors Act).

 

All
terms defined in the Indenture and used in this Security but not specifically
defined herein are defined in the Indenture and are used herein as so defined.

 

19.                               CUSIP NUMBERS.

 

Pursuant
to a recommendation promulgated by the Committee on Uniform Security
Identification Procedures, the Company has caused CUSIP numbers to be printed
on this Security. No representation is made as to the accuracy of such numbers
either as printed on this Security and reliance may be placed only on the other
identification numbers placed thereon.

 

10

 

20.                               INDENTURE TO
CONTROL; GOVERNING LAW

 

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

 

The
Company will furnish to any Holder, upon written request and without charge, a
copy of the Indenture. Requests may be made to: Vertex Pharmaceuticals
Incorporated, 130 Waverly Street, Cambridge, MA 
02139 Attention:  Investor
Relations.

 

11

 

ASSIGNMENT FORM

 

To
assign this Security, fill in the form below:

 

	
  I
  or we assign and transfer this Security to

  
	
   

  
	
   

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

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

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

  
	
   

  
	
   

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

  

 

 

	
  Date:

  	
   

  	
   

  	
  Your
  Signature:

  	
   

  
	
   

  	
   

  	
   

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

  

 

 

*Signature guaranteed by:

 

 

	
  By:

  	
   

  	
   

  

 

 

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

 

12

 

CONVERSION NOTICE

 

To
convert this Security, check the box:

o

 

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

 

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

 

	
   

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

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

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

  
	
   

  
	
   

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

  

 

 

	
  Date:

  	
   

  	
   

  	
  Your
  Signature:

  	
   

  
	
   

  	
   

  	
   

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

  

 

 

*Signature guaranteed by:

 

 

	
  By:

  	
   

  	
   

  

 

 

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

 

13

 

FUNDAMENTAL CHANGE REPURCHASE NOTICE

 

TO:  VERTEX
PHARMACEUTICALS INCORPORATED

130
Waverly Street

Cambridge,
Massachusetts  02139

 

The
undersigned registered owner of this Security hereby irrevocably acknowledges
receipt of a notice from VERTEX
PHARMACEUTICALS INCORPORATED (the “Company”) as to the occurrence of a Fundamental Change
with respect to the Company and requests and instructs the Company to purchase
the entire principal amount of this Security, or the portion thereof (which is
$1,000 or an integral multiple thereof) below designated, in accordance with
the terms of the Indenture referred to in this Security at the Fundamental
Change Repurchase Price to the registered Holder hereof.

 

 

	
  Date:

  	
   

  	
   

  	
  Your
  Signature:

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

Signature(s) must
be guaranteed by a qualified guarantor institution with membership in an
approved signature guarantee program pursuant to Rule 17Ad-15 under the
Securities Exchange Act of 1934.

 

	
   

  
	
  Signature
  Guaranty

  

 

 

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

 

NOTICE:
The signature to the foregoing Election must correspond to the Name as written
upon the face of this Security in every particular, without any alteration or
change whatsoever.

 

14

 

SCHEDULE OF EXCHANGES OF SECURITIES

 

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

 

	
  Date of Exchange

  	
   

  	
  Amount of 

  Decrease in 

  Principal 

  Amount of this 

  Security

  	
   

  	
  Amount of 

  Increase in 

  Principal 

  Amount of this 

  Security

  	
   

  	
  Principal 

  Amount of this 

  Global Security 

  following Each 

  Increase of 

  Decrease

  	
   

  	
  Signature of 

  Authorized 

  Officer of 

  Trustee

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

15

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