Document:

Exhibit
4.2

 

Medarex,
Inc.

 

2.25% Convertible Senior Notes due 2011

 

Registration Rights Agreement

 

	
   

  	
  May 3, 2004

  
	
   

  	
   

  
	
  Goldman, Sachs & Co.,

  	
   

  
	
  J.P. Morgan Securities Inc.

  	
   

  
	
  c/o Goldman, Sachs & Co.

  	
   

  
	
  85 Broad Street

  	
   

  
	
  New York, New York 10004

  	
   

  

 

Ladies and Gentlemen:

 

Medarex, Inc., a New Jersey corporation (the “Company”), proposes to
issue and sell to the Purchasers (as defined herein) upon the terms set forth
in the Purchase Agreement (as defined herein) an aggregate of $150,000,000
principal amount of 2.25% Convertible Senior Notes due 2011 (“Convertible
Notes”), convertible into shares of Common Stock, (the Convertible Notes and
Common Stock are collectively referred to herein as “Securities”).  As an inducement to the Purchasers to enter
into the Purchase Agreement and in satisfaction of a condition to the
obligations of the Purchasers thereunder, the Company agrees with the
Purchasers for the benefit of Holders (as defined herein) from time to time of
the Registrable Securities (as defined herein) as follows:

 

1.                                       Definitions.

 

(a)                                  Capitalized
terms used herein without definition shall have the meanings ascribed to them
in the Purchase Agreement.  As used in
this Agreement, the following defined terms shall have the following meanings:

 

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

 

“Closing
Date” means the First Time of Delivery as defined in the
Purchase Agreement.

 

“Commission”
means the United States Securities and Exchange Commission, or any other
federal agency at the time administering the Exchange Act or the Securities
Act, whichever is the relevant statute for the particular purpose.

 

 

“Common
Stock” means the Company’s common stock, par value $.01 per
share together with any associated preferred share purchase rights.

 

“DTC” means
The Depository Trust Company.

 

“Effective
Date” has the meaning assigned thereto in Section 2(b)(i)
hereof.

 

“Effective
Failure” has the meaning assigned thereto in Section 7(b)
hereof.

 

“Effectiveness
Period” has the meaning assigned thereto in Section 2(b)(i)
hereof.

 

“Effective
Time” means the time at which the Commission declares the
Shelf Registration Statement effec­tive or at which the Shelf Registration
Statement otherwise becomes effective.

 

“Electing
Holder” has the meaning assigned thereto in
Section 3(a)(iii) hereof.

 

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

 

“Holder”
means any person that is the record owner of Registrable Securities (and
includes any person that has a beneficial interest in any Registrable Security
in book-entry form).

 

“Indenture”
means the Indenture, dated as of May 3, 2004, between the
Company and Wilmington Trust Company, as amended and supplemented from time to
time in accordance with its terms.

 

“Liquidated Damages” has the meaning
assigned thereto in Section 7(a) hereof.

 

“Managing
Underwriters” means the investment banker or investment
bankers and manager or managers that shall administer an underwritten offering,
if any, conducted pursuant to Section 6 hereof.

 

“NASD
Rules” means the Rules of the National Association of
Securities Dealers, Inc., as amended from time to time.

 

“Notice
and Questionnaire” means a Notice of Registration Statement
and Selling Securityholder Questionnaire substantially in the form of Appendix
A hereto.

 

The term “person” means an individual, partnership, corporation,
limited liability company, trust or unincorporated organization, or a
government or agency or political subdivision thereof.

 

“Prospectus”
means the prospectus (including, without limitation, any preliminary
prospectus, any final prospectus and any prospectus that discloses information
previously omitted from a prospectus filed as part of an effective registration
statement in reliance upon Rule 430A under the Securities Act) included in
the Shelf Registration Statement, as amended or supplemented by any prospectus
supplement with respect to the terms of the offering of any portion of the
Registrable Securities covered by the Shelf Registration Statement and by all
other amendments and supplements to such prospectus, including all material
incorporated by

 

2

 

reference in such prospectus and all documents filed
after the date of such prospectus by the Company under the Exchange Act and
incorporated by reference therein.

 

“Purchase
Agreement” means the purchase agreement, dated as of April
27, 2004 between the Purchasers and the Company relating to the Securities.

 

“Purchasers”
means the Purchasers named in Schedule I to the Purchase
Agreement.

 

“Registrable
Securities” means all or any portion of the Securities issued
from time to time under the Indenture in registered form and the shares of
Common Stock issued or issuable upon conversion, repurchase or redemption of
such Securities; provided, however, that a security ceases to be
a Registrable Security when it is no longer a Restricted Security.

 

“Registration
Default” has the meaning assigned thereto in Section 7(a)
hereof.

 

“Restricted
Security” means any Security or share of Common Stock issued
or issuable upon conversion thereof except any such Security or share of Common
Stock that (i) has been effectively registered under the Securities Act
and sold in a manner contemplated by the Shelf Registration Statement,
(ii) has been transferred in compliance with Rule 144 under the Securities
Act (or any successor provision thereto) or is transferable pursuant to
paragraph (k) of such Rule 144 (or any successor provision thereto), (iii)
such Security or share of Common Stock ceases to be outstanding (whether as a
result of redemption, repurchase, cancellation or conversion) or (iv) has
otherwise been transferred and a new Security or share of Common Stock not
subject to transfer restrictions under the Securities Act has been delivered by
or on behalf of the Company in accordance with the Indenture.

 

“Rules
and Regulations” means the published rules and regulations of
the Commission promulgated under the Securities Act or the Exchange Act, as in
effect at any relevant time.

 

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

 

“Shelf
Registration” means a registration effected pursuant to
Section 2 hereof.

 

“Shelf
Registration Statement” means a “shelf” registration
statement filed under the Securities Act providing for the registration of, and
the sale on a continuous or delayed basis by the Holders of, all of the
Registrable Securities pursuant to Rule 415 under the Securities Act and/or any
similar rule that may be adopted by the Commission, filed by the Company
pursuant to the provisions of Section 2 of this Agreement, including the
Prospectus contained therein, any amendments and supplements to such
registration statement, including post-effective amendments, and all exhibits
and all material incorporated by reference in such registration statement.

 

“Trust
Indenture Act” means the Trust Indenture Act of 1939, or any
successor thereto, and the rules, regulations and forms promulgated thereunder,
as the same shall be amended from time to time.

 

The term “underwriter” means any underwriter of Registrable
Securities in connection with an offering thereof under a Shelf Registration
Statement.

 

3

 

(b)                                 Wherever
there is a reference in this Agreement to a percentage of the “principal
amount” of Registrable Securities or to a percentage of Registrable Securities,
Common Stock shall be treated as representing the principal amount of
Securities that was surrendered for conversion or exchange in order to receive
such number of shares of Common Stock.

 

2.                                       Shelf
Registration.

 

(a)                                  The
Company shall, no later than 90 calendar days following the Closing Date, file
with the Commission a Shelf Registration Statement relating to the offer and
sale of the Registrable Securities by the Holders from time to time in
accordance with the methods of distribution elected by such Holders and set
forth in such Shelf Registration Statement and, there­after, shall use its best
efforts to cause such Shelf Registration Statement to be declared effective
under the Securities Act no later than 210 calendar days following the Closing
Date; provided,
however,
that the Company may, upon written notice to all Holders, postpone having the
Shelf Registration Statement declared effective for a reasonable period not to
exceed 90 days if the Company possesses material non-public information, the
disclosure of which would have a material adverse effect on the Company and its
subsidiaries taken as a whole; provided, further, however, that no Holder shall
be entitled to be named as a selling securityholder in the Shelf Registration
Statement or to use the Prospectus forming a part thereof for resales of
Registrable Securities unless such Holder is an Electing Holder.

 

(b)                                 The
Company shall use its best efforts:

 

(i)                                     to
keep the Shelf Registration Statement con­tinuously effective under the
Securities Act in order to permit the Prospectus forming a part thereof to be
usable by Holders until the earliest of (1) the sale of all Registrable
Securities registered under the Shelf Registration Statement; (2) the
expiration of the period referred to in Rule 144(k) of the Securities with
respect to all Registrable Securities held by Persons that are not Affiliates
of the Company; (3) all the Registrable Securities have ceased to be
outstanding (whether as a result of redemption, repurchase and cancellation,
conversion or otherwise) and (4) two years from the date (the “Effective Date”)
such Shelf Registration Statement is declared effective (such period being
referred to herein as the “Effectiveness Period”);

 

(ii)                                  after
the Effective Time of the Shelf Registration Statement, promptly upon the
request of any Holder of Registrable Securities that is not then an Electing
Holder, to take any action reasonably necessary to enable such Holder to use
the Prospectus forming a part thereof for resales of Registrable Securities,
including, without limitation, any action necessary to identify such Holder as
a selling securityholder in the Shelf Registration Statement; provided,
however, that nothing in this subparagraph shall relieve such Holder
of the obligation to return a completed and signed Notice and Questionnaire to
the Company in accordance with Section 3(a)(ii) hereof; and

 

(iii)                               if at any time the
Securities, pursuant to Article XII of the Indenture, are convertible into
securities other than Common Stock, to cause, or to cause any successor under
the Indenture to cause, such securities to be included in the Shelf
Registration Statement no later than the date on which the Securities may then
be convertible into such securities.

 

4

 

The Company shall be deemed not to have used its best efforts to keep
the Shelf Registration Statement effective during the requisite period if the
Company voluntarily takes any action that would result in Holders of
Registrable Securities covered thereby not being able to offer and sell any of
such Registrable Securities during that period, unless such action is (A)
required by applicable law and the Company there­after promptly complies with
the requirements of paragraph 3(j) below or (B) permitted pursuant to Section
2(c) below.

 

(c)                                  The
Company may suspend the use of the Prospectus for a period not to exceed 30
days in any 90-day period or an aggregate of 90 days in any 12-month period if
the Board of Directors of the Company shall have determined in good faith that
because of valid business reasons (not including avoidance of the Company’s
obligations hereunder), including the acquisition or divestiture of assets,
pending corporate developments and similar events, it is in the best interests
of the Company to suspend such use, and prior to suspending such use the
Company provides the Holders with written notice of such suspension.

 

3.                                       Registration
Procedures.  In connection
with the Shelf Registration Statement, the following provisions shall apply:

 

(a) (i)                    Not
less than 30 calendar days prior to the Effective Time of the Shelf
Registration Statement, the Company shall mail the Notice and Questionnaire to
the Holders of Registrable Securities. 
No Holder shall be entitled to be named as a selling securityholder in the
Shelf Registration Statement as of the Effective Time, and no Holder shall be
entitled to use the Prospectus forming a part thereof for resales of
Registrable Securities at any time, unless such Holder has returned a completed
and signed Notice and Questionnaire to the Company by the deadline for response
set forth therein; provided, however, Holders of Registrable
Securities shall have at least 28 calendar days from the date on which the
Notice and Questionnaire is first mailed to such Holders to return a completed
and signed Notice and Questionnaire to the Company.

 

(ii)                                  After
the Effective Time of the Shelf Registration Statement, the Company shall, upon
the request of any Holder of Registrable Securities that is not then an
Electing Holder, promptly send a Notice and Questionnaire to such Holder.  The Company shall not be required to take
any action to name such Holder as a selling securityholder in the Shelf
Registration Statement or to enable such Holder to use the Prospectus forming a
part thereof for resales of Registrable Securities until such Holder has
returned a completed and signed Notice and Questionnaire to the Company.

 

(iii)                               The term “Electing
Holder” shall mean any Holder of Registrable Securities that has returned a
completed and signed Notice and Questionnaire to the Company in accordance with
Section 3(a)(i) or 3(a)(ii) hereof.

 

(b)                                 The
Company shall furnish to each Electing Holder, prior to the Effective Time, a
copy of the Shelf Registration Statement initially filed with the Commission,
and shall furnish to such Holders, prior to the filing thereof with the
Commission, copies of each amendment thereto and each amendment or supplement,
if any, to the Prospectus included therein, and shall use its best efforts to
reflect in each such document, at the Effective Time or when so filed with the
Commission, as the case may be, such comments as such Holders and their
respective counsel reasonably may propose.

 

5

 

(c)                                  The
Company shall promptly take such action as may be necessary so that (i) each of
the Shelf Registration Statement and any amendment thereto and the Prospectus
forming a part thereof and any amendment or supplement thereto (and each report
or other docu­ment incorporated therein by reference in each case) complies in
all material respects with the Securities Act and the Exchange Act and the
respective rules and regulations thereunder, (ii) each of the Shelf
Registration Statement and any amendment thereto does not, when it becomes effective,
contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading and (iii) each of the Prospectus forming a part of the Shelf
Registration Statement, and any amendment or supplement to such Prospectus,
does not at any time during the Effectiveness Period include an untrue
statement of a material fact or omit to state a material fact necessary in
order to make the statements therein, in the light of the circumstances under
which they were made, not misleading.

 

(d)                                  
The Company shall promptly advise each Electing Holder, and shall confirm such
advice in writing if so requested by any such Electing Holder:

 

(i)                                     when
a Shelf Registration Statement and any amendment thereto has been filed with
the Commission and when a Shelf Registration Statement or any post-effective
amendment thereto has become effective, in each case by making a public
announcement thereof by release made directly or indirectly to Reuters Economic
Services and Bloomberg Business News;

 

(ii)                                  of
any request by the Commission for amendments or supplements to the Shelf
Registration Statement or the Prospectus included therein or for additional
information;

 

(iii)                               of the issuance by the
Commission of any stop order suspending the effectiveness of the Shelf
Registration Statement or the initiation of any proceedings for such purpose;

 

(iv)                              of the receipt by the
Company of any notification with respect to the suspension of the qualification
of the securities included in the Shelf Registration Statement for sale in any
jurisdiction or the initiation of any proceeding for such purpose; and

 

(v)                                 of
the occurrence of any event or the existence of any state of facts that
requires the making of any changes in the Shelf Registra­tion Statement or the
Prospectus included therein so that, as of such date, such Shelf Registration
Statement and Prospectus do not contain an untrue statement of a material fact
and do not omit to state a material fact required to be stated therein or
necessary to make the statements therein (in the case of the Prospectus, in
light of the circum­stances under which they were made) not misleading (which
advice shall be accompanied by an instruc­tion to such Holders to suspend the
use of the Prospectus until the requisite changes have been made).

 

(e)                                  The
Company shall use its best efforts to prevent the issuance, and if issued to
obtain the withdrawal at the earliest possible time, of any order suspending
the effectiveness of the Shelf Registration Statement.

 

6

 

(f)                                    The
Company shall furnish to each Electing Holder, without charge, at least one
copy of the Shelf Registration Statement and all post-effective amendments
thereto, including financial statements and schedules, and, if such Electing
Holder so requests in writing, all reports, other documents and exhibits that
are filed with or incorporated by reference in the Shelf Registration
Statement.

 

(g)                                 The
Company shall, during the Effectiveness Period, deliver to each Electing
Holder, without charge, as many copies of the Prospectus (including each prelim­inary
Prospectus) included in the Shelf Registration Statement and any amendment or
supplement thereto as such Electing Holder may reasonably request; and the
Company consents (except during the periods specified in Section 2(c) above or
during the continuance of any event or the existence of any state of facts
described in Section 3(d)(v) above) to the use of the Prospectus and any
amendment or supplement thereto by each of the Electing Holders in connection
with the offering and sale of the Registrable Securities covered by the
Prospectus and any amendment or supplement thereto during the Effectiveness
Period.

 

(h)                                 Prior
to any offering of Registrable Securities pursuant to the Shelf Registration
Statement, the Company shall (i) register or qualify or cooperate with the
Electing Holders and their respective counsel in connection with the
registration or qualification of such Registrable Securities for offer and sale
under the securities or “blue sky” laws of such jurisdictions within the United
States as any Electing Holder may reasonably request, (ii) keep such
registrations or qualifications in effect and comply with such laws so as to
permit the continuance of offers and sales in such jurisdictions for so long as
may be necessary to enable any Electing Holder or underwriter, if any, to
complete its distribution of Registrable Securities pursuant to the Shelf Registration
Statement, and (iii) take any and all other actions necessary or advisable to
enable the  disposition in such
jurisdictions of such Registrable Securities; provided, however,
that in no event shall the Company be obligated to (A) qualify as a foreign
corporation or as a dealer in securities in any jurisdiction where it would not
otherwise be required to so qualify but for this Section 3(h) or (B) file any
general consent to service of process in any jurisdiction where it is not as of
the date hereof so subject.

 

(i)                                     Unless
any Registrable Securities shall be in book-entry only form, the Company shall
cooperate with the Electing Holders to facilitate the timely preparation and
delivery of certificates representing Registrable Securities to be sold pursuant
to the Shelf Registration Statement, which certificates, if so required by any
securities exchange upon which any Registrable Securities are listed, shall be
penned, lithographed or engraved, or produced by any combination of such
methods, on steel engraved borders, and which certificates shall be free of any
restrictive legends and in such permitted denominations and registered in such
names as Electing Holders may request in connection with the sale of
Registrable Securities pursuant to the Shelf Registration Statement.

 

(j)                                     Upon
the occurrence of any event or the existence of any state of facts contemplated
by paragraph 3(d)(v) above, the Company shall promptly prepare a post-effective
amendment to any Shelf Registration Statement or an amendment or supplement to
the related Prospectus or file any other required document so that, as
thereafter delivered to purchasers of the Registrable Securities included
therein, the Prospectus will not include an untrue statement of a material fact
or omit to state any material fact necessary to make the statements therein, in
the light of the circumstances under which they were made, not misleading.  If the Company notifies the Electing Holders
of the occurrence of any event or the existence of any state of facts

 

7

 

contemplated by paragraph 3(d)(v) above, the Electing
Holder shall suspend the use of the Prospectus until the requisite changes to
the Prospectus have been made.

 

(k)                                  Not
later than the Effective Time of the Shelf Registration Statement, the Company
shall provide a CUSIP number for the Registrable Securities that are debt
securities.

 

(l)                                     The
Company shall use its best efforts to comply with all applicable Rules and
Regulations, and to make generally available to its securityholders as soon as
practicable, but in any event not later than eighteen months after (i) the
effective date (as defined in Rule 158(c) under the Securities Act) of the
Shelf Registration Statement, (ii) the effective date of each post-effective
amendment to the Shelf Registration Statement, and (iii) the date of each
filing by the Company with the Commission of an Annual Report on Form 10-K that
is incor­porated by reference in the Shelf Registration Statement, an earning
statement of the Company and its subsidiaries complying with Section 11(a) of
the Securities Act and the rules and regulations of the Commission thereunder
(including, at the option of the Company, Rule 158).

 

(m)                               Not
later than the Effective Time of the Shelf Registration Statement, the Company
shall cause the Indenture to be qualified under the Trust Indenture Act; in
connection with such qualification, the Company shall cooperate with the
Trustee under the Indenture and the Holders (as defined in the Indenture) to effect
such changes to the Indenture as may be required for such Indenture to be so
qualified in accordance with the terms of the Trust Indenture Act; and the
Company shall execute, and shall use all reasonable efforts to cause the
Trustee to execute, all documents that may be required to effect such changes
and all other forms and documents required to be filed with the Commission to
enable such Indenture to be so qualified in a timely manner.  In the event that any such amendment or
modification referred to in this Section 3(m) involves the appointment of a new
trustee under the Indenture, the Company shall appoint a new trustee thereunder
pursuant to the applicable provisions of the Indenture.

 

(n)                                 In
the event of an underwritten offering conducted pursuant to Section 6 hereof,
the Company shall, if requested, promptly include or incorporate in a
Prospectus supplement or post-effective amendment to the Shelf Registration
Statement such information as the Managing Underwriters reasonably agree should
be included therein and to which the Company does not reasonably object and
shall make all required filings of such Prospectus supplement or post-effective
amendment as soon as practicable after it is notified of the matters to be
included or incorporated in such Prospectus supplement or post-effective
amendment.

 

(o)                                 The
Company shall enter into such customary agreements (including an underwriting
agreement in customary form in the event of an underwritten offering conducted
pursuant to Section 6 hereof) and take all other appropriate action in order to
expedite and facilitate the registration and disposition of the Registrable
Securities, and in connection therewith, if an underwriting agreement is
entered into, cause the same to contain indemnification provisions and
procedures substantially identical to those set forth in Section 5 hereof with
respect to all parties to be indemnified pursuant to Section 5 hereof.

 

(p)                                 The
Company shall:

 

(i)(A)  make reasonably available for inspection by
the Electing Holders, any underwriter participating in any disposition pursuant
to the Shelf Registration Statement,

 

8

 

and any attorney, accountant or other agent retained
by such Electing Holders or any such underwriter all relevant financial and
other records, pertinent corporate documents and properties of the Company and
its subsidiaries, and (B) cause the Company’s officers, directors and employees
to supply all information reasonably requested by such Electing Holders or any
such underwriter, attorney, accountant or agent in connection with the Shelf
Registration Statement, in each case, as is customary for similar due diligence
examinations; provided, however, that all records, information and
documents that are designated in writing by the Company, in good faith, as
confidential shall be kept confidential by such Electing Holders and any such
underwriter, attorney, accountant or agent, unless such disclosure is made in
connection with a court proceeding or required by law, or such records,
information or documents become available to the public generally or through a
third party without an accompanying obligation of confidentiality; and provided
further that, if the foregoing inspection and information gathering
would otherwise disrupt the Company’s conduct of its business, such inspection
and information gathering shall, to the greatest extent possible, be
coordinated on behalf of the Electing Holders and the other parties entitled
thereto by one counsel designated by and on behalf of the Electing Holders and
other parties;

 

(ii)                                  in
connection with any underwritten offering conducted pursuant to Section 6
hereof, make such representations and warranties to the Electing Holders
participating in such underwritten offering and to the Managing Underwriters,
in form, substance and scope as are customarily made by the Company to
underwriters in primary underwritten offerings of equity and convertible debt
securities and covering matters including, but not limited to, those set forth
in the Purchase Agreement;

 

(iii)                               in
connection with any underwritten offering conducted pursuant to Section 6
hereof, obtain opinions of counsel to the Company (which counsel and opinions
(in form, scope and substance) shall be reasonably satisfactory to the Managing
Underwriters) addressed to each Electing Holder participating in such
underwritten offering and the underwriters, covering such matters as are
customarily covered in opinions requested in primary underwritten offerings of
equity and convertible debt securities and such other matters as may be
reasonably requested by such Electing Holders and underwriters (it being agreed
that the matters to be covered by such opinions shall include, without
limitation, as of the date of the opinion and as of the Effective Time of the
Shelf Registration Statement or most recent post-effective amendment thereto,
as the case may be, the absence from the Shelf Registration Statement and the
Prospectus, including the documents incorporated by reference therein, of an
untrue statement of a material fact or the omission of a material fact required
to be stated therein or necessary to make the statements therein not
misleading;

 

(iv)                              in
connection with any underwritten offering conducted pursuant to Section 6
hereof, obtain “cold comfort” letters and updates thereof from the independent
public accountants of the Company (and, if necessary, from the independent
public accountants of any subsidiary of the Company or of any business acquired
by the Company for which financial statements and financial data are, or are
required to be, included in the Shelf Registration Statement), addressed to
each Electing Holder participating in such underwritten offering (if such
Electing Holder has provided such

 

9

 

letter, representations or documentation, if any,
required for such cold comfort letter to be so addressed) and the underwriters,
in customary form and covering matters of the type customarily covered in “cold
comfort” letters in connection with primary underwritten offerings;

 

(v)                                 in
connection with any underwritten offering conducted pursuant to Section 6
hereof, deliver such documents and certificates as may be reasonably requested
by any Electing Holders participating in such underwritten offering and the
Managing Underwriters, if any, including, without limitation, certificates to
evidence compliance with Section 3(j) hereof and with any conditions contained
in the underwriting agreement or other agreements entered into by the Company.

 

(q)                                 The
Company will use its best efforts to cause the Common Stock issuable upon
conversion of the Securities to be listed for quotation on the Nasdaq National
Market System or other stock exchange or trading system on which the Common
Stock primarily trades on or prior to the Effective Time of the Shelf
Registration State­ment hereunder.

 

(r)                                    In
the event that any broker-dealer registered under the Exchange Act shall
be an “affiliate” (as defined in Rule 2720(b)(1) of the NASD Rules (or any successor
provision thereto)) of the Company or has a “conflict of interest” (as defined
in Rule 2720(b)(7) of the NASD Rules (or any successor provision thereto)) and
such broker-dealer shall underwrite, participate as a member of an
underwriting syndicate or selling group or assist in the distribution of any
Registrable Securities covered by the Shelf Registration Statement, whether as
a Holder of such Registrable Securities or as an underwriter, a placement or
sales agent or a broker or dealer in respect thereof, or otherwise, the Company
shall assist such broker-dealer in complying with the requirements of the
NASD Rules, including, without limitation, by (A) engaging a “qualified
independent underwriter” (as defined in Rule 2720(b)(15) of the NASD Rules (or
any successor provision thereto)) to participate in the preparation of the
registration statement relating to such Registrable Securities, to exercise
usual standards of due diligence in respect thereto and to recommend the public
offering price of such Registrable Securities, (B) indemnifying such qualified
independent underwriter to the extent of the indemnification of underwriters
provided in Section 5 hereof, and (C) providing such information to such broker-dealer
as may be required in order for such broker-dealer to comply with the
requirements of the NASD Rules.

 

(s)                                  The
Company shall use its best efforts to take all other steps necessary to effect
the registration, offering and sale of the Registrable Securities covered by
the Shelf Registration Statement contem­plated hereby.

 

4.                                       Registration
Expenses.  Except as
otherwise provided in Section 3, the Company shall bear all fees and expenses
incurred in connection with the performance of its obligations under Sections
2, 3 and 6 hereof and shall bear or reimburse the Electing Holders for the
reasonable fees and disbursements of a single counsel selected by a plurality
of all Electing Holders who own an aggregate of not less than 25% of the
Registrable Securities covered by the Shelf Registration Statement to act as
counsel therefore in connection therewith. 
Each Electing Holder shall pay all underwriting discounts and
commissions and transfer and income taxes, if any, relating to the sale or
disposition of such Electing Holder’s Registrable Securities pursuant to the
Shelf Registration Statement.

 

10

 

5.                                       Indemnification
and Contribution.

 

(a)                                  Indemnification
by the Company. Upon the registration of the Registrable Securities
pursuant to Section 2 hereof, the Company shall indemnify and hold harmless
each Electing Holder and each underwriter, dealer, selling agent or other
securities professional, if any, which facilitates the disposition of
Registrable Securities, and each of their respective officers and directors and
each person who controls such Electing Holder, underwriter, dealer, selling
agent or other securities professional within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act (each such person being
sometimes referred to as an “Indemnified Person”) against any losses, claims,
damages or liabilities, joint or several, to which such Indemnified Person may
become subject under the Securities Act or otherwise, insofar as such losses,
claims, damages or liabilities (or actions in respect thereof) arise out of or
are based upon an untrue statement or alleged untrue statement of a material
fact contained in any Shelf Registration Statement under which such Registrable
Securities are to be registered under the Securities Act, or any Prospectus
contained therein or furnished by the Company to any Indemnified Person, or any
amendment or supplement thereto, or arise out of or are based upon the omission
or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, and the
Company hereby agrees to reimburse such Indemnified Person for any legal or
other expenses reasonably incurred by it in connection with investigating or
defending any such action or claim as such expenses are incurred; provided,
however,
that the Company shall not be liable to any such Indemnified Person in any such
case to the extent that any such loss, claim, damage or liability arises out of
or is based upon an untrue statement or alleged untrue statement or omission or
alleged omission made in such Shelf Registration Statement or Prospectus, or
amendment or supplement, in reliance upon and in conformity with written
information furnished to the Company by such Indemnified Person expressly for
use therein.

 

(b)                                 Indemnification
by the Electing Holders and any Agents and Underwriters.  Each Electing Holder agrees, as a
consequence of the inclusion of any of such Electing Holder’s Registrable
Securities in such Shelf Registration Statement, and each underwriter, dealer,
selling agent or other securities professional, if any, which facilitates the
disposition of Registrable Securities shall agree, as a consequence of
facilitating such disposition of Registrable Securities, severally and not
jointly, to (i) indemnify and hold harmless the Company, its directors,
officers who sign any Shelf Registration Statement and each person, if any, who
controls the Company within the meaning of either Section 15 of the Securities
Act or Section 20 of the Exchange Act, against any losses, claims, damages or
liabilities to which the Company or such other persons may become subject,
under the Securities Act or otherwise, insofar as such losses, claims, damages
or liabilities (or actions in respect thereof) arise out of or are based upon
an untrue statement or alleged untrue statement of a material fact contained in
such Shelf Registration Statement or Prospectus, or any amendment or
supplement, or arise out of or are based upon the omission or alleged omission
to state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading, in each case to the extent, but
only to the extent, that such untrue statement or alleged untrue statement or
omission or alleged omission was made in reliance upon and in conformity with
written information furnished to the Company by such Electing Holder,
underwriter, dealer, selling agent or other securities professional expressly
for use therein, and (ii) reimburse the Company for any legal or other expenses
reasonably incurred by the Company in connection with investigating or
defending any such action or claim as such expenses are incurred.

 

11

 

(c)                                  Notices of
Claims, Etc.  Promptly after
receipt by an indemnified party under subsection (a) or (b) above of notice of
the commencement of any action, such indemnified party shall, if a claim in
respect thereof is to be made against an indemnifying party under this Section
5, notify such indemnifying party in writing of the commencement thereof; but
the omission so to notify the indemnifying party shall not relieve it from any
liability which it may have to any indemnified party otherwise than under the
indemnification provisions of or contemplated by subsection (a) or (b)
above.  In case any such action shall be
brought against any indemnified party and it shall notify an indemnifying party
of the commencement thereof, such indemnifying party shall be entitled to
participate therein and, to the extent that it shall wish, jointly with any
other indemnifying party similarly notified, to assume the defense thereof,
with counsel satisfactory to such indemnified party (who shall not, except with
the consent of the indemnified party, be counsel to the indemnifying party),
and, after notice from the indemnifying party to such indemnified party of its
election so to assume the defense thereof, such indemnifying party shall not be
liable to such indemnified party under this Section 5 for any legal expenses of
other counsel or any other expenses, in each case subsequently incurred by such
indemnified party, in connection with the defense thereof other than reasonable
costs of investigation. No indemnifying party shall, without the written consent
of the indemnified party, effect the settlement or compromise of, or consent to
the entry of any judgment with respect to, any pending or threatened action or
claim in respect of which indemnification or contribution may be sought
hereunder (whether or not the indemnified party is an actual or potential party
to such action or claim) unless such settlement, compromise or judgment (i)
includes an unconditional release of the indemnified party from all liability
arising out of such action or claim and (ii) does not include a statement as
to, or an admission of, fault, culpability or a failure to act, by or on behalf
of any indemnified party.

 

(d)                                 Contribution.  If the indemnification provided for in this
Section 5 is unavailable to or insufficient to hold harmless an indemnified
party under subsection (a) or (b) above in respect of any losses, claims,
damages or liabilities (or actions in respect thereof) referred to therein,
then each indemnifying party shall contribute to the amount paid or payable by
such indemnified party as a result of such losses, claims, damages or
liabilities (or actions in respect thereof) in such proportion as is
appropriate to reflect the relative fault of the indemnifying party and the
indemnified party in connection with the statements or omissions which resulted
in such losses, claims, damages or liabilities (or actions in respect thereof),
as well as any other relevant equitable considerations.  The relative fault of such indemnifying
party and indemnified party shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or
omission or alleged omission to state a material fact relates to information
supplied by such indemnifying party or by such indemnified party, and the
parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission. 
The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 5(d) were determined by pro rata
allocation (even if the Electing Holders or any underwriters, dealers, selling
agents or other securities professionals or all of them were treated as one
entity for such purpose) or by any other method of allocation which does not
take account of the equitable considerations referred to in this Section
5(d).  The amount paid or payable by an
indemnified party as a result of the losses, claims, damages or liabilities (or
actions in respect thereof) referred to above shall be deemed to include any
legal or other fees or expenses reasonably incurred by such indemni­fied party
in connection with investigating or defending any such action or claim.  No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to

 

12

 

contribution from any person who was not guilty of
such fraudulent misrepresentation.  The
obligations of the Electing Holders and any underwriters, dealers, selling
agents or other securities professionals in this Section 5(d) to contribute
shall be several in proportion to the percentage of principal amount of
Registrable Securities registered or underwritten, as the case may be, by them
and not joint.

 

(e)                                  Notwithstanding
any other provision of this Section 5, in no event will any (i) Electing Holder
be required to undertake liability to any person under this Section 5 for any
amounts in excess of the dollar amount of the proceeds to be received by such
Holder from the sale of such Holder’s Registrable Securities (after deducting
any fees, discounts and commissions applicable thereto) pursuant to any Shelf
Registration Statement under which such Registrable Securities are to be
registered under the Securities Act and (ii) underwriter, dealer, selling agent
or other securities professional be required to undertake liability to any
person hereunder for any amounts in excess of the discount, commission or other
compensation payable to such underwriter, dealer, selling agent or other
securities professional with respect to the Registrable Securities underwritten
by it and distributed to the public.

 

(f)                                    The
obligations of the Company under this Section 5 shall be in addition to any
liability which the Company may otherwise have to any Indemnified Person and
the obligations of any Indemnified Person under this Section 5 shall be in
addition to any liability which such Indemnified Person may otherwise have to
the Company.  The remedies provided in
this Section 5 are not exclusive and shall not limit any rights or
remedies which may otherwise be available to an indemnified party at law or in
equity.

 

6.                                       Underwritten
Offering.  Any Holder of
Registrable Securities who desires to do so may sell Registrable Securities (in
whole or in part) in an underwritten offering; provided that  (i) the Electing Holders of at least 33-1/3%
in aggregate principal amount of the Registrable Securities then covered by the
Shelf Registration Statement shall request such an offering and (ii) at least
such aggregate principal amount of such Registrable Securities shall be
included in such offering; and provided further that the Company shall
not be obligated to cooperate with more than one underwritten offering during
the Effectiveness Period.  Upon receipt
of such a request, the Company shall provide all Holders of Registrable
Securities written notice of the request, which notice shall inform such
Holders that they have the opportunity to participate in the offering.  In any such under­written offering, the investment
banker or bankers and manager or managers that will administer the offering
will be selected by, and the underwriting arrangements with respect thereto
(including the size of the offering) will be approved by, the holders of a
majority of the Registrable Securities to be included in such offering; provided,
however,
that such investment bankers and managers and underwriting arrangements must be
reasonably satisfactory to the Company. 
No Holder may participate in any underwritten offering contemplated
hereby unless (a) such Holder agrees to sell such Holder’s Registrable
Securities to be included in the underwritten offering in accordance with any
approved underwriting arrangements, (b) such Holder completes and executes all
reasonable questionnaires, powers of attorney, indemnities, underwriting
agreements, lock-up letters and other documents required under the terms of
such approved underwriting arrangements, and (c) if such Holder is not then an
Electing Holder, such Holder returns a completed and signed Notice and
Questionnaire to the Company in accordance with Section 3(a)(ii) hereof within
a reasonable amount of time before such underwritten offering.  The Holders participating in any
underwritten offering shall be responsible for any underwriting discounts and
commissions and fees and, subject to

 

13

 

 Section 4
hereof, expenses of their own counsel. 
The Company shall pay all expenses customarily borne by issuers in an
underwritten offering, including but not limited to filing fees, the fees and
disburse­ments of its counsel and independent public accountants and any
printing expenses incurred in connection with such underwritten offering.  Notwithstanding the foregoing or the
provisions of Section 3(n) hereof, upon receipt of a request from the Managing
Underwriter or a representative of holders of a majority of the Registrable
Securities to be included in an underwritten offering to prepare and file an
amendment or supplement to the Shelf Registration Statement and Prospectus in
connec­tion with an underwritten offering, the Company may delay the filing of
any such amend­ment or supplement for up to 90 days if the Board of Directors
of the Company shall have determined in good faith that the Company has a bona
fide business reason for such delay.

 

7.                                       Liquidated
Damages.

 

(a)                                  Notwithstanding
any postponement of effectiveness permitted by Section 2(a) hereof, if (i) on
or prior to the 90th day following the Closing Date, a Shelf Registration
Statement has not been filed with the Commission or (ii) on or prior to the
210th day following the Closing Date, such Shelf Registration Statement is not
declared effective by the Commission (each, a “Registration Default”), the
Company shall be required to pay liquidated damages (“Liquidated Damages”),
from and including the day following such Registration Default until such Shelf
Registration Statement is either so filed or so filed and subsequently declared
effective, as applicable, at a rate per annum equal to an additional
one-quarter of one percent (0.25%) of the principal amount of Registrable
Securities, to and including the 90th day following such Registration Default
and one-half of one percent (0.50%) thereof from and after the 91st day
following such Registration Default.

 

(b)                                 In
the event that (i) the Shelf Registration Statement ceases to be effective,
(ii) the Company suspends the use of the Prospectus pursuant to Section 2(c) or
3(j) hereof, (iii) the Holders are not authorized to use the Prospectus pursuant
to Section 3(g) hereto or (iv) the Holders are otherwise prevented or
restricted by the Company from effecting sales pursuant to the Shelf
Registration Statement (an “Effective Failure”) for more than 30 days, whether
or not consecutive, in any 90-day period, or for more than 90 days, whether or
not consecutive, during any 12-month period, then the Company shall pay
Liquidated Damages at a rate per annum equal to an additional one-half of one
percent (0.50%) of the principal amount of Registrable Securities from the 31st
day of the applicable 90-day period or the 91st day of the applicable 12-month
period, as the case may be, that any such Effective Failure has existed until
the earlier of (1) the time the Holders of Registrable Securities are again
able to make sales under the Shelf Registration Statement or (2) the expiration
of the Effectiveness Period.

 

(c)                                  Any
amounts to be paid as Liquidated Damages pursuant to paragraphs (a) or (b) of
this Section 7 shall be paid in cash semi-annually in arrears, with the first
semi-annual payment due on the first Interest Payment Date (as defined in the
Indenture), as applicable, following the date of such Registration Default or
Effective Failure, as applicable.  Such Liquidated
Damages will accrue (1) in respect of the Securities at the rates set forth in
paragraphs (a) or (b) of this Section 7, as applicable, on the principal amount
of the Securities and (2) in respect of the Common Stock issued upon conversion
of the Securities, at the rates set forth in paragraphs (a) or (b) of this
Section 7, as applicable, applied to the Conversion Price (as defined in the
Indenture) at that time.

 

14

 

(d)                                 Except
as provided in Section 8(b) hereof, the Liquidated Damages as set forth in this
Section 7 shall be the exclusive monetary remedy available to the Holders of
Registrable Securities for such Registration Default or Effective Failure. In
no event shall the Company be required to pay Liquidated Damages in excess of
the applicable maximum rate per annum of one-half of one percent (0.50%) set
forth above, regardless of whether one or multiple Registration Defaults or
Effective Failures exist.

 

8.                                       Miscellaneous.

 

(a)                                  Other
Registration Rights.  The
Company may grant registration rights that would permit any person that is a
third party the right to piggy-back on any Shelf Registration  Statement, provided that if the
Managing Underwriter of any underwritten offering conducted pursuant to Section
6 hereof notifies the Company and the Electing Holders that the total amount of
securities which the Electing Holders and the holders of such piggy-back
rights intend to include in any Shelf Regis­tration Statement is so large as to
materially threaten the success of such offering (including the price at which
such securities can be sold), then the amount, number or kind of securities to
be offered for the account of holders of such piggy-back rights will be
reduced to the extent necessary to reduce the total amount of securities to be
included in such offering to the amount, number and kind recommended by the
Managing Underwriter prior to any reduction in the amount of Registrable
Securities to be included in such Shelf Registration Statement.

 

(b)                                 Specific
Performance.  The parties hereto
acknowledge that there would be no adequate remedy at law if the Company fails
to perform any of its obligations hereunder and that the Purchasers and the
Holders from time to time may be irreparably harmed by any such failure, and
accordingly agree that the Purchasers and such Holders, in addition to any
other remedy to which they may be entitled at law or in equity and without
limiting the remedies available to the Electing Holders under Section 7 hereof,
shall be entitled to compel specific performance of the obligations of the
Company under this Registration Rights Agreement in accordance with the terms
and conditions of this Registration Rights Agreement, in any court of the
United States or any State thereof having jurisdiction.

 

(c)                                  Amendments
and Waivers.  This Agreement,
including this Section 8(c), may be amended, and waivers or consents to
departures from the provisions hereof may be given, only by a written
instrument duly executed by the Company and the holders of a majority in
aggregate principal amount of Registrable Securities then outstanding.  Each Holder of Registrable Securities
outstanding at the time of any such amendment, waiver or consent or thereafter
shall be bound by any amendment, waiver or consent effected pursuant to this
Section 8(c), whether or not any notice, writing or marking indicating such
amendment, waiver or consent appears on the Registrable Securities or is
delivered to such Holder.

 

(d)                                 Notices.  All notices and other communications
provided for or permitted hereunder shall be given as provided in the
Indenture.

 

(e)                                  Parties in
Interest.  The parties to
this Agreement intend that all Holders of Registrable Securities shall be
entitled to receive the benefits of this Agreement and that any Electing Holder
shall be bound by the terms and provisions of this Agreement by reason of such
election with respect to the Registrable Securities which are included in a
Shelf Registration Statement.  All the
terms and provisions of this Agreement shall be binding upon, shall inure to

 

15

 

the benefit of and shall be enforceable by the
respective successors and assigns of the parties hereto and any Holder from
time to time of the Registrable Securities to the aforesaid extent.  In the event that any transferee of any
Holder of Registrable Securities shall acquire Registrable Securities, in any
manner, whether by gift, bequest, purchase, operation of law or otherwise, such
transferee shall, without any further writing or action of any kind, be
entitled to receive the benefits of and, if an Electing Holder, be conclusively
deemed to have agreed to be bound by and to perform all of the terms and
provisions of this Agreement to the aforesaid extent.

 

(f)                                    Counterparts.  This Agreement may be executed in any number
of counterparts and by the parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

 

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

 

(h)                                 Governing
Law.  This Agreement shall be
governed by and construed in accordance with the laws of the State of New York.

 

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

 

(j)                                     Survival.  The respective indemnities, agreements,
representations, warranties and other provisions set forth in this Agreement or
made pursuant hereto shall remain in full force and effect, regardless of any
investigation (or any statement as to the results thereof) made by or on behalf
of any Electing Holder, any director, officer or partner of such Holder, any
agent or underwriter, any director, officer or partner of such agent or
underwriter, or any controlling person of any of the foregoing, and shall
survive the transfer and registration of the Registrable Securities of such
Holder.

 

16

 

Please confirm that the foregoing correctly sets forth
the agreement between the Company and you.

 

	
   

  	
  Very truly yours,

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Medarex, Inc.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  Accepted as of the date hereof:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Goldman,
  Sachs & Co.

  	
   

  	
   

  
	
  J.P.
  Morgan Securities Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (Goldman, Sachs
  & Co.)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  On behalf of each of the Purchasers.

  	
   

  	
   

  	
   

  
							

 

17

 

Appendix
A

 

MEDAREX, INC.

 

 

INSTRUCTION TO DTC PARTICIPANTS

 

(Date
of Mailing)

 

URGENT -
IMMEDIATE ATTENTION REQUESTED

 

DEADLINE FOR RESPONSE:  [DATE]

 

The Depository Trust Company (“DTC”) has identified
you as a DTC Participant through which beneficial interests in the Medarex,
Inc. (the “Company”) 2.25% Convertible Senior Notes due 2011 (the “Securities”)
are held.

 

The Company is in the process of registering the
Securities under the Securities Act of 1933 for resale by the beneficial owners
thereof.  In order to have their
Securities included in the registration statement, beneficial owners must
complete and return the enclosed Notice of Registration Statement and Selling
Securityholder Questionnaire.

 

It is important that beneficial owners of the
Securities receive a copy of the enclosed materials as soon as possible
as their rights to have the Securities included in the registration statement
depend upon their returning the Notice and Questionnaire by [Deadline
for response].  Please
forward a copy of the enclosed documents to each beneficial owner that holds
interests in the Securities through you. 
If you require more copies of the enclosed materials or have any
questions pertaining to this matter, please contact [Name, address and telephone number of
contact at the Issuer].

 

18

 

MEDAREX,
INC.

 

NOTICE
OF REGISTRATION STATEMENT

and

SELLING SECURITYHOLDER QUESTIONNAIRE

 

,2004

 

Medarex, Inc. (the “Company”) has filed with the
United States Securities and Exchange Commission (the “Commission”) a
registration statement on Form S-3 (the “Shelf Registration Statement”)
for the registration and resale under Rule 415 of the United States
Securities Act of 1933, as amended (the “Securities Act”), of the Company’s 2.25%
Convertible Senior Notes due 2011 (the “Securities”) and the shares of common
stock, par value $.01 per share (the “Common Stock”), issuable upon conversion
thereof, in accordance with the Registration Rights Agreement, dated as of May
3, 2004 (the “Registration Rights Agreement”), between the Company and the
purchasers named therein.  A copy of the
Registration Rights Agreement is attached hereto.  All capitalized terms not otherwise defined herein shall have the
meanings ascribed thereto in the Registration Rights Agreement.

 

In order to have Registrable Securities included in
the Shelf Registration Statement (or a supplement or amendment thereto), this
Notice of Registration Statement and Selling Securityholder Questionnaire (“Notice and
Questionnaire”) must be completed, executed and delivered to the
Company at the address set forth herein for receipt ON OR BEFORE
            ,
2004.  Beneficial owners of Registrable
Securities who do not complete, execute and return this Notice and
Questionnaire by such date (i) will not be named as selling
securityholders in the Shelf Registration Statement and (ii) may not use
the Prospectus forming a part thereof for resales of Registrable Securities.

 

Certain legal consequences arise from being named as a
selling securityholder in the Shelf Registration Statement and related
Prospectus.  Accordingly, holders and
beneficial owners of Registrable Securities are advised to consult their own
securities law counsel regarding the consequences of being named or not being
named as a selling securityholder in the Shelf Registration Statement and
related Prospectus.

 

19

 

The term “Registrable Securities” is defined in
the Registration Rights Agreement to mean all or any portion of the Securities
issued from time to time under the Indenture in registered form and the shares
of Common Stock issued or issuable upon conversion, repurchase or redemption of
such Securities; provided, however, that a security ceases to be
a Registrable Security when it is no longer a Restricted Security.

 

The term “Restricted Security” is defined in
the Registration Rights Agreement to mean any Security or share of Common Stock
issued or issuable upon conversion thereof except any such Security or share of
Common Stock which (i) has been effectively registered under the
Securities Act and sold in a manner contemplated by the Shelf Registration
Statement, (ii) has been transferred in compliance with Rule 144 under the
Securities Act (or any successor provision thereto) or is transferable pursuant
to paragraph (k) of such Rule 144 (or any successor provision thereto),
(iv) such Security or share of Common Stock ceases to be outstanding (whether as
a result of redemption, repurchase, cancellation or conversion) or (v) has
otherwise been transferred and a new Security or share of Common Stock not
subject to transfer restrictions under the Securities Act has been delivered by
or on behalf of the Company in 
accordance with the Indenture.

 

ELECTION

 

The undersigned holder (the “Selling Securityholder”)
of Registrable Securities hereby elects to include in the Shelf Registration
Statement the Registrable Securities beneficially owned by it and listed below
in Item (3).  The undersigned, by
signing and returning this Notice and Questionnaire, agrees to be bound with
respect to such Registrable Securities by the terms and conditions of this
Notice and Questionnaire and the Registration Rights Agreement, including,
without limitation, Section 5 of the Registration Rights Agreement, as if the
undersigned Selling Securityholder were an original party thereto.

 

Upon any sale of Registrable Securities pursuant to
the Shelf Registration Statement, the Selling Securityholder will be required
to deliver to the Company and the Trustee the Notice of Transfer (completed and
signed) set forth in Exhibit 1 to this Notice and Questionnaire.

 

The Selling Securityholder hereby provides the
following information to the Company and represents and warrants that such
information is accurate and complete:

 

 

20

 

QUESTIONNAIRE

 

	
  (1)

  	
  (a)

  	
  Full legal name of Selling Securityholder:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Full legal name of Registered Holder (if not the
  same as in (a) above) of Registrable Securities Listed in Item (3) below:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  Full legal name of DTC participant (if applicable
  and if not the same as (b) above) through which Registrable Securities listed
  in Item (3) below are held:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (2)

  	
   

  	
  Address for notices to Selling Securityholder:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Telephone:

  
	
   

  	
   

  	
  Fax:

  
	
   

  	
   

  	
  Contact Person:

  
	
   

  	
   

  	
   

  
	
  (3)

  	
   

  	
  Beneficial ownership of Securities:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Except
  as set forth below in this Item (3), the undersigned Selling
  Securityholder does not beneficially own any Securities or shares of Common
  Stock issued upon conversion, repurchase or redemption of any Securities.

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  Principal amount
  of Registrable Securities (as defined in the Registration Rights Agreement)
  beneficially

  owned:

  
	
   

  	
   

  	
  CUSIP No(s). of such Registrable Securities:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Number of shares of Common Stock (if any) issued
  upon conversion, repurchase or redemption of Registrable

  Securities:

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Principal amount
  of securities other than Registrable Securities beneficially owned:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CUSIP No(s). of such other Securities:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Number of shares of Common Stock (if any) issued
  upon conversion of such other Securities:

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  Principal amount
  of Registrable Securities which the undersigned wishes to be included in the
  Shelf Registration

  Statement:

  
	
   

  	
   

  	
  CUSIP No(s). of such Registrable Securities to be
  included in the Shelf Registration Statement:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Number of shares of Common Stock (if any) issued
  upon conversion of Registrable Securities which are to be included in the
  Shelf Registration Statement:

  

 

21

 

	
  (4)

  	
   

  	
  Beneficial ownership of other securities of the
  Company:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Except
  as set forth below in this Item (4), the undersigned Selling
  Securityholder is not the beneficial or registered owner of any shares of
  Common Stock or any other securities of the Company, other than the
  Securities and shares of Common Stock listed above in Item (3).

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  State any exceptions here:

  
	
   

  	
   

  	
   

  
	
  (5)

  	
   

  	
  Relationships with the Company:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Except
  as set forth below, neither the Selling Securityholder nor any of its
  affiliates, officers, directors or principal equity holders (5% or more) has
  held any position or office or has had any other material relationship with
  the Company (or its predecessors or affiliates) during the past three years.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  State any exceptions here:

  
	
   

  	
   

  	
   

  
	
  (6)

  	
   

  	
  Plan of Distribution:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Except
  as set forth below, the undersigned Selling Securityholder intends to
  distribute the Registrable Securities listed above in Item (3) only as
  follows (if at all):  Such Registrable
  Securities may be sold from time to time directly by the undersigned Selling
  Securityholder or, alternatively, through underwriters, broker-dealers or
  agents.  Such Registrable Securities
  may be sold in one or more transactions at fixed prices, at prevailing market
  prices at the time of sale, at varying prices determined at the time of sale,
  or at negotiated prices.  Such sales
  may be effected in transactions (which may involve crosses or block
  transactions) (i) on any national securities exchange or quotation service on
  which the Registrable Securities may be listed or quoted at the time of sale,
  (ii) in the over-the-counter market, (iii) in transactions otherwise than on
  such exchanges or services or in the over-the-counter market, or (iv) through
  the writing of options.  In connection
  with sales of the Registrable Securities or otherwise, the Selling
  Securityholder may enter into hedging transactions with broker-dealers, which
  may in turn engage in short sales of the Registrable Securities in the course
  of hedging the positions they assume. 
  The Selling Securityholder may also sell Registrable Securities short
  and deliver Registrable Securities to close out such short positions, or loan
  or pledge Registrable Securities to broker-dealers that in turn may sell such
  securities.  The Selling
  Securityholder may pledge or grant security interest in some or all of the
  Registrable Securities owned by it and, if it defaults in the performance of
  its secured obligations, the pledgees or secured parties may offer and sell
  the Registrable Securities from time to time pursuant to the prospectus. The
  Selling Securityholder also may transfer and donate shares in other
  circumstances in which case the transferees, donees, pledgees or other
  successors in interest will be the selling security holder for purposes of
  the prospectus.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  State any exceptions here:

  

 

22

 

Note: 
Underwritten offerings of the Registrable Securities are subject to the
limitations set forth in the Registration Rights Agreement.

 

By signing below, the Selling Securityholder
acknowledges that it understands its obligation to comply, and agrees that it
will comply, with the prospectus delivery and other provisions of the
Securities Act and the Securities Exchange Act of 1934, as amended, and the
rules and regulations thereunder, particularly Regulation M.

 

In the event that the Selling Securityholder transfers
all or any portion of the Registrable Securities listed in Item (3) above
after the date on which such information is provided to the Company, the
Selling Securityholder agrees to notify the transferee(s) at the time of the
transfer of its rights and obligations under this Notice and Questionnaire and
the Registration Rights Agreement.

 

By signing below, the Selling Securityholder consents
to the disclosure of the information contained herein in its answers to
Items (1) through (6) above and the inclusion of such information in the
Shelf Registration Statement and related Prospectus.  The Selling Securityholder understands that such information will
be relied upon by the Company in connection with the preparation of the Shelf
Registration Statement and related Prospectus.

 

In accordance with the Selling Securityholder’s
obligation under Section 3(a) of the Registration Rights Agreement to
provide such information as may be required by law for inclusion in the Shelf
Registration Statement, the Selling Securityholder agrees to promptly notify
the Company of any inaccuracies or changes in the information provided herein
which may occur subsequent to the date hereof at any time while the Shelf
Registration Statement remains in effect. 
All notices hereunder and pursuant to the Registration Rights Agreement
shall be made in writing, by hand-delivery, first-class mail, or air courier
guaranteeing overnight delivery as follows:

 

	
  (i)

  	
   

  	
  To the Company:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Medarex,
  Inc.

  
	
   

  	
   

  	
   

  	
  707
  State Road, #206

  
	
   

  	
   

  	
   

  	
  Princeton,
  New Jersey 08540

  
	
   

  	
   

  	
   

  	
  Attn:
  General Counsel

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (ii)

  	
   

  	
  With a copy to:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Satterlee Stephens
  Burke & Burke LLP

  
	
   

  	
   

  	
   

  	
  230 Park Avenue, Suite
  1130

  
	
   

  	
   

  	
   

  	
  New York, New
  York  10169

  
	
   

  	
   

  	
   

  	
  Attn: Dwight Kinsey

  
	
   

  	
   

  	
   

  	
   

  

 

23

 

Once this Notice and Questionnaire is executed by the
Selling Securityholder and received by the Company, the terms of this Notice
and Questionnaire, and the representations and warranties contained herein,
shall be binding on, shall inure to the benefit of and shall be enforceable by
the respective successors, heirs, personal representatives, and assigns of the
Company and the Selling Securityholder (with respect to the Registrable
Securities beneficially owned by such Selling Securityholder and listed in Item
(3) above).  This Agreement shall be governed
in all respects by the laws of the State of New York.

 

 

24

 

IN WITNESS WHEREOF, the undersigned, by authority duly
given, has caused this Notice and Questionnaire to be executed and delivered
either in person or by its duly authorized agent.

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Selling Securityholder

  	
   

  	
   

  
	
   

  	
  (Print/type full legal name of beneficial owner of
  Registrable Securities)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

 

PLEASE RETURN THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE FOR
RECEIPT ON OR BEFORE                ,
2004 TO THE COMPANY AT:

 

 

 

 

25

 

Exhibit
1

to Appendix A

 

NOTICE OF TRANSFER
PURSUANT TO REGISTRATION STATEMENT

 

Medarex, Inc,.

707 State Road, #206

Princeton, New Jersey  08540

 

Attention:  W. Bradford
Middlekauff, Senior Vice President, General Counsel & Secretary

 

Wilmington Trust Company

Rodney Square North

1100 North Market Street,

Wilmington, Delaware  19090

 

Attention:  Corporate Trust Office

 

Re:                               Medarex,
Inc. (the “Company”)

2.25% Convertible Senior
Notes due 2011 (the “Notes”)

 

Dear Sirs:

 

Please be advised that
                        
has transferred
$                    
aggregate principal amount of the above-referenced Notes or shares of the
Company’s common stock, issued upon conversion, repurchase or redemption of
Notes, pursuant to an effective Registration Statement on Form S-3 (File No.
333-       ) filed by the Company.

 

We hereby certify that the prospectus delivery
requirements, if any, of the Securities Act of 1933, as amended, have been
satisfied with respect to the transfer described above and that the above-named
beneficial owner of the Notes or common stock is named as a selling
securityholder in the Prospectus dated [date], or in amendments or supplements
thereto, and that the aggregate principal amount of the Notes or number of
shares of common stock transferred are [a portion of] the Notes or shares of
common stock listed in such Prospectus as amended or supplemented opposite such
owner’s name.

 

Dated:

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (Name)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (Authorized Signature

  
									

 

26Exhibit
4.3

 

 

MEDAREX, INC.

 

ISSUER

 

TO

 

WILMINGTON TRUST
COMPANY,

a Delaware banking company,

 

AS TRUSTEE

 

 

INDENTURE

 

Dated as of May 3,
2004

 

 

2.25% CONVERTIBLE
SENIOR NOTES DUE MAY 15, 2011

 

 

 

TABLE OF
CONTENTS

 

	
  ARTICLE I

  	
  DEFINITIONS AND OTHER PROVISIONS OF
  GENERAL APPLICATION

  	
  1

  
	
   

  	
   

  	
   

  
	
  SECTION 1.1

  	
  Definitions.

  	
  1

  
	
  SECTION 1.2

  	
  Compliance Certificates and Opinions.

  	
  10

  
	
  SECTION 1.3

  	
  Form of Documents Delivered to the
  Trustee.

  	
  10

  
	
  SECTION 1.4

  	
  Acts of Holders of Securities.

  	
  11

  
	
  SECTION 1.5

  	
  Notices, Etc. to the Trustee and Company.

  	
  13

  
	
  SECTION 1.6

  	
  Notice to Holders of Securities;
  Waiver.

  	
  13

  
	
  SECTION 1.7

  	
  Effect of Headings and Table of
  Contents.

  	
  14

  
	
  SECTION 1.8

  	
  Successors and Assigns.

  	
  14

  
	
  SECTION 1.9

  	
  Separability Clause.

  	
  14

  
	
  SECTION 1.10

  	
  Benefits of Indenture.

  	
  14

  
	
  SECTION 1.11

  	
  Governing Law.

  	
  14

  
	
  SECTION 1.12

  	
  Legal Holidays.

  	
  14

  
	
  SECTION 1.13

  	
  Conflict with Trust Indenture Act.

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  SECURITY FORMS

  	
  15

  
	
   

  	
   

  	
   

  
	
  SECTION 2.1

  	
  Form Generally.

  	
  15

  
	
  SECTION 2.2

  	
  Form of Security.

  	
  16

  
	
  SECTION 2.3

  	
  Form of Certificate of Authentication.

  	
  30

  
	
  SECTION 2.4

  	
  Form of Conversion Notice.

  	
  30

  
	
  SECTION 2.5

  	
  Form of Assignment.

  	
  32

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  THE SECURITIES

  	
  33

  
	
   

  	
   

  	
   

  
	
  SECTION 3.1

  	
  Title and Terms.

  	
  33

  
	
  SECTION 3.2

  	
  Denominations.

  	
  34

  
	
  SECTION 3.3

  	
  Execution, Authentication, Delivery
  and Dating.

  	
  34

  
	
  SECTION 3.4

  	
  Global Securities; Non-Global
  Securities; Book-entry Provisions.

  	
  34

  
	
  SECTION 3.5

  	
  Registration; Registration of Transfer
  and Exchange; Restrictions on Transfer.

  	
  37

  
	
  SECTION 3.6

  	
  Mutilated, Destroyed, Lost or Stolen
  Securities.

  	
  40

  
	
  SECTION 3.7

  	
  Payment of Interest; Interest Rights
  Preserved.

  	
  41

  
	
  SECTION 3.8

  	
  Persons Deemed Owners.

  	
  42

  
	
  SECTION 3.9

  	
  Cancellation.

  	
  42

  
	
  SECTION 3.10

  	
  Computation of Interest.

  	
  42

  
	
  SECTION 3.11

  	
  CUSIP Numbers.

  	
  42

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  SATISFACTION AND DISCHARGE

  	
  43

  
	
   

  	
   

  	
   

  
	
  SECTION 4.1

  	
  Satisfaction and Discharge of
  Indenture.

  	
  43

  

 

i

 

	
  SECTION 4.2

  	
  Application of Trust Money.

  	
  44

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  REMEDIES

  	
  44

  
	
   

  	
   

  	
   

  
	
  SECTION 5.1

  	
  Events of Default.

  	
  44

  
	
  SECTION 5.2

  	
  Acceleration of Maturity; Rescission
  and Annulment.

  	
  46

  
	
  SECTION 5.3

  	
  Collection of Indebtedness and Suits
  for Enforcement by Trustee.

  	
  47

  
	
  SECTION 5.4

  	
  Trustee May File Proofs of Claim.

  	
  47

  
	
  SECTION 5.5

  	
  Trustee May Enforce Claims Without
  Possession of Securities.

  	
  48

  
	
  SECTION 5.6

  	
  Application of Money Collected.

  	
  48

  
	
  SECTION 5.7

  	
  Limitation on Suits.

  	
  49

  
	
  SECTION 5.8

  	
  Unconditional Right of Holders to
  Receive Principal, Premium and Interest and to Convert.

  	
  49

  
	
  SECTION 5.9

  	
  Restoration of Rights and Remedies.

  	
  50

  
	
  SECTION 5.10

  	
  Rights and Remedies Cumulative.

  	
  50

  
	
  SECTION 5.11

  	
  Delay or Omission Not Waiver.

  	
  50

  
	
  SECTION 5.12

  	
  Control by Holders of Securities.

  	
  50

  
	
  SECTION 5.13

  	
  Waiver of Past Defaults.

  	
  51

  
	
  SECTION 5.14

  	
  Undertaking for Costs.

  	
  51

  
	
  SECTION 5.15

  	
  Waiver of Stay, Usury or Extension
  Laws.

  	
  51

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  THE TRUSTEE

  	
  52

  
	
   

  	
   

  	
   

  
	
  SECTION 6.1

  	
  Certain Duties and Responsibilities.

  	
  52

  
	
  SECTION 6.2

  	
  Notice of Defaults.

  	
  53

  
	
  SECTION 6.3

  	
  Certain Rights of Trustee.

  	
  53

  
	
  SECTION 6.4

  	
  Not Responsible for Recitals or
  Issuance of Securities.

  	
  54

  
	
  SECTION 6.5

  	
  May Hold Securities, Act as Trustee
  Under Other Indentures.

  	
  55

  
	
  SECTION 6.6

  	
  Money Held in Trust.

  	
  55

  
	
  SECTION 6.7

  	
  Compensation and Reimbursement.

  	
  55

  
	
  SECTION 6.8

  	
  Corporate Trustee Required;
  Eligibility.

  	
  56

  
	
  SECTION 6.9

  	
  Resignation and Removal; Appointment
  of Successor.

  	
  56

  
	
  SECTION 6.10

  	
  Acceptance of Appointment by
  Successor.

  	
  57

  
	
  SECTION 6.11

  	
  Merger, Conversion, Consolidation or
  Succession to Business.

  	
  58

  
	
  SECTION 6.12

  	
  Authenticating Agents.

  	
  58

  
	
  SECTION 6.13

  	
  Disqualification; Conflicting
  Interests.

  	
  59

  
	
  SECTION 6.14

  	
  Preferential Collection of Claims
  Against Company.

  	
  59

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
  CONSOLIDATION, MERGER, CONVEYANCE,
  TRANSFER OR LEASE

  	
  60

  
	
   

  	
   

  	
   

  
	
  SECTION 7.1

  	
  Company May Consolidate, Etc. Only on
  Certain Terms.

  	
  60

  
	
  SECTION 7.2

  	
  Successor Substituted.

  	
  60

  

 

ii

 

	
  ARTICLE VIII

  	
  SUPPLEMENTAL INDENTURES

  	
  61

  
	
   

  	
   

  	
   

  
	
  SECTION 8.1

  	
  Supplemental Indentures Without
  Consent of Holders of Securities.

  	
  61

  
	
  SECTION 8.2

  	
  Supplemental Indentures with Consent
  of Holders of Securities.

  	
  62

  
	
  SECTION 8.3

  	
  Execution of Supplemental Indentures.

  	
  63

  
	
  SECTION 8.4

  	
  Effect of Supplemental Indentures.

  	
  63

  
	
  SECTION 8.5

  	
  Reference in Securities to
  Supplemental Indentures.

  	
  63

  
	
  SECTION 8.6

  	
  Notice of Supplemental Indentures.

  	
  64

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
  MEETINGS OF HOLDERS OF SECURITIES

  	
  64

  
	
   

  	
   

  	
   

  
	
  SECTION 9.1

  	
  Purposes for Which Meetings May Be
  Called.

  	
  64

  
	
  SECTION 9.2

  	
  Call, Notice and Place of Meetings.

  	
  64

  
	
  SECTION 9.3

  	
  Persons Entitled to Vote at Meetings.

  	
  65

  
	
  SECTION 9.4

  	
  Quorum; Action.

  	
  65

  
	
  SECTION 9.5

  	
  Determination of Voting Rights;
  Conduct and Adjournment of Meetings.

  	
  66

  
	
  SECTION 9.6

  	
  Counting Votes and Recording Action of
  Meetings.

  	
  66

  
	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
  COVENANTS

  	
  67

  
	
   

  	
   

  	
   

  
	
  SECTION 10.1

  	
  Payment of Principal, Premium and
  Interest.

  	
  67

  
	
  SECTION 10.2

  	
  Maintenance of Offices or Agencies.

  	
  67

  
	
  SECTION 10.3

  	
  Money for Security Payments to Be
  Held in Trust.

  	
  68

  
	
  SECTION 10.4

  	
  Existence.

  	
  69

  
	
  SECTION 10.5

  	
  Maintenance of Properties.

  	
  69

  
	
  SECTION 10.6

  	
  Payment of Taxes and Other Claims.

  	
  69

  
	
  SECTION 10.7

  	
  Registration and Listing.

  	
  70

  
	
  SECTION 10.8

  	
  Statement by Officers as to Default.

  	
  70

  
	
  SECTION 10.9

  	
  Delivery of Certain Information.

  	
  70

  
	
  SECTION 10.10

  	
  Resale of Certain Securities.

  	
  71

  
	
  SECTION 10.11

  	
  Registration Rights.

  	
  71

  
	
  SECTION 10.12

  	
  Waiver of Certain Covenants.

  	
  72

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI

  	
  REDEMPTION OF SECURITIES

  	
  72

  
	
   

  	
   

  	
   

  
	
  SECTION 11.1

  	
  Right of Redemption.

  	
  72

  
	
  SECTION 11.2

  	
  Applicability of Article.

  	
  72

  
	
  SECTION 11.3

  	
  Election to Redeem; Notice to
  Trustee; Public Announcement.

  	
  72

  
	
  SECTION 11.4

  	
  Selection by Trustee of Securities to
  Be Redeemed.

  	
  73

  
	
  SECTION 11.5

  	
  Notice of Redemption.

  	
  73

  
	
  SECTION 11.6

  	
  Deposit of Redemption Price.

  	
  74

  

 

iii

 

	
  SECTION 11.7

  	
  Securities Payable on Redemption
  Date.

  	
  74

  
	
  SECTION 11.8

  	
  Conversion Arrangement on Call for Redemption.

  	
  75

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII

  	
  CONVERSION OF SECURITIES

  	
  76

  
	
   

  	
   

  	
   

  
	
  SECTION 12.1

  	
  Conversion Privilege and Conversion
  Rate.

  	
  76

  
	
  SECTION 12.2

  	
  Exercise of Conversion Privilege.

  	
  76

  
	
  SECTION 12.3

  	
  Fractions of Shares.

  	
  78

  
	
  SECTION 12.4

  	
  Adjustment of Conversion Rate.

  	
  78

  
	
  SECTION 12.5

  	
  Notice of Adjustments of Conversion
  Rate.

  	
  83

  
	
  SECTION 12.6

  	
  Notice of Certain Corporate Action.

  	
  83

  
	
  SECTION 12.7

  	
  Company to Reserve Common Stock.

  	
  84

  
	
  SECTION 12.8

  	
  Taxes on Conversions.

  	
  84

  
	
  SECTION 12.9

  	
  Covenant as to Common Stock.

  	
  85

  
	
  SECTION 12.10

  	
  Cancellation of Converted
  Securities.

  	
  85

  
	
  SECTION 12.11

  	
  Provision in Case of Consolidation,
  Merger or Sale of Assets.

  	
  85

  
	
  SECTION 12.12

  	
  Rights Issued in Respect of Common
  Stock.

  	
  86

  
	
  SECTION 12.13

  	
  Responsibility of Trustee for
  Conversion Provisions.

  	
  87

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIII

  	
  REPURCHASE OF SECURITIES AT THE
  OPTION OF THE HOLDER UPON A CHANGE IN CONTROL

  	
  87

  
	
   

  	
   

  	
   

  
	
  SECTION 13.1

  	
  Right to Require Repurchase.

  	
  87

  
	
  SECTION 13.2

  	
  Conditions to the Company’s Election
  to Pay the Repurchase Price in Common Stock.

  	
  88

  
	
  SECTION 13.3

  	
  Notices; Method of Exercising
  Repurchase Right, Etc.

  	
  89

  
	
  SECTION 13.4

  	
  Certain Definitions.

  	
  92

  
	
  SECTION 13.5

  	
  Consolidation, Merger, etc.

  	
  93

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIV

  	
  HOLDERS LISTS AND REPORTS BY TRUSTEE
  AND COMPANY; NON-RECOURSE

  	
  94

  
	
   

  	
   

  	
   

  
	
  SECTION 14.1

  	
  Company to Furnish Trustee Names and
  Addresses of Holders.

  	
  94

  
	
  SECTION 14.2

  	
  Preservation of Information.

  	
  94

  
	
  SECTION 14.3

  	
  Reports by Trustee.

  	
  94

  
	
  SECTION 14.4

  	
  Reports by Company.

  	
  95

  
	
   

  	
   

  	
   

  
	
  ARTICLE XV

  	
  IMMUNITY OF INCORPORATORS,
  STOCKHOLDERS, OFFICERS AND DIRECTORS

  	
  95

  
	
   

  	
   

  	
   

  
	
  SECTION 15.1

  	
  Indenture and Securities Solely
  Corporate Obligations.

  	
  95

  

 

iv

 

CROSS-REFERENCE TABLE*

 

	
  Trust Indenture

  Act Section

  	
   

  	
  Indenture

  Section

  
	
   

  	
   

  	
   

  
	
  310(a)(1)

  	
   

  	
  6.8

  
	
  (a)(2)

  	
   

  	
  6.8

  
	
  (a)(3)

  	
   

  	
  n/a

  
	
  (a)(4)

  	
   

  	
  n/a

  
	
  (a)(5)

  	
   

  	
  6.8

  
	
  (b)

  	
   

  	
  6.13

  
	
  (c)

  	
   

  	
  n/a

  
	
   

  	
   

  	
   

  
	
  311(a)

  	
   

  	
  6.14

  
	
  (b)

  	
   

  	
  6.14

  
	
  (c)

  	
   

  	
  n/a

  
	
   

  	
   

  	
   

  
	
  312(a)

  	
   

  	
  14.1

  
	
  (b)

  	
   

  	
  14.1

  
	
  (c)

  	
   

  	
  14.2

  
	
   

  	
   

  	
   

  
	
  313(a)

  	
   

  	
  14.3

  
	
  (b)(1)

  	
   

  	
  14.3

  
	
  (b)(2)

  	
   

  	
  14.3

  
	
  (c)

  	
   

  	
  14.3

  
	
  (d)

  	
   

  	
  14.4

  
	
   

  	
   

  	
   

  
	
  314(a)

  	
   

  	
  14.4

  
	
  (b)

  	
   

  	
  n/a

  
	
  (c)(1)

  	
   

  	
  1.2

  
	
  (c)(2)

  	
   

  	
  1.2

  
	
  (c)(3)

  	
   

  	
  n/a

  
	
  (d)

  	
   

  	
  n/a

  
	
  (e)

  	
   

  	
  1.2

  
	
  (f)

  	
   

  	
  n/a

  
	
   

  	
   

  	
   

  
	
  315(a)

  	
   

  	
  6.1

  
	
  (b)

  	
   

  	
  6.2, 10.8

  
	
  (c)

  	
   

  	
  6.3

  
	
  (d)

  	
   

  	
  6.1

  
	
  (e)

  	
   

  	
  5.14

  
	
   

  	
   

  	
   

  
	
  316(a)(last sentence)

  	
   

  	
  12.4

  
	
  (a)(1)(A)

  	
   

  	
  5.12

  
	
  (a)(1)(B)

  	
   

  	
  5.13

  

 

v

 

	
  (a)(2)

  	
   

  	
  n/a

  
	
  (b)

  	
   

  	
  5.8

  
	
  (c)

  	
   

  	
  2.2

  
	
   

  	
   

  	
   

  
	
  317(a)(1)

  	
   

  	
  5.3

  
	
  (a)(2)

  	
   

  	
  5.4

  
	
  (b)

  	
   

  	
  6.2

  
	
   

  	
   

  	
   

  
	
  318(a)

  	
   

  	
  1.13

  
	
  (b)

  	
   

  	
  n/a

  
	
  (c)

  	
   

  	
  1.13

  

 

“n/a” means not
applicable.

 

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

 

vi

 

INDENTURE, dated as of
May 3, 2004, between MEDAREX, INC., a corporation duly organized and existing
under the laws of the State of New Jersey, having its principal office at 707
State Road #206, Princeton, NJ 08540 (herein called the “Company”), and
Wilmington Trust Company, a Delaware banking company, as Trustee hereunder
(herein called the “Trustee”).

 

RECITALS OF THE
COMPANY

 

The Company has duly
authorized the creation of an issue of its 2.25% Convertible Senior Notes due
May 15, 2011 (herein called the “Securities”) of substantially the tenor
and amount hereinafter set forth, and to provide therefor the Company has duly
authorized the execution and delivery of this Indenture.

 

All things necessary to
make the Securities, when the Securities are executed by the Company and
authenticated and delivered hereunder, the valid obligations of the Company,
and to make this Indenture a valid agreement of the Company, in accordance with
their and its terms, have been done. Further, all things necessary to duly
authorize the issuance of the Common Stock of the Company issuable upon the conversion
of the Securities, and to duly reserve for issuance the number of shares of
Common Stock issuable upon such conversion, have been done.

 

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 I

 

DEFINITIONS AND
OTHER PROVISIONS OF GENERAL APPLICATION

 

SECTION 1.1                                                  Definitions.

 

For all purposes of this
Indenture, except as otherwise expressly provided or unless the context
otherwise requires:

 

(1)                                  the
terms defined in this Article have the meanings assigned to them in this
Article and include the plural as well as the singular;

 

(2)                                  all
references in this Indenture and the Securities to interest in respect of any
Security shall be deemed to mean and include all Additional Securities, if any,
and Liquidated Damages, if any, in respect of such Security, unless the context
otherwise requires, and express mention of Additional Securities or the payment
of Liquidated Damages in any provision hereof or thereof shall not be construed
as excluding reference to Additional Securities or Liquidated Damages in those
provisions hereof or thereof where such express mention is not made; all
references in this Indenture and the Securities to principal in respect of any
Security shall be deemed to mean and include any Redemption Price payable in
respect of such Security pursuant to any redemption hereunder (and all such
references to the Stated Maturity of the principal in respect of any Security
shall be deemed to mean and include the Redemption Date with respect

 

 

to any such Redemption Price), and express mention of the payment of
any Redemption Price in any provision hereof or thereof shall not be construed
as excluding reference to any Redemption Price in those provisions hereof or
thereof where such express reference is not made;

 

(3)                                  all
accounting terms not otherwise defined herein have the meanings assigned to
them in accordance with generally accepted accounting principles in the United
States, and, except as otherwise herein expressly provided, the term “generally
accepted accounting principles” with respect to any computation required or permitted
hereunder shall mean such accounting principles as are generally accepted at
the date of such computation; and

 

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

 

“Act,” when used
with respect to any Holder of a Security, has the meaning specified in
Section 1.4.

 

“Additional Securities”
has the meaning specified in Section 3.1.

 

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

 

“Agent Member”
means any member of, or participant in, the Depositary.

 

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

 

“Authenticating Agent”
means any Person authorized pursuant to Section 6.12 to act on behalf of
the Trustee to authenticate Securities.

 

“Authorized Newspaper”
means a newspaper in the English language, customarily published on each
Monday, Tuesday, Wednesday, Thursday and Friday, whether or not published on
Saturdays, Sundays or holidays, and of general circulation in a Place of
Payment.

 

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

 

“Board Resolution”
means a resolution duly adopted by the Board of Directors, a copy of which,
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, shall have been delivered to the Trustee.

 

2

 

“Business Day,”
when used with respect to any Place of Payment, Place of Conversion or any
other place, as the case may be, means each Monday, Tuesday, Wednesday,
Thursday and Friday which is not a day on which banking institutions in such
Place of Payment, Place of Conversion or other place, as the case may be, are
authorized or obligated by law or executive order to close; provided,
however,
that a day on which banking institutions in New York, New York are authorized
or obligated by law or executive order to close shall not be a Business Day for
purposes of Section 11.6.

 

“Change in Control”
has the meaning specified in Section 13.4(2).

 

“Closing Price Per
Share” means, with respect to the Common Stock, for any day, (i) the last
reported sale price regular way on The Nasdaq National Market, or if no sale
occurred on such date, the average of the reported closing bid and asked prices
regular way, or, (ii) if the Common Stock is not quoted on The Nasdaq National
Market, the last reported sale price regular way per share or, in case no such
reported sale takes place on such day, the average of the reported closing bid
and asked prices regular way, in either case, on the principal national
securities exchange on which the Common Stock is listed or admitted to trading,
(iii) if the Common Stock is not quoted on The Nasdaq National Market or listed
or admitted to trading on any national securities exchange, the average of the
closing bid prices in the over-the-counter market as furnished by any New York
Stock Exchange member firm selected from time to time by the Company for that
purpose.

 

“Code” has the
meaning specified in Section 2.l.

 

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

 

“Common Stock”
means the common stock, par value $0.01 per share, of the Company authorized at
the date of this Indenture as originally executed or as such stock may be
constituted from time to time.  Subject
to the provisions of Section 12.11, shares issuable on conversion or
repurchase of Securities shall include only shares of Common Stock or shares of
any class or classes of common stock resulting from any reclassification or
reclassifications thereof; provided, however, that if at any time
there shall be more than one such resulting class, the shares so issuable on
conversion of Securities shall include shares of all such classes, and the
shares of each such class then so issuable 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 and provided further, that all
references to “Common Stock” payable in connection with the purchase of
Securities upon a Change in Control in accordance with Section 13.2 or
payable in connection with the redemption of the Securities in accordance with
Article XI shall be deemed to include common stock of any entity that the
Company consolidates or merges with or into, that is merged into the Company, or
to which the Company sells or transfers all or substantially all of its assets
or of any Affiliate of such entity.

 

3

 

“common stock”
includes any stock of any class of capital stock or common equity which has 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 issuer
thereof, which has unrestricted voting rights and which is not subject to
redemption by the issuer thereof.

 

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

 

“Company Notice”
has the meaning specified in Section 13.3.

 

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

 

“Constituent Person”
has the meaning specified in Section 12.11.

 

“Conversion Agent”
means any Person authorized by the Company to convert Securities in accordance
with Article XII. The Company has initially appointed the Trustee as its
Conversion Agent pursuant to Section 10.2 hereof.

 

“Conversion Price”
has the meaning specified in Section 13.4(3).

 

“Conversion Rate”
has the meaning specified in Section 12.1.

 

“Corporate Trust
Office” means the office of the Trustee at which at any particular time its
corporate trust business shall be principally administered (which at the date
of this Indenture is located at Rodney Square North, 1100 North Market Street,
Wilmington, Delaware 19890).

 

“corporation”
means a corporation, company, association, joint-stock company or business
trust.

 

“Defaulted Interest”
has the meaning specified in Section 3.7.

 

“Depositary”
means, with respect to any Securities (including any Global Securities), a
clearing agency that is registered as such under the Exchange Act and is
designated by the Company to act as Depositary for such Securities (or any successor
securities clearing agency so registered).

 

“Dollar” or “U.S.
$” means a dollar or other equivalent unit in such coin or currency of the
United States as at the time shall be legal tender for the payment of public
and private debts.

 

“DTC” means The
Depository Trust Company, a New York corporation.

 

“Effective Failure”
has the meaning specified in Section 2.2.

 

4

 

“Effectiveness Period”
has the meaning specified in Section 2.2.

 

“Event of Default”
has the meaning specified in Section 5.1.

 

“Exchange Act”
means the United States Securities Exchange Act of 1934 (or any successor
statute), as amended from time to time.

 

“Global Security”
means a Security that is registered in the Security Register in the name of a
Depositary or a nominee thereof.

 

“Holder” means the
Person in whose name the Security is registered in the Security Register.

 

“Indenture” means
this Indenture as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered
into pursuant to the applicable provisions hereof, including, for all purposes
of this instrument and any such supplemental indenture, the provisions of the
Trust Indenture Act that are deemed to be a part of and govern this instrument
and any such supplemental indenture, respectively.

 

“Initial Purchasers”
means Goldman, Sachs & Co. and J.P. Morgan Securities Inc.

 

“Initial Purchasers’
Option” has the meaning specified in Section 3.1.

 

“Interest Payment Date”
means the Stated Maturity of an installment of interest on the Securities.

 

“Issue Date” means
May 3, 2004.

 

“Liquidated Damages”
has the meaning specified in Section 2.2.

 

“Maturity,” when
used with respect to any Security, means the date on which the principal of
such Security becomes due and payable as therein or herein provided, whether at
the Stated Maturity or by declaration of acceleration, call for redemption,
exercise of the repurchase right set forth in Article XIII or otherwise.

 

“Maximum Conversion
Rate” has the meaning specified in Section 12.4(14).

 

“Non-electing Share”
has the meaning specified in Section 12.11.

 

“Notice of Default”
has the meaning specified in Section 5.1.

 

“Officers’ Certificate”
means a certificate signed by the Chairman of the Board, a Vice Chairman of the
Board, the Chief Executive Officer, the President or a Vice President, and by
the principal financial officer, the Treasurer, an Assistant Treasurer, the
Secretary or an Assistant Secretary of the Company and delivered to the
Trustee.

 

“Opinion of Counsel”
means a written opinion of counsel, who may be counsel for the Company and who
shall be acceptable to the Trustee.

 

5

 

“Optional Redemption”
has the meaning specified in Section 2.2.

 

“Outstanding,”
when used with respect to Securities, means, as of the date of determination,
all Securities theretofore authenticated and delivered under this Indenture,
except:

 

(i)                                     Securities
theretofore canceled by the Trustee or delivered to the Trustee for
cancellation;

 

(ii)                                  Securities
for which money in the necessary amount to pay or redeem such Securities has
been theretofore deposited with the Trustee or any Paying Agent (other than the
Company) in trust or set aside and segregated in trust by the Company (if the
Company shall act as its own Paying Agent) for the Holders of such Securities, provided
that if such Securities are to be redeemed, notice of such redemption has been
duly given pursuant to this Indenture or irrevocable instructions have been
given to the Trustee to give such notice;

 

(iii)                               Securities
which have been paid pursuant to Section 3.6 or in exchange for or in lieu
of which other Securities have been authenticated and delivered pursuant to
this Indenture, other than any such Securities in respect of which there shall
have been presented to the Trustee proof satisfactory to it that such
Securities are held by a bona fide purchaser in whose hands such Securities are
valid obligations of the Company; and

 

(iv)                              Securities
converted into Common Stock pursuant to Article XII;

 

provided, however, that in determining
whether the Holders of the requisite aggregate principal amount of Outstanding
Securities are present at a meeting of Holders of Securities for quorum
purposes or have given any request, demand, authorization, direction, notice,
consent or waiver hereunder, Securities owned by the Company or any other
obligor upon the Securities or any Affiliate of the Company or such other
obligor shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Trustee shall be protected in relying upon any such
determination as to the presence of a quorum or upon any such request, demand,
authorization, direction, notice, consent or waiver, only Securities which a
Responsible Officer of the Trustee actually knows to be so owned shall be so
disregarded. Securities so owned which have been pledged in good faith may be
regarded as Outstanding if the pledgee establishes to the satisfaction of the
Trustee the pledgee’s right so to act with respect to such Securities and that
the pledgee is not the Company or any other obligor upon the Securities or any
Affiliate of the Company or such other obligor.

 

“Paying Agent”
means any Person authorized by the Company to pay the principal of, and
premium, if any, or interest on any Securities on behalf of the Company and,
except as otherwise specifically set forth herein, such term shall include the
Company if it shall act as its own Paying Agent. The Company has initially
appointed the Trustee as its Paying Agent pursuant to Section 10.2 hereof.

 

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

 

“Place of Conversion”
has the meaning specified in Section 3.1.

 

6

 

“Place of Payment”
has the meaning specified in Section 3.1.

 

“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 3.6 in exchange for or in lieu of a mutilated, destroyed,
lost or stolen Security shall be deemed to evidence the same debt as the
mutilated, destroyed, lost or stolen Security.

 

“Press Release”
shall mean any press release issued by the Company and disseminated through
Reuters Business News Services and Bloomberg Business News.

 

“Purchase Agreement”
means the Purchase Agreement, dated as of April 27, 2004, between the
Company and the Initial Purchasers, as such agreement may be amended from time
to time.

 

“Qualified
Institutional Buyer” shall mean a “qualified institutional buyer” as
defined in Rule 144A.

 

“Record Date”
means any Regular Record Date or Special Record Date.

 

“Record Date Period”
means the period from the close of business of any Regular Record Date next
preceding any Interest Payment Date to the opening of business on such Interest
Payment Date.

 

“Redemption Date,”
when used with respect to any Security to be redeemed, means the date fixed for
such redemption by or pursuant to this Indenture.

 

“Redemption Price,”
when used with respect to any Security to be redeemed, means the price at which
it is to be redeemed pursuant to this Indenture.

 

“Registrable
Securities” has the meaning specified in Section 10.11.

 

“Registration Default”
has the meaning specified in Section 2.2.

 

“Registration Rights
Agreement” means the Registration Rights Agreement, dated as of May 3,
2004, between the Company and the Initial Purchasers, as such agreement may be
amended from time to time in accordance with its terms.

 

“Regular Record Date”
for interest payable in respect of any Security on any Interest Payment Date
means the close of business on May 1 or November 1 (whether or not a
Business Day), as the case may be, next preceding such Interest Payment Date.

 

“Repurchase Date”
has the meaning specified in Section 13.1.

 

“Repurchase Price”
has the meaning specified in Section 13.1.

 

“Responsible Officer,”
when used with respect to the Trustee, means any Officer within the Corporate
Trust Office of the Trustee, including, without limitation, any vice president,

 

7

 

assistant vice president, assistant treasurer, corporate trust officer
or other employee of the Trustee customarily performing functions similar to
those performed by any of the above designated officers, and also means, with
respect to a particular corporate trust matter, any other officer to whom such
matter is referred because of his knowledge and familiarity with the particular
subject.

 

“Restricted Global
Security” has the meaning specified in Section 2.1.

 

“Restricted Securities”
means all Securities required pursuant to Section 3.5(3) to bear any
Restricted Securities Legend. Such term includes the Restricted Global
Security.

 

“Restricted Securities
Legend” means, collectively, the legends substantially in the forms of the
legends required in the form of Security set forth in Section 2.2 to be
placed upon each Restricted Security.

 

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

 

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

 

“Rule 144A Information”
has the meaning specified in Section 10.9.

 

“Securities” has
the meaning ascribed to it in the first paragraph under the caption “Recitals
of the Company.”

 

“Securities Act”
means the United States Securities Act of 1933 (or any successor statute), as
amended from time to time.

 

“Security Register”
and “Security Registrar” have the respective meanings specified in
Section 3.5.

 

“Shelf Registration
Statement” has the meaning specified in Section 2.2.

 

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

 

“Special Record Date”
for the payment of any Defaulted Interest means a date fixed by the Company
pursuant to Section 3.7.

 

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

 

“Subsidiary” means
a corporation more than 50% of the outstanding voting stock of which is owned,
directly or indirectly, by the Company or by one or more other Subsidiaries, or
by the Company and one or more other Subsidiaries. For the purposes of this
definition, “voting

 

8

 

stock” means stock or other similar interests in the corporation which
ordinarily has or have voting power for the election of directors, or persons
performing similar functions, whether at all times or only so long as no senior
class of stock or other interests has or have such voting power by reason of
any contingency.

 

“Successor Security”
of any particular Security means every Security issued after, and 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 3.6 in exchange for or in lieu of a mutilated,
destroyed, lost or stolen Security shall be deemed to evidence the same debt as
the mutilated, destroyed, lost or stolen Security.

 

“Surrender Certificate”
means a certificate substantially in the form set forth in Annex B.

 

“Trading Day”
means (i) if the Common Stock is quoted on The Nasdaq National Market or any
other system of automated dissemination of quotations of securities prices,
days on which trades may be effected through such system, (ii) if the Common
Stock is listed or admitted for trading on any national or regional securities
exchange, days on which such national or regional securities exchange is open for
business, or (iii) if the Common Stock is not listed or admitted for trading on
a national or regional securities exchange or quoted on The Nasdaq National
Market or any other system of automated dissemination of quotation of
securities prices, days on which the Common Stock is traded regular way in the
over-the-counter market and for which a closing bid and a closing asked price
for the Common Stock are available.

 

“Trigger Event”
has the meaning specified in Section 12.12.

 

“Trust Indenture Act”
means the Trust Indenture Act of 1939, and the rules and regulations
thereunder, as in force at the date as of which this Indenture was executed, provided,
however,
that in the event the Trust Indenture Act of 1939 is amended after such date,
“Trust Indenture Act” means, to the extent required by any such amendment, the
Trust Indenture Act of 1939, and the rules and regulations thereunder, as so
amended.

 

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

 

“United States”
means the United States of America (including the States and the District of
Columbia), its territories, its possessions and other areas subject to its
jurisdiction (its “possessions” including Puerto Rico, the U.S. Virgin Islands,
Guam, American Samoa, Wake Island and the Northern Mariana Islands).

 

“Unrestricted
Securities Certificate” means a certificate substantially in the form set
forth in Annex A.

 

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

 

9

 

SECTION 1.2                                                  Compliance
Certificates and Opinions.

 

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

 

Every certificate or
opinion with respect to compliance with a condition or covenant provided for in
this Indenture (including certificates provided for in Section 10.8) shall
include:

 

(1)                                  a
statement that each individual signing such certificate or opinion has read
such covenant or condition and the definitions herein relating thereto;

 

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

 

(3)                                  a
statement that, in the opinion of such individual, 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, in the opinion of each individual, such condition or
covenant has been complied with.

 

SECTION 1.3                                                  Form
of Documents Delivered to the Trustee.

 

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

 

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

 

10

 

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 1.4                                                  Acts
of Holders of Securities.

 

(1)                                  Any
request, demand, authorization, direction, notice, consent, waiver or other
action provided or permitted by this Indenture to be given or taken by Holders
of Securities may be embodied in and evidenced by (A) one or more instruments
of substantially similar tenor signed by such Holders in person or by an agent
or proxy duly appointed in writing by such Holders or (B) 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 IX. Such action shall
become effective when such instrument or instruments or record is delivered to
the Trustee and, where it is hereby expressly required, to the Company. The
Trustee shall promptly deliver to the Company copies of all such instruments
and records delivered to the Trustee. Such instrument or instruments and
records (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 and (subject to Section 6.1) 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 9.6.

 

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

 

(3)                                  The
principal amount and serial number of any Security held by any Person, the date
of his holding the same, and the ownership of Securities generally shall be
proved by the Security Register.

 

(4)                                  The
fact and date of execution of any such instrument or writing and the authority
of the Person executing the same may also be proved in any other manner which
the Trustee deems sufficient; and the Trustee may in any instance require
further proof with respect to any of the matters referred to in this
Section 1.4.

 

(5)                                  The
Company may set any day as the record date for the purpose of determining the
Holders entitled to give or take any request, demand, authorization, direction,
notice, consent, waiver or other action, or to vote on any action, authorized
or permitted by this Indenture to be given or taken by Holders. Promptly and in
any case not later than ten days after setting a record date, the Company shall
notify the Trustee and the Holders of such record date. If not set by the
Company prior to the first solicitation of a Holder made by any Person in
respect of any such action, or, in the case of any such vote, prior to such
vote, the record date for any such action or

 

11

 

vote shall be the 30th day (or, if later, the date of the most recent
list of Holders required to be provided pursuant to Section 14.1) prior to
such first solicitation or vote, as the case may be. With regard to any record
date, the Holders on such date (or their duly appointed agents or proxies), and
only such Persons, shall be entitled to give or take, or vote on, the relevant
action, whether or not such Holders remain Holders after such record date.
Notwithstanding the foregoing, the Company shall not set a record date for, and
the provisions of this paragraph shall not apply with respect to, any notice,
declaration or direction referred to in the next paragraph.

 

Upon receipt by the
Trustee from any Holder of (i) any notice of default or breach referred to in
Section 5.1(4), if such default or breach has occurred and is continuing
and the Trustee shall not have given such a notice to the Company, (ii) any
declaration of acceleration referred to in Section 5.2, if an Event of Default
has occurred and is continuing and the Trustee shall not have given such a
declaration to the Company, or (iii) any direction referred to in
Section 5.12, if the Trustee shall not have taken the action specified in
such direction, then, with respect to clauses (ii) and (iii), a record date
shall automatically and without any action by the Company or the Trustee be set
for determining the Holders entitled to join in such declaration or direction,
which record date shall be the close of business on the tenth day (or, if such
day is not a Business Day, the first Business Day thereafter) following the day
on which the Trustee receives such declaration or direction, and, with respect
to clause (i), the Trustee may set any day as a record date for the purpose of
determining the Holders entitled to join in such notice of default. Promptly
after such receipt by the Trustee of any such declaration or direction referred
to in clause (ii) or (iii), and promptly after setting any record date with
respect to clause (i), and as soon as practicable thereafter, the Trustee shall
notify the Company and the Holders of any such record date so fixed. The
Holders on such record date (or their duly appointed agents or proxies), and
only such Persons, shall be entitled to join in such notice, declaration or
direction, whether or not such Holders remain Holders after such record date; provided that,
unless such notice, declaration or direction shall have become effective by
virtue of Holders of the requisite principal amount of Securities on such
record date (or their duly appointed agents or proxies) having joined therein
on or prior to the 180th day after such record date, such notice, declaration
or direction shall automatically and without any action by any Person be
canceled and of no further effect. Nothing in this paragraph shall be construed
to prevent a Holder (or a duly appointed agent or proxy thereof) from giving,
before or after the expiration of such 180-day period, a notice, declaration or
direction contrary to or different from, or, after the expiration of such
period, identical to, the notice, declaration or direction to which such record
date relates, in which event a new record date in respect thereof shall be set
pursuant to this paragraph. In addition, nothing in this paragraph shall be
construed to render ineffective any notice, declaration or direction of the
type referred to in this paragraph given at any time to the Trustee and the
Company by Holders (or their duly appointed agents or proxies) of the requisite
principal amount of Securities on the date such notice, declaration or
direction is so given.

 

(6)                                  Except
as provided in Sections 5.12 and 5.13, any request, demand, authorization,
direction, notice, consent, election, waiver or other Act of the Holder of any
Security shall bind every future Holder of the same Security and the Holder of
every Security issued upon the registration of transfer thereof or in exchange
therefor or in lieu thereof in respect of anything done, omitted or suffered to
be done by the Trustee or the Company in reliance thereon, whether or not
notation of such action is made upon such Security.

 

12

 

(7)                                  The
provisions of this Section 1.4 are subject to the provisions of
Section 9.5.

 

SECTION 1.5                                                  Notices,
Etc. to the Trustee and Company.

 

Any request, demand,
authorization, direction, notice, consent, election, waiver or other Act of
Holders of Securities or other document provided or permitted by this Indenture
to be made upon, given or furnished to, or filed with,

 

(1)                                  the
Trustee by any Holder of Securities or by the Company shall be sufficient for
every purpose hereunder if made, given, furnished or filed in writing to or
with the Trustee and received at its Corporate Trust Office, Attention:  Medarex, Inc. 2.25% Convertible Senior Notes
due May 15, 2011.

 

(2)                                  the
Company by the Trustee or by any Holder of Securities shall be sufficient for
every purpose hereunder (unless otherwise herein expressly provided) if in
writing, mailed, first-class postage prepaid, or telecopied and confirmed by
mail, first-class postage prepaid, or delivered by hand or overnight courier,
addressed to the Company at 707 State Road #206, Princeton, New Jersey 08540,
or at any other address previously furnished in writing to the Trustee by the
Company, and shall be deemed given when received.

 

Any request, demand,
authorization, direction, notice, consent, election or waiver required or
permitted under this Indenture shall be in the English language, except that
any published notice may be in an official language of the country of
publication.

 

SECTION 1.6                                                  Notice
to Holders of Securities; Waiver.

 

Except as otherwise
expressly provided herein, where this Indenture provides for notice to Holders
of Securities of any event, such notice shall be sufficiently given to Holders
if in writing and mailed, first-class postage prepaid or delivered by an
overnight delivery service to each Holder of a Security affected by such event,
at the address of such Holder as it appears in the Security Register, not
earlier than the earliest date and not later than the latest date prescribed
for the giving of such notice.

 

Neither the failure to
mail such notice, nor any defect in any notice so mailed, to any particular
Holder of a Security shall affect the sufficiency of such notice with respect
to other Holders of Securities. In case by reason of the suspension of regular
mail service or by reason of any other cause it shall be impracticable to give
such notice by mail, then such notification to Holders of Securities as shall
be made with the approval of the Trustee, which approval shall not be
unreasonably withheld, shall constitute a sufficient notification to such
Holders for every purpose hereunder.

 

Such notice shall be
deemed to have been given on the date of such mailing.

 

Where this Indenture
provides for notice in any manner, such notice may be waived in writing by the
Person entitled to receive such notice, either before or after the event, and
such waiver shall be the equivalent of such notice. Waivers of notice by
Holders of Securities shall be filed with the Trustee, but such filing shall
not be a condition precedent to the validity of any action taken in reliance
upon such waiver.

 

13

 

SECTION 1.7                                                  Effect
of Headings and Table of Contents.

 

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

 

SECTION 1.8                                                  Successors
and Assigns.

 

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

 

SECTION 1.9                                                  Separability
Clause.

 

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

 

SECTION 1.10                                            Benefits
of Indenture.

 

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

 

SECTION 1.11                                            Governing
Law.

 

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

 

SECTION 1.12                                            Legal
Holidays.

 

In any case where any
Interest Payment Date, Redemption Date, Repurchase Date or Stated Maturity of
any Security or the last day on which a Holder of a Security has a right to
convert his Security shall not be a Business Day at a Place of Payment or Place
of Conversion, as the case may be, then (notwithstanding any other provision of
this Indenture or of the Securities) payment of principal of, premium, if any,
or interest on, or the payment of the Redemption Price or Repurchase Price
(whether the same is payable in cash or in shares of Common Stock or a
combination thereof in the case of the Repurchase Price) with respect to, or delivery
for conversion of, such Security need not be made at such Place of Payment or
Place of Conversion, as the case may be, on or by such day, but may be made on
or by the next succeeding Business Day at such Place of Payment or Place of
Conversion, as the case may be, with the same force and effect as if made on
the Interest Payment Date, Redemption Date or Repurchase Date, or at the Stated
Maturity or by such last day for conversion; provided, however,
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, Repurchase Date, Stated Maturity
or last day for conversion, as the case may be.

 

14

 

SECTION 1.13                                            Conflict
with Trust Indenture Act.

 

If any provision hereof
limits, qualifies or conflicts with a provision of the Trust Indenture Act that
is required under such Act to be a part of and govern this Indenture, the
latter provision shall control. If any provision of this Indenture modifies or
excludes any provision of the Trust Indenture Act that may be so modified or
excluded, the latter provision shall be deemed to apply to this Indenture as so
modified or to be excluded, as the case may be. Until such time as this
Indenture shall be qualified under the Trust Indenture Act, this Indenture, the
Company and the Trustee shall be deemed for all purposes hereof to be subject
to and governed by the Trust Indenture Act to the same extent as would be the
case if this Indenture were so qualified on the date hereof.

 

ARTICLE II

 

SECURITY FORMS

 

SECTION 2.1                                                  Form
Generally.

 

The Securities shall be
in substantially the form set forth in this Article, with such appropriate
insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture, and may have such letters, numbers or other marks
of identification and such legends or endorsements placed thereon as may be
required to comply with the rules of any securities exchange, the Internal
Revenue Code of 1986, as amended, and regulations thereunder (the “Code”),
or as may, consistent herewith, be determined by the officers executing such
Securities, as evidenced by their execution thereof.  All Securities shall be in fully registered form, as opposed to
bearer form, and shall sometimes be referred to as “Registered Securities”.

 

The Trustee’s
certificates of authentication shall be in substantially the form set forth in
Section 2.3.

 

Conversion notices shall
be in substantially the form set forth in Section 2.4.

 

Repurchase notices shall
be substantially in the form set forth in Section 2.2.

 

The Securities shall be
printed, lithographed, typewritten or engraved or produced by any combination
of these methods or may be produced in any other manner permitted by the rules
of any automated quotation system or securities exchange (including on steel
engraved borders if so required by any securities exchange upon which the
Securities may be listed) on which the Securities may be quoted or listed, as
the case may be, all as determined by the officers executing such Securities,
as evidenced by their execution thereof.

 

Upon their original
issuance, Securities issued as contemplated by the Purchase Agreement to Qualified
Institutional Buyers in reliance on Rule 144A shall be issued in the form of
one or more Global Securities in definitive, fully registered form without
interest coupons and bearing the Restricted Securities Legend.  Such Global Security shall be registered in
the name of DTC, as Depositary, or its nominee and deposited with the Trustee,
as custodian for DTC, for credit by DTC to the respective accounts of
beneficial owners of the Securities represented

 

15

 

thereby (or such other accounts as they may direct). Such Global
Security, together with its Successor Securities which are Global Securities,
are collectively herein called the “Restricted Global Security.”

 

SECTION 2.2                                                  Form
of Security.

 

[FORM OF FACE]

 

[THE FOLLOWING LEGEND SHALL APPEAR ON
THE FACE OF EACH RESTRICTED SECURITY:

 

THIS NOTE AND ANY COMMON STOCK ISSUABLE UPON THE CONVERSION
OF THIS NOTE HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE SOLD OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION
THEREFROM.  EACH PURCHASER OF THIS NOTE
IS HEREBY NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE RELYING ON THE EXEMPTION
FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE
144A THEREUNDER.

 

THIS NOTE AND ANY COMMON STOCK ISSUABLE UPON CONVERSION OF
THIS NOTE MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A)
(1) TO A PERSON WHO THE TRANSFEROR REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT
ACQUIRING FOR ITS OWN ACCOUNT OR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER
IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (2) PURSUANT TO AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144
THEREUNDER (IF AVAILABLE), OR (3) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT, AND (B) IN ACCORDANCE WITH ALL APPLICABLE
SECURITIES LAWS OF THE STATES OF THE UNITED STATES AND OTHER JURISDICTIONS.

 

THIS NOTE, ANY SHARES OF COMMON STOCK ISSUABLE UPON ITS
CONVERSION AND ANY RELATED DOCUMENTATION MAY BE AMENDED OR SUPPLEMENTED FROM
TIME TO TIME TO MODIFY THE RESTRICTIONS ON RESALES AND OTHER TRANSFERS OF THIS
NOTE AND ANY SUCH SHARES TO REFLECT ANY CHANGE IN APPLICABLE LAW OR REGULATION
(OR THE INTERPRETATION THEREOF) OR IN PRACTICES RELATING TO THE RESALE OR
TRANSFER OF RESTRICTED SECURITIES GENERALLY. 
THE HOLDER OF THIS NOTE AND ANY SUCH SHARES SHALL BE DEEMED BY THE
ACCEPTANCE OF THIS NOTE AND ANY SUCH SHARES TO HAVE AGREED TO ANY SUCH
AMENDMENT OR SUPPLEMENT.]

 

[THE FOLLOWING LEGEND SHALL APPEAR ON
THE FACE OF EACH GLOBAL SECURITY:

 

16

 

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE
DEPOSITARY OR A NOMINEE OF THE DEPOSITARY, WHICH MAY BE TREATED BY THE COMPANY,
THE TRUSTEE AND ANY AGENT THEREOF AS OWNER AND HOLDER OF THIS SECURITY FOR ALL
PURPOSES.]

 

[THE FOLLOWING LEGEND SHALL APPEAR ON
THE FACE OF EACH GLOBAL SECURITY FOR WHICH THE DEPOSITORY TRUST COMPANY IS TO
BE THE DEPOSITARY:

 

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

 

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR
SECURITIES IN DEFINITIVE REGISTERED FORM IN THE LIMITED CIRCUMSTANCES REFERRED
TO IN THE INDENTURE, THIS GLOBAL 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.]

 

17

 

MEDAREX, INC.

 

2.25% CONVERTIBLE
SENIOR NOTE DUE MAY 15, 2011

 

	
  No.                   

  	
   

  	
  $                 

  

 

CUSIP NO. 583916AF8

 

Medarex, Inc., a
corporation duly organized and existing under the laws of the State of New
Jersey (herein called the “Company,” which term includes any successor
Person under the Indenture referred to on the reverse hereof), for value
received, hereby promises to pay to
                                  ,
or registered assigns, the principal sum of
                
United States Dollars
(U.S.$            
) [if
this Security is a Global Security, then insert – (which principal
amount may from time to time be [if Initial Purchasers’ Option is not exercised in full
on the Issue Date, then insert - increased or] decreased to such
other principal amounts (which, taken together with the principal amounts of
all other Outstanding Securities, shall not exceed [if Initial Purchasers’ Option is not
exercised on the Issue Date, then insert - $150,000,000 or
$150,000,000 if the Initial Purchasers’ Option is exercised in full] [if Initial
Purchasers’ Option is exercised in full on the Issue Date, then insert
- $200,000,000])) by adjustments made on the records of the Trustee hereinafter
referred to in accordance with the Indenture)] on May 15, 2011 and to pay
interest thereon, from May 3, 2004, or from the most recent Interest Payment
Date (as defined below) to which interest has been paid or duly provided for,
semi-annually in arrears on May 15 and November 15 in each year (each, an
“Interest Payment Date”), commencing November 15, 2004, at the rate
of 2.25% per annum, until the principal hereof is due, and at the rate of 2.25%
per annum on any overdue principal and premium, if any, and, to the extent
permitted by law, on any overdue interest. The interest so payable, and
punctually paid or duly provided for, on any Interest Payment Date will, as
provided in the Indenture, be paid to the Person in whose name this Security
(or one or more Predecessor Securities) is registered at the close of business
on the Regular Record Date for such interest, which shall be the May 1 or
November 1 (whether or not a Business Day), as the case may be, next
preceding such Interest Payment Date. 
Except as otherwise provided in the Indenture, any such interest not so
punctually paid or duly provided for will forthwith cease to be payable to the
Holder on such Regular Record Date and may either be paid to the Person in
whose name this Security (or one or more Predecessor Securities) is registered
at the close of business on a Special Record Date for the payment of such
Defaulted Interest to be fixed by the Company, notice whereof shall be given to
Holders of Securities not less than 10 days prior to the Special Record Date, or
be paid at any time in any other lawful manner not inconsistent with the
requirements of any automated quotation system or securities exchange on which
the Securities may be quoted or listed, and upon such notice as may be required
by such exchange, all as more fully provided in the Indenture. Payments of
principal shall be made upon the surrender of this Security at the option of
the Holder at the Corporate Trust Office of the Trustee, in such coin or
currency of the United States of America as at the time of payment shall be
legal tender for the payment of public and private debts, or at such other
offices or agencies as the Company may designate, by United States Dollar check
drawn on, or wire transfer to, a United States Dollar account (such a wire transfer
to be made only to a Holder of an aggregate principal amount of Securities in
excess of U.S. $2,000,000 and only if such Holder shall have furnished wire
instructions in writing to the Trustee no later than 15 days prior to the
relevant payment date) maintained by the payee with a

 

18

 

bank in the Borough of Manhattan, The City of New York. Payment of
interest on this Security may be made by United States Dollar check drawn on a
bank in the Borough of Manhattan, The City of New York mailed to the address of
the Person entitled thereto as such address shall appear in the Security
Register, or, upon written application by the Holder to the Security Registrar
setting forth wire instructions not later than the relevant Record Date, by
wire transfer to a United States Dollar account (such a wire transfer to be
made only to a Holder of an aggregate principal amount of Securities in excess
of U.S. $2,000,000 and only if such Holder shall have furnished wire instructions
in writing to the Trustee no later than 15 days prior to the relevant payment
date) maintained by the payee with a bank in the Borough of Manhattan, The City
of New York.

 

Except as specifically
provided herein and in the Indenture, the Company shall not be required to make
any payment with respect to any tax, assessment or other governmental charge
imposed by any government or any political subdivision or taxing authority
thereof or therein.

 

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.

 

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

 

19

 

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

 

	
   

  	
  MEDAREX, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Donald L.
  Drakeman

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  
	
  [Corporate Seal]

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Attest:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name: W. Bradford
  Middlekauff

  	
   

  
	
  Title:  Secretary

  	
   

  
						

 

 

TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

 

 

Dated:
May 3, 2004

 

 

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

 

 

	
   

  	
  WILMINGTON TRUST
  COMPANY, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  

 

20

[FORM OF REVERSE]

 

This Security is one of a
duly authorized issue of securities of the Company designated as its “2.25%
Convertible Senior Notes due May 15, 2011” (herein called the “Securities”),
limited in aggregate principal amount not to exceed [if no Additional Securities are issued
on the Issue Date - U.S. $150,000,000, as such amount may be
increased, but not by an amount in excess of $50,000,000, solely as a result of
the purchase of Additional Securities pursuant to the option granted by the
Company in the Purchase Agreement, to the several Initial Purchasers, issued
and to be issued] [if all Additional Securities are issued on the Issue
Date – U.S. $200,000,000 issued] under an Indenture, dated as of May
3, 2004 (herein called the “Indenture”), between the Company and
Wilmington Trust Company, a Delaware banking company, as Trustee (herein called
the “Trustee,” which term includes any successor trustee under the
Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitations
of rights, duties and immunities thereunder of the Company, the Trustee and the
Holders of the Securities and of the terms upon which the Securities are, and
are to be, authenticated and delivered. 
As provided in the Indenture and subject to certain limitations therein
set forth, Securities are exchangeable for a like aggregate principal amount of
Securities of any authorized denominations as requested by the Holder
surrendering the same upon surrender of the Security or Securities to be
exchanged, at the Corporate Trust Office of the Trustee.  The Trustee upon such surrender by the
Holder will issue the new Securities in the requested denominations.

 

No sinking fund is
provided for the Securities.

 

The Securities are
subject to redemption at the option of the Company (“Optional Redemption”) at
any time on and after May 20, 2009, in whole or in part, upon not more than 60
and not less than 30 days’ notice to Holders prior to the Redemption Date at a
Redemption Price (expressed as a percentage of the principal amount) of 100.6%
for the period beginning on May 20, 2009 and ending on May 14, 2010 and 100.3%
for the period beginning on May 15, 2010 and ending on May 14, 2011 and at a
Redemption Price equal to 100% of the principal amount on and after May 15,
2011, together, in each case, with accrued and unpaid interest to the
Redemption Date; provided, however, that interest installments on
Securities whose Stated Maturity is on or prior to such Redemption Date will be
payable to the Holders of such Securities, or one or more Predecessor
Securities, of record at the close of business on the relevant Record Dates
referred to on the face hereof, all as provided in the Indenture.

 

In the event of a redemption
of the Securities, the Company will not be required (a) to register the
transfer or exchange of Securities for a period of 15 days immediately
preceding the date notice is given identifying the serial numbers of the
Securities called for such redemption or (b) to register the transfer or
exchange of any Security, or portion thereof, called for redemption.

 

Notice to the Holders
will be given not more than 60 and not less than 30 days prior to the
Redemption Date as provided in the Indenture.

 

In any case where the due
date for the payment of the principal of, premium, if any, or interest, or
Liquidated Damages on any Security or the last day on which a Holder of a
Security has a right to convert his Security shall be, at any Place of Payment
or Place of Conversion as the

 

21

 

case may be, a day on which banking institutions at such Place of
Payment or Place of Conversion are authorized or obligated by law or executive
order to close, then payment of principal, premium, if any, or interest, or
Liquidated Damages, or delivery for conversion of such Security need not be
made on or by such date at such place but may be made on or by the next
succeeding day at such place which is not a day on which banking institutions
are authorized or obligated by law or executive order to close, with the same
force and effect as if made on the date for such payment or the date fixed for
redemption or repurchase, or by such last day for conversion, and no interest
shall accrue on the amount so payable for the period after such date.

 

Subject to and upon
compliance with the provisions of the Indenture, the Holder of this Security is
entitled, at his option, at any time following the original issue date of the
Securities and on or before the close of business on the date of Maturity, or
in case this Security or a portion hereof is called for redemption or the
Holder hereof has exercised his right to require the Company to repurchase this
Security or such portion hereof, then in respect of this Security until the
Business Day immediately preceding, but (unless the Company defaults in making
the payment due upon redemption or repurchase, as the case may be) not after,
the close of business on the Business Day immediately preceding the Redemption
Date or the Repurchase Date, as the case may be, to convert this Security (or
any portion of the principal amount hereof that is an integral multiple of
U.S.$1,000, provided
that the unconverted portion of such principal amount is U.S.$1,000
or any integral multiple of U.S.$1,000 in excess thereof) into fully paid and
nonassessable shares of Common Stock of the Company at an initial Conversion
Rate of 72.9129 shares of Common Stock for each U.S.$1,000 principal amount of
Securities (or at the current adjusted Conversion Rate if an adjustment has
been made as provided in the Indenture) by surrender of this Security, duly
endorsed or assigned to the Company or in blank and, in case such surrender
shall be made during the period from the close of business on any Regular
Record Date next preceding any Interest Payment Date to the opening of business
on such Interest Payment Date (except if this Security or portion thereof has
been called for redemption on a Redemption Date or is repurchasable on a
Repurchase Date occurring, in either case, during the period from the close of
business on any Regular Record Date immediately preceding any Interest Payment
Date to the close of business on the second Business Day following such
Interest Payment Date and, as a result, the right to convert this Security
would otherwise terminate in such period if not exercised), also accompanied by
payment in New York Clearing House or other funds acceptable to the Company of
an amount equal to the interest otherwise payable on such Interest Payment Date
on the principal amount of this Security then being converted, and also the
conversion notice hereon duly executed, to the Company at the Corporate Trust
Office of the Trustee, or at such other office or agency of the Company,
subject to any laws or regulations applicable thereto and subject to the right
of the Company to terminate the appointment of any Conversion Agent (as defined
below) as may be designated by it for such purpose in the Borough of Manhattan,
The City of New York, or at such other offices or agencies as the Company may
designate (each a “Conversion Agent”), provided, further,
that if this Security or portion hereof has been called for redemption on a
Redemption Date or is repurchasable on a Repurchase Date occurring, in either
case, during the period from the close of business on any Regular Record Date
immediately preceding any Interest Payment Date to the close of business on the
second Business Day following such Interest Payment Date, and as a result, the
right to convert this Security would otherwise terminate in such period if not
exercised and this Security is surrendered for conversion during such period,
then the Holder of this Security on such Regular Record Date will be entitled
to receive the interest accruing hereon

 

22

 

from the Interest Payment Date immediately preceding the date of such
conversion to such succeeding Interest Payment Date and the Holder of this
Security who converts this Security or a portion hereof during such period
shall not be required to pay such interest upon surrender of this Security for
conversion.  Subject to the provisions
of the preceding sentence and, in the case of a conversion after the close of
business on the Regular Record Date immediately preceding any Interest Payment
Date and on or before the close of business on such Interest Payment Date, to
the right of the Holder of this Security (or any Predecessor Security of record
as of such Regular Record Date) to receive the related installment of interest
to the extent and under the circumstances provided in the Indenture, no cash
payment or adjustment is to be made on conversion for interest accrued hereon
from the Interest Payment Date immediately preceding the day of conversion, or
for dividends on the Common Stock issued on conversion hereof.  The Company shall thereafter deliver to the
Holder the fixed number of shares of Common Stock (together with any cash
adjustment, as provided in the Indenture) into which this Security is
convertible and such delivery will be deemed to satisfy the Company’s
obligation to pay the principal amount of this Security. No fractions of shares
or scrip representing fractions of shares will be issued on conversion, but
instead of any fractional interest (calculated to the nearest 1/100th of a
share) the Company shall pay a cash adjustment as provided in the Indenture.
The Conversion Rate is subject to adjustment as provided in the Indenture. In
addition, the Indenture provides that in case of certain consolidations or
mergers to which the Company is a party (other than a consolidation or merger
that does not result in any reclassification, conversion, exchange or
cancellation of the Common Stock) or the conveyance, transfer, sale or lease of
all or substantially all of the property and assets of the Company, the
Indenture shall be amended, without the consent of any Holders of Securities,
so that this Security, if then Outstanding, will be convertible thereafter,
during the period this Security shall be convertible as specified above, only
into the kind and amount of securities, cash and other property receivable upon
such consolidation, merger, conveyance, transfer, sale or lease by a holder of
the number of shares of Common Stock of the Company into which this Security
could have been converted immediately prior to such consolidation, merger,
conveyance, transfer, sale or lease (assuming such holder of Common Stock is
not a Constituent Person or an Affiliate of a Constituent Person, failed to
exercise any rights of election and received per share the kind and amount
received per share by a plurality of Non-electing Shares).  No adjustment in the Conversion Rate will be
made until such adjustment would require an increase or decrease of at least
one percent of such rate, provided that any adjustment that would
otherwise be made will be carried forward and taken into account in the
computation of any subsequent adjustment. 
A Holder may convert all or part of this Security by delivering this Security
at the corporate trust office of the Trustee accompanied by a duly signed and
completed conversion notice, a copy of which may be obtained by the
Trustee.  [if this security is a global
security, then insert – DTC will affect the conversion upon notice from the
Holder of a beneficial interest in this Security in accordance with DTC’s rules
and procedures.]  The conversion date
will be the date on which the Security and the duly signed and completed
conversion notice are so delivered.

 

If this Security is a
Registrable Security (as defined in the Indenture), then the Holder of this
Security [if this security is a global security, then insert (including any
Person that has a beneficial interest in this Security)] and the Common Stock
of the Company issuable upon conversion hereof is entitled to the benefits of a
Registration Rights Agreement, dated as of May 3, 2004 (the “Registration
Rights Agreement”) between the Company and the Initial Purchasers.  Pursuant to the Registration Rights
Agreement, the Company has agreed for the benefit of the

 

23

 

Holders from time to time
of the Registrable Securities that it will, at its expense, (a) within 90 days
after the Issue Date file a shelf registration statement (the “Shelf
Registration Statement”) with the Commission with respect to resales of the
Registrable Securities, (b) use its best efforts to cause such Shelf
Registration Statement to be declared effective by the Commission no later than
210 days after the Issue Date of the Securities, provided, however,
that the Company may, upon written notice to all the Holders, postpone having
the Shelf Registration Statement declared effective for a reasonable period not
to exceed 90 days if the Company possesses material non-public information, the
disclosure of which would have a material adverse effect on the Company and its
subsidiaries taken as a whole, and (c) use its reasonable  best efforts to maintain such Shelf Registration
Statement continuously effective under the Securities Act until the earliest of
(i) the sale of all outstanding Registrable Securities registered under such
Shelf Registration; (ii) the expiration of the period referred to in Rule
144(k) of the Securities Act with respect to Registrable Securities held by
non-affiliates of the Company, (iii) all the Registrable Securities have ceased
to be outstanding (whether as a result of redemption, repurchase, cancellation,
conversion or otherwise); and (iv) two years after the effective date of such Shelf
Registration Statement (the “Effectiveness Period”).  The Company will be permitted to suspend the
use of the prospectus which is part of the Shelf Registration Statement during
certain periods of time as provided in the Registration Rights Agreement.

 

If (i) on or prior to the
90th day following the Issue Date, a Shelf Registration Statement has not been
filed with the Commission, or (ii) on or prior to the 210th day following the
Issue Date, such Shelf Registration Statement is not declared effective (each,
a “Registration Default”), additional interest (“Liquidated Damages”)
will accrue on this Restricted Security from and including the day following
such Registration Default to but excluding the day on which such Registration
Default has been cured. Liquidated Damages will be paid in cash semi-annually
in arrears, with the first semi-annual payment due on the first Interest
Payment Date, as applicable, in respect of the Restricted Securities following
the date on which such Liquidated Damages begin to accrue, and will accrue at a
rate per annum equal to one-quarter of one percent (0.25%) of the principal
amount of the Restricted Securities to and including the 90th day following
such Registration Default and at a rate per annum equal to one-half of one percent
(0.50%) thereof from and after the 91st day following such Registration
Default. Pursuant to the Registration Rights Agreement, in the event that the
Shelf Registration Statement ceases to be effective (or the Holders of
Registrable Securities are otherwise prevented or restricted by the Company
from effecting sales pursuant thereto) (an “Effective Failure”) during
the Effectiveness Period for more than 30 days, whether or not consecutive,
during any 90-day period or for more than 90 days, whether or not consecutive,
during any 12-month period, then the Liquidated Damages will accrue at a rate
per annum equal to an additional one-half of one percent (0.50%) of the
principal amount of the Restricted Securities from the 31st day of the
applicable 90-day period or the 91st day of the applicable 12-month period
until the earlier of (A) such time as the Effective Failure is cured or (B) the
Effectiveness Period expires.

 

Whenever in this Security
there is a reference, in any context, to the payment of the principal of,
premium, if any, or interest on, or in respect of, any Security, such mention
shall be deemed to include mention of the payment of Liquidated Damages payable
as described in the preceding paragraph to the extent that, in such context,
Liquidated Damages are, were or would be payable in respect of such Security
and express mention of the payment of Liquidated Damages (if applicable) in any
provisions of this Security shall not be construed as excluding

 

24

 

Liquidated Damages in those provisions of this Security where such
express mention is not made.

 

If this Security is a
Registrable Security and the Holder of this Security [if this security is a
global security, then insert (including any Person that has a beneficial
interest in this security)] elects to sell this Security pursuant to the Shelf
Registration Statement then, by its acceptance hereof, such Holder of this
Security agrees to be bound by the terms of the Registration Rights Agreement relating
to the Registrable Securities which are the subject of such election.

 

If a Change in Control
occurs, the Holder of this Security, at the Holder’s option, shall have the
right, in accordance with the provisions of the Indenture, to require the Company
to repurchase this Security (or any portion of the principal amount hereof that
is at least $1,000 or an integral multiple of $1,000 in excess thereof, provided
that the portion of the principal amount of this Security to be Outstanding
after such repurchase is at least equal to U.S.$1,000) at a Repurchase Price
equal to 100% of the principal amount thereof plus interest accrued but unpaid
to but excluding the Repurchase Date. At the option of the Company, the
Repurchase Price may be paid in cash or, subject to the conditions provided in
the Indenture, by delivery of shares of Common Stock having a fair market value
equal to the Repurchase Price (less any cash payments) or a combination
thereof. For purposes of this paragraph, the fair market value of shares of
Common Stock shall be determined by the Company and shall be equal to 95% of
the average of the Closing Price Per Share for the five consecutive Trading
Days ending on the third Trading Day prior to the Repurchase Date.

 

Whenever in this Security
there is a reference, in any context, to the principal of any Security as of
any time, such reference shall be deemed to include reference to the Repurchase
Price payable in respect of such Security to the extent that such Repurchase
Price is, was or would be so payable at such time, and express mention of the
Repurchase Price in any provision of this Security shall not be construed as
excluding the Repurchase Price so payable in those provisions of this Security
when such express mention is not made.

 

[The following paragraph shall appear
in each Global Security:

 

In the event of a deposit
or withdrawal of an interest in this Security, including an exchange, transfer,
redemption, repurchase or conversion of this Security in part only, the
Trustee, as custodian of the Depositary, shall make an adjustment on its
records to reflect such deposit or withdrawal in accordance with the Applicable
Procedures.]

 

[The following paragraph shall appear
in each Security that is not a Global Security:

 

In the event of redemption,
repurchase or conversion of this Security in part only, a new Security or
Securities for the unredeemed, unrepurchased or unconverted portion hereof will
be issued in the name of the Holder hereof.]

 

[The following paragraph shall appear
in each Global Security:

 

In the event of a
withdrawal of an interest in this Security resulting from any redemption,
repurchase or conversion of this Security in part only, the Trustee, as
custodian of the

 

25

 

Depositary, shall make an adjustment on its records to reflect such
withdrawal in accordance with the Applicable Procedures.]

 

If an Event of Default
shall occur and be continuing, the principal of all the Securities, together
with accrued interest to the date of declaration, may be declared due and
payable in the manner and with the effect provided in the Indenture. Upon
payment (i) of the amount of principal so declared due and payable, together
with accrued interest to the date of declaration, and (ii) of interest on any
overdue principal and, to the extent permitted by applicable law, overdue
interest, all of the Company’s obligations in respect of the payment of the
principal of and interest on the Securities shall terminate.

 

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 either (a) the written consent of the Holders of not less than
a majority in principal amount of the Securities at the time Outstanding, or
(b) by the adoption of a resolution, at a meeting of Holders of the Outstanding
Securities at which a quorum is present, by the Holders of at least a majority
in aggregate principal amount of the Outstanding Securities represented and
entitled to vote at such meeting. The Indenture also contains provisions
permitting the Holders of specified percentages in aggregate 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 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.

 

As provided in and
subject to the provisions of the Indenture, the Holder of this Security shall
not have the right to institute any proceeding with respect to the Indenture or
for the appointment of a receiver or trustee or for any other remedy
thereunder, unless such Holder shall have previously given the Trustee written
notice of a continuing Event of Default, the Holders of not less than 25% in
aggregate principal amount of the Outstanding Securities shall have made
written request to the Trustee to institute proceedings in respect of such
Event of Default as Trustee and offered the Trustee reasonable indemnity and
the Trustee shall not have received from the Holders of a majority in principal
amount of the Securities Outstanding a direction inconsistent with such
request, and shall have failed to institute any such proceeding, for 60 days
after receipt of such notice, request and offer of indemnity. The foregoing
shall not apply to any suit instituted by the Holder of this Security for the
enforcement of any payment of principal hereof, premium, if any, or interest
(including Liquidated Damages) hereon on or after the respective due dates
expressed herein or for the enforcement of the right to convert this Security
as provided in the Indenture.

 

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, premium, if any, and interest (including Liquidated
Damages) 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.

 

26

 

As provided in the
Indenture and subject to certain limitations therein set forth, the transfer of
this Security is registrable on the Security Register upon surrender of this
Security for registration of transfer at the Corporate Trust Office of the
Trustee or at such other office or agency of the Company as may be designated
by it for such purpose in the Borough of Manhattan, The City of New York (which
shall initially be an office or agency of the Trustee), or at such other
offices or agencies as the Company may designate, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed by, the Holder thereof or his
attorney duly authorized in writing, and thereupon one or more new Securities,
of authorized denominations and for the same aggregate principal amount, will
be issued to the designated transferee or transferees by the Registrar. No
service charge shall be made for any such registration of transfer or exchange,
but the Company may require payment of a sum sufficient to recover any tax or
other governmental charge payable in connection therewith.

 

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

 

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

 

No recourse for the
payment of the principal of or premium, if any, or interest (including
Liquidated Damages, if any) on any Security and no recourse under or upon any
obligation, covenant or agreement of the Company in this Indenture or in any
supplemental indenture or in any Security, or because of the creation of any
indebtedness represented thereby, shall be had against any past, present or
future incorporator, stockholder, employee, agent, officer, or director or
subsidiary, as such, of the Company or of any 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 all
such liability is hereby waived and released as a condition of, and as a
consideration for, the execution of the Indenture and the issue of the
Securities.  Each and every Holder of
the Securities, by receiving and holding the same, agrees to the provisions
of  Section 15.1 of the Indenture
and waives and releases any and all such recourse, claim and liability.

 

THE INDENTURE AND THIS SECURITY SHALL
BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK, UNITED STATES OF AMERICA.

 

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

 

27

 

ABBREVIATIONS

 

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

 

	
  TEN COM

  	
   

  	
  as tenant in common

  	
   

  	
  UNIF GIFT MIN ACT

  	
  Custodian

  
	
  TEN ENT

  	
   

  	
  as tenants by the
  entireties (Cust)

  	
   

  	
   

  	
  (Cust)

  	
  (Minor)

  
	
  JT TEN

  	
   

  	
  as joint tenants with
  right of survivorship and not as tenants in common

  	
   

  	
   

  	
  under Uniform Gifts to
  Minors Act

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  (State)

  

 

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

 

28

 

ELECTION OF HOLDER
TO REQUIRE REPURCHASE

 

(1)                                  Pursuant
to Section 13.1 of the Indenture, the undersigned hereby elects to have
this Security repurchased by the Company.

 

(2)                                  The
undersigned hereby directs the Trustee or the Company to pay it or
                            
an amount in cash or, at the Company’s election, Common Stock valued as set
forth in the Indenture, equal to 100% of the principal amount to be repurchased
(less any cash payments) (as set forth below), or a combination of cash and
Common Stock, plus interest accrued to, but excluding, the Repurchase Date, as
provided in the Indenture.

 

	
  Dated:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature(s)

  	
   

  
	
   

  	
   

  
	
  Signature(s) must be
  guaranteed by an Eligible

  	
   

  
	
  Guarantor Institution
  with membership in an

  	
   

  
	
  approved signature
  guarantee program pursuant

  	
   

  
	
  to Rule 17Ad-15 under
  the Securities Exchange

  	
   

  
	
  Act of 1934.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature Guaranteed

  	
   

  
	
   

  	
   

  
	
  Principal amount to be
  repurchased (at least

  	
   

  
	
  U.S. $1,000 or an
  integral multiple of $1,000

  	
   

  
	
  in excess thereof):

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Remaining principal
  amount following such

  	
   

  
	
  repurchase (not less
  than U.S. $1,000):

  	
   

  
					

 

 

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

 

29

 

SECTION 2.3                                                  Form
of Certificate of Authentication.

 

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

 

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

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Wilmington Trust
  Company,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

SECTION 2.4                                                  Form
of Conversion Notice.

 

CONVERSION NOTICE

 

The undersigned Holder of
this Security hereby irrevocably exercises the option to convert this Security,
or any portion of the principal amount hereof (which is U.S. $1,000 or an
integral multiple of U.S. $1,000 in excess thereof, provided that the
unconverted portion of such principal amount is U.S. $1,000 or any integral
multiple of U.S. $1,000 in excess thereof) below designated, into shares of
Common Stock in accordance with the terms of the Indenture referred to in this
Security, and directs that such shares, together with a check in payment for
any fractional share and any Securities representing any unconverted principal
amount hereof, be delivered to and be registered in the name of the undersigned
unless a different name has been indicated below. If shares of Common Stock or
Securities are to be registered in the name of a Person other than the
undersigned, (a) the undersigned will pay all transfer taxes payable with
respect thereto and (b) signature(s) must be guaranteed by an Eligible
Guarantor Institution with membership in an approved signature guarantee
program pursuant to Rule 17Ad-15 under the Securities Exchange Act of 1934. Any
amount required to be paid by the undersigned on account of interest
accompanies this Security.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature(s)

  

 

If shares or Securities
are to be registered in the

name of a Person other than the Holder, please

print such Person’s name and address:

 

	
   

  	
   

  
	
  (Name)

  

 

30

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Address)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Social Security or other Identification

  	
   

  	
   

  
	
  Number, if any

  	
   

  	
   

  

 

Signature(s) must be
guaranteed by an

Eligible Guarantor
Institution with

membership in an approved
signature

guarantee program
pursuant to Rule 17Ad –

15 under the Securities
Exchange Act of

1934.

 

	
   

  	
   

  	
   

  
	
  [Signature Guaranteed]

  	
   

  	
   

  

 

If only a portion of the
Securities is to be converted, please indicate:

 

1.                                       Principal
amount to be converted: U.S. $
                      

 

2.                                       Principal
amount and denomination of Securities

representing unconverted principal amount to be issued:

 

Amount: U.S.
$                                                                                                                   Denominations:
U.S.
$                        

 

(U.S.$1,000 or any
integral multiple of U.S.$1,000 in excess thereof, provided that the
unconverted portion of such principal amount is U.S. $1,000 or any integral
multiple of U.S. $1,000 in excess thereof)

 

31

 

SECTION 2.5                                                  Form
of Assignment.

 

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

 

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature(s)

  	
   

  

 

 

	
   

  	
  Signature(s) must be
  guaranteed by an

  Eligible Guarantor Institution with

  membership in an approved signature

  guarantee program pursuant to Rule 17Ad - 15

  under the Securities Exchange Act of 1934.

  

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature Guaranteed

  

 

32

 

ARTICLE III

 

THE SECURITIES

 

SECTION 3.1                                                  Title
and Terms.

 

The aggregate principal
amount of Securities which may be authenticated and delivered under this
Indenture is limited to U.S.$150,000,000, as such amount may be increased, but
not by an amount in excess of $50,000,000, solely as a result of the purchase
of additional Securities (the “Additional Securities”) pursuant to the option
granted by the Company in the Purchase Agreement to the several Initial
Purchasers (the “Initial Purchasers’ Option”), except for Securities
authenticated and delivered pursuant to Section 3.4, 3.5, 3.6, 8.5, 12.2
or 13.3(5) in exchange for, or in lieu of, other Securities pursuant to
Section 3.4, 3.5, 3.6, 8.5, 10.8, 12.2 or 13.3(5) previously authenticated
and delivered under this Indenture.

 

The Securities shall be
known and designated as the “2.25% Convertible Senior Notes due May 15, 2011”
of the Company.  Their Stated Maturity
shall be May 15, 2011 and they shall bear interest on their principal amount
from May 3, 2004, payable semi-annually in arrears on May 15 and
November 15 in each year, commencing November 15, 2004, at the rate
of 2.25% per annum until the principal thereof is due and at the rate of 2.25%
per annum on any overdue principal and, to the extent permitted by law, on any
overdue interest; provided, however, that payments shall only be made
on a Business Day as provided in Section 1.12.

 

Upon receipt by the
Trustee of an Officers’ Certificate stating that the Initial Purchasers have
elected to purchase from the Company a specified aggregate principal amount of
Additional Securities not to exceed a total of $50,000,000 all such elections
in accordance with this paragraph pursuant to the Purchase Agreement, the
Trustee shall authenticate and make available for delivery such specified
aggregate principal amount of such Additional Securities to or upon a Company
Request, and such specified aggregate principal amount of such Additional
Securities shall be considered part of the original aggregate principal amount
of the Securities.

 

The principal of,
premium, if any, and interest on the Securities shall be payable as provided in
the form of Security set forth in Section 2.2, and the Repurchase Price,
whether payable in cash or in shares of Common Stock or a combination thereof,
shall be payable at such places as are identified in the Company Notice given
pursuant to Section 13.3 (any city in which any Paying Agent is located
being herein called a “Place of Payment”).

 

The Registrable
Securities are entitled to the benefits of a Registration Rights Agreement as
provided by Section 10.11 and in the form of Security set forth in
Section 2.2. The Securities are entitled to the payment of Liquidated
Damages as provided by Section 10.11.

 

The Securities shall be
redeemable at the option of the Company as provided in Article XI and
shall be issued in the form of Security set forth in Section 2.2.

 

33

 

The Securities shall be
convertible as provided in Article XII (any city in which any Conversion
Agent is located being herein called a “Place of Conversion”).

 

The Securities shall be
subject to repurchase by the Company at the option of the Holders as provided
in Article XIII.

 

SECTION 3.2                                                  Denominations.

 

The Securities shall be
issuable only in registered form, without coupons, in denominations of U.S.
$1,000 and integral multiples of U.S. $1,000 in excess thereof.

 

SECTION 3.3                                                  Execution,
Authentication, Delivery and Dating.

 

The Securities shall be
executed on behalf of the Company by its Chairman of the Board, its Vice
Chairman of the Board, its Chief Executive Officer, its President, its Chief
Financial Officer or one of its Vice Presidents, under a facsimile of its
corporate seal reproduced thereon attested by its Secretary or one of its
Assistant Secretaries.  Any such
signature may be manual or facsimile.

 

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

 

At any time and from time
to time after the execution and delivery of this Indenture, the Company may
deliver Securities executed by the Company to the Trustee or to its order for
authentication, together with a Company Order for the authentication and
delivery of such Securities, and the Trustee in accordance with such Company
Order shall authenticate and make available for delivery such Securities as in
this Indenture provided and not otherwise.

 

Each Security shall be dated
the date of its authentication.

 

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

 

SECTION 3.4                                                  Global
Securities; Non-Global Securities; Book-entry Provisions.

 

(1)                                  Global
Securities

 

(i)                                     Each
Global Security authenticated under this Indenture shall be registered in the
name of the Depositary designated by the Company for such Global Security or a
nominee thereof and delivered to such Depositary or a nominee thereof or
custodian therefor, and each such Global Security shall constitute a single
Security for all purposes of this Indenture. 
The Company hereby appoints DTC as the Depositary.

 

34

 

(ii)                                  Except
for exchanges of Global Securities for definitive, Non-Global Securities at the
sole discretion of the Company, no Global Security may be exchanged in whole or
in part for Securities registered, and no transfer of a Global Security in
whole or in part may be registered, in the name of any Person other than the
Depositary for such Global Security or a nominee thereof unless (A) such
Depositary (i) has notified the Company that it is unwilling, unable or no
longer qualified to continue as Depositary for such Global Security or (ii) has
ceased to be a clearing agency registered as such under the Exchange Act or
announces an intention permanently to cease business or does in fact do so or
(B) there shall have occurred and be continuing an Event of Default with
respect to such Global Security.  In
such event, if a successor Depositary for such Global Security is not appointed
by the Company within 90 days after the Company receives such notice or becomes
aware of such ineligibility, the Company will execute, and the Trustee, upon
receipt of an Officers’ Certificate directing the authentication and delivery
of Securities, will authenticate and deliver, Securities, in any authorized
denominations in an aggregate principal amount equal to the principal amount of
such Global Security in exchange for such Global Security.

 

(iii)                               If
any Global Security is to be exchanged for other Securities or canceled in
whole, it shall be surrendered by or on behalf of the Depositary or its nominee
to the Trustee, as Security Registrar, for exchange or cancellation, as
provided in this Article III. If any Global Security is to be exchanged
for other Securities or canceled in part, or if another Security is to be
exchanged in whole or in part for a beneficial interest in any Global Security,
in each case, as provided in Section 3.5 hereof, then either (A) such
Global Security shall be so surrendered for exchange or cancellation, as
provided in this Article III, or (B) the principal amount thereof shall be
reduced or increased by an amount equal to the portion thereof to be so
exchanged or canceled, or equal to the principal amount of such other Security
to be so exchanged for a beneficial interest therein, as the case may be, by
means of an appropriate adjustment made on the records of the Trustee, as
Security Registrar, whereupon the Trustee, in accordance with the Applicable
Procedures, shall instruct the Depositary or its authorized representative to
make a corresponding adjustment to its records. Upon any such surrender or
adjustment of a Global Security, the Trustee shall, subject to
Section 3.5(3) hereof and as otherwise provided in this Article III,
authenticate and deliver any Securities issuable in exchange for such Global
Security (or any portion thereof) to or upon the order of, and registered in
such names as may be directed by, the Depositary or its authorized
representative. Upon the request of the Trustee in connection with the
occurrence of any of the events specified in the preceding paragraph, the
Company shall promptly make available to the Trustee a reasonable supply of
Securities that are not in the form of Global Securities. The Trustee shall be
entitled to rely upon any order, direction or request of the Depositary or its
authorized representative which is given or made pursuant to this
Article III if such order, direction or request is given or made in
accordance with the Applicable Procedures.

 

(iv)                              Every
Security authenticated and delivered upon registration of transfer of, or in
exchange for or in lieu of, a Global Security or any portion thereof, whether
pursuant to this Article III or otherwise, shall be authenticated and
delivered in the form of, and shall be, a registered Global Security, unless
such Security is registered in the name of a Person other than the Depositary
for such Global Security or a nominee thereof, in which case such Security
shall be authenticated and delivered in definitive, fully registered form,
without interest coupons.

 

35

 

(v)                                 The
Depositary or its nominee, as registered owner of a Global Security, shall be
the Holder of such Global Security for all purposes under the Indenture and the
Securities, and owners of beneficial interests in a Global Security shall hold
such interests pursuant to the Applicable Procedures. Accordingly, any such
owner’s beneficial interest in a Global Security will be shown only on, and the
transfer of such interest shall be effected only through, records maintained by
the Depositary or its nominee or its Agent Members and such owners of
beneficial interests in a Global Security will not be considered the owners or
holders thereof.

 

(vi)                              If
any Global Security is to be cancelled in part as a result of the redemption,
repurchase or conversion of such security in part only, then the principal
amount thereof shall be reduced by an amount equal to the portion thereof to be
so cancelled by means of an appropriate adjustment made on the records of the
Trustee, as Security Registrar, whereupon the Trustee, in accordance with the
Applicable Procedures, shall instruct the Depositary or its authorized
representative to make a corresponding adjustment to its records.  The Trustee shall be entitled to rely upon
any order, direction or request of the Depositary or its authorized
representative which is given or made pursuant to this Article III if such
order, direction or request is given or made in accordance with the Applicable
Procedures.

 

(2)                                  Temporary
Securities

 

Pending the preparation
of definitive Securities, the Company may execute, and upon Company Order the
Trustee shall authenticate and make available for delivery, temporary
Securities which are printed, lithographed, typewritten, mimeographed or
otherwise produced, in any authorized denomination, substantially of the tenor
of the definitive Securities in lieu of which they are issued and with such
appropriate insertions, omissions, substitutions and other variations as the
officers executing such Securities may determine, as evidenced by their
execution of such Securities.

 

If temporary Securities
are issued, the Company will cause definitive Securities to be prepared without
unreasonable delay.  After the
preparation of definitive Securities, the temporary Securities shall be
exchangeable for definitive Securities upon surrender of the temporary
Securities at any office or agency of the Company designated pursuant to
Section 10.2, without charge to the Holder.  Upon surrender for cancellation of any one or more temporary Securities
the Company shall execute and the Trustee shall authenticate and make available
for delivery in exchange therefor a like principal amount of definitive
Securities of authorized denominations. 
Until so exchanged the temporary Securities shall in all respects be
entitled to the same benefits under this Indenture as definitive Securities.

 

(3)                                  Non-Global
Securities

 

Securities issued upon
the events described in Section 3.4(l)(ii) hereof shall be in definitive,
fully registered form, without interest coupons, and shall bear the Restricted
Securities Legend if and as required by this Indenture.

 

36

 

SECTION 3.5                                                  Registration;
Registration of Transfer and Exchange; Restrictions on Transfer.

 

(1)                                  The
Company shall cause to be kept at the Corporate Trust Office of the Trustee a
register (the register maintained in such office and in any other office or
agency of the Company designated pursuant to Section 10.2 being herein
sometimes collectively referred to as the “Security Register”) in which,
subject to such reasonable regulations as it may prescribe and provide to the
Trustee in writing, the Company shall provide for the registration of
Securities and of transfers of Securities. The Trustee is hereby appointed “Security
Registrar” for the purpose of registering Securities and transfers and
exchanges of Securities as herein provided.

 

Upon surrender for
registration of transfer of any Security at an office or agency of the Company
designated pursuant to Section 10.2 for such purpose, the Company shall
execute, and the Trustee shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Securities of any
authorized denominations and of a like aggregate principal amount and bearing
such restrictive legends as may be required by this Indenture.

 

At the option of the
Holder, and subject to the other provisions of this Section 3.5,
Securities may be exchanged for other Securities of any authorized denomination
and of a like aggregate principal amount, upon surrender of the Securities to
be exchanged at any such office or agency. Whenever any Securities are so
surrendered for exchange, and subject to the other provisions of this
Section 3.5, the Company shall execute, and the Trustee shall authenticate
and deliver, the Securities that the Holder making the exchange is entitled to
receive. Every Security presented or surrendered for registration of transfer
or for exchange shall (if so required by the Company or the Security Registrar)
be duly endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to the Company, the Trustee and the Security Registrar duly
executed, by the Holder thereof or his attorney duly authorized in writing.

 

All Securities issued
upon any registration of transfer or exchange of Securities shall be the valid
obligations of the Company, evidencing the same debt, and subject to the other
provisions of this Section 3.5, entitled to the same benefits under this
Indenture as the Securities surrendered upon such registration of transfer or
exchange.

 

No service charge shall
be made to a Holder for any registration of transfer or exchange of Securities
except as provided in Section 3.6, but the Company may require payment of
a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 3.4, 8.5, 12.2 or
13.3 (other than where the shares of Common Stock are to be issued or delivered
in a name other than that of the Holder of the Security) not involving any
transfer and other than any stamp and other duties, if any, which may be
imposed in connection with any such transfer or exchange by the United States
or any political subdivision thereof or therein, which shall be paid by the
Company.

 

In the event of a
redemption of the Securities, neither the Company nor the Securities Registrar
will be required (a) to register the transfer of or exchange Securities for a
period of 15 days immediately preceding the date notice is given identifying
the serial numbers of the

 

37

 

Securities called for such redemption or (b) to register the transfer
of or exchange any Security, or portion thereof, called for redemption.

 

(2)                                  Certain
Transfers and Exchanges. Notwithstanding any other provision of this
Indenture or the Securities, transfers and exchanges of Securities and
beneficial interests in a Global Security of the kinds specified in this
Section 3.5(2) shall be made only in accordance with this
Section 3.5(2).

 

(i)                                     Restricted
Global Security to Restricted Non-Global Security.  In the event that Non-Global Securities are
to be issued pursuant to Section 3.4(1)(ii) in connection with any
transfer of Securities, such transfer may be effected only in accordance with
the provisions of this Clause (2)(ii) and subject to the Applicable
Procedures.  Upon receipt by the
Trustee, as Security Registrar, of (A) a Company Order from the Company
directing the Trustee, as Security Registrar, to (x) authenticate and deliver
one or more Securities of the same aggregate principal amount as the beneficial
interest in the Restricted Global Security to be transferred, such instructions
to contain the name or names of the designated transferee or transferees, the
authorized denomination or denominations of the Securities to be so issued and
appropriate delivery instructions and (y) decrease the beneficial interest of a
specified Agent Member’s account in a Restricted Global Security by a specified
principal amount not greater than the principal amount of such Restricted
Global Security, and (B) such other certifications, legal opinions or other
information as the Company or the Trustee may reasonably require to confirm
that such transfer is being made pursuant to an exemption from, or in a
transaction not subject to, the registration requirements of the Securities
Act, then the Trustee, as Security Registrar, shall decrease the principal
amount of the Restricted Global Security by the specified amount and
authenticate and deliver Securities in accordance with such instructions from
the Company as provided in Section 3.4(1)(iii).

 

(ii)                                  Restricted
Non-Global Security to Restricted Global Security.  If the Holder of a Restricted Security
(other than a Global Security) wishes at any time to transfer all or any
portion of such Restricted Security to a Person who wishes to take delivery
thereof in the form of a beneficial interest in the Restricted Global Security,
such transfer may be effected only in accordance with the provisions of this
Clause 2(i) and subject to the Applicable Procedures. Upon receipt by the
Trustee, as Security Registrar, of such Restricted Security as provided in
Section 3.5(1) and instructions from the Company directing that a
beneficial interest in the Restricted Global Security in a specified principal
amount not greater than the principal amount of such Security be credited to a
specified Agent Member’s account, then the Trustee, as Security Registrar,
shall cancel such Restricted Security (and issue a new Restricted Security in
respect of any untransferred portion thereof) as provided in
Section 3.5(1) and increase the principal amount of the Restricted Global
Security by the specified principal amount as provided in
Section 3.4(1)(iii).

 

(iii)                               Exchanges
Between Global Security and Non-Global Security.  A beneficial interest in a Global Security may be exchanged for a
Security that is not a Global Security only as provided in Section 3.4 or
only if such exchange occurs in connection with a transfer effected in
accordance with Clause 2(i) above, provided that, if such interest is a
beneficial interest in the Restricted Global Security, then such interest shall
be exchanged for a Restricted Security (subject in each case to
Section 3.5(3)). A Security that is not a Global

 

38

 

Security may be exchanged for a beneficial interest in a Global
Security only if such exchange occurs in connection with a transfer effected in
accordance with Clause (2)(ii) above.

 

(3)                                  Securities
Act Legends. All Securities issued pursuant to this Indenture, and all
Successor Securities, shall bear the Restricted Securities Legend and shall be
subject to the restrictions on transfer specified therein, subject to the
following:

 

(i)                                     subject
to the following Clauses of this Section 3.5(3), a Security or any portion
thereof which is exchanged, upon transfer or otherwise, for a Global Security
or any portion thereof shall bear the Restricted Securities Legend borne by
such Global Security for which the Security was exchanged;

 

(ii)                                  subject
to the following Clauses of this Section 3.5(3), a new Security that is
not a Global Security and is issued in exchange for another Security (including
a Global Security) or any portion thereof, upon transfer or otherwise, shall
bear the Restricted Securities Legend borne by the Security for which the new
Security was exchanged;

 

(iii)                               any
Securities that are sold or otherwise disposed of pursuant to an effective
registration statement under the Securities Act (including the Shelf
Registration Statement), together with their Successor Securities shall not
bear a Restricted Securities Legend; the Company shall inform the Trustee in writing
of the effective date of any such registration statement registering the
Securities under the Securities Act and shall notify the Trustee, in writing,
at any time when prospectuses must be delivered with respect to Securities to
be sold pursuant to such registration statement. The Trustee shall not be
liable for any action taken or omitted to be taken by it in good faith in
accordance with the aforementioned registration statement;

 

(iv)                              at
any time after the Securities may be freely transferred without registration
under the Securities Act or without being subject to transfer restrictions
pursuant to the Securities Act, a new Security that does not bear a Restricted
Securities Legend may be issued in exchange for or in lieu of a Security (other
than a Global Security) or any portion thereof that bears such a legend if the
Trustee has received an Unrestricted Securities Certificate, satisfactory to
the Trustee and duly executed by the Holder of such Security bearing a
Restricted Securities Legend or his attorney duly authorized in writing, and
after such date and receipt of such certificate, the Trustee shall authenticate
and deliver such new Security in exchange for or in lieu of such other Security
as provided in this Article III;

 

(v)                                 a
new Security that does not bear a Restricted Securities Legend may be issued in
exchange for or in lieu of a Security or any portion thereof that bears such a
legend if, in the Company’s judgment, placing such a legend upon such new
Security is not necessary to ensure compliance with the registration
requirements of the Securities Act, and the Trustee, at the written direction
of the Company, shall authenticate and deliver such a new Security as provided
in this Article III; and

 

(vi)                              notwithstanding
the foregoing provisions of this Section 3.5(3), a Successor Security of a
Security that does not bear a Restricted Securities Legend shall not bear such
legend unless the Company has reasonable cause to believe that such Successor
Security is

 

39

 

a “restricted security” within the meaning of Rule 144, in which case
the Trustee, at the written direction of the Company, shall authenticate and
deliver a new Security bearing a Restricted Securities Legend in exchange for
such Successor Security as provided in this Article III.

 

(4)                                  Any
stock certificate representing shares of Common Stock issued upon conversion of
the Securities shall bear the Restricted Securities Legend borne by such
Securities, to the extent required by this Indenture, unless such shares of
Common Stock have been sold pursuant to a registration statement that has been
declared effective under the Securities Act (and that continues to be effective
at the time of such transfer) or sold pursuant to Rule 144 of the Securities
Act, or unless otherwise agreed by the Company in writing with written notice
thereof to the transfer agent for the Common Stock.  With respect to the transfer of shares of Common Stock issued
upon conversion of the Securities that are restricted hereunder, any deliveries
of certificates, legal opinions or other instruments that would be required to
be made to the Security Registrar in the case of a transfer of Securities, as
described above, shall instead be made to the transfer agent for the Common
Stock.

 

(5)                                  Neither
the Trustee, the Paying Agent nor any of their agents shall (i) have any duty
to monitor compliance with or with respect to any Federal or state or other
securities or tax laws or (ii) have any duty to obtain documentation on any transfers
or exchanges other than as specifically required hereunder.

 

SECTION 3.6                                                  Mutilated,
Destroyed, Lost or Stolen Securities.

 

If any mutilated Security
is surrendered to the Trustee, the Company shall execute and the Trustee shall
authenticate and deliver in exchange therefor a new Security of like tenor and
principal amount and bearing a number not contemporaneously outstanding.

 

If there be delivered to
the Company and to the Trustee:

 

(1)                                  evidence
to their satisfaction of the destruction, loss or theft of any Security, and

 

(2)                                  such
security or indemnity as may be satisfactory to the Company and the Trustee to
save each of them and any agent of either of them harmless, then, in the
absence of actual notice to the Company or the Trustee that such Security has
been acquired by a bona fide purchaser, the Company shall execute and the
Trustee shall authenticate and deliver, in lieu of any such destroyed, lost or
stolen Security, a new Security of like tenor and principal amount and bearing
a number not contemporaneously outstanding.

 

In case any such
mutilated, destroyed, lost or stolen Security has become or is about to become
due and payable, the Company in its discretion, but subject to any conversion
rights, may, instead of issuing a new Security, pay such Security, upon
satisfaction of the conditions set forth in the preceding paragraph.

 

Upon the issuance of any
new Security under this Section 3.6, 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 (other than any stamp and other duties, if any,
which may be imposed in connection therewith by the United States or any
political subdivision thereof or therein,

 

40

 

which shall be paid by the Company) and any other expenses (including
the fees and expenses of the Trustee) connected therewith.

 

Every new Security issued
pursuant to this Section 3.6 in lieu of any mutilated, destroyed, lost or
stolen Security shall constitute an original additional contractual obligation
of the Company, whether or not the mutilated, destroyed, lost or stolen
Security shall be at any time enforceable by anyone, and such new Security
shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Securities duly issued hereunder.

 

The provisions of this
Section 3.6 are exclusive and shall preclude (to the extent lawful) all
other rights and remedies of any Holder with respect to the replacement or payment
of mutilated, destroyed, lost or stolen Securities.

 

SECTION 3.7                                                  Payment
of Interest; Interest Rights Preserved.

 

Subject to the last
paragraph of this Section, interest or Liquidated Damages 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 (or one or
more Predecessor Securities) is registered at the close of business on the
Regular Record Date for such interest.

 

Any interest or Liquidated
Damages on any Security that is payable, but is not punctually paid or duly
provided for, on any Interest Payment Date (herein called “Defaulted
Interest”) shall forthwith cease to be payable to the Holder on the
relevant Regular Record Date by virtue of having been such Holder, and such
Defaulted Interest may be paid by the Company, at its election in each case, as
provided in Clause (1) or (2) below:

 

(1)                                  The
Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the 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
Security, the date of the proposed payment and the Special Record Date, 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. The Special Record Date for the payment of
such Defaulted Interest shall be not more than 15 days and not less than 10
days prior to the date of the proposed payment and not less than 20 days after
the receipt by the Trustee of the notice of the proposed payment. The Trustee,
in the name and at the expense of the Company, shall cause notice of the
proposed payment of such Defaulted Interest and the Special Record Date
therefor to be mailed, first-class postage prepaid, to each Holder at such
Holder’s address as it appears in the Security Register, not less than 10 days
prior to such Special Record Date. Notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor having been so mailed,
such Defaulted Interest shall be paid to the Persons in whose names the
Securities (or their respective Predecessor Securities) are registered at the
close of business on such Special Record Date and shall no longer be payable
pursuant to the following Clause (2).

 

41

 

(2)                                  The
Company may make payment of any Defaulted Interest in any other lawful manner
not inconsistent with the requirements of any securities exchange on which the
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.

 

Subject to the foregoing
and following provisions of this Section and Section 3.5, each
Security delivered under this Indenture upon registration of transfer of or in
exchange for or in lieu of any other Security shall carry the rights to
interest accrued and unpaid, and to accrue, which were carried by such other
Security.

 

Interest on any Security
that is converted in accordance with Section 12.2 during a Record Date
Period shall be payable in accordance with the provisions of Section 12.2.

 

SECTION 3.8                                                  Persons
Deemed Owners.

 

Prior to due presentment
of a Security for registration of transfer, the Company, the Trustee, any
Paying Agent and any agent of the Company, the Trustee or any Paying Agent will
treat the Person in whose name such Security is registered as the owner of such
Security for the purpose of receiving payment of principal of, premium, if any,
and (subject to Section 3.7) interest on such Security and for all other
purposes whatsoever, whether or not such Security be overdue, and neither the
Company, the Trustee, any Paying Agent nor any agent of the Company, the
Trustee or any Paying Agent shall be affected by notice to the contrary.

 

SECTION 3.9                                                  Cancellation.

 

All Securities
surrendered for payment, redemption, repurchase, registration of transfer or
exchange or conversion shall, if surrendered to any Person other than the
Trustee, be delivered to the Trustee. All Securities so delivered to the
Trustee shall be canceled promptly by the Trustee. No Securities shall be
authenticated in lieu of or in exchange for any Securities canceled as provided
in this Section 3.9. The Trustee shall destroy all canceled Securities in
accordance with applicable law and its customary practices in effect from time
to time and shall deliver a certificate of such destruction to the Company.

 

SECTION 3.10                                            Computation
of Interest.

 

Interest on the
Securities (including any Liquidated Damages) shall be computed on the basis of
a 360-day year of twelve 30-day months.

 

SECTION 3.11                                            CUSIP
Numbers.

 

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

 

42

 

defect in or omission of such CUSIP numbers.  The Company shall promptly notify the Trustee in writing of any
change in any such CUSIP number.

 

ARTICLE IV

 

SATISFACTION AND
DISCHARGE

 

SECTION 4.1                                                  Satisfaction
and Discharge of Indenture.

 

This Indenture shall upon
Company Request cease to be of further effect (except as to any surviving
rights of conversion, or registration of transfer or exchange, or replacement
of Securities herein expressly provided for and any right to receive Liquidated
Damages as provided in the Registration Rights Agreement and in the form of
Security set forth in Section 2.2 and the Company’s obligations to the
Trustee pursuant to Section 6.7), and the Trustee, at the expense of the
Company, shall execute proper instruments in form and substance satisfactory to
the Trustee acknowledging satisfaction and discharge of this Indenture, when

 

(1)                                  Either

 

(i)  all Securities theretofore authenticated and
delivered (other than (A) Securities which have been destroyed, lost or stolen
and that have been replaced or paid as provided in Section 3.6 and (B)
Securities for whose payment money has theretofore been deposited in trust or
segregated and held in trust by the Company and thereafter repaid to the
Company or discharged from such trust, as provided in Section 10.3) have
been delivered to the Trustee for cancellation; or

 

(ii) all such Securities
not theretofore delivered to the Trustee or its agent for cancellation (other
than Securities referred to in clauses (A) and (B) of clause (1)(i) above)

 

(a)                                  have
become due and payable, or

 

(b)                                 will
have become due and payable at their Stated Maturity within one year, or

 

(c)                                  are
to be called for redemption within one year under arrangements satisfactory to
the Trustee for the giving of notice of redemption by the Trustee in the name,
and at the expense, of the Company,

 

(d)                                 and
the Company, in the case of clause (a), (b) or (c) above, has deposited or
caused to be deposited with the Trustee as trust funds (immediately available
to the Holders in the case of clause (a)) in trust for the purpose an amount in
cash sufficient to pay and discharge the entire indebtedness on such Securities
not theretofore delivered to the Trustee for cancellation, for principal,
premium, if any, and interest (including any Liquidated Damages) to the date of
such deposit (in the case of Securities which have become due and payable) or
to the Stated Maturity or Redemption Date, as the case may be;

 

43

 

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

 

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

 

Notwithstanding the
satisfaction and discharge of this Indenture, the obligations of the Company to
the Trustee under Section 6.7, the obligations of the Company to any
Authenticating Agent under Section 6.12, the obligation of the Company to
pay Liquidated Damages, if any, if money shall have been deposited with the
Trustee pursuant to clause (1)(ii) of this Section 4.1, the obligations of
the Trustee under Section 4.2 and the last paragraph of Section 10.3
and the obligations of the Company and the Trustee under Section 3.5 and
Article XII shall survive.

 

SECTION 4.2                                                  Application
of Trust Money.

 

Subject to the provisions
of the last paragraph of Section 10.3, all money deposited with the
Trustee pursuant to Section 4.1 shall be held in trust for the sole
benefit of the Holders, and such monies shall be applied by the Trustee, in
accordance with the provisions of the Securities and this Indenture, to the
payment, either directly or through any Paying Agent (including the Company
acting as its own Paying Agent), to the Persons entitled thereto, of the
principal, premium, if any, and interest (including any Liquidated Damages) for
whose payment such money has been deposited with the Trustee.

 

All moneys deposited with
the Trustee pursuant to Section 4.1 (and held by it or any Paying Agent)
for the payment of Securities subsequently converted shall be returned to the
Company upon Company Request.

 

ARTICLE V

 

REMEDIES

 

SECTION 5.1                                                  Events
of Default.

 

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

 

(1)                                  default
in the payment of the principal of or premium, if any, on any Security at its
Maturity; or

 

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

 

44

 

(3)                                  failure
by the Company to give a Company Notice, if required, in accordance with
Section 13.3; or

 

(4)                                  default
in the performance, or breach, of any covenant or warranty of the Company in
this Indenture (other than a covenant or warranty a default in the performance
or breach of which is specifically dealt with elsewhere in this Section), and
continuance of such default or breach for a period of 60 days after there has been
given, by registered or certified mail, to the Company by the Trustee or to the
Company and the Trustee by the Holders of at least 25% in principal amount of
the Outstanding Securities a written notice specifying such default or breach
and requiring it to be remedied and stating that such notice is a “Notice of
Default” hereunder; or

 

(5)                                  a
default in the payment when due (either at its stated maturity or upon
acceleration thereof, and after expiration of any applicable grace period)
under any bonds, debentures, notes or other evidences of indebtedness for money
borrowed (or guarantee thereof) by the Company or any Significant Subsidiary or
under any mortgage, indenture or instrument under which there may be issued or
by which there may be secured or evidenced any indebtedness for money borrowed
by the Company or any Significant Subsidiary of the Company of a principal
amount in excess of U.S. $20,000,000, whether such indebtedness now exists or
shall hereafter be created, or a default under any bond, debenture, note or
other evidence of indebtedness for money borrowed by the Company or any
Significant Subsidiary or under any mortgage, indenture or instrument under
which there may be issued or by which there may be secured or evidenced any
indebtedness for money borrowed by the Company or any Significant Subsidiary
resulting in the acceleration of such indebtedness in excess of U.S.
$20,000,000, if the indebtedness is not discharged, or the acceleration is not
rescinded or annulled, within a period of 30 days after there shall have been
given, by registered or certified mail, to the Company by the Trustee or to the
Company and the Trustee by the Holders of at least 25% in principal amount of
the Outstanding Securities a written notice specifying such default and
requiring the Company to cause such indebtedness to be discharged or cause such
default to be cured or waived or such acceleration to be rescinded or annulled
and stating that such notice is a “Notice of Default” hereunder; or

 

(6)                                  the
entry by a court having jurisdiction in the premises of (A) a decree or order
for relief in respect of the Company or any Significant Subsidiary in an
involuntary case or proceeding under any applicable Federal or state
bankruptcy, insolvency, reorganization or other similar law or (B) a decree or
order adjudging the Company or any Significant Subsidiary a bankrupt or
insolvent, or approving as properly filed a petition seeking reorganization,
arrangement, adjustment or composition of or in respect of the Company or any Significant
Subsidiary under any applicable Federal or state law, or appointing a
custodian, receiver, liquidator, assignee, trustee, sequestrator or other
similar official of the Company or any Significant Subsidiary or of any
substantial part of the property of either, or ordering the winding up or
liquidation of its affairs, and the continuance of any such decree or order for
relief or any such other decree or order unstayed and in effect for a period of
90 consecutive days; or

 

(7)                                  the
commencement by the Company or any Significant Subsidiary of a voluntary case
or proceeding under any applicable Federal or state bankruptcy, insolvency,
reorganization or other similar law or of any other case or proceeding to be
adjudicated a bankrupt or insolvent,

 

45

 

or the consent by either to the entry of a decree or order for relief
in respect of the Company or any Significant Subsidiary in an involuntary case
or proceeding under any applicable Federal or state bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any bankruptcy or
insolvency case or proceeding against either, or the filing by either of a
petition or answer or consent seeking reorganization or similar relief under
any applicable Federal or state law, or the consent by either to the filing of
such petition or to the appointment of or taking possession by a custodian,
receiver, liquidator, assignee, trustee, sequestrator or other similar official
of the Company or any Significant Subsidiary or of any substantial part of the
property of either, or the making by either of an assignment for the benefit of
creditors, or the admission by either in writing of its inability to pay its
debts generally as they become due, or the taking of corporate action by the
Company or any Significant Subsidiary in furtherance of any such action.

 

SECTION 5.2                                                  Acceleration
of Maturity; Rescission and Annulment.

 

If an Event of Default
(other than an Event of Default specified in Section 5.1(6) or 5.1(7) with
respect to the Company) occurs and is continuing, then in every such case the
Trustee or the Holders of not less than 25% in principal amount of the
Outstanding Securities may declare the principal of all the Securities to be
due and payable immediately, by a notice in writing to the Company (and to the
Trustee if given by the Holders), and upon any such declaration such principal
and all accrued interest thereon shall become immediately due and payable. If
an Event of Default specified in Section 5.1(6) or 5.1(7) with respect to
the Company occurs and is continuing, the principal of, and accrued interest
on, all the Securities shall become immediately due and payable without any
declaration or other Act of the Holders or any act on the part of the Trustee.

 

At any time after such
declaration of acceleration has been made and before a judgment or decree for
payment of the money due has been obtained by the Trustee as hereinafter in
this Article V provided, the Holders of a majority in aggregate principal
amount of the Outstanding Securities, by written notice to the Company and the
Trustee, may, on behalf of all Holders, rescind and annul such declaration and
its consequences if:

 

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

 

(i)                                     all
overdue interest on all Securities,

 

(ii)                                  the
principal of and premium, if any, on any Securities that have become due
otherwise than by such declaration of acceleration and any interest thereon at
the rate borne by the Securities,

 

(iii)                               to
the extent permitted by applicable law, interest upon overdue interest at a
rate of 2.25% per annum, and

 

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

 

(2)                                  all
Events of Default, other than the nonpayment of the principal of and any
premium and interest on, Securities which have become due solely by such
declaration of acceleration, have been cured or waived as provided in
Section 5.13; and

 

46

 

(3)                                  such
rescission and annulment would not conflict with any judgment or decree issued
in appropriate judicial proceedings regarding the payment by the Trustee to the
Holders of the amounts referred to in Section 5.2(1).

 

No rescission or
annulment referred to above shall affect any subsequent default or impair any
right consequent thereon.

 

SECTION 5.3                                                  Collection
of Indebtedness and Suits for Enforcement by Trustee.

 

The Company covenants
that if:

 

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

 

(2)                                  default
is made in the payment of the principal of or premium, if any, on any Security
at the Maturity thereof,

 

the Company will, upon
demand of the Trustee pay to it, for the benefit of the Holders of such
Securities the whole amount then due and payable on such Securities for
principal and interest (including any Liquidated Damages) and interest on any
overdue principal and premium, if any, and, to the extent permitted by
applicable law, on any overdue interest (including any Liquidated Damages), at
a rate of 2.25% per annum, and in addition thereto, such further amount as
shall be sufficient to cover the reasonable 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 may enforce the same against the Company or any
other obligor upon the Securities and collect the moneys adjudged or decreed to
be payable in the manner provided by law out of the property of the Company or
any other obligor upon the Securities, 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 5.4                                                  Trustee
May File Proofs of Claim.

 

In case of the pendency
of any receivership, insolvency, liquidation, bankruptcy, reorganization,
arrangement, adjustment, composition or other judicial proceeding relative to
the Company or any other obligor upon the Securities or the property of the
Company or of such other obligor or the creditors of either, the Trustee
(irrespective of whether the principal of, and any interest on, 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

 

47

 

the Company for the payment of overdue principal or interest) 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, premium, if any, and
interest owing and unpaid in respect of the Securities and take such other
actions, including participating as a member, voting or otherwise, of any
official committee of creditors appointed in such matter, and to file such
other papers or documents, in each of the foregoing cases, as may be necessary
or advisable in order to have the claims of the Trustee (including any claim
for the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel) and of the Holders 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 proceeding 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 6.7.

 

Nothing herein contained
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; provided, however,
that the Trustee may, on behalf of such Holders, vote for the election of a
trustee in bankruptcy or similar official.

 

SECTION 5.5                                                  Trustee
May Enforce Claims Without Possession of Securities.

 

All rights of action and
claims under this Indenture (including the amounts provided for in
Section 6.7) or the Securities may be prosecuted and enforced by the
Trustee without the possession of any of the Securities or the production
thereof in any proceeding relating thereto, and any such proceeding instituted
by the Trustee shall be brought in its own name as trustee of an express trust,
and any recovery of judgment shall, after provision for the payment of the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, be for the ratable benefit of the Holders of the
Securities in respect of which judgment has been recovered.

 

SECTION 5.6                                                  Application
of Money Collected.

 

Any money collected by
the Trustee pursuant to this Article V 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 on account of principal, premium, if any, or
interest, upon presentation of the Securities and the notation thereon of the
payment if only partially paid and upon surrender thereof if fully paid:

 

FIRST:  To the payment of all amounts due the Trustee
under Section 6.7;

 

48

 

SECOND:  To the payment of the amounts then due and
unpaid for principal of, premium, if any, or interest (including Liquidated
Damages, if any) on, the Securities 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, premium, if any, and interest (including Liquidated Damages, if any),
respectively; and

 

THIRD:  Any remaining amounts shall be repaid to the
Company.

 

SECTION 5.7                                                  Limitation
on Suits.

 

No Holder of any Security
shall have any right to institute any proceeding, judicial or otherwise, with
respect to this Indenture, or for the appointment of a receiver or trustee, or
for any other remedy hereunder, unless:

 

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

 

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

 

(3)                                  such
Holder or Holders have offered to the Trustee, and if requested, shall have
provided, reasonable indemnity against the costs, expenses and liabilities to
be incurred in compliance with such request;

 

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

 

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

 

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

 

SECTION 5.8                                                  Unconditional
Right of Holders to Receive Principal, Premium and Interest 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 of,
premium, if any, and (subject to Section 3.7) interest (including
Liquidated Damages, if any) on such Security on the respective Stated
Maturities expressed in such Security (or, in the case of redemption or
repurchase, on the Redemption Date or Repurchase Date, as the case may be), and
to convert such Security in accordance with Article XII, and to institute
suit for the enforcement

 

49

 

of any such payment and right to convert, and such rights shall not be
impaired without the consent of such Holder.

 

SECTION 5.9                                                  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 such Holders shall
continue as though no such proceeding had been instituted.

 

SECTION 5.10                                            Rights
and Remedies Cumulative.

 

Except as otherwise
provided with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Securities in the last paragraph of Section 3.6, no right
or remedy herein conferred 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 now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

 

SECTION 5.11                                            Delay
or Omission Not Waiver.

 

No delay or omission of
the Trustee or of any Holder of any Security to exercise any right or remedy
accruing upon any Event of Default shall impair any such right or remedy or
constitute a waiver of any such Event of Default or any acquiescence therein.
Every right and remedy given by this Article V 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 (subject to the limitations
contained in this Indenture) by the Holders of Securities as the case may be.

 

SECTION 5.12                                            Control
by Holders of Securities.

 

Subject to
Section 6.3, the Holders of a majority in principal amount of the
Outstanding Securities 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, provided that

 

(1)                                  such
direction shall not be in conflict with any rule of law or with this Indenture,
and

 

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

 

In the event of such
direction, the Trustee shall have no duty to ascertain whether such actions or
forbearances are unduly prejudicial to any Holders.

 

50

 

SECTION 5.13                                            Waiver
of Past Defaults.

 

The Holders, either (i)
through the written consent of not less than a majority in principal amount of
the Outstanding Securities or (ii) by the adoption of a resolution, at a
meeting of Holders of the Outstanding Securities 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, may on behalf of the
Holders of all the Securities waive any past default hereunder and its
consequences, except a default (A) in the payment of the principal of, premium,
if any, or interest (including Liquidated Damages) on any Security, or (B) in
respect of a covenant or provision hereof which under Article VIII 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; but no
such waiver shall extend to any subsequent or other default or impair any right
consequent thereon.

 

SECTION 5.14                                            Undertaking
for Costs.

 

All parties to this
Indenture agree, and each Holder of any Security by his acceptance thereof
shall be deemed to have agreed, that any court may in its discretion require,
in any suit for the enforcement of any right or remedy under this Indenture, or
any suit against the Trustee for any action taken, suffered or omitted by it as
Trustee, the filing by any party litigant in such suit of an undertaking to pay
the costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys’ fees and expenses, 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 5.14 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 principal amount of
the Outstanding Securities, or to any suit instituted by any Holder of any
Security for the enforcement of the payment of the principal of, premium, if
any, or interest on any Security on or after the respective Stated Maturity or
Maturities expressed in such Security (or, in the case of redemption or
repurchase, on or after the Redemption Date or Repurchase Date, as the case may
be) or for the enforcement of the right to convert any Security in accordance
with Article XII.

 

SECTION 5.15                                            Waiver
of Stay, Usury or Extension Laws.

 

The Company covenants (to
the extent that it may lawfully do so) that it will not at any time insist
upon, or plead, or in any manner whatsoever claim or take the benefit or
advantage of, any stay, usury or extension law wherever enacted, now or at any
time hereafter in force, that 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 by reason of such law 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.

 

51

 

ARTICLE VI

 

THE TRUSTEE

 

SECTION 6.1                                                  Certain
Duties and Responsibilities.

 

(1)           Except during the continuance of an
Event of Default,

 

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

 

(ii)           in the absence of bad faith on its
part, the Trustee may conclusively rely, as to the truth of the statements and
the correctness of the opinions expressed therein, upon certificates or
opinions furnished to the Trustee and conforming to the requirements of this
Indenture, but in the case of any such certificates or opinions which by any
provision hereof are specifically required to be furnished to the Trustee, the
Trustee shall be under a duty to examine the same to determine whether or not
they conform on their face to the requirements of this Indenture, but not to
verify the contents thereof.

 

(2)           In case an Event of Default has
occurred and is continuing, the Trustee shall exercise such of the rights and
powers vested in it by this Indenture, and use the same degree of care and
skill in their exercise, as a prudent man would exercise or use under the
circumstances in the conduct of his own affairs.

 

(3)           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

 

(i)            this paragraph (3) shall not be
construed to limit the effect of paragraph (1) of this Section;

 

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

 

(iii)          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 a majority in aggregate
principal amount of the Outstanding Securities relating to the time, method and
place of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred upon the Trustee, under this Indenture;

 

(iv)          no provision of this Indenture shall
require the Trustee to expend or risk its own funds or otherwise incur any
financial liability in the performance of any of its duties hereunder, or in
the exercise of any of its rights or powers, if it shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity
against such risk or liability is not reasonably assured to it; and

 

52

 

(v)           the Trustee shall not be liable for
interest on any money received by it acting in its capacity as Trustee
hereunder except as the Trustee may agree in writing with the Company.

 

(4)           In the absence of negligence or
willful misconduct on the part of the Trustee, the Trustee shall not be
responsible for the application of any money by any Paying Agent other than the
Trustee.

 

(5)           Whether or not therein 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 and the Trust Indenture Act.

 

SECTION 6.2                                                  Notice
of Defaults.

 

Within 90 days of the
occurrence of any default hereunder as to which the Trustee has actually
received written notice pursuant to Section 10.8 hereof, the Trustee shall
give to all Holders of Securities, in the manner provided in Section 1.6,
notice of such default, unless such default shall have been cured or waived; provided,
however,
that, except in the case of a default in the payment of the principal of,
premium, if any, or interest on any Security the Trustee shall be protected in
withholding such notice if and so long as the board of directors, the executive
committee or a trust committee of directors or Responsible Officers of the
Trustee in good faith determines that the withholding of such notice is in the
interest of the Holders; and provided, further, that in the case of
any default of the character specified in Section 5.1(4), no such notice
to Holders of Securities shall be given until at least 60 days after the
occurrence thereof or, if applicable, the expiration of the cure period
specified therein. For the purpose of this Section, the term “default” means
any event which is, or after notice or lapse of time or both would become, an
Event of Default.

 

SECTION 6.3                                                  Certain
Rights of Trustee.

 

Subject to the provisions
of Section 6.1:

 

(1)           the Trustee may rely, and shall be
protected in acting or refraining from acting, upon any resolution, Officers’
Certificate, other certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, coupon, other
evidence of indebtedness or other paper or document (collectively, the “Documents”)
believed by it to be genuine and to have been signed or presented by the proper
party or parties;

 

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

 

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

 

53

 

shall not be liable for any action it takes or omits to take in good
faith in reliance on the Officers’ Certificate;

 

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

 

(5)           the Trustee shall be under no
obligation to exercise any of the rights or powers vested in it by this
Indenture at the request or direction of any of the Holders of Securities
pursuant to this Indenture, unless such Holders shall have offered, and, if
requested by the Trustee, delivered to the Trustee reasonable security or
indemnity against the costs, expenses and liabilities which might be incurred
by it in compliance with such request or direction;

 

(6)           the Trustee shall not be bound to
make any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture, note, coupon, other evidence of
indebtedness or other paper or document, but the Trustee may make such further
inquiry or investigation into such facts or matters as it may see fit, and, if
the Trustee shall determine to make such further inquiry or investigation, it
shall be entitled to examine the books, records and premises of the Company,
personally or by agent or attorney;

 

(7)           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;

 

(8)           the Trustee shall not be liable for
any action it takes or omits to take in good faith which it reasonably believes
to be authorized or within its rights or powers; provided, however,
that the Trustee’s action or omission does not constitute willful misconduct or
negligence;

 

(9)           any permissive right of the Trustee
hereunder shall not be construed to be a duty; and

 

(10)         the Trustee shall not be charged with
knowledge of any Event of Default, other than as described in
Section 5.1(1) or (2), unless and except to the extent actually known to a
Responsible Officer or written notice thereof is received by the Trustee at its
Corporate Trust Office.

 

SECTION 6.4                                                  Not
Responsible for Recitals or Issuance of Securities.

 

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

 

54

 

SECTION 6.5                                                  May
Hold Securities, Act as Trustee Under Other Indentures.

 

The Trustee, any
Authenticating Agent, any Paying Agent, any Conversion Agent or any other agent
of the Company or the Trustee, in its individual or any other capacity, may
become the owner or pledgee of Securities and may otherwise deal with the
Company with the same rights it would have if it were not Trustee,
Authenticating Agent, Paying Agent, Conversion Agent or such other agent.

 

The Trustee may become
and act as trustee under other indentures under which other securities, or
certificates of interest or participation in other securities, of the Company
are outstanding in the same manner as if it were not Trustee hereunder.

 

SECTION 6.6                                                  Money
Held in Trust.

 

Money held by the Trustee
in trust hereunder 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
money received by it hereunder except as otherwise agreed in writing with the
Company.

 

SECTION 6.7                                                  Compensation
and Reimbursement.

 

The Company agrees:

 

(1)           to pay to the Trustee from time to
time such compensation as the Company and the Trustee shall from time to time
agree in writing for all services rendered by it hereunder (which compensation
shall not be limited by any provision of law in regard to the compensation of a
trustee of an express trust);

 

(2)           except as otherwise expressly
provided herein, to reimburse the Trustee upon its request for all reasonable
expenses, disbursements and advances incurred or made by the Trustee in
accordance with any provision of this Indenture (including the reasonable compensation
and the expenses and disbursements of its agents, accountants, experts and
counsel), except any such expense, disbursement or advance as may be
attributable to its negligence or bad faith; and

 

(3)           to indemnify the Trustee (and its
directors, officers, employees and agents) for, and to hold it harmless
against, any and all loss, damage, claim, liability or expense, including taxes
(other than taxes based on the income of the Trustee) incurred without
negligence or bad faith on its part, arising out of or in connection with the
acceptance or administration of this trust, including the reasonable costs,
expenses and reasonable attorneys’ fees of defending itself against any claim
or liability in connection with the exercise or performance of any of its
powers or duties hereunder.

 

When the Trustee incurs
expenses or renders services in connection with an Event of Default specified
in Section 5.1(6) or Section 5.1(7), the expenses (including the
reasonable charges of its counsel) and the compensation for the services are
intended to constitute expenses of the administration under any applicable
Federal or state bankruptcy, insolvency or other similar law.

 

55

 

The Trustee is hereby
granted a security interest in and a lien prior to the Securities as to all
property and funds held by it hereunder for any amount owing it or any
predecessor Trustee pursuant to this Section 6.7, except with respect to
funds held in trust for the benefit of the Holders of particular Securities.

 

The provisions of this
Section shall survive the termination of this Indenture or the earlier
resignation or removal of the Trustee.

 

SECTION 6.8                                                  Corporate
Trustee Required; Eligibility.

 

There shall at all times
be a Trustee hereunder which shall be a Person that is eligible pursuant to the
Trust Indenture Act to act as such, having a combined capital and surplus of at
least U.S. $250,000,000, subject to supervision or examination by Federal or
State authority, in good standing and having an established place of business
in the Borough of Manhattan, The City of New York. If such corporation
publishes reports of condition at least annually, pursuant to law or to the
requirements of said 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. If at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section, it shall resign
immediately in the manner and with the effect hereinafter specified in this
Article and a successor shall be appointed pursuant to Section 6.9.

 

SECTION 6.9                                                  Resignation
and Removal; Appointment of Successor.

 

(1)           No resignation or removal of the
Trustee and no appointment of a successor Trustee pursuant to this
Article shall become effective until the acceptance of appointment by the
successor Trustee in accordance with the applicable requirements of
Section 6.10.

 

(2)           The Trustee may resign at any time by
giving written notice thereof to the Company. If the instrument of acceptance
by a successor Trustee required by Section 6.10 shall not have been
delivered to the Trustee within 30 days after the giving of such notice of
resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor Trustee.

 

(3)           The Trustee may be removed at any
time by an Act of the Holders of a majority in aggregate principal amount of
the Outstanding Securities, delivered to the Trustee and the Company. If the
instrument of acceptance by a successor Trustee required by Section 6.10
shall not have been delivered to the Trustee within 30 days after the giving of
such notice of removal, the removed Trustee may petition any court of competent
jurisdiction for the appointment of a successor Trustee.

 

(4)           If at any time:

 

(i)            the Trustee shall cease to be
eligible under Section 6.8 and shall fail to resign after written request
therefor by the Company or by any Holder of a Security who has been a bona fide
Holder of a Security for at least six months, or

 

56

 

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

 

then, in any such case
(i) the Company by a Board Resolution may remove the Trustee, or (ii) subject
to Section 5.14, any Holder of a Security who has been a bona fide Holder
of a Security for at least six months may, on behalf of himself and all others
similarly situated, petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor Trustee.

 

(5)           If the Trustee shall resign, be
removed or become incapable of acting, or if a vacancy shall occur in the
office of Trustee for any cause, the Company, by a Board Resolution, shall
promptly appoint a successor Trustee and shall comply with the applicable
requirements of this Section and Section 6.10. If, within one year
after such resignation, removal or incapability, or occurrence of such vacancy,
a successor Trustee shall be appointed by Act of the Holders of a majority in
aggregate principal amount of the Outstanding Securities delivered to the
Company and the retiring Trustee, the successor Trustee so appointed shall, forthwith
upon its acceptance of such appointment in accordance with the applicable
requirements of Section 6.10 become the successor Trustee and supersede
the successor Trustee appointed by the Company.  If no successor Trustee shall have been so appointed by the
Company or the Holders of Securities and accepted appointment in the manner
required by this Section and Section 6.10, any Holder of a Security
who has been a bona fide Holder of a Security for at least six months may, on
behalf of himself and all others similarly situated, petition any court of
competent jurisdiction for the appointment of a successor Trustee.

 

(6)           The Company shall give notice of each
resignation and each removal of the Trustee and each appointment of a successor
Trustee to all Holders of Securities in the manner provided in
Section 1.6. Each notice shall include the name of the successor Trustee
and the address of its Corporate Trust Office.

 

SECTION 6.10                                            Acceptance
of Appointment by Successor.

 

Every successor Trustee
appointed hereunder shall execute, acknowledge and deliver to the Company and
to the retiring Trustee an instrument accepting such appointment, and thereupon
the resignation or removal of the retiring Trustee shall become effective and
such successor Trustee, without any further act, deed or conveyance, shall
become vested with all the rights, powers, trusts and duties of the retiring
Trustee; 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, subject to the lien provided for in Section 6.7. 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.

 

57

 

No successor Trustee
shall accept its appointment unless at the time of such acceptance such
successor Trustee shall be eligible under this Article.

 

SECTION 6.11                                            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 all or substantially all of the corporate trust business of the
Trustee (including the trust created by this Indenture), by sale or otherwise,
shall be the successor of the Trustee hereunder, provided such corporation
shall be otherwise eligible under this Article, without the execution or filing
of any paper or any further act on the part of any of the parties hereto. 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 6.12                                            Authenticating
Agents.

 

The Trustee may, with the
consent of the Company, appoint an Authenticating Agent or Agents acceptable to
the Company with respect to the Securities, which Authenticating Agent shall be
authorized to act on behalf of the Trustee to authenticate Securities issued
upon exchange or substitution pursuant to this Indenture.

 

Securities authenticated
by an Authenticating Agent shall be entitled to the benefits of this Indenture
and shall be valid and obligatory for all purposes as if authenticated by the
Trustee hereunder, and every reference in this Indenture to the authentication
and delivery of Securities by the Trustee or the Trustee’s certificate of
authentication shall be deemed to include authentication and delivery on behalf
of the Trustee by an Authenticating Agent and a certificate of authentication
executed on behalf of the Trustee by an Authenticating Agent. Each
Authenticating Agent shall be subject to acceptance by the Company and shall at
all times be a corporation organized and doing business under the laws of the
United States of America, any State thereof or the District of Columbia,
authorized under such laws to act as Authenticating Agent and subject to
supervision or examination by government or other fiscal authority. If at any
time an Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section 6.12, such Authenticating Agent shall resign
immediately in the manner and with the effect specified in this
Section 6.12.

 

Any corporation into which
an Authenticating Agent may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or
consolidation to which such Authenticating Agent shall be a party, or any
corporation succeeding to the corporate agency or corporate trust business of
an Authenticating Agent, by sale or otherwise, shall continue to be an
Authenticating Agent, provided such corporation shall be otherwise eligible
under this Section 6.12, without the execution or filing of any paper or
any further act on the part of the Trustee or the Authenticating Agent.

 

58

 

An Authenticating Agent
may resign at any time by giving written notice thereof to the Trustee and to
the Company. The Trustee may at any time terminate the agency of an
Authenticating Agent by giving written notice thereof to such Authenticating
Agent and to the Company. Upon receiving such a notice of resignation or upon
such a termination, or in case at any time such Authenticating Agent shall
cease to be eligible in accordance with the provisions of this
Section 6.12, the Trustee may appoint a successor Authenticating Agent
which shall be subject to acceptance by 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,
with like effect as if originally named as an Authenticating Agent. No
successor Authenticating Agent shall be appointed unless eligible under the
provisions of this Section 6.12.

 

The Company agrees to pay
to each Authenticating Agent from time to time reasonable compensation for its
services under this Section 6.12.

 

If an Authenticating
Agent is appointed with respect to the Securities pursuant to this
Section 6.12, the Securities may have endorsed thereon, in addition to or
in lieu of the Trustee’s certification of authentication, an alternative
certificate of authentication in the following form:

 

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

 

	
   

  	
  WILMINGTON TRUST
  COMPANY,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  As Authenticating Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  

 

 

SECTION 6.13                                            Disqualification;
Conflicting Interests.

 

If the Trustee has or
shall acquire a conflicting interest within the meaning of the Trust Indenture
Act, the Trustee shall either eliminate such interest or resign, to the extent
and in the manner provided by, and subject to the provisions of, the Trust
Indenture Act and this Indenture.

 

SECTION 6.14                                            Preferential
Collection of Claims Against Company.

 

If and when the Trustee
shall be or become a creditor of the Company (or any other obligor upon the
Securities), the Trustee shall be subject to the provisions of the Trust
Indenture Act regarding the collection of claims against the Company (or any
such other obligor).

 

59

 

ARTICLE VII

 

CONSOLIDATION,
MERGER, CONVEYANCE, TRANSFER OR LEASE

 

SECTION 7.1                                                  Company
May Consolidate, Etc. Only on Certain Terms.

 

The Company shall not
consolidate with or merge with or into any other Person or convey, transfer or
lease or otherwise dispose of all its properties and assets substantially as an
entirety to any Person, and the Company shall not permit any Person to
consolidate with or merge with or into the Company or convey, transfer, sell or
lease such Person’s properties and assets substantially as an entirety to the
Company unless:

 

(1)           the Person formed by such
consolidation or into or with which the Company is merged or the Person to
which the properties and assets of the Company are so conveyed, transferred,
sold or leased shall be a corporation, limited liability company, partnership
or trust organized and validly existing under the laws of the United States of
America, any State thereof or the District of Columbia and, if other than the
Company, shall expressly assume, by an indenture supplemental hereto, executed
and delivered to the Trustee, in form satisfactory to the Trustee, the due and
punctual payment of the principal of, premium, if any, and interest (including
Liquidated Damages, if any) on all of the Securities as applicable, and the
performance or observance of every covenant of this Indenture on the part of
the Company to be performed or observed and shall have provided for conversion
rights in all material respects in accordance with Article XII;  if the Company (or the Person formed by such
consolidation or into or with which the Company is merged or the Person to
which the properties and assets of the Company are so conveyed, transferred,
sold or leased) shall, after giving effect to such transaction, be a subsidiary
of the Person that issues the securities receivable upon such transaction by
holders of shares of Common Stock of the Company, the supplemental indenture
shall provide that such Person fully and unconditionally guarantees the due and
punctual payment of the principal of, premium, if any, and interest (including
Liquidated Damages, if any) on all of the Securities as applicable, and the
performance or observance of every covenant of this Indenture on the part of
the Company to be performed or observed;

 

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

 

(3)           the Company has delivered to the
Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that
such consolidation, merger, conveyance, transfer, lease or other disposal and,
if a supplemental indenture is required in connection with such transaction,
such supplemental indenture comply with this Article and that all
conditions precedent herein provided for relating to such transaction have been
complied with, together with any documents required under Section 8.3.

 

SECTION 7.2                                                  Successor
Substituted.

 

Upon any consolidation of
the Company with, or merger of the Company with or into any other Person or any
conveyance, transfer, lease or other disposal of the properties and assets of

 

60

 

the Company substantially as an entirety in accordance with
Section 7.1, the successor Person formed by such consolidation or into or
with 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, the predecessor Person shall be relieved of all
obligations and covenants under this Indenture and the Securities.

 

ARTICLE VIII

 

SUPPLEMENTAL
INDENTURES

 

SECTION 8.1                                                  Supplemental
Indentures Without Consent of Holders of Securities.

 

Without the consent of
any Holders of Securities the Company, when authorized by a Board Resolution,
and the Trustee, at any time and from time to time, may enter into one or more
indentures supplemental hereto for any of the following purposes:

 

(1)           to evidence the succession of another
Person to the Company and the assumption by any such successor, and, if
applicable, the guarantee by an Affiliate of such successor, of the covenants
and obligations of the Company herein and in the Securities as permitted by
Article VII of this Indenture; or

 

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

 

(3)           to secure the Securities; or

 

(4)           to make provision with respect to the
conversion rights of Holders of Securities pursuant to Section 12.11 or to
make provision with respect to the repurchase rights of Holders of Securities
pursuant to Section 13.5; or

 

(5)           to make any changes or modifications
to this Indenture necessary in connection with the registration of any
Registrable Securities under the Securities Act as contemplated by
Section 10.11, provided such action pursuant to this clause (5) shall not
adversely affect the interests of the Holders of Securities in any material
respect; or

 

(6)           to comply with the requirements of
the Trust Indenture Act or the rules and regulations of the Commission
thereunder in order to effect or maintain the qualification of this Indenture
under the Trust Indenture Act, as contemplated by this Indenture or otherwise;
or

 

(7)           to evidence and provide for the
acceptance of appointment hereunder by a successor Trustee; or

 

(8)           to cure any ambiguity, to correct or
supplement any provision herein that may be inconsistent with any other
provision herein or that is otherwise defective, or to make any other

 

61

 

provisions with respect to matters or questions arising under this
Indenture as the Company and the Trustee may deem necessary or desirable,
provided such action pursuant to this clause (8) shall not adversely affect the
interests of the Holders of Securities in any material respect.

 

Upon Company Request,
accompanied by a Board Resolution authorizing the execution of any such
supplemental indenture, and subject to and upon receipt by the Trustee of the
documents described in Section 8.3 hereof, the Trustee shall join with the
Company in the execution of any supplemental indenture authorized or permitted
by the terms of this Indenture and to make any further appropriate agreements
and stipulations that may be therein contained.

 

Notwithstanding any other
provision of the Indenture or the Securities, the Registration Rights Agreement
and the obligation to pay Liquidated Damages thereunder may be amended,
modified or waived in accordance with the provisions of the Registration Rights
Agreement.

 

SECTION 8.2                                                  Supplemental
Indentures with Consent of Holders of Securities.

 

Except as set forth in
Section 8.1, with either (i) the written consent of the Holders of not
less than a majority in principal amount of the Outstanding Securities, by the
Act of said Holders delivered to the Company and the Trustee, or (ii) by the
adoption of a resolution, at a meeting of Holders of the Outstanding Securities
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, the Company, when authorized by a Board Resolution, and the Trustee
may enter into an indenture or indentures supplemental hereto for the purpose
of adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of modifying in any manner the rights of the
Holders of Securities under this Indenture; provided, however, that no such
supplemental indenture shall, without the consent or affirmative vote of the
Holder of each Outstanding Security affected thereby,

 

(1)           change the Stated Maturity of the
principal of, or any installment of interest on, any Security, or reduce the
principal amount of, or the premium, if any, or the rate of interest payable
thereon, or reduce the amount payable upon a redemption or mandatory
repurchase, or change the place or currency of payment of the principal of,
premium, if any, or interest on any Security (including any payment of
Liquidated Damages (except as may be effected through an amendment of the
Registration Rights Agreement in accordance with its terms) or Redemption Price
or Repurchase Price in respect of such Security) or impair the right to
institute suit for the enforcement of any payment in respect of any Security on
or after the Stated Maturity thereof (or, in the case of redemption or any
repurchase, on or after the Redemption Date or Repurchase Date, as the case may
be); or

 

(2)           reduce the requirements of
Section 9.4 for quorum or voting, or reduce the percentage in principal
amount of the Outstanding Securities the consent of whose Holders is required
for any such supplemental indenture or the consent of whose Holders is required
for any waiver (of compliance with certain provisions of this Indenture or
certain defaults hereunder and their consequences) provided for in this
Indenture; or

 

62

 

(3)           modify any of the provisions of this
Section or Section 5.13 or 10.12, 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

 

(4)           modify the ranking of the Securities
in a manner adverse to the Holders; or

 

(5)           modify the Company’s right to redeem
the Securities in a manner adverse to the Holders; or

 

(6)           modify the provisions of
Article XII or XIII in a manner adverse to the Holders (subject to the
last sentence of Section 12.4(10)); or

 

(7)           modify the provisions of
Section 10.9 in a manner adverse to the Holder.

 

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.

 

SECTION 8.3                                                  Execution
of Supplemental Indentures.

 

In executing, or
accepting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trusts
created by this Indenture, the Trustee shall be entitled to receive, and
(subject to Sections 6.1 and 6.3) shall be fully protected in relying upon, an
Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture, and that such supplemental indenture
has been duly authorized, executed and delivered by the Company and constitutes
a valid and legally binding obligation of the Company enforceable against the
Company in accordance with its terms, subject to general equity principles and
applicable bankruptcy, insolvency, fraudulent transfer or conveyance,
reorganization, arrangement, dissolution, moratorium or other similar laws
relating to or affecting creditors’ rights generally.  The Trustee may, but shall not be obligated to, enter into any
such supplemental indenture which adversely affects the Trustee’s own rights,
duties or immunities under this Indenture or otherwise.

 

SECTION 8.4                                                  Effect
of Supplemental Indentures.

 

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

 

SECTION 8.5                                                  Reference
in Securities to Supplemental Indentures.

 

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

 

63

 

the Company and authenticated and delivered by the Trustee in exchange
for Outstanding Securities.

 

SECTION 8.6                                                  Notice
of Supplemental Indentures.

 

Promptly after the
execution by the Company and the Trustee of any supplemental indenture pursuant
to the provisions of Section 8.2, the Company shall give notice to all
Holders of Securities of such fact, setting forth in general terms the
substance of such supplemental indenture, in the manner provided in
Section 1.6. Any failure of the Company to give such notice, or any defect
therein, shall not in any way impair or affect the validity of any such
supplemental indenture.

 

ARTICLE IX

 

MEETINGS OF
HOLDERS OF SECURITIES

 

SECTION 9.1                                                  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 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.

 

SECTION 9.2                                                  Call,
Notice and Place of Meetings.

 

(1)           The Trustee, with the Company’s
consent (so long as an Event of Default has not occurred and is not
continuing), may at any time call a meeting of Holders of Securities for any
purpose specified in Section 9.1, to be held at such time and at such
place in the Borough of Manhattan, The City of New York, as the Trustee shall
determine. Notice of every meeting of Holders of Securities, setting forth the
time and the place of such meeting and in general terms the action proposed to
be taken at such meeting, shall be given, in the manner provided in
Section 1.6, not less than 21 nor more than 180 days prior to the date
fixed for the meeting.

 

(2)           In case at any time the Company,
pursuant to a Board Resolution, or, if an Event of Default has occurred and is
continuing, the Holders of at least 10% in principal amount of the Outstanding
Securities shall have requested the Trustee to call a meeting of the Holders of
Securities for any purpose specified in Section 9.1, by written request
setting forth in reasonable detail the action proposed to be taken at the
meeting, and the Trustee shall not have mailed 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 Borough of Manhattan, The City of New
York, for such meeting and may call such meeting for such purposes by giving
notice thereof as provided in paragraph (1) of this Section.

 

64

 

SECTION 9.3                                                  Persons
Entitled to Vote at Meetings.

 

To be entitled to vote at
any meeting of Holders of Securities, a Person shall be (i) a Holder of one or
more Outstanding Securities, or (ii) 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.

 

SECTION 9.4                                                  Quorum;
Action.

 

The Persons entitled to
vote a majority in principal amount of the 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 not less than 10 days as determined by the chairman of the meeting
prior to the adjournment of such adjourned meeting (subject to repeated
applications of this sentence). Notice of the reconvening of any adjourned
meeting shall be given as provided in Section 9.2(1), except that such
notice need be given only once not less than five days prior to the date on
which the meeting is scheduled to be reconvened.  Notice of the reconvening of an adjourned meeting shall state
expressly the percentage of the principal amount of the Outstanding Securities
that shall constitute a quorum.

 

Subject to the foregoing,
at the reconvening of any meeting adjourned for a lack of a quorum, the Persons
entitled to vote 25% in principal amount of the Outstanding Securities at the
time shall constitute a quorum for the taking of any action set forth in the
notice of the original meeting.

 

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 proviso to
Section 8.2 and except to the extent Section 10.12 requires a
different vote) shall be effectively passed and decided if passed or decided by
the lesser of (i) the Holders of not less than a majority in principal amount
of Outstanding Securities and (ii) the Persons entitled to vote not less than a
majority in aggregate principal amount of Outstanding Securities represented
and entitled to vote 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. The Trustee shall, in the
name and at the expense of the Company, notify all the Holders of Securities of
any such resolutions or decisions pursuant to Section 1.6.

 

65

 

SECTION 9.5                                                  Determination
of Voting Rights; Conduct and Adjournment of Meetings.

 

(1)           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. Except as otherwise permitted or required by any such regulations,
the holding of Securities shall be proved in the manner specified in
Section 1.4 and the appointment of any proxy shall be proved in the manner
specified in Section 1.4 or by having the signature of the Person
executing the proxy guaranteed by any bank, broker or other eligible
institution participating in a recognized medallion signature guarantee
program.

 

(2)           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 9.2(1), 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.

 

(3)           At any meeting, each Holder of a
Security or proxy shall be entitled to one vote for each U.S. $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.

 

(4)           Any meeting of Holders of Securities
duly called pursuant to Section 9.2 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 Outstanding Securities represented at the meeting, and the meeting
may be held as so adjourned without further notice.

 

SECTION 9.6                                                  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 at
Stated Maturity 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

 

66

 

as provided in Section 9.2 and, if applicable, Section 9.4.
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 X

 

COVENANTS

 

SECTION 10.1                                            Payment
of Principal, Premium and Interest.

 

The Company covenants and
agrees that it will duly and punctually pay the principal of and premium, if
any, and interest (including Liquidated Damages, if any) on the Securities in
accordance with the terms of the Securities and this Indenture. The Company
will deposit or cause to be deposited with the Trustee, no later than the
opening of business on the date of the Stated Maturity of any Security or no
later than the opening of business on the due date for any installment of
interest, all payments so due, which payments shall be in immediately available
funds on the date of such Stated Maturity or due date, as the case may be.

 

SECTION 10.2                                            Maintenance
of Offices or Agencies.

 

The Company hereby
appoints the Corporate Trust Office of the Trustee, where Securities may be
presented or surrendered for payment, where Securities may be surrendered for
registration of transfer or exchange or for presentation for payment or for
conversion, redemption or repurchase 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 agent
or appoint any additional agents 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, premium, if any,
and interest on the Securities have been made available for payment and either
paid or returned to the Company pursuant to the provisions of
Section 10.3, the Company will maintain in the Borough of Manhattan, The
City of New York, an office or agency where Securities may be presented or
surrendered for payment and conversion, which shall initially be the Corporate
Trust Office of the Trustee, where Securities may be surrendered for
registration of transfer or exchange and where notices and demands to or upon
the Company in respect of the Securities and this Indenture may be served. The
Company will give prompt written notice to the Trustee, and notice to the
Holders in accordance with Section 1.6, 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, or shall
fail to furnish the Trustee with the address thereof, presentations and
surrenders may be made and notices and demands may be served on the Corporate
Trust Office of the Trustee.  The
Company hereby initially designates the Trustee as Paying Agent, Security
Registrar and

 

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Conversion Agent, and the Corporate Trust Office of the Trustee as one
such office or agency of the Company for each of the aforesaid purposes.

 

SECTION 10.3                                            Money
for Security Payments to Be Held in Trust.

 

If the Company shall act
as its own Paying Agent, it will, on or before each due date of the principal
of, premium, if any, or interest on any of the Securities, segregate and hold
in trust for the benefit of the Persons entitled thereto a sum sufficient to
pay the principal, premium, if any, or interest so becoming due until such sums
shall be paid to such Persons or otherwise disposed of as herein provided and
the Company will promptly notify the Trustee, in writing, of its action or
failure so to act.

 

Whenever the Company
shall have one or more Paying Agents, it will, no later than the opening of
business on each due date of the principal of, premium, if any, or interest on
any Securities, deposit with the Trustee a sum in funds immediately available
on the payment date sufficient to pay the principal, premium, if any, or
interest so becoming due, such sum to be held for the benefit of the Persons
entitled to such principal, premium, if any, or interest, and (unless such
Paying Agent is the Trustee) the Company will promptly notify the Trustee, in
writing, of any failure so to act.

 

The Company will cause
each Paying Agent other than the Trustee to execute and deliver to the Trustee
an instrument in which such Paying Agent shall agree with the Trustee, subject
to the provisions of this Section, that such Paying Agent will:

 

(1)           hold all sums held by it for the
payment of the principal of, premium, if any, or interest on Securities for the
benefit of the Persons entitled thereto until such sums shall be paid to such
Persons or otherwise disposed of as herein provided;

 

(2)           give the Trustee written notice of
any default by the Company (or any other obligor upon the Securities) in the
making of any payment of principal, premium, if any, or interest; and

 

(3)           at any time during the continuance of
any such default, upon the written request of the Trustee, forthwith pay to the
Trustee all sums so held by such Paying Agent.

 

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 by Company Order 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 trusts 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.

 

Any money deposited with
the Trustee or any Paying Agent, or then held by the Company, in trust for the
payment of the principal of, premium, if any, or interest on any Security and
remaining unclaimed for two years after such principal, premium, if any, or
interest has become due and payable shall be paid within 60 days of such date
by the Trustee to the Company on Company Request, as its property free from
trust, or (if then held by the Company)

 

68

 

shall be discharged from such trust; and the Holder of such Security
shall thereafter, as an unsecured general creditor, look only to the Company
for payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease; provided, however, that the Trustee or
such Paying Agent, before being required to make any such repayment, may at the
expense of the Company cause to be published once, in an Authorized Newspaper
in each Place of Payment, notice that such money remains unclaimed and that,
after a date specified therein, which shall not be less than 30 days from the
date of such publication, any unclaimed balance of such money then remaining
will be repaid to the Company.

 

In the absence of a
written request from the Company to return unclaimed funds to the Company, the
Trustee shall from time to time deliver all unclaimed funds to or as directed
by applicable escheat authorities, as determined by the Trustee in its sole
discretion, in accordance with the customary practices and procedures of the
Trustee.  Any unclaimed funds held by
the Trustee pursuant to this section shall be held uninvested and without
liability for interest.

 

SECTION 10.4                                            Existence.

 

Subject to
Article VII, the Company will do or cause to be done all things necessary
to preserve and keep in full force and effect its 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 Board of
Directors shall determine 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 10.5                                            Maintenance
of Properties.

 

The Company will cause
all properties used or useful in the conduct of its business or the business of
any Significant Subsidiary to be maintained and in good condition, repair and
working order and supplied with all necessary equipment and will cause to be
made all necessary repairs, renewals, replacements, betterments and
improvements thereof, all as in the judgment of the Company may be necessary so
that the business of the Company or such Significant Subsidiary may be properly
and advantageously conducted at all times; provided, however, that nothing in
this Section shall prevent the Company from discontinuing the operation or
maintenance of any of such properties if such discontinuance is, in the
judgment of the Company, desirable in the conduct of its business or the
business of any Significant Subsidiary and not disadvantageous in any material
respects to the Holders.

 

SECTION 10.6                                            Payment
of Taxes and Other Claims.

 

The Company will pay or
discharge, or cause to be paid or discharged, before the same may become
delinquent, (i) all taxes, assessments and governmental charges levied or
imposed upon the Company or any Subsidiary or upon the income, profits or
property of the Company or any Subsidiary and (ii) subject to
Section 12.8, all stamps and other duties, if any, which may be imposed by
the United States or any political subdivision thereof or therein in connection
with the issuance, transfer, exchange or conversion of any Securities or with
respect to this Indenture; provided, however, that, in the case of
clauses (i) and (ii), the Company shall not be required to

 

69

 

pay or discharge or cause to be paid or discharged any such tax,
assessment, charge or claim (A) if the failure to do so will not, in the
aggregate, have a material adverse impact on the Company and its subsidiaries
taken as a whole, or (B) if the amount, applicability or validity is being
contested in good faith by appropriate proceedings.

 

SECTION 10.7                                            Registration
and Listing.

 

The Company will effect
all registrations with, and obtain all approvals by, all governmental
authorities that may be necessary under any United States Federal or state law
(including the Securities Act, the Exchange Act and state securities and Blue
Sky laws) before the shares of Common Stock issuable upon conversion of
Securities are issued and delivered, and qualified or listed as contemplated
under the Registration Rights Agreement.

 

Nothing in this
Section will limit the application of Section 10.11.

 

SECTION 10.8                                            Statement
by Officers as to Default.

 

The Company shall deliver
to the Trustee, within 120 days after the end of each fiscal year of the
Company ending after the date hereof, an Officers’ Certificate (one of the
signers of which shall be the Company’s principal executive, principal
financial or principal accounting officer), stating whether or not to the best
knowledge of the signers thereof the Company is in default in the performance
and observance of any of the terms, provisions and conditions of this Indenture
(without regard to any period of grace or requirement of notice provided
hereunder) and, if the Company shall be in default, specifying all such
defaults and the nature and status thereof of which they may have knowledge.

 

The Company will deliver
to the Trustee, forthwith upon becoming aware of any default in the performance
or observance of any covenant, agreement or condition in this Indenture, or any
Event of Default, an Officers’ Certificate specifying with particularity such
default or Event of Default and further stating what action the Company has
taken, is taking or proposes to take with respect thereto.  For the purpose of this Section, the term
“default” means any event which is, or after notice or lapse of time or both
would become, an Event of Default.

 

Any notice required to be
given under this Section 10.8 shall be delivered to the Trustee at its
Corporate Trust Office.

 

SECTION 10.9                                            Delivery
of Certain Information.

 

At any time when the
Company is not subject to Section 13 or 15(d) of the Exchange Act, upon
the request of a Holder of a Restricted Security or the holder of shares of
Common Stock issued upon conversion thereof, the Company will promptly furnish
or cause to be furnished Rule 144A Information (as defined below) to such
Holder of Restricted Securities or such holder of shares of Common Stock issued
upon conversion of Restricted Securities, or to a prospective purchaser of any
such security designated by any such Holder or holder, as the case may be, to
the extent required to permit compliance by such Holder or holder with Rule
144A under the Securities Act (or any successor provision thereto) in
connection with the resale of any such security; provided, however,
that the Company shall not be required to furnish such information in
connection with any request made on or after the date that is two years from
the later of (i) the

 

70

 

date such a security (or any such predecessor security) was last
acquired from the Company or (ii) the date such a security (or any such
predecessor security) was last acquired from an “affiliate” of the Company
within the meaning of Rule 144 under the Securities Act (or any successor
provision thereto). “Rule 144A Information” shall be such information as
is specified pursuant to Rule 144A(d)(4) under the Securities Act (or any
successor provision thereto).

 

SECTION 10.10                                      Resale
of Certain Securities.

 

During the period
beginning on the last date of original issuance of the Securities and ending on
the date that is two years from such date (or such shortened period under Rule
144(k) under the Securities Act or any successor rule), the Company will not,
and will not permit any of its subsidiaries or other “affiliates” (as defined
under Rule 144 under the Securities Act or any successor provision thereto) to,
resell (i) any Securities that constitute “restricted securities” under Rule
144 or (ii) any securities into which the Securities have been converted under
this Indenture that constitute “restricted securities” under Rule 144, that in
either case have been reacquired by any of them.  The Trustee shall have no responsibility in respect of the
Company’s performance of its agreement in the preceding sentence.

 

SECTION 10.11                                      Registration
Rights.

 

The Company agrees that
the Holders from time to time of Registrable Securities (as defined below) are
entitled to the benefits of the Registration Rights Agreement.

 

Whenever in this
Indenture there is mentioned, in any context, the payment of the principal of,
premium, if any, or interest on, or in respect of, any Security, such mention
shall be deemed to include mention of the payment of Liquidated Damages
provided for in this Section to the extent that, in such context,
Liquidated Damages are, were or would be payable in respect thereof pursuant to
the provisions of this Section and express mention of the payment of
Liquidated Damages (if applicable) in any provisions hereof shall not be
construed as excluding Liquidated Damages in those provisions hereof where such
express mention is not made.

 

For the purposes of the
Registration Rights Agreement, “Registrable  Securities” means all
or any portion of the Securities issued from time to time under this Indenture
in registered form and the shares of Common Stock issuable upon conversion,
repurchase or redemption of such Securities; provided, however,
that a security ceases to be a Registrable Security when it is no longer a
Restricted Security.

 

If a Security, or the
shares of Common Stock issuable upon conversion of a Security, is a Registrable
Security, and the Holder thereof elects to sell such Registrable Security
pursuant to the Shelf Registration Statement then, by its acceptance thereof,
the Holder of such Registrable Security will have agreed to be bound by the
terms of the Registration Rights Agreement relating to the Registrable
Securities which are the subject of such election.

 

For the purposes of the
Registration Rights Agreement, the term “Holder” means any Person that
is the record owner of Registrable Securities (and includes any Person that has
a beneficial interest in any Registrable Security in book entry form).

 

71

 

If Liquidated Damages are
payable under the Registration Rights Agreement, the Company shall deliver to
the Trustee a certificate to that effect stating (i) the amount of Liquidated
Damages that is payable and (ii) the date on which Liquidated Damages are
payable.  Unless and until a Responsible
Officer of the Trustee receives at the Corporate Trust Office such a
certificate, the Trustee may assume without inquiry that no Liquidated Damages
are payable.  If Liquidated Damages have
been paid by the Company directly to the persons entitled to them, the Company
shall deliver to the Trustee a certificate setting forth the particulars of
such payment.

 

SECTION 10.12                                      Waiver
of Certain Covenants.

 

The Company may omit in
any particular instance to comply with any covenant or condition set forth in
Sections 10.4 (other than with respect to the existence of the Company (subject
to Article VII)), and 10.6, inclusive (other than a covenant or condition
which under Article VIII cannot be modified or amended without the consent
of the Holder of each Outstanding Security affected), if before the time for
such compliance the Holders shall, through (i) the written consent of not less
than a majority in aggregate principal amount of the Outstanding Securities or
(ii) the adoption of a resolution at a meeting of Holders of the Outstanding
Securities at which a quorum is present by the Holders of not less than a
majority in aggregate principal amount of the Outstanding Securities
represented at such meeting, either waive such compliance in such instance or
generally waive compliance with such covenant or condition, but no such waiver
shall extend to or affect such covenant or condition except to the extent so
expressly waived, and, until such waiver shall become effective, the
obligations of the Company and the duties of the Trustee or any Paying or
Conversion Agent in respect of any such covenant or condition shall remain in
full force and effect.

 

ARTICLE XI

 

REDEMPTION OF
SECURITIES

 

SECTION 11.1                                            Right
of Redemption.

 

The Securities may be
redeemed in accordance with the provisions of the form of Security set forth in
Section 2.2.

 

SECTION 11.2                                            Applicability
of Article.

 

Redemption of Securities
at the election of the Company or otherwise, as permitted or required by any
provision of the Securities or this Indenture, shall be made in accordance with
such provision and this Article XI.

 

SECTION 11.3                                            Election
to Redeem; Notice to Trustee; Public Announcement.

 

The election of the
Company to redeem any Securities shall be evidenced by a Board Resolution. In
case of any redemption at the election of the Company of any of the Securities,
the Company shall, at least 60 days prior to the Redemption Date fixed by the
Company (unless

 

72

 

a shorter notice shall be satisfactory to the Trustee), notify the
Trustee in writing of such Redemption Date and make a public announcement
thereof by release made to Reuters Economic Services and Bloomberg Business
News.

 

SECTION 11.4                                            Selection
by Trustee of Securities to Be Redeemed.

 

If less than all the
Securities are to be redeemed, the particular Securities to be redeemed shall
be selected by the Trustee within three Business Days after it receives the
notice described in Section 11.3, from the Outstanding Securities not
previously called for redemption, by lot or by such other method as the Trustee
may deem fair and appropriate.

 

If any Security selected
for partial redemption is converted in part before termination of the
conversion right with respect to the portion of the Security so selected, the
converted portion of such Security shall be deemed (so far as may be) to be the
portion selected for redemption. Securities which have been converted during a
selection of Securities to be redeemed may be treated by the Trustee as Outstanding
for the purpose of such selection.  The
Trustee shall promptly notify the Company and each Security Registrar in
writing of the Securities selected for redemption and, in the case of any
Securities selected for partial redemption, the principal amount and
certificate numbers thereof to be redeemed.

 

For all purposes of this
Indenture, unless the context otherwise requires, all provisions relating to
the redemption of Securities shall relate, in the case of any Securities
redeemed or to be redeemed only in part, to the portion of the principal amount
of such Securities which has been or is to be redeemed.

 

SECTION 11.5                                            Notice
of Redemption.

 

Notice of redemption
shall be given by the Company in the manner provided in Section 1.6 to the
Holders of Securities to be redeemed not less than 30 nor more than 60 days
prior to the Redemption Date, and such notice shall be irrevocable.

 

All notices of redemption
shall identify the Securities to be redeemed (including CUSIP numbers) and
shall state:

 

(1)           the Redemption Date,

 

(2)           the Redemption Price, and accrued
interest (including Liquidated Damages, if any), if any, to, but excluding, the
Redemption Date,

 

(3)           if less than all Outstanding
Securities are to be redeemed, the aggregate principal amount of Securities to
be redeemed and the aggregate principal amount of Securities which will be
outstanding after such partial redemption,

 

(4)           that on the Redemption Date the
Redemption Price, and accrued interest (including Liquidated Damages, if any),
if any, to, but excluding, the Redemption Date, will become due and payable
upon each such Security to be redeemed, and that interest thereon shall cease
to accrue on and after said date,

 

73

 

(5)           the Conversion Rate, the date on
which the right to convert the Securities to be redeemed will terminate and the
places where such Securities may be surrendered for conversion,

 

(6)           the place or places where such
Securities are to be surrendered for payment of the Redemption Price and accrued
interest (including Liquidated Damages, if any), if any, to, but excluding, the
Redemption Date, and

 

(7)           that no representation is made as to
the correctness or accuracy of the CUSIP number, if any, listed in such notice
or printed on the Securities.

 

In case of a partial
redemption, the notice shall specify the serial and CUSIP numbers (if any) and
the portions thereof called for redemption and that transfers and exchanges may
occur on or prior to the Redemption Date.

 

Notice of redemption of
Securities to be redeemed at the election of the Company shall be given by the
Company or, at the Company’s written request (which request shall be delivered
to the Trustee simultaneously with notification of the Redemption Date, as
applicable, pursuant to Section 11.3), by the Trustee in the name of and
at the expense of the Company. Notice of redemption of Securities to be
redeemed at the election of the Company received by the Trustee shall be given
by the Trustee to each Paying Agent in the name of and at the expense of the
Company.

 

SECTION 11.6                                            Deposit
of Redemption Price.

 

Not less than one
Business Day prior to the Redemption Date, the Company shall deposit with the
Trustee (or, if the Company is acting as its own Paying Agent, segregate and
hold in trust as provided in Section 10.3) an amount of money (which shall
be in immediately available funds on such Redemption Date) or, if applicable,
Common Stock sufficient to pay the Redemption Price of, and (except if the
Redemption Date shall be an Interest Payment Date) accrued interest (including
Liquidated Damages, if any) to the Redemption Date on, all the Securities which
are to be redeemed on that date other than any Securities called for redemption
on that date which have been converted prior to the date of such deposit; provided
that if such payment is made on the Redemption Date, it must be received by the
Trustee or Paying Agent, as the case may be, by 10:00 a.m. New York City time
on such date.

 

If any Security called
for redemption is converted, any money deposited with the Trustee or with any
Paying Agent or so segregated and held in trust for the redemption of such
Security shall (subject to any right of the Holder of such Security or any
Predecessor Security to receive interest as provided in the last paragraph of
Section 3.7) be paid to the Company on Company Request or, if then held by
the Company, shall be discharged from such trust.

 

SECTION 11.7                                            Securities
Payable on Redemption Date.

 

Notice of redemption
having been given as aforesaid, the Securities so to be redeemed shall, on the
Redemption Date, become due and payable at the Redemption Price therein
specified and from and after such date (unless the Company shall default in the
payment of the Redemption Price, including accrued interest) such Securities
shall cease to bear or accrue any

 

74

 

interest. Upon surrender of any Security for redemption in accordance
with said notice such Security shall be paid by the Company at the Redemption
Price together with accrued and unpaid interest (including Liquidated Damages,
if any) to but excluding the Redemption Date; provided, however,
that installments of interest on Securities whose Stated Maturity is on or
prior to the Redemption Date shall be payable to the Holders of such
Securities, or one or more Predecessor Securities, registered as such at the
close of business on the relevant Record Dates according to their terms and the
provisions of Section 3.7.

 

If the Company shall fail
to deposit the Redemption Price with the Trustee and any Security called for
redemption shall not be so paid upon surrender thereof for redemption, the
principal amount of, premium, if any, and, to the extent permitted by
applicable law, accrued interest on such Security shall, until paid, bear and
accrue interest from the Redemption Date at the rate borne by the Security and
such Security shall remain convertible until the Redemption Price of such
Security (or portion thereof, as the case may be) shall have been paid or duly
provided for.

 

Any Security that is to
be redeemed only in part shall be surrendered at the Corporate Trust Office or
an office or agency of the Company designated for that purpose pursuant to
Section 10.2 (with, if the Company or the Trustee so requires, due
endorsement by, or a written instrument of transfer in form satisfactory to the
Company and the Trustee duly executed by, the Holder thereof or his attorney
duly authorized in writing), and the Company shall execute, and the Trustee
shall authenticate and make available for delivery to the Holder of such
Security without service charge, a new Security or Securities, of any
authorized denomination as requested by such Holder, in aggregate principal
amount equal to and in exchange for the unredeemed portion of the principal of
the Security so surrendered.  Upon
redemption, interests in Global Securities shall be reduced in accordance with
the Applicable Procedures.

 

SECTION 11.8                                            Conversion
Arrangement on Call for Redemption.

 

In connection with any
redemption of Securities, the Company may arrange for the purchase and
conversion of any Securities by an agreement with one or more investment
bankers or other purchasers (the “Purchasers”) to purchase such
securities by paying to the Trustee in trust for the Holders, on or before the
Redemption Date, an amount not less than the applicable Redemption Price,
together with any interest accrued and unpaid to but excluding the Redemption
Date, of such Securities. Notwithstanding anything to the contrary contained in
this Article XI, the obligation of the Company to pay the Redemption
Price, together with any interest accrued and unpaid to but excluding the
Redemption Date, shall be deemed to be satisfied and discharged to the extent
such amount is so paid by such Purchasers. If such an agreement is entered into
(a copy of which shall be filed with the Trustee prior to the close of business
on the Business Day immediately prior to the Redemption Date), any Securities
called for redemption that are not duly surrendered for conversion by the
Holders thereof may, at the option of the Company, be deemed, to the fullest
extent permitted by law, and consistent with any agreement or agreements with
such Purchasers, to be acquired by such Purchasers from such Holders and (notwithstanding
anything to the contrary contained in Article XII) surrendered by such
Purchasers for conversion, all as of immediately prior to the close of business
on the Redemption Date (and the right to convert any such Securities shall be
extended through such time), subject to payment of the above amount as
aforesaid. At the written direction of the

 

75

 

Company, the Trustee shall hold and dispose of any such amount paid to
it by the Purchasers to the Holders in the same manner as it would monies
deposited with it by the Company for the redemption of Securities. Without the
Trustee’s prior written consent, no arrangement between the Company and such
Purchasers for the purchase and conversion of any Securities shall increase or
otherwise affect any of the powers, duties, responsibilities or obligations of
the Trustee as set forth in this Indenture, and the Company agrees to indemnify
the Trustee from, and hold it harmless against, any loss, liability or expense arising
out of or in connection with any such arrangement for the purchase and
conversion of any Securities between the Company and such Purchasers, including
the costs and expenses, including reasonable legal fees, incurred by the
Trustee in the defense of any claim or liability arising out of or in
connection with the exercise or performance of any of its powers, duties,
responsibilities or obligations under this Indenture.

 

ARTICLE XII

 

CONVERSION OF
SECURITIES

 

SECTION 12.1                                            Conversion
Privilege and Conversion Rate.

 

Subject to and upon
compliance with the provisions of this Article, at the option of the Holder
thereof, each U.S. $1,000 principal amount of Securities may be converted into
fully paid and nonassessable shares (calculated as to each conversion to the
nearest 1/100th of a share) of Common Stock of the Company at the Conversion
Rate, determined as hereinafter provided, in effect at the time of
conversion.  Such conversion right shall
commence on the initial issuance date of the Securities and expire at the close
of business on May 15, 2011 (unless such Securities have been previously
redeemed or repurchased), subject, in the case of conversion of any Global
Security, to any Applicable Procedures. In case a Security or portion thereof
is called for redemption at the election of the Company or the Holder thereof
exercises his right to require the Company to repurchase the Security, such
conversion right in respect of the Security, or portion thereof so called,
shall expire at the close of business on the Business Day immediately preceding
the Redemption Date or the Repurchase Date, as the case may be, unless the
Company defaults in making the payment due upon redemption or repurchase, as
the case may be (in each case subject as aforesaid to any Applicable Procedures
with respect to any Global Security).

 

The rate at which shares
of Common Stock shall be delivered upon conversion (herein called the “Conversion
Rate”) shall be initially 72.9129 shares of Common Stock for each
U.S.$1,000 principal amount of Securities. The Conversion Rate shall be
adjusted in certain instances as provided in this Article XII.

 

SECTION 12.2                                            Exercise
of Conversion Privilege.

 

In order to exercise the
conversion privilege, the Holder of any Security to be converted shall surrender
such Security, duly endorsed in blank, at any office or agency of the Company
maintained for that purpose pursuant to Section 10.2, accompanied by a
duly signed conversion notice substantially in the form set forth in
Section 2.4 stating that the Holder elects to convert such Security or, if
less than the entire principal amount thereof is to be converted, the portion
thereof to be converted. Each Security surrendered for conversion (in whole or
in part) during a

 

76

 

Record Date Period shall (except in the case of any Security or portion
thereof which has been called for redemption on a Redemption Date, or is
repurchasable on a Repurchase Date, occurring, in either case, during the
period from the close of business on any Regular Record Date next preceding any
Interest Payment Date to the close of business on the second Business Day
following such Interest Payment Date and, as a result, the right to convert
such Security would otherwise terminate in such period if not exercised) be
accompanied by payment in New York Clearing House funds or other funds
acceptable to the Company of an amount equal to the interest payable on such
Interest Payment Date on the principal amount of such Security (or part thereof,
as the case may be) being surrendered for conversion. The interest so payable
on such Interest Payment Date with respect to any Security (or portion thereof,
if applicable) that is surrendered for conversion during the Record Date Period
corresponding to such Interest Payment Date, shall be paid to the Holder of
such Security as of such Regular Record Date for such Interest Payment Date in
an amount equal to the interest that would have been payable on such Security
if such Security had been converted as of the close of business on such
Interest Payment Date.  Interest payable
on any Interest Payment Date in respect of any Security surrendered for
conversion on or after such Interest Payment Date shall be paid to the Holder
of such Security as of the Regular Record Date next preceding such Interest
Payment Date, notwithstanding the exercise of the right of conversion.  Except as provided in this paragraph and
subject to the last paragraph of Section 3.7, no cash payment or
adjustment shall be made upon any conversion on account of any interest accrued
from the Interest Payment Date next preceding the conversion date, in respect
of any Security (or part thereof, as the case may be) surrendered for
conversion, or on account of any dividends on the Common Stock issued upon
conversion. The Company’s delivery to the Holder of the number of shares of
Common Stock (and cash in lieu of fractions thereof, as provided in this
Indenture) into which a Security is convertible will be deemed to satisfy the
Company’s obligation to pay the principal amount of the Security.

 

Securities shall be
deemed to have been converted immediately prior to the close of business on the
day of surrender of such Securities for conversion in accordance with the
foregoing provisions and Section 2.2 hereof, and at such time the rights
of the Holders of such Securities as Holders shall cease, and the Person or
Persons entitled to receive the Common Stock issuable upon conversion shall be
treated for all purposes as the record holder or holders of such Common Stock
at such time. As promptly as practicable on or after the conversion date, the
Company shall issue and deliver to the Trustee, for delivery to the Conversion
Agent, for delivery to the Holder (unless a different Person is indicated on the
Conversion Notice), a certificate or certificates for the number of full shares
of Common Stock issuable upon conversion, together with payment in lieu of any
fraction of a share, as provided in Section 12.3.

 

All shares of Common
Stock delivered upon such conversion of Restricted Securities shall bear
restrictive legends substantially in the form of the legends required to be set
forth on the Restricted Securities pursuant to Section 3.5 and shall be
subject to the restrictions on transfer provided in such legends. Neither the
Trustee nor any agent maintained for the purpose of such conversion shall have
any responsibility for the inclusion or content of any such restrictive legends
on such Common Stock; provided, however, that the Trustee or
any agent maintained for the purpose of such conversion shall have provided, to
the Company or to the Company’s transfer agent for such Common Stock, prior to
or concurrently with a request to the Company to deliver such Common Stock,
written notice that the Securities delivered for conversion are Restricted
Securities.

 

77

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, at the expense of the Company,
a new Security or Securities of authorized denominations in an aggregate
principal amount equal to 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 Security to be converted is any integral multiple of U.S. $1,000
and the principal amount of such security to remain Outstanding after such
conversion is equal to U.S. $1,000 or any integral multiple of $1,000 in excess
thereof.

 

If shares of Common Stock
to be issued upon conversion of a Restricted Security, or Securities to be
issued upon conversion of a Restricted Security in part only, are to be
registered in a name other than that of the beneficial owner of such Restricted
Security, then such Holder must deliver to the Conversion Agent a Surrender
Certificate, dated the date of surrender of such Restricted Security and signed
by such beneficial owner, as to compliance with the restrictions on transfer
applicable to such Restricted Security. Neither the Trustee nor any Conversion
Agent, Registrar or Transfer Agent shall be required to register in a name
other than that of the beneficial owner, shares of Common Stock or Securities
issued upon conversion of any such Restricted Security not so accompanied by a
properly completed Surrender Certificate.

 

SECTION 12.3                                            Fractions
of 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 issuable upon conversion
thereof shall be computed on the basis of the aggregate principal amount of the
Securities (or specified portions thereof) so surrendered. Instead of any
fractional share of Common Stock that would otherwise be issuable upon conversion
of any Security or Securities (or specified portions thereof), the Company
shall calculate and pay a cash adjustment in respect of such fraction
(calculated to the nearest 1/100th of a share) in an amount equal to the same
fraction of the Closing Price Per Share at the close of business on the last
Trading Day prior to the day of conversion.

 

SECTION 12.4                                            Adjustment
of Conversion Rate.

 

The Conversion Rate shall
be subject to adjustments from time to time as follows:

 

(1)           In case the Company shall pay or make
a dividend or other distribution on shares of any class of capital stock
payable in shares of Common Stock, the Conversion Rate in effect at the opening
of business on the day following the date fixed for the determination of
shareholders entitled to receive such dividend or other distribution shall be
increased by dividing the Conversion Rate in effect immediately prior to such
date by a fraction of which the numerator shall be the number of shares of
Common Stock outstanding at the close of business on the date fixed for such
determination and the denominator shall be the sum of such number of shares and
the total number of shares constituting such dividend or other distribution,
such increase to become effective immediately after the opening of business on
the day following the date fixed for such determination. If, after any such
date fixed for determination, any dividend or distribution is not in fact paid,
the Conversion Rate shall be immediately readjusted, effective as of the date
the Board of Directors determines not to pay such dividend or distribution, to
the

 

78

 

Conversion Rate that would have been in effect if such determination
date had not been fixed. For the purposes of this paragraph (1), the number of
shares of Common Stock at any time outstanding shall not include shares held in
the treasury of the Company but shall include shares issuable in respect of
scrip certificates issued in lieu of fractions of shares of Common Stock. The Company
will not pay any dividend or make any distribution on shares of Common Stock
held in the treasury of the Company.

 

(2)           In case the Company shall issue
rights, options or warrants to all holders of its Common Stock entitling them
to subscribe for or purchase shares of Common Stock at a price per share less
than the current market price per share (determined as provided in paragraph
(8) of this Section 12.4) of the Common Stock on the date fixed for the
determination of stockholders entitled to receive such rights, options or
warrants (other than any rights, options or warrants that by their terms will
also be issued to any Holder upon conversion of a Security into shares of
Common Stock without any action required by the Company or any other Person), the
Conversion Rate in effect at the opening of business on the day following the
date fixed for such determination shall be increased by dividing the Conversion
Rate in effect immediately prior to such date by a fraction of which the
numerator shall be the number of shares of Common Stock outstanding at the
close of business on the date fixed for such determination plus the number of
shares of Common Stock that the aggregate of the offering price of the total
number of shares of Common Stock so offered for subscription or purchase would
purchase at such current market price and the denominator shall be the number
of shares of Common Stock outstanding at the close of business on the date
fixed for such determination plus the number of shares of Common Stock so
offered for subscription or purchase, such increase to become effective
immediately after the opening of business on the day following the date fixed
for such determination. If, after any such date fixed for determination, any
such rights, options or warrants are not in fact issued, or are not exercised
prior to the expiration thereof, the Conversion Rate shall be immediately
readjusted, effective as of the date such rights, options or warrants expire,
or the date the Board of Directors determines not to issue such rights, options
or warrants, to the Conversion Rate that would have been in effect if the
unexercised rights, options or warrants had never been granted or such
determination date had not been fixed, as the case may be.  For the purposes of this paragraph (2), the
number of shares of Common Stock at any time outstanding shall not include
shares held in the treasury of the Company but shall include shares issuable in
respect of scrip certificates issued in lieu of fractions of shares of Common Stock.  The Company will not issue any rights,
options or warrants in respect of shares of Common Stock held in the treasury
of the Company.

 

(3)           In case outstanding shares of Common
Stock shall be subdivided into a greater number of shares of Common Stock, the
Conversion Rate in effect at the opening of business on the day following the
day upon which such subdivision becomes effective shall be proportionately
increased, and, conversely, in case outstanding shares of Common Stock shall be
combined into a smaller number of shares of Common Stock, the Conversion Rate
in effect at the opening of business on the day following the day upon which
such combination becomes effective shall be proportionately reduced, such
increase or reduction, as the case may be, to become effective immediately
after the opening of business on the day following the day upon which such
subdivision or combination becomes effective.

 

79

 

(4)           In case the Company shall, by
dividend or otherwise, distribute to all holders of its Common Stock evidences
of its indebtedness, shares of any class of capital stock, or rights, options
or warrants to subscribe for or purchase shares of any class of capital stock
(other than any rights, options or warrants that by their terms will also be
issued to any Holder upon conversion of a Security into shares of Common Stock
without any action required by the Company or any other Person) or other
property (including cash or assets or securities, but excluding (i) any rights,
options or warrants referred to in paragraph (2) of this Section, (ii) any
dividend or distribution paid exclusively in cash as referred to in paragraphs
(5) or (6) of this Section 12.4, 
(iii) any dividend or distribution referred to in paragraph (1) of this
Section and (iv) any consideration distributed in any merger or
consolidation to which Section 12.11 applies), the Conversion Rate shall
be adjusted so that the same shall equal the rate determined by dividing the
Conversion Rate in effect immediately prior to the close of business on the
date fixed for the determination of stockholders entitled to receive such
distribution by a fraction of which the numerator shall be the current market
price per share (determined as provided in paragraph (8) of this
Section 12.4) of the Common Stock on the date fixed for such determination
less the then fair market value (as determined by the Board of Directors, whose
determination shall be conclusive and described in a Board Resolution filed
with the Trustee) of the portion of the assets, shares or evidences of
indebtedness or rights, options or warrants so distributed applicable to one
share of Common Stock and the denominator shall be such current market price
per share of the Common Stock, such adjustment to become effective immediately
prior to the opening of business on the day following the date fixed for the
determination of stockholders entitled to receive such distribution.  If after any such date fixed for determination,
any such distribution is not in fact made, the Conversion Rate shall be
immediately readjusted, effective as of the date that the Board of Directors
determines not to make such distribution, to the Conversion Rate that would
have been in effect if such determination date had not been fixed.

 

In the event that the
then fair market value (as so determined) of the portion of the evidences of
indebtedness, shares of any class of capital stock or other property so
distributed is equal to or greater than the current market price per share of
the Common Stock on such date, in lieu of the foregoing adjustment, adequate
provision shall be made so that each Holder of a Security shall have the right
to receive upon conversion the amount of such evidences of indebtedness, shares
of any class of capital stock or other property such Holder would have received
had such Holder converted each Security on such date.

 

(5)           In case the Company shall, by
dividend or otherwise, distribute to all or substantially all holders of its
Common Stock cash (excluding cash distributed upon a merger or consolidation to
which Section 12.11 applies), then, immediately after the close of
business on the date for determination of holders of shares of Common Stock
entitled to receive such distribution, the Conversion Rate shall be adjusted so
that the same shall equal the rate determined by multiplying the Conversion
Rate in effect immediately prior to the close of business on the date fixed for
determination of the stockholders entitled to receive such distribution by a fraction
(i) the numerator of which shall be equal to the current market price per share
(determined as provided in paragraph (8) of this Section) of the Common Stock
on the date fixed for such determination and (ii) the denominator of which
shall be equal to the current market price per share (determined as provided in
paragraph (8) of this Section 12.4) of the

 

80

 

Common Stock on such date fixed for determination less the amount of
the cash distribution per share.

 

(6)           In case a tender offer made by the
Company or any Subsidiary for all or any portion of the Common Stock shall
expire and such tender offer (as amended upon the expiration thereof) shall
require the payment to stockholders (based on the acceptance (up to any maximum
specified in the terms of the tender offer) of Purchased Shares (as defined
below)) of an aggregate consideration having a fair market value (as determined
by the Board of Directors, whose determination shall be conclusive and described
in a Board Resolution) that combined together with (I) the aggregate of the
cash plus the fair market value (as determined by the Board of Directors, whose
determination shall be conclusive and described in a Board Resolution), as of
the expiration of such tender offer, of any non-cash consideration payable in
respect of any other tender offer by the Company or any Subsidiary for all or
any portion of the Common Stock expiring within the 365-day period preceding
the expiration of such tender offer and in respect of which no adjustment
pursuant to this paragraph (6) has been made and (II) the aggregate amount of
any cash distributions to all holders of the Common Stock within the 365-day
period preceding the expiration of such tender offer and in respect of which no
adjustment pursuant to paragraph (5) of this Section has been made (the
“combined tender and cash amount”) exceeds 10% of the product of the current
market price per share of the Common Stock (determined as provided in paragraph
(8) of this Section 12.4) as of the last time (the “Expiration Time”)
tenders could have been made pursuant to such tender offer (as it may be
amended) times the number of shares of Common Stock outstanding (including any
tendered shares) as of the Expiration Time, then, and in each such case
immediately prior to the opening of business on the day after the date of the
Expiration Time, the Conversion Rate shall be adjusted so that the same shall
equal the rate determined by dividing the Conversion Rate immediately prior to
the close of business on the date of the Expiration Time by a fraction (i) the
numerator of which shall be equal to (A) the product of (I) the current market
price per share of the Common Stock (determined as provided in paragraph (8) of
this Section 12.4) on the date of the Expiration Time multiplied by (II)
the number of shares of Common Stock outstanding (including any tendered
shares) on the Expiration Time less (B) the combined tender and cash amount,
and (ii) the denominator of which shall be equal to the product of (A) the
current market price per share of the Common Stock (determined as provided in
paragraph (8) of this Section 12.4) on the date of the Expiration Time
multiplied by (B) the number of shares of Common Stock outstanding (including
any tendered shares) as of the Expiration Time less the number of all shares
validly tendered and not withdrawn as of the Expiration Time (the shares deemed
so accepted up to any such maximum, being referred to as the “Purchased
Shares”).

 

(7)           The reclassification of Common Stock
into securities other than Common Stock (other than any reclassification upon a
consolidation or merger to which Section 12.11 applies) shall be deemed to
involve (a) a distribution of such securities other than Common Stock to all
holders of Common Stock (and the effective date of such reclassification shall
be deemed to be “the date fixed for the determination of stockholders entitled
to receive such distribution” and “the date fixed for such determination”
within the meaning of paragraph (4) of this Section), and (b) a subdivision or
combination, as the case may be, of the number of shares of Common Stock
outstanding immediately prior to such reclassification into the number of
shares of Common Stock outstanding immediately thereafter (and the effective
date of such reclassification shall be deemed to be “the day upon which such
subdivision becomes effective” or “the day upon which

 

81

 

such combination becomes effective,” as the case may be, and “the day
upon which such subdivision or combination becomes effective” within the
meaning of paragraph (3) of this Section 12.4).

 

(8)           For the purpose of any computation
under paragraphs (2), (4), (5) or (6) of this Section 12.4, the current
market price per share of Common Stock on any date shall be calculated by the
Company and be the average of the daily Closing Price Per Share for the five
consecutive Trading Days selected by the Company commencing not more than 10
Trading Days before, and ending not later than the earlier of the day in
question and the day before the “ex date” with respect to the issuance or
distribution requiring such computation. For purposes of this paragraph, the
term “‘ex date,” when used with respect to any issuance or distribution, means
the first date on which the Common Stock trades regular way in the applicable
securities market or on the applicable securities exchange without the right to
receive such issuance or distribution.

 

(9)           No adjustment in the Conversion Rate
shall be required unless such adjustment (plus any adjustments not previously
made by reason of this paragraph (9)) would require an increase or decrease of
at least one percent in such rate; provided, however, that any
adjustments which by reason of this paragraph (9) are not required to be made
shall be carried forward and taken into account in any subsequent adjustment.
All calculations under this Article shall be made to the nearest cent or
to the nearest one-hundredth of a share, as the case may be.

 

(10)         The Company may make such increases in
the Conversion Rate, for the remaining term of the Securities or any shorter
term, in addition to those required by paragraphs (1), (2), (3), (4), (5) and
(6) of this Section 12.4, as it considers to be advisable in order to
avoid or diminish any income tax to any holders of shares of Common Stock
resulting from any dividend or distribution of stock or issuance of rights or
warrants to purchase or subscribe for stock or from any event treated as such
for income tax purposes. The Company shall have the power to resolve any
ambiguity or correct any error in this paragraph (10) and its actions in so
doing shall, absent manifest error, be final and conclusive.

 

(11)         Notwithstanding the foregoing
provisions of this Section, no adjustment of the Conversion Rate shall be
required to be made (a) upon the issuance of shares of Common Stock pursuant to
any present or future plan for the reinvestment of dividends, (b) upon a change
in the par value of the Common Stock, or (c) because of a tender or exchange
offer of the character described in Rule 13e-4(h)(5) under the Exchange Act or
any successor rule thereto.

 

(12)         To the extent permitted by applicable
law, the Company from time to time may increase the Conversion Rate by any
amount for any period of time if the period is at least twenty (20) days, the
increase is irrevocable during such period, and the Board of Directors shall
have made a determination that such increase would be in the best interests of
the Company, which determination shall be conclusive; provided, however,
that no such increase shall be taken into account for purposes of determining
(i) whether the Closing Price Per Share of the Common Stock equals or exceeds
105% of the Conversion Price in connection with an event which would otherwise
be a Change of Control pursuant to Section 13.4 or (ii) whether the
Closing Price Per Share of the Common Stock exceeds 150% of the Conversion
Price in connection with redemption of the Securities in accordance with the
provisions in the form of Security set forth in

 

82

 

Section 2.2 hereof. 
Whenever the Conversion Rate is increased pursuant to the preceding
sentence, the Company shall give notice of the increase to the Holders in the
manner provided in Section 1.6 at least fifteen (15) days prior to the
date the increased Conversion Rate takes effect, and such notice shall state
the increased Conversion Rate and the period during which it will be in effect.

 

(13)         If Holders of the Securities exercise
the right of conversion after the date the rights issued under the Company’s
rights agreement, dated as of May 23, 2001, separate from the underlying Common
Stock and are therefore not entitled to receive the common stock rights that
would otherwise be attributable to the shares of Common Stock received upon
conversion, the Conversion Rate will be adjusted as though such rights are
being distributed to holders of Common Stock on the date of such separation,  If such an adjustment is made and such
rights are later redeemed, invalidated or terminated, then a corresponding
reversing adjustment will be made to the Conversion Rate on an equitable basis.

 

(14)         Notwithstanding the foregoing, in no
event will the Conversion Rate exceed 94.7876 (the “Maximum Conversion Rate”)
as a result of an adjustment pursuant to paragraph (5) or (6) of this
Section 12.4.

 

SECTION 12.5                                            Notice
of Adjustments of Conversion Rate.

 

Whenever the Conversion
Rate is adjusted as herein provided:

 

(1)           the Company shall compute the
adjusted Conversion Rate in accordance with Section 12.4 and shall prepare
an Officers’ Certificate setting forth the adjusted Conversion Rate and showing
in reasonable detail the facts upon which such adjustment is based, and such certificate
shall promptly be filed with the Trustee and with each Conversion Agent; and

 

(2)           upon each such adjustment, a notice
stating that the Conversion Rate has been adjusted and setting forth the
adjusted Conversion Rate shall be required, and as soon as practicable after it
is required, such notice shall be provided by the Company to all Holders in
accordance with Section 1.6.

 

Neither the Trustee nor
any Conversion Agent shall be under any duty or responsibility with respect to
any such certificate or the information and calculations contained therein,
except to exhibit the same to any Holder of Securities desiring inspection
thereof at its office during normal business hours.

 

SECTION 12.6                                            Notice
of Certain Corporate Action.

 

In case:

 

(1)           the Company shall declare a dividend
(or any other distribution) on its Common Stock payable (i) otherwise than
exclusively in cash or (ii) exclusively in cash in an amount that would require
any adjustment pursuant to Section 12.4; or

 

83

 

(2)           the Company shall authorize the
granting to all or substantially all of the holders of its Common Stock of
rights, options or warrants to subscribe for or purchase any shares of capital
stock of any class or of any other rights; or

 

(3)           of any reclassification of the Common
Stock, or of any consolidation, merger or share exchange to which the Company
is a party and for which approval of any stockholders of the Company is
required, or of the conveyance, sale, transfer or lease of all or substantially
all of the assets of the Company; or

 

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

 

then the Company shall
cause to be filed at each office or agency maintained for the purpose of
conversion of Securities pursuant to Section 10.2, and shall cause to be
provided to all Holders in accordance with Section 1.6, at least 20 days
(or 10 days in any case specified in clause (1) or (2) above and 30 days for
clause (3) above) prior to the applicable record or effective date hereinafter
specified, a notice stating (x) the date on which a record is to be taken for
the purpose of such dividend, distribution, rights, options or warrants, or, if
a record is not to be taken, the date as of which the holders of Common Stock
of record to be entitled to such dividend, distribution, rights, options or
warrants are to be determined or (y) the date on which such reclassification,
consolidation, merger, conveyance, transfer, sale, lease, dissolution,
liquidation or winding up is expected to become effective, and the date as of
which it is expected that holders of Common Stock of record shall be entitled
to exchange their shares of Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger, conveyance,
transfer, sale, lease, dissolution, liquidation or winding up. Neither the
failure to give such notice or the notice referred to in the following
paragraph nor any defect therein shall affect the legality or validity of the
proceedings described in clauses (1) through (4) of this Section 12.6. If
at the time the Trustee shall not be the Conversion Agent, a copy of such
notice shall also forthwith be filed by the Company with the Trustee.

 

The Company shall cause
to be filed at the Corporate Trust Office and each office or agency maintained
for the purpose of conversion of Securities pursuant to Section 10.2, and
shall cause to be provided to all Holders in accordance with Section 1.6,
notice of any tender offer by the Company or any Subsidiary for all or any
portion of the Common Stock at or about the time that such notice of tender
offer is provided to the public generally.

 

SECTION 12.7                                            Company
to Reserve Common Stock.

 

The Company shall at all
times reserve and keep available, free from preemptive rights, out of its
authorized but unissued Common Stock, for the purpose of effecting the
conversion of Securities, the full number of shares of Common Stock then
issuable upon the conversion of all Outstanding Securities.

 

SECTION 12.8                                            Taxes
on Conversions.

 

Except as provided in the
next sentence, the Company will pay all stamp taxes and other duties that may
be payable in respect of the issue or delivery of shares of Common Stock on
conversion of Securities pursuant hereto. The Company shall not, however, be
required to pay

 

84

 

any tax or duty that may be payable in respect of (i) income of the
Holder, or (ii) 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
and until 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.

 

SECTION 12.9                                            Covenant
as to Common Stock.

 

The Company agrees that
all shares of Common Stock that may be delivered upon conversion of Securities,
upon such delivery, will have been duly authorized and validly issued and will
be fully paid and nonassessable and, except as provided in Section 12.8,
the Company will pay all taxes, liens and charges with respect to the issue
thereof.

 

SECTION 12.10                                      Cancellation
of Converted Securities.

 

All Securities delivered
for conversion shall be delivered to the Trustee or its agent to be canceled by
or at the direction of the Trustee, which shall dispose of the same as provided
in Section 3.9.

 

SECTION 12.11                                      Provision
in Case of Consolidation, Merger or Sale of Assets.

 

In case of any
consolidation or merger of the Company with or into any other Person or any
merger of another Person with or into the Company (other than a merger that
does not result in any reclassification, conversion, exchange or cancellation
of outstanding shares of Common Stock of the Company) or any conveyance, sale,
transfer or lease of all or substantially all of the assets of the Company
(other than a sale of all or substantially all of the assets of the Company
that does not result in any reclassification, conversion, exchange or
cancellation of outstanding shares of Common Stock of the Company), the Person
formed by such consolidation or resulting from such merger or which acquires
such assets, as the case may be, shall execute and deliver to the Trustee a
supplemental indenture providing that the Holder of each Security then
Outstanding shall have the right thereafter, during the period such Security
shall be convertible as specified in Section 12.1, to convert such Security
only into the kind and amount of securities, cash and other property receivable
upon such consolidation, merger, conveyance, sale, transfer or lease by a
holder of the number of shares of Common Stock of the Company into which such
Security might have been converted immediately prior to such consolidation,
merger, conveyance, sale, transfer or lease, assuming such holder of Common
Stock of the Company (i) is not (A) a Person with which the Company
consolidated or merged with or into or which merged into or with the Company or
to which such conveyance, sale, transfer or lease was made, as the case may be
(a “Constituent Person”), or (B) an Affiliate of a Constituent Person
and (ii) failed to exercise his rights of election, if any, as to the kind or amount
of securities, cash and other property receivable upon such consolidation,
merger, conveyance, sale, transfer or lease (provided that if the kind or
amount of securities, cash and other property receivable upon such
consolidation, merger, conveyance, sale, transfer or lease is not the same for
each share of Common Stock of the Company held immediately prior to such
consolidation, merger, conveyance, sale, transfer or lease by others than a
Constituent Person or an Affiliate thereof and in respect of which such rights
of election shall not have been exercised (“Non-electing Share”),

 

85

 

then for the purpose of this Section 12.11 the kind and amount of
securities, cash and other property receivable upon such consolidation, merger,
conveyance, sale, transfer or lease by the holders of each Non-electing Share
shall be deemed to be the kind and amount so receivable per share by a
plurality of the Non-electing Shares). The Company agrees that if the Company (or
the Person formed by such consolidation or into or with which the Company is
merged or the Person to which the properties and assets of the Company are so
conveyed, transferred, sold or leased) shall, after giving effect to such
transaction, be a subsidiary of the Person that issues the securities
receivable upon such transaction by holders of shares of Common Stock of the
Company, the supplemental indenture shall provide that such Person fully and
unconditionally guarantees the due and punctual payment of the principal of,
premium, if any, and interest (including Liquidated Damages, if any) on all of
the Securities as applicable, and the performance or observance of every
covenant of this Indenture on the part of the Company to be performed or
observed. In each case, such supplemental indenture shall provide for
adjustments that, for events subsequent to the effective date of such
supplemental indenture, shall be as nearly equivalent as may be practicable to
the adjustments provided for in this Article. The above provisions of this
Section 12.11 shall similarly apply to successive consolidations, mergers,
conveyances, sales, transfers or leases. 
Notice of the execution of such a supplemental indenture shall be given
by the Company to the Holder of each Security as provided in Section 1.6
promptly upon such execution.

 

Neither the Trustee nor
any Conversion Agent shall be under any responsibility to determine the
correctness of any provisions contained in any such supplemental indenture
relating either to the kind or amount of shares of stock or other securities or
property or cash receivable by Holders of Securities upon the conversion of
their Securities after any such consolidation, merger, conveyance, transfer,
sale or lease or to any such adjustment, but may accept as conclusive evidence
of the correctness of any such provisions, and shall be protected in relying
upon, an Officers’ Certificate or an Opinion of Counsel with respect thereto,
which the Company shall cause to be furnished to the Trustee upon request.

 

SECTION 12.12                                      Rights
Issued in Respect of Common Stock.

 

Rights or warrants
distributed by the Company to all holders of Common Stock entitling the holders
thereof to subscribe for or purchase shares of the Company’s capital stock
(either initially or under certain circumstances), which rights or warrants,
until the occurrence of a specified event or events (“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 not be deemed
distributed for purposes of Section 12.4(2) until the occurrence of the
earliest Trigger Event.  In addition, in
the event of any distribution of rights or warrants, or any Trigger Event with
respect thereto, that shall have resulted in an adjustment to the Conversion
Rate under Section 12.4(2), (1) in the case of any such rights or warrants
that shall all have been redeemed or repurchased without exercise by any
holders thereof, the Conversion Rate shall be

 

86

 

readjusted upon such
final redemption or repurchase to give effect to such distribution or Trigger
Event, as the case may be, as though it were a cash distribution, equal to the
per share redemption or repurchase price received by a holder of Common Stock
with respect to such rights or warrants (assuming such holder had retained such
rights or warrants), made to all holders of Common Stock as of the date of such
redemption or repurchase, and (2) in the case of any such rights or warrants
all of which shall have expired without exercise by any holder thereof, the
Conversion Price shall be readjusted as if such issuance had not occurred.

 

SECTION 12.13                                      Responsibility
of Trustee for Conversion Provisions.

 

The Trustee, subject to
the provisions of Section 6.1, and any Conversion Agent shall not at any
time be under any duty or responsibility to any Holder of Securities to
determine whether any facts exist which may require any adjustment of the
Conversion Rate, or with respect to the nature or extent of any such adjustment
when made, or with respect to the method employed, herein or in any
supplemental indenture provided to be employed, in making the same, or whether
a supplemental indenture need be entered into or to recalculate or verify the
content of any certificate filed with it by the Company pursuant to the terms
of this Article XII. Neither the Trustee, subject to the provisions of
Section 6.1, nor any Conversion Agent shall be accountable with respect to
the validity or value (or the kind or amount) of any Common Stock, or of any
other securities or property or cash, which may at any time be issued or
delivered upon the conversion of any Security; and it or they do not make any
representation with respect thereto. Neither the Trustee, subject to the
provisions of Section 6.1, nor any Conversion Agent shall be responsible
for any failure of the Company to make or calculate any cash payment or to
issue, transfer or deliver any shares of Common Stock or share certificates or
other securities or property or cash upon the surrender of any Security for the
purpose of conversion; and the Trustee, subject to the provisions of
Section 6.1, and any Conversion Agent shall not be responsible for any
failure of the Company to comply with any of the covenants of the Company
contained in this Article.

 

ARTICLE XIII

 

REPURCHASE OF
SECURITIES AT THE OPTION OF THE

HOLDER UPON A CHANGE IN CONTROL

 

SECTION 13.1                                            Right
to Require Repurchase.

 

In the event that a
Change in Control (as hereinafter defined) shall occur, then each Holder shall
have the right, at the Holder’s option, but subject to the provisions of
Section 13.2, to require the Company to repurchase, and upon the exercise
of such right the Company shall repurchase, all of such Holder’s Securities not
theretofore called for redemption, or any portion of the principal amount
thereof that is equal to U.S. $1,000 or any integral multiple of U.S. $1,000 in
excess thereof (provided that no single Security may be repurchased in part
unless the portion of the principal amount of such Security to be Outstanding
after such repurchase is equal to U.S. $1,000 or integral multiples of U.S.
$1,000 in excess thereof), on the date (the “Repurchase Date”) that is
45 days after the date of the Company Notice (as defined in Section 13.3)
(or if such date is not a Business Day, then the next succeeding Business Day)
at a purchase price equal to 100% of the principal amount of the Securities to
be repurchased plus

 

87

 

interest accrued but unpaid to, but excluding, the Repurchase Date (the
“Repurchase Price”); provided, however, that installments
of interest on Securities whose Stated Maturity is on or prior to the
Repurchase Date shall be payable to the Holders of such Securities, or one or
more Predecessor Securities, registered as such on the relevant Record Date
according to their terms and the provisions of Section 3.7. Such right to
require the repurchase of the Securities shall not continue after a discharge
of the Company from its obligations with respect to the Securities in
accordance with Article IV, unless a Change in Control shall have occurred
prior to such discharge. At the option of the Company, the Repurchase Price may
be paid in cash or, subject to the fulfillment by the Company of the conditions
set forth Section 13.2, by delivery of shares of Common Stock having a
fair market value equal to the Repurchase Price (less any cash payments), or a
combination of cash and Common Stock. Whenever in this Indenture (including
Sections 2.2, 3.1, 5.1(1) and 5.8) there is a reference, in any context, to the
principal of any Security as of any time, such reference shall be deemed to
include reference to the Repurchase Price payable in respect of such Security
to the extent that such Repurchase Price is, was or would be so payable at such
time, and express mention of the Repurchase Price in any provision of this
Indenture shall not be construed as excluding the Repurchase Price in those
provisions of this Indenture when such express mention is not made.

 

SECTION 13.2                                            Conditions
to the Company’s Election to Pay the Repurchase Price in Common Stock.

 

The Company may, at its
option, pay the Repurchase Price in cash, in Common Stock or a combination
thereof.  To the extent the Repurchase
Price is paid in Common Stock, the Company may elect to pay such amount by
delivery of shares of Common Stock pursuant to Section 13.1 if and only if
the following conditions shall have been satisfied:

 

(1)           The shares of Common Stock
deliverable in payment of the Repurchase Price shall have a fair market value
as of the Repurchase Date of not less than the Repurchase Price. For purposes
of Section 13.1 and this Section 13.2, the fair market value of
shares of Common Stock shall be determined by the Company and shall be equal to
95% of the average of the Closing Price Per Share of the Common Stock for the
five consecutive Trading Days ending on the third Trading Day prior to the
Repurchase Date;

 

(2)           The Repurchase Price shall be paid
only in cash in the event any shares of Common Stock to be issued upon
repurchase of Securities hereunder (i) require registration under any Federal
securities law before such shares may be freely transferable without being
subject to any transfer restrictions under the Securities Act upon repurchase
and if such registration is not completed or does not become effective prior to
the Repurchase Date, and/or (ii) require registration with or approval of any
governmental authority under any state law or any other Federal law before such
shares may be validly issued or delivered upon repurchase and if such
registration is not completed or does not become effective or such approval is
not obtained prior to the Repurchase Date. 
Prior to paying all or any portion of the Repurchase Price in Common
Stock, the Company shall certify to the Trustee in an Officers’ Certificate
that all of the conditions for paying the Repurchase Price in shares of Common
Stock are satisfied and shall deliver to the Trustee an opinion of counsel to
the Company to the effect that the shares of Common Stock to be issued upon
repurchase (other than any shares to be issued to any Affiliate of the Company)
are not subject to any restrictions on transfer under the Securities Act;

 

88

 

(3)           Payment of the Repurchase Price may
not be made in Common Stock unless such stock is, or shall have been, listed or
approved for quotation on The Nasdaq National Market or listed or approved for
quotation on a national securities exchange or quotation system, in either
case, prior to the Repurchase Date; and

 

(4)           All shares of Common Stock that may
be issued upon repurchase of Securities will be issued out of the Company’s
authorized but unissued Common Stock (or, in the event of a merger,
consolidation or other similar transaction involving the Company that is
otherwise permitted under the terms of this Indenture in which the Company is
not the surviving entity, out of the authorized but unissued Common Stock of
the surviving entity or its direct or indirect parent entity) and will, upon
issue, be duly and validly issued and fully paid and non-assessable and free of
any preemptive or similar rights.

 

If all of the conditions
set forth in this Section 13.2 are not satisfied in accordance with the
terms thereof, the Repurchase Price shall be paid by the Company only in cash.

 

SECTION 13.3                                            Notices;
Method of Exercising Repurchase Right, Etc.

 

(1)           Unless the Company shall have
theretofore called for redemption all of the Outstanding Securities, on or
before the 30th day after the occurrence of a Change in Control, the Company
or, at the request (and expense) of the Company given to the Trustee on or
before the 15th day after such occurrence, the Trustee, shall give to all
Holders of Securities, in the manner provided in Section 1.6, notice (the
“Company Notice”) of the occurrence of the Change of Control and of the
repurchase right set forth herein arising as a result thereof and the Company
shall issue a Press Release including all relevant information required to be
included in such Company Notice.  The
Company shall also deliver a copy of such Company Notice to the Trustee.

 

Each Company Notice shall
state:

 

(i)            the Repurchase Date,

 

(ii)           the date by which the repurchase
right must be exercised,

 

(iii)          the Repurchase Price, and whether the
Repurchase Price shall be paid by the Company in cash or by delivery of shares
of Common Stock or a combination thereof (and the applicable ratio of cash and
Common Stock),

 

(iv)          a description of the procedure that a
Holder must follow to exercise a repurchase right, and the place or places
where such Securities are to be surrendered for payment of the Repurchase Price
and accrued interest (including Liquidated Damages, if any), if any to the
Repurchase Date,

 

(v)           that on the Repurchase Date the
Repurchase Price, and accrued interest (including Liquidated Damages, if any),
if any to the Repurchase Date, will become due and payable upon each such
Security designated by the Holder to be repurchased, and that interest thereon
shall cease to accrue on and after said date,

 

89

 

(vi)          the Conversion Rate then in effect,
the date on which the right to convert the principal amount of the Securities
to be repurchased will terminate and the place or places where such Securities
may be surrendered for conversion,

 

(vii)         the place or places that the Security
certificate with the Election of Holder to Require Repurchase as specified in
Section 2.2 shall be delivered, and if the Security is a Restricted
Securities certificate the place or places that the Surrender Certificate
required by Section 13.3(9) shall be delivered, and

 

(viii)        the CUSIP number or numbers of such Securities.

 

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

 

If any of the foregoing
provisions or other provisions of this Article XIII are inconsistent with
applicable law, such law shall govern.

 

(2)           To exercise a repurchase right, a
Holder shall deliver to the Trustee on or before the 30th day after the date of
the Company Notice (i) irrevocable written notice of the Holder’s exercise of
such right, which notice shall set forth the name of the Holder, the principal
amount of the Securities to be repurchased (and, if any Security is to
repurchased in part, the serial number thereof, the portion of the principal
amount thereof to be repurchased and the name of the Person in which the
portion thereof to remain Outstanding after such repurchase is to be
registered) and a statement that an election to exercise the repurchase right
is being made thereby, and, in the event that any portion of the Repurchase
Price shall be paid in shares of Common Stock, the name or names (with
addresses) in which the certificate or certificates for shares of Common Stock
shall be issued, and (ii) the Securities with respect to which the repurchase
right is being exercised. Such written notice shall be irrevocable, except that
the right of the Holder to convert the Securities with respect to which the
repurchase right is being exercised shall continue until the close of business
on the Business Day immediately preceding the Repurchase Date.

 

(3)           In the event a repurchase right shall
be exercised in accordance with the terms hereof, the Company shall pay or
cause to be paid to the Trustee the Repurchase Price in cash or shares of
Common Stock or a combination thereof, as provided above, for payment to the
Holder on the Repurchase Date or, if shares of Common Stock are to be paid, on
the date that is 45 days after the date of the Company’s Notice, together with
accrued and unpaid interest to the Repurchase Date payable with respect to the
Securities as to which the repurchase right has been exercised; provided,
however,
that installments of interest that mature on or prior to the Repurchase Date
shall be payable in cash to the Holders of such Securities, or one or more
Predecessor Securities, registered as such at the close of business on the
relevant Regular Record Date.

 

(4)           If any Security (or portion thereof)
surrendered for repurchase shall not be so paid on the Repurchase Date, the
principal amount of such Security (or portion thereof, as the case may be)
shall, until paid, bear interest to the extent permitted by applicable law from
the

 

90

 

Repurchase Date at the rate then in effect per annum, and each Security
shall remain convertible into Common Stock until the principal of such Security
(or portion thereof, as the case may be) shall have been paid or duly provided
for.

 

(5)           Any Security that is to be
repurchased only in part shall be surrendered to the Trustee (with, if the
Company or the Trustee so requires, due endorsement by, or a written instrument
of transfer in form satisfactory to the Company and the Trustee duly executed
by, the Holder thereof or his attorney duly authorized in writing), and the
Company shall execute, and the Trustee shall authenticate and make available
for delivery to the Holder of such Security without service charge, a new
Security or Securities, containing identical terms and conditions, each in an
authorized denomination in aggregate principal amount equal to and in exchange
for the unrepurchased portion of the principal of the Security so surrendered.

 

(6)           Any issuance of shares of Common
Stock in respect of any portion of the Repurchase Price shall be deemed to have
been effected immediately prior to the close of business on the Repurchase Date
and the Person or Persons in whose name or names any certificate or
certificates for shares of Common Stock shall be issuable upon such repurchase
shall be deemed to have become on the Repurchase Date the holder or holders of
record of the shares represented thereby; provided, however, that any surrender
for repurchase on a date when the stock transfer books of the Company shall be
closed shall constitute the Person or Persons in whose name or names the
certificate or certificates for such shares are to be issued as the record
holder or holders thereof for all purposes at the opening of business on the
next succeeding day on which such stock transfer books are open. No payment or
adjustment shall be made for dividends or distributions on any Common Stock
issued upon repurchase of any Security declared prior to the Repurchase Date.

 

(7)           No fractions of shares shall be
issued upon repurchase of Securities. If more than one Security shall be
repurchased from the same Holder and any portion of the Repurchase Price shall
be payable in shares of Common Stock, the number of full shares that shall be
issuable upon such repurchase shall be computed on the basis of the aggregate
principal amount of the Securities so repurchased. Instead of any fractional
share of Common Stock that would otherwise be issuable on the repurchase of any
Security or Securities, the Company will deliver to the applicable Holder its
check for the current market value of such fractional share. The current market
value of a fraction of a share is determined by multiplying the current market
price of a full share by the fraction, and rounding the result to the nearest
cent. For purposes of this Section, the current market price of a share of
Common Stock is the Closing Price Per Share of the Common Stock on the Trading
Day immediately preceding the Repurchase Date.

 

(8)           Any issuance and delivery of
certificates for shares of Common Stock on repurchase of Securities shall be
made without charge to the Holder of Securities being repurchased for such
certificates or for any tax or duty in respect of the issuance or delivery of
such certificates or the securities represented thereby; provided, however,
that the Company shall not be required to pay any tax or duty that may be
payable in respect of (i) income of the Holder or (ii) any transfer involved in
the issuance or delivery of certificates for shares of Common Stock in a name
other than that of the Holder of the Securities being repurchased, and no such
issuance or delivery shall be made unless and until the Person requesting such
issuance or

 

91

 

delivery 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.

 

(9)           If shares of Common Stock to be
delivered upon repurchase of a Security are to be registered in a name other
than that of the beneficial owner of such Security, then such Holder must
deliver to the Trustee a Surrender Certificate, dated the date of surrender of
such Restricted Security and signed by such beneficial owner, as to compliance
with the restrictions on transfer applicable to such Restricted Security.
Neither the Trustee nor any Registrar or Transfer Agent or other agents shall
be required to register in a name other than that of the beneficial owner
shares of Common Stock issued upon repurchase of any such Restricted Security
not so accompanied by a properly completed Surrender Certificate.

 

(10)         All Securities delivered for repurchase
shall be delivered to the Trustee to be canceled at the direction of the
Trustee, which shall dispose of the same as provided in Section 3.9.

 

SECTION 13.4                                            Certain
Definitions.

 

For purposes of this
Article XIII,

 

(1)           the term “beneficial owner” shall be
determined in accordance with Rule 13d-3, as in effect on the date of the
original execution of this Indenture, promulgated by the Commission pursuant to
the Exchange Act;

 

(2)           a “Change in Control” shall be
deemed to have occurred at the time, after the original issuance of the
Securities, of:

 

(i)            the acquisition by any Person
(including any syndicate or group deemed to be a “person” under
Section 13(d)(3) of the Exchange Act) of beneficial ownership, directly or
indirectly, through a purchase, merger or other acquisition transaction or
series of transactions, of shares of capital stock of the Company entitling
such person to exercise 50% or more of the total voting power of all shares of
capital stock of the Company entitled to vote generally in the elections of
directors, other than any such acquisition by the Company, any Subsidiary of
the Company or any employee benefit plan of the Company; or

 

(ii)           any consolidation of the Company
with, or merger of the Company with or into, any other Person, any merger of
another Person with or into the Company, or any conveyance, sale, transfer or
lease or disposal otherwise of all or substantially all of the assets of the
Company to another Person (other than (a) any such transaction (x) that does
not result in any reclassification, conversion, exchange or cancellation of
outstanding shares of capital stock of the Company and (y) pursuant to which
the holders of 50% or more of the total voting power of all shares of the
Company’s capital stock entitled to vote generally in the election of directors
immediately prior to such transaction have the entitlement to exercise,
directly or indirectly, 50% or more of the total voting power of all shares of
capital stock entitled to vote generally in the election of directors of the
continuing or surviving entity immediately after such transaction or (b) any
transaction which is effected solely to change the jurisdiction of incorporation
of the Company and results in a reclassification, conversion or exchange of
outstanding shares of Common Stock solely into shares of common stock of the
surviving entity);

 

92

 

(iii)          provided, however, that a Change in
Control shall not be deemed to have occurred if (I) the Closing Price Per Share
of the Common Stock for any five Trading Days within the period of 10
consecutive Trading Days ending immediately after the later of the date of the
Change in Control or the date of the public announcement of the Change in
Control (in the case of a Change in Control under clause (i) above) or the
period of 10 consecutive Trading Days ending immediately before the Change in
Control (in the case of a Change in Control under clause (ii) above) shall, in
the case of each of such five Trading Days, equal or exceed 105% of the
Conversion Price of the Securities in effect on each of such five Trading Days
or (II) all of the consideration (excluding cash payments for fractional shares
and cash payments made pursuant to dissenters’ appraisal rights) in a merger or
consolidation otherwise constituting a Change of Control under clause (i)
and/or clause (ii) above consists of shares of common stock, depository
receipts or other certificates representing common equity interests traded on a
national securities exchange or quoted on The Nasdaq National Market (or will
be so traded or quoted immediately following such merger or consolidation) and
as a result of such merger or consolidation the Securities become convertible
solely into such common stock, depository receipts or other certificates
representing common equity interests;

 

(3)           the term “Conversion Price”
shall equal U.S.$1,000 divided by the Conversion Rate (rounded to the nearest
cent); and

 

(4)           for purposes of
Section 13.4(2)(i), the term “person” shall include any syndicate or group
which would be deemed to be a “person” under Section 13(d)(3) of the
Exchange Act, as in effect on the date of the original execution of this
Indenture.

 

SECTION 13.5                                            Consolidation,
Merger, etc.

 

In the case of any
merger, consolidation, conveyance, sale, transfer or lease of all or
substantially all of the assets of the Company to which Section 12.11
applies, in which the Common Stock of the Company is changed or exchanged as a
result into the right to receive shares of stock and other securities or
property or assets (including cash) which includes shares of Common Stock of
the Company or common stock of another Person that are, or upon issuance will
be, traded on a United States national securities exchange or approved for
trading on an established automated over-the-counter trading market in the
United States and such shares constitute at the time such change or exchange
becomes effective in excess of 50% of the aggregate fair market value of such
shares of stock and other securities, property and assets (including cash) (as
determined by the Company, which determination shall be conclusive and
binding), then the Person formed by such consolidation or resulting from such
merger or combination or which acquires the properties or assets (including
cash) of the Company, as the case may be, shall execute and deliver to the
Trustee a supplemental indenture (which shall comply with the Trust Indenture
Act as in force at the date of execution of such supplemental indenture)
modifying the provisions of this Indenture relating to the right of Holders to
cause the Company to repurchase the Securities following a Change in Control,
including without limitation the applicable provisions of this
Article XIII and the definitions of the Common Stock and Change in
Control, as appropriate, and such other related definitions set forth herein as
determined in good faith by the Company (which determination shall be
conclusive and binding), to make such provisions apply in the event of a
subsequent Change in Control to the common

 

93

 

stock and the issuer thereof if different from the Company and Common
Stock of the Company (in lieu of the Company and the Common Stock of the
Company).

 

ARTICLE XIV

 

HOLDERS LISTS AND
REPORTS BY TRUSTEE AND COMPANY; NON-RECOURSE

 

SECTION 14.1                                            Company
to Furnish Trustee Names and Addresses of Holders.

 

The Company will furnish
or cause to be furnished to the Trustee:

 

(1)           semi-annually, not more than 15 days
after the Regular Record Date, a list, in such form as the Trustee may
reasonably require, of the names and addresses of the Holders of Securities as
of such Regular Record Date, and

 

(2)           at such other times as the Trustee
may reasonably 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 no such list
need be furnished so long as the Trustee is acting as Security Registrar.

 

SECTION 14.2                                            Preservation
of Information.

 

(1)           The Trustee shall preserve, in as
current a form as is reasonably practicable, the names and addresses of Holders
contained in the most recent list furnished to the Trustee as provided in
Section 14.1 and the names and addresses of Holders received by the
Trustee in its capacity as Security Registrar. The Trustee may destroy any
list, if any, furnished to it as provided in Section 14.1 upon receipt of
a new list so furnished.

 

(2)           After this Indenture has been
qualified under the Trust Indenture Act, the rights of Holders to communicate
with other Holders with respect to their rights under this Indenture or under
the Securities, and the corresponding rights, and duties of the Trustee, shall
be as provided by the Trust Indenture Act.

 

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

 

SECTION 14.3       Reports
by Trustee.

 

(1)           The Trustee shall transmit to Holders
such reports concerning the Trustee and its actions under this Indenture as may
be required pursuant to the Trust Indenture Act at the times and in the manner
provided pursuant thereto.

 

94

 

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

 

SECTION 14.4       Reports
by Company.

 

The Company shall file
with the Trustee and the Commission, and transmit to Holders, such information,
documents and other reports, and such summaries thereof, as may be required
pursuant to the Trust Indenture Act at the times and in the manner provided
pursuant to such Act; provided that any such information,
documents or reports required to be filed with the Commission pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934 shall be filed
with the Trustee within 15 days after the same is so required to be filed with
the Commission.

 

Delivery of such reports,
information and documents to the Trustee is for informational purposes only and
the Trustee’s receipt thereof 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).

 

ARTICLE XV

 

IMMUNITY OF
INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

 

SECTION 15.1                                            Indenture
and Securities Solely Corporate Obligations.

 

No recourse for the
payment of the principal of or premium, if any, or interest (including
Liquidated Damages, if any) on any Security and no recourse under or upon any
obligation, covenant or agreement of the Company in this Indenture or in any
supplemental indenture or in any Security, or because of the creation of any
indebtedness represented thereby, shall be had against any past, present or
future incorporator, stockholder, employee, agent, officer, or director or
subsidiary, as such, of the Company or of any 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 all
such liability is hereby waived and released as a condition of, and as a
consideration for, the execution of this Indenture and the issue of the
Securities.  Each and every Holder of
the Securities, by receiving and holding the same, agrees to the provisions of
this Section 15.1 and waives and releases any and all such recourse, claim
and liability.

 

95

 

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

 

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

 

	
   

  	
  MEDAREX, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WILMINGTON TRUST
  COMPANY,

  
	
   

  	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

96

 

ANNEX A — Form of
Unrestricted Securities Certificate

 

UNRESTRICTED
SECURITIES CERTIFICATE

 

(For removal of
Restricted Securities Legend pursuant to Section 3.5(3))

 

[Trustee name and
address]

 

[                                        ]

 

RE:          2.25% CONVERTIBLE SENIOR NOTES DUE MAY
15, 2011 OF MEDAREX, INC. (THE “SECURITIES”)

 

Reference is made to the
Indenture, dated as of May 3, 2004 (the “Indenture”), from Medarex, Inc. (the
“Company”) to Wilmington Trust Company, a Delaware banking company, as
Trustee.  Terms used herein and defined
in the Indenture or in Rule 144 under the U.S. Securities Act of 1933 (the
“Securities Act”) are used herein as so defined.

 

This certificate relates
to
U.S.$                              
principal amount of Securities, which are evidenced by the following
certificate(s) (the “Specified Securities”):

 

CUSIP No.
[                    ]

 

CERTIFICATE
No(s).                                  

 

The person in whose name
this certificate is executed below (the “Undersigned”) hereby certifies that
either (i) it is the sole beneficial owner of the Specified Securities or (ii)
it is acting on behalf of all the beneficial owners of the Specified Securities
and is duly authorized by them to do so. Such beneficial owner or owners are
referred to herein collectively as the “Owner”. If the Specified Securities are
represented by a Global Security, they are held through the Depositary or an
Agent Member in the name of the Undersigned, as or on behalf of the Owner.  If the Specified Securities are not
represented by a Global Security, they are registered in the name of the
Undersigned, as or on behalf of the Owner.

 

The Owner has requested
that the Specified Securities be exchanged for Securities bearing no Restricted
Securities Legend pursuant to Section 3.5(3) of the Indenture. In
connection with such exchange, the Owner hereby certifies that the exchange is
occurring after a period of at least two years has elapsed since the Issue Date,
and the Owner is not, and during the preceding three months has not been, an
affiliate of the Company.  The Owner
also acknowledges that any future transfers of the Specified Securities must
comply with all applicable securities laws of the States of the United States
and other jurisdictions.

 

This certificate and the
statements contained herein are made for your benefit and the benefit of the
Company and the Initial Purchasers.

 

	
  Dated:

  	
   

  	
   

  

 

97

 

(Print the name of the
Undersigned, as such term is defined in the third paragraph of this
certificate.)

 

	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
				

 

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

 

2

 

ANNEX B — Form of
Surrender Certificate

 

In connection with the
certification contemplated by Section 12.2 or 13.3(9) relating to
compliance with certain restrictions relating to transfers of Restricted
Securities, such certification shall be provided substantially in the form of
the following certificate, with only such changes thereto as shall be approved
by the Company and the Initial Purchasers.

 

CERTIFICATE

 

MEDAREX, INC.

 

2.25% CONVERTIBLE
SENIOR NOTES DUE MAY 15, 2011

 

This is to certify that
as of the date hereof with respect to U.S.
$                    
principal amount of the above-captioned securities surrendered on the date
hereof (the “Surrendered Securities”) for registration of transfer, or for
conversion or repurchase where the securities issuable upon such conversion or
repurchase are to be registered in a name other than that of the undersigned
Holder (each such transaction being a “transfer”), the undersigned Holder (as
defined in the Indenture) certifies that the transfer of Surrendered Securities
associated with such transfer complies with the restrictive legend set forth on
the face of the Surrendered Securities for the reason checked below:

 

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

 

                                The transfer of the Surrendered
Securities complies with Rule 144 under the United States Securities Act of
1933, as amended (the “Securities Act”); or

 

                                The transfer of the Surrendered
Securities has been made pursuant to an exemption from registration under the
Securities Act and an opinion of counsel has been delivered to the Company with
respect to such transfer.

 

[Name of Holder]

 

	
  Dated:

  	
   

  	
   

  

*To be dated the date of
surrender

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