Document:

EX-4.1 INDENTURE

 

Exhibit 4.1

ATHEROGENICS, INC.

To

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

as Trustee

INDENTURE

Dated as of

January 12, 2005

1.50% Convertible Notes Due 2012

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE 1
	 	 	 	 
	Definitions
	 	 	 	 
	 
	 	 	 	 
	Section 1.01. Definitions
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 2
	 	 	 	 
	Issue, Description, Execution, Registration And Exchange Of Notes
	 	 	 	 
	 
	 	 	 	 
	Section 2.01. Designation Amount And Issue Of Notes
	 	 	8	 
	Section 2.02. Form of Notes
	 	 	8	 
	Section 2.03. Date And Denomination Of Notes; Payments Of Interest
	 	 	9	 
	Section 2.04. Execution of Notes
	 	 	10	 
	Section 2.05. Exchange and Registration of Transfer of Notes; Restrictions on Transfer
	 	 	11	 
	Section 2.06. Mutilated, Destroyed, Lost or Stolen Notes
	 	 	16	 
	Section 2.07. Temporary Notes
	 	 	17	 
	Section 2.08. Cancellation of Notes
	 	 	17	 
	Section 2.09. CUSIP Numbers
	 	 	18	 
	 
	 	 	 	 
	ARTICLE 3
	 	 	 	 
	Redemption Of Notes
	 	 	 	 
	 
	 	 	 	 
	Section 3.01. Reserved
	 	 	18	 
	Section 3.02. Reserved
	 	 	18	 
	Section 3.03. Reserved
	 	 	18	 
	Section 3.04. Reserved
	 	 	18	 
	Section 3.05. Redemption At Option of Holders Upon a Designated Event
	 	 	18	 
	Section 3.06. Effect of Redemption Notice
	 	 	20	 
	Section 3.07. Deposit of Redemption Price
	 	 	21	 
	Section 3.08. Repayment to the Company
	 	 	22	 
	Section 3.09. Public Acquirer Change Of Control
	 	 	22	 

 

 

	 	 	 	 	 
	 	 	Page
	ARTICLE 4
	 	 	 	 
	Reserved
	 	 	 	 
	 
	 	 	 	 
	ARTICLE 5
	 	 	 	 
	Reserved
	 	 	 	 
	 
	 	 	 	 
	ARTICLE 6
	 	 	 	 
	Particular Covenants Of The Company
	 	 	 	 
	 
	 	 	 	 
	Section 6.01. Payment of Principal, Premium and Interest
	 	 	23	 
	Section 6.02. Maintenance of Office or Agency
	 	 	23	 
	Section 6.03. Appointments to Fill Vacancies in Trustee’s Office
	 	 	23	 
	Section 6.04. Provisions as to Paying Agent
	 	 	24	 
	Section 6.05. Existence
	 	 	25	 
	Section 6.06. Maintenance of Properties
	 	 	25	 
	Section 6.07. Payment of Taxes and Other Claims
	 	 	25	 
	Section 6.08. Rule 144A Information Requirement
	 	 	25	 
	Section 6.09. Stay, Extension and Usury Laws
	 	 	26	 
	Section 6.10. Compliance Certificate
	 	 	26	 
	Section 6.11. Liquidated Damages Notice
	 	 	26	 
	 
	 	 	 	 
	ARTICLE 7
	 	 	 	 
	Noteholders’ Lists And Reports By The Company And The Trustee
	 	 	 	 
	 
	 	 	 	 
	Section 7.01. Noteholders’ Lists
	 	 	27	 
	Section 7.02. Preservation And Disclosure Of Lists
	 	 	27	 
	Section 7.03. Reports By Trustee
	 	 	27	 
	Section 7.04. Reports by Company
	 	 	27	 
	 
	 	 	 	 
	ARTICLE 8
	 	 	 	 
	Remedies Of The Trustee And Noteholders On An Event Of Default
	 	 	 	 
	 
	 	 	 	 
	Section 8.01. Events Of Default
	 	 	28	 
	Section 8.02. Payments of Notes on Default; Suit Therefor
	 	 	30	 
	Section 8.03. Application of Monies Collected By Trustee
	 	 	31	 
	Section 8.04. Proceedings by Noteholder
	 	 	32	 
	Section 8.05. Proceedings By Trustee
	 	 	33	 
	Section 8.06. Remedies Cumulative And Continuing
	 	 	33	 
	Section 8.07. Direction of Proceedings and Waiver of Defaults By Majority of Noteholders
	 	 	33	 
	Section 8.08. Notice of Defaults
	 	 	34	 
	Section 8.09. Undertaking To Pay Costs
	 	 	34	 
	 
	 	 	 	 
	ARTICLE 9
	 	 	 	 
	The Trustee
	 	 	 	 
	 
	 	 	 	 
	Section 9.01. Duties and Responsibilities of Trustee
	 	 	34	 

ii

 

	 	 	 	 	 
	 	 	Page
	Section 9.02. Reliance on Documents, Opinions, Etc
	 	 	36	 
	Section 9.03. No Responsibility For Recitals, Etc
	 	 	37	 
	Section 9.04. Trustee, Paying Agents, Conversion Agents or Registrar May Own Notes
	 	 	37	 
	Section 9.05. Monies to Be Held in Trust
	 	 	37	 
	Section 9.06. Compensation and Expenses of Trustee
	 	 	37	 
	Section 9.07. Officers’ Certificate As Evidence
	 	 	38	 
	Section 9.08. Conflicting Interests of Trustee
	 	 	38	 
	Section 9.09. Eligibility of Trustee
	 	 	38	 
	Section 9.10. Resignation or Removal of Trustee
	 	 	39	 
	Section 9.11. Acceptance by Successor Trustee
	 	 	40	 
	Section 9.12. Succession By Merger
	 	 	41	 
	Section 9.13. Preferential Collection of Claims
	 	 	41	 
	 
	 	 	 	 
	ARTICLE 10
	 	 	 	 
	The Noteholders
	 	 	 	 
	 
	 	 	 	 
	Section 10.01. Action By Noteholders
	 	 	41	 
	Section 10.02. Proof of Execution by Noteholders
	 	 	41	 
	Section 10.03. Who Are Deemed Absolute Owners
	 	 	42	 
	Section 10.04. Companyowned Notes Disregarded
	 	 	42	 
	Section 10.05. Revocation Of Consents, Future Holders Bound
	 	 	42	 
	 
	 	 	 	 
	ARTICLE 11
	 	 	 	 
	Meetings Of Noteholders
	 	 	 	 
	 
	 	 	 	 
	Section 11.01. Purpose Of Meetings
	 	 	43	 
	Section 11.02. Call Of Meetings By Trustee
	 	 	43	 
	Section 11.03. Call Of Meetings By Company Or Noteholders
	 	 	43	 
	Section 11.04. Qualifications For Voting
	 	 	44	 
	Section 11.05. Regulations
	 	 	44	 
	Section 11.06. Voting
	 	 	44	 
	Section 11.07. No Delay Of Rights By Meeting
	 	 	45	 
	 
	 	 	 	 
	ARTICLE 12
	 	 	 	 
	Supplemental Indentures
	 	 	 	 
	 
	 	 	 	 
	Section 12.01. Supplemental Indentures Without Consent of Noteholders
	 	 	45	 
	Section 12.02. Supplemental Indenture With Consent Of Noteholders
	 	 	46	 
	Section 12.03. Effect Of Supplemental Indenture
	 	 	47	 
	Section 12.04. Notation On Notes
	 	 	47	 
	Section 12.05. Evidence Of Compliance Of Supplemental Indenture To Be Furnished To Trustee
	 	 	48	 
	 
	 	 	 	 
	ARTICLE 13
	 	 	 	 
	Consolidation, Merger, Sale, Conveyance And Lease
	 	 	 	 
	 
	 	 	 	 
	Section 13.01. Company May Consolidate On Certain Terms
	 	 	48	 
	Section 13.02. Successor To Be Substituted
	 	 	48	 

iii

 

	 	 	 	 	 
	 	 	Page
	Section 13.03. Opinion Of Counsel To Be Given To Trustee
	 	 	49	 
	 
	 	 	 	 
	ARTICLE 14
	 	 	 	 
	Satisfaction And Discharge Of Indenture
	 	 	 	 
	 
	 	 	 	 
	Section 14.01. Discharge Of Indenture
	 	 	49	 
	Section 14.02. Deposited Monies To Be Held In Trust By Trustee
	 	 	49	 
	Section 14.03. Paying Agent To Repay Monies Held
	 	 	50	 
	Section 14.04. Return Of Unclaimed Monies
	 	 	50	 
	Section 14.05. Reinstatement
	 	 	50	 
	 
	 	 	 	 
	ARTICLE 15
	 	 	 	 
	Immunity Of Incorporators, Stockholders, Officers And Directors
	 	 	 	 
	 
	 	 	 	 
	Section 15.01. Indenture And Notes Solely Corporate Obligations
	 	 	50	 
	 
	 	 	 	 
	ARTICLE 16
	 	 	 	 
	Conversion Of Notes
	 	 	 	 
	 
	 	 	 	 
	Section 16.01. Right To Convert
	 	 	51	 
	Section 16.02. Exercise Of Conversion Privilege; Issuance Of Common Stock On Conversion; No Adjustment
For Interest Or Dividends
	 	 	51	 
	Section 16.03. Cash Payments in Lieu of Fractional Shares
	 	 	53	 
	Section 16.04. Conversion Rate
	 	 	53	 
	Section 16.05. Adjustment Of Conversion Rate
	 	 	53	 
	Section 16.06. Effect Of Reclassification, Consolidation, Merger or Sale
	 	 	62	 
	Section 16.07. Taxes On Shares Issued
	 	 	63	 
	Section 16.08. Reservation of Shares, Shares to Be Fully Paid; Compliance With Governmental Requirements;
Listing of Common Stock
	 	 	63	 
	Section 16.09. Responsibility Of Trustee
	 	 	64	 
	Section 16.10. Notice To Holders Prior To Certain Actions
	 	 	64	 
	Section 16.11. Stockholder Rights Plans
	 	 	65	 
	Section 16.12. Additional Shares
	 	 	65	 
	 
	 	 	 	 
	ARTICLE 17
	 	 	 	 
	Miscellaneous Provisions
	 	 	 	 
	 
	 	 	 	 
	Section 17.01. Provisions Binding On Company’s Successors
	 	 	67	 
	Section 17.02. Official Acts By Successor Corporation
	 	 	67	 
	Section 17.03. Addresses For Notices, Etc
	 	 	67	 
	Section 17.04. Governing Law
	 	 	67	 
	Section 17.05. Evidence Of Compliance With Conditions Precedent, Certificates To Trustee
	 	 	67	 
	Section 17.06. Legal Holidays
	 	 	68	 
	Section 17.07. Trust Indenture Act
	 	 	68	 
	Section 17.08. No Security Interest Created
	 	 	68	 
	Section 17.09. Benefits Of Indenture
	 	 	68	 
	Section 17.10. Table Of Contents, Headings, Etc
	 	 	68	 

iv

 

	 	 	 	 	 
	 	 	Page
	Section 17.11. Authenticating Agent
	 	 	69	 
	Section 17.12. Execution In Counterparts
	 	 	69	 
	Section 17.13. Severability
	 	 	69	 
	Exhibit A Form of Note
	 	 	A-1	 

v

 

INDENTURE

     INDENTURE dated as of January 12, 2005 between AtheroGenics, Inc., a Georgia corporation
(hereinafter called the “Company”), having its principal office at 8995 Westside Parkway,
Alpharetta, Georgia 30004, and The Bank of New York Trust Company, N.A., a national banking
association organized under the laws of the United States, as trustee hereunder (hereinafter called
the “Trustee”).

WITNESSETH:

     WHEREAS, for its lawful corporate purposes, the Company has duly authorized the issue of its
1.50% Convertible Notes Due 2012 (hereinafter called the “Notes”), initially in an aggregate
principal amount not to exceed $200,000,000 and, in order to provide the terms and conditions upon
which the Notes are to be authenticated, issued and delivered, the Company has duly authorized the
execution and delivery of this Indenture;

     WHEREAS, the Notes, the certificate of authentication to be borne by the Notes, a form of
assignment, a form of option to elect redemption upon a Designated Event, and a form of conversion
notice to be borne by the Notes are to be substantially in the forms hereinafter provided for; and

     WHEREAS, all acts and things necessary to make the Notes, when executed by the Company and
authenticated and delivered by the Trustee or a duly authorized authenticating agent, as in this
Indenture provided, the valid, binding and legal obligations of the Company, and to constitute this
Indenture a valid agreement according to its terms, have been done and performed, and the execution
of this Indenture and the issue hereunder of the Notes have in all respects been duly authorized,

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

     That in order to declare the terms and conditions upon which the Notes are, and are to be,
authenticated, issued and delivered, and in consideration of the premises and of the purchase and
acceptance of the Notes by the holders thereof, the Company covenants and agrees with the Trustee
for the equal and proportionate benefit of the respective holders from time to time of the Notes
(except as otherwise provided below), as follows:

ARTICLE 1

Definitions

     Section 1.01. Definitions. The terms defined in this Section 1.01 (except as herein
otherwise expressly provided or unless the context otherwise requires) for all purposes of this
Indenture and of any indenture supplemental hereto shall have the respective meanings specified in
this Section 1.01. All other terms used in this Indenture that are defined in the Trust Indenture
Act or which are by reference therein defined in the Securities Act (except as herein otherwise
expressly provided or unless the context otherwise requires) shall have the meanings assigned to
such terms in the Trust Indenture Act and in the Securities Act as in force at the date of the

 

 

execution of this Indenture. The words “herein”, “hereof”, “hereunder” and words of similar
import refer to this Indenture as a whole and not to any particular Article, Section or other
Subdivision. The terms defined in this Article include the plural as well as the singular.

     “Accepted Purchased Shares” has the meaning specified in Section 16.05(g)(i).

     “Additional Shares” has the meaning specified in Section 16.12(a).

     “Adjustment Event” has the meaning specified in Section 16.05(l).

     “Agent Members” has the meaning specified in Section 2.05(b)(v).

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

     “Board of Directors” means the Board of Directors of the Company or a committee of such Board
duly authorized to act for it hereunder.

     “Business Day” means any day except a Saturday, Sunday or legal holiday on which banking
institutions in The City of New York or the city in which the Corporate Trust Office is located are
authorized or obligated by law, regulation or executive order to close.

     “Capital Stock” means (a) in the case of a corporation, corporate stock, (b) in the case of an
association or business entity, any and all shares, interests, participations, rights or other
equivalents (however designated) of corporate stock, (c) in the case of a partnership or limited
liability company, partnership or membership interests (whether general or limited) and (d) any
other interest or participation that confers on a person the right to receive a share of the
profits and losses of, or distribution of the assets of, the issuing person.

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

     “Closing Sale Price” of the shares of Common Stock on any date means the closing sale price
per share (or, if no closing sale price is reported, the average of the closing bid and ask prices
or, if more than one in either case, the average of the average closing bid and the average closing
ask prices) on such date as reported in composite transactions for the principal United States
securities exchange on which shares of Common Stock are traded or, if the shares of Common Stock
are not listed on a United States national or regional securities exchange, as reported by the
NASDAQ National Market or by the National Quotation Bureau Incorporated. In the absence of such
quotations, the Company shall be entitled to determine the Closing Sale Price on the basis it
considers appropriate. The Closing Sale Price shall be determined without reference to extended or
after hours trading.

2

 

     “Commission” means the 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 any stock of any class of the Company 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 Company and which is not subject to redemption by the Company.
Subject to the provisions of Section 16.06, however, shares issuable on conversion of Notes shall
include only shares of the class designated as common stock of the Company at the date of this
Indenture (namely, the Common Stock, no par value) or shares of any class or classes resulting from
any reclassification or reclassifications thereof and which have no preference in respect of
dividends or of amounts payable in the event of any voluntary or involuntary liquidation,
dissolution or winding up of the Company and which are not subject to redemption by the Company;
provided that if at any time there shall be more than one such resulting class, the shares of each
such class then so issuable on conversion shall be substantially in the proportion which the total
number of shares of such class resulting from all such reclassifications bears to the total number
of shares of all such classes resulting from all such reclassifications.

     “Company” means the corporation named as the “Company” in the first paragraph of this
Indenture, and, subject to the provisions of Article 13 and Section 16.06, shall include its
successors and assigns.

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

     “Conversion Rate” has the meaning specified in Section 16.04.

     “Corporate Trust Office” or other similar term, means the designated office of the Trustee at
which at any particular time its corporate trust business as it relates to this Indenture shall be
administered, which office is, at the date as of which this Indenture is dated, located at 10161
Centurion Parkway, 2nd Floor, Jacksonville, Florida, 32256.

     “Current Market Price” has the meaning specified in Section 16.05(h)(i).

     “Custodian” means The Bank of New York Trust Company, N.A., as custodian with respect to the
Notes in global form, or any successor entity thereto.

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

     “Defaulted Interest” has the meaning specified in Section 2.03.

     “Designated Event” means the occurrence of (a) a Fundamental Change or (b) the termination of
trading in the Company’s Common Stock (or other common stock into which the Notes are at such time
convertible) on the NASDAQ National Market or any United States national securities exchange,
following which the Company’s Common Stock (or other common

3

 

stock into which the Notes are at such time convertible) is no longer approved for trading on
the NASDAQ National Market or any similar United States system of automated dissemination of
quotations and security prices or listed for trading on a United States national securities
exchange.

     “Designated Event Expiration Time” has the meaning specified in Section 3.05(b).

     “Designated Event Notice” has the meaning specified in Section 3.05(b).

     “Designated Event Redemption Date” has the meaning specified in Section 3.05(a).

     “Depositary” means, the clearing agency registered under the Exchange Act that is designated
to act as the Depositary for the Global Notes. The Depository Trust Company shall be the initial
Depositary, until a successor shall have been appointed and become such pursuant to the applicable
provisions of this Indenture, and thereafter, “Depositary” shall mean or include such successor.

     “Determination Date” has the meaning specified in Section 16.05(l).

     “Effective Date” has the meaning specified in Section 16.12(a).

     “Event of Default” means any event specified in Section 8.01 as an Event of Default.

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

     “Ex-Dividend Date” has the meaning specified in Section 16.05(d).

     “Expiration Time” has the meaning specified in Section 16.05(f).

     “Fair Market Value” has the meaning specified in Section 16.05(h)(ii).

     “Fundamental Change” means the occurrence of any transaction or event (whether by means of an
exchange offer, liquidation, tender offer, consolidation, merger, combination, reclassification,
recapitalization or otherwise) in connection with which 50% or more of the Common Stock shall be
exchanged for, converted into, acquired for or constitutes solely the right to receive,
consideration which is not at least 90% common stock that is (or, upon consummation of or
immediately following such transaction or event, which will be) listed on a United States national
securities exchange or approved (or, upon consummation of or immediately following such transaction
or event, which will be approved) for quotation on the NASDAQ National Market or any similar United
States system of automated dissemination of quotations of securities prices.

     “Global Note” has the meaning specified in Section 2.02.

     “Indenture” means this instrument as originally executed or, if amended or supplemented as
herein provided, as so amended or supplemented.

4

 

     “Initial Purchasers” means Morgan Stanley & Co. Incorporated, Lehman Brothers Inc., J.P.
Morgan Securities Inc. and Lazard Frères & Co. LLC.

     “Interest” means, when used with reference to the Notes, any interest payable under the terms
of the Notes, and Liquidated Damages, if any, payable under the terms of the Registration Rights
Agreement.

     “Liquidated Damages” has the meaning specified for “Liquidated Damages Amount” in Section 2(e)
of the Registration Rights Agreement.

     “Liquidated Damages Notice” has the meaning specified in Section 6.11.

     “non-electing share” has the meaning specified in Section 16.06.

     “Note” or “Notes” means any Note or Notes, as the case may be, authenticated and delivered
under this Indenture, including any Global Note.

     “Note Register” has the meaning specified in Section 2.05.

     “Note Registrar” has the meaning specified in Section 2.05.

     “Noteholder” or “holder” as applied to any Note, or other similar terms (but excluding the
term “Beneficial Holder”), means any Person in whose name at the time a particular Note is
registered on the Note Registrar’s books.

     “Offer Expiration Time” has the meaning specified in Section 16.05(g).

     “Officers’ Certificate”, when used with respect to the Company, means a certificate signed on
behalf of the Company by the Chairman of the Board, the Chief Executive Officer, the President or
any Vice President (whether or not designated by a number or numbers or word or words added before
or after the title “Vice President”) and the Treasurer or any Assistant Treasurer, or the Secretary
or Assistant Secretary of the Company.

     “Opinion of Counsel” means an opinion in writing signed by legal counsel, who may be an
employee of or counsel to the Company, or other counsel reasonably acceptable to the Trustee.

     “outstanding”, when used with reference to Notes and subject to the provisions of Section
10.04, means, as of any particular time, all Notes authenticated and delivered by the Trustee under
this Indenture, except:

     (a) Notes theretofore canceled by the Trustee or delivered to the Trustee for cancellation;

     (b) Notes in lieu of which, or in substitution for which, other Notes shall have been
authenticated and delivered pursuant to the terms of Section 2.06;

     (c) Notes converted into Common Stock pursuant to Article 16; and

5

 

     (d) Notes deemed not outstanding pursuant to Article 3.

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

     “Portal Market” means The Portal Market operated by the National Association of Securities
Dealers, Inc. or any successor thereto.

     “Predecessor Note” of any particular Note means every previous Note evidencing all or a
portion of the same debt as that evidenced by such particular Note, and, for the purposes of this
definition, any Note authenticated and delivered under Section 2.06 in lieu of a lost, destroyed or
stolen Note shall be deemed to evidence the same debt as the lost, destroyed or stolen Note that it
replaces.

     “premium” means any premium payable under the terms of the Notes.

     “Public Acquirer Change of Control” means any event constituting a Fundamental Change that
would otherwise give holders the right to cause the Company to redeem the Notes in accordance with
Section 3.05, where either (a) the acquirer or (b) if not the acquirer, a direct or indirect
majority-owned Subsidiary of the acquirer or (c) if not the acquirer or any direct or indirect
majority-owned Subsidiary of the acquirer, a corporation by which the acquirer is directly or
indirectly majority-owned, has a class of common stock traded on a U.S. national securities
exchange or quoted on the NASDAQ National Market or which will be so traded or quoted when issued
or exchanged in connection with such Fundamental Change, and the acquirer has designated such
common stock to serve the public acquirer common stock in the transaction. “Majority-owned” for
the purposes of this definition means having “beneficial ownership” (as defined in Rule 13d-3 under
the Exchange Act) of more than 50% of the total voting power of the respective Person’s Voting
Stock.

     “Public Acquirer Common Stock” means the class of common stock of an entity referred to in
sections (a), (b) or (c) of the first sentence of the definition of “Public Acquirer Change of
Control” that has been designated to serve as the public acquirer common stock in the transaction.

     “Public Acquisition Notice” has the meaning specified in Section 3.09(a).

     “Purchased Shares” has the meaning specified in Section 16.05(f)(i).

     “QIB” means a “qualified institutional buyer” as defined in Rule 144A.

     “Record Date” has the meaning specified in Section 16.05(h)(iii).

     “Redemption Notice” has the meaning specified in Section 3.05(a).

     “Registration Rights Agreement” means the Registration Rights Agreement, dated as of January
12, 2005, between the Company and the Initial Purchasers, as amended from time to time in
accordance with its terms.

6

 

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

     “Restricted Securities” has the meaning specified in Section 2.05(c).

     “Rule 144A” means Rule 144A as promulgated under the Securities Act.

     “Securities” has the meaning specified in Section 16.05(d).

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

     “Significant Subsidiary” means, as of any date of determination, a Subsidiary of the Company
that would constitute a “significant subsidiary” as such term is defined under Rule 1-02(w) of
Regulation S-X of the Commission as in effect on the date of this Indenture.

     “Stock Price” has the meaning specified in 16.12(a).

     “Subsidiary” means, with respect to any Person, (i) any corporation, association or other
business entity of which more than 50% of the total voting power of shares of capital stock or
other equity interest entitled (without regard to the occurrence of any contingency) to vote in the
election of directors, managers or trustees thereof is at the time owned or controlled, directly or
indirectly, by such Person or one or more of the other subsidiaries of that Person (or a
combination thereof) and (ii) any partnership (a) the sole general partner or managing general
partner of which is such Person or a subsidiary of such Person or (b) the only general partners of
which are such Person or of one or more subsidiaries of such Person (or any combination thereof).

     “Trading Day” has the meaning specified in Section 16.05(h)(iv).

     “Trigger Event” has the meaning specified in Section 16.05(d).

     “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended, as it was in force at
the date of this Indenture, except as provided in Section 12.03; provided that if the Trust
Indenture Act of 1939 is amended after the date hereof, the term “Trust Indenture Act” shall mean,
to the extent required by such amendment, the Trust Indenture Act of 1939 as so amended.

     “Trustee” means The Bank of New York Trust Company, N.A. and its successors and any
corporation resulting from or surviving any consolidation or merger to which it or its successors
may be a party and any successor trustee at the time serving as successor trustee hereunder.

     “Voting Stock” of a Person means all classes of Capital Stock or other interests (including
partnership interests) of such Person then outstanding and normally entitled (without

7

 

regard to the occurrence of any contingency) to vote in the election of directors, managers or
trustees thereof.

ARTICLE 2

Issue, Description, Execution, Registration And Exchange Of Notes

     Section 2.01. Designation Amount And Issue Of Notes. The Notes shall be designated as
“1.50% Convertible Notes Due 2012”. Notes not to exceed the aggregate principal amount of
$175,000,000, or if the Company sells up to an additional $25,000,000 principal amount of its Notes
pursuant to the option of the Initial Purchasers granted pursuant to the Purchase Agreement dated
as of January 6, 2005 between the Company and the Initial Purchasers, limited in aggregate
principal amount to $200,000,000, upon the execution of this Indenture, or (except pursuant to
Sections 2.04, 2.05, 2.06, 3.05 and 16.02 hereof) from time to time thereafter, may be executed by
the Company and delivered to the Trustee for authentication, and the Trustee shall thereupon
authenticate and deliver said Notes to or upon the written order of the Company, signed by its
Chairman of the Board, Chief Executive Officer, President or any Vice President (whether or not
designated by a number or numbers or word or words added before or after the title “Vice
President”), the Treasurer or any Assistant Treasurer or the Secretary or Assistant Secretary,
without any further action by the Company hereunder.

     Section 2.02. Form of Notes. The Notes and the Trustee’s certificate of authentication to
be borne by such Notes shall be substantially in the form set forth in Exhibit A. The terms and
provisions contained in the form of Note attached as Exhibit A hereto shall constitute, and are
hereby expressly made, a part of this Indenture and, to the extent applicable, the Company and the
Trustee, by their execution and delivery of this Indenture, expressly agree to such terms and
provisions and to be bound thereby.

     Any of the Notes may have such letters, numbers or other marks of identification and such
notations, legends, endorsements or changes as the officers executing the same may approve
(execution thereof to be conclusive evidence of such approval) and as are not inconsistent with the
provisions of this Indenture, or as may be required by the Custodian, the Depositary or by the
National Association of Securities Dealers, Inc. in order for the Notes to be tradable on The
Portal Market or as may be required for the Notes to be tradable on any other market developed for
trading of securities pursuant to Rule 144A or as may be required to comply with any applicable law
or with any rule or regulation made pursuant thereto or with any rule or regulation of any
securities exchange or automated quotation system on which the Notes may be listed, or to conform
to usage, or to indicate any special limitations or restrictions to which any particular Notes are
subject.

     So long as the Notes are eligible for book-entry settlement with the Depositary, or unless
otherwise required by law, or otherwise contemplated by Section 2.05(a), all of the Notes will be
represented by one or more Notes in global form registered in the name of the Depositary or the
nominee of the Depositary (a “Global Note”). The transfer and exchange of beneficial interests in
any such Global Note shall be effected through the Depositary in accordance with this Indenture and
the applicable procedures of the Depositary. Except as provided in Section 2.05(a), beneficial
owners of a Global Note shall not be entitled to have certificates registered in

8

 

their names, will not receive or be entitled to receive physical delivery of certificates in
definitive form and will not be considered holders of such Global Note.

     Any Global Note shall represent such of the outstanding Notes as shall be specified therein
and shall provide that it shall represent the aggregate amount of outstanding Notes from time to
time endorsed thereon and that the aggregate amount of outstanding Notes represented thereby may
from time to time be increased or reduced to reflect redemptions, conversions, transfers or
exchanges permitted hereby. Any endorsement of a Global Note to reflect the amount of any increase
or decrease in the amount of outstanding Notes represented thereby shall be made by the Trustee or
the Custodian, at the direction of the Trustee, in such manner and upon instructions given by the
holder of such Notes in accordance with this Indenture. Payment of principal of and interest and
premium, if any, on any Global Note shall be made to the holder of such Note.

     Section 2.03. Date And Denomination Of Notes; Payments Of Interest. The Notes shall be
issuable in registered form without coupons in denominations of $1,000 principal amount and
integral multiples thereof. Each Note shall be dated the date of its authentication and shall bear
interest from the date specified on the face of the form of Note attached as Exhibit A hereto.
Interest on the Notes shall be computed on the basis of a 360-day year comprised of twelve 30-day
months.

     The Person in whose name any Note (or its Predecessor Note) is registered on the Note Register
at the close of business on any record date with respect to any interest payment date shall be
entitled to receive the interest payable on such interest payment date, except that the interest
payable upon redemption upon the occurrence of a Designated Event will be payable to the Person to
whom principal is payable pursuant to such redemption. Interest shall be payable at the office of
the Company maintained by the Company for such purposes in the Borough of Manhattan, City of New
York, which shall initially be an office or agency of the Trustee. The Company shall pay interest
(i) on any Notes in certificated form by check mailed to the address of the Person entitled thereto
as it appears in the Note Register (or upon written notice by such Person, by wire transfer in
immediately available funds, if such Person is entitled to interest on aggregate principal in
excess of $2 million) or (ii) on any Global Note by wire transfer of immediately available funds to
the account of the Depositary or its nominee. The term “record date” with respect to any interest
payment date shall mean the January 15 or July 15 preceding the applicable February 1 or August 1
interest payment date, respectively.

     Any interest on any Note which is payable, but is not punctually paid or duly provided for, on
any February 1 or August 1 (herein called “Defaulted Interest”) shall forthwith cease to be payable
to the Noteholder on the relevant record date by virtue of his having been such Noteholder, and
such Defaulted Interest shall 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 Notes (or their respective Predecessor Notes) 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 Note and the date of the proposed

9

 

payment (which shall be not less than twenty-five (25) days after the receipt by the Trustee
of such notice, unless the Trustee shall consent to an earlier date), and at the same time the
Company shall deposit with the Trustee an amount of money equal to the aggregate amount to be paid
in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for
such deposit on or prior to the date of the proposed payment, such money when deposited to be held
in trust for the benefit of the Persons entitled to such Defaulted Interest as in this clause
provided. Thereupon the Trustee shall fix a special record date for the payment of such Defaulted
Interest which shall be not more than fifteen (15) days and not less than ten (10) days prior to
the date of the proposed payment, and not less than ten (10) days after the receipt by the Trustee
of the notice of the proposed payment. The Trustee shall promptly notify the Company of such
special record date and, in the name and at the expense of the Company, shall cause notice of the
proposed payment of such Defaulted Interest and the special record date therefor to be mailed,
first-class postage prepaid, to each holder at his address as it appears in the Note Register, not
less than ten (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 Notes (or their respective Predecessor
Notes) are registered at the close of business on such special record date and shall no longer be
payable pursuant to the following clause (2) of this Section 2.03.

     (2) The Company may make payment of any Defaulted Interest in any other lawful manner not
inconsistent with the requirements of any securities exchange or automated quotation system on
which the Notes may be listed or designated for issuance, and upon such notice as may be required
by such exchange or automated quotation system, 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.

     Section 2.04. Execution of Notes. The Notes shall be signed in the name and on behalf of
the Company by the manual or facsimile signature of its Chairman of the Board, Chief Executive
Officer, President or any Vice President (whether or not designated by a number or numbers or word
or words added before or after the title “Vice President”) and attested by the manual or facsimile
signature of its Secretary or any of its Assistant Secretaries or its Treasurer or any of its
Assistant Treasurers (which may be printed, engraved or otherwise reproduced thereon, by facsimile
or otherwise). Only such Notes as shall bear thereon a certificate of authentication substantially
in the form set forth on the form of Note attached as Exhibit A hereto, manually executed by the
Trustee (or an authenticating agent appointed by the Trustee as provided by Section 17.11), shall
be entitled to the benefits of this Indenture or be valid or obligatory for any purpose. Such
certificate by the Trustee (or such an authenticating agent) upon any Note executed by the Company
shall be conclusive evidence that the Note so authenticated has been duly authenticated and
delivered hereunder and that the holder is entitled to the benefits of this Indenture. The Company
at any time or from time to time may, without the consent of any holder, issue additional Notes
having the same terms and the same CUSIP numbers as the Notes initially issued hereunder, and
entitled to all of the benefits hereof. Such additional Notes will be deemed Notes for all
purposes hereunder, including without limitation in determining the necessary holders who may take
the actions or consent to the taking of actions as specified herein.

10

 

     In case any officer of the Company who shall have signed any of the Notes shall cease to be
such officer before the Notes so signed shall have been authenticated and delivered by the Trustee,
or disposed of by the Company, such Notes nevertheless may be authenticated and delivered or
disposed of as though the person who signed such Notes had not ceased to be such officer of the
Company, and any Note may be signed on behalf of the Company by such persons as, at the actual date
of the execution of such Note, shall be the proper officers of the Company, although at the date of
the execution of this Indenture any such person was not such an officer.

     Section 2.05. Exchange and Registration of Transfer of Notes; Restrictions on Transfer. (a)
The Company shall cause to be kept at the Corporate Trust Office a register (the register
maintained in such office and in any other office or agency of the Company designated pursuant to
Section 6.02 being herein sometimes collectively referred to as the “Note Register”) in which,
subject to such reasonable regulations as it may prescribe, the Company shall provide for the
registration of Notes and of transfers of Notes. The Note Register shall be in written form or in
any form capable of being converted into written form within a reasonably prompt period of time.
The Trustee is hereby appointed “Note Registrar” for the purpose of registering Notes and transfers
of Notes as herein provided. The Company may appoint one or more co-registrars in accordance with
Section 6.02.

     Upon surrender for registration of transfer of any Note to the Note Registrar or any
co-registrar, and satisfaction of the requirements for such transfer set forth in this Section
2.05, the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Notes of any authorized denominations and of
a like aggregate principal amount and bearing such restrictive legends as may be required by this
Indenture.

     Notes may be exchanged for other Notes of any authorized denominations and of a like aggregate
principal amount, upon surrender of the Notes to be exchanged at any such office or agency
maintained by the Company pursuant to Section 6.02. Whenever any Notes are so surrendered for
exchange, the Company shall execute, and the Trustee shall authenticate and deliver, the Notes
which the Noteholder making the exchange is entitled to receive bearing registration numbers not
contemporaneously outstanding.

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

     All Notes presented or surrendered for registration of transfer or for exchange, redemption,
or conversion shall (if so required by the Company or the Note Registrar) be duly endorsed, or be
accompanied by a written instrument or instruments of transfer in form satisfactory to the Company,
and the Notes shall be duly executed by the Noteholder thereof or his attorney duly authorized in
writing.

     No service charge shall be made to any holder for any registration of, transfer or exchange of
Notes, but the Company may require payment by the holder of a sum sufficient to cover any tax,
assessment or other governmental charge that may be imposed in connection with any registration of
transfer or exchange of Notes.

11

 

     Neither the Company nor the Trustee nor any Note Registrar shall be required to exchange or
register a transfer of (a) any Notes or portions thereof surrendered for conversion pursuant to
Article 16 or (b) any Notes or portions thereof tendered for redemption (and not withdrawn)
pursuant to Section 3.05.

     (b) The following provisions shall apply only to Global Notes:

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

     (ii) Notwithstanding any other provision in this Indenture, no Global Note may be
exchanged in whole or in part for Notes registered, and no transfer of a Global Note in
whole or in part may be registered, in the name of any Person other than the Depositary or a
nominee thereof unless (A) the Depositary (i) has notified the Company that it is unwilling
or unable to continue as Depositary for such Global Note and a successor depositary has not
been appointed by the Company within ninety days or (ii) has ceased to be a clearing agency
registered under the Exchange Act, (B) an Event of Default has occurred and is continuing or
(C) the Company, in its sole discretion, notifies the Trustee in writing that it no longer
wishes to have all the Notes represented by Global Notes. Any Global Note exchanged
pursuant to clause (A) or (B) above shall be so exchanged in whole and not in part and any
Global Note exchanged pursuant to clause (C) above may be exchanged in whole or from time to
time in part as directed by the Company. Any Note issued in exchange for a Global Note or
any portion thereof shall be a Global Note; provided that any such Note so issued that is
registered in the name of a Person other than the Depositary or a nominee thereof shall not
be a Global Note.

     (iii) Securities issued in exchange for a Global Note or any portion thereof pursuant
to clause (ii) above shall be issued in definitive, fully registered form, without interest
coupons, shall have an aggregate principal amount equal to that of such Global Note or
portion thereof to be so exchanged, shall be registered in such names and be in such
authorized denominations as the Depositary shall designate and shall bear any legends
required hereunder. Any Global Note to be exchanged in whole shall be surrendered by the
Depositary to the Trustee, as Note Registrar. With regard to any Global Note to be
exchanged in part, either such Global Note shall be so surrendered for exchange or, if the
Trustee is acting as Custodian for the Depositary or its nominee with respect to such Global
Note, the principal amount thereof shall be reduced, by an amount equal to the portion
thereof to be so exchanged, by means of an appropriate adjustment made on the records of
the Trustee. Upon any such surrender or adjustment, the Trustee shall authenticate and make
available for delivery the Note issuable on such exchange to or upon the written order of
the Depositary or an authorized representative thereof.

     (iv) In the event of the occurrence of any of the events specified in clause (ii)
above, the Company will promptly make available to the Trustee a reasonable supply of
certificated Notes in definitive, fully registered form, without interest coupons.

12

 

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

     (vi) At such time as all interests in a Global Note have been redeemed, converted,
canceled or exchanged for Notes in certificated form, such Global Note shall, upon receipt
thereof, be canceled by the Trustee in accordance with standing procedures and instructions
existing between the Depositary and the Custodian. At any time prior to such cancellation,
if any interest in a Global Note is redeemed, converted, canceled or exchanged for Notes in
certificated form, the principal amount of such Global Note shall, in accordance with the
standing procedures and instructions existing between the Depositary and the Custodian, be
appropriately reduced, and an endorsement shall be made on such Global Note, by the Trustee
or the Custodian, at the direction of the Trustee, to reflect such reduction.

     (c) Every Note that bears or is required under this Section 2.05(c) to bear the legend set
forth in this Section 2.05(c) (together with any Common Stock issued upon conversion of the Notes
and required to bear the legend set forth in Section 2.05(c), collectively, the “Restricted
Securities”) shall be subject to the restrictions on transfer set forth in this Section 2.05(c)

(including those set forth in the legend below) unless such restrictions on transfer shall be
waived by written consent of the Company, and the holder of each such Restricted Security, by such
Note holder’s acceptance thereof, agrees to be bound by all such restrictions on transfer. As used
in Section 2.05(c) and 2.05(d), the term “transfer” encompasses any sale, pledge, loan, transfer or
other disposition whatsoever of any Restricted Security or any interest therein.

     Until the expiration of the holding period applicable to sales thereof under Rule 144(k) under
the Securities Act (or any successor provision), any certificate evidencing such Note (and all
securities issued in exchange therefor or substitution thereof, other than Common Stock, if any,
issued upon conversion thereof, which shall bear the legend set forth in Section 2.05(c), if
applicable) shall bear a legend in substantially the following form, unless such Note has been sold
pursuant to a registration statement that has been declared effective under the Securities Act (and
which continues to be effective at the time of such transfer) or sold pursuant to Rule 144 under
the Securities Act or any similar provision then in force, or unless otherwise agreed by the
Company in writing, with written notice thereof to the Trustee:

THE NOTE EVIDENCED HEREBY HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS, AND, ACCORDINGLY, MAY NOT BE
OFFERED OR SOLD

13

 

EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER (1)
REPRESENTS THAT IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT); (2) AGREES THAT IT WILL NOT, PRIOR TO EXPIRATION OF THE HOLDING PERIOD APPLICABLE
TO SALES OF THIS NOTE UNDER RULE 144(k) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION),
RESELL OR OTHERWISE TRANSFER THIS NOTE OR THE COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE
EXCEPT (A) TO ATHEROGENICS, INC. OR ANY SUBSIDIARY THEREOF, (B) TO A QUALIFIED INSTITUTIONAL BUYER
IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, (C) PURSUANT TO THE EXEMPTION FROM
REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE), OR (D) PURSUANT TO A
REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH
CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER); (3) PRIOR TO SUCH TRANSFER (OTHER THAN A
TRANSFER PURSUANT TO CLAUSE 2(D) ABOVE), IT WILL FURNISH TO THE BANK OF NEW YORK TRUST COMPANY,
N.A., AS TRUSTEE (OR A SUCCESSOR TRUSTEE, AS APPLICABLE), SUCH CERTIFICATIONS, LEGAL OPINIONS OR
OTHER INFORMATION AS 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; AND (4) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE IS
TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. THIS LEGEND WILL BE REMOVED UPON
THE EARLIER OF THE TRANSFER OF THIS NOTE PURSUANT TO CLAUSE 2(D) ABOVE OR UPON ANY TRANSFER OF THIS
NOTE UNDER RULE 144 UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION). THE INDENTURE CONTAINS
A PROVISION REQUIRING THE TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF THIS NOTE IN VIOLATION OF
THE FOREGOING RESTRICTION.

     Any Note (or security issued in exchange or substitution therefor) as to which such
restrictions on transfer shall have expired in accordance with their terms or as to conditions for
removal of the foregoing legend set forth therein have been satisfied may, upon surrender of such
Note for exchange to the Note Registrar in accordance with the provisions of this Section 2.05, be
exchanged for a new Note or Notes, of like tenor and aggregate principal amount, which shall not
bear the restrictive legend required by this Section 2.05(c). If the Restricted Security
surrendered for exchange is represented by a Global Note bearing the legend set forth in this
Section 2.05(c), the principal amount of the legended Global Note shall be reduced by the
appropriate principal amount and the principal amount of a Global Note without the legend set forth
in this Section 2.05(c) shall be increased by an equal principal amount. If a Global Note without
the legend set forth in this Section 2.05(c) is not then outstanding, the Company shall execute and
the Trustee shall authenticate and deliver an unlegended Global Note to the Depositary.

     (d) Until the expiration of the holding period applicable to sales thereof under Rule 144(k)
under the Securities Act (or any successor provision), any stock certificate representing Common
Stock issued upon conversion of any Note shall bear a legend in substantially the following form,
unless such Common Stock has been sold pursuant to a registration statement

14

 

that has been declared effective under the Securities Act (and which continues to be effective
at the time of such transfer) or pursuant to Rule 144 under the Securities Act or any similar
provision then in force, or such Common Stock has been issued upon conversion of Notes that have

been transferred pursuant to a registration statement that has been declared effective under the
Securities Act or pursuant to Rule 144 under the Securities Act or any similar provision then in
force, or unless otherwise agreed by the Company in writing with written notice thereof to the
transfer agent:

THE COMMON STOCK EVIDENCED HEREBY HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS, AND, ACCORDINGLY, MAY NOT BE
OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. THE HOLDER HEREOF AGREES THAT,
UNTIL THE EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO SALES OF THE COMMON STOCK EVIDENCED HEREBY
UNDER RULE 144(k) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION), (1) IT WILL NOT RESELL OR
OTHERWISE TRANSFER THE COMMON STOCK EVIDENCED HEREBY EXCEPT (A) TO ATHEROGENICS, INC. OR ANY
SUBSIDIARY THEREOF, (B) TO A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT) IN COMPLIANCE WITH RULE 144A, (C) PURSUANT TO THE EXEMPTION FROM REGISTRATION
PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE) OR (D) PURSUANT TO A REGISTRATION
STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH CONTINUES TO BE
EFFECTIVE AT THE TIME OF SUCH TRANSFER); (2) PRIOR TO SUCH TRANSFER (OTHER THAN A TRANSFER PURSUANT
TO CLAUSE 1(D) ABOVE), IT WILL FURNISH TO AMERICAN STOCK TRANSFER & TRUST COMPANY, AS TRANSFER
AGENT (OR A SUCCESSOR TRANSFER AGENT, AS APPLICABLE), SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER
INFORMATION AS SUCH TRANSFER AGENT 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; AND (3) IT WILL DELIVER TO EACH PERSON TO WHOM THE COMMON STOCK
EVIDENCED HEREBY IS TRANSFERRED (OTHER THAN A TRANSFER PURSUANT TO CLAUSE 1(D) ABOVE) A NOTICE
SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. THIS LEGEND WILL BE REMOVED UPON THE EARLIER OF THE
TRANSFER OF THE COMMON STOCK EVIDENCED HEREBY PURSUANT TO CLAUSE 1(D) ABOVE OR UPON ANY TRANSFER OF
THE COMMON STOCK EVIDENCED HEREBY AFTER THE EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO SALES OF
THE SECURITY EVIDENCED HEREBY UNDER RULE 144(k) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR
PROVISION).

     Any such Common Stock as to which such restrictions on transfer shall have expired in
accordance with their terms or as to which the conditions for removal of the foregoing legend set
forth therein have been satisfied may, upon surrender of the certificates representing such shares
of Common Stock for exchange in accordance with the procedures of the transfer agent for the Common
Stock, be exchanged for a new certificate or certificates for a like number of shares of Common
Stock, which shall not bear the restrictive legend required by this Section 2.05(d).

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     (e) Any Note or Common Stock issued upon the conversion of a Note that, prior to the
expiration of the holding period applicable to sales thereof under Rule 144(k) under the Securities
Act (or any successor provision), is purchased or owned by the Company or any Affiliate thereof may
not be resold by the Company or such Affiliate unless registered under the Securities Act or resold
pursuant to an exemption from the registration requirements of the Securities Act in a transaction
which results in such Notes or Common Stock, as the case may be, no longer being “Restricted
Securities” (as defined under Rule 144).

     (f) The Trustee shall have no responsibility or obligation to any Agent Members or any other
Person with respect to the accuracy of the books or records, or the acts or omissions, of the
Depositary or its nominee or of any participant or member thereof, with respect to any ownership
interest in the Notes or with respect to the delivery to any Agent Member or other Person (other
than the Depositary) of any notice (including any notice of redemption) or the payment of any
amount, under or with respect to such Notes. All notices and communications to be given to the
Noteholder and all payments to be made to Noteholders under the Notes shall be given or made only
to or upon the order of the registered Noteholders (which shall be the Depositary or its nominee in
the case of a Global Note). The rights of beneficial owners in any Global Note shall be exercised
only through the Depositary subject to the customary procedures of the Depositary. The Trustee may
rely and shall be fully protected in relying upon information furnished by the Depositary with
respect to its Agent Members.

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

     Section 2.06. Mutilated, Destroyed, Lost or Stolen Notes. In case any Note shall become
mutilated or be destroyed, lost or stolen, the Company in its discretion may execute, and upon its
written request the Trustee or an authenticating agent appointed by the Trustee shall authenticate
and make available for delivery, a new Note, bearing a number not contemporaneously outstanding, in
exchange and substitution for the mutilated Note, or in lieu of and in substitution for the Note so
destroyed, lost or stolen. In every case, the applicant for a substituted Note shall furnish to
the Company, to the Trustee and, if applicable, to such authenticating agent such security or
indemnity as may be required by them to save each of them harmless for any loss, liability, cost or
expense caused by or connected with such substitution, and, in every case of destruction, loss or
theft, the applicant shall also furnish to the Company, to the Trustee and, if applicable, to such
authenticating agent evidence to their satisfaction of the destruction, loss or theft of such Note
and of the ownership thereof.

     Following receipt by the Trustee or such authenticating agent, as the case may be, of
satisfactory security or indemnity and evidence, as described in the preceding paragraph, the
Trustee or such authenticating agent may authenticate any such substituted Note and make available
for delivery such Note. Upon the issuance of any substituted Note, the Company may require the
payment by the holder of a sum sufficient to cover any tax, assessment or other

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governmental charge that may be imposed in relation thereto and any other expenses connected
therewith. In case any Note which has matured or is about to mature or has been tendered for
redemption upon a Designated Event (and not withdrawn) or is to be converted into Common Stock
shall become mutilated or be destroyed, lost or stolen, the Company may, instead of issuing a
substitute Note, pay or authorize the payment of or convert or authorize the conversion of the same
(without surrender thereof except in the case of a mutilated Note), as the case may be, if the
applicant for such payment or conversion shall furnish to the Company, to the Trustee and, if
applicable, to such authenticating agent such security or indemnity as may be required by them to
save each of them harmless for any loss, liability, cost or expense caused by or in connection with
such substitution, and, in every case of destruction, loss or theft, the applicant shall also
furnish to the Company, the Trustee and, if applicable, any paying agent or conversion agent
evidence to their satisfaction of the destruction, loss or theft of such Note and of the ownership
thereof.

     Every substitute Note issued pursuant to the provisions of this Section 2.06 by virtue of the
fact that any Note is destroyed, lost or stolen shall constitute an additional contractual
obligation of the Company, whether or not the destroyed, lost or stolen Note shall be found at any
time, and shall be entitled to all the benefits of (but shall be subject to all the limitations set
forth in) this Indenture equally and proportionately with any and all other Notes duly issued
hereunder. To the extent permitted by law, all Notes shall be held and owned upon the express
condition that the foregoing provisions are exclusive with respect to the replacement or payment or
conversion or redemption of mutilated, destroyed, lost or stolen Notes and shall preclude any and
all other rights or remedies notwithstanding any law or statute existing or hereafter enacted to
the contrary with respect to the replacement or payment or conversion or redemption of negotiable
instruments or other securities without their surrender.

     Section 2.07. Temporary Notes. Pending the preparation of Notes in certificated form, the
Company may execute and the Trustee or an authenticating agent appointed by the Trustee shall, upon
the written request of the Company, authenticate and deliver temporary Notes (printed or
lithographed). Temporary Notes shall be issuable in any authorized denomination, and substantially
in the form of the Notes in certificated form, but with such omissions, insertions and variations
as may be appropriate for temporary Notes, all as may be determined by the Company. Every such
temporary Note shall be executed by the Company and authenticated by the Trustee or such
authenticating agent upon the same conditions and in substantially the same manner, and with the
same effect, as the Notes in certificated form. Without unreasonable delay, the Company will
execute and deliver to the Trustee or such authenticating agent Notes in certificated form and
thereupon any or all temporary Notes may be surrendered in exchange therefor, at each office or
agency maintained by the Company pursuant to Section 6.02 and the Trustee or such authenticating
agent shall authenticate and make available for delivery in exchange for such temporary Notes an
equal aggregate principal amount of Notes in certificated form. Such exchange shall be made by the
Company at its own expense and without any charge therefor. Until so exchanged, the temporary
Notes shall in all respects be entitled to the same benefits and subject to the same limitations
under this Indenture as Notes in certificated form authenticated and delivered hereunder.

     Section 2.08. Cancellation of Notes. All Notes surrendered for the purpose of payment,
redemption, conversion, exchange or registration of transfer shall, if surrendered to the Company

17

 

or any paying agent or any Note Registrar or any conversion agent, be surrendered to the
Trustee and promptly canceled by it, or, if surrendered to the Trustee, shall be promptly canceled
by it, and no Notes shall be issued in lieu thereof except as expressly permitted by any of the
provisions of this Indenture. The Trustee shall dispose of such canceled Notes in accordance with
its customary procedures. If the Company shall acquire any of the Notes, such acquisition shall
not operate as a redemption, or satisfaction of the indebtedness represented by such Notes unless
and until the same are delivered to the Trustee for cancellation.

     Section 2.09. CUSIP Numbers. The Company in issuing the Notes may use “CUSIP” numbers (if
then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption
as a convenience to Noteholders; provided that any such notice may state that no representation is
made as to the correctness of such numbers either as printed on the Notes or as contained in any
notice of a redemption and that reliance may be placed only on the other identification numbers
printed on the Notes, and any such redemption shall not be affected by any defect in or omission of
such numbers. The Company will promptly notify the Trustee of any change in the “CUSIP” numbers.

ARTICLE 3

Redemption Of Notes

     Section 3.01. Reserved.

     Section 3.02. Reserved.

     Section 3.03. Reserved.

     Section 3.04. Reserved.

     Section 3.05. Redemption At Option of Holders Upon a Designated Event.

     (a) If there shall occur a Designated Event at any time prior to maturity of the Notes, then
each Noteholder shall have the right (subject to the Company’s rights upon delivery of a Public
Acquisition Notice as defined in Section 3.09), at such holder’s option, to require the Company to
redeem for cash all of such holder’s Notes, or any portion thereof that is a multiple of $1,000
principal amount, on the date (the “Designated Event Redemption Date”) that is thirty (30) days
after the date of the Designated Event Notice (as defined in Section 3.05(b)) of such Designated
Event (or, if such 30th day is not a Business Day, the next succeeding Business Day) at a
redemption price equal to 100% of the principal amount thereof, together with accrued interest and
Liquidated Damages, if any, to, but excluding, the Designated Event Redemption Date. Such
redemption pursuant to this Section 3.05 shall be made (unless withdrawn as provided below) upon:

     (i) delivery to the Trustee (or other paying agent appointed by the Company) by a
Noteholder of a duly completed form entitled “Option to Elect Repayment Upon A Designated
Event” (the “Redemption Notice”) in the form set forth on the reverse of the Note during the
period beginning at any time from the opening of business on the date the

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Designated Event Notice is mailed until the close of business on the Designated Event
Redemption Date; and

     (ii) delivery or book-entry transfer of the Note or Notes to the Trustee (or other
paying agent appointed by the Company) at any time after delivery of the Designated Event
Notice (together with all necessary endorsements) at the Corporate Trust Office of the
Trustee (or other paying agent appointed by the Company) in the Borough of Manhattan as
provided in Section 6.02, such delivery being a condition to receipt by the holder of the
redemption price therefor; provided that such redemption price shall be so paid pursuant to
this Section 3.05 only if the Note so delivered to the Trustee (or other paying agent
appointed by the Company) shall conform in all respects to the description thereof in the
related Redemption Notice.

     The Company shall redeem, pursuant to this Section 3.05, a portion of a Note, if the principal
amount of such portion is $1,000 or a whole multiple of $1,000. Provisions of this Indenture that
apply to the redemption of all of a Note also apply to the redemption of such portion of such Note.
Upon presentation of any Note redeemed in part only, the Company shall execute and, upon the
Company’s written direction to the Trustee, the Trustee shall authenticate and make available for
delivery to the holder thereof, at the expense of the Company, a new Note or Notes, of authorized
denominations, in aggregate principal amount equal to the unredeemed portion of the Notes
presented.

     Notwithstanding anything herein to the contrary, any holder delivering to the Trustee (or
other paying agent appointed by the Company) the Redemption Notice contemplated by this Section
3.05 shall have the right to withdraw such Redemption Notice at any time prior to the close of
business on the Designated Event Redemption Date by delivery of a written notice of withdrawal to
the Trustee (or other paying agent appointed by the Company) in accordance with Section 3.06.

     The Trustee (or other paying agent appointed by the Company) shall promptly notify the Company
of the receipt by it of any Redemption Notice or written notice of withdrawal thereof.

     (b) On or before the tenth day after the occurrence of a Designated Event, the Company or at
its written request (which must be received by the Trustee at least five (5) Business Days prior to
the date the Trustee is requested to give notice as described below, unless the Trustee shall agree
in writing to a shorter period), the Trustee, in the name of and at the expense of the Company,
shall mail or cause to be mailed to all holders of record on the date of the Designated Event a
notice (the “Designated Event Notice”) of the occurrence of such Designated Event and of the
redemption right at the option of the holders arising as a result thereof. Such notice shall be
mailed by first class mail. The notice, if mailed in the manner herein provided, shall be
conclusively presumed to have been duly given, whether or not the holder receives such notice. If
the Company shall give such notice, the Company shall also deliver a copy of the Designated Event
Notice to the Trustee at such time as it is mailed to Noteholders. Concurrently with the mailing
of any Designated Event Notice, the Company shall issue a press release announcing such Designated
Event referred to in the Designated Event Notice, the form and content of which press release shall
be determined by the Company in its sole discretion. The failure to issue any such press release
or any defect therein shall not affect

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the validity of the Designated Event Notice or any proceedings for the redemption of any Note
which any Noteholder may elect to have the Company redeem as provided in this Section 3.05.

     Each Designated Event Notice shall specify the circumstances constituting the Designated
Event, the Designated Event Redemption Date, the price at which the Company shall be obligated to
redeem Notes, that the holder must exercise the redemption right on or prior to the close of
business on the Designated Event Redemption Date (the “Designated Event Expiration Time”), that the
holder shall have the right to withdraw any Notes surrendered prior to the Designated Event
Expiration Time, a description of the procedure which a Noteholder must follow to exercise such
redemption right and to withdraw any surrendered Notes, the place or places where the holder is to
surrender such holder’s Notes, the amount of interest and Liquidated Damages, if any, accrued on
each Note to the Designated Event Redemption Date and the CUSIP number or numbers of the Notes (if
then generally in use).

     No failure of the Company to give the foregoing notices and no defect therein shall limit the
Noteholders’ redemption rights or affect the validity of the proceedings for the redemption of the
Notes pursuant to this Section 3.05.

     (c) In the case of a reclassification, change, consolidation, merger, combination, sale or
conveyance to which Section 16.06 applies, in which the Common Stock of the Company is changed or
exchanged as a result into the right to receive stock, securities or other property or assets
(including cash), which includes shares of Common Stock of the Company or shares of 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 stock, securities or other property or
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 which
acquires such assets, as the case may be, shall execute and deliver to the Trustee a supplemental
indenture (accompanied by an Opinion of Counsel that such supplemental indenture complies with this
Indenture and 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 of the Notes
to cause the Company to redeem the Notes following a Designated Event, including without limitation
the applicable provisions of this Section 3.05 and the definitions of Common Stock and Designated
Event, as appropriate, as determined in good faith by the Company (which determination shall be
conclusive and binding), to make such provisions apply to such other Person if different from the
Company and the common stock issued by such Person (in lieu of the Company and the Common Stock of
the Company).

     (d) The Company will comply with the provisions of Rule 13e-4 and any other tender offer rules
under the Exchange Act to the extent then applicable in connection with the redemption rights of
the holders of Notes in the event of a Designated Event. In the event of any conflict between such
rules and the provisions hereof, the Company shall comply with such rules and, in such event, shall
be deemed to have complied with the inconsistent terms hereof.

     Section 3.06. Effect of Redemption Notice.

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     (a) Upon receipt by the Trustee (or other paying agent appointed by the Company) of the
Redemption Notice specified in Section 3.05(a), the holder of the Note in respect of which such
Redemption Notice was given shall (unless such Redemption Notice is validly withdrawn) thereafter
be entitled to receive solely the redemption price with respect to such Note. Such redemption
price shall be paid to such Noteholder, subject to receipt of funds and/or Notes by the Trustee (or
other paying agent appointed by the Company), promptly following the later of (x) the Designated
Event Redemption Date with respect to such Note (provided the holder has satisfied the conditions
in Section 3.05) and (y) the time of delivery or book-entry transfer of such Note to the Trustee
(or other paying agent appointed by the Company) by the holder thereof in the manner required by
Section 3.05. Notes in respect of which a Redemption Notice has been given by the holder thereof
may not be converted pursuant to Article 16 hereof on or after the date of the delivery of such
Redemption Notice unless such Redemption Notice has first been validly withdrawn.

     (b) A Redemption Notice may be withdrawn by means of a written notice of withdrawal delivered
to the office of the Trustee (or other paying agent appointed by the Company) in accordance with
the Redemption Notice at any time prior to the close of business on the Designated Event Redemption
Date, specifying:

     (i) the certificate number, if any, of the Note in respect of which such notice of
withdrawal is being submitted, or the appropriate Depositary information if the Note in
respect of which such notice of withdrawal is being submitted is represented by a Global
Note,

     (ii) the principal amount of the Note with respect to which such notice of withdrawal
is being submitted, and

     (iii) the principal amount, if any, of such Note which remains subject to the original
Redemption Notice and which has been or will be delivered for redemption by the Company.

     Section 3.07. Deposit of Redemption Price. (a) Prior to 10:00 a.m. (New York City time) on
the Business Day following the Designated Event Redemption Date, the Company shall deposit with the
Trustee (or other paying agent appointed by the Company; or, if the Company or a Subsidiary or an
Affiliate of either of them is acting as the paying agent, shall segregate and hold in trust as
provided in Section 6.04) an amount of cash (in immediately available funds if deposited on such
Business Day), sufficient to pay the aggregate redemption price of all the Notes or portions
thereof that are to be redeemed as of the Designated Event Redemption Date.

     (b) If the Trustee or other paying agent appointed by the Company, or the Company or a
Subsidiary or Affiliate of either of them, if such entity is acting as the paying agent, on the
Business Day following the Designated Event Redemption Date, holds cash sufficient to pay the
aggregate redemption price of all the Notes, or portions thereof, that are to be redeemed as of the
Designated Event Redemption Date, on or after the Designated Event Redemption Date (i) the Notes
will cease to be outstanding, (ii) interest on the Notes will cease to accrue, and (iii) all other
rights of the holders of such Notes will terminate, whether or not book-entry transfer of the

21

 

Notes has been made or the Notes have been delivered to the Trustee or paying agent, other
than the right to receive the redemption price upon delivery of the Notes.

     Section 3.08. Repayment to the Company. The Trustee (or other paying agent appointed by the
Company) shall return to the Company any cash that remains unclaimed as provided in Section 14.04.

     Section 3.09. Public Acquirer Change Of Control. (a) Within 10 Trading Days prior to but
not including the expected effective date of a Public Acquirer Change of Control, the Company will
provide a notice (a “Public Acquisition Notice”) to all holders, the Trustee, any Paying Agent and
any Conversion Agent describing the anticipated Public Acquirer Change of Control and stating
whether the company will:

     (i) elect to adjust the Conversion Rate and related conversion obligation as described
in this Section 3.09, in which case the holders will not have the right to require the
Company redeem their Notes as described in Section 3.05 and will not have the right to the
Conversion Rate adjustment or Additional Shares described in Section 16.12; or

     (ii) not elect to adjust the Conversion Rate and related conversion obligation as
described in this Section 3.09, in which case the holders will have the right (if
applicable) to require the Company to redeem their Notes as described in Section 3.05 and/or
the right (if applicable) to the Additional Shares as described in Section 16.12, in each
case in accordance with the respective provisions of those Sections.

     (b) If the Public Acquisition Notice indicates that the Company is making the election
described in Section 3.09(a)(i), then the Conversion Rate and the related conversion obligation
shall be adjusted such that, from and after the effective date of the Public Acquirer Change of
Control, holders of the Notes will be entitled to convert their Notes into shares of Public
Acquirer Common Stock and the Conversion Rate will be adjusted by multiplying the Conversion Rate
in effect immediately before the Public Acquirer Change of Control by a fraction:

     (i) the numerator of which will be (A) in the case of a consolidation, merger or
mandatory share exchange pursuant to which Common Stock is converted into cash, securities
or other property, the value of cash and any other consideration (as determined by the Board
of Directors, which determination shall be conclusive and binding) paid or payable per share
of Common Stock or (B) in the case of any other Public Acquirer Change of Control, the
average of the Closing Price of the Common Stock for the five consecutive Trading Days prior
to but excluding the effective date of such Public Acquirer Change of Control; and

     (ii) the denominator of which will be the average of the Closing Price of the Public
Acquirer Common Stock for the five consecutive Trading Days prior to but excluding the
effective date of such Public Acquirer Change of Control.

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ARTICLE 4

Reserved

ARTICLE 5

Reserved

ARTICLE 6

Particular Covenants Of The Company

     Section 6.01. Payment of Principal, Premium and Interest. The Company covenants and agrees
that it will duly and punctually pay or cause to be paid the principal of and premium, if any
(including the redemption price upon redemption pursuant to Article 3), and interest, on each of
the Notes at the places, at the respective times and in the manner provided herein and in the
Notes.

     Section 6.02. Maintenance of Office or Agency. The Company will maintain an office or
agency in the Borough of Manhattan, The City of New York, where the Notes may be surrendered for
registration of transfer or exchange or for presentation for payment or for conversion or
redemption and where notices and demands to or upon the Company in respect of the Notes and this
Indenture may be served. The Company will give prompt written notice to the Trustee of the
location, and any change in the location, of such office or agency not designated or appointed by
the Trustee. If at any time the Company shall fail to maintain any such required office or agency
or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the Corporate Trust Office.

     The Company may also from time to time designate co-registrars and one or more offices or
agencies where the Notes may be presented or surrendered for any or all such purposes and may from
time to time rescind such designations. The Company will give prompt written notice of any such
designation or rescission and of any change in the location of any such other office or agency.

     The Company hereby initially designates the Trustee as paying agent, Note Registrar, Custodian
and conversion agent and the Corporate Trust Office shall be considered as one such office or
agency of the Company for each of the aforesaid purposes.

     So long as the Trustee is the Note Registrar, the Trustee agrees to mail, or cause to be
mailed, the notices set forth in Section 9.10(a) and the third paragraph of Section 9.11. If
co-registrars have been appointed in accordance with this Section, the Trustee shall mail such
notices only to the Company and the holders of Notes it can identify from its records.

     Section 6.03. Appointments to Fill Vacancies in Trustee’s Office. The Company, whenever
necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided
in Section 9.10, a Trustee, so that there shall at all times be a Trustee hereunder.

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     Section 6.04. Provisions as to Paying Agent. (a) If the Company shall appoint a paying
agent other than the Trustee, or if the Trustee shall appoint such a paying agent, the Company will
cause such paying agent to execute and deliver to the Trustee an instrument in which such agent
shall agree with the Trustee, subject to the provisions of this Section 6.04:

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

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

     (3) that at any time during the continuance of an Event of Default, upon request of the
Trustee, it will forthwith pay to the Trustee all sums so held in trust.

     The Company shall, on or before each due date of the principal of, premium, if any, or
interest on the Notes, deposit with the paying agent a sum (in funds which are immediately
available on the due date for such payment) sufficient to pay such principal, premium, if any, or
interest, and (unless such paying agent is the Trustee) the Company will promptly notify the
Trustee of any failure to take such action; provided that if such deposit is made on the due date,
such deposit shall be received by the paying agent by 10:00 a.m. New York City time, on such date.

     (b) 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 the Notes, set aside, segregate and hold in trust
for the benefit of the holders of the Notes a sum sufficient to pay such principal, premium, if
any, or interest so becoming due and will promptly notify the Trustee of any failure to take such
action and of any failure by the Company (or any other obligor under the Notes) to make any payment
of the principal of, premium, if any, or interest on the Notes when the same shall become due and
payable.

     (c) Anything in this Section 6.04 to the contrary notwithstanding, the Company may, at any
time, for the purpose of obtaining a satisfaction and discharge of this Indenture, or for any other
reason, pay or cause to be paid to the Trustee all sums held in trust by the Company or any paying
agent hereunder as required by this Section 6.04, such sums to be held by the Trustee upon the
trusts herein contained and upon such payment by the Company or any paying agent to the Trustee,
the Company or such paying agent shall be released from all further liability with respect to such
sums.

     (d) Anything in this Section 6.04 to the contrary notwithstanding, the agreement to hold sums
in trust as provided in this Section 6.04 is subject to Sections 14.03 and 14.04.

     The Trustee shall not be responsible for the actions of any other paying agents (including the
Company if acting as its own paying agent) and shall have no control of any funds held by such
other paying agents.

24

 

     Section 6.05. Existence. Subject to Article 13, the Company will do or cause to be done all
things necessary to preserve and keep in full force and effect its existence and rights (charter
and statutory); provided that the Company shall not be required to preserve any such right if the
Company 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 Noteholders.

     Section 6.06. 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 kept 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
carried on in connection therewith may be properly and advantageously conducted at all times;
provided 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 subsidiary and not disadvantageous
in any material respect to the Noteholders.

     Section 6.07. 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 Significant Subsidiary or upon
the income, profits or property of the Company or any Significant Subsidiary, (ii) all claims for
labor, materials and supplies which, if unpaid, might by law become a lien or charge upon the
property of the Company or any Significant Subsidiary and (iii) all stamp taxes 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, conversion or redemption of any Notes or with
respect to this Indenture; provided that, in the case of clauses (i) and (ii), the Company shall
not be required to 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, or (B) if the amount, applicability or validity is being contested in good
faith by appropriate proceedings.

     Section 6.08. Rule 144A Information Requirement. Within the period prior to the expiration
of the holding period applicable to sales of Notes or any Common Stock issuable upon conversion
thereof under Rule 144(k) under the Securities Act (or any successor provision), the Company
covenants and agrees that it shall, during any period in which it is not subject to Section 13 or
15(d) under the Exchange Act, make available to any holder or beneficial holder of Notes or any
Common Stock issued upon conversion thereof which continue to be Restricted Securities in
connection with any sale thereof and any prospective purchaser of Notes or such Common Stock
designated by such holder or beneficial holder, the information required pursuant to Rule
144A(d)(4) under the Securities Act upon the request of any holder or beneficial holder of the
Notes or such Common Stock and it will take such further action as any holder or beneficial holder
of such Notes or such Common Stock may reasonably request, all to the extent required from time to
time to enable such holder or beneficial holder to sell its Notes or Common Stock without
registration under the Securities Act within the limitation of the exemption provided by Rule 144A,
as such Rule may be amended from time to time. Upon the request of

25

 

any holder or any beneficial holder of the Notes or such Common Stock, the Company will
deliver to such holder a written statement as to whether it has complied with such requirements.

     Section 6.09. Stay, Extension and Usury Laws. The Company covenants (to the extent that it
may lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever
claim or take the benefit or advantage of, any stay, extension or usury law or other law which
would prohibit or forgive the Company from paying all or any portion of the principal of, premium,
if any, or interest on the Notes as contemplated herein, wherever enacted, now or at any time
hereafter in force, or which may affect the covenants or the performance of this Indenture and the
Company (to the extent it may lawfully do so) hereby expressly waives all benefit or advantage of
any such law, and covenants that it will not, by resort to any such law, hinder, delay or impede
the execution of any power herein granted to the Trustee, but will suffer and permit the execution
of every such power as though no such law had been enacted.

     Section 6.10. Compliance Certificate. The Company shall deliver to the Trustee, within one
hundred twenty (120) days after the end of each fiscal year of the Company beginning with fiscal
year ending December 31, 2005, a certificate signed on behalf of the Company by either the
principal executive officer, principal financial officer or principal accounting officer of the
Company, stating whether or not to the best knowledge of the signer thereof the Company is in
default in the performance and observance of any of the terms, provisions and conditions of this
Indenture (without regard to any period of grace or requirement of notice provided hereunder) and,
if the Company shall be in default, specifying all such defaults and the nature and the status
thereof of which the signer may have knowledge.

     The Company will deliver to the Trustee, forthwith upon becoming aware of (i) any default in
the performance or observance of any covenant, agreement or condition contained in this Indenture,
or (ii) 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.

     Any notice required to be given under this Section 6.10 shall be delivered to a Responsible
Officer of the Trustee at its Corporate Trust Office.

     Section 6.11. Liquidated Damages Notice. In the event that the Company is required to pay
Liquidated Damages to holders of Notes pursuant to the Registration Rights Agreement, the Company
will provide written notice (“Liquidated Damages Notice”) to the Trustee of its obligation to pay
Liquidated Damages no later than fifteen (15) days prior to the proposed payment date for the
Liquidated Damages, and the Liquidated Damages Notice shall set forth the amount of Liquidated
Damages to be paid by the Company on such payment date. The Trustee shall not at any time be under
any duty or responsibility to any holder of Notes to determine the Liquidated Damages, or with
respect to the nature, extent or calculation of the amount of Liquidated Damages when made, or with
respect to the method employed in such calculation of the Liquidated Damages.

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ARTICLE 7

Noteholders’ Lists And Reports By The Company And The Trustee

     Section 7.01. Noteholders’ Lists. The Company covenants and agrees that it will furnish or
cause to be furnished to the Trustee, semiannually, not more than fifteen (15) days after each
February 1 and August 1 in each year beginning with August 1, 2005, and at such other times as the
Trustee may request in writing, within thirty (30) days after receipt by the Company of any such
request (or such lesser time as the Trustee may reasonably request in order to enable it to timely
provide any notice to be provided by it hereunder), a list in such form as the Trustee may
reasonably require of the names and addresses of the holders of Notes as of a date not more than
fifteen (15) days (or such other date as the Trustee may reasonably request in order to so provide
any such notices) prior to the time such information is furnished, except that no such list need be
furnished by the Company to the Trustee so long as the Trustee is acting as the sole Note
Registrar.

     Section 7.02. Preservation And Disclosure Of Lists. (a) The Trustee shall preserve, in as
current a form as is reasonably practicable, all information as to the names and addresses of the
holders of Notes contained in the most recent list furnished to it as provided in Section 7.01 or
maintained by the Trustee in its capacity as Note Registrar or co-registrar in respect of the
Notes, if so acting. The Trustee may destroy any list furnished to it as provided in Section 7.01
upon receipt of a new list so furnished.

     (b) The rights of Noteholders to communicate with other holders of Notes with respect to their
rights under this Indenture or under the Notes, and the corresponding rights and duties of the
Trustee, shall be as provided by the Trust Indenture Act.

     (c) Every Noteholder, 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 of
Notes made pursuant to the Trust Indenture Act.

     Section 7.03. Reports By Trustee. (a) Within sixty (60) days after May 15 of each year
commencing with the year 2005, the Trustee shall transmit to holders of Notes such reports dated as
of May 15 of the year in which such reports are made 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. In the event that no events have occurred under the applicable
sections of the Trust Indenture Act the Trustee shall be under no duty or obligation to provide
such reports.

     (b) A copy of such report shall, at the time of such transmission to holders of Notes, be
filed by the Trustee with each stock exchange and automated quotation system upon which the Notes
are listed and with the Company. The Company will promptly notify the Trustee in writing when the
Notes are listed on any stock exchange or automated quotation system or delisted therefrom.

     Section 7.04. Reports by Company. The Company shall file with the Trustee (and the
Commission if at any time after the Indenture becomes qualified under
the Trust Indenture Act),

27

 

and transmit to holders of Notes, 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, whether or not the Notes are governed by 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 Exchange Act shall be filed with or otherwise be made available to
the Trustee within fifteen (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 of such shall not constitute constructive notice of any information
contained therein or determinable from information contained therein, including the Company’s
compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely
exclusively on an Officers’ Certificates).

ARTICLE 8

Remedies Of The Trustee And Noteholders On An Event Of Default

     Section 8.01. Events Of Default. In case one or more of the following Events of Default
(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) shall have occurred and be
continuing:

     (a) default in the payment of any installment of accrued but unpaid interest or Liquidated
Damages upon any of the Notes as and when the same shall become due and payable, and continuance of
such default for a period of thirty (30) days; or

     (b) default in the payment of the principal of or premium, if any, on any of the Notes as and
when the same shall become due and payable either at maturity or in connection with any redemption
pursuant to Article 3, by acceleration or otherwise; or

     (c) failure on the part of the Company to provide a Designated Event Notice upon a Designated
Event in accordance with Section 3.05(b); or

     (d) failure on the part of the Company duly to observe or perform any other of the covenants
or agreements on the part of the Company in the Notes or in this Indenture (other than a covenant
or agreement a default in whose performance or whose breach is elsewhere in this Section 8.01
specifically dealt with) continued for a period of sixty (60) days after the date on which written
notice of such failure, requiring the Company to remedy the same, shall have been given to the
Company by the Trustee, or the Company and a Responsible Officer of the Trustee by the holders of
at least twenty-five percent (25%) in aggregate principal amount of the Notes at the time
outstanding determined in accordance with Section 10.04; or

     (e) the Company shall commence a voluntary case or other proceeding seeking liquidation,
reorganization or other relief with respect to the Company or its debts under any bankruptcy,
insolvency or other similar law now or hereafter in effect or seeking the appointment of a trustee,
receiver, liquidator, custodian or other similar official of the Company or any substantial part of
the property of the Company, or shall consent to any such relief or to the

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appointment of or taking possession by any such official in an involuntary case or other
proceeding commenced against the Company, or shall make a general assignment for the benefit of
creditors, or shall fail generally to pay its debts as they become due; or

     (f) an involuntary case or other proceeding shall be commenced against the Company seeking
liquidation, reorganization or other relief with respect to the Company or its debts under any
bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment
of a trustee, receiver, liquidator, custodian or other similar official of the Company or any
substantial part of the property of the Company, and such involuntary case or other proceeding
shall remain undismissed and unstayed for a period of sixty (60) consecutive days; or

     (g) default in the payment of principal when due at stated maturity or resulting in
acceleration of other indebtedness of the Company for borrowed money where the aggregate principal
amount with respect to which the default or acceleration has occurred exceeds $10 million and such
acceleration has not been rescinded or annulled within a period of 30 days after written notice of
such failure, requiring the Company to remedy the same, shall have been given to the Company by the
Trustee, or to the Company and the Trustee by the holders of at least 25% in aggregate principal
amount of the Notes at the time outstanding determined in accordance with Section 10.04;

then, and in each and every such case (other than an Event of Default specified in Section 8.01(e)
or 8.01(f)), unless the principal of all of the Notes shall have already become due and payable,
either the Trustee or the holders of not less than twenty-five percent (25%) in aggregate principal
amount of the Notes then outstanding hereunder determined in accordance with Section 10.04, by
notice in writing to the Company (and to the Trustee if given by Noteholders), may declare the
principal of and premium, if any, on all the Notes and the interest and Liquidated Damages, if any,
accrued thereon to be due and payable immediately, and upon any such declaration the same shall
become and shall be immediately due and payable, anything in this Indenture or in the Notes
contained to the contrary notwithstanding. If an Event of Default specified in Section 8.01(e) or
8.01(f) occurs, the principal of all the Notes and the interest and Liquidated Damages, if any,
accrued thereon shall be immediately and automatically due and payable without necessity of further
action. This provision, however, is subject to the conditions that if, at any time after the
principal of the Notes shall have been so declared due and payable, and before any judgment or
decree for the payment of the monies due shall have been obtained or entered as hereinafter
provided, the Company shall pay or shall deposit with the Trustee a sum sufficient to pay all
matured installments of unpaid interest and Liquidated Damages, if any, upon all Notes and the
principal of and premium, if any, on any and all Notes which shall have become due otherwise than
by acceleration (with interest on overdue installments of interest and Liquidated Damages, if any
(to the extent that payment of such interest is enforceable under applicable law) and on such
principal and premium, if any, at the rate borne by the Notes, to the date of such payment or
deposit) and amounts due to the Trustee pursuant to Section 9.06, and if any and all defaults under
this Indenture, other than the nonpayment of principal of and premium, if any, and accrued interest
and Liquidated Damages, if any, on Notes which shall have become due by acceleration, shall have
been cured or waived pursuant to Section 8.07, then and in every such case the holders of a
majority in aggregate principal amount of the Notes then outstanding, by written notice to the
Company and to the Trustee, may waive all defaults or Events of Default and rescind and annul such
declaration and its consequences; but no such waiver or rescission

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and annulment shall extend to or shall affect any subsequent default or Event of Default, or shall
impair any right consequent thereon. The Company shall notify in writing a Responsible Officer of
the Trustee, promptly upon becoming aware thereof, of any Event of Default.

     In case the Trustee shall have proceeded to enforce any right under this Indenture and such
proceedings shall have been discontinued or abandoned because of such waiver or rescission and
annulment or for any other reason or shall have been determined adversely to the Trustee, then and
in every such case the Company, the holders of Notes, and the Trustee shall be restored
respectively to their several positions and rights hereunder, and all rights, remedies and powers
of the Company, the holders of Notes, and the Trustee shall continue as though no such proceeding
had been taken.

     Section 8.02. Payments of Notes on Default; Suit Therefor. The Company covenants that (a)
in case default shall be made in the payment of any installment of interest or Liquidated Damages,
if any, upon any of the Notes as and when the same shall become due and payable, and such default
shall have continued for a period of thirty (30) days, or (b) in case default shall be made in the
payment of the principal of or premium, if any, on any of the Notes as and when the same shall have
become due and payable, whether at maturity of the Notes or in connection with any redemption, by
or under this Indenture, declaration or otherwise, then, upon demand of the Trustee, the Company
will pay to the Trustee, for the benefit of the holders of the Notes, the whole amount that then
shall have become due and payable on all such Notes for principal and premium, if any, or interest
and Liquidated Damages, if any, as the case may be, with interest upon the overdue principal and
premium, if any, and (to the extent that payment of such interest is enforceable under applicable
law) upon the overdue installments of interest and Liquidated Damages, if any, at the rate borne by
the Notes, plus 1% and, in addition thereto, such further amount as shall be sufficient to cover
the costs and expenses of collection, including reasonable compensation to the Trustee, its agents,
attorneys and counsel, and all other amounts due the Trustee under Section 9.06. Until such demand
by the Trustee, the Company may pay the principal of and premium, if any, and interest and
Liquidated Damages, if any, on the Notes to the registered holders, whether or not the Notes are
overdue.

     In case the Company shall fail forthwith to pay such amounts upon such demand, the Trustee, in
its own name and as trustee of an express trust, shall be entitled and empowered to institute any
actions or proceedings at law or in equity for the collection of the sums so due and unpaid, and
may prosecute any such action or proceeding to judgment or final decree, and may enforce any such
judgment or final decree against the Company or any other obligor on the Notes and collect in the
manner provided by law out of the property of the Company or any other obligor on the Notes
wherever situated the monies adjudged or decreed to be payable.

     In case there shall be pending proceedings for the bankruptcy or for the reorganization of the
Company or any other obligor on the Notes under Title 11 of the United States Code, or any other
applicable law, or in case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or taken possession of
the Company or such other obligor, the property of the Company or such other obligor, or in the
case of any other judicial proceedings relative to the Company or such other obligor upon the
Notes, or to the creditors or property of the Company or such other obligor, the Trustee,
irrespective of whether the principal of the Notes shall then be due and payable as therein

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expressed or by declaration or otherwise and irrespective of whether the Trustee shall have
made any demand pursuant to the provisions of this Section 8.02, shall be entitled and empowered,
by intervention in such proceedings or otherwise, to file and prove a claim or claims for the whole
amount of principal, premium, if any, and interest and Liquidated Damages, if any, owing and unpaid
in respect of the Notes, and, in case of any judicial proceedings, to file such proofs of claim and
other papers or documents as may be necessary or advisable in order to have the claims of the
Trustee and of the Noteholders allowed in such judicial proceedings relative to the Company or any
other obligor on the Notes, its or their creditors, or its or their property, and to collect and
receive any monies or other property payable or deliverable on any such claims, and to distribute
the same after the deduction of any amounts due the Trustee under Section 9.06, and to take any
other action with respect to such claims, including participating as a member of any official
committee of creditors, as it reasonably deems necessary or advisable, and, unless prohibited by
law or applicable regulations, and any receiver, assignee or trustee in bankruptcy or
reorganization, liquidator, custodian or similar official is hereby authorized by each of the
Noteholders 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 Noteholders, to pay to the Trustee any amount due it
for reasonable compensation, expenses, advances and disbursements, including counsel fees and
expenses incurred by it up to the date of such distribution. To the extent that such payment of
reasonable compensation, expenses, advances and disbursements out of the estate in any such
proceedings shall be denied for any reason, payment of the same shall be secured by a lien on, and
shall be paid out of, any and all distributions, dividends, monies, securities and other property
which the holders of the Notes may be entitled to receive in such proceedings, whether in
liquidation or under any plan of reorganization or arrangement or otherwise.

     All rights of action and of asserting claims under this Indenture, or under any of the Notes,
may be enforced by the Trustee without the possession of any of the Notes, or the production
thereof at any trial or other proceeding relative thereto, and any such suit or proceeding
instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any
recovery of judgment shall, after provision for 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 Notes.

     In any proceedings brought by the Trustee (and in any proceedings involving the interpretation
of any provision of this Indenture to which the Trustee shall be a party) the Trustee shall be held
to represent all the holders of the Notes, and it shall not be necessary to make any holders of the
Notes parties to any such proceedings.

     Section 8.03. Application of Monies Collected By Trustee. Any monies collected by the
Trustee pursuant to this Article 8 shall be applied in the order following, at the date or dates
fixed by the Trustee for the distribution of such monies, upon presentation of the several Notes,
and stamping thereon 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 9.06;

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     SECOND: In case the principal of the outstanding Notes shall not have become due and be
unpaid, to the payment of interest on the Notes in default in the order of the maturity of the
installments of such interest, with interest (to the extent that such interest has been collected
by the Trustee) upon the overdue installments of interest at the rate borne by the Notes, such
payments to be made ratably to the Persons entitled thereto;

     THIRD: In case the principal of the outstanding Notes shall have become due, by declaration or
otherwise, and be unpaid to the payment of the whole amount then owing and unpaid upon the Notes
for principal and premium, if any, and interest, with interest on the overdue principal and
premium, if any, and (to the extent that such interest has been collected by the Trustee) upon
overdue installments of interest at the rate borne by the Notes, and in case such monies shall be
insufficient to pay in full the whole amounts so due and unpaid upon the Notes, then to the payment
of such principal and premium, if any, and interest without preference or priority of principal and
premium, if any, over interest, or of interest over principal and premium, if any, or of any
installment of interest over any other installment of interest, or of any Note over any other Note,
ratably to the aggregate of such principal and premium, if any, and accrued and unpaid interest;
and

     FOURTH: To the payment of the remainder, if any, to the Company or any other Person lawfully
entitled thereto.

     Section 8.04. Proceedings by Noteholder. No Noteholder shall have any right by virtue of or
by reference to any provision of this Indenture to institute any suit, action or proceeding in
equity or at law upon or under or with respect to this Indenture, or for the appointment of a
receiver, trustee, liquidator, custodian or other similar official, or for any other remedy
hereunder, unless such holder previously shall have given to the Trustee written notice of an Event
of Default and of the continuance thereof, as hereinbefore provided, and unless also the holders of
not less than twenty-five percent (25%) in aggregate principal amount of the Notes then outstanding
shall have made written request upon the Trustee to institute such action, suit or proceeding in
its own name as Trustee hereunder and shall have offered to the Trustee such reasonable security or
indemnity as it may require against the costs, expenses and liabilities to be incurred therein or
thereby, and the Trustee for sixty (60) days after its receipt of such notice, request and offer of
indemnity, shall have neglected or refused to institute any such action, suit or proceeding and no
direction inconsistent with such written request shall have been given to the Trustee pursuant to
Section 8.07; it being understood and intended, and being expressly covenanted by the taker and
holder of every Note with every other taker and holder and the Trustee, that no one or more
Noteholders shall have any right in any manner whatever by virtue of or by reference to any
provision of this Indenture to affect, disturb or prejudice the rights of any other holder of
Notes, or to obtain or seek to obtain priority over or preference to any other such holder, or to
enforce any right under this Indenture, except in the manner herein provided and for the equal,
ratable and common benefit of all Noteholders (except as otherwise provided herein). For the
protection and enforcement of this Section 8.04, each and every Noteholder and the Trustee shall be
entitled to such relief as can be given either at law or in equity.

     Notwithstanding any other provision of this Indenture and any provision of any Note, the right
of any Noteholder to receive payment of the principal of and premium, if any (including the
redemption price upon redemption pursuant to Article 8), and accrued interest on such Note, on

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or after the respective due dates expressed in such Note or in the event of redemption, or to
institute suit for the enforcement of any such payment on or after such respective dates against
the Company shall not be impaired or affected without the consent of such Noteholder.

     Anything in this Indenture or the Notes to the contrary notwithstanding, any Noteholder,
without the consent of either the Trustee or any other Noteholder, in its own behalf and for its
own benefit, may enforce, and may institute and maintain any proceeding suitable to enforce, its
rights of conversion as provided herein.

     Section 8.05. Proceedings By Trustee. In case of an Event of Default, the Trustee may, in
its discretion, proceed to protect and enforce the rights vested in it by this Indenture by such
appropriate judicial proceedings as are necessary to protect and enforce any of such rights, either
by suit in equity or by action at law or by proceeding in bankruptcy or otherwise, whether for the
specific enforcement of any covenant or agreement contained in this Indenture or in aid of the
exercise of any power granted in this Indenture, or to enforce any other legal or equitable right
vested in the Trustee by this Indenture or by law.

     Section 8.06. Remedies Cumulative And Continuing. Except as provided in Section 2.06, all
powers and remedies given by this Article 3 to the Trustee or to the Noteholders shall, to the
extent permitted by law, be deemed cumulative and not exclusive of any thereof or of any other
powers and remedies available to the Trustee or the Noteholders, by judicial proceedings or
otherwise, to enforce the performance or observance of the covenants and agreements contained in
this Indenture, and no delay or omission of the Trustee or of any Noteholder to exercise any right
or power accruing upon any default or Event of Default occurring and continuing as aforesaid shall
impair any such right or power, or shall be construed to be a waiver of any such default or any
acquiescence therein, and, subject to the provisions of Section 8.04, every power and remedy given
by this Article 8 or by law to the Trustee or to the Noteholders may be exercised from time to
time, and as often as shall be deemed expedient, by the Trustee or by the Noteholders.

     Section 8.07. Direction of Proceedings and Waiver of Defaults By Majority of Noteholders.
The holders of a majority in aggregate principal amount of the Notes at the time outstanding
determined in accordance with Section 10.04 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 (a) such direction shall not be in conflict with
any rule of law or with this Indenture, (b) the Trustee may take any other action which is not
inconsistent with such direction, (c) the Trustee may decline to take any action that would benefit
some Noteholders to the detriment of other Noteholders and (d) the Trustee may decline to take any
action that would involve the Trustee in personal liability. The holders of a majority in
aggregate principal amount of the Notes at the time outstanding determined in accordance with
Section 10.04 may, on behalf of the holders of all of the Notes, waive any past default or Event of
Default hereunder and its consequences except (i) a default in the payment of Interest or premium,
if any, on, or the principal of, the Notes, (ii) a failure by the Company to convert any Notes into
Common Stock, (iii) a default in the payment of the redemption price pursuant to Article 3 or (iv)
a default in respect of a covenant or provisions hereof which under Article 12 cannot be modified
or amended without the consent of the holders of each or all Notes then outstanding or affected
thereby. Upon any such waiver, the Company,

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the Trustee and the holders of the Notes shall be restored to their former positions and
rights hereunder; but no such waiver shall extend to any subsequent or other default or Event of
Default or impair any right consequent thereon. Whenever any default or Event of Default hereunder
shall have been waived as permitted by this Section 8.07, said default or Event of Default shall
for all purposes of the Notes and this Indenture be deemed to have been cured and to be not
continuing; but no such waiver shall extend to any subsequent or other default or Event of Default
or impair any right consequent thereon.

     Section 8.08. Notice of Defaults. The Trustee shall, within ninety (90) days after a
Responsible Officer of the Trustee has knowledge of the occurrence of a default, mail to all
Noteholders, as the names and addresses of such holders appear upon the Note Register, notice of
all defaults known to a Responsible Officer, unless such defaults shall have been cured or waived
before the giving of such notice; provided that except in the case of Default in the payment of the
principal of, or premium, if any, or interest or Liquidated Damages on any of the Notes, the
Trustee shall be protected in withholding such notice if and so long as a trust committee of
directors and/or Responsible Officers of the Trustee in good faith determines that the withholding
of such notice is in the interests of the Noteholders.

     Section 8.09. Undertaking To Pay Costs. All parties to this Indenture agree, and each
Noteholder by his acceptance thereof shall be deemed to have agreed, that any court may, in its
discretion, require, in any suit for the enforcement of any right or remedy under this Indenture,
or in any suit against the Trustee for any action taken 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; provided that the provisions of this Section 8.09
(to the extent permitted by law) shall not apply to any suit instituted by the Trustee, to any suit
instituted by any Noteholder, or group of Noteholders, holding in the aggregate more than ten
percent in principal amount of the Notes at the time outstanding determined in accordance with
Section 10.04, or to any suit instituted by any Noteholder for the enforcement of the payment of
the principal of or premium, if any, or interest on any Note on or after the due date expressed in
such Note or to any suit for the enforcement of the right to convert any Note in accordance with
the provisions of Article 16.

ARTICLE 9

The Trustee

     Section 9.01. Duties and Responsibilities of Trustee. The Trustee, prior to the occurrence
of an Event of Default and after the curing of all Events of Default which may have occurred,
undertakes to perform such duties and only such duties as are specifically set forth in this
Indenture. In case an Event of Default has occurred (which has not been cured or waived), the
Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the
same degree of care and skill in their exercise, as a prudent person would exercise or use under
the circumstances in the conduct of his own affairs.

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     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:

     (a) prior to the occurrence of an Event of Default and after the curing or waiving of all
Events of Default which may have occurred:

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

     (ii) in the absence of bad faith and willful misconduct on the part of the Trustee, the
Trustee may conclusively rely as to the truth of the statements and the correctness of the
opinions expressed therein, upon any certificates or opinions furnished to the Trustee and
conforming to the requirements of this Indenture; but, in the case of any such certificates
or opinions which by any provisions hereof are specifically required to be furnished to the
Trustee, the Trustee shall be under a duty to examine the same to determine whether or not
they conform to the requirements of this Indenture (but need not confirm or investigate the
accuracy of mathematical calculations or other facts stated therein);

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

     (c) 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 written direction of the holders of not less than a
majority in principal amount of the Notes at the time outstanding determined as provided in Section
10.04 relating to the time, method and place of conducting any proceeding for any remedy available
to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture;

     (d) whether or not therein 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;

     (e) the Trustee shall not be liable in respect of any payment (as to the correctness of
amount, entitlement to receive or any other matters relating to payment) or notice effected by the
Company or any paying agent or any records maintained by any co-registrar with respect to the
Notes;

     (f) if any party fails to deliver a notice relating to an event the fact of which, pursuant to
this Indenture, requires notice to be sent to the Trustee, the Trustee may conclusively rely on its
failure to receive such notice as reason to act as if no such event occurred; and

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     (g) the Trustee shall not be deemed to have knowledge of any Default or Event of Default
hereunder unless it shall have been notified in writing of such Default or Event of Default by the
Company or the holders of at least 10% in aggregate principal amount of the Notes.

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

     Section 9.02. Reliance on Documents, Opinions, Etc. Except as otherwise provided in Section
9.01:

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

     (b) any request, direction, order or demand of the Company mentioned herein shall be
sufficiently evidenced by an Officers’ Certificate (unless other evidence in respect thereof be
herein specifically prescribed); and any resolution of the Board of Directors may be evidenced to
the Trustee by a copy thereof certified by the Secretary or an Assistant Secretary of the Company;

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

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

     (e) 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, Note 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 at the sole cost of the
Company and shall incur no liability or additional liability of any kind by reason of such inquiry
or investigation;

     (f) 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

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responsible for any misconduct or negligence on the part of any agent or attorney appointed by
it with due care hereunder;

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

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

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

     (j) any permissive right or authority granted to the Trustee shall not be construed as a
mandatory duty; and

     (k) in no event shall the Trustee be responsible or liable for special, indirect or
consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit)
irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and
regardless of the form of action.

     Section 9.03. No Responsibility For Recitals, Etc. The recitals contained herein and in the
Notes (except in the Trustee’s certificate of authentication) shall be taken as the statements of
the Company, and the Trustee assumes no responsibility for the correctness of the same. The
Trustee makes no representations as to the validity or sufficiency of this Indenture or of the
Notes. The Trustee shall not be accountable for the use or application by the Company of any Notes
or the proceeds of any Notes authenticated and delivered by the Trustee in conformity with the
provisions of this Indenture.

     Section 9.04. Trustee, Paying Agents, Conversion Agents or Registrar May Own Notes. The
Trustee, any paying agent, any conversion agent or Note Registrar, in its individual or any other
capacity, may become the owner or pledgee of Notes with the same rights it would have if it were
not Trustee, paying agent, conversion agent or Note Registrar.

     Section 9.05. Monies to Be Held in Trust. Subject to the provisions of Section 14.04, all
monies received by the Trustee shall, until used or applied as herein provided, be held in trust
for the purposes for which they were received. 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 may be agreed in
writing from time to time by the Company and the Trustee.

     Section 9.06. Compensation and Expenses of Trustee. The Company covenants and agrees to pay
to the Trustee from time to time, and the Trustee shall be entitled to, such

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compensation for all services rendered by it hereunder in any capacity (which shall not be
limited by any provision of law in regard to the compensation of a trustee of an express trust) as
mutually agreed to from time to time in writing between the Company and the Trustee, and the
Company will pay or reimburse the Trustee upon its request for all reasonable expenses,
disbursements and advances reasonably incurred or made by the Trustee in accordance with any of the
provisions of this Indenture (including the reasonable compensation and the expenses and
disbursements of its counsel and of all Persons not regularly in its employ) except any such
expense, disbursement or advance as may arise from its negligence or bad faith. The Company also
covenants to indemnify the Trustee and any predecessor Trustee (and any officer, director or
employee of the Trustee), in any capacity under this Indenture and its agents and any
authenticating agent for, and to hold them harmless against, any and all loss, liability, damage,
claim or expense including taxes (other than taxes based on the income of the Trustee) incurred
without negligence or bad faith on the part of the Trustee or such officers, directors, employees
and agent or authenticating agent, as the case may be, and arising out of or in connection with the
acceptance or administration of this trust or in any other capacity hereunder, including the costs
and expenses of defending themselves against any claim (whether asserted by the Company, any holder
or any other Person) or liability in connection with enforcing the provisions of this Section 9.06,
except to the extent that such loss, damage, claim, liability or expense is due to its own
negligence or bad faith. The obligations of the Company under this Section 9.06 to compensate or
indemnify the Trustee and to pay or reimburse the Trustee for expenses, disbursements and advances
shall be secured by a lien prior to that of the Notes upon all property and funds held or collected
by the Trustee as such, except funds held in trust for the benefit of the holders of particular
Notes. The obligation of the Company under this Section shall survive the satisfaction and
discharge of this Indenture.

     When the Trustee and its agents and any authenticating agent incur expenses or render services
after an Event of Default specified in Section 8.01(e) or Section 8.01(f) with respect to the
Company occurs, the expenses and the compensation for the services are intended to constitute
expenses of administration under any bankruptcy, insolvency or similar laws.

     Section 9.07. Officers’ Certificate As Evidence. Except as otherwise provided in Section
9.01, whenever in the administration of the provisions of this Indenture the Trustee shall deem it
necessary or desirable that a matter be proved or established prior to taking or omitting any
action hereunder, such matter (unless other evidence in respect thereof be herein specifically
prescribed) may, in the absence of bad faith or willful misconduct on the part of the Trustee, be
deemed to be conclusively proved and established by an Officers’ Certificate delivered to the
Trustee.

     Section 9.08. Conflicting Interests of Trustee. 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 9.09. Eligibility of Trustee. 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 and has a
combined capital and surplus of at least $100,000,000 (or if such Person is a member of a bank
holding company system, its bank holding company shall have a combined capital and surplus of

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at least $100,000,000). If such Person publishes reports of condition at least annually,
pursuant to law or to the requirements of any supervising or examining authority, then for the
purposes of this Section the combined capital and surplus of such Person 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 9.09, it shall resign immediately in the manner and with the effect hereinafter specified
in this Article.

     Section 9.10. Resignation or Removal of Trustee.

     (a) The Trustee may at any time resign by giving written notice of such resignation to the
Company and to the holders of Notes. Upon receiving such notice of resignation, the Company shall
promptly appoint a successor trustee by written instrument, in duplicate, executed by order of the
Board of Directors, one copy of which instrument shall be delivered to the resigning Trustee and
one copy to the successor trustee. If no successor trustee shall have been so appointed and have
accepted appointment sixty (60) days after the mailing of such notice of resignation to the
Noteholders, the resigning Trustee may, upon ten (10) Business Days’ notice to the Company and the
Noteholders, appoint a successor identified in such notice or may petition, at the expense of the
Company, any court of competent jurisdiction for the appointment of a successor trustee, or, if any
Noteholder who has been a bona fide holder of a Note or Notes for at least six (6) months may,
subject to the provisions of Section 8.09, on behalf of himself and all others similarly situated,
petition any such court for the appointment of a successor trustee. Such court may thereupon,
after such notice, if any, as it may deem proper and prescribe, appoint a successor trustee.

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

     (i) the Trustee shall fail to comply with Section 9.08 after written request therefor
by the Company or by any Noteholder who has been a bona fide holder of a Note or Notes for
at least six (6) months; or

     (ii) the Trustee shall cease to be eligible in accordance with the provisions of
Section 9.09 and shall fail to resign after written request therefor by the Company or by
any such Noteholder; or

     (iii) 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, the Company may remove the Trustee and appoint a successor trustee by
written instrument, in duplicate, executed by order of the Board of Directors, one copy of which
instrument shall be delivered to the Trustee so removed and one copy to the successor trustee, or,
subject to the provisions of Section 8.09, any Noteholder who has been a bona fide holder of a Note
or Notes for at least six (6) 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; provided that if no successor Trustee shall have been appointed and have
accepted appointment sixty (60) days after either the Company or the

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Noteholders has removed the Trustee, or the Trustee resigns, the Trustee so removed may petition,
at the expense of the Company, any court of competent jurisdiction for an appointment of a
successor trustee. Such court may thereupon, after such notice, if any, as it may deem proper and
prescribe, remove the Trustee and appoint a successor trustee.

     (c) The holders of a majority in aggregate principal amount of the Notes at the time
outstanding may at any time remove the Trustee and nominate a successor trustee which shall be
deemed appointed as successor trustee unless, within ten (10) days after notice to the Company of
such nomination, the Company objects thereto, in which case the Trustee so removed or any
Noteholder, or if such Trustee so removed or any Noteholder fails to act, the Company, upon the
terms and conditions and otherwise as in Section 9.10(a) provided, may petition any court of
competent jurisdiction for an appointment of a successor trustee.

     (d) Any resignation or removal of the Trustee and appointment of a successor trustee pursuant
to any of the provisions of this Section 9.10 shall become effective upon acceptance of appointment
by the successor trustee as provided in Section 9.11.

     (e) Notwithstanding the replacement of the Trustee pursuant to this Section, the Company’s
obligations under Section 9.06 shall continue for the benefit of the retiring Trustee.

     Section 9.11. Acceptance by Successor Trustee. Any successor trustee appointed as provided
in Section 9.10 shall execute, acknowledge and deliver to the Company and to its predecessor
trustee an instrument accepting such appointment hereunder, and thereupon the resignation or
removal of the predecessor trustee shall become effective and such successor trustee, without any
further act, deed or conveyance, shall become vested with all the rights, powers, duties and
obligations of its predecessor hereunder, with like effect as if originally named as trustee
herein; but, nevertheless, on the written request of the Company or of the successor trustee, the
trustee ceasing to act shall, upon payment of any amount then due it pursuant to the provisions of
Section 9.06, execute and deliver an instrument transferring to such successor trustee all the
rights and powers of the trustee so ceasing to act. Upon request of any such successor trustee,
the Company shall execute any and all instruments in writing for more fully and certainly vesting
in and confirming to such successor trustee all such rights and powers. Any trustee ceasing to act
shall, nevertheless, retain a lien upon all property and funds held or collected by such trustee as
such, except for funds held in trust for the benefit of holders of particular Notes, to secure any
amounts then due it pursuant to the provisions of Section 9.06.

     No successor trustee shall accept appointment as provided in this Section 9.11 unless, at the
time of such acceptance, such successor trustee shall be qualified under the provisions of Section
9.08 and be eligible under the provisions of Section 9.09.

     Upon acceptance of appointment by a successor trustee as provided in this Section 9.11, the
Company (or the former trustee, at the written direction of the Company) shall mail or cause to be
mailed notice of the succession of such trustee hereunder to the holders of Notes at their
addresses as they shall appear on the Note Register. If the Company fails to mail such notice
within ten (10) days after acceptance of appointment by the successor trustee, the successor
trustee shall cause such notice to be mailed at the expense of the Company.

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     Section 9.12. Succession By Merger. 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 any trust
created by this Indenture), shall be the successor to the Trustee hereunder without the execution
or filing of any paper or any further act on the part of any of the parties hereto, provided that
in the case of any corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, such corporation shall be qualified under the provisions of Section 9.08
and eligible under the provisions of Section 9.09.

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

     Section 9.13. Preferential Collection of Claims. If and when the Trustee shall be or become
a creditor of the Company (or any other obligor upon the Notes), the Trustee shall be subject to
the provisions of the Trust Indenture Act regarding the collection of the claims against the
Company (or any such other obligor).

ARTICLE 10

The Noteholders

     Section 10.01. Action By Noteholders. Whenever in this Indenture it is provided that the
holders of a specified percentage in aggregate principal amount of the Notes may take any action
(including the making of any demand or request, the giving of any notice, consent or waiver or the
taking of any other action), the fact that at the time of taking any such action, the holders of
such specified percentage have joined therein may be evidenced (a) by any instrument or any number
of instruments of similar tenor executed by Noteholders in person or by agent or proxy appointed in
writing, or (b) by the record of the holders of Notes voting in favor thereof at any meeting of
Noteholders duly called and held in accordance with the provisions of Article 11, or (c) by a
combination of such instrument or instruments and any such record of such a meeting of Noteholders.
Whenever the Company or the Trustee solicits the taking of any action by the holders of the Notes,
the Company or the Trustee may fix in advance of such solicitation, a date as the record date for
determining holders entitled to take such action. The record date shall be not more than fifteen
(15) days prior to the date of commencement of solicitation of such action.

     Section 10.02. Proof of Execution by Noteholders. Subject to the provisions of Sections
9.01, 9.02 and 11.05, proof of the execution of any instrument by a Noteholder or its agent or

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proxy shall be sufficient if made in accordance with such reasonable rules and regulations as
may be prescribed by the Trustee or in such manner as shall be satisfactory to the Trustee. The
holding of Notes shall be proved by the registry of such Notes or by a certificate of the Note
Registrar.

     The record of any Noteholders’ meeting shall be proved in the manner provided in Section
11.06.

     Section 10.03. Who Are Deemed Absolute Owners. The Company, the Trustee, any paying agent,
any conversion agent and any Note Registrar may deem the Person in whose name such Note shall be
registered upon the Note Register to be, and may treat it as, the absolute owner of such Note
(whether or not such Note shall be overdue and notwithstanding any notation of ownership or other
writing thereon made by any Person other than the Company or any Note Registrar) for the purpose of
receiving payment of or on account of the principal of, premium, if any, and interest on such Note,
for conversion of such Note and for all other purposes; and neither the Company nor the Trustee nor
any paying agent nor any conversion agent nor any Note Registrar shall be affected by any notice to
the contrary. All such payments so made to any holder for the time being, or upon his order, shall
be valid, and, to the extent of the sum or sums so paid, effectual to satisfy and discharge the
liability for monies payable upon any such Note.

     Section 10.04. Company-owned Notes Disregarded. In determining whether the holders of the
requisite aggregate principal amount of Notes have concurred in any direction, consent, waiver or
other action under this Indenture, Notes which are owned by the Company or any other obligor on the
Notes or any Affiliate of the Company or any other obligor on the Notes shall be disregarded and
deemed not to be outstanding for the purpose of any such determination; provided that for the
purposes of determining whether the Trustee shall be protected in relying on any such direction,
consent, waiver or other action, only Notes which a Responsible Officer actually knows are so owned
shall be so disregarded. Notes so owned which have been pledged in good faith may be regarded as
outstanding for the purposes of this Section 10.04 if the pledgee shall establish to the
satisfaction of the Trustee the pledgee’s right to vote such Notes and that the pledgee is not the
Company, any other obligor on the Notes or any Affiliate of the Company or any such other obligor.
In the case of a dispute as to such right, any decision by the Trustee taken upon the advice of
counsel shall be full protection to the Trustee. Upon request of the Trustee, the Company shall
furnish to the Trustee promptly an Officers’ Certificate listing and identifying all Notes, if any,
known by the Company to be owned or held by or for the account of any of the above described
Persons, and, subject to Section 9.01, the Trustee shall be entitled to accept such Officers’
Certificate as conclusive evidence of the facts therein set forth and of the fact that all Notes
not listed therein are outstanding for the purpose of any such determination.

     Section 10.05. Revocation Of Consents, Future Holders Bound. At any time prior to (but not
after) the evidencing to the Trustee, as provided in Section 10.01, of the taking of any action by
the holders of the percentage in aggregate principal amount of the Notes specified in this
Indenture in connection with such action, any holder of a Note which is shown by the evidence to be
included in the Notes the holders of which have consented to such action may, by filing written
notice with the Trustee at its Corporate Trust Office and upon proof of holding as provided in
Section 10.02, revoke such action so far as concerns such Note. Except as aforesaid, any such
action taken by the holder of any Note shall be conclusive and binding upon such

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holder and upon all future holders and owners of such Note and of any Notes issued in exchange
or substitution therefor, irrespective of whether any notation in regard thereto is made upon such
Note or any Note issued in exchange or substitution therefor.

ARTICLE 11

Meetings Of Noteholders

     Section 11.01. Purpose Of Meetings. A meeting of Noteholders may be called at any time and
from time to time pursuant to the provisions of this Article 11 for any of the following purposes:

     (1) to give any notice to the Company or to the Trustee or to give any directions to
the Trustee permitted under this Indenture, or to consent to the waiving of any default or
Event of Default hereunder and its consequences, or to take any other action authorized to
be taken by Noteholders pursuant to any of the provisions of Article 8;

     (2) to remove the Trustee and nominate a successor trustee pursuant to the provisions
of Article 9;

     (3) to consent to the execution of an indenture or indentures supplemental hereto
pursuant to the provisions of Section 12.02; or

     (4) to take any other action authorized to be taken by or on behalf of the holders of
any specified aggregate principal amount of the Notes under any other provision of this
Indenture or under applicable law.

     Section 11.02. Call Of Meetings By Trustee. The Trustee may at any time call a meeting of
Noteholders to take any action specified in Section 11.01, to be held at such time and at such
place as the Trustee shall determine. Notice of every meeting of the Noteholders, setting forth
the time and the place of such meeting and in general terms the action proposed to be taken at such
meeting and the establishment of any record date pursuant to Section 10.01, shall be mailed to
holders of Notes at their addresses as they shall appear on the Note Register. Such notice shall
also be mailed to the Company. Such notices shall be mailed not less than twenty (20) nor more
than ninety (90) days prior to the date fixed for the meeting.

     Any meeting of Noteholders shall be valid without notice if the holders of all Notes then
outstanding are present in person or by proxy or if notice is waived before or after the meeting by
the holders of all Notes outstanding, and if the Company and the Trustee are either present by duly
authorized representatives or have, before or after the meeting, waived notice.

     Section 11.03. Call Of Meetings By Company Or Noteholders. In case at any time the Company,
pursuant to a resolution of its Board of Directors, or the holders of at least ten percent (10%) in
aggregate principal amount of the Notes then outstanding, shall have requested the Trustee to call
a meeting of Noteholders, 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

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such meeting within twenty (20) days after receipt of such request, then the Company or such
Noteholders may determine the time and the place for such meeting and may call such meeting to take
any action authorized in Section 11.01, by mailing notice thereof as provided in Section 11.02.

     Section 11.04. Qualifications For Voting. To be entitled to vote at any meeting of
Noteholders a person shall (a) be a holder of one or more Notes on the record date pertaining to
such meeting or (b) be a person appointed by an instrument in writing as proxy by a holder of one
or more Notes on the record date pertaining to such meeting. The only persons who shall be
entitled to be present or to speak at any meeting of Noteholders shall be the persons entitled to
vote at such meeting and their counsel and any representatives of the Trustee and its counsel and
any representatives of the Company and its counsel.

     Section 11.05. Regulations. Notwithstanding any other provisions of this Indenture, the
Trustee may make such reasonable regulations as it may deem advisable for any meeting of
Noteholders, in regard to proof of the holding of Notes 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 think fit.

     The Trustee shall, by an instrument in writing, appoint a temporary chairman of the meeting,
unless the meeting shall have been called by the Company or by Noteholders as provided in Section
11.03, in which case the Company or the Noteholders 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 holders of a majority in principal amount of the Notes
represented at the meeting and entitled to vote at the meeting.

     Subject to the provisions of Section 10.04, at any meeting each Noteholder or proxyholder
shall be entitled to one vote for each $1,000 principal amount of Notes held or represented by him;
provided that no vote shall be cast or counted at any meeting in respect of any Note 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 other than by virtue of Notes held by him or instruments in
writing as aforesaid duly designating him as the proxy to vote on behalf of other Noteholders. Any
meeting of Noteholders duly called pursuant to the provisions of Section 11.02 or 11.03 may be
adjourned from time to time by the holders of a majority of the aggregate principal amount of Notes
represented at the meeting, whether or not constituting a quorum, and the meeting may be held as so
adjourned without further notice.

     Section 11.06. Voting. The vote upon any resolution submitted to any meeting of Noteholders
shall be by written ballot on which shall be subscribed the signatures of the holders of Notes or
of their representatives by proxy and the outstanding principal amount of the Notes 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 in duplicate of the proceedings of each meeting of Noteholders 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

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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 mailed as provided in Section
11.02. The record shall show the principal amount of the Notes voting in favor of or against any
resolution. The record shall be signed and verified by the affidavits of the permanent chairman
and secretary of the meeting and one of the duplicates shall be delivered to the Company and the
other 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.

     Section 11.07. No Delay Of Rights By Meeting. Nothing contained in this Article 11 shall be
deemed or construed to authorize or permit, by reason of any call of a meeting of Noteholders or
any rights expressly or impliedly conferred hereunder to make such call, any hindrance or delay in
the exercise of any right or rights conferred upon or reserved to the Trustee or to the Noteholders
under any of the provisions of this Indenture or of the Notes.

ARTICLE 12

Supplemental Indentures

     Section 12.01. Supplemental Indentures Without Consent of Noteholders. The Company, when
authorized by the resolutions of the Board of Directors, and the Trustee may, from time to time,
and at any time enter into an indenture or indentures supplemental hereto for one or more of the
following purposes:

     (a) make provision with respect to the conversion rights of the holders of Notes pursuant to
the requirements of Section 16.06 and the redemption obligations of the Company pursuant to the
requirements of Section 3.05(c);

     (b) to convey, transfer, assign, mortgage or pledge to the Trustee as security for the Notes,
any property or assets;

     (c) to evidence the succession of another Person to the Company, or successive successions,
and the assumption by the successor Person of the covenants, agreements and obligations of the
Company pursuant to Article 13;

     (d) to add to the covenants of the Company such further covenants, restrictions or conditions
as the Board of Directors and the Trustee shall consider to be for the benefit of the holders of
Notes, and to make the occurrence, or the occurrence and continuance, of a default in any such
additional covenants, restrictions or conditions a default or an Event of Default permitting the
enforcement of all or any of the several remedies provided in this Indenture as herein set forth;
provided that in respect of any such additional covenant, restriction or condition, such
supplemental indenture may provide for a particular period of grace after default (which period may
be shorter or longer than that allowed in the case of other defaults) or may provide for an
immediate enforcement upon such default or may limit the remedies available to the Trustee upon
such default;

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     (e) to provide for the issuance under this Indenture of Notes in coupon form (including Notes
registrable as to principal only) and to provide for exchangeability of such Notes with the Notes
issued hereunder in fully registered form and to make all appropriate changes for such purpose;

     (f) to cure any ambiguity or to correct or supplement any provision contained herein or in any
supplemental indenture that may be defective or inconsistent with any other provision contained
herein or in any supplemental indenture, or to change, eliminate or add any new provisions in
regard to matters or questions arising under this Indenture that shall not materially and adversely
affect the interests of the holders of the Notes;

     (g) to evidence and provide for the acceptance of appointment hereunder by a successor Trustee
with respect to the Notes; or

     (h) to modify, eliminate or add to the provisions of this Indenture to such extent as shall be
necessary to effect the qualifications of this Indenture under the Trust Indenture Act, or under
any similar federal statute hereafter enacted.

     Upon the written request of the Company, accompanied by a copy of the resolutions of the Board
of Directors certified by its Secretary or Assistant Secretary authorizing the execution of any
supplemental indenture, the Trustee is hereby authorized to join with the Company in the execution
of any such supplemental indenture, to make any further appropriate agreements and stipulations
that may be therein contained and to accept the conveyance, transfer and assignment of any property
thereunder, but the Trustee shall not be obligated to, but may in its discretion, enter into any
supplemental indenture that affects the Trustee’s own rights, duties or immunities under this
Indenture or otherwise.

     Any supplemental indenture authorized by the provisions of this Section 12.01 may be executed
by the Company and the Trustee without the consent of the holders of any of the Notes at the time
outstanding, notwithstanding any of the provisions of Section 12.02.

     Section 12.02. Supplemental Indenture With Consent Of Noteholders. With the consent
(evidenced as provided in Article 10) of the holders of at least a majority in aggregate principal
amount of the Notes at the time outstanding, the Company, when authorized by the resolutions of the
Board of Directors, and the Trustee may, from time to time and at any time, 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 any supplemental indenture or of
modifying in any manner the rights of the holders of the Notes; provided that no such supplemental
indenture shall, without the consent of the holder of each Note so affected, (i) extend the fixed
maturity of such Note, (ii) reduce the rate or extend the time of payment of interest or Liquidated
Damages, if any, thereon, (iii) reduce the principal amount thereof or premium, if any, thereon, or
reduce any amount payable on redemption thereof, (iv) impair the right of any Noteholder to
institute suit for the payment thereof, (v) make the principal thereof or interest, Liquidated
Damages or premium, if any, thereon payable in any coin or currency other than that provided in
such Note, (vi) change the obligation of the Company to redeem such Note upon the happening of a
Designated Event in a manner adverse to such Noteholder, (vii) impair the right to convert such
Note or reduce the number of shares of

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Common Stock or the amount of any other property receivable upon conversion, subject to the
terms set forth herein, including Section 16.06, in each case, (viii) modify any of the provisions
of this Section 12.02 or Section 8.07, except to increase any such percentage or to provide that
certain other provisions of this Indenture cannot be modified or waived without the consent of the
holder of each Note so affected, (ix) change any obligation of the Company to maintain an office or
agency in the places and for the purposes set forth in Section 6.02, (x) reduce the quorum or
voting requirements set forth in Article 11 or (xi) reduce the aforesaid percentage of Notes, the
holders of which are required to consent to any such supplemental indenture.

     Upon the written request of the Company, accompanied by a copy of the resolutions of the Board
of Directors certified by its Secretary or Assistant Secretary authorizing the execution of any
such supplemental indenture, and upon the filing with the Trustee of evidence of the consent of
Noteholders as aforesaid, the Trustee shall join with the Company in the execution of such
supplemental indenture unless such supplemental indenture affects the Trustee’s own rights, duties
or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion,
but shall not be obligated to, enter into such supplemental indenture.

     It shall not be necessary for the consent of the Noteholders under this Section 12.02 to
approve the particular form of any proposed supplemental indenture, but it shall be sufficient if
such consent shall approve the substance thereof.

     Section 12.03. Effect Of Supplemental Indenture. Any supplemental indenture executed
pursuant to the provisions of this Article 12 shall comply with the Trust Indenture Act, as then in
effect, provided that this Section 12.03 shall not require such supplemental indenture or the
Trustee to be qualified under the Trust Indenture Act prior to the time such qualification is in
fact required under the terms of the Trust Indenture Act or the Indenture has been qualified under
the Trust Indenture Act, nor shall it constitute any admission or acknowledgment by any party to
such supplemental indenture that any such qualification is required prior to the time such
qualification is in fact required under the terms of the Trust Indenture Act or the Indenture has
been qualified under the Trust Indenture Act. Upon the execution of any supplemental indenture
pursuant to the provisions of this Article 12, this Indenture shall be and be deemed to be modified
and amended in accordance therewith and the respective rights, limitation of rights, obligations,
duties and immunities under this Indenture of the Trustee, the Company and the holders of Notes
shall thereafter be determined, exercised and enforced hereunder, subject in all respects to such
modifications and amendments and all the terms and conditions of any such supplemental indenture
shall be and be deemed to be part of the terms and conditions of this Indenture for any and all
purposes.

     Section 12.04. Notation On Notes. Notes authenticated and delivered after the execution of
any supplemental indenture pursuant to the provisions of this Article 12 may bear a notation in
form approved by the Trustee as to any matter provided for in such supplemental indenture. If the
Company or the Trustee shall so determine, new Notes so modified as to conform, in the opinion of
the Trustee and the Board of Directors, to any modification of this Indenture contained in any such
supplemental indenture may, at the Company’s expense, be prepared and executed by the Company,
authenticated by the Trustee (or an authenticating agent duly appointed by the Trustee pursuant to
Section 17.101) and delivered in exchange for the Notes then outstanding, upon surrender of such
Notes then outstanding.

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     Section 12.05. Evidence Of Compliance Of Supplemental Indenture To Be Furnished To Trustee.
Prior to entering into any supplemental indenture, the Trustee shall be provided with an Officers’
Certificate and an Opinion of Counsel as conclusive evidence that any supplemental indenture
executed pursuant hereto complies with the requirements of this Article 12 and is otherwise
authorized or permitted by this Indenture.

ARTICLE 13

Consolidation, Merger, Sale, Conveyance And Lease

     Section 13.01. Company May Consolidate On Certain Terms. Subject to the provisions of
Section 13.02, the Company shall not consolidate or merge with or into any other Person or Persons
(whether or not affiliated with the Company), nor shall the Company or its successor or successors
be a party or parties to successive consolidations or mergers, nor shall the Company sell, convey,
transfer or lease the property and assets of the Company substantially as an entirety, to any other
Person (whether or not affiliated with the Company), unless: (i) the Company is the surviving
Person, or the resulting, surviving or transferee Person is organized and existing under the laws
of the United States of America, any state thereof or the District of Columbia; (ii) upon any such
consolidation, merger, sale, conveyance, transfer or lease, the due and punctual payment of the
principal of and premium, if any, and interest on all of the Notes, according to their tenor and
the due and punctual performance and observance of all of the covenants and conditions of this
Indenture to be performed by the Company, shall be expressly assumed, by supplemental indenture
satisfactory in form to the Trustee, executed and delivered to the Trustee, by the Person (if other
than the Company) formed by such consolidation, or into which the Company shall have been merged,
or by the Person that shall have acquired or leased such property, and such supplemental indenture
shall provide for the applicable conversion rights set forth in Section 16.06; and (iii)
immediately after giving effect to the transaction described above, no Event of Default, and no
event which, after notice or lapse of time or both, would become an Event of Default, shall have
happened and be continuing.

     Section 13.02. Successor To Be Substituted. In case of any such consolidation, merger,
sale, conveyance, transfer or lease and upon the assumption by the successor Person, by
supplemental indenture, executed and delivered to the Trustee and satisfactory in form to the
Trustee, of the due and punctual payment of the principal of and premium, if any, and interest on
all of the Notes and the due and punctual performance of all of the covenants and conditions of
this Indenture to be performed by the Company, such successor Person shall succeed to and be
substituted for the Company, with the same effect as if it had been named herein as the party of
this first part. Such successor Person thereupon may cause to be signed, and may issue either in
its own name or in the name of AtheroGenics, Inc. any or all of the Notes, issuable hereunder that
theretofore shall not have been signed by the Company and delivered to the Trustee; and, upon the
order of such successor Person instead of the Company and subject to all the terms, conditions and
limitations in this Indenture prescribed, the Trustee shall authenticate and shall deliver, or
cause to be authenticated and delivered, any Notes that previously shall have been signed and
delivered by the officers of the Company to the Trustee for authentication, and any Notes that such
successor Person thereafter shall cause to be signed and delivered to the Trustee for that purpose.
All the Notes so issued shall in all respects have the same legal rank and benefit under this
Indenture as the Notes theretofore or thereafter issued in accordance with the

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terms of this Indenture as though all of such Notes had been issued at the date of the
execution hereof. In the event of any such consolidation, merger, sale, conveyance, transfer or
lease, upon compliance with the provisions of this Article 13, the Person named as the “Company” in
the first paragraph of this Indenture or any successor that shall thereafter have become such in
the manner prescribed in this Article 13 may be dissolved, wound up and liquidated at any time
thereafter and such Person shall be released from its liabilities as obligor and maker of the Notes
and from its obligations under this Indenture.

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

     Section 13.03. Opinion Of Counsel To Be Given To Trustee. The Trustee shall receive an
Officers’ Certificate and an Opinion of Counsel as conclusive evidence that any such consolidation,
merger, sale, conveyance, transfer or lease and any such assumption complies with the provisions of
this Article 13.

ARTICLE 14

Satisfaction And Discharge Of Indenture

     Section 14.01. Discharge Of Indenture. When the Company shall deliver to the Trustee for
cancellation all Notes theretofore authenticated (other than any Notes that have been destroyed,
lost or stolen and in lieu of or in substitution for which other Notes shall have been
authenticated and delivered) and not theretofore canceled, or all the Notes not theretofore
canceled or delivered to the Trustee for cancellation shall have become due and payable, and the
Company shall deposit with the Trustee, in trust, funds sufficient to pay all of the Notes (other
than any Notes that shall have been mutilated, destroyed, lost or stolen and in lieu of or in
substitution for which other Notes shall have been authenticated and delivered) not theretofore
canceled or delivered to the Trustee for cancellation, including principal and premium, if any, and
interest and Liquidated Damages, if any, due, and if the Company shall also pay or cause to be paid
all other sums payable hereunder by the Company, then this Indenture shall cease to be of further
effect (except as to (i) rights hereunder of Noteholders to receive payments of principal of and
premium, if any, and interest and Liquidated Damages, if any, on, the Notes and the other rights,
duties and obligations of Noteholders, as beneficiaries hereof with respect to the amounts, if any,
so deposited with the Trustee and (ii) the rights, obligations and immunities of the Trustee
hereunder), and the Trustee, on written demand of the Company accompanied by an Officers’
Certificate and an Opinion of Counsel as required by Section 17.05 and at the cost and expense of
the Company, shall execute proper instruments acknowledging satisfaction of and discharging this
Indenture; the Company, however, hereby agrees to reimburse the Trustee for any costs or expenses
thereafter reasonably and properly incurred by the Trustee and to compensate the Trustee for any
services thereafter reasonably and properly rendered by the Trustee in connection with this
Indenture or the Notes.

     Section 14.02. Deposited Monies To Be Held In Trust By Trustee. Subject to Section 14.04,
all monies deposited with the Trustee pursuant to Section 14.01, shall be held in trust for the
sole benefit of the Noteholders, and such monies shall be applied by the Trustee to the

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payment, either directly or through any paying agent (including the Company if acting as its
own paying agent), to the holders of the particular Notes for the payment or redemption of which
such monies have been deposited with the Trustee, of all sums due and to become due thereon for
principal and interest and premium, if any.

     Section 14.03. Paying Agent To Repay Monies Held. Upon the satisfaction and discharge of
this Indenture, all monies then held by any paying agent of the Notes (other than the Trustee)
shall, upon written request of the Company, be repaid to it or paid to the Trustee, and thereupon
such paying agent shall be released from all further liability with respect to such monies.

     Section 14.04. Return Of Unclaimed Monies. Subject to the requirements of applicable law,
any monies deposited with or paid to the Trustee for payment of the principal of, premium, if any,
or interest on Notes and not applied but remaining unclaimed by the holders of Notes for two years
after the date upon which the principal of, premium, if any, or interest on such Notes, as the case
may be, shall have become due and payable, shall be repaid to the Company by the Trustee on demand
and all liability of the Trustee shall thereupon cease with respect to such monies; and the holder
of any of the Notes shall thereafter look only to the Company for any payment that such holder may
be entitled to collect unless an applicable abandoned property law designates another Person.

     Section 14.05. Reinstatement. If the Trustee or the paying agent is unable to apply any
money in accordance with Section 14.02 by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such application, the
Company’s obligations under this Indenture and the Notes shall be revived and reinstated as though
no deposit had occurred pursuant to Section 14.01 until such time as the Trustee or the paying
agent is permitted to apply all such money in accordance with Section 14.02; provided that if the
Company makes any payment of interest on or principal of any Note following the reinstatement of
its obligations, the Company shall be subrogated to the rights of the holders of such Notes to
receive such payment from the money held by the Trustee or paying agent.

ARTICLE 15

Immunity Of Incorporators, Stockholders, Officers And Directors

     Section 15.01. Indenture And Notes Solely Corporate Obligations. No recourse for the
payment of the principal of or premium, if any, or Interest on any Note, or for any claim based
thereon or otherwise in respect thereof, 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 Note, or
because of the creation of any indebtedness represented thereby, shall be had against any
incorporator, stockholder, employee, agent, officer, director or subsidiary, as such, past, present
or future, of the Company or of any successor corporation, either directly or through the Company
or 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 expressly waived and released as a condition of, and as a consideration
for, the execution of this Indenture and the issue of the Notes.

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ARTICLE 16

Conversion
Of Notes

     Section 16.01. Right To Convert.

     (a) Subject to and upon compliance with the provisions of this Indenture, at any time prior to
the close of business on February 1, 2012, the holder of any Note shall have the right, at such
holder’s option, to convert the principal amount of the Note, or any portion of such principal
amount which is a multiple of $1,000, into fully paid and non-assessable shares of Common Stock (as
such shares shall then be constituted) at the Conversion Rate in effect at such time, by surrender
of the Note so to be converted in whole or in part, together with any required funds, in the manner
provided in Section 16.02.

     (b) A Note in respect of which a holder is electing to exercise its option to require
redemption upon a Designated Event pursuant to Section 3.05 may be converted only if such holder
withdraws its Redemption Notice in accordance with Section 3.06 and prior to the effective date of
such conversion. A holder of Notes is not entitled to any rights of a holder of Common Stock until
such holder has converted his Notes to Common Stock, and only to the extent such Notes are deemed
to have been converted to Common Stock under this Article 16.

     Section 16.02. Exercise Of Conversion Privilege; Issuance Of Common Stock On Conversion; No
Adjustment For Interest Or Dividends.

     (a) In order to exercise the conversion privilege with respect to any Note in certificated
form, the Company must receive at the office or agency of the Company maintained for that purpose
or, at the option of such holder, the Corporate Trust Office, such Note with the original or
facsimile of the form entitled “Conversion Notice” on the reverse thereof, duly completed and
manually signed, together with such Notes duly endorsed for transfer, accompanied by the funds, if
any, required by Section 16.02(c). Such notice shall also state the name or names (with address or
addresses) in which the certificate or certificates for shares of Common Stock which shall be
issuable on such conversion shall be issued, and shall be accompanied by transfer or similar taxes,
if required pursuant to Section 16.07.

     In order to exercise the conversion privilege with respect to any interest in a Global Note,
the beneficial holder must complete, or cause to be completed, the appropriate instruction form for
conversion pursuant to the Depositary’s book-entry conversion program, deliver, or cause to be
delivered, by book-entry delivery an interest in such Global Note, furnish appropriate endorsements
and transfer documents if required by the Company or the Trustee or conversion agent, and pay the
funds, if any, required by Section 16.02(c) and any transfer taxes if required pursuant to Section
16.07.

     (b) As promptly as practicable after satisfaction of the requirements for conversion set forth
above, subject to compliance with any restrictions on transfer if shares issuable on conversion are
to be issued in a name other than that of the Noteholder (as if such transfer were a transfer of
the Note or Notes (or portion thereof) so converted), the Company shall issue and shall deliver to
such Noteholder at the office or agency maintained by the Company for such purpose pursuant to
Section 6.02, a certificate or certificates for the number of full shares of

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Common Stock issuable upon the conversion of such Note or portion thereof as determined by the
Company in accordance with the provisions of this Article 16 and a check or cash in respect of any
fractional interest in respect of a share of Common Stock arising upon such conversion, calculated
by the Company as provided in Section 16.03. In case any Note of a denomination greater than
$1,000 shall be surrendered for partial conversion, and subject to Section 2.03, the Company shall
execute and the Trustee shall authenticate and deliver to the holder of the Note so surrendered,
without charge to him, a new Note or Notes in authorized denominations in an aggregate principal
amount equal to the unconverted portion of the surrendered Note.

     Each conversion shall be deemed to have been effected as to any such Note (or portion thereof)
on the date on which the requirements set forth above in this Section 16.02 have been satisfied as
to such Note (or portion thereof), and the Person in whose name any certificate or certificates for
shares of Common Stock shall be issuable upon such conversion shall be deemed to have become on
said date the holder of record of the shares represented thereby; provided that any such surrender
on any date when the stock transfer books of the Company shall be closed shall constitute the
Person in whose name the certificates are to be issued as the record holder thereof for all
purposes on the next succeeding day on which such stock transfer books are open, but such
conversion shall be at the Conversion Rate in effect on the date upon which such Note shall be
surrendered.

     (c) Any Note or portion thereof surrendered for conversion during the period from the close of
business on the record date for any interest payment date to the close of business on the Business
Day preceding the following interest payment date shall be accompanied by payment, in immediately
available funds 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 being converted; provided
that no such payment need be made (1) if the Company has specified a redemption date following a
Designated Event that is during the period beginning at the close of business on the record date
for any interest payment date and ending at the close of business on such interest payment date, or
(2) to the extent of any overdue interest at the time of conversion with respect to such Note.
Except as provided above in this Section 16.02, no payment or other adjustment shall be made for
interest accrued on any Note converted or for dividends on any shares issued upon the conversion of
such Note as provided in this Article 16.

     Upon the conversion of a Note, that portion of the accrued but unpaid interest, with respect
to the converted Note shall not be cancelled, extinguished or forfeited, but rather shall be deemed
to be paid in full to the holder thereof through delivery of the Common Stock (together with the
cash payment, if any, in lieu of fractional shares) in exchange for the Note being converted
pursuant to the provisions hereof; and the fair market value of such shares of Common Stock
(together with any such cash payment in lieu of fractional shares) shall be treated as issued, to
the extent thereof, first in exchange for and in satisfaction of the Company’s obligation to pay
the principal amount of the converted Note, the accrued but unpaid interest, and the balance, if
any, of such fair market value of such Common Stock (and any such cash payment) shall be treated as
issued in exchange for and in satisfaction of the right to convert the Note being converted
pursuant to the provisions hereof.

     (d) Upon the conversion of an interest in a Global Note, the Trustee (or other conversion
agent appointed by the Company), or the Custodian at the direction of the Trustee (or

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other conversion agent appointed by the Company), shall make a notation on such Global Note as
to the reduction in the principal amount represented thereby. The Company shall notify the Trustee
in writing of any conversions of Notes effected through any conversion agent other than the
Trustee.

     Section 16.03. Cash Payments in Lieu of Fractional Shares. No fractional shares of Common
Stock or scrip certificates representing fractional shares shall be issued upon conversion of
Notes. If more than one Note shall be surrendered for conversion at one time by the same holder,
the number of full shares that shall be issuable upon conversion shall be computed on the basis of
the aggregate principal amount of the Notes (or specified portions thereof to the extent permitted
hereby) so surrendered. If any fractional share of stock would be issuable upon the conversion of
any Note or Notes, the Company shall make an adjustment and payment therefor in cash at the current
price thereof to the holder of Notes. The current price of a share of Common Stock shall be the
Closing Sale Price on the last Trading Day immediately preceding the day on which the Notes (or
specified portions thereof) are deemed to have been converted.

     Section 16.04. Conversion Rate. Each $1,000 principal amount of the Notes shall be
convertible into 38.5802 shares of Common Stock (herein called the “Conversion Rate”), subject to
adjustment as provided in this Article 16.

     Section 16.05. Adjustment Of Conversion Rate. The Conversion Rate shall be adjusted from
time to time by the Company as follows:

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

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

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

such increase to become effective immediately after the opening of business on the day following
the date fixed for such determination. For the purpose of this clause (a), the number of shares of
Common Stock at any time outstanding shall not include shares held in the treasury of the Company.
The Company will not pay any dividend or make any distribution on shares of Common Stock held in
the treasury of the Company. If any dividend or distribution of the type described in this Section
16.05(a) is declared but not so paid or made, the Conversion Rate shall again be adjusted to the
Conversion Rate that would then be in effect if such dividend or distribution had not been
declared.

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     (b) In case the Company shall issue rights or warrants to all holders of its outstanding
shares of Common Stock entitling them (for a period expiring within forty-five (45) days after the
date fixed for determination of stockholders entitled to receive such rights or warrants) to
subscribe for or purchase shares of Common Stock at a price per share less than the Current Market
Price on the date fixed for determination of stockholders entitled to receive such rights or
warrants, the Conversion Rate shall be increased so that the same shall equal the rate determined
by multiplying the Conversion Rate in effect immediately prior to the date fixed for determination
of stockholders entitled to receive such rights or warrants by a fraction,

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

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

     Such adjustment shall be successively made whenever any such rights or warrants are issued,
and shall become effective immediately after the opening of business on the day following the date
fixed for determination of stockholders entitled to receive such rights or warrants. To the extent
that shares of Common Stock are not delivered after the expiration of such rights or warrants, the
Conversion Rate shall be readjusted to the Conversion Rate that would then be in effect had the
adjustments made upon the issuance of such rights or warrants been made on the basis of delivery of
only the number of shares of Common Stock actually delivered. If such rights or warrants are not
so issued, the Conversion Rate shall again be adjusted to be the Conversion Rate that would then be
in effect if such date fixed for the determination of stockholders entitled to receive such rights
or warrants had not been fixed. In determining whether any rights or warrants entitle the holders
to subscribe for or purchase shares of Common Stock at a price less than such Current Market Price,
and in determining the aggregate offering price of such shares of Common Stock, there shall be
taken into account any consideration received by the Company for such rights or warrants and any
amount payable on exercise or conversion thereof, the value of such consideration, if other than
cash, to be determined by the Board of Directors.

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

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     (d) In case the Company shall, by dividend or otherwise, distribute to all holders of its
Common Stock shares of any class of capital stock of the Company or evidences of its indebtedness
or assets (including securities, but excluding any rights or warrants referred to in Section
16.05(b), and excluding any dividend or distribution (x) paid exclusively in cash or (y) referred
to in Section 16.05(a)) (any of the foregoing hereinafter in this Section 16.05(d) called the
“Securities”), then, in each such case (unless the Company distributes such Securities for
distribution to the Noteholders on such dividend or distribution date (as if each Noteholder had
converted such Note into Common Stock immediately prior to the Record Date with respect to such
distribution)), the Conversion Rate shall be increased so that the same shall be equal to the rate
determined by multiplying the Conversion Rate in effect on the Record Date with respect to such
distribution by a fraction,

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

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

such adjustment to become effective immediately prior to the opening of business on the day
following such Record Date; provided that if the then fair market value (as so determined) of the
portion of the Securities so distributed applicable to one share of Common Stock is equal to or
greater than the Current Market Price on the Record Date, in lieu of the foregoing adjustment,
adequate provision shall be made so that each Noteholder shall have the right to receive upon
conversion the amount of Securities such holder would have received had such holder converted each
Note on the Record Date. If such dividend or distribution is not so paid or made, the Conversion
Rate shall again be adjusted to be the Conversion Rate that would then be in effect if such
dividend or distribution had not been declared. If the Board of Directors determines the Fair
Market Value of any distribution for purposes of this Section 16.05(d) by reference to the actual
or when issued trading market for any securities, it must in doing so consider the prices in such
market over the same period used in computing the Current Market Price on the applicable Record
Date.

     Notwithstanding the foregoing, if the dividend or distribution requiring an adjustment
pursuant to this clause (d) consists of capital stock of any class or series, or similar equity
interests, of or relating to a Subsidiary or other business unit of the Company, the Conversion
Rate shall be increased so that the same shall be equal to the rate determined by multiplying the
Conversion Rate in effect on the Record Date with respect to such distribution by a fraction,

     (i) the numerator of which shall be the sum of (A) the average of the Closing Sale
Prices of the Common Stock for the ten (10) Trading Days commencing on and including the
fifth Trading Day after the date (the “Ex-Dividend Date”) on which “ex-dividend trading”
commences for such distribution on the NASDAQ National Market or such other national or
regional exchange or market on which such securities are then listed or quoted plus (B) the
Fair Market Value of the securities distributed in respect of

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each share of Common Stock for which this Section 16.05(d) applies, which shall equal
the number of securities distributed in respect of each share of Common Stock multiplied by
the average of the Closing Sale Prices of those securities distributed for the ten (10)
Trading Days commencing on and including the fifth Trading Day after the Ex-Dividend Date;
and

     (ii) the denominator of which shall be the average of the Closing Sale Prices of the
Common Stock for the ten (10) Trading Days commencing on and including the fifth Trading Day
after the Ex-Dividend Date,

     such adjustment to become effective immediately prior to the opening of business on the day
following such Record Date; provided that the Company may in lieu of the foregoing adjustment make
adequate provision so that each Noteholder shall have the right to receive upon conversion the
amount of Securities such holder would have received had such holder converted its Notes on the
Record Date with respect to such distribution.

     Rights or warrants distributed by the Company to all holders of Common Stock entitling the
holders thereof to subscribe for or purchase shares of the Company’s capital stock (either
initially or under certain circumstances), which rights or warrants, until the occurrence of a
specified event or events (“Trigger Event”): (i) are deemed to be transferred with such shares of
Common Stock; (ii) are not exercisable; and (iii) are also issued in respect of future issuances of
Common Stock, shall be deemed not to have been distributed for purposes of this Section 16.05 (and
no adjustment to the Conversion Rate under this Section 16.05 will be required) until the
occurrence of the earliest Trigger Event, whereupon such rights and warrants shall be deemed to
have been distributed and an appropriate adjustment (if any is required) to the Conversion Rate
shall be made under this Section 16.05(d). If any such right or warrant, including any such
existing rights or warrants distributed prior to the date of this Indenture, are subject to events,
upon the occurrence of which such rights or warrants become exercisable to purchase different
securities, evidences of indebtedness or other assets, then the date of the occurrence of any and
each such event shall be deemed to be the date of distribution and record date with respect to new
rights or warrants with such rights (and a termination or expiration of the existing rights or
warrants without exercise by any of the holders thereof). In addition, in the event of any
distribution (or deemed distribution) of rights or warrants, or any Trigger Event or other event
(of the type described in the preceding sentence) with respect thereto that was counted for
purposes of calculating a distribution amount for which an adjustment to the Conversion Rate under
this Section 16.05 was made, (1) in the case of any such rights or warrants that shall all have
been redeemed or repurchased without exercise by any holders thereof, the Conversion Rate shall be
readjusted upon such final redemption or repurchase to give effect to such distribution or Trigger
Event, as the case may be, as though it were a cash distribution, equal to the per share redemption
or repurchase price received by a holder or holders of Common Stock with respect to such rights or
warrants (assuming such holder had retained such rights or warrants), made to all holders of Common
Stock as of the date of such redemption or repurchase, and (2) in the case of such rights or
warrants that shall have expired or been terminated without exercise by any holders thereof, the
Conversion Rate shall be readjusted as if such rights and warrants had not been issued.

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     No adjustment of the Conversion Rate shall be made pursuant to this Section 16.05(d) in
respect of rights or warrants distributed or deemed distributed on any Trigger Event to the extent
that such rights or warrants are actually distributed, or reserved by the Company for distribution
to holders of Notes upon conversion by such holders of Notes into Common Stock.

     For purposes of this Section 16.05(d) and Section 16.05(a) and 16.05(b), any dividend or
distribution to which this Section 16.05(d) is applicable that also includes shares of Common
Stock, or such rights or warrants to subscribe for or purchase shares of Common Stock of the type
described in Section 16.05(b) (or both), shall be deemed instead to be (1) a dividend or
distribution of the evidences of indebtedness, assets or shares of capital stock other than such
shares of Common Stock or rights or warrants (and any Conversion Rate adjustment required by this
Section 16.05(d) with respect to such dividend or distribution shall then be made) immediately
followed by (2) a dividend or distribution of such shares of Common Stock or such rights or
warrants (and any further Conversion Rate adjustment required by Section 16.05(a) and 16.05(b) with
respect to such dividend or distribution shall then be made), except (A) the Record Date of such
dividend or distribution shall be substituted as “the date fixed for the determination of
stockholders entitled to receive such dividend or other distribution”, “the date fixed for the
determination of stockholders entitled to receive such rights or warrants” and “the date fixed for
such determination” within the meaning of Section 16.05(a) and 16.05(b) and (B) any shares of
Common Stock included in such dividend or distribution shall not be deemed “outstanding at the
close of business on the date fixed for such determination” within the meaning of Section 16.05(a).

     (e) In case the Company shall, by dividend or otherwise, distribute to all holders of its
Common Stock cash, then, in such case, the Conversion Rate shall be increased so that the same
shall equal the rate determined by multiplying the Conversion Rate in effect immediately prior to
the close of business on such Record Date by a fraction,

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

     (ii) the denominator of which shall be the Current Market Price on such Record Date
less the amount of cash so distributed applicable to one share of Common Stock,

such adjustment to be effective immediately prior to the opening of business on the day following
the record date; provided that if the portion of the cash so distributed applicable to one share of
Common Stock is equal to or greater than the Current Market Price on the Record Date, in lieu of
the foregoing adjustment, adequate provision shall be made so that each Noteholder shall have the
right to receive upon conversion the amount of cash such holder would have received had such holder
converted each Note on the Record Date. If such dividend or distribution is not so paid or made,
the Conversion Rate shall again be adjusted to be the Conversion Rate that would then be in effect
if such dividend or distribution had not been declared.

     (f) In case a tender or exchange offer made by the Company or any Subsidiary for all or any
portion of the Common Stock shall expire and such tender or exchange offer (as amended

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

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

     (ii) the denominator of which shall be the number of shares of Common Stock outstanding
(including any Purchased Shares) at the Expiration Time multiplied by the Closing Sale Price
of a share of Common Stock on the Trading Day next succeeding the Expiration Time

such adjustment to become effective immediately prior to the opening of business on the day
following the Expiration Time. If the Company is obligated to purchase shares pursuant to any such
tender or exchange offer, but the Company is permanently prevented by applicable law from effecting
any such purchases or all such purchases are rescinded, the Conversion Rate shall again be adjusted
to be the Conversion Rate that would then be in effect if such tender or exchange offer had not
been made.

     (g) In case of a tender or exchange offer made by a Person other than the Company or any
Subsidiary for an amount that increases the offeror’s ownership of Common Stock to more than
twenty-five percent (25%) of the Common Stock outstanding and shall involve the payment by such
Person of consideration per share of Common Stock having a Fair Market Value (as determined by the
Board of Directors, whose determination shall be conclusive, and described in a resolution of the
Board of Directors) that as of the last time (the “Offer Expiration Time”) tenders or exchanges may
be made pursuant to such tender or exchange offer (as it shall have been amended) exceeds the
Closing Price of a share of Common Stock on the Trading Day next succeeding the Offer Expiration
Time, and in which, as of the Offer Expiration Time the Board of Directors is not recommending
rejection of the offer, the Conversion Rate shall be increased so that the same shall equal the
rate determined by multiplying the Conversion Rate in effect immediately prior to the Offer
Expiration Time by a fraction

     (i) the numerator of which shall be the sum of (x) the Fair Market Value (determined as
aforesaid) of the aggregate consideration payable to stockholders based on the acceptance
(up to any maximum specified in the terms of the tender or exchange

58

 

offer) of all shares validly tendered or exchanged and not withdrawn as of the Offer
Expiration Time (the shares deemed so accepted, up to any such maximum, being referred to as
the “Accepted Purchased Shares”) and (y) the product of the number of shares of Common Stock
outstanding (less any Accepted Purchased Shares) at the Offer Expiration Time and the
Closing Sale Price of a share of Common Stock on the Trading Day next succeeding the Offer
Expiration Time, and

     (ii) the denominator of which shall be the number of shares of Common Stock outstanding
(including any Accepted Purchased Shares) at the Offer Expiration Time multiplied by the
Closing Sale Price of a share of Common Stock on the Trading Day next succeeding the Offer
Expiration Time,

such adjustment to become effective immediately prior to the opening of business on the day
following the Offer Expiration Time. If such Person is obligated to purchase shares pursuant to
any such tender or exchange offer, but such Person is permanently prevented by applicable law from
effecting any such purchases or all such purchases are rescinded, the Conversion Rate shall again
be adjusted to be the Conversion Rate that would then be in effect if such tender or exchange offer
had not been made. Notwithstanding the foregoing, the adjustment described in this Section
16.05(g) shall not be made if, as of the Offer Expiration Time, the offering documents with respect
to such offer disclose a plan or intention to cause the Company to engage in any transaction
described in Article 13.

     (h) For purposes of this Section 16.05, the following terms shall have the meaning indicated:

     (i) “Current Market Price” shall mean the average of the daily Closing Sale Prices per
share of Common Stock for the ten consecutive Trading Days ending on the earlier of such
date of determination and the day before the “ex” date with respect to the issuance,
distribution, subdivision or combination requiring such computation immediately prior to the
date in question. For purpose of this clause (i), the term “ex” date, (1) when used with
respect to any issuance or distribution, means the first date on which the Common Stock
trades, regular way, on the relevant exchange or in the relevant market from which the
Closing Sale Price was obtained without the right to receive such issuance or distribution,
and (2) when used with respect to any subdivision or combination of shares of Common Stock,
means the first date on which the Common Stock trades, regular way, on such exchange or in
such market after the time at which such subdivision or combination becomes effective.

     If another issuance, distribution, subdivision or combination to which Section 16.05
applies occurs during the period applicable for calculating “Current Market Price” pursuant
to the definition in the preceding paragraph, “Current Market Price” shall be calculated for
such period in a manner determined by the Board of Directors to reflect the impact of such
issuance, distribution, subdivision or combination on the Closing Sale Price of the Common
Stock during such period.

     (ii) “Fair Market Value” shall mean the amount which a willing buyer would pay a
willing seller in an arm’s-length transaction.

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     (iii) “Record Date” shall mean, with respect to any dividend, distribution or other
transaction or event in which the holders of Common Stock have the right to receive any
cash, securities or other property or in which the Common Stock (or other applicable
security) is exchanged for or converted into any combination of cash, securities or other
property, the date fixed for determination of stockholders entitled to receive such cash,
securities or other property (whether such date is fixed by the Board of Directors or by
statute, contract or otherwise).

     (iv) “Trading Day” shall mean (x) if the applicable security is quoted on the NASDAQ
National Market, a day on which trades may be made thereon or (y) if the applicable security
is listed or admitted for trading on the New York Stock Exchange or another national
securities exchange, a day on which the New York Stock Exchange or another national
securities exchange is open for business or (z) if the applicable security is not so listed,
admitted for trading or quoted, any day other than a Saturday or Sunday or a day on which
banking institutions in the State of New York are authorized or obligated by law or
executive order to close.

     (i) The Company may make such increases in the Conversion Rate, in addition to those required
by Section 16.05(a), (b), (c), (d), (e), (f) or (g) as the Board of Directors considers to be
advisable to avoid or diminish any income tax to holders of Common Stock or rights to purchase
Common Stock resulting from any dividend or distribution of stock (or rights to acquire stock) or
from any event treated as such for income tax purposes.

     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 the period and the Board of Directors shall have made a
determination that such increase would be in the best interests of the Company, which determination
shall be conclusive. Whenever the Conversion Rate is increased pursuant to the preceding sentence,
the Company shall mail to holders of record of the Notes a notice of the increase at least fifteen
(15) days prior to the date the increased Conversion Rate takes effect, and such notice shall state
the increased Conversion Rate and the period during which it will be in effect.

     (j) No adjustment in the Conversion Rate shall be required unless such adjustment would
require an increase or decrease of at least one percent (1%) in such rate. Any adjustments not
made pursuant to the preceding sentence shall be carried forward and taken into account in any
subsequent adjustment, and shall be made, regardless of whether the aggregate amount of such
cumulative adjustments exceeds 1% (i) annually on the anniversary of the first date of issue of the
Notes, and otherwise (ii)(A) five Business Days prior to the maturity of the Notes, whether at
stated maturity or otherwise, or (B) prior to the Redemption Date in connection with a Designated
Event. No adjustment in the Conversion Rate need be made if holders of Notes are permitted to
participate in the transactions described above in subsections 16.05(a) through 16.05(g) that would
otherwise require adjustment of the Conversion Rate. All calculations under this Article 16 shall
be made by the Company and shall be made to the nearest cent or to the nearest one-ten thousandth
(1/10,000) of a share, as the case may be. No adjustment need be made for the Company’s issuance
of rights to purchase Common Stock pursuant to a Company plan for reinvestment of dividends or
interest or for any issuance of Common Stock or

60

 

convertible or exchangeable securities or rights to purchase Common Stock or convertible or
exchangeable securities. To the extent the Notes become convertible into cash, assets, property or
securities (other than capital stock of the Company), no adjustment need be made thereafter upon
the issuance of the cash, assets, property or such securities or upon the issuance of any cash,
assets, property or securities that are issued upon the conversion of the Notes. Interest will not
accrue on any cash into which the Notes are convertible.

     (k) Whenever the Conversion Rate is adjusted as herein provided, the Company shall promptly
file with the Trustee and any conversion agent other than the Trustee an Officers’ Certificate
setting forth the Conversion Rate after such adjustment and setting forth a brief statement of the
facts requiring such adjustment. Unless and until a Responsible Officer of the Trustee shall have
received such Officers’ Certificate, the Trustee shall not be deemed to have knowledge of any
adjustment of the Conversion Rate and may assume that the last Conversion Rate of which it has
knowledge is still in effect. Promptly after delivery of such certificate, the Company shall
prepare a notice of such adjustment of the Conversion Rate setting forth the adjusted Conversion
Rate and the date on which each adjustment becomes effective and shall mail such notice of such
adjustment of the Conversion Rate to the holder of each Note at his last address appearing on the
Note Register provided for in Section 2.05 of this Indenture, within twenty (20) days after
execution thereof. Failure to deliver such notice shall not affect the legality or validity of any
such adjustment.

     (l) In any case in which this Section 16.05 provides that an adjustment shall become effective
immediately after, or immediately after the opening of business on the day following, (1) a Record
Date for an event, (2) the date fixed for the determination of stockholders entitled to receive a
dividend or distribution pursuant to Section 16.05(a), (3) a date fixed for the determination of
stockholders entitled to receive rights or warrants pursuant to Section 16.05(b), (4) the
Expiration Time for any tender or exchange offer pursuant to Section 16.05(f), or (5) the Offer
Expiration Time for any tender or exchange offer pursuant to Section 16.05(g)(i) (each a
“Determination Date”), the Company may elect to defer until the occurrence of the applicable
Adjustment Event (as hereinafter defined) (x) issuing to the holder of any Note converted after
such Determination Date and before the occurrence of such Adjustment Event, the additional shares
of Common Stock or other securities issuable upon such conversion by reason of the adjustment
required by such Adjustment Event over and above the Common Stock issuable upon such conversion
before giving effect to such adjustment and (y) paying to such holder any amount in cash in lieu of
any fraction pursuant to Section 16.03. For purposes of this Section 16.05(l), the term
“Adjustment Event” shall mean:

     (i) in any case referred to in clause (1) hereof, the occurrence of such event, or in
the case of a Record Date for a dividend or distribution requiring an adjustment pursuant to
Section 16.05(d) consisting of capital stock of any class or series, or similar equity
interests, of or relating to a Subsidiary or other business unit of the Company, the later
of (A) the date such dividend or distribution is made and (B) the day after the last day in
the ten Trading Day period commencing on and including the fifth Trading Day after the
Ex-Dividend Date for such dividend or distribution,

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

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

     (iv) in any case referred to in clause (4) or clause (5) hereof, the date a sale or
exchange of Common Stock pursuant to such tender or exchange offer is consummated and
becomes irrevocable.

     (m) For purposes of this Section 16.05, the number of shares of Common Stock at any time
outstanding shall not include shares held in the treasury of the Company but shall include shares
issuable in respect of scrip certificates issued in lieu of fractions of shares of Common Stock.
The Company will not pay any dividend or make any distribution on shares of Common Stock held in
the treasury of the Company.

     Section 16.06. Effect Of Reclassification, Consolidation, Merger or Sale. If any of the
following events occur, namely (i) any reclassification or change of the outstanding shares of
Common Stock (other than a change in par value, or from par value to no par value, or from no par
value to par value, or as a result of a subdivision or combination to which Section 16.05(c)
applies), (ii) any consolidation, merger or combination of the Company with another Person as a
result of which holders of Common Stock shall be entitled to receive stock, other securities or
other property or assets (including cash) with respect to or in exchange for such Common Stock, or
(iii) any sale or conveyance of all or substantially all of the properties and assets of the
Company to any other Person as a result of which holders of Common Stock shall be entitled to
receive stock, other securities or other property or assets (including cash) with respect to or in
exchange for such Common Stock, then the Company or the successor or purchasing Person, as the case
may be, shall execute with the Trustee a supplemental indenture (which shall comply with the Trust
Indenture Act as in force at the date of execution of such supplemental indenture) providing that
each Note shall be convertible into the kind and amount of shares of stock, other securities or
other property or assets (including cash) receivable upon such reclassification, change,
consolidation, merger, combination, sale or conveyance by a holder of a number of shares of Common
Stock (including Additional Shares, if any) issuable upon conversion of such Note (assuming, for
such purposes, a sufficient number of authorized shares of Common Stock are available to convert
all such Notes) immediately prior to such reclassification, change, consolidation, merger,
combination, sale or conveyance assuming such holder of Common Stock did not exercise his rights of
election, if any, as to the kind or amount of stock, other securities or other property or assets
(including cash) receivable upon such reclassification, change, consolidation, merger, combination,
sale or conveyance (provided that, if the kind or amount of stock, other securities or other
property or assets (including cash) receivable upon such reclassification, change, consolidation,
merger, combination, sale or conveyance is not the same for each share of Common Stock in respect
of which such rights of election shall not have been exercised (“non-electing share”), then for the
purposes of this Section 16.06 the kind and amount of stock, other securities or other property or
assets (including cash) receivable upon such reclassification, change, consolidation, merger,
combination, sale or conveyance for 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). Such supplemental
indenture shall provide for adjustments which shall be as nearly equivalent as may be practicable
to, and without duplication of the effects of, the adjustments provided for in this Article 16.

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     The Company shall cause notice of the execution of such supplemental indenture to be mailed to
each holder of Notes, at its address appearing on the Note Register provided for in Section 2.05 of
this Indenture, within twenty (20) days after execution thereof. Failure to deliver such notice
shall not affect the legality or validity of such supplemental indenture.

     The above provisions of this Section shall similarly apply to successive reclassifications,
changes, consolidations, mergers, combinations, sales and conveyances.

     If this Section 16.06 applies to any event or occurrence, Section 16.05 shall not apply.

     Section 16.07. Taxes On Shares Issued. The issue of stock certificates on conversions of
Notes shall be made without charge to the converting Noteholder for any documentary, stamp or
similar issue or transfer tax in respect of the issue thereof. The Company shall not, however, be
required to pay any such tax which may be payable in respect of any transfer involved in the issue
and delivery of stock in any name other than that of the holder of any Note converted, and the
Company shall not be required to issue or deliver any such stock certificate unless and until the
Person or Persons requesting the issue thereof shall have paid to the Company the amount of such
tax or shall have established to the satisfaction of the Company that such tax has been paid.

     Section 16.08. Reservation of Shares, Shares to Be Fully Paid; Compliance With Governmental
Requirements; Listing of Common Stock. The Company shall provide, free from preemptive rights, out
of its authorized but unissued shares or shares held in treasury, sufficient shares of Common Stock
to provide for the conversion of the Notes from time to time as such Notes are presented for
conversion.

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

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

     The Company covenants that, if any shares of Common Stock to be provided for the purpose of
conversion of Notes hereunder require registration with or approval of any governmental authority
under any federal or state law before such shares may be validly issued upon conversion, the
Company will in good faith and as expeditiously as possible, to the extent then permitted by the
rules and interpretations of the Commission (or any successor thereto), endeavor to secure such
registration or approval, as the case may be.

     The Company further covenants that, if at any time the Common Stock shall be listed on the
NASDAQ National Market or any other national securities exchange or automated quotation system, the
Company will, if permitted by the rules of such exchange or automated quotation system, list and
keep listed, so long as the Common Stock shall be so listed on such exchange or automated quotation
system, all Common Stock issuable upon conversion of the Note; provided

63

 

that if the rules of such exchange or automated quotation system permit the Company to defer
the listing of such Common Stock until the first conversion of the Notes into Common Stock in
accordance with the provisions of this Indenture, the Company covenants to list such Common Stock
issuable upon conversion of the Notes in accordance with the requirements of such exchange or
automated quotation system at such time.

     Section 16.09. Responsibility Of Trustee. The Trustee and any other conversion agent shall
not at any time be under any duty or responsibility to any holder of Notes to determine the
Conversion Rate or whether any facts exist which may require any adjustment of the Conversion Rate,
or with respect to the nature or extent or calculation of any such adjustment when made, or with
respect to the method employed, or herein or in any supplemental indenture provided to be employed,
in making the same. The Trustee and any other conversion agent shall not be accountable with
respect to the validity or value (or the kind or amount) of any shares of Common Stock, or of any
securities or property, which may at any time be issued or delivered upon the conversion of any
Note; and the Trustee and any other conversion agent make no representations with respect thereto.
Neither the Trustee nor any conversion agent shall be responsible for any failure of the Company to
issue, transfer or deliver any shares of Common Stock or stock certificates or other securities or
property or cash upon the surrender of any Note for the purpose of conversion or to comply with any
of the duties, responsibilities or covenants of the Company contained in this Article 16. Without
limiting the generality of the foregoing, neither the Trustee nor any conversion agent shall be
under any responsibility to determine the correctness of any provisions contained in any
supplemental indenture entered into pursuant to Section 16.06 relating either to the kind or amount
of shares of stock or securities or property (including cash) receivable by Noteholders upon the
conversion of their Notes after any event referred to in such Section 16.06 or to any adjustment to
be made with respect thereto, but, subject to the provisions of Section 9.01, may accept as
conclusive evidence of the correctness of any such provisions, and shall be protected in relying
upon, the Officers’ Certificate (which the Company shall be obligated to file with the Trustee
prior to the execution of any such supplemental indenture) with respect thereto.

     Section 16.10. Notice To Holders Prior To Certain Actions. In case:

     (a) the Company shall declare a dividend (or any other distribution) on its Common Stock that
would require an adjustment in the Conversion Rate pursuant to Section 16.05; or

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

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

64

 

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

the Company shall cause to be filed with the Trustee and to be mailed to each holder of Notes at
his address appearing on the Note Register provided for in Section 2.05 of this Indenture, as
promptly as possible but in any event at least ten (10) days prior to the applicable date
hereinafter specified, a notice stating (x) the date on which a record is to be taken for the
purpose of such dividend, distribution or rights or warrants, or, if a record is not to be taken,
the date as of which the holders of Common Stock of record to be entitled to such dividend,
distribution or rights are to be determined, or (y) the date on which such reclassification,
consolidation, merger, sale, transfer, dissolution, liquidation or winding up is expected to become
effective or occur, and the date as of which it is expected that holders of Common Stock of record
shall be entitled to exchange their Common Stock for securities or other property deliverable upon
such reclassification, consolidation, merger, sale, transfer, dissolution, liquidation or winding
up. Failure to give such notice, or any defect therein, shall not affect the legality or validity
of such dividend, distribution, reclassification, consolidation, merger, sale, transfer,
dissolution, liquidation or winding up.

     Section 16.11. Stockholder Rights Plans. If the rights provided for in the Company’s Reload
Common Stock Rights Agreement dated November 9, 2001, as amended, or in any future rights plan
adopted by the Company have separated from the shares of Common Stock in accordance with the
provisions of the applicable stockholder rights agreement so that the holders of the Notes would
not be entitled to receive any rights in respect of Common Stock issuable upon conversion of the
Notes, the Conversion Rate will be adjusted as provided in Section 16.05(d).

     Section 16.12. Additional Shares.

     (a) Subject to the provisions hereof, including without limitation, Sections 3.09 and 16.05,
if a holder elects to convert Notes following the issuance of a Designated Event Notice in
connection with a Designated Event that is also a Fundamental Change that occurs prior to maturity
of the Notes, the Company will increase the number of shares of Common Stock issuable upon
conversion of the Notes by a number of additional shares of Common Stock (the “Additional Shares”)
as set forth below. The number of Additional Shares shall be determined by reference to the
applicable table below, based on the date on which the Fundamental Change becomes effective (the
“Effective Date”) and the average of the Closing Sale Price of the Common Stock on the five Trading
Days prior to but not including the Effective Date (the “Stock Price”).

     (b) The Stock Prices set forth in the first row of each table below will be adjusted as of any
date on which the Conversion Rate is adjusted pursuant to Section 16.05(a) through (g). On such
date, the Stock Prices shall be adjusted by multiplying:

     (i) the Stock Prices applicable immediately prior to such adjustment, by

     (ii) a fraction, of which

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     (A) the numerator shall be the Conversion Rate immediately prior to the
adjustment giving rise to the Stock Price adjustment, and

     (B) the denominator of which is the Conversion Rate so adjusted.

     The number of Additional Shares will be adjusted in the same manner and for the same events as
the Conversion Rate is adjusted as set forth in Section 16.05. The following table sets forth the
Stock Price and number of Additional Shares issuable per $1,000 aggregate principal amount of
Notes:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Effective Date	 	Stock Price on Effective Date ($)	 
	 	 	19.20	 	20.00	 	22.00	 	24.00	 	26.00	 	28.00	 	30.00	 	40.00	 	50.00	 	60.00	 	70.00	 	80.00	 	90.00	 	100.00	 	115.00
	January 12, 2005
	 	 	13.5	 	 	 	12.6	 	 	 	10.8	 	 	 	9.3	 	 	 	8.1	 	 	 	7.2	 	 	 	6.3	 	 	 	3.8	 	 	 	2.5	 	 	 	1.7	 	 	 	1.2	 	 	 	0.9	 	 	 	0.7	 	 	 	0.6	 	 	 	0.4	 
	February 1, 2006
	 	 	13.5	 	 	 	12.6	 	 	 	10.7	 	 	 	9.2	 	 	 	8.0	 	 	 	7.0	 	 	 	6.1	 	 	 	3.5	 	 	 	2.3	 	 	 	1.5	 	 	 	1.1	 	 	 	0.8	 	 	 	0.6	 	 	 	0.5	 	 	 	0.3	 
	February 1, 2007
	 	 	13.5	 	 	 	12.7	 	 	 	10.6	 	 	 	9.1	 	 	 	7.8	 	 	 	6.7	 	 	 	5.9	 	 	 	3.3	 	 	 	2.0	 	 	 	1.4	 	 	 	0.9	 	 	 	0.7	 	 	 	0.5	 	 	 	0.4	 	 	 	0.3	 
	February 1, 2008
	 	 	13.5	 	 	 	12.7	 	 	 	10.5	 	 	 	8.9	 	 	 	7.5	 	 	 	6.4	 	 	 	5.6	 	 	 	2.9	 	 	 	1.8	 	 	 	1.1	 	 	 	0.8	 	 	 	0.5	 	 	 	0.4	 	 	 	0.3	 	 	 	0.2	 
	February 1, 2009
	 	 	13.5	 	 	 	12.6	 	 	 	10.3	 	 	 	8.5	 	 	 	7.1	 	 	 	6.0	 	 	 	5.1	 	 	 	2.5	 	 	 	1.4	 	 	 	0.9	 	 	 	0.6	 	 	 	0.4	 	 	 	0.3	 	 	 	0.2	 	 	 	0.1	 
	February 1, 2010
	 	 	13.5	 	 	 	12.4	 	 	 	9.8	 	 	 	7.9	 	 	 	6.4	 	 	 	5.3	 	 	 	4.3	 	 	 	1.9	 	 	 	0.9	 	 	 	0.5	 	 	 	0.3	 	 	 	0.2	 	 	 	0.2	 	 	 	0.1	 	 	 	0.1	 
	February 1, 2011
	 	 	13.3	 	 	 	11.8	 	 	 	8.9	 	 	 	6.7	 	 	 	5.1	 	 	 	3.9	 	 	 	3.0	 	 	 	0.9	 	 	 	0.4	 	 	 	0.2	 	 	 	0.1	 	 	 	0.1	 	 	 	0.1	 	 	 	0.0	 	 	 	0.0	 
	February 1, 2012
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 

     (iii) If the Stock Price and Effective Date are not set forth on the applicable
table above and the Stock Price is:

     (A) between two Stock Prices on the applicable table or the Effective Date is
between two Effective Dates on the applicable table, the number of Additional
Shares will be determined by straight-line interpolation between the number of
Additional Shares set forth for the higher and lower Stock Price amounts and the
two Effective Dates, as applicable, based on a 365-day year;

     (B) equal to or in excess of $115.00 per share (subject to adjustment), no
Additional Shares will be issued upon conversion; or

     (C) less than $19.20 per share (subject to adjustment), no Additional Shares
will be issued upon conversion.

     Notwithstanding the foregoing, in no event shall the total number of shares of Common Stock
issuable upon conversion exceed 52.0833 per $1,000 of aggregate principal amount of Notes, subject
to adjustment in the same manner and for the same events as the Conversion Rate is adjusted as set
forth in Section 16.05.

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ARTICLE 17

Miscellaneous Provisions

     Section 17.01. Provisions Binding On Company’s Successors. All the covenants, stipulations,
promises and agreements by the Company contained in this Indenture shall bind its successors and
assigns whether so expressed or not.

     Section 17.02. Official Acts By Successor Corporation. Any act or proceeding by any
provision of this Indenture authorized or required to be done or performed by any board, committee
or officer of the Company shall and may be done and performed with like force and effect by the
like board, committee or officer of any Person that shall at the time be the lawful sole successor
of the Company.

     Section 17.03. Addresses For Notices, Etc. Any notice or demand which by any provision of
this Indenture is required or permitted to be given or served by the Trustee or by the holders of
Notes on the Company shall be deemed to have been sufficiently given or made, for all purposes, if
given or served by being deposited postage prepaid by registered or certified mail in a post office
letter box or sent by telecopier transmission addressed as follows: to AtheroGenics, Inc., 8995
Westside Parkway, Alpharetta, Georgia 30004, Telecopier No.: (678) 336-2501, Attention: Chief
Financial Officer. Any notice, direction, request or demand hereunder to or upon the Trustee shall
be deemed to have been sufficiently given or made, for all purposes, if given or served by being
deposited, postage prepaid, by registered or certified mail in a post office letter box or sent by
telecopier transmission addressed as follows: The Bank of New York Trust Company, N.A., 10161
Centurion Parkway, Jacksonville, Florida, 32256, Telecopier No.: (904) 645-1421, Attention:
Corporate Trust Trustee Administration.

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

     Any notice or communication mailed to a Noteholder shall be mailed to him by first class mail,
postage prepaid, at his address as it appears on the Note Register and shall be sufficiently given
to him if so mailed within the time prescribed.

     Failure to mail a notice or communication to a Noteholder or any defect in it shall not affect
its sufficiency with respect to other Noteholders. If a notice or communication is mailed in the
manner provided above, it is duly given, whether or not the addressee receives it.

     Section 17.04. Governing Law. This Indenture and each Note shall be deemed to be a contract
made under the laws of the State of New York, and for all purposes shall be construed in accordance
with the laws of the State of New York, without regard to conflicts of laws principles thereof.

     Section 17.05. Evidence Of Compliance With Conditions Precedent, Certificates To Trustee.
Upon any application or demand by the Company to the Trustee to take any action under any of the
provisions of this Indenture, the Company shall furnish to the Trustee an Officers’ Certificate
stating that all conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with, and an Opinion of Counsel stating that, in the opinion of
such counsel, all such conditions precedent have been complied with.

67

 

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

     Section 17.06. Legal Holidays. In any case in which the date of maturity of interest on or
principal of the Notes or the redemption date of any Note will not be a Business Day, then payment
of such interest on or principal of the Notes need not be made on such date, but may be made on the
next succeeding Business Day with the same force and effect as if made on the date of maturity or
the redemption date, and no interest shall accrue for the period from and after such date.

     Section 17.07. Trust Indenture Act. This Indenture is hereby made subject to, and shall be
governed by, the provisions of the Trust Indenture Act required to be part of and to govern
indentures qualified under the Trust Indenture Act; provided that unless otherwise required by law,
notwithstanding the foregoing, this Indenture and the Notes issued hereunder shall not be subject
to the provisions of subsections (a)(1), (a)(2), and (a)(3) of Section 314 of the Trust Indenture
Act as now in effect or as hereafter amended or modified; provided further that this Section 17.07
shall not require this Indenture or the Trustee to be qualified under the Trust Indenture Act prior
to the time such qualification is in fact required under the terms of the Trust Indenture Act, nor
shall it constitute any admission or acknowledgment by any party to the Indenture that any such
qualification is required prior to the time such qualification is in fact required under the terms
of the Trust Indenture Act. If any provision hereof limits, qualifies or conflicts with another
provision hereof which is required to be included in an indenture qualified under the Trust
Indenture Act, such required provision shall control.

     Section 17.08. No Security Interest Created. Nothing in this Indenture or in the Notes,
expressed or implied, shall be construed to constitute a security interest under the Uniform
Commercial Code or similar legislation, as now or hereafter enacted and in effect, in any
jurisdiction in which property of the Company or its subsidiaries is located.

     Section 17.09. Benefits Of Indenture. Nothing in this Indenture or in the Notes, express or
implied, shall give to any Person, other than the parties hereto, any paying agent, any
authenticating agent, any Note Registrar and their successors hereunder and the holders of Notes
any benefit or any legal or equitable right, remedy or claim under this Indenture.

     Section 17.10. Table Of Contents, Headings, Etc. The table of contents and the titles and
headings of the Articles and Sections of this Indenture have been inserted for convenience of
reference only, are not to be considered a part hereof, and shall in no way modify or restrict any
of the terms or provisions hereof.

68

 

     Section 17.11. Authenticating Agent. The Trustee may appoint an authenticating agent that
shall be authorized to act on its behalf, and subject to its direction, in the authentication and
delivery of Notes in connection with the original issuance thereof and transfers and exchanges of
Notes hereunder, including under Sections 2.04, 2.05, 2.06, 2.07 and 3.05, as fully to all intents
and purposes as though the authenticating agent had been expressly authorized by this Indenture and
those Sections to authenticate and deliver Notes. For all purposes of this Indenture, the
authentication and delivery of Notes by the authenticating agent shall be deemed to be
authentication and delivery of such Notes “by the Trustee” and a certificate of authentication
executed on behalf of the Trustee by an authenticating agent shall be deemed to satisfy any
requirement hereunder or in the Notes for the Trustee’s certificate of authentication. Such
authenticating agent shall at all times be a Person eligible to serve as trustee hereunder pursuant
to Section 9.09.

     Any corporation into which any authenticating agent may be merged or converted or with which
it may be consolidated, or any corporation resulting from any merger, consolidation or conversion
to which any authenticating agent shall be a party, or any corporation succeeding to the corporate
trust business of any authenticating agent, shall be the successor of the authenticating agent
hereunder, if such successor corporation is otherwise eligible under this Section 17.11, without
the execution or filing of any paper or any further act on the part of the parties hereto or the
authenticating agent or such successor corporation.

     Any authenticating agent may at any time resign by giving written notice of resignation to the
Trustee and to the Company. The Trustee may at any time terminate the agency of any authenticating
agent by giving written notice of termination 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 any
authenticating agent shall cease to be eligible under this Section, the Trustee shall either
promptly appoint a successor authenticating agent or itself assume the duties and obligations of
the former authenticating agent under this Indenture and, upon such appointment of a successor
authenticating agent, if made, shall give written notice of such appointment of a successor
authenticating agent to the Company and shall mail notice of such appointment of a successor
authenticating agent to all holders of Notes as the names and addresses of such holders appear on
the Note Register.

     The Company agrees to pay to the authenticating agent from time to time such reasonable
compensation for its services as shall be agreed upon in writing between the Company and the
authenticating agent.

     The provisions of Sections 9.02, 9.03, 9.04 and 10.03 and this Section 17.11 shall be
applicable to any authenticating agent.

     Section 17.12. Execution In Counterparts. This Indenture may be executed in any number of
counterparts, each of which shall be an original, but such counterparts shall together constitute
but one and the same instrument.

     Section 17.13. Severability. In case any provision in this Indenture or in the Notes shall
be invalid, illegal or unenforceable, then (to the extent permitted by law) the validity, legality

69

 

and enforceability of the remaining provisions shall not in any way be affected or impaired
thereby.

     The Trustee hereby accepts the trusts in this Indenture declared and provided, upon the terms
and conditions herein above set forth.

70

 

     IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed.

	 	 	 	 	 
	 	ATHEROGENICS, INC.

 	 
	 	By:  	/s/ Mark P. Colonnese
 	 
	 	 	Name:  	Mark P. Colonnese 	 
	 	 	Title:  	Senior Vice President of Finance and
Administration and Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	THE BANK OF NEW YORK TRUST COMPANY, N.A., as Trustee

 	 
	 	By:  	/s/ George W. Bemister
 	 
	 	 	Name:  	George W. Bemister III 	 
	 	 	Title:  	Assistant Vice President 	 
	 

 

 

EXHIBIT A

[Include only for Global Notes]

[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (THE “DEPOSITARY”, WHICH TERM INCLUDES ANY SUCCESSOR
DEPOSITARY FOR THE CERTIFICATES) 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 REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT HEREIN IS MADE
TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITARY), 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.]

[Include only for Notes that are Restricted Securities]

[THE NOTE EVIDENCED HEREBY HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS, AND, ACCORDINGLY, MAY NOT BE
OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE
HOLDER (1) REPRESENTS THAT IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER
THE SECURITIES ACT); (2) AGREES THAT IT WILL NOT, PRIOR TO EXPIRATION OF THE HOLDING PERIOD
APPLICABLE TO SALES OF THIS NOTE UNDER RULE 144(k) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR
PROVISION), RESELL OR OTHERWISE TRANSFER THIS NOTE OR THE COMMON STOCK ISSUABLE UPON CONVERSION OF
THIS NOTE EXCEPT (A) TO ATHEROGENICS, INC. OR ANY SUBSIDIARY THEREOF, (B) TO A QUALIFIED
INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, (C) PURSUANT TO THE
EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE) OR (D)
PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT
(AND WHICH CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER); (3) PRIOR TO SUCH TRANSFER
(OTHER THAN A TRANSFER PURSUANT TO CLAUSE 2(D) ABOVE), IT WILL FURNISH TO THE BANK OF NEW YORK
TRUST COMPANY, N.A., AS TRUSTEE (OR A SUCCESSOR TRUSTEE, AS APPLICABLE), SUCH CERTIFICATIONS, LEGAL
OPINIONS OR OTHER INFORMATION AS 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; AND (4) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS
NOTE IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. THIS LEGEND WILL BE
REMOVED UPON THE EARLIER OF THE TRANSFER OF THE NOTE EVIDENCED HEREBY PURSUANT TO CLAUSE 2(D)

A-1

 

ABOVE OR UPON ANY TRANSFER OF THIS NOTE UNDER RULE 144 UNDER THE SECURITIES ACT (OR ANY SUCCESSOR
PROVISION). THE INDENTURE CONTAINS A PROVISION REQUIRING THE TRUSTEE TO REFUSE TO REGISTER ANY
TRANSFER OF THIS NOTE IN VIOLATION OF THE FOREGOING RESTRICTION.]

A-2

 

ATHEROGENICS, INC.

1.50% CONVERTIBLE NOTE DUE 2012

CUSIP: 047439 AC 8

	 	 	 
	No. 1

	 	$                                        

     AtheroGenics, Inc., a corporation duly organized and validly existing under the laws of the
State of Georgia (herein called the “Company”, which term includes any successor corporation under
the Indenture referred to on the reverse hereof), for value received hereby promises to pay to
[                    ] [Cede & Co., as the nominee of The Depository Trust Company,]1 or its
registered assigns, [the principal sum of                                          DOLLARS] [the principal sum set forth on
Schedule I hereto]2 on February 1, 2012 at the office or agency of the Company
maintained for that purpose in accordance with the terms of the Indenture, 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, and to pay interest, semiannually on February 1 and August 1 of each
year, commencing August 1, 2005, on said principal sum, in like coin or currency, at the rate per
annum of 1.50%, from the February 1 or August 1, as the case may be, next preceding the date of
this Note to which interest has been paid or duly provided for, unless the date hereof is a date to
which interest has been paid or duly provided for, in which case from the date of this Note, or
unless no interest has been paid or duly provided for on the Notes, in which case from January 12,
2005, until payment of said principal sum has been made or duly provided for, or this Note has been
converted or redeemed. Notwithstanding the foregoing, if the date hereof is after any January 15
or July 15, as the case may be, and before the following February 1 or August 1, this Note shall
bear interest from such February 1 or August 1; provided that if the Company shall default in the
payment of interest due on such February 1 or August 1, then this Note shall bear interest from the
next preceding February 1 or August 1 to which interest has been paid or duly provided for or, if
no interest has been paid or duly provided for on such Note, from January 12, 2005. Except as
otherwise provided in the Indenture, the interest payable on this Note pursuant to the Indenture on
any February 1 or August 1 will be paid to the Person entitled thereto as it appears in the Note
Register at the close of business on the record date, which shall be the January 15 or July 15
(whether or not a Business Day) next preceding such February 1 or August 1, as provided in the
Indenture; provided that any such interest not punctually paid or duly provided for shall be
payable as provided in Section 2.03 of the Indenture. Interest on the Notes shall be computed on
the basis of a 360-day year of twelve 30-day months.

     The Company shall pay interest (i) on any Notes in certificated form by check mailed to the
address of the Person entitled thereto as it appears in the Note Register (or, upon written notice
by such Person, by wire transfer in immediately available funds, if such Person is entitled

	1	For Global Notes only.
	 
	2	For Global Notes only.

A-3

 

to interest on aggregate principal in excess of $2.0 million) or (ii) on any Global Note by
wire transfer of immediately available funds to the account of the Depositary or its nominee.

     The Company promises to pay interest on overdue principal, premium, if any, and (to the extent
that payment of such interest is enforceable under applicable law) interest and Liquidated Damages,
if any, at the rate of 1% per annum plus the rate of interest borne by this Note.

     Reference is made to the further provisions of this Note set forth on the reverse hereof,
including, without limitation, provisions giving the holder of this Note the right to convert this
Note into Common Stock of the Company on the terms and subject to the limitations referred to on
the reverse hereof and as more fully specified in the Indenture. Such further provisions shall for
all purposes have the same effect as though fully set forth at this place.

     This Note shall be deemed to be a contract made under the laws of the State of New York, and
for all purposes shall be construed in accordance with and governed by the laws of the State of New
York, without regard to conflicts of laws principles thereof.

     This Note shall not be valid or become obligatory for any purpose until the certificate of
authentication hereon shall have been manually signed by the Trustee or a duly authorized
authenticating agent under the Indenture.

A-4

 

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

	 	 	 
	

	 	ATHEROGENICS, INC.
	 
	 	 
	

	 	By:                                                                                 
	 
	 	 
	

	 	By:                                                                                 

A-5

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Notes described in the within-named Indenture.

Dated:

THE BANK OF NEW YORK TRUST

COMPANY, N.A., as Trustee

	 	 	 	 	 
	By:
	 	 	 	 
	

	 	 	 	 
	

	 	Authorized Signatory	 	 
	 
	 	 	 	 
	

	 	,
or       	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	

	 	 	 	 
	

	 	As Authenticating Agent	 	 
	

	 	(if different from Trustee)	 	 

	 	 	 	 	 
	By:
	 	 	 	 
	

	 	 	 	 
	

	 	Authorized Signatory	 	 

A-6

 

FORM OF REVERSE OF NOTE

ATHEROGENICS, INC.

1.50% CONVERTIBLE NOTE DUE 2012

     This Note is one of a duly authorized issue of Notes of the Company, designated as its 1.50%
Convertible Notes Due 2012 (herein called the “Notes”), limited in aggregate principal amount to
$175,000,000, issued and to be issued (or if the Company sells an additional $25,000,000 principal
amount of its Notes pursuant to the option of the Initial Purchasers granted pursuant to the
Purchase Agreement dated as of January 6, 2005 between the Company and the Initial Purchasers,
limited in aggregate amount to $200,000,000) under and pursuant to an Indenture dated as of January
12, 2005 (herein called the “Indenture”), between the Company and The Bank of New York Trust
Company, N.A., as trustee (herein called the “Trustee”), to which Indenture and all indentures
supplemental thereto reference is hereby made for a description of the rights, limitations of
rights, obligations, duties and immunities thereunder of the Trustee, the Company and the holders
of the Notes.

     The Notes are issuable in fully registered form, without coupons, in denominations of $1,000
principal amount and any multiple of $1,000. Upon due presentment for registration of transfer of
this Note at the office or agency of the Company maintained for that purpose in accordance with the
terms of the Indenture, a new Note or Notes of authorized denominations for an equal aggregate
principal amount will be issued to the transferee in exchange thereof, subject to the limitations
provided in the Indenture, without charge except for any tax, assessment or other governmental
charge imposed in connection therewith.

     The Notes are not subject to redemption through the operation of any sinking fund and may not
be redeemed at the option of the Company prior to maturity.

     If a Designated Event occurs at any time prior to maturity of the Notes, subject to the
Company’s rights upon delivery of a Public Acquisition Notice as defined in Section 3.09 of the
Indenture, this Note will be redeemable at the option of the holder of this Note at a redemption
price equal to 100% of the principal amount hereof, together with accrued interest and Liquidated
Damages, if any to (but excluding) the redemption date, as provided in Article 3 of the Indenture.

     Within ten Trading Days prior to but not including the expected effective date of a
Fundamental Change that is also a Public Acquirer Change of Control, the Company will provide a
Public Acquisition Notice to all holders, the Trustee, any Paying Agent and any Conversion Agent
describing the anticipated Public Acquirer Change of Control and stating whether the Company will:

     (i) elect to adjust the Conversion Rate and related conversion obligation as described
in Section 3.09 of the Indenture, in which case the Holders will not have the right to
require the Company redeem their Notes as described in Article 3 of the Indenture and will
not have the right to the Conversion Rate adjustment or Additional Shares described in
Section 16.12 of the Indenture; or

A-7

 

     (ii) not elect to adjust the Conversion Rate and related conversion obligation as
described in Section 3.09 of the Indenture, in which case the holders will have the right to
require the Company to redeem their Notes as described in Article 3 of the Indenture and/or
the right (if applicable) to the Additional Shares as described in Section 16.12 of the
Indenture, in each case in accordance with the respective provisions of those Sections.

     If the Public Acquisition Notice indicates that the Company is making the election described
in clause (i) above, then the Conversion Rate and the related conversion obligation shall be
adjusted such that from and after the effective date of the Public Acquirer Change of Control,
holders of the Notes will be entitled to convert their Notes into shares of Public Acquirer Common
Stock pursuant to Section 3.09 of the Indenture.

     Subject to compliance with the provisions of the Indenture, prior to the close of business on
the final maturity date of the Notes, the holder hereof has the right, at its option, to convert
each $1,000 principal amount of this Note into 38.5802 shares (the “Conversion Rate”) of the
Company’s Common Stock, as such shares shall be constituted at the date of conversion and subject
to adjustment from time to time as provided in the Indenture.

     No adjustment in respect of interest on any Note converted or dividends on any shares issued
upon conversion of such Note will be made upon any conversion except as set forth in the next
sentence. If this Note (or portion hereof) is surrendered for conversion during the period from
the close of business on any record date for the payment of interest to the close of business on
the Business Day preceding the following interest payment date, this Note (or portion hereof being
converted) must be accompanied by payment, in immediately available funds 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 being converted; provided that no such payment shall be required (1) if the
Company has specified a redemption date following a Designated Event that is after a record date
and on or prior to the next interest payment date or (2) to the extent of any overdue interest at
the time of conversion with respect to this Note.

     No fractional shares will be issued upon any conversion, but an adjustment and payment in cash
will be made, as provided in the Indenture, in respect of any fraction of a share which would
otherwise be issuable upon the surrender of any Note or Notes for conversion.

     A Note in respect of which a holder is exercising its right to require redemption upon a
Designated Event may be converted only if such holder withdraws its Redemption Notice in accordance
with the terms of the Indenture.

     In case an Event of Default shall have occurred and be continuing, the principal of, premium,
if any, and accrued interest, on all Notes may be declared by either the Trustee or the holders of
not less than 25% in aggregate principal amount of the Notes then outstanding, and upon said
declaration shall become, due and payable, in the manner, with the effect and subject to the
conditions provided in the Indenture.

     The Indenture contains provisions permitting the Company and the Trustee, with the consent of
the holders of at least a majority in aggregate principal amount of the Notes at the time
outstanding, to execute supplemental indentures adding any provisions to or changing in

A-8

 

any manner or eliminating any of the provisions of the Indenture or of any supplemental
indenture or modifying in any manner the rights of the holders of the Notes, subject to the
exceptions set forth in Section 12.02 of the Indenture. Subject to the provisions of the
Indenture, the holders of a majority in aggregate principal amount of the Notes at the time
outstanding may on behalf of the holders of all of the Notes waive any past default or Event of
Default, subject to the exceptions set forth in the Indenture. Any such consent or waiver by the
holder of this Note (unless revoked as provided in the Indenture) shall be conclusive and binding
upon such holder and upon all future holders and owners of this Note and any Notes which may be
issued in exchange or substitution hereof, irrespective of whether or not any notation thereof is
made upon this Note or such other Notes.

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

     The Company, the Trustee, any authenticating agent, any paying agent, any conversion agent and
any Note Registrar may deem and treat the registered holder hereof as the absolute owner of this
Note (whether or not this Note shall be overdue and notwithstanding any notation of ownership or
other writing hereon made by anyone other than the Company or any Note Registrar) for the purpose
of receiving payment hereof, or on account hereof, for the conversion hereof and for all other
purposes, and neither the Company nor the Trustee nor any other authenticating agent nor any paying
agent nor other conversion agent nor any Note Registrar shall be affected by any notice to the
contrary. All payments made to or upon the order of such registered holder shall, to the extent of
the sum or sums paid, satisfy and discharge liability for monies payable on this Note.

     No recourse for the payment of the principal of or any premium or interest on this Note, or
for any claim based hereon or otherwise in respect hereof, and no recourse under or upon any
obligation, covenant or agreement of the Company in the Indenture or any supplemental indenture or
in any Note, or because of the creation of any indebtedness represented thereby, shall be had
against any incorporator, stockholder, employee, agent, officer or director or subsidiary, as such,
past, present or future, of the Company or of any successor corporation, either directly or through
the Company or 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, all such liability being, by
acceptance hereof and as part of the consideration for the issue hereof, expressly waived and
released.

     Terms used in this Note and defined in the Indenture are used herein as therein defined.

A-9

 

ABBREVIATIONS

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

	 	 	 	 	 
	TEN COM -

	 	as tenants in common
	 	UNIF GIFT MIN ACT -___Custodian ___
	TEN ENT -

	 	as tenant by the entireties
	 	(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.

 

 

CONVERSION NOTICE

	 	 	 
	TO:

	 	ATHEROGENICS, INC.
	

	 	THE BANK OF NEW YORK TRUST COMPANY, N.A.

     The undersigned registered owner of this Note hereby irrevocably exercises the option to
convert this Note, or the portion thereof (which is $1,000 or a multiple thereof) below designated,
into shares of Common Stock of AtheroGenics, Inc. in accordance with the terms of the Indenture
referred to in this Note, and directs that the shares issuable and deliverable upon such
conversion, together with any check in payment for fractional shares and any Notes representing any
unconverted principal amount hereof, be issued and delivered to the registered holder hereof unless
a different name has been indicated below. Capitalized terms used herein but not defined shall
have the meanings ascribed to such terms in the Indenture. If shares or any portion of this Note
not converted are to be issued in the name of a person other than the undersigned, the undersigned
will provide the appropriate information below and pay all transfer taxes payable with respect
thereto. Any amount required to be paid by the undersigned on account of interest accompanies this
Note.

Dated:                                                             

	 	 	 	 	 
	

	 	 	 	 
	 
	 	 	 	 
	

	 	 	 	 
	 	 	Signature(s)
	 
	 	 	 	 
	 	 	Signature(s) must be guaranteed by an “eligible
guarantor institution” meeting the requirements of
the Note Registrar, which requirements include
membership or participation in the Security Transfer
Agent Medallion Program (“STAMP”) or such other
“signature guarantee program” as may be determined by
the Note Registrar in addition to, or in substitution
for, STAMP, all in accordance with the Securities
Exchange Act of 1934, as amended.
	 
	 	 	 	 
	

	 	 	 	 
	 	 	Signature Guarantee

 

 

     Fill in the registration of shares of Common Stock if to be issued, and Notes if to be
delivered, other than to and in the name of the registered holder:

	 	 	 	 	 
	 	 	 
	(Name)	 	 
	 
	 	 	 	 
	 	 	 
	(Street Address)	 	 
	 
	 	 	 	 
	 	 	 
	(City, State and Zip Code)	 	 
	 
	 	 	 	 
	 	 	 
	Please print name and address	 	 
	 
	 	 	 	 
	Principal amount to be converted	 	 
	(if less than all):	 	 
	 
	 	 	 	 
	$
	 	 	 	 
	

	 	 	 	 
	 
	 	 	 	 
	Social Security or Other Taxpayer	 	 
	Identification Number:	 	 
	 
	 	 	 	 
	 	 	 

 

 

OPTION TO ELECT REDEMPTION

UPON A DESIGNATED EVENT

	TO:	     ATHEROGENICS, INC.

     THE BANK OF NEW YORK TRUST COMPANY, N.A.

     The undersigned registered owner of this Note hereby irrevocably acknowledges receipt of a
notice from AtheroGenics, Inc. (the “Company”) as to the occurrence of a Designated Event with
respect to the Company and requests and instructs the Company to redeem the entire principal amount
of this Note, or the portion thereof (which is $1,000 or a multiple thereof) below designated, in
accordance with the terms of the Indenture referred to in this Note at the price of 100% of such
entire principal amount or portion thereof, together with accrued interest and Liquidated Damages,
if any, to, but excluding, the Designated Event Redemption Date, to the registered holder hereof.
Capitalized terms used herein but not defined shall have the meanings ascribed to such terms in the
Indenture.

Dated: ______________________

	 	 	 	 	 
	 

	 	 	 	                                                            
	

	 	 	 	                                                            

	 	 	 
	

	 	Signature(s)
	 
	 	 
	

	 	NOTICE: The above signatures of the holder(s) hereof
	

	 	must correspond with the name as written upon the
	

	 	face of the Note in every particular without
	

	 	alteration or enlargement or any change whatever.
	 
	 	 
	

	 	Principal amount to be redeemed (if less than all):
	 

	 	                                                            
	 

	 	                                                            
	

	 	Social Security or Other Taxpayer Identification
	

	 	Number

 

 

ASSIGNMENT

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

     In connection with any transfer of the Note prior to the expiration of the holding period
applicable to sales thereof under Rule 144(k) under the Securities Act (or any successor provision)
(other than any transfer pursuant to a registration statement that has been declared effective
under the Securities Act), the undersigned confirms that such Note is being transferred:

	 	 	 
	o

	 	To AtheroGenics, Inc. or a subsidiary thereof; or
	 
	 	 
	o

	 	To a “qualified institutional buyer” in compliance with Rule 144A under the
Securities Act of 1933, as amended; or
	 
	 	 
	o

	 	Pursuant to and in compliance with Rule 144 under the Securities Act of 1933, as
amended; or
	 
	 	 
	o

	 	Pursuant to a Registration Statement which has been declared effective under the
Securities Act of 1933, as amended, and which continues to be effective at the time
of transfer;

and unless the Note has been transferred to AtheroGenics, Inc. or a subsidiary thereof, the
undersigned confirms that such Note is not being transferred to an “affiliate” of the Company as
defined in Rule 144 under the Securities Act of 1933, as amended.

     Unless one of the boxes is checked, the Trustee will refuse to register any of the Notes
evidenced by this certificate in the name of any person other than the registered holder thereof.

Dated: ______________________

	 	 	 
	

	 	                                                            
	 
	 	 
	

	 	                                                            
	

	 	Signature(s)
	 
	 	 
	

	 	Signature(s) must be guaranteed by
an “eligible guarantor institution” meeting the requirements of the Note Registrar, which requirements include membership or participation in the Security Transfer
Agent Medallion Program (“STAMP”) or such other
“signature guarantee program” as may be determined by the Note Registrar in addition to, or in substitution

for, STAMP, all in accordance

 

 

	 	 	 
	

	 	with the Securities Exchange Act of 1934, as amended.
	 
	 	 
	

	 	                                                            
	

	 	Signature Guarantee

NOTICE: The signature on the Conversion Notice, the Option to Elect Redemption Upon a Designated
Event, or the Assignment must correspond with the name as written upon the face of the Note in
every particular without alteration or enlargement or any change whatever.

 

 

Schedule I

[Include Schedule I only for a Global Note]

ATHEROGENICS, INC.

1.50% Convertible Note Due 2012

No. _______

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Date	 	 	Principal Amount	 	 	Notation Explaining Principal Amount Recorded	 	 	Authorized Signature of Trustee or Custodian<PAGE>

                                                                   EXHIBIT 4.1.1

                           ALCAN ALUMINUM CORPORATION

                         HOURLY EMPLOYEES' SAVINGS PLAN

                           (Amendment and Restatement

                   Generally Effective as of January 1, 2000)

<PAGE>

                                    FOREWORD

Effective as of October 28, 1987, Alcan Aluminum Corporation adopted the Alcan
Aluminum Corporation Hourly Employees' Savings Plan (the "Plan") for the benefit
of Eligible Employees.

Since its inception, the Plan has been amended from time to time, and was most
recently amended and restated, generally effective September 1, 1997 (except as
otherwise specifically provided herein, including, without limitation, Appendix
G hereto) to reflect changes in the administration of the Plan and to make
certain other changes. The Plan is again amended and restated, generally
effective January 1, 2000, to further reflect the requirements of the Uniformed
Services Employment and Reemployment Rights Act of 1994, the Small Business Job
Protection Act of 1996, the Tax Reform Act of 1997, the Internal Revenue Service
Restructuring and Reform Act of 1998 and other new laws, and to make certain
other changes.

This restatement is generally effective January 1, 2000. Except as the text may
provide otherwise, the terms and provisions of the Plan as hereinafter set forth
and as it hereafter may be amended from time to time, establish the rights and
obligations with respect to the operation of the Plan and all transactions
hereunder on and after January 1, 2000, or, to the extent that the new laws
referred to above require an earlier effective date for a specific provision
hereof, such earlier date. This restatement shall not, however, be construed to
cause a retroactive increase or decrease in the amount of any contributions
previously allocated under the prior terms of this Plan with respect to
Participants whose employment terminated before January 1, 2000, except as
expressly provided otherwise.

The Plan in its entirety is intended to be a profit sharing plan and a qualified
cash and deferred arrangement and to comply with the provisions of Sections
401(a) and 401(k) of the Code. The adoption of this restatement of the Plan is
expressly conditioned upon receipt of a favorable determination letter from the
Internal Revenue Service with respect to the Plan as restated in this document.

                                        I
<PAGE>

            Alcan Aluminum Corporation Hourly Employees' Savings Plan

      (Amendment and Restatement Generally Effective as of January 1, 2000)

                                Table of Contents

<TABLE>
<CAPTION>
ARTICLE                                                                                                        PAGE
-------                                                                                                        ----
<S>                                                                                                            <C>
FOREWORD...................................................................................................      1

ARTICLE 1         DEFINITIONS..............................................................................      1

ARTICLE 2         ELIGIBILITY AND PARTICIPATION............................................................      9

ARTICLE 3         AFTER-TAX CONTRIBUTIONS AND BEFORE-TAX CONTRIBUTIONS.....................................     13

ARTICLE 4         EMPLOYER CONTRIBUTIONS...................................................................     21

ARTICLE 5         INVESTMENT OF CONTRIBUTIONS..............................................................     25

ARTICLE 6         VALUATION................................................................................     30

ARTICLE 7         VESTING..................................................................................     31

ARTICLE 8         WITHDRAWALS..............................................................................     32

ARTICLE 9         DISTRIBUTIONS ON TERMINATION OF EMPLOYMENT...............................................     36

ARTICLE 10        MISCELLANEOUS............................................................................     40

ARTICLE 11        FIDUCIARY AND ADMINISTRATION.............................................................     44

ARTICLE 12        MANAGEMENT OF THE TRUST FUND.............................................................     49

ARTICLE 13        AMENDMENT, MODIFICATION, SUSPENSION OR TERMINATION.......................................     51

ARTICLE 14        PARTICIPATION IN PLAN BY SUBSIDIARY OR AFFILIATED COMPANY................................     53

ARTICLE 15        LOANS TO PARTICIPANTS....................................................................     54

ARTICLE 16        ROLLOVERS AND TRANSFERS..................................................................     59

ARTICLE 17        IN EVENT PLAN BECOMES TOP-HEAVY..........................................................     61

APPENDIX A         ADOPTION TERMS AND CONDITIONS...........................................................     64

APPENDIX B        TEMPORARY PROVISIONS AND RESTRICTIONS WITH RESPECT TO CERTAIN TRANSACTIONS...............     72
</TABLE>

<PAGE>

                                    ARTICLE 1

                                   Definitions

The following words and phrases, as used herein, shall have the following
meanings unless a different meaning is plainly required by the context. Some of
the words and phrases used in the Plan are not defined in this Article 1, but
for convenience are defined as they are introduced into the text.

1.1   "Accounts" means a Participant's After-Tax Account, Basic Account,
      Before-Tax Account, Qualified Contributions Account, Rollover Account and
      any other account established pursuant to an Appendix attached hereto.

1.2   "Act" means the Employee Retirement Income Security Act of 1974, as
      amended from time to time, and all lawful regulations and pronouncements
      promulgated thereunder. Whenever a reference is made to a specific section
      of the Act, regulations or pronouncements, such reference shall be deemed
      to include any successor provisions having the same or a similar purpose.

1.3   "Affiliated Company" means (a) Alcan Inc. (or for periods prior to March
      1, 2001, Alcan Aluminium Limited), (b) any corporation affiliated
      therewith through more than 50% ownership, (c) any corporation, trade or
      business designated by the Corporation to be an Affiliated Company of the
      Corporation, and (d) any Employer or any other member of the Corporate
      Group.

1.4   "After-Tax Account" means the Account to which the Participant's After-Tax
      Contributions are credited, as adjusted in accordance with Article 6.

1.5   "After-Tax Contributions" means the contributions of a Participant by
      means of payroll deductions from the Participant's Compensation after
      applicable income taxes pursuant to Section 3.1.

1.6   "Alternate Payee" means a person who has or may potentially have a right,
      pursuant to a Qualified Domestic Relations Order, to receive all or a
      portion of the benefits payable under the Plan with respect to a
      Participant.

1.7   "Appropriate Form" means the form provided or prescribed by the Plan
      Administrator for the particular purpose.

1.8   "Basic Account" means the account maintained for a Participant to which is
      credited the Basic Contributions, if any, made on account of the
      Participant, as adjusted in accordance with Article 6.

1.9   "Basic Contributions" means the contributions of an Employer, if any,
      pursuant to Section 4.1. (See Appendices attached to this Plan.)

                                       1
<PAGE>

1.10  "Before-Tax Account" means the Account maintained for a Participant to
      which Before-Tax Contributions are credited, as adjusted in accordance
      with Article 6.

1.11  "Before-Tax Contributions" means the contributions made by the Employer
      pursuant to an election by a Participant to reduce any Compensation and/or
      Special Compensation otherwise currently payable to the Participant by an
      equal amount in accordance with the provisions of Section 3.2.

1.12  "Beneficiary" means a beneficiary or beneficiaries entitled to receive any
      benefits payable after the death of the Participant, as provided in
      Section 2.5.

1.13  "Board" means the Board of Directors of the Corporation.

1.14  "Code" means the Internal Revenue Code of 1986, as amended from time to
      time, and all lawful regulations and pronouncements promulgated
      thereunder. Whenever a reference is made to a specific section of the
      Code, regulations or pronouncements, such reference shall be deemed to
      include any successor provisions having the same or a similar purpose.

1.15  "Compensation" means direct compensation of a continuing nature paid to an
      Eligible Employee during any payroll period by an Employer or Employers.
      Compensation includes, but is not limited to, regular base pay, incentive
      program pay, overtime and other premium pay, lump sums which are paid
      after January 1, 1989 in lieu of salary or wage increases to each member
      of a defined group in a way which does not discriminate in favor of highly
      paid Employees, and amounts contributed by compensation reduction and
      deferral to the Plan and to any plan under Section 125 or 132(f)(4) of the
      Code. Compensation excludes, but the exclusion is not limited to, pay on
      the inactive payroll, Special Compensation as defined herein, gain sharing
      or similar payments (whether or not designated as Special Compensation),
      and vacation pay made in a lump sum because of termination.

      The amount of Compensation which, on an aggregate basis together with
      Special Compensation, is taken into account hereunder shall not be in
      excess of $170,000 for the Plan Year beginning January 1, 2000, or such
      higher dollar limit as may be in effect for any other Plan Year in
      accordance with the applicable provisions of Section 401(a)(17) of the
      Code. For any period shorter than a full Plan Year, the applicable
      limitation set forth in the immediately preceding sentence shall be
      multiplied by a fraction, the numerator of which is the number of months
      in such period, and the denominator of which is twelve.

1.16  "Corporate Group" means the Corporation, any other Employer, and any other
      company which is related to the Corporation or any other Employer as a
      member of a controlled group of corporations in accordance with Section
      414(b) of the Code, as a trade or business under common control in
      accordance with Section 414(c) of the Code, as an affiliated service group
      in accordance with Section 414(m) of the Code, or in any other manner in
      accordance with Section 414(o) of the Code. For the purposes under the
      Plan of determining a person's period of employment, each such other
      company shall be included in the Corporate

                                       2
<PAGE>

      Group only for such period or periods during which such other company is a
      member of such controlled group, under such common control, an affiliated
      service group or otherwise required to be aggregated, except as is
      designated pursuant to Section 14.2.

1.17  "Corporation" means Alcan Aluminum Corporation and any successor to such
      corporation by merger, or any other corporation or business entity which
      agrees to assume the position of Corporation hereunder.

1.18  "Disability" means disablement by disease or accidental bodily injury
      which prevents a person from performing any and every duty of his normal
      occupation, as determined by the Plan Administrator pursuant to uniform
      and nondiscriminatory rules, and which has lasted continuously for a
      six-month period.

1.19  "Domestic Relations Order" means any judgment, decree or order as defined
      in Section 414(p)(1)(B) of the Code.

1.20  "Effective Date" means October 28, 1987. The general effective date of
      this amendment and restatement is January 1, 2000.

1.21  "Eligible Employee" means an Employee who is: (a) regularly employed on a
      full-time basis on the active payroll by an Employer or by another member
      of the Corporate Group at a unit or division designated for participation
      in the Plan by the board of directors of such Employer, all in the manner
      and subject to the conditions contemplated under Articles 2 and 14 and any
      applicable Appendix; or (b) employed on a part-time or temporary basis on
      the active payroll by an Employer at a unit or division so designated for
      participation in the Plan but only as and when such Employee has completed
      a one-year period of Service, commencing with the date the individual
      first performed an hour of service within the meaning of 29 CFR Section
      2530.200b-2(a)(1) (which is incorporated herein by this reference) for any
      Affiliated Company or Predecessor Company. In no event, however, shall a
      person constitute an Eligible Employee who (i) is not paid from the active
      payroll of an Employer or any other member of the Corporate Group, (ii) is
      employed in accordance with an oral or written employment, consulting or
      other agreement or arrangement, the terms and conditions of which directly
      or indirectly preclude his participation in this Plan, or (iii) is treated
      as an Employee of the Employer or other member of the Corporate Group
      solely by reason of being an Leased Person, or otherwise performs services
      for an Employer or member of the Corporate Group pursuant to an
      arrangement between such Employer or Corporate Group member and any other
      third party (including without limitation a leasing organization or
      temporary agency).

      Notwithstanding the foregoing, only an Employee who is represented by a
      collective bargaining agent recognized by an Employer shall be deemed to
      be an `Eligible Employee' and only after such status results as a term or
      condition of the collective bargaining agreement between such collective
      bargaining agent and the Employer. Any such Employee represented by a
      collective bargaining agent shall be entitled to participate in the Plan
      only to the extent and on the terms and conditions specified in such
      collective

                                       3
<PAGE>

      bargaining agreement.

1.22  "Employee" means any common law employee or Leased Person of an Employer.
      The word "Employee" does not include any person who is categorized by an
      Employer or any Affiliated Company solely as a director or independent
      contractor or otherwise self-employed individual. In the event that a
      person renders service to an Employer or any Affiliated Company as a
      common law employee and in another capacity as a director, an independent
      contractor or otherwise as a self-employed individual, he shall be
      considered to be an Employee hereunder only in his capacity as a common
      law employee.

1.23  "Employer" means the Corporation and any entity which is an Affiliated
      Company pursuant to subsections (a), (b) or (c) of Section 1.3, which
      entity is designated an Employer by the Board and adopts the Plan as
      provided in Article 14 hereof.

1.24  "Entry Date" means, except as otherwise set forth in any Appendix hereto,
      the first day of any calendar month. (For the date participation may
      commence for an Eligible Employee, see Section 2.2 of this Plan.)

1.25  "Highly Compensated Employee" or "HCE" means for any Plan Year, an
      Employee who performs services for an Employer during the Plan Year and
      who (i) during the twelve-month period immediately preceding the first day
      of the Plan Year (the "Look Back Year") had compensation (as defined in
      Section 414(q)(4) of the Code) in excess of $85,000 for the calendar year
      beginning January 1, 2000 (or such other amount determined from time to
      time under Section 414(q)(1) of the Code), or (ii) is a 5% owner of an
      Employer (as defined in Section 416(i)(1) of the Code) at any time during
      the Plan Year or the Look Back Year; provided, however, that as used in
      Section 3.2, the term HCE shall mean those persons determined as of the
      first day of a Plan Year to be such regardless of any changes in the
      compensation of such persons or other persons during any other portion of
      the Plan Year. The determination of who is an HCE, will be made in
      accordance with Section 414(q) of the Code.

1.26  "Home Loan" means a Loan used to acquire, but not to construct, any
      dwelling unit which within a reasonable time is to be used (determined at
      the time the loan is made) as the principal residence of the Participant.

1.27  "Leased Person" means any individual (other than a common law employee of
      an Employer or an Affiliated Company) who, pursuant to an agreement
      between the Employer or Affiliated Company and any other person or leasing
      organization ("Leasing Organization") has performed services for the
      Employer or Affiliated Company (or for related persons determined in
      accordance with Section 414(n)(6) of the Code) on a substantially
      full-time basis for a period of at least one (1) year, and such services
      are performed under the primary direction or control of the Employer or
      Affiliated Company. Contributions or benefits provided to a Leased Person
      by the Leasing Organization which are attributable to services performed
      for the recipient employer shall be treated as provided by the recipient
      employer.

                                       4
<PAGE>

1.28  "Loan" means a loan to a Participant from the Plan pursuant to Article 15.

1.29  "Loan Valuation Date" means the Valuation Date as of which the amount of a
      Loan shall be established and as of which the Loan amounts shall be
      withdrawn from a Participant's Accounts and credited to his Outstanding
      Loan Balance.

1.30  "Military Service" means duty in the Armed Forces of the United States,
      whether voluntary or involuntary, provided that the Employee serves not
      more than one voluntary enlistment or tour of duty, and further provided
      that such voluntary enlistment or tour of duty does not follow involuntary
      duty.

1.31  "Outstanding Loan Balance" means the account maintained in accordance with
      Section 15.5(d) to record the balance of Loans to a Participant
      outstanding from time to time.

1.32  "Participant" means an Eligible Employee who is included in the Plan under
      Article 2 or a former Eligible Employee whose Accounts have not been fully
      distributed.

1.33  "Plan" means the Alcan Aluminum Corporation Hourly Employees' Savings
      Plan, as herein set forth or as it may be amended from time to time; such
      term will also include the Plan as it was in established on October 28,
      1987 and any later amendments thereto.

1.34  "Plan Administrator" means the Alcancorp Employee Benefits Committee,
      acting in its capacity as plan administrator of the Plan as described in
      the Act, or any successor plan administrator appointed by the Corporation.

1.35  "Plan Year" means the calendar year.

1.36  "Predecessor Company" means any company or other entity that is not an
      Affiliated Company and the operations of which, in whole or in part, are
      acquired by an Affiliated Company or by a Predecessor Company, but only in
      relation to the acquisition of those operations and provided that the
      company or other entity the operations of which are acquired does not
      become an Affiliated Company upon such acquisition.

1.37  "QDRO Balance" means the account maintained under the Plan for the benefit
      of an Alternate Payee pursuant to Section 10.2(b).

1.38  "QDRO Rules and Procedures" means the rules and procedures established by
      the Plan Administrator for the treatment of any Domestic Relations Order
      in respect of a Participant's benefits under the Plan.

1.39  "Qualified Contributions" means Employer contributions made to the Trust
      Fund pursuant to Section 4.4.

                                       5
<PAGE>

1.40  "Qualified Contributions Account" means the separate Account maintained
      for a Participant to record his share of the Trust Fund attributable to
      Qualified Contributions made on his behalf, as adjusted in accordance with
      Article 6.

1.41  "Qualified Domestic Relations Order" means a Domestic Relations Order as
      defined in Section 414(p)(1)(A) of the Code.

1.42  "Rollover Account" means the Account maintained for a Participant to which
      Rollover Contributions are credited, as adjusted in accordance with
      Article 6.

1.43  "Rollover Contributions" means the contributions of a Participant pursuant
      to the provisions of Article 16.

1.44  "Service" means the aggregate of all periods of a Participant's employment
      with an Affiliated Company or Predecessor Company since the Participant's
      original date of hire by an Affiliated Company or Predecessor Company or
      by another member of the Corporate Group with respect to which the
      Participant is treated as an Employee. Service shall include:

      (i) all periods of authorized leave of absence not in excess of two years,
      and

      (ii) in the case of a Participant whose employment terminates for any
      reason other than quit, discharge, an approved leave of absence
      immediately after which the Participant resumes employment, or death and
      such Participant is not reemployed by an Affiliated Company on or prior to
      the first anniversary date of such termination, a period of one year from
      the date of such termination; provided, however, that (A) if during such
      one-year period, the Participant quits, is discharged, retires, or dies,
      Service shall include only the time elapsing between the date of such
      termination and the date the Participant quits, is discharged, retires, or
      dies and (B) on and after January 1, 1985, if the absence of a Participant
      for a period exceeding one year is due to a Maternity Absence (as defined
      below), then the Participant shall be deemed to have terminated employment
      on the second anniversary of the first date of such absence and the period
      between the first and second anniversaries of such first date of absence
      shall not be treated as a period of Service or a period of absence.

      For purposes of determining Service, the term "Maternity Absence" means an
      absence because of the pregnancy of the Participant, the birth of a child
      of the Participant, the placement of a child by the Participant in
      connection with the adoption of a child by the Participant or for the
      purpose of caring for such child for a period immediately following such a
      birth or placement. No Maternity Absence shall be deemed to exist unless
      the Participant timely provides the Plan Administrator with sufficient
      information to establish the reason for the Participant's absence from
      active employment.

                                       6
<PAGE>

      If a Participant terminates employment and is re-employed by any
      Affiliated Company or Predecessor Company within the same calendar year,
      he shall be deemed not to have terminated employment during such year.

      If a person who is treated as a Leased Person for purposes of the Plan
      subsequently becomes an Eligible Employee, then such person's Service
      shall be determined as if such person had been employed by an Employer
      during the entire period for which such person had performed services for
      an Employer but had not been employed by an Employer. The service credit
      provisions of the Plan are intended to, and shall be construed to, include
      any Service necessary to satisfy Section 414(u) of the Code, which, as
      applicable to this Plan, generally provides for certain periods of
      qualified Military Service to constitute, upon a Participant's
      reemployment, Service hereunder.

1.45  "Special Compensation" means any payment designated as such by an Employer
      with respect to an Eligible Employee that is paid by the Employer in
      addition to the Eligible Employee's Compensation, but not in excess of the
      amount which together with such Eligible Employee's Compensation would
      exceed $170,000 for the Plan Year beginning January 1, 2000, or such
      higher dollar limit as may be in effect for any other Plan Year in
      accordance with the applicable provisions of Section 401(a)(17) of the
      Code. For any period shorter than a full Plan Year, the applicable
      limitation set forth in the immediately preceding sentence shall be
      multiplied by a fraction, the numerator of which is the number of months
      in such period, and the denominator of which is twelve.

1.46  "Trust Agreement" means (collectively and individually) the trust
      agreement(s), group insurance contract(s) or other funding vehicle
      agreement(s) or arrangement(s), as amended from time to time, between the
      Corporation and one or more individuals or entities providing for the
      holding, investment and administration of the assets of the Plan.

1.47  "Trust Fund" means the assets of the Plan, as held by the Trustee under
      the provisions of the Trust Agreement. Except as otherwise indicated
      herein, all assets of the Trust Fund shall be available to satisfy any
      benefit claims, expenses or other liabilities of the Plan.

1.48  "Trustee" means (collectively, or as appropriate to the context,
      individually) one or more individuals or entities acting as trustee,
      insurance company or other entity holding assets of the Plan from time to
      time under the Trust Agreement.

1.49  "Valuation Date" means each day the New York Stock Exchange is open for
      business, or such other date(s) as the Plan Administrator shall specify.

1.50  "Value" means the value of a Participant's Account as determined under
      Article 6 as of the applicable Valuation Date.

                                       7
<PAGE>

The masculine pronoun, whenever used herein, shall include the feminine pronoun,
and the singular shall include the plural.

                                       8
<PAGE>

                                    ARTICLE 2

                          Eligibility and Participation

2.1   Participation

      (a)   Generally. An Eligible Employee's eligibility for participation in
            the Plan and the benefits which shall be available to him as a
            Participant shall be determined by the Employer with respect to each
            class of Eligible Employees as set forth in the Instrument of
            Adoption executed by the Employer and attached as an Appendix
            hereto. Participation shall be either on the basis described under
            Paragraph (b) or (c) of this Section 2.1 as determined by the
            Employer as aforesaid.

      (b)   Basic Mandatory Participation. In the event that an Employer has
            agreed to contribute to the Plan as provided under Section 4 with
            respect to a designated class of Eligible Employees, each Eligible
            Employee in such class who has satisfied all requirements for
            eligibility under the applicable Appendix shall automatically become
            a Participant in the Plan; provided, however, that the allocation of
            Basic Contributions in respect of any such Participant shall be
            conditioned on the completion of such Appropriate Forms as the Plan
            Administrator may reasonably require.

            An Eligible Employee who has become a Participant in accordance with
            the provisions of this Section 2.1(b) shall, in addition to any
            entitlement under the preceding paragraph, be entitled, but shall
            not be required, to make or cause to be made on his account
            After-Tax Contributions or Before-Tax Contributions.

      (c)   Voluntary Participation. In the event that an Employer has adopted
            the Plan with respect to a designated class of Eligible Employees
            but has not agreed to contribute as provided under Section 4, each
            Eligible Employee in such class who has satisfied all requirements
            for eligibility under the applicable Appendix shall be entitled, but
            shall not be required, to elect to participate in the Plan and, as
            such Participant, to make or cause to be made on his account
            After-Tax Contributions or Before-Tax Contributions. Such Eligible
            Employee may become a Participant by filing the Appropriate Form or
            Forms as the Plan Administrator shall prescribe.

2.2   Date Participation Commences

      On or after the Effective Date, an Eligible Employee who is eligible to
      participate in the Plan pursuant to the terms of an Appendix shall become
      a Participant on the Entry Date occurring as soon as practicable after he
      has fulfilled all requirements for eligibility (including execution of any
      applicable Appropriate

                                       9
<PAGE>

      Forms), in accordance with the terms of this Article 2 and such Appendix,
      unless the Appendix shall provide for a different date for commencement of
      participation.

2.3   Plan Enrollment

      An Eligible Employee who is eligible to participate in the Plan pursuant
      to the terms of an Appendix may become a Participant by filing the
      Appropriate Form or Forms with the Plan Administrator, as indicated in
      Section 2.1, or in such other manner as the Plan Administrator may
      prescribe, within such time period as the Plan Administrator shall
      prescribe.

2.4   Requirements of Plan Enrollment

      The Eligible Employee who is eligible to participate in the Plan pursuant
      to the terms of an Appendix, in complying with Sections 2.1 and 2.3, shall
      (i) authorize the deduction by his Employer from his Compensation for
      After-Tax Contributions pursuant to Section 3.1 and/or the reduction in
      his Compensation and/or Special Compensation for Before-Tax Contribution
      pursuant to Section 3.2 (any such authorization or authorizations shall be
      deemed to be continuing authorizations until changed by notice to the Plan
      Administrator on the Appropriate Form or in such manner as the Plan
      Administrator may prescribe), (ii) agree to the terms of the Plan, (iii)
      specify marital status and agree to keep the Plan Administrator informed
      of any change in marital status, (iv) make an investment election in
      accordance with Section 5.2 and (v) indicate, to the extent and in such
      manner as the Plan Administrator may from time to time direct, whether he
      participates or has participated in any plan or plans (other than the
      Plan) permitting employee tax-deferred contributions and state the total
      amount of any such contributions made by him for the calendar year in
      which he complies with Section 2.3. In addition to any other limitation
      imposed pursuant to Section 402(g) of the Code, the Plan Administrator may
      limit the amount of the Before-Tax Contributions of any Participant who
      has made tax-deferred contributions to any plan (other than the Plan) in
      any calendar year for which the Participant elects to make Before-Tax
      Contributions to the Plan.

2.5   Beneficiary Designation

      The Participant's surviving spouse shall be the Beneficiary entitled to
      receive all benefits payable on the death of the Participant; provided,
      however, that if there is no surviving spouse, or if the surviving spouse
      had consented in writing to the designation of another Beneficiary or
      Beneficiaries, which consent acknowledged the effect of such designation,
      and which consent was witnessed by a notary public, the Participant may
      designate another Beneficiary by completing an Appropriate Form or in such
      manner as the Plan Administrator may prescribe. The Plan Administrator may
      allow for such a consent to expressly

                                       10
<PAGE>

      permit the Participant to change the designated Beneficiary without the
      spouse's further consent, provided that such consent acknowledges that the
      spouse has the right to limit consent to a specific Beneficiary. If there
      is no surviving spouse or other properly designated surviving Beneficiary,
      payment of benefits on the death of the Participant shall be made to the
      Participant's executor or administrator.

2.6   Suspension of Participation Due to Transfer to Non-Covered Status

      (a)   If a Participant who ceases to be an Eligible Employee who is
            eligible to participate in the Plan pursuant to the terms of an
            Appendix continues in the employ of an Affiliated Company, he shall
            be deemed to be a suspended Participant until the resumption of his
            status as such an Eligible Employee. The provisions of the Plan
            shall continue to apply to such a Participant except that:

            (i)   no final distribution of his Accounts pursuant to Article 9
                  shall occur as long as he so remains in the employ of an
                  Affiliated Company; and

            (ii)  during the period of his suspension, the Participant may not
                  make After-Tax Contributions under the Plan, no Before-Tax
                  Contributions shall be made by his Employer on his behalf, no
                  allocation of contributions under Article 4 shall be made to
                  his Basic Account, and the Participant may not borrow from the
                  Plan as otherwise permitted under Article 15.

      (b)   If and when the suspended Participant again becomes an Eligible
            Employee who is eligible to participate in the Plan pursuant to the
            terms of an Appendix, he may, subject to the provisions of Article
            3, resume making After-Tax Contributions or having Before-Tax
            Contributions made on his behalf, or both, as of any Entry Date
            thereafter by giving notice to the Plan Administrator in such manner
            as the Plan Administrator shall prescribe within such time period
            prior to such Entry Date as the Plan Administrator shall prescribe
            for the Plan.

      (c)   If the suspended Participant remains an Employee of the Corporation
            and is a member of a group that is covered by another 401(k) savings
            plan maintained by the Corporation or a Related Company, the
            Participant may, with the consent of the Plan Administrator and the
            plan administrator of the new plan, transfer his plan assets, plan
            loans, and loan repayment schedule to the new plan by completing the
            Appropriate Form or Forms.

                                       11
<PAGE>

2.7   Participation Upon Re-employment

      A Participant who terminates employment with an Employer will re-enter the
      Plan immediately upon return to employment with an Employer. Such a
      Participant may, pursuant to the provisions of Article 3 and subject to
      filing the Appropriate Forms with Plan Administrator, commence making
      After-Tax Contributions or Before-Tax Contributions, or both, beginning to
      the extent practicable with the paydate which coincides with or next
      follows the first day of the month after the Participant is reemployed. An
      Employee who satisfies the Plan's eligibility conditions but who
      terminates employment with an Employer prior to entering the Plan will
      become a Participant on the Entry Date following the date the Employee
      returns to employment with an Employer, provided he executes all
      applicable Appropriate Forms. An Employee who terminates employment prior
      to satisfying the Plan's eligibility conditions and later returns to
      employment with an Employer shall become a Participant after satisfaction
      of the general eligibility and participation requirements of the Plan.

                                       12
<PAGE>

                                    ARTICLE 3

                After-Tax Contributions; Before-Tax Contributions

3.1   Participant's After-Tax Contributions

      Subject to the limitations of Section 4.3, each Participant may elect to
      contribute to the Plan, on an after-tax basis, by means of payroll
      deduction from his Compensation, an integral percentage of up to 30% (16%
      prior to January 1, 2002), of such Compensation, such payroll deductions
      to commence to the extent practicable with the paydate which coincides
      with or next follows the Participant's Entry Date. Participant
      contributions to the Plan pursuant to this Section 3.1 are After-Tax
      Contributions. If Before-Tax Contributions pursuant to Section 3.2 are
      made with respect to the Participant, then the rate of After-Tax
      Contributions under this Section 3.1 shall not exceed 30% (16% prior to
      January 1, 2002), minus the rate of Before-Tax Contributions with respect
      to the Participant for the same payroll period.

      After-Tax Contributions pursuant to this Section 3.1 shall be transferred
      to the Trustee as soon as administratively practicable, but in all events
      within 15 days after the end of the month in which such contributions are
      withheld from the Participant's Compensation.

3.2   Before-Tax Contributions

      Subject to the limits of Sections 3.6, 4.3 and this Section, a Participant
      may elect to have an integral percentage of up to 30% (16% prior to
      January 1, 2002) of the Compensation otherwise payable to him by the
      Employer after the effective date of his election constitute a Before-Tax
      Contribution hereunder and have the Employer or collective bargaining
      agent reduce his Compensation by the amount of such Before-Tax
      Contribution and transfer such Before-Tax Contribution instead to the
      Trustee.

      In addition, but also subject to such limits, a Participant may elect to
      have any Special Compensation, otherwise payable to him reduced by 25%,
      50%, 75% or 100% and have the Employer make a contribution to the Trustee
      in an amount equal to such Before-Tax Contribution. However, in the event
      that the portion of the Special Compensation which the Participant has
      elected to receive in cash is not sufficient to pay any federal, state,
      local or other payroll or withholding taxes due or payable as a result of
      the entire Special Compensation payment, the Employer or Plan
      Administrator shall reduce the amount contributed to the Trustee on behalf
      of the Participant by the amount necessary to fully pay any such taxes,
      and the Participant shall be deemed to have elected to have only such net
      amount contributed as a Before-Tax Contribution hereunder.

                                       13
<PAGE>

      Payroll deferrals shall commence to the extent practicable with the
      paydate which coincides with or next follows the Participant's Entry Date.
      The deposit of Before-Tax Contributions shall be made no later than the
      15th day of the calendar month next following the month in which the cash
      Compensation or Special Compensation with respect to which such reduction
      is effective would have been paid.

      Before-Tax Contributions shall be such integral percentage of the
      Participant's Compensation or Special Compensation as the Participant
      shall have designated but not to exceed the maximum percentage applicable
      for the Plan Year with respect to such Compensation or Special
      Compensation as determined by the Plan Administrator, separately for HCEs
      and all other Participants; provided, however, that in no event shall the
      amount of a Participant's Before-Tax Contributions exceed $10,500 for the
      Plan Year beginning on or after January 1, 2000, or such higher dollar
      limit as may be in effect for any other Plan Year in accordance with the
      applicable provisions of Section 402(g) of the Code.

3.3   Voluntary Suspension

      A Participant may voluntarily suspend his After-Tax Contributions pursuant
      to Section 3.1 or the Before-Tax Contributions on his behalf pursuant to
      Section 3.2. To the extent practicable, any such suspension shall be
      effective as of the first paydate which coincides with or next follows any
      Entry Date by the Participant giving notice to the Plan Administrator in
      such manner as the Plan Administrator shall prescribe prior to such Entry
      Date. A Participant may resume his After-Tax Contributions or cause
      Before-Tax Contributions on his behalf to be resumed by giving notice to
      the Plan Administrator in such manner as the Plan Administrator shall
      prescribe, such resumption to be effective as of the first paydate next
      following such notification to the Plan Administrator or as soon as
      practicable thereafter.

3.4   Change in Contribution Rate

      A Participant may increase or decrease the amount of his After-Tax
      Contributions pursuant to Section 3.1 or the amount of Before-Tax
      Contributions pursuant to Section 3.2. To the extent practicable, any such
      change shall be effective as of the first paydate which next follows any
      Entry Date by the Participant giving notice to the Plan Administrator in
      such manner as the Plan Administrator shall prescribe prior to such Entry
      Date. Notwithstanding the foregoing provisions of this Section 3.4, in the
      event that the Before-Tax Contributions of a Participant equal $10,500 for
      the Plan Year beginning on January 1, 2000, or such higher dollar limit as
      may be in effect with respect to any other Plan Year in accordance with
      the applicable provisions of Section 402(g) of the Code, such Participant
      shall be deemed to have elected to commence to make After-Tax
      Contributions pursuant to Section 3.1 at the percentage rate then in
      effect with respect to the Participant's Before-Tax Contributions
      immediately prior to such deemed election, except as otherwise provided by
      procedures established by the Plan Administrator. When any modification in
      the manner of

                                       14
<PAGE>

      contribution becomes effective under a deemed election under the preceding
      sentence any affected elections previously in effect with respect to the
      Participant shall also be deemed to have been appropriately adjusted to
      conform to the deemed election contemplated under the preceding sentence.
      Any such deemed election (whether in the manner of contribution or
      otherwise) shall remain in effect with respect to the Participant until
      the January 1 immediately following the effective date of the deemed
      election. Effective on such January 1, the Participant will have to make
      another election to reinstate the manner of contribution in effect
      immediately prior to any such deemed election or the Plan Administrator
      may reinstate the election in force before the dollar limit was reached,
      under such procedures as the Plan Administrator shall deem appropriate.

3.5   Authority of Plan Administrator to Establish Dates

      Without limitation of the authority of the Plan Administrator under any
      other provision of the Plan, the Plan Administrator may establish the
      first date on which Participants may exercise their rights under Sections
      3.3 and 3.4 and the length of the notification periods required for such
      exercise.

3.6   Limitation on Before-Tax Contributions

      (a)   Notwithstanding the foregoing provisions of this Article 3, the Plan
            Administrator shall limit the amount of Before-Tax Contributions
            made on behalf of each Eligible Employee who is an HCE for each Plan
            Year to the extent necessary to ensure that either of the following
            tests is satisfied:

            (i)   the "Current Year Actual Deferral Percentage" (as hereinafter
                  defined) for the group of Eligible Employees who are HCEs is
                  not more than the "Prior Year Actual Deferral Percentage" of
                  all other Eligible Employees multiplied by 1.25; or

            (ii)  the excess of the Current Year Actual Deferral Percentage for
                  the group of Eligible Employees who are HCEs over the Prior
                  Year Actual Deferral Percentage of all other Eligible
                  Employees is not more than two percentage points, and the
                  Current Year Actual Deferral Percentage for the group of
                  Eligible Employees who are HCEs is not more than the Prior
                  Year Actual Deferral Percentage of all other Eligible
                  Employees multiplied by 2.0.

            Notwithstanding the provisions in subparagraphs (i) and (ii) above,
            the Corporation may elect, subject to the limitations described in
            Internal Revenue Service Notice 98-1, to perform the tests using the
            Current Year Actual Deferral Percentage for all Eligible Employees
            who are not HCEs rather than the Prior Year Actual Deferral
            Percentage. For Plan Years including and prior to the

                                       15
<PAGE>

            2001 Plan Year, the Plan had no HCEs and, thus, the Corporation made
            no election with respect to using the Current Year Actual Deferral
            Percentage for Eligible Employees who were not HCEs.

      (b)   For purposes of this Section 3.6, the term (i) "Actual Deferral
            Percentage" shall mean, for any specified group of Eligible
            Employees for any Plan Year, the average of such Eligible Employees'
            Deferral Percentages (as defined below) for such Plan Year, (ii)
            "Current Year Actual Deferral Percentage" shall mean, for any
            specified group of Eligible Employees, such group's Actual Deferral
            Percentage for the current Plan Year, and (iii) "Prior Year Actual
            Deferral Percentage" shall mean, for any specified group of Eligible
            Employees, such group's Actual Deferral Percentage for the
            immediately preceding Plan Year.

      (c)   For purposes of this Section 3.6, the term "Deferral Percentage"
            shall mean, for any Eligible Employee for any Plan Year, the ratio
            of:

            (i)   the aggregate of the Before-Tax Contributions which, in
                  accordance with the rules set forth in Treasury Regulation
                  Section 1.401(k)-1(b)(4), are taken into account with respect
                  to such Plan Year, to

            (ii)  such Eligible Employee's "Section 414(s) compensation" for
                  such Plan Year. For this purpose, the term "Section 414(s)
                  compensation" shall mean W-2 compensation as permitted and
                  described in Treasury Regulation Sections 1.414(s)-1(c)(2) and
                  1.415-2(d)(11)(i), and shall also include all amounts
                  currently not included in the Eligible Employee's gross income
                  by reason of Sections 125, 132(f)(4) and 402(e)(3) of the
                  Code. In the case of an Eligible Employee who begins, resumes,
                  or ceases to be eligible to elect to have Before-Tax
                  Contributions made on his behalf during a Plan Year, the
                  amount of Section 414(s) compensation included in the Actual
                  Deferral Percentage test is the amount of Section 414(s)
                  compensation received by the Eligible Employee during the
                  entire Plan Year. In no case shall the Section 414(s)
                  compensation for any Eligible Employee for any Plan Year
                  exceed $170,000, for the Plan Year beginning on January 1,
                  2000, or such higher dollar limit as may be in effect with
                  respect to any other Plan Year in accordance with the
                  applicable provisions of Section 401(a)(17) of the Code.

      (d)   The Deferral Percentage for any Participant who is a HCE for the
            Plan Year and who is eligible to have before-tax contributions made
            on his behalf under two or more arrangements described in Section
            40l(k) of the Code that are maintained by the Corporation, or other
            member of the Corporate Group, shall be determined as if such
            before-tax contributions were made under a single arrangement.
            Notwithstanding the foregoing, certain plans or portions of this
            Plan shall be treated

                                       16
<PAGE>

            as separate if disaggregated (mandatorily or otherwise) under
            applicable Treasury Regulations, including without limitation,
            Section 1.401(k)-1(b)(3)(ii).

            If the Plan is permissibly aggregated or is required to be
            aggregated with other plans having the same plan year, as provided
            under Treasury Regulation Section 1.401(k)-1(b)(3) for purposes of
            determining whether or not such plans satisfy Sections 401(k),
            401(a)(4), and 410(b) of the Code, then the provisions of this
            Section 3.6 shall be applied by determining the Actual Deferral
            Percentage of Eligible Employees as if all such plans were a single
            plan.

      (e)   In the event it is determined prior to any payroll period that the
            amount of Before-Tax Contributions elected to be made thereafter is
            likely to cause the limitation prescribed in this Section 3.6 to be
            exceeded, the amount of Before-Tax Contributions allowed to be made
            on behalf of Participants who are HCEs (and/or such other
            Participants as the Plan Administrator may prescribe) shall be
            reduced to a rate determined by the Plan Administrator (including a
            rate of 0% if the Plan Administrator so determines), and any
            elections of future Before-Tax Contributions which exceed the rate
            determined by the Plan Administrator shall be deemed to be After-Tax
            Contributions for the remainder of the Plan Year, notwithstanding
            the limitations on contribution rate changes in Section 3.4, except
            as otherwise provided by procedures established by the Plan
            Administrator. Except as is hereinafter provided, the Participants
            to whom such reduction is applicable and the amount of such
            reduction shall be determined pursuant to such uniform and
            nondiscriminatory rules as the Plan Administrator shall prescribe,
            which may differ among classes of Participants. Any such deemed
            election (whether in the manner of contribution or otherwise) shall
            remain in effect with respect to the Participant until the January 1
            immediately following the effective date of the deemed election.
            Effective on such January 1, the Participant will have to make
            another election to reinstate the manner of contribution in effect
            immediately prior to any such deemed election or the Plan
            Administrator may reinstate the election in force before the
            reduction was imposed, pursuant to such procedures as the Plan
            Administrator may deem appropriate.

      (f)   Notwithstanding the foregoing, with respect to any Plan Year in
            which Before-Tax Contributions made on behalf of Participants who
            are HCEs exceed the applicable limit set forth in this Section 3.6,
            the Plan Administrator may reduce the amount of excess Before-Tax
            Contributions made on behalf of such HCE by his portion of the
            "Aggregate Excess Deferrals" for such Plan Year in accordance with
            the following paragraphs:

            (i)   The "Aggregate Excess Deferrals" for such Plan Year shall mean
                  the total amount of Before-Tax Contributions which would be
                  distributed to HCEs if the Deferral Percentage

                                       17
<PAGE>

                  of the Participant who is an HCE with the highest Deferral
                  Percentage were reduced to the extent necessary to satisfy the
                  Actual Deferral Percentage test or cause such percentage to
                  equal the Deferral Percentage of the Participant who is an HCE
                  with the next highest percentage and this process were
                  repeated until the Actual Deferral Percentage Test was
                  satisfied, as determined under Section 401(k) of the Code.

            (ii)  The Before-Tax Contributions of the HCE with the highest
                  amount of Before-Tax Contributions shall be reduced by the
                  lesser of the amount necessary to exhaust the Aggregate Excess
                  Deferrals or to cause the Before-Tax Contributions of such HCE
                  to equal the Before-Tax Contributions of the HCE with the next
                  highest amount of Before-Tax Contributions. This process shall
                  be repeated until the aggregate Before-Tax Contributions of
                  HCEs shall be reduced by an amount equal to the Aggregate
                  Excess Deferrals, in accordance with Section 401(k) of the
                  Code.

            (iii) Such excess Before-Tax Contributions shall be distributed
                  (along with earnings attributable to such excess Before-Tax
                  Contributions, as determined pursuant to Section 3.6(g)) to
                  the affected HCEs as soon as practicable after the end of such
                  Plan Year, and in all events prior to the end of the next
                  following Plan Year.

      (g)   Income on a Participant's excess Before-Tax Contributions shall be
            determined by multiplying the income allocated to his Before-Tax
            Contributions Account for the Plan Year in which such excess
            Before-Tax Contribution was made by a fraction, the numerator of
            which is the excess Before-Tax Contributions for such Participant
            for the Plan Year, and the denominator of which is the total
            Before-Tax Contributions Account balance for such Participant as of
            the first day of the Plan Year, plus the Before-Tax Contributions
            made on behalf of the Participant during the Plan Year.

      (h)   Distributions pursuant to this Section 3.6 shall be made
            proportionately from the Investment Funds with respect to the
            Participant's Account or Accounts from which distributions are made.

      (i)   The Plan Administrator may, to the extent permitted under Treasury
            Regulation Section 1.401(k)-1(f)(3) or other lawful regulation,
            recharacterize as After-Tax Contributions for such Plan Year all or
            a portion of the Before-Tax Contributions for Participants who are
            HCEs to the extent necessary to comply with the applicable limit set
            forth in this Section 3.6 and in the same order as set forth in
            paragraph (f)(ii) above. Recharacterized amounts shall remain
            nonforfeitable and subject to the same distribution requirements as
            Before-Tax Contributions.

            Recharacterization shall occur no later than 2-1/2 months after the
            last day of the Plan Year in which such excess Before-Tax
            Contributions arose.

                                       18
<PAGE>

      (j)   Notwithstanding any distributions or recharacterizations pursuant to
            the provisions of this Section 3.6, excess Before-Tax Contributions
            shall be treated as Annual Additions for purposes of Section 4.3.

      (k)   In the event that an Employer elects to make a Qualified
            Contribution on behalf of any or all Participants in the Plan, such
            Qualified Contribution, to the extent specified, shall be treated as
            a Before-Tax Contribution solely for purposes of this Section 3.6.

      (l)   The Plan Administrator may, in its sole discretion, elect to use any
            combination of the methods described in this Section 3.6 to satisfy
            the limitations contained herein; provided, however, that such
            combination of methods shall be applied in a uniform and
            nondiscriminatory manner.

3.7   Distributions of Excess Deferrals

      (a)   Notwithstanding any other provision of the Plan, Excess Deferrals
            (as hereinafter defined), plus any income and minus any loss
            allocable thereto for both the calendar year and the "gap period"
            between the end of the calendar year and the date the distribution
            is made (determined in the same manner as the method set forth in
            Section 3.6(g)), shall be distributed to Participants who claim such
            allocable Excess Deferrals at any time during the calendar year, or
            no later than April 15 of the calendar year following the calendar
            year in which the excess occurred.

      (b)   For purposes of this Section 3.7, "Excess Deferrals" shall mean the
            amount of a Participant's Before-Tax Contributions (and other
            "elective deferrals" within the meaning of Section 402(g)(3) of the
            Code) for a calendar year that the Participant allocates to this
            Plan pursuant to the claim procedure set forth in Section 3.7(c)
            hereof.

      (c)   A Participant may make a claim for the distribution of Excess
            Deferrals pursuant to the terms and conditions of this Section
            3.7(c). Such Participant's claim shall be in writing; shall be
            submitted to the Plan Administrator no later than March 1 of the
            calendar year following the calendar year of the Excess Deferrals or
            such later date as prescribed by the Plan Administrator; shall
            specify the amount of the Participant's Excess Deferrals for the
            preceding calendar year; and shall be accompanied by (i) the
            Participant's written statement that if such amounts are not
            distributed, such Excess Deferrals, when added to amounts deferred
            under other plans or arrangements described in Section 401(k),
            408(k), 403(b) or 501(c)(18) of the Code, exceed the limit imposed
            on the Participant in accordance with the applicable provisions of
            the Code for the year in which the deferral occurred, and (ii) such
            documentation as the Plan Administrator, in its sole discretion,
            shall require to substantiate the Participant's written statement.
            The Plan Administrator may, on a

                                       19
<PAGE>

            uniform and nondiscriminatory basis, automatically deem the
            Participant to have made a claim for a distribution of Excess
            Deferrals if such excess arises by taking into account only those
            elective deferrals made to this Plan and any other plans of the
            Employer and the Corporate Group.

      (d)   The Excess Deferrals distributed to a Participant with respect to a
            calendar year shall be adjusted for income and, if there is a loss
            allocable to the Excess Deferrals, shall in no event exceed the
            lesser of the Participant's Before-Tax Account under the Plan or the
            Participant's Before-Tax Contributions for the year.

      (e)   Excess Deferrals shall be treated as annual additions under the
            Plan, unless such amounts are distributed no later than the first
            April 15th following the close of the Participant's taxable year in
            which such excess occurred.

3.8   Coordination of Excess Amounts under Sections 401(k) and 402(g) of the
      Code

      (a)   The amount of excess Before-Tax Contributions to be recharacterized
            or distributed under Section 3.6 with respect to a Participant for
            the Plan Year shall be reduced by any Excess Deferrals previously
            distributed to such Participant under Section 3.7 for the
            Participant's taxable year ending with or within such Plan Year.

      (b)   The amount of Excess Deferrals that may be distributed under Section
            3.7 with respect to a Participant for a taxable year shall be
            reduced by any excess Before-Tax Contributions previously
            distributed to such Participant or recharacterized with respect to
            such Participant for the Plan Year beginning with or within such
            taxable year.

3.9   Catch-Up Contributions after Return from Military Service

      In the event that a Participant returns to employment with an Employer
      immediately following a leave of absence due to Military Service and had
      failed to make after-tax contributions and/or before-tax contributions
      while on such leave of absence, then to the extent required by Section
      414(u) of the Code, the Participant shall be permitted to elect to make
      catch-up contributions relating to such period of Military Service. The
      period during which such Participant may make such catch-up contributions
      shall commence on his date of rehire and shall continue for a period which
      is the lesser of five years following such date of rehire or three times
      the Participant's period of Military Service. Such deferrals shall not be
      required to be taken into account for purposes of Section 3.6 in the year
      that they are made or the year to which they relate.

                                       20
<PAGE>

                                    ARTICLE 4

                             Employer Contributions

4.1   Applicability and Amount

      (a)   This Section 4.1 shall be applicable only to the extent that an
            Employer has agreed, pursuant to a collective bargaining agreement
            between such Employer and a collective bargaining agent to make
            contributions (referred to herein as "Basic Contributions") on
            behalf of those Participants who are represented by such collective
            bargaining agent, and shall be subject to any contrary provisions of
            any applicable Appendix.

      (b)   Each Employer shall make such Basic Contributions to the Plan on
            behalf of each Participant, as provided under Section 4.1(a) with
            respect to such Participant, for credit to the Participant's Basic
            Account. An Eligible Employee performing services for, or on behalf
            of, his collective bargaining agent shall have Basic Contributions
            made on his behalf to the same extent contributions would have been
            made by his Employer if such services had been performed for his
            Employer.

4.2   Expenses

      The expenses of the administration of the Plan shall be borne by the Trust
      Fund, except to the extent paid by the Corporation.

4.3   Limitations

      Notwithstanding any provision of the Plan to the contrary, in no event in
      any calendar year shall the "Annual Addition" (as hereinafter defined) on
      behalf of any Participant exceed the lesser of:

            (i)   25% of the Participant's "Section 415 compensation" (as
                  hereinafter defined) for the calendar year; or

            (ii)  $30,000 or such greater amount as is permissible under Section
                  415(c)(1)(A) of the Code, subject to any adjustment under
                  Section 415(d) of the Code.

      The term "Annual Addition" means the sum for any calendar year of (a) any
      Employer contributions (including Before-Tax Contributions) to the Plan
      and to all other defined contribution plans (combining, for this purpose,
      all defined contribution plans of the Corporate Group, as modified by
      Section 415(h) of the Code), (b) forfeitures under all such plans, (c) all
      after-tax contributions (including After-Tax

                                       21
<PAGE>

      Contributions) under such plans, and (d) amounts described in Sections
      415(l)(1) and 419A(d)(2) of the Code for the year.

      For purposes of this Section 4.3, the term "Section 415 compensation"
      means the Participant's W-2 compensation as permitted and described in
      Treasury Regulation Section 1.415-2(d)(11)(i), and shall also include, for
      Plan Years beginning on and after January 1, 1998, all amounts currently
      not included in the Eligible Employee's gross income by reason of Sections
      125, 132(f)(4) and 402(e)(3) of the Code.

      If a Participant is also participating in another tax-qualified defined
      contribution plan maintained by any member of the Corporate Group (as
      modified by Section 415(h) of the Code), the otherwise applicable
      limitation on Annual Additions under this Plan shall be reduced by the
      amount of annual additions (within the meaning of Section 415(c)(2) of the
      Code) under any such other defined contribution plan.

      If the limitations applicable to any Participant in accordance with this
      Section 4.3 would be exceeded, the contributions made by or on behalf of a
      Participant under the Plan shall be reduced in the following order, but
      only to the extent necessary to meet the limitations: (i) After-Tax
      Contributions, (ii) Before-Tax Contributions, (iii) Basic Contributions,
      and (iv) Qualified Contributions made pursuant to Section 4.4.

      In the event that, notwithstanding the foregoing provisions of this
      Section 4.3, the limitations with respect to Annual Additions prescribed
      hereunder are exceeded with respect to any Participant and such excess
      arises as a consequence of an error in estimating compensation, the
      allocation of forfeitures, if any, or a reasonable error in determining
      the amount of Before-Tax Contributions:

            (i)   the After-Tax Contribution and Before-Tax Contribution
                  portions of such excess shall be returned to the Participant,
                  along with any income attributable thereto; and

            (ii)  the Basic Contribution portion shall be held in a suspense
                  account and, if such Participant remains a Participant, shall
                  be used to reduce Basic Contributions for such Participant for
                  the succeeding Plan Years; provided, however, that if such
                  Participant ceases to be an active Participant in the Plan,
                  the suspense account shall be used to reduce Basic
                  Contributions for all Participants in the Plan Year in which
                  he ceases to be a Participant, and all succeeding years, as
                  necessary.

4.4   Qualified Contributions

      An Employer may, in its sole discretion, make a Qualified Contribution in
      order to satisfy the requirements of Section 3.6. A Qualified Contribution
      is a contribution that (i) is made by the Employer that may be aggregated
      with other contributions in accordance with Sections 3.6; (ii) is
      nonforfeitable at all times; (iii)

                                       22
<PAGE>

      may not be distributed to a Participant or any Beneficiary until the
      earliest date provided for in Section 401(k)(2)(B) of the Code (determined
      without regard to subsection (i)(IV) of such Section) and (iv) complies
      with the requirements of Treasury Regulation Section 1.401(k)-1(b)(5).

      A Qualified Contribution may take the form of a qualified nonelective
      contribution (as defined in Treasury Regulation Section
      1.401(k)-1(g)(13)(ii)). The Employer shall specify the form of the
      Qualified Contribution, and the Participants to whom such contribution is
      to be allocated.

4.5   Return of Contribution

      Notwithstanding any provision of the Plan to the contrary, a contribution
      made to the Plan by an Employer shall be returned to it if:

      (a)   the contribution is made by reason of mistake of fact;

      (b)   the contribution is conditioned upon its deductibility under Section
            404 of the Code and such deduction is disallowed; or

      (c)   the contribution is conditioned on the initial qualification of the
            Plan, under Section 401(a) of the Code, with respect to an Employer
            which has adopted the Plan and such initial qualification is not
            obtained;

      provided, however, that such return of contribution is generally made
      within one year of the mistaken payment of the contribution, the
      disallowance of the deduction or the failure of the Plan to qualify
      initially with respect to an Employer, as the case may be. All
      contributions to the Plan by an Employer made on or after January 1, 1987
      shall be conditioned upon their deductibility under Section 404 of the
      Code.

4.6   Employer Contributions upon Return from Military Service

      In the event that a Participant returns to employment with an Employer
      immediately following a leave of absence due to Military Service, any
      Employer contribution, or any other matching or profit sharing
      contribution, which would have been made on behalf of such Participant,
      had he not been on such leave of absence, shall be made on his behalf and
      allocated to his Basic Account or other account, as applicable, to the
      extent required by Section 414(u) of the Code. Any such allocation shall
      be calculated based on any catch-up contributions made under Section 3.9
      using estimated Compensation during such period of Military Service, based
      on his rate of Compensation at the time such leave of absence commenced
      and based on the matching or other contribution formula in effect for the
      Plan Year to which such catch-up contribution relates, as applicable. Such
      Employer contribution, or any other employer matching or profit

                                       23
<PAGE>

      sharing contribution, shall not be required to be taken into account under
      Section 4.3 in the Plan Year in which such contribution is made or to
      which such contribution relates.

                                       24
<PAGE>

                                    ARTICLE 5

                           Investment of Contributions

5.1   Investment Funds

      Contributions to the Plan shall be invested in one or more of the
      following Investment Funds, in accordance with Section 5.2

            The Fixed Income Fund, which shall be invested and reinvested by the
            Trustee in fixed income and other securities or investments
            anticipated or purporting to have a relatively stable rate of return
            and safety of principal, including without limitation bonds, any
            so-called "guaranteed" income or investment or similar contract
            issued by an insurance company or companies, a bank or other
            financial institution, in each case, as designated by the Plan
            Administrator, or in any combination of such investments.

            The Large Cap S&P 500 Fund, which shall be invested and reinvested
            by the Trustee in shares of the Vanguard 500 Index Fund, which
            attempts to provide investment results that parallel the performance
            of the Standard & Poor's 500 Composite Stock Price Index.

            The Mid and Small Cap Wilshire 4500 Fund, which shall be invested
            and reinvested by the Trustee in shares of the Vanguard Extended
            Market Index Fund, which attempts to provide investment results that
            parallel the performance of the unmanaged Wilshire 4500 Index.

            The International Index Fund, which shall be invested and reinvested
            by the Trustee in shares of the Vanguard Total International Stock
            Index Fund which attempts to provide investment results that
            parallel the performance of two indexes compiled by Morgan Stanley
            Capital International, the Europe, Australia, Far East Index and the
            Emerging Markets (select) Index.

            The Bond Fund, for the period on or after June 8, 2000, which shall
            be invested and reinvested by the Trustee in shares of the Vanguard
            Total Bond Market Index Fund, which attempts to provide investment
            results that parallel the performance of the Lehman Brothers
            Aggregate Bond Index.

            The Company Stock Fund, which shall be invested and administered by
            the Trustee in securities of the ultimate parent corporation of the
            Corporation, Alcan Inc. (or for periods prior to March 1, 2001,
            Alcan Aluminium Limited). Said securities may be contributed by the
            Corporation or acquired in accordance with the provisions of the
            Trust Agreement on the open market or from

                                       25
<PAGE>

            Alcan Inc. (or for periods prior to March 1, 2001, Alcan Aluminium
            Limited) or in private transactions.

      With respect to the period prior to June 8, 2000, the following Mix Funds:

            The "Mix A" Fund, which shall be invested and reinvested by the
            Trustee in approximately 80% of the Fixed Income Fund, 5% of the
            International Index Fund, and 15% of the Large Cap S&P 500 Fund.

            The "Mix B" Fund, which shall be invested and reinvested by the
            Trustee in approximately 60% of the Fixed Income Fund, 10% of the
            International Index Fund, 25% of the Large Cap S&P 500 Fund, and 5%
            of the Mid and Small Cap Wilshire 4500 Fund.

            The "Mix C" Fund, which shall be invested and reinvested by the
            Trustee in approximately 40% of the Fixed Income Fund, 20% of the
            International Index Fund, 30% of the Large Cap S&P 500 Fund, and 10%
            of the Mid and Small Cap Wilshire 4500 Fund.

            The "Mix D" Fund, which shall be invested and reinvested by the
            Trustee in approximately 20% of the Fixed Income Fund, 25% of the
            International Index Fund, and 40% of the Large Cap S&P 500 Fund, and
            15% Mid and Small Cap Wilshire 4500 Fund.

            The four above mixed funds shall be rebalanced periodically at such
            times as the Plan Administrator and Trustee may determine.

      With respect to the period on or after June 8, 2000, the following
      Vanguard Life Strategy Funds:

            The Vanguard LifeStrategy Income Fund, which shall be invested and
            reinvested by the Trustee in shares of the Vanguard LifeStrategy
            Income Fund, which attempts to provide current income based on a
            portfolio consisting of a combination of other Vanguard mutual funds
            which have a target equity exposure of 20%.

            The Vanguard LifeStrategy Conservative Growth Fund, which shall be
            invested and reinvested by the Trustee in shares of the Vanguard
            LifeStrategy Conservative Growth Fund, which attempts to provide
            current income and low-to-moderate growth of capital based on a
            portfolio consisting of other Vanguard mutual funds which have a
            target equity exposure of 40%.

                                       26
<PAGE>

            The Vanguard LifeStrategy Moderate Growth Fund, which shall be
            invested and reinvested by the Trustee in shares of the Vanguard
            Moderate Growth Fund, which attempts to provide growth of capital
            and a reasonable level of current income based on a portfolio
            consisting of other Vanguard mutual funds which have a target equity
            exposure of 60%.

            The Vanguard LifeStrategy Growth Fund, which shall be invested and
            reinvested by the Trustee in shares of the Vanguard LifeStrategy
            Growth Fund, which attempts to provide growth of capital based on a
            portfolio consisting of other Vanguard mutual funds which have a
            target equity exposure of 80%.

      The Plan Administrator, may, in its sole discretion, at any time and from
      time to time establish additional Investment Funds, in which contributions
      to the Plan may be invested, or eliminate or replace any existing
      Investment Fund.

      Any portion of an Investment Fund may, pending permanent investment or
      distribution, be invested in short-term securities issued or guaranteed by
      the United States of America or any other country or any agency or
      instrumentality thereof or any other investments of a short-term nature,
      including corporate obligations or participation therein. A portion of an
      Investment Fund may be maintained in cash. Any portion of an Investment
      Fund may be invested through the medium of the Alcancorp Master Savings
      Trust or of any common, collective or commingled trust fund maintained by
      the Trustee which is invested principally in property of the kind
      specified for such Investment Fund.

      Notwithstanding the provisions of this Article 5, the investment and
      administration of the assets of the Plan shall be governed by the
      provisions of the Trust Agreement, and without limitation of the
      foregoing, the Plan Administrator may designate an investment manager, as
      defined in Section 3(38) of the Act, to manage (including the power to
      acquire and dispose of) all or any portion of the assets of the Plan.

      The Corporation currently intends that this Plan should comply with the
      provisions of Section 404(c) of the Act and until the Corporation shall
      otherwise direct, this Plan shall be so construed and the Plan
      Administrator shall, insofar as is practical, arrange for appropriate
      steps to be taken in furtherance thereof. However, to the extent that
      Section 404(c) of the Act is not applicable or the terms thereof are not
      satisfied, the Participants and Beneficiaries shall constitute named
      fiduciaries under the Act with respect to their authority to direct
      investment of their Accounts.

                                       27
<PAGE>

5.2   Investment Options

      All Contributions to the Plan shall be invested as initially elected by
      the Participant pursuant to Section 2.4, or as subsequently changed
      pursuant to Section 5.4, in multiples of 1% thereof to be invested in any
      Investment Fund.

      Notwithstanding anything in the Plan to the contrary, during any period
      during which a Participant is employed by an Employer, 50% or more of the
      voting stock of which is not directly or indirectly owned by Alcan Inc.
      (or for periods prior to March 1, 2001, Alcan Aluminium Limited) and which
      has not been specifically excluded from the application of this provision
      by the Board, the Participant may not invest any future After-Tax
      Contributions, Before-Tax Contributions, Rollover Contributions, Qualified
      Contributions, Basic Contributions, or any other contributions in the
      Company Stock Fund and all such future contributions made by the
      Participant or on his behalf shall be invested as initially elected by the
      Participant pursuant to Section 2.4, or as subsequently changed pursuant
      to Section 5.4, with multiples of 1% thereof to be invested in Investment
      Funds other than the Company Stock Fund. Recordkeeping accounts shall be
      established for each Participant under each Investment Fund with respect
      to which such contributions are being invested.

5.3   Reinvestment in Same Fund

      Dividends, interest and other distributions received by the Trustee in
      respect of any Investment Fund shall be reinvested in the same Investment
      Fund.

5.4   Change in Investment Election

      A Participant may change his future investment directions, within the
      limits set forth in Section 5.2, as of the first practicable paydate
      coinciding with or next following the start of any calendar month, with
      respect to contributions to be made on such paydate and thereafter, by
      giving prior notice to the Plan Administrator or its delegate in such
      manner as the Plan Administrator shall require. Any such change in
      investment elections pursuant to this Section 5.4 shall be subject to such
      limitations on frequency as the Plan Administrator shall from time to time
      prescribe, but shall be permitted no less frequently than once within any
      calendar month.

5.5   Fund Reallocations

      A Participant may direct, by giving prior notice to the Plan Administrator
      or its delegate in such manner as the Plan Administrator shall require,
      that, as of the next practicable Valuation Date, the Value of his

                                       28
<PAGE>

      Accounts be transferred from one or more Investment Funds to other
      Investment Funds (in 1% multiples thereof); provided, however, that a
      Participant who is employed by, or has terminated employment from, an
      Employer, 50% or more of the voting stock of which is not directly or
      indirectly owned by Alcan Inc. (or for periods prior to March 1, 2001,
      Alcan Aluminium Limited) and which has not been specifically excluded from
      the application of this provision by the Board, may not direct that any
      portion of the Value of his Accounts be reallocated to the Company Stock
      Fund.

      Any such reallocation pursuant to this Section 5.5 shall be subject to
      such limitations on frequency as the Plan Administrator shall from time to
      time prescribe, but shall be permitted no less frequently than once within
      any calendar month and shall be implemented as of the next Valuation Date
      as soon as reasonably practicable on or after timely receipt of such
      notice by the Plan Administrator or its delegate.

5.6   Voting

      Full and fractional shares of Alcan Inc. (or for periods prior to March 1,
      2001, Alcan Aluminium Limited) credited to a Participant's Accounts shall
      be voted by the Trustee in accordance with the instructions of the
      Participant if such instructions are given on the form provided for that
      purpose and received by the Trustee at least 10 days prior to the date on
      which the Trustee is to vote such shares. The Employer shall notify
      Participants of each occasion for the exercise of voting. The Trustee
      shall vote any shares for which timely instructions for voting have not
      been received from a Participant in the same proportion as the shares for
      which the Trustee has received instructions from Participants hereunder.

                                       29
<PAGE>

                                    ARTICLE 6

                                    Valuation

6.1   Maintenance of Accounts

      The Plan Administrator shall separately maintain on behalf of each
      Participant, where applicable, and shall separately account for: After-Tax
      Account, Before-Tax Account, Basic Account, Qualified Contributions
      Account, Rollover Account and such other Accounts as may be set forth in
      an Appendix hereto.

6.2   Valuation

      As of each Valuation Date, the Plan Administrator shall cause to be
      adjusted the After-Tax Account, Before-Tax Account, Basic Account,
      Qualified Contributions Account, Rollover Account and any other Account
      for each Participant on whose behalf any such Account is maintained to
      reflect his share of contributions, loan repayments, withdrawals,
      distributions, loans, income, expenses payable from the Trust Fund and any
      increase or decrease in the value of Trust Fund assets since the preceding
      Valuation Date. The fair market value on the Valuation Date is to be used
      for this purpose, and the respective Accounts of Participants are to be
      adjusted in accordance with the valuation.

                                       30
<PAGE>

                                    ARTICLE 7

                                     Vesting

7.1   Participant Accounts

      Except as otherwise set forth in any applicable Appendix, the Value of a
      Participant's After-Tax Account, Before-Tax Account, Basic Account,
      Qualified Contributions Account, Rollover Account and any other Account
      established hereunder, shall be 100% vested in him at all times.

                                       31
<PAGE>

                                    ARTICLE 8

                                   Withdrawals

8.1   Withdrawals -- Priorities of Withdrawals

      A Participant may make withdrawals from his Accounts subject to the terms
      and conditions contained in this Article 8, except as otherwise provided
      in an applicable Appendix. Withdrawals shall be made in the order of
      priority set forth below. No amount shall be withdrawn from a priority
      category unless all amounts available for withdrawal from prior categories
      have been withdrawn.

      After-Tax Contributions

      1.    A Participant may withdraw, with earnings, an amount not in excess
            of the Value of his After-Tax Account attributable to his
            non-withdrawn After-Tax Contributions; provided that the amount
            withdrawn pursuant to this clause may not exceed the Value of the
            portion of the After-Tax Account attributable to such contributions.

      Rollover Contributions

      2.    A Participant may withdraw, with earnings, an amount not in excess
            of the Value of his Rollover Account attributable to his
            non-withdrawn Rollover Contributions; provided that the amount
            withdrawn pursuant to this clause may not exceed the Value of such
            Rollover Account.

      Vested Basic Account

      3.    A Participant may withdraw all or any part of the portion of the
            Value of his vested Basic Account attributable to Basic
            Contributions made on his behalf at least 24 months preceding the
            Valuation Date as of which the withdrawal is made, if any, and he
            may also withdraw all earnings in his Basic Account.

      Age 59-1/2 Withdrawal from Basic Account

      4.    A Participant who has attained age 59-1/2 as of the Valuation Date
            as of which such withdrawal is to be made, including one who has had
            a termination of Service and retains a balance in the Plan pursuant
            to Section 9.3, may withdraw with earnings all or any part of the
            remaining vested Value of his Basic Account.

                                       32
<PAGE>

      Age 59-1/2 Withdrawal from Before-Tax Account

      5.    A Participant who has attained age 59-1/2 as of the Valuation Date
            as of which such withdrawal is to be made, including one who has had
            a termination of Service and retains a balance in the Plan pursuant
            to Section 9.3, may withdraw, with earnings, all or any part of his
            Before-Tax Account.

      Notwithstanding the preceding subsections of this Section, a Participant
      who has not attained age 59 -1/2 as of the Valuation Date as of which a
      withdrawal is to be made and who has had a termination of Service and
      retains a balance in the Plan pursuant to Section 9.1, may withdraw all or
      part (or, prior to June 1, 2001, all but not part) of his Before-Tax
      Account.

8.2   Rules for Withdrawals

      Withdrawals pursuant to this Article 8 shall be made in accordance with
      the following rules:

      (a)   Payment of amounts withdrawn shall be made in a single cash lump
            sum, payable as soon as practicable after the Valuation Date as of
            which the withdrawn amount is being determined.

      (b)   Two (2) withdrawal elections under this Article 8 may be made in any
            calendar year, except that a Participant who has terminated service
            and retains a balance in the Plan may make up to twelve (12)
            withdrawal elections under this Article 8 in a calendar year.

      (c)   All withdrawals from a Participant Accounts shall be made from the
            Investment Funds in proportion to the Value of the Participant's
            After-Tax Account, Before-Tax Account, Basic Account, or Rollover
            Account or any other Account, whichever is applicable, in each such
            Investment Fund.

      (d)   Withdrawals from a Participant's Before-Tax Account are not
            permitted before the Participant has attained age 59-1/2 unless he
            has died, become disabled, or is separated from service, in
            accordance with the provisions of Section 401(k) of the Code.

      (e)   In order to make a withdrawal from his Accounts a Participant shall
            give such prior notice to the Plan Administrator in such manner and
            within such time limit as the Plan Administrator shall prescribe. In
            the event that a Participant has executed a withdrawal application
            and is entitled to a withdrawal hereunder and prior to the date on
            which withdrawal proceeds are disbursed to him it is determined that
            the amount available for withdrawal is less than the amount of such
            application,

                                       33
<PAGE>

            the application shall be deemed to be for the maximum amount
            available for withdrawal and such amount shall be withdrawn.

8.3   [Reserved]

8.4   Certain Eligible Rollover Distributions

      Notwithstanding anything in the Plan to the contrary that would otherwise
      limit a distributee's election under this Section 8.4, a "distributee" (as
      hereinafter defined) may elect, at the time and in the manner prescribed
      by the Plan Administrator, to have any portion of an "eligible rollover
      distribution" (as hereinafter defined) paid directly to an "eligible
      retirement plan" specified by the distributee in a "direct rollover."

      For purposes of this Section 8.4, the following terms shall have the
      following meanings:

      (a)   "distributee" means an Eligible Employee or former Eligible
            Employee. In addition, the surviving spouse of an Eligible Employee
            or former Eligible Employee or a spouse or former spouse of an
            Eligible Employee or former Eligible Employee who is the alternate
            payee under a Qualified Domestic Relations Order, are distributees
            with regard to the interest of the spouse or the former spouse;

      (b)   "eligible rollover distribution" means any distribution of all or
            any portion of the balance to the credit of the distributee under
            the Plan, except that an eligible rollover distribution shall not
            include:

            (i)   any distribution from the Plan that is one of a series of
                  substantially equal periodic payments (made not less
                  frequently than annually) for the life (or life expectancy) of
                  the distributee or the joint lives (or joint life
                  expectancies) of the distributee and the distributee's
                  designated Beneficiary, or for a specified period of ten years
                  or more;

            (ii)  any distribution from the Plan to the extent such distribution
                  is required under Section 401(a)(9) of the Code; or

            (iii) the portion of any distribution from the Plan that is not
                  includible in gross income for federal income tax purposes
                  (determined without regard to the exclusion for net unrealized
                  appreciation with respect to employer securities).

                                       34
<PAGE>

      (c)   "eligible retirement plan" means:

            (i)   an individual retirement account described in Section 408(a)
                  of the Code;

            (ii)  an individual retirement annuity described in Section 408(b)
                  of the Code;

            (iii) an annuity plan described in Section 403(a) of the Code; or

            (iv)  a qualified trust described in Section 401(a) of the Code,

            in any case, that accepts the distributee's eligible rollover
            distribution; provided, however, that with respect to an eligible
            rollover distribution to a surviving spouse of an Eligible Employee
            or former Eligible Employee, an eligible retirement plan means an
            individual retirement account or an individual retirement annuity;
            and

      (d)   "direct rollover" means a payment by the Plan to the eligible
            retirement plan specified by the distributee.

                                       35
<PAGE>

                                    ARTICLE 9

                   Distributions on Termination of Employment

9.1   Distributions on Termination of Employment

      When a Participant's employment with all Affiliated Companies is
      terminated, the Value of his vested interest in his Accounts shall be
      distributed to him or, if distribution is being made by reason of death,
      to his Beneficiary. For purposes of this Section 9.1, and subject to the
      provisions of Section 13.6, a termination of employment occurs upon a
      quit, discharge, termination due to a permanent shutdown or sale of a
      plant (except for situations involving a spinoff to another qualified
      plan), an absence that continues after the period of a leave of absence
      granted by an Employer expires, or a break in seniority under the terms of
      any applicable collective bargaining agreement, whichever occurs first.
      Any amount distributed to a Participant's Beneficiary pursuant to the
      preceding sentence shall be reduced to the extent the Participant's
      Accounts are subject to a pledge under Section 15.5. All amounts
      distributable pursuant to this Article 9 shall be paid as soon as
      practicable on or after the Valuation Date as of which payment is to be
      made (and except as is provided in Sections 9.2 and 9.3 in all events
      within 60 days after the end of the later of the Plan Year in which the
      Participant attains age 65 or terminates employment with all Affiliated
      Companies). The Participant's Accounts shall be retained and administered
      under the Plan until the date of distribution.

      Effective January 1, 2002 (except with respect to any individuals who
      entered into severance agreements with an Employer prior to that date) for
      purposes of this Plan, including without limitation this Section and
      Sections 1.44, and 8.1, `discharge' shall include any cessation of active
      service by an Employee which is expected to be permanent and in connection
      with which the individual receives severance payments, payments from the
      inactive payroll or any other similar payments, and such a discharge shall
      constitute a `termination of employment,' a `termination of service' (or
      `Service'), `ceasing to be employed' and any other similarly described
      event.

9.2   Valuation

      The Value of a Participant's Accounts for purposes of Section 9.1 shall be
      determined and payable on the Valuation Date on or as soon as practicable
      following the date the Participant (or his Beneficiary) is entitled to a
      distribution hereunder and has completed and submitted to the Plan
      Administrator any application and election forms which the Plan
      Administrator may require, but in no event prior to the Valuation Date on
      which authorized distribution directions are received by the Trustee.

                                       36
<PAGE>

9.3   Form of Distribution

      Distributions under this Article 9 shall be made in a lump sum payment and
      shall be made in cash from the applicable Investment Funds (other than the
      Company Stock Fund). A Participant may elect in such manner and at such
      time as the Plan Administrator may determine whether distributions from
      the Company Stock Fund shall be distributed in cash or in kind, except
      that any uninvested cash and any fractional shares shall be paid in cash.
      In the event that a Participant has not made the election under the
      preceding sentence, distributions from the Company Stock Fund shall be
      made in cash.

      Notwithstanding anything herein contained to the contrary, no part of a
      distribution in excess of $5,000 ($3,500 before January 1, 2000) may
      commence before the April 1st following the Plan Year in which the
      Participant attains age 70-1/2 without the advance written consent of such
      Participant (except with respect to benefits made payable by reason of the
      death of a Participant or former Participant). The Participant's Accounts
      shall be retained and administered under the Plan until the Valuation Date
      immediately preceding the date of distribution.

9.4   Distribution on Disability or Layoff for Six Months

      When a Participant has suffered a Disability, or been on layoff for six
      months or more, the Value of his Accounts may be distributed to him in
      accordance with the foregoing provisions of this Article 9.

9.5   Mandatory Commencement of Benefits

      Notwithstanding anything herein contained to the contrary, and subject to
      Section 401(a)(9) of the Code and Proposed Treasury Regulation Sections
      1.401(a)(9)-1 and -2, any final regulations under such section, and any
      amendments to such regulations or section:

      (a)   a Participant who is a 5% owner (as defined in Section 416(i) of the
            Code) at any time after the attainment of age 66-1/2, shall receive
            the Value of his Accounts no later than the April 1 of the calendar
            year following the calendar year in which such Participant attains
            age 70-1/2;

      (b)   a Participant who is not a 5% owner at any time after the attainment
            of age 66-1/2, shall receive the Value of his Accounts no later than
            the April 1 of the calendar year following the later of (i) the
            calendar year in which the Participant attains age 70-1/2, or (ii)
            his termination of employment with the Employer and any Affiliated
            Company; and

                                       37
<PAGE>

      (c)   a Participant who becomes a 5% owner after the attainment of age
            70-1/2, but prior to termination of employment, shall receive the
            Value of his Accounts no later than the April 1 of the calendar year
            following the calendar year in which such Participant becomes a 5%
            owner.

      Any payments under this Plan shall be adjusted to meet the requirements of
      Section 401(a)(9) of the Code and the regulations thereunder. Thus, to the
      extent the distributions otherwise provided for under this Plan would not
      satisfy Section 401(a)(9) of the Code, the entire interest of each
      Participant (a) shall be distributed to him not later than the required
      beginning date as defined in Section 401(a)(9)(C) of the Code, or (b)
      shall be distributed, beginning not later than the required beginning
      date, in accordance with regulations or proposed regulations, over the
      life of the Participant or over the life of the Participant and
      Beneficiary (or over a period not extending beyond the life expectancy of
      the Participant or the life of the Participant and Beneficiary). Except to
      the extent that Section 9.3, or other provisions of this Section or this
      Plan, would cause such distribution to be in the form of a single lump sum
      payment, the amount to be distributed each year must be at least an amount
      (i) equal to the quotient obtained by dividing the Participant's entire
      interest, determined as of the last Valuation Date for the Plan Year
      immediately preceding the year for which such distribution is being made,
      by the life expectancy of the Participant or joint and survivor life
      expectancy of the Participant and designated Beneficiary or, (ii)
      calculated under such other method as may be prescribed by the Department
      of Treasury.

      Notwithstanding any provision of the Plan to the contrary, distributions
      made under this Section 9.5 shall be deemed to satisfy any distribution
      options provided for in the Plan that are inconsistent with Section
      401(a)(9) of the Code. In addition, any distribution required under the
      incidental death benefit rule of Section 401(a)(9)(G) of the Code shall be
      treated as a distribution required under this Section.

9.6   Latest Commencement of Benefits

      Except as provided in Section 9.5, and unless a Participant otherwise
      elects, a Participant's benefits under the Plan shall begin not later than
      the 60th day after the close of the Plan Year in which the latest of the
      following events occur: (a) the Participant attains age 65; (b) the 10th
      anniversary of the date the Participant's participation in the Plan
      commences; (c) the Participant's employment with the Employer or any
      Affiliated Company is terminated.

9.7   Missing Participants

      If, after reasonable efforts of the Plan Administrator to locate a
      Participant or a Participant's Beneficiary, including sending a certified
      letter, return receipt requested, to the last known address of the
      Participant or Beneficiary, the Plan Administrator is unable to locate the
      Participant or Beneficiary, then the amounts distributable to such
      Participant or Beneficiary shall be treated as a forfeiture under the
      Plan. In the event that such a Participant or Beneficiary is located
      subsequent to such a forfeiture, then his benefit shall be

                                       38
<PAGE>

      reinstated (without earnings from the date of forfeiture except to the
      extent required by law) and shall not be used to determine his Annual
      Additions (as defined in Section 4.3) for the Plan Year in which it is
      reinstated.

                                       39
<PAGE>

                                   ARTICLE 10

                                  Miscellaneous

10.1  No Assignment or Alienation

      Except as may be otherwise provided herein or by law, no benefit payable
      under the Plan shall be subject in any manner to anticipation, alienation,
      sale, transfer, assignment, pledge, encumbrance, or change, and any action
      by way of anticipating, alienating, selling, transferring, assigning,
      pledging, encumbering, or charging the same shall be void and of no
      effect; nor shall any such benefit be in any manner liable for or subject
      to the debts, contracts, liabilities, engagements, or torts of the person
      entitled to such benefit.

      Notwithstanding the foregoing, the following shall not be treated as an
      assignment or alienation prohibited by this Section 10.1:

      (a)   the creation, assignment or recognition of a right to any benefit
            payable with respect to a Participant or former Participant under
            the Plan pursuant to a Qualified Domestic Relations Order; or

      (b)   the offset of a Participant's or former Participant's benefit under
            the Plan against an amount that such Participant or former
            Participant is ordered or required to pay to the Plan where:

            (1)   the order or requirement to pay arises under a judgment for a
                  crime involving the Plan, a civil judgment, consent order or
                  decree for violation or alleged violation of fiduciary duties
                  as stated in part 4 of subtitle B of title I of the Act, or
                  pursuant to a settlement agreement between the Secretary of
                  Labor or the Pension Benefit Guaranty Corporation and the
                  Participant or former Participant for violation or alleged
                  violation of fiduciary duties as stated in part 4 of subtitle
                  B of title I of the Act by a fiduciary or any other person;
                  and

            (2)   the judgment, order, decree, or settlement agreement expressly
                  provides for the offset of all or part of the amount ordered
                  or required to be paid to the Plan against the Participant's
                  or former Participant's benefits provided under the Plan; and

            (3)   to the extent, if any, that the survivor annuity requirements
                  apply to distributions to the Participant or former
                  Participant under Section 401(a)(11) of the Code, the rights
                  of such Participant's or former Participant's spouse are
                  preserved in accordance with Section 401(a)(13)(C)(iii) of the
                  Code; or

                                       40
<PAGE>

      (c)   any other arrangement, transfer or transaction which is not treated
            as a prohibited assignment or alienation under Section 401(a)(13) of
            the Code or other applicable law.

      If any Participant or other payee under the Plan shall become bankrupt or
      attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber,
      or charge any benefit, except as provided herein, then such benefit shall,
      at the discretion of the Plan Administrator, be applied as follows: the
      Plan Administrator shall hold or apply the benefit or any part thereof to,
      or for, such Participant or payee, his spouse, children, or other
      dependents, or any of them, in such manner and in such proportions as the
      Plan Administrator shall at its sole discretion determine.

10.2  Qualified Domestic Relations Orders

      Notwithstanding any other provision in the Plan to the contrary, the
      following provisions shall apply with respect to a Domestic Relations
      Order.

      (a)   A Qualified Domestic Relations Order may require the payment in a
            single sum of any designated portion of the Value of a Participant's
            Accounts in which the Participant has a fully vested interest, as
            determined as soon as practicable following the determination by the
            Plan Administrator of the qualified status of such Domestic
            Relations Order, regardless of whether the Participant shall then
            have qualified for an immediate distribution and regardless of the
            inability of the Participant then to have withdrawn all or any of
            the amounts covered by the Qualified Domestic Relations Order.
            Unless otherwise specified in the Qualified Domestic Relations
            Order, any such single sum distribution shall be withdrawn on a pro
            rata basis from all of the Participant's Accounts and from the
            Investment Funds in which his Accounts are invested.

      (b)   In the event that a Qualified Domestic Relations Order shall require
            that a portion of a Participant's Accounts be held under the Plan
            for the benefit of the Alternate Payee, such portion shall be held
            in a QDRO Balance and shall be subject to the following rules:

            (i)   Except as otherwise specifically provided in this Section
                  10.2, the Alternate Payee shall, with respect to the
                  administration of the QDRO Balance, be treated in the same
                  manner as a Participant who has terminated employment with all
                  the Affiliated Companies.

            (ii)  The rights of the Alternate Payee with respect to the
                  investment of and withdrawals from the QDRO Balance shall be
                  established by the Employer and any reasonable costs of the
                  administration of the QDRO Balance may be assessed against the
                  same.

                                       41
<PAGE>

            (iii) The Alternate Payee shall not be entitled to contribute,
                  receive an allocation of contributions, or borrow under the
                  Plan.

            (iv)  The obligations under any Loan shall be personal to the
                  Participant, and in the event that the Qualified Domestic
                  Relations Order would otherwise require the transfer of all or
                  any portion of a Loan to the QDRO Balance, such Loan shall
                  become due and payable as provided in Section 15.4(c).

            (v)   Unless otherwise specified in the Qualified Domestic Relations
                  Order, any transfer to the QDRO Balance shall be withdrawn,
                  subject to paragraph (iv), above, on a pro rata basis from all
                  of the Participant's Accounts and from the Investment Funds in
                  which the Participant's Accounts are invested.

      (c)   Upon and after the receipt by the Plan Administrator of a Domestic
            Relations Order, no withdrawals shall be permitted to be made from
            the Participant's Accounts and no Loans shall be made to the
            Participant unless and until permitted under a related Qualified
            Domestic Relations Order, or, absent a related Qualified Domestic
            Relations Order, until the end of the nine-month period immediately
            following such receipt of the Domestic Relations Order. The
            Participant's investment directions in effect immediately prior to
            the Plan Administrator's receipt of the Domestic Relations Order
            shall remain in effect; provided, however, that the Participant may
            make a change pursuant to Section 5.4 or a reallocation pursuant to
            Section 5.5, in either case, solely in order to increase the portion
            of his Accounts invested in the Fixed Income Fund.

      (d)   The Plan Administrator shall follow such other rules and procedures
            with respect to a Domestic Relations Order as provided in the
            Qualified Domestic Relations Order Rules and Procedures as in effect
            from time to time.

      (e)   If (i) any regulation becomes effective which interprets Section
            206(d) of the Act, Section 414(p) of the Code, or both, and (ii) any
            provision of the Plan or the QDRO Rules and Procedures is contrary
            to such regulation or does not fully comply with the same, then any
            such provision shall, to the extent necessary, be of no force or
            effect for any Domestic Relations Order received by the Plan
            Administrator after the effective date of such regulation, and the
            Plan and the QDRO Rules and Procedures shall be deemed to have
            complied with such regulations from such effective date and further
            shall be deemed not to have created any accrued benefits under
            Section 204(g) of the Act or Section 411(d)(6) of the Code not
            required under such regulation. Any Domestic Relations Order shall
            be subject to any changes in the Plan or the QDRO Rules and
            Procedures which may

                                       42
<PAGE>

            be required to comply with such regulation or otherwise to maintain
            the qualification of the Plan under Section 401(a) of the Code.

10.3  No Employment Rights

      The establishment of the Plan shall not be construed as conferring any
      rights upon any Employee or any other person for a continuation of
      employment, nor shall it be construed as limiting in any way the right of
      an Employer to discharge any Employee or to treat him without regard to
      the effect which such treatment might have upon him as a Participant under
      the Plan.

10.4  Incapacity

      If any person entitled to receive any benefits hereunder is, in the
      judgment of the Plan Administrator, legally, physically or mentally
      incapable of personally receiving and receipting for any distribution, the
      Plan Administrator may direct that any distribution due him, unless claim
      has been made therefor by a duly appointed legal representative, be made
      to his spouse, children or other dependents or to a person with whom he
      resides, and any other distribution so made shall be a complete discharge
      of the liabilities of the Plan therefor.

10.5  Identity of Proper Payee

      The determination of the Plan Administrator as to the identity of the
      proper payee of any payment and the amount properly payable shall be
      conclusive, and payment in accordance with such determination shall
      constitute a complete discharge of all obligations on account thereof.

10.6  Governing Law

      To the extent not preempted by federal law, the Plan shall be interpreted
      and applied in accordance with the laws of the State of Ohio.

                                       43
<PAGE>

                                   ARTICLE 11

                          Fiduciary and Administration

11.1  Plan Administrator

      The authorities and responsibilities of the Plan Administrator shall be
      vested jointly in the members of the Alcancorp Employee Benefits Committee
      (the "Committee"). The members of the Committee shall be designated by the
      Board and shall serve for terms of one year and until their successors are
      designated and qualified. The term of any member of the Committee may be
      renewed from time to time without limitation as to the number of renewals.
      Any member of the Committee may resign upon not less than 60 days' notice
      to the Board but may be removed from office only by reason of his failure
      or inability, in the opinion of the Board, to carry out his responsibility
      in an effective manner. Any instrument or document signed on behalf of the
      Committee by any member of the Committee may be accepted and relied upon
      as the act of the Committee.

11.2  Plan Fiduciaries

      The Plan Administrator is the named fiduciary under the Plan and is
      responsible for controlling and managing the operation and administration
      of the Plan in accordance with the provisions of the Act.

11.3  Reports of the Plan Administrator

      The Plan Administrator shall report to the Board on the performance of its
      responsibilities and on the performance of any persons to whom any of its
      powers and responsibilities may have been delegated.

11.4  Service in Various Fiduciary Capacities

      The Plan Administrator or any other persons may serve in more than one
      fiduciary capacity with respect to the Plan, and any fiduciary may serve
      as such in addition to being an officer, Employee, agent or other
      representative of a party in interest.

11.5  Retention of Advisors and Services

      The Plan Administrator may employ one or more persons to render advice
      with regard to any responsibility assumed by such fiduciary under the Plan
      or the Act and retain such clerical, legal, accounting and consulting
      services as the Plan Administrator deems appropriate.

                                       44
<PAGE>

11.6  Power to Construe and Make Rules

      The designated local representative of the Corporation (or on appeal under
      Section 11.11, the Plan Administrator) shall have full power and authority
      to construe the provisions of the Plan, to resolve any ambiguities,
      errors, inconsistencies or omissions therein, to determine any questions
      of fact which may arise thereunder, and to determine the right to benefits
      and amount of benefits, if any, payable to any person under this Plan; and
      the Administrator shall also have full power and authority to make such
      rules and regulations regarding the Plan and administrative matters,
      including but not limited to rules governing the manner in which the Plan
      Administrator shall act or in which the Plan Administrator's own affairs
      shall be managed, as the Plan Administrator may deem necessary or
      appropriate in the exercise of its authority hereunder.

11.7  Power to Direct Trustee

      The Plan Administrator shall have authority to direct the Trustee with
      respect to any payments or disbursements from, or contributions to, the
      Plan.

11.8  Exercise of Authority

      Whenever in the administration of the Plan the Plan Administrator acts or
      otherwise exercises any authority, such exercise of authority shall be
      consistent with the requirements of the Act and all other laws and in
      addition shall generally be uniform in nature as applied to all persons
      similarly situated and without discrimination in favor of HCEs, and in
      accordance with the Plan, all as determined by the Plan Administrator in
      its sole discretion.

11.9  Power of Delegation

      The Plan Administrator shall have the power to designate one or more
      persons, including any corporation, to whom the Plan Administrator may
      delegate, and among whom the Plan Administrator may allocate, specified
      fiduciary responsibilities (other than trustee responsibilities as defined
      in Section 405(c)(3) of the Act). Any such designation shall be in writing
      and the Plan Administrator shall not enter into any delegation under this
      Section 11.9 which does not provide for the termination thereof by the
      Plan Administrator upon reasonable notice to such person. Without limiting
      the generality of the foregoing, the Plan Administrator shall have the
      power to delegate, in accordance with the foregoing provisions of this
      Section 11.9, to one or more persons, the authority (i) to determine the
      amount of benefits based upon records due any person under the Plan, (ii)
      to execute, in the name, and on behalf of, the Plan

                                       45
<PAGE>

      Administrator, any direction for payment of any benefit under the Plan,
      and (iii) to maintain records and accounts.

11.10 Ministerial Plan Services

      The Corporation or any other person shall perform such ministerial
      services in the administration of the Plan as may be agreed upon between
      the Plan Administrator and the Corporation or such other person. The Plan
      Administrator shall furnish the Corporation or such other person with such
      framework of policies, interpretations, rules, practices and procedures as
      the Plan Administrator shall deem necessary or appropriate. The Plan
      Administrator may rely on any information, data, statistics, reports or
      analysis furnished by the Corporation, including, without limitation,
      information relating to addresses, employment, employment status, and
      services of any Participant or other person.

11.11 Claims Procedure; Appeals

      If a Participant or a Participant's Beneficiary (who shall be considered
      for this purpose a "Claimant") believes that he is entitled to a vested
      benefit, the Claimant must apply for the benefit, in writing, to the
      designated local representative of the Corporation. In rendering its
      decision, such designated local representative shall have full power and
      authority to construe the provisions of the Plan, to resolve any errors,
      inconsistencies or omissions therein, and to determine any questions of
      fact which may arise thereunder.

      In the event that the Claimant's application or any other claim under the
      Plan is denied, the Claimant will be notified by the Plan Administrator
      within 90 days after its receipt of his application or claim, provided
      that if there are special circumstances which make a longer period for
      decision necessary or appropriate, on notice to the Claimant, such
      decision may be postponed for an additional 90 days. Such notice will be
      in writing, will indicate the specific reasons for such denial, the
      specific provisions of the Plan on which it was based and any additional
      material or information necessary for him to perfect the Claimant's
      application or claim as well as provide an explanation of the claim review
      procedure of the Plan. In the event that notice of such denial is not
      furnished within the prescribed time period, the Claimant will be entitled
      to appeal as if the application or claim had been denied.

      An appeal with respect to the Plan, if it cannot be resolved by discussion
      with the designated local representative of the Corporation, is to be
      addressed by the Claimant in writing to the Plan Administrator. The Plan
      Administrator is the named fiduciary of the Plan for the purpose of
      hearing claims appeals. The Claimant is entitled to review pertinent
      documents and he may submit in writing issues and comments in the same
      manner as an appeal is to be submitted. Requests for review must be made
      within 120 days after

                                       46
<PAGE>

      receipt of written notice of denial of the claim. A decision will be
      rendered by the named fiduciary within 60 days after his receipt of the
      request for review, provided that if there are special circumstances which
      make a longer period of decision necessary or appropriate, on notice to
      the Claimant, decision may be postponed for an additional 60 days. Any
      decision by the Plan Administrator shall be in writing and shall set forth
      the specific reason for the decision and the specific Plan provisions on
      which the decision is based. In rendering its decision, the Plan
      Administrator shall have full power and authority to construe the
      provisions of the Plan, to resolve any errors, inconsistencies or
      omissions therein, and to determine any questions of fact which may arise
      thereunder. Except as otherwise provided by applicable law, the decision
      of the Plan Administrator shall be final and binding on all parties.

      No benefit shall be payable hereunder unless the applicable designated
      local representative of the Corporation, or the Plan Administrator acting
      in its review capacity hereunder, determines in its discretion that such
      benefit is due under the terms of the Plan.

      Without limiting the foregoing, no Claimant may file any lawsuit in any
      court of law with respect to a claim for benefits hereunder unless such
      Claimant has timely and properly taken all steps to submit his claim to
      the designated local representative of the Corporation and to appeal any
      benefit denial to the Plan Administrator, and otherwise followed and
      exhausted the application and review procedures of this Plan. For claims
      which are either incurred or for which application is made on or after
      March 1, 2002, no legal action may be commenced against the Plan,
      designated local representative of the Corporation, or the Plan
      Administrator more than 180 days after the Plan Administrator's final
      decision has been rendered with respect to the Claimant's claim.

11.12 Funding Policy

      The Plan Administrator, acting in conjunction with any trustee, insurance
      carrier, investment manager or other party responsible for the investment
      of the assets of the Plan (the "Funding Agency"), shall cause to be
      established a funding policy pursuant to the procedure set forth in this
      Section 11.12. The Plan Administrator shall determine the short and long
      run financial needs of the Plan, giving regard to the objectives of the
      Plan, its need for liquidity, and such other factors as it deems
      appropriate. The Plan Administrator shall, on the basis of such
      information, formulate a statement of the needs of the Plan which shall be
      submitted to each Funding Agency. The Funding Agency shall on the basis of
      such statement and such other information as it shall reasonably request,
      coordinate its investment policy with the Plan needs communicated to it
      and establish the funding policy of the Plan.

      The Plan Administrator shall review the funding policy and all or any
      portion of the information upon which it is based at such time or times as
      it may deem advisable but not less often than annually.

                                       47
<PAGE>

11.13 Qualified Status of Plan

      It is intended that the Plan at all times satisfies the requirements of
      Section 401(a) of the Code and the regulations issued thereunder. To
      enable the Employer to provide, in its sole discretion, benefits to
      Employees as permitted under a plan that satisfies such requirements,
      notwithstanding any other provision in the Plan to the contrary, no action
      shall be required to be taken with respect to the Plan or any Participant
      (or Beneficiary) that in the determination of the Plan Administrator would
      have a significant likelihood of adversely affecting this determination
      under Section 401(a) of the Code. The Plan shall be interpreted in
      accordance with the Code and the Act, and all provisions hereof shall be
      administered in accordance with such laws.

11.14 Indemnification of Certain Persons

      Each individual who has been designated hereunder to carry out any
      Fiduciary or administrative responsibility or any act on behalf of the
      Corporation (including without limitation, members of the Committee), and
      is an Employee, officer or director of the Corporation, shall be
      indemnified by the Corporation to the extent permitted by law, against all
      expenses (including costs and attorney's fees) actually and necessarily
      incurred or paid by him in connection with the defense of any action, suit
      or proceeding in any way relating to or arising from the Plan to which he
      may be made a part by reason of his being or having been so designated, or
      by reason of any action or omission or alleged action or omission by him
      in such capacity, and against any amount or amounts which may be paid by
      him (other than to the Corporation) in reasonable settlement of any such
      action, suit or proceeding, where it is in the interest of the Corporation
      that such settlement be made. In cases where such action, suit or
      proceeding shall proceed to final adjudication, such indemnification shall
      not extend to matters as to which it shall be adjudged that such Employee,
      officer or director is liable for gross negligence or willful misconduct
      in the performance of his duties as such. The right of indemnification
      herein provided shall not be exclusive of other rights to which any such
      Employee, officer or director may now or hereafter be entitled, shall
      continue as to a person who has ceased to be so designated and shall inure
      to the benefit of the heirs, executors and administrators of such
      Employee, officer or director.

                                       48
<PAGE>

                                   ARTICLE 12

                          Management of the Trust Fund

12.1  Trust Fund

      All contributions under the Plan shall be paid over to the Trustee which
      shall be appointed from time to time by the Plan Administrator or pursuant
      to its authorization, with such powers in the Trustee (or in any
      investment manager designated pursuant to Section 5.1) as to investment,
      reinvestment, control and disbursement of the funds as the Plan
      Administrator shall approve and as shall be in accordance with the Plan.
      The Plan Administrator may remove or authorize the removal of any Trustee
      at any time, upon reasonable notice, and upon such removal or upon the
      resignation of any Trustee, the Plan Administrator shall designate or
      authorize the designation of a successor Trustee.

12.2  Exclusive Benefit of Participants and Beneficiaries

      All funds under the Plan shall be held under a trust or trusts for the
      exclusive benefit of Participants and their Beneficiaries, and no part of
      the corpus or income shall revert to the Employers or be used for, or
      diverted to, purposes other than for the exclusive benefit of such persons
      under the Plan, including the payment or reimbursement of expenses of the
      Plan, except as otherwise expressly provided hereunder, including Section
      12.5. No such person, nor any other person, shall have any interest in or
      right to any of such funds, except to the extent expressly provided in the
      Plan.

12.3  Application and Disbursement of Trust Fund

      The funds held by the Trustee shall be applied to the payment of benefits
      as provided in the Plan to such persons as are entitled thereto in
      accordance with the Plan and for the payment or reimbursement of expenses
      of the Plan and Trust Fund as provided in Sections 12.2 and 12.5, except
      as otherwise expressly provided herein.

      The Plan Administrator shall determine the manner in which the funds of
      the Plan shall be disbursed in accordance with the Plan, including the
      form of voucher or warrant to be used in making disbursement and the
      qualification of persons authorized to approve and sign the same and any
      other matters incident to the disbursement of such funds.

                                       49
<PAGE>

12.4  Master Trust

      The assets of the trust established under the Plan as adopted by the
      Corporation may be commingled for investment purposes under a master trust
      or trusts established by the Corporation with the assets of other trusts
      established under the Plan in accordance with Section 14.1 and with the
      assets of trusts established under a plan other than the Plan which has
      been admitted to participation in such master trust on such terms and
      conditions as may be specified by the Corporation.

12.5  Expenses of Plan

      The expenses for general administration of the Plan, including Trustee's
      fees as such may from time to time be agreed upon between the Corporation
      and the Trustee, may, in the discretion of the Plan Administrator, be paid
      from the Participants' Accounts, be paid, reimbursed or otherwise borne by
      the Trust Fund, or, with the consent of the Corporation, be borne by the
      Employer. Fees and expenses of the Plan which are incurred with respect to
      a specific Investment Fund or a specific Account or Accounts or portions
      thereof may, in the discretion of the Plan Administrator, be paid from the
      assets of such Investment Fund or Account or Accounts or portions thereof
      in such manner as the Plan Administrator may determine. Fees and expenses
      of the trustee which have not been paid will be deemed to be a lien on the
      Trust Fund.

                                       50
<PAGE>

                                   ARTICLE 13

               Amendment, Modification, Suspension or Termination

13.1  Corporate Authority

      The Corporation reserves the right at any time to amend, modify, suspend
      or terminate the Plan, any contributions thereunder, the Trust Fund or any
      contract forming a part of the Plan, in whole or in part, prospectively or
      retroactively, and for any reason and without the consent of any Employer,
      Participant, Beneficiary or any other person having an interest under the
      Plan. Any such amendment, modification, suspension or termination of the
      Plan shall be made by:

      (a)   the adoption of a resolution by the Board amending said Plan or
            ratifying such an amendment; or

      (b)   the execution of a certificate of amendment or other written
            instrument by an officer of the Corporation authorized by a
            resolution of the Board to amend the Plan.

13.2  Limitations

      No amendment shall be made which would make it possible for any part of
      the funds of the Plan (other than such part as is required to pay taxes,
      if any) to be used for or diverted to any purposes other than for the
      exclusive benefit of Participants and their Beneficiaries under the Plan.

      No merger or consolidation with, or transfer of assets or liabilities to,
      any other pension or retirement plan, shall be made unless the benefit
      each Participant in the Plan would receive if the Plan were terminated
      immediately after such merger or consolidation, or transfer of assets and
      liabilities, would be at least as great as the benefit he would have
      received had the Plan terminated immediately before such merger,
      consolidation or transfer.

13.3  Retroactivity

      Subject to the provisions of Section 13.1, 13.2 or any applicable
      provision of law, any amendment, modification, suspension or termination
      of any provision of the Plan may be made retroactively if necessary or
      appropriate either to qualify or maintain the Plan, the Trust Fund and any
      contract forming a part of the Plan as a plan and trust meeting the
      requirements of Sections 401(a) and 501(a) of the Code or any other
      applicable section of law (including the Act) or regulations issued
      pursuant thereto, as now in effect or hereafter amended or adopted, or for
      any other reason.

                                       51
<PAGE>

13.4  Right to Terminate or Discontinue Contributions or to Secede from the Plan

      Each Employer reserves the right by resolution of its board of directors
      to:

      (a)   terminate the Plan with respect to such Employer; or

      (b)   discontinue contributions under the Plan.

13.5  Distribution on Plan Termination

      In the event of a complete termination of the Plan with respect to an
      Employer, the Accounts of the Participants who are employed by such
      Employer shall be distributed at the time and in the manner determined
      under the amendment terminating the Plan; provided, however, that no
      distribution with respect to any Participant shall be made prior to the
      earliest date on which a withdrawal is permitted under Article 8 and,
      provided further, however, that, unless required pursuant to Article 9, or
      permitted under Treasury Regulation Section 1.411(a)-11(e), no
      distribution in excess of $5,000 ($3,500 before January 1, 2000) shall be
      made without the advance written consent of such Participant.

13.6  Distribution on Sale

      In the event of any transaction involving an Employer that results in the
      Employer no longer being an Affiliated Company or the disposition of all
      or substantially all of the Employer's assets, the Accounts of the
      Participants who are employed by such Employer at the time of such
      transaction shall continue to be held by the Plan, and such event shall
      not be construed to constitute an event entitling a Participant to a
      distribution hereunder except as otherwise provided in an amendment to the
      Plan or in the agreement which governs such distribution or other
      transaction.

                                       52
<PAGE>

                                   ARTICLE 14

            Participation in Plan by Subsidiary or Affiliated Company

14.1  Adoption by Subsidiary or Affiliated Company; Extension to Division or
      Unit

      Any subsidiary or Affiliated Company of the Corporation may, with the
      consent of the Board, become a party to this Plan by adopting the Plan, on
      such terms and conditions as mutually agreed upon by the Board and such
      subsidiary or Affiliated Company, which terms and conditions shall be set
      forth in an Appendix hereto, as its savings plan for its eligible
      Employees and by establishing a trust to fund the benefits of the Plan as
      so adopted by it. Any such trust may be established, as the Plan
      Administrator shall determine, either by the execution of a separate trust
      agreement or by the adoption of the Trust Agreement by such subsidiary or
      Affiliated Company. Upon the filing with the Trustee of a certified copy
      of the resolutions or other documents evidencing adoption of the Plan, and
      the Trust Agreement if applicable, and a written instrument showing the
      consent of the Board to participation of such subsidiary or Affiliated
      Company and, if applicable, upon the execution of a separate agreement of
      trust with the Trustee satisfactory in form to the Plan Administrator,
      such subsidiary or Affiliated Company shall thereupon be included in the
      Plan as an Employer. Without limitation of the foregoing, any such
      adopting subsidiary or Affiliated Company and the plan established by it
      as aforesaid shall be subject to the authorities herein reserved to the
      Corporation and the Plan Administrator with respect to the Plan.

14.2  Special Provisions for Employees of Subsidiaries, Affiliated Companies,
      Acquired Companies

      In approving the adoption of the Plan or its extension to Employees of any
      organization all or part of whose business or assets, or both, are
      acquired by an Employer by merger, purchase or otherwise, the Board shall,
      subject to applicable law, designate the extent, if any, to which the
      Employees' employment with predecessor companies prior to the date of such
      adoption or extension shall be considered Service.

                                       53
<PAGE>

                                   ARTICLE 15

                              Loans to Participants

15.1  Eligibility for Borrowing

      A Participant who is an Eligible Employee may borrow from the Plan to the
      extent permitted and under the conditions set forth in this Article 15. A
      loan from the Plan shall be made to a former Participant whose employment
      with the Employer has terminated only to the extent required to comply
      with the applicable provisions of the Act and the Code.

15.2  Amount of Loans

      (a)   The maximum amount available for a Loan to a Participant when added
            to the outstanding balance of all other Loans to such Participant as
            of the Loan Valuation Date shall be the lesser of:

            (i)   $50,000 reduced by the excess (if any) of:

                  (A)   the highest outstanding balance of Loans to the
                        Participant during the one-year period ending on the day
                        before the Loan Valuation Date, over

                  (B)   the outstanding balance of Loans to the Participant as
                        of the Loan Valuation Date, or

            (ii)  one-half (1/2) of the Value of the Participant's Accounts
                  under the Plan on the Loan Valuation Date;

            provided, however, that in no event shall the amount of any Loan
            exceed the Value of the Participant's Accounts as of the Valuation
            Date coinciding with or immediately preceding the date of
            disbursement of the Loan.

      (b)   No more than two Loans including, without limitation, one Home Loan
            may be outstanding with respect to a Participant at any time, and no
            Loan shall be made to a Participant who is in default under a Loan.

                                       54
<PAGE>

      (c)   The minimum amount of any Loan shall be $1,000, and Loans shall be
            made in $100 increments.

      (d)   The Plan Administrator may, at its discretion, impose such fees for
            loans which it deems appropriate, including but not limited to, loan
            initiation fees and handling charges. Such fees shall be payable in
            any manner that the Plan Administrator deems appropriate, including
            but not limited to, by a charge to the Participant's Account or
            Accounts, by adding such fee to the outstanding balance of the loan,
            by deducting such fee from the loan proceeds, or by charging the fee
            directly to the Participant.

15.3  Interest Rate

      The interest rate payable on any Loan shall be established by the Plan
      Administrator in accordance with the requirements of law and shall be
      communicated to Participants. Any rate so established shall remain in
      effect until a new rate is established and communicated. The interest rate
      established under this Section 15.3 which is in effect on the Loan
      Valuation Date of any Loan shall be applicable to such Loan and shall
      remain in effect during the term of that Loan.

15.4  Term of Loan

      (a)   A Home Loan shall be repaid prior to the expiration of the 14-1/2
            year period commencing on the date of the first repayment. Any Loan
            under the Plan, other than a Home Loan, shall be repaid on or before
            the end of the 4-1/2-year period commencing on the date of the first
            repayment.

      (b)   The minimum term of any Loan shall be one year.

      (c)   Except to the extent required to comply with the applicable
            provisions of the Act or the Code, the outstanding balance of
            principal and accrued interest under any Loan shall become
            immediately due and payable as of (i) the last day of the calendar
            month following the month in which the Participant's employment with
            the Employer is terminated for any reason, including death or (ii)
            the effective date of a Qualified Domestic Relations Order that
            otherwise would require the transfer of all or any portion of a Loan
            to an Alternate Payee.

      (d)   Notwithstanding the preceding provisions of this Section 15.4, the
            full amount of the outstanding principal balance of any Loan which
            has been outstanding for not less than a six-

                                       55
<PAGE>

            month period may be prepaid without penalty, effective as of such
            date as may be prescribed by the Plan Administrator.

15.5  Disbursement and Security

      (a)   A Loan shall be evidenced in such written, telephonic or electronic
            manner as the Plan Administrator may prescribe, by the agreement of
            the borrowing Participant to the terms of the Loan, which terms
            shall include, without limitation, an assignment of 1/2 of the Value
            of the Participant's vested interest in his Accounts and the
            Participant's Outstanding Loan Balance or, in either case, any
            lesser portion thereof, as security for such Loan and the
            Participant's consent to a reduction of the Participant's Accounts
            in satisfaction of such security interest. Each Loan shall be
            secured by the Participant's pledge of his Accounts and his
            Outstanding Loan Balance to the extent assigned pursuant to the
            immediately preceding sentence.

      (b)   In the event that a Participant has executed a promissory note,
            otherwise agreed to Loan terms, or requested a Loan and, that prior
            to the date on which Loan proceeds are disbursed to him, it is
            determined that the amount available for a Loan under Section 15.2
            is less than the amount of such promissory note, Loan terms or Loan
            request, the Participant shall be required to accept a Loan in the
            maximum lesser amount permitted under Section 15.2 and evidence
            agreement with the revised Loan terms in such written, telephonic or
            electronic manner as the Plan Administrator shall require.

      (c)   Except as otherwise determined by the Plan Administrator, Loans
            shall be disbursed as soon as practicable following the Loan
            Valuation Date.

      (d)   Loans shall be made from a Participant's Accounts in the reverse
            order to the order in which withdrawals are permitted from such
            Accounts under Section 8.1. As of the Loan Valuation Date, an amount
            equal to the principal amount loaned from an Account shall be
            deducted on a pro rata basis from the Investment Funds in which such
            Account is otherwise invested. A Fund denominated the "Loan Fund"
            shall be established for each Participant with respect to whom a
            Loan is outstanding under the Plan. The Loan Fund shall be invested
            solely in the promissory note evidencing the Loan made to the
            Participant. The Loan Fund shall be credited with the principal
            amount of any Loan together with any interest accruing thereon.

      (e)   Except as otherwise determined by the Plan Administrator, a
            Participant who has applied for a Loan shall be required to accept
            such Loan.

                                       56
<PAGE>

15.6  Repayment of Loans

      (a)   Effective January 1, 2002 (except with respect to any individuals
            who entered into severance agreements with an Employer prior to that
            date), repayment of the principal and interest of any Loan under the
            Plan shall be made in substantially equal payments during the term
            of the Loan which shall be due upon each paydate of the borrowing
            Participant to occur during each calendar month commencing as soon
            as practicable following the date on which the proceeds of the Loan
            are disbursed. A Participant may prepay any loan in full (but not in
            part), provided that if the Participant remains on the active
            payroll of an Employer, such prepayment shall not be permitted, at
            any time prior to six months after the Loan Valuation Date.

      (b)   Payments of principal and interest, and lump sum prepayments of
            principal, shall reduce the balance in the Participant's Loan Fund.
            Such amounts shall be returned to the Participant's Accounts (e.g.,
            After-Tax Account, Basic Account, Before-Tax Account, Rollover
            Account, or any other Account established hereunder) from which the
            Loan was made pursuant to Section 15.5(d), in the same proportion as
            the original principal amount of the loan was borrowed from such
            Accounts.

      (c)   Amounts which are returned to a Participant's Accounts pursuant to
            Section 15.6(b) above, shall be invested in the Investment Funds in
            the proportion last elected by the Participant in accordance with
            Section 5.2.

      (d)   Notwithstanding any provision of this Plan to the contrary, loan
            repayments by a Participant who is in Military Service will be
            suspended under this Plan as permitted under Section 414(u)(4) of
            the Code.

15.7  Defaults and Remedies

      (a)   Except as otherwise prescribed by the Plan Administrator pursuant to
            Section 15.8, in the event that a Participant fails to make any
            required payment under a Loan, such Participant shall be deemed to
            be in default on such Loan, and a Loan which is in default shall
            become due and payable as of the last day of the month in which such
            default occurs.

      (b)   The Plan Administrator, in its sole discretion, may take such action
            as it may deem appropriate to enforce payment of any Loan, including
            the execution by the Plan upon its security interests in the
            Participant's Accounts and Loan Fund; provided, however, that the

                                       57
<PAGE>

            Plan shall not levy against an Account of the Participant until such
            time that a distribution from such Account would otherwise be
            available under the Plan. Any such application of a Participant's
            Accounts to payment of the Loan may be treated as a distribution
            from the Participant's Accounts in the order in which withdrawals
            are permitted from such Accounts under Section 8.1 to the extent
            required to discharge the Loan. If the entire balance and accrued
            interest of the Loan in default cannot be discharged as set forth in
            the preceding provisions of this Section 15.7, the remaining amount
            may be collected by the Plan Administrator using appropriate legal
            remedies and, until collected in full, shall be deducted from any
            subsequent withdrawals and distributions from the Plan. Nothing in
            this Section 15.7 shall affect the right of the Plan Administrator
            to retain the security in any part of the Participant's Accounts
            that is not available for withdrawal at the time that any other
            remedies are available to the Plan Administrator. Expenses of
            collection of any loan in default, including legal fees, if any,
            shall be borne by the Participant or his Accounts, except as the
            Plan Administrator may determine.

15.8  Loan Rules

      The Plan Administrator shall establish such rules consistent with the
      provisions of this Article 15, as it may deem necessary or advisable to
      provide for the administration of Loans, including, without limitation,
      rules governing (i) the date on which Loans shall commence to be made
      under the Plan; (ii) the manner and timing of repayments and prepayments;
      (iii) the treatment of Loans and repayments, including the determination
      of the events of default, in the event of an absence from employment by
      reason of leave of absence, lay-off or otherwise; (iv) the content of any
      Appropriate Form or Forms, promissory note/loan agreements, Loan
      applications and other documentation or written or electronic agreements
      or notices required or appropriate in connection with Loans; (v) the
      timing of applications and notifications in connection with Loans; and
      (vi) any matter as to which discretion is reserved to the Plan
      Administrator under this Article 15. Without limitation of the foregoing,
      the Plan Administrator may establish such rules and procedures, including
      the modification of the terms of any outstanding Loan, which he may deem
      to be necessary or desirable in order to comply with any regulations
      governing Employee loans under the provisions of the Act, the Code or any
      other applicable law, and by requesting a Loan hereunder each borrowing
      Participant agrees to execute such modified or superseding documents as
      may be required by the Plan Administrator pursuant to such rules or
      procedures.

                                       58
<PAGE>

                                   ARTICLE 16

                             Rollovers and Transfers

16.1  Rollovers to the Plan

      A Participant who is an Eligible Employee who has had distributed to him
      his interest in another plan which meets the requirements of Section
      401(a) of the Code, hereinafter referred to as the `Other Plan,' may, in
      accordance with procedures approved by the Plan Administrator, roll over
      all or a portion of such distribution to the Trustee provided the
      following conditions are met:

      (a)   The rollover (i) occurs on or before the 60th day following his
            receipt of the distribution from the Other Plan; (ii) the rollover
            is a "direct rollover" (within the meaning of Treasury Regulation
            Section 1.401(a)(31)-1T, Q&A-3) from the Other Plan; or (iii) if
            such distribution had previously been deposited in a conduit
            individual retirement account (as defined in Section 408 of the
            Code), the rollover occurs on or before the 60th day following his
            receipt of such distribution plus earnings thereon from the
            individual retirement account; and

      (b)   The distribution or direct rollover from the Other Plan is an
            eligible rollover distribution within the meaning of Section 402(c)
            of the Code, or the amount distributed from the individual
            retirement account qualifies as a rollover contribution under
            Section 408(d)(3) of the Code; and

      (c)   The amount rolled over does not include any amounts not includible
            in gross income in accordance with Section 402(c)(2) of the Code.

      The Plan Administrator shall develop such procedures, and may require such
      information from a Participant desiring to make such a rollover, as it
      deems necessary or desirable to determine that the proposed rollover shall
      meet the requirements of this Section 16.1. Rollovers made to this Plan
      shall only be allowed on a cash basis (wire transfer or checks). Any such
      rollover amount shall be invested as directed by such Eligible Employee's
      separate investment election consistent with Article 5.

16.2  Trust-to-Trust Transfers into or from the Plan

      At the discretion of the Corporation and pursuant to procedures issued by
      the Plan Administrator, the individuals who were participants in another
      plan which meets the requirements of Section 401(a) of the Code may have
      their entire interests in such plan, including Plan loans, transferred
      directly on a trust-to-trust basis into this Plan. Any such transferred
      amounts shall be allocated to Accounts of Participants as determined by
      the Plan Administrator. The Plan Administrator shall transfer such amounts
      to corresponding accounts under this Plan or in such other appropriate
      accounts as are

                                       59
<PAGE>

      necessary to protect any optional forms of benefit which may not be
      eliminated without violating Section 411(d)(6) of the Code.
      Notwithstanding the foregoing, in no event shall a transfer be permitted
      under this paragraph 16.2 to the extent that such transfer will subject
      the Plan or any portion of the Plan (including, but not limited to, the
      amount of the transfer) to the provisions of Sections 401(a)(11) and 417
      of the Code.

      At the discretion of the Corporation and pursuant to procedures issued by
      the Plan Administrator, the individuals who were participants in another
      plan which meets the requirements of Section 401(a) of the Code may have
      their entire interests in this Plan, including Plan loans, transferred
      directly on a trust-to-trust basis into such other Plan.

      At the discretion of the Corporation and pursuant to procedures issued by
      the Plan Administrator, any transfers into or out of this Plan pursuant to
      this Section may be done on a elective basis by the individuals involved.

                                       60
<PAGE>

                                   ARTICLE 17

                         In Event Plan Becomes Top-Heavy

17.1  For purposes of this Article 17, the following terms shall have the
      following meanings:

      (a)   "Determination Date" means, with respect to any Plan Year, the last
            Valuation Date of the preceding Plan Year.

      (b)   "Key Employee" means a Participant or former Participant who is a
            "key employee" as defined in Section 416(i) of the Code.

      (c)   "Non-Key Employee" is any Employee who is not a Key Employee
            (including a Participant who is a former Key Employee).

      (d)   "Permissive Aggregation Group" means, with respect to a given Plan
            Year, the Plan and all other plans of the Corporation and Corporate
            Group (other than those included in the Required Aggregation Group)
            which, when aggregated with the plans in the Required Aggregation
            Group, continue to meet the requirements of Sections 401(a)(4) and
            410 of the Code.

      (e)   "Present Value of Accounts" means, as of a given Determination Date,
            the sum of the Value of the Participant's Accounts under the Plan as
            of such Valuation Date. The determination of the Present Value of
            Accounts shall take into consideration distributions made to or on
            behalf of any Participant in the Plan Year ending on the
            Determination Date and the four preceding Plan Years, but shall not
            take into consideration the Value of the Accounts of any Participant
            who has not performed any services for an Employer during the
            five-year period ending on the Determination Date.

      (f)   "Required Aggregation Group" means with respect to a given Plan
            Year, (A) the Plan, (B) each other plan of the Corporation and
            Corporate Group in which a Key Employee is a participant, and (C)
            each other plan of the Corporation and Corporate Group which enables
            a plan described in (A) and (B) to meet the requirements of Section
            401(a)(4) or 410 of the Code. The Required Aggregation Group shall
            include any plan which would, but for the fact it terminated, be
            included in the terms of this definition.

                                       61
<PAGE>

      (g)   "Top-Heavy" means, with respect to the Plan for a Plan Year:

            (1)   that the Present Value of Accounts of Key Employees exceeds
                  60% of the Present Value of Accounts of all Participants; or

            (2)   the Plan is part of a Required Aggregation Group and such
                  Required Aggregation Group is a Top-Heavy Group,

            unless the Plan or such Top-Heavy Group is itself part of a
            Permissive Aggregation Group which is not a Top-Heavy Group.

      (h)   "Top-Heavy Group" means, with respect to a given Plan Year, a group
            of plans of the Corporation which, in the aggregate, meet the
            requirements of the definition contained in Section 416(g)(2)(B) of
            the Code.

17.2  Notwithstanding any other provision of the Plan to the contrary, the
      following provisions of this Section 17.2 shall automatically become
      operative and shall supersede any conflicting provisions of the Plan if,
      in any Plan Year, the Plan is Top-Heavy.

      (a)   For any Plan Year in which the Plan is Top-Heavy, the minimum Basic
            Contribution during the Plan Year on behalf of a Non-Key Employee
            shall be equal to the lesser of (i) 3% of such Non-Key Employee's
            "Section 416 compensation;" or (ii) the percentage of "Section 416
            compensation" at which Employer contributions are made (or required
            to be made) under the Plan on behalf of the Key Employee for whom
            such percentage is the highest. For the purposes of this subsection
            (a) the term "Section 416 compensation" shall mean the Section 415
            compensation (as defined in Section 4.3) for the Plan Year under
            consideration, subject to the applicable limitations of Section
            401(a)(17) of the Code, and the Employer contributions referred to
            in paragraph (ii) shall be deemed to include both Basic
            Contributions and Before-Tax Contributions.

      (b)   In the event of the termination of service of a Participant with all
            Affiliated Companies after the completion of not less than three
            years of Service, the Value of the Participant's Basic Account shall
            be 100% vested.

      (c)   Solely for purposes of determining if the Plan, or any other plan
            included in a Required Aggregation Group of which this Plan is a
            part, is Top-Heavy, the accrued benefit of a Participant other than
            a Key Employee shall be determined under (i) the method, if any,
            that

                                       62
<PAGE>

            uniformly applies for the accrual purposes under all plans
            maintained by the Corporation or any other member of the Corporate
            Group, or (ii) if there is no such method, as if such benefit
            accrued not more rapidly than the slowest accrual rate permitted
            under the fractional accrual rate of Section 411(b)(1)(C) of the
            Code.

      (d)   In the event that Congress should provide by statute, or the
            Treasury Department should provide by regulation or ruling, that the
            limitations provided in this Article 17 are no longer necessary for
            the Plan to meet the requirements of Section 401 of the Code or
            other applicable law then in effect, such limitations shall become
            void and shall no longer apply, without the necessity of further
            amendment to the Plan.

      IN WITNESS WHEREOF, ALCAN ALUMINUM CORPORATION has caused this amendment
and restatement of this Plan to be executed as of ______________ ______, 2002.

                                                   ALCAN ALUMINUM CORPORATION

                                                   By___________________________

Attest:

______________________________

                                       63
<PAGE>

                                   APPENDIX A
                          ADOPTION TERMS AND CONDITIONS

                             Table of Applicability
                           (In effect January 1, 2000)

The following table shows the Employees to whom the Alcan Aluminum Corporation
Hourly Employees' Savings Plan applies and the respective effective dates of
adoption of the Plan.

Appendix

A-1            Collectively bargained Employees at Sebree, Kentucky (October
               28, 1987)

A-2            Collectively bargained Employees at Terre Haute, Indiana
               (February 1, 1988)

A-3            [Reserved] [An Appendix of the Plan prior to this restatement
               applied to collectively bargained Employees at St. Louis,
               Missouri who were covered under the Plan from May 1, 1992 through
               March 31, 1995]

A-4            Collectively bargained Employees at Warren, Ohio (May 1, 1992)

A-5            Collectively bargained Employees at Fairmont, West Virginia
               (January 1, 1994)

A-6            Collectively bargained Employees at Louisville, Kentucky
               (November 1, 1997)

A-7            Collectively bargained Employees at Lockport, Illinois
              (October 1, 1999)

                                       64
<PAGE>

                                  APPENDIX A-1

                ADOPTION TERMS AND CONDITIONS -- Sebree, Kentucky

Alcan Aluminum Corporation Hourly Employees' Savings Plan

Alcan Aluminum Corporation, as Employer under the Alcan Aluminum Corporation
Hourly Employees' Savings Plan ("Plan"), has adopted the Plan in its current
form and as it may be hereinafter amended, with respect to the Employee
classification and on the terms and conditions hereinafter set forth:

1.    Date of Adoption:
      Effective October 28, 1987

2.    Designated Eligible Employee Class:
      Collectively bargained Employees at Sebree, Kentucky

3.    Basis of Adoption:
      Basic mandatory participation pursuant to Section 2.1(b)

      -     Employer contribution for each Eligible Employee covered by this
            Appendix of $0.30 per hour worked per each payroll period on and
            after 10/28/87 and before 10/28/88, allocable to the Basic Account
            of such Eligible Employee.

      -     Employer contribution for each Eligible Employee covered by this
            Appendix, and allocable to the Basic Account of such Eligible
            Employee, of $0.65 per hour worked per each payroll period on and
            after 10/28/88, until the expiration of the current collective
            bargaining agreement, and thereafter of such greater or lesser
            amount as may be required under any future collective bargaining
            agreement.

      Voluntary participation pursuant to Section 2.1(c)

4. Participation under Section 2.1(b) shall commence on the later of October 28,
1987 or an Eligible Employee's date of employment.

                                       65
<PAGE>

                                  APPENDIX A-2

              ADOPTION TERMS AND CONDITIONS -- Terre Haute, Indiana

Alcan Aluminum Corporation Hourly Employees' Savings Plan

Alcan Aluminum Corporation, as Employer under the Alcan Aluminum Corporation
Hourly Employees' Savings Plan ("Plan"), has adopted the Plan in its current
form and as it may be hereinafter amended, with respect to the Employee
classification and on the terms and condition hereinafter set forth.

1.    Date of Adoption:
      Effective February 1, 1988

2.    Designated Eligible Employee Class:
      Collectively bargained Employees at Terre Haute, Indiana

3.    Basis of Adoption:
      Basic mandatory participation pursuant to Section 2.1(b).

      -     A one-time, $500 lump sum Employer contribution for each Eligible
            Employee covered by this Appendix who was active as of 12/1/89,
            allocable to the Basic Account of such Eligible Employee. (This
            amount was previously contributed to the Plan.)

      -     A one-time, $3,500 lump sum Employer contribution for each Eligible
            Employee covered by this Appendix who was active as of 2/1/96,
            allocable to the Basic Account of such Eligible Employee. (This
            amount was previously contributed to the Plan.)

      Voluntary participation pursuant to Section 2.1(c).

                                       66
<PAGE>

                                  APPENDIX A-3

                         RESERVED -- St. Louis, Missouri

                                       67
<PAGE>

                                  APPENDIX A-4

                  ADOPTION TERMS AND CONDITIONS -- Warren, Ohio

Alcan Aluminum Corporation Hourly Employees' Savings Plan

Alcan Aluminum Corporation, as Employer under the Alcan Aluminum Corporation
Hourly Employees' Savings Plan ("Plan"), has adopted the Plan in its current
form and as it may be hereinafter amended, with respect to the Employee
classification and on the terms and conditions hereinafter set forth:

1.    Date of Adoption:
      Effective May 1, 1992

2.    Designated Eligible Employee Class:
      Collectively bargained Employees at Warren, Ohio

3.    Basis of Adoption:
      Basic mandatory participation pursuant to Section 2.1(b)

      -     A one-time, $200 lump sum Employer contribution for each Eligible
            Employee covered by this Appendix who was active as of 5/1/92,
            allocable to the Basic Account of such Eligible Employee. (This
            amount was previously contributed to the Plan.)

      Voluntary participation pursuant to Section 2.1(c)

                                       68
<PAGE>

                                  APPENDIX A-5

            ADOPTION TERMS AND CONDITIONS -- Fairmont, West Virginia

Alcan Aluminum Corporation Hourly Employees' Savings Plan

Alcan Aluminum Corporation, as Employer under the Alcan Aluminum Corporation
Hourly Employees' Savings Plan ("Plan"), has adopted the Plan in its current
form and as it may be hereinafter amended, with respect to the Employee
classification and on the terms and conditions hereinafter set forth:

1.    Date of Adoption:
      Effective January 1, 1994

2.    Designated Eligible Employee Class:
      Collectively bargained Employees at Fairmont, West Virginia

3.    Basis of Adoption:
      Basic mandatory participation pursuant to Section 2.1(b).

      -     A one-time, $500 lump sum Employer contribution for each Eligible
            Employee covered by this Appendix who was active as of 1/1/94,
            allocable to the Basic Account of such Eligible Employee. (This
            amount was previously contributed to the Plan.)

      Voluntary participation pursuant to Section 2.1(c)

                                       69
<PAGE>

                                  APPENDIX A-6

              ADOPTION TERMS AND CONDITIONS -- Louisville, Kentucky

Alcan Aluminum Corporation Hourly Employees' Savings Plan

Alcan Aluminum Corporation, as Employer under the Alcan Aluminum Corporation
Hourly Employees' Savings Plan ("Plan"), has adopted the Plan in its current
form and as it may be hereinafter amended, with respect to the Employee
classification and on the terms and conditions hereinafter set forth:

1.    Date of Adoption:
      Effective November 1, 1997

2.    Designated Eligible Employee Class:
      Collectively bargained Employees at Louisville, Kentucky

3.    Basis of Adoption:
      Basic mandatory participation pursuant to Section 2.1(b).

      -     A one-time, $100 lump sum Employer contribution for each Eligible
            Employee covered by this Appendix who is active as of 11/1/97,
            allocable to the Basic Account of such Eligible Employee.

      Voluntary participation pursuant to Section 2.1(c).

                                       70
<PAGE>

                                  APPENDIX A-7

               ADOPTION TERMS AND CONDITIONS -- Lockport, Illinois

Alcan Aluminum Corporation Hourly Employees' Savings Plan

Toyal America Inc., as a participating company under the Alcan Aluminum
Corporation Hourly Employees' Savings Plan ("Plan"), has adopted the Plan in its
current form and as it may be hereinafter amended, with respect to the Employee
classification and on the terms and conditions hereinafter set forth:

1.    Date of Adoption:
      Effective October 1, 1999

2.    Designated Eligible Employee Class:
      Collectively bargained Employees at Lockport, Illinois

3.    Basis of Adoption:
      Basic mandatory participation pursuant to Section 2.1(b)

      -     Effective January 1, 2000, an Employer contribution equal to 50% of
            any Participant contributions (After-tax and/or Before-tax
            Contributions) not exceeding 4% of Compensation, allocable to the
            Basic Account of such contributing Employee

      -     A one-time $500 lump sum Employer contribution for each Eligible
            Employee covered by this Appendix who was active as of November 20,
            1999, allocable to the Basic Account of such Eligible Employee

      -     The Basic Account will be 0% vested until the Participant completes
            two years of Service, at which time the Basic Account will be 100%
            vested

      Voluntary participation pursuant to Section 2.1(c)

                                       71
<PAGE>

                                   APPENDIX B

   TEMPORARY PROVISIONS AND RESTRICTIONS WITH RESPECT TO CERTAIN TRANSACTIONS

Notwithstanding anything in the Plan to the contrary (including the general
effective date of this restatement), the following provisions shall apply during
the period from July 1, 1997 through approximately July 31, 1997 (hereinafter
referred to as "the Special Election Period"):

(1)   a change in Investment Fund elections pursuant to Section 5.4 of the Plan,
      and Investment Fund reallocations pursuant to Section 5.5 of the Plan
      shall be permitted for a Participant at anytime during the Special
      Election Period regardless of the timing of any changes in Investment Fund
      elections or reallocations made prior to the Special Election Period;

(2)   a withdrawal pursuant to Article 8 of the Plan shall be permitted by a
      Participant during the Special Election Period, regardless of the timing
      of any withdrawal of the Participant prior to the Special Election Period;

(3)   a change in a Participant's After-Tax Contributions pursuant to 3.1 or
      Before-Tax Contributions pursuant to Section 3.2 of the Plan shall be
      permitted anytime during the Special Election Period, regardless of the
      timing of any After-Tax Contribution or Before-Tax Contribution changes
      made prior to the Special Election Period; and

(4)   a request from a Participant for a new loan will be accepted and processed
      during the Special Election Period despite the existence of a current
      outstanding Loan to such Participant, as long as such Participant's
      existing Loan has been paid in full or is anticipated to be paid in full
      by July 31, 1997; however, repayments on any existing loans will be
      required to be made without interruption during the Special Election
      Period.

The Committee may provide additional rules with respect to the exercise of any
of the above options, make additional options available, and change the length
of the Special Election Period, in any uniform and nondiscriminatory manner that
it determines essential or appropriate to the operation of the Plan.

Notwithstanding anything in the Plan to the contrary (including the general
effective date of this restatement), the following restrictions shall apply
during the period from August 1, 1997 through approximately October 31, 1997
(hereinafter referred to as "the Freeze"):

(1)   changes in Investment Fund elections pursuant to Section 5.4 of the Plan,
      and Investment Fund reallocations pursuant to Section 5.5 of the Plan
      shall not be permitted during the Freeze;

                                       72
<PAGE>

(2)   withdrawals pursuant to Article 8 of the Plan shall not be permitted
      during the Freeze;

(3)   eligible rollover distributions pursuant to Section 8.4 of the Plan, and
      distributions pursuant to Article 9 of the Plan shall not occur during the
      Freeze, except as may be required by applicable law; and

(4)   requests for loans will not be accepted or processed during the Freeze,
      although repayments on existing loans will be required to be made without
      interruption.

The Committee may make additional restrictions, and may change the length of the
Freeze, in any uniform and nondiscriminatory manner that it determines essential
or appropriate to the operation of the Plan.

                                       73
<PAGE>

                                 AMENDMENT NO. 1
                                       TO
                           ALCAN ALUMINUM CORPORATION
                         HOURLY EMPLOYEES' SAVINGS PLAN

            This Amendment No. 1 is executed as of the date set forth below, by
ALCAN ALUMINUM CORPORATION, (hereinafter called the "Company");

                                  WITNESSETH:

            WHEREAS, the Company established and maintains the Alcan Aluminum
Corporation Hourly Employees' Savings Plan, effective October 28, 1987,
(hereinafter referred to as the "Plan") for the benefit of eligible employees;

            WHEREAS, generally effective September 1, 1997, the Company amended
and restated the Plan, and thereafter again amended and restated the Plan,
generally effective January 1, 2000, in order to conform the Plan with the
Uniformed Services Employment and Reemployment Rights Act of 1994, the Small
Business Job Protection Act of 1996 and the Taxpayer Relief Act of 1997 and to
make certain other desirable changes;

            WHEREAS, pursuant to Section 13.1 of the Plan, the Company reserved
the right to make further amendments thereto; and

            WHEREAS, the Company desires to amend the Plan in order to permit
catch-up contributions to be made to the Plan by Participants who have attained
age 50, to bring the Plan into compliance with the Economic Growth and Tax
Relief Reconciliation Act of 2001, and make other desirable changes;

            NOW, THEREFORE, pursuant to Section 13.1 of the Plan, the Company
hereby amends the Plan, as follows, effective as set forth below:

<PAGE>

(1) Effective July 1, 2002, Section 1.11 of the Plan is hereby amended by the
deletion of such Section in its entirety and the substitution of a new Section
1.11 to read as follows:

"1.11 `Before-Tax Contributions' means the contributions made by the Employer
      pursuant to an election by a Participant to reduce any Compensation and/or
      Special Compensation otherwise currently payable to the Participant by an
      equal amount in accordance with the provisions of Section 3.2 and, if
      applicable. 3.10."

(2) Effective July 1, 2002, Article 1 of the Plan is hereby amended by the
addition of new Sections 1.13A and 1.13B to read as follows:

"1.13A `Catch-Up Contributions' means the contributions made by the Employer in
       accordance with the provisions of Section 3.10 pursuant to an election by
       a Participant to reduce cash compensation otherwise currently payable to
       the Participant by an equal amount.

1.13B  `Catch-Up Eligible Participant' means, for any Plan Year, a Participant
       who is eligible to make Before-Tax Contributions under Section 3.2 and
       who has attained age 50 or is expected to attain age 50 before the close
       of such Plan Year."

(3) Effective January 1, 2002, Section 1.15 of the Plan is hereby amended by the
deletion of such Section in its entirety and the substitution of a new Section
1.15 to read as follows:

"1.15 `Compensation' means direct compensation of a continuing nature paid to an
       Eligible Employee during any payroll period by an Employer or Employers.
       Compensation includes, but is not limited to, regular base pay, incentive
       program pay, overtime and other premium pay, lump sums which are paid
       after January 1, 1989 in lieu of salary or wage increases to each member
       of a defined group in a way which does not discriminate in favor of
       highly paid Employees, and amounts contributed by compensation reduction
       and deferral to the Plan and to any plan under Section 125 or 132(f)(4)
       of the Code. Compensation excludes, but the exclusion is not limited to,
       pay on the inactive payroll, Special Compensation as defined herein, gain
       sharing or similar payments (whether or not designated as Special
       Compensation), and vacation pay made in a lump sum because of
       termination.

       The amount of Compensation which, on an aggregate basis together with
       Special Compensation, is taken into account hereunder shall not be in
       excess of: (a) $170,000 for Plan Years beginning January 1, 2000; and (b)
       $200,000 for Plan Years beginning on or after January 1, 2002, or such
       higher dollar limit as may be in effect for any other Plan Year in
       accordance with the applicable provisions of Section 401(a)(17) of the
       Code. For any period shorter than a full Plan Year, the applicable
       limitation set forth in the immediately preceding sentence shall be
       multiplied by a fraction, the numerator of which is the number of months
       in such period, and the denominator of which is twelve."

                                       2
<PAGE>

(4) Effective July 1, 2002, Section 2.4 of the Plan is hereby amended by the
deletion of such Section in its entirety and the substitution of a new Section
2.4 to read as follows:

"2.4  Requirements of Plan Enrollment

      The Eligible Employee who is eligible to participate in the Plan pursuant
      to the terms of an Appendix, in complying with Sections 2.1 and 2.3, shall
      (i) authorize the deduction by his Employer from his Compensation for
      After-Tax Contributions pursuant to Section 3.1 and/or the reduction in
      his Compensation and/or Special Compensation for Before-Tax Contributions
      pursuant to Section 3.2 and, if applicable, Section 3.10 (any such
      authorization or authorizations shall be deemed to be continuing
      authorizations until changed by notice to the Plan Administrator on the
      Appropriate Form or in such manner as the Plan Administrator may
      prescribe), (ii) agree to the terms of the Plan, (iii) specify marital
      status and agree to keep the Plan Administrator informed of any change in
      marital status, (iv) make an investment election in accordance with
      Section 5.2 and (v) indicate, to the extent and in such manner as the Plan
      Administrator may from time to time direct, whether he participates or has
      participated in any plan or plans (other than the Plan) permitting
      employee tax-deferred contributions and state the total amount of any such
      contributions made by him for the calendar year in which he complies with
      Section 2.3. In addition to any other limitation imposed pursuant to
      Sections 402(g) or 414(v) of the Code, the Plan Administrator may limit
      the amount of the Before-Tax Contributions of any Participant who has made
      tax-deferred contributions to any plan (other than the Plan) in any
      calendar year for which the Participant elects to make Before-Tax
      Contributions to the Plan."

(5) Effective July 1, 2002, Sections 3.1 and 3.2 of the Plan are hereby amended
by the deletion of such Sections in their entirety and the substitution of new
Sections 3.1 and 3.2 to read as follows:

"3.1  After-Tax Contributions

      Subject to the limitations of Section 4.3, each Participant may elect to
      contribute to the Plan, on an after-tax basis, by means of payroll
      deduction from his Compensation, an integral percentage of up to,
      effective July 1, 2002, 50% (previously, 30%) of such Compensation, such
      payroll deductions to commence to the extent practicable with the paydate
      which coincides with or next follows the Participant's Entry Date.
      Participant contributions to the Plan pursuant to this Section 3.1 are
      After-Tax Contributions. If Before-Tax Contributions pursuant to Section
      3.2 are made with respect to the Participant, then the rate of After-Tax
      Contributions under this Section 3.1 shall not exceed, effective July 1,
      2002, 50% (previously 30%) minus the rate of Before-Tax Contributions with
      respect to the Participant for the same payroll period.

      After-Tax Contributions pursuant to this Section 3.1 shall be transferred
      to the Trustee as

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<PAGE>

      soon as administratively practicable, but in all events within 15 days
      after the end of the month in which such contributions are withheld from
      the Participant's Compensation.

3.2   Before-Tax Contribution

      Subject to the limits of Sections 3.6, 4.3 and this Section, a Participant
      may elect to have an integral percentage of up to, effective July 1, 2002,
      50% (previously, 30%) of the Compensation otherwise payable to him by the
      Employer after the effective date of his election constitute a Before-Tax
      Contribution hereunder and have the Employer or collective bargaining
      agent reduce his Compensation by the amount of such Before-Tax
      Contribution and transfer such Before-Tax Contribution instead to the
      Trustee.

      In addition, but also subject to such limits, a Participant may elect to
      have any Special Compensation otherwise payable to him reduced by 25%,
      50%, 75% or 100% and have the Employer make a contribution to the Trustee
      in an amount equal to such Before-Tax Contribution. However, in the event
      that the portion of the Special Compensation which the Participant has
      elected to receive in cash is not sufficient to pay any federal, state,
      local or other payroll or withholding taxes due or payable as a result of
      the entire Special Compensation payment, the Employer or Plan
      Administrator shall reduce the amount contributed to the Trustee on behalf
      of the Participant by the amount necessary to fully pay any such taxes,
      and the Participant shall be deemed to have elected to have only such net
      amount contributed as a Before-Tax Contribution hereunder.

      Payroll deferrals shall commence to the extent practicable with the
      paydate which coincides with or next follows the Participant's Entry Date.
      The deposit of Before-Tax Contributions shall be made no later than the
      15th business day of the calendar month next following the month in which
      the cash Compensation or Special Compensation with respect to which such
      reduction is effective would have been paid.

      Before-Tax Contributions shall be such integral percentage of the
      Participant's Compensation or Special Compensation as the Participant
      shall have designed but not to exceed the maximum percentage applicable
      for the Plan Year as determined by the Plan Administrator, separately for
      HCEs and all other Participants; provided, however, that in no event shall
      the amount of a Participant's Before-Tax Contributions exceed: (a) $10,500
      for Plan Years beginning on January 1, 2000; and (b) $11,000 for Plan
      Years beginning on or after January 1, 2002, or such higher dollar limit
      as may be in effect for any other Plan Year in accordance with the
      applicable provisions of the Code, including Section 402(g) of the Code
      and, effective July 1, 2002, Section 414(v) of the Code. Effective July 1,
      2002, in addition to any Before-Tax Contributions permitted under this
      section, certain Participants shall also be permitted to make Catch-Up
      Contributions under Section 3.10. The rules, limitations and procedures
      applicable to such Catch-Up Contributions under Section 3.10 shall
      supercede any contrary provisions of this Section 3.2 or the other
      sections of this Article 3 or Article 4."

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<PAGE>

(6) Effective January 1, 2002, Section 3.4 of the Plan is hereby amended by the
deletion of such Section in its entirety and the substitution of a new Section
3.4 to read as follows:

"3.4  Change in Contribution Rate

      A Participant may increase or decrease the amount of his After-Tax
      Contributions pursuant to Section 3.1 or the amount of Before-Tax
      Contributions pursuant to Section 3.2. To the extent practicable, any such
      change shall be effective as of the first paydate which next follows any
      Entry Date by the Participant giving notice to the Plan Administrator in
      such manner as the Plan Administrator shall prescribe prior to such Entry
      Date. Notwithstanding the foregoing provisions of this Section 3.4, in the
      event that the Before-Tax Contributions of a Participant equal: (a)
      $10,500 for Plan Years beginning on January 1, 2000; and (b) $11,000 for
      Plan Years beginning on or after January 1, 2002, or such higher dollar
      limit as may be in effect with respect to any other Plan Year in
      accordance with the applicable provisions of the Code, including Section
      402(g) of the Code and, effective July 1, 2002, Section 414(v) of the
      Code, such Participant shall be deemed to have elected to commence to make
      After-Tax Contributions pursuant to Section 3.1 at the percentage rate
      then in effect with respect to the Participant's Before-Tax Contributions
      immediately prior to such deemed election, except as otherwise provided by
      procedures established by the Plan Administrator. When any modification in
      the manner of contribution becomes effective under a deemed election under
      the preceding sentence any affected elections previously in effect with
      respect to the Participant shall also be deemed to have been appropriately
      adjusted to conform to the deemed election contemplated under the
      preceding sentence. Any such deemed election (whether in the manner of
      contribution or otherwise) shall remain in effect with respect to the
      Participant until the January 1 immediately following the effective date
      of the deemed election. Effective on such January 1, the Participant will
      have to make another election to reinstate the manner of contribution in
      effect immediately prior to any such deemed election or the Plan
      Administrator may reinstate the election in force before the dollar limit
      was reached, under such procedures as the Plan Administrator shall deem
      appropriate."

(7) Effective January 1, 2002, except as otherwise indicated, Section 3.6 of the
Plan is hereby amended by the deletion of subsection(c) in its entirety and the
substitution of a new Section 3.6(c) to read as follows:

      "(c) For purposes of this Section 3.6, the term `Deferral Percentage'
           shall mean, for any Eligible Employee for any Plan Year, the ratio
           of:

            (i)   the aggregate of the Before-Tax Contributions which, in
                  accordance with the rules set forth in Treasury Regulation
                  Section 1.401(k)-1(b)(4), are taken into account with respect
                  to such Plan Year (and excluding, effective July 1, 2002, any
                  Catch-Up Contributions made pursuant to Section 3.10

                                       5
<PAGE>

                  hereof), to

            (ii)  such Eligible Employee's `Section 414(s) compensation' for
                  such Plan Year. For this purpose, the term "Section 414(s)
                  compensation" shall mean W-2 compensation as permitted and
                  described in Treasury Regulation Sections 1.414(s)-1(c)(2) and
                  1.415-2(d)(11)(i), and shall also include all amounts
                  currently not included in the Eligible Employee's gross income
                  by reason of Sections 125, 132(f)(4) and 402(e)(3) of the
                  Code. In the case of an Eligible Employee who begins, resumes,
                  or ceases to be eligible to elect to have Before-Tax
                  Contributions made on his behalf during a Plan Year, the
                  amount of Section 414(s) compensation included in the Actual
                  Deferral Percentage test is the amount of Section 414(s)
                  compensation received by the Eligible Employee during the
                  entire Plan Year. In no case shall the Section 414(s)
                  compensation for any Eligible Employee for any Plan Year
                  exceed: (A) $170,000 for Plan Years beginning on January 1,
                  2000; and (B) $200,000 for Plan Years beginning on or after
                  January 1, 2002, or such higher dollar limit as may be in
                  effect with respect to any other Plan Year in accordance with
                  the applicable provisions of Section 401(a)(17) of the Code."

(8) Effective July 1, 2002, Section 3.9 of the Plan is hereby amended by the
deletion of such Section in its entirety and the substitution of a new Section
3.9 to read as follows:

"3.9  Make-Up Contributions after Return from Military Service

      In the event that a Participant returns to employment with an Employer
      immediately following a leave of absence due to Military Service and had
      failed to make after-tax contributions and/or before-tax contributions
      while on such leave of absence, then to the extent required by Section
      414(u) of the Code, the Participant shall be permitted to elect to make
      make-up contributions relating to such period of Military Service. The
      period during which such Participant may make such make-up contributions
      shall commence on his date of rehire and shall continue for a period which
      is the lesser of five years following such date of rehire or three times
      the Participant's period of Military Service. Such deferrals shall not be
      required to be taken into account for purposes of Section 3.6 in the year
      that they are made or the year to which they relate."

(9) Effective July 1, 2002, Article 3 of the Plan is hereby amended by the
addition of a new Section 3.10 to read as follows:

"3.10 Catch-Up Contributions After Attainment of Age 50.

      Effective July 1, 2002, a Catch-Up Eligible Participant may, in accordance
      with and subject to the limitations of this Section 3.10, Section 414(v)
      of the Code and the procedures adopted by the Plan Administrator, be
      eligible to make Catch-Up

                                       6
<PAGE>

      Contributions. Such Catch-Up Contributions shall constitute Before-Tax
      Contributions and shall be made as follows:

            (a)   A Catch-Up Eligible Participant shall be subject to an
                  "Adjusted Dollar Limit" for Before-Tax Contributions, in lieu
                  of the dollar limit otherwise applicable pursuant to the last
                  paragraph of Section 3.2 and Section 402(g) of the Code (the
                  "Regular 402(g) Limit"). The "Adjusted Dollar Limit" for any
                  year shall be the sum of the Regular 402(g) Limit for such
                  year plus the "Applicable Dollar Amount" for such year under
                  Section 414(v)(2)(B)(i) of the Code. The "Applicable Dollar
                  Amount" for the Plan Year beginning on January 1, 2002, is
                  $1,000 and such amount is scheduled to be increased in $1,000
                  increments through the 2006 Plan Year and may be increased for
                  future Plan Years in accordance with the applicable provisions
                  of the Code. Any amount contributed by a Participant as a
                  Before-Tax Contribution for a Plan Year which is in excess of
                  the Regular 402(g) Limit for such Plan Year, shall, to the
                  extent of the Applicable Dollar Amount, automatically
                  constitute a Catch-Up Contribution hereunder. Basic
                  Contributions shall be made with respect to Catch-Up
                  Contributions under this subsection 3.10(a) to the same extent
                  as Basic Contributions would otherwise be made pursuant to
                  Section 4.1 with respect to other Before-Tax Contributions
                  under Section 3.2.

            (b)   Any Catch-Up Eligible Participant whose Before-Tax
                  Contributions for a Plan Year do not exceed the Regular 402(g)
                  Limit, but whose After-Tax Contributions and Before-Tax
                  Contributions reach the percentage limit of such Participant's
                  Compensation set forth in Sections 3.1 and 3.2 (the
                  "Percentage Limit") or whose Annual Additions reach the limit
                  described in Section 4.2 (the "415 Limit"), may elect, in such
                  manner as the Plan Administrator shall prescribe, to make
                  further Before-Tax Contributions in excess of such Percentage
                  Limit and 415 Limit. Such further Before-Tax Contributions
                  shall constitute Catch-Up Contributions hereunder. No Basic
                  Contributions shall be made with respect to Catch-Up
                  Contributions made pursuant to this subsection 3.10(b).

            (c)   A Participant's Catch-Up Contributions for a Plan Year shall
                  not exceed the Participant's Compensation for such Plan Year,
                  reduced by any other elective deferrals of the Participant for
                  the Plan Year. In addition, a Participant's Catch-Up
                  Contributions for a Plan Year shall not exceed the Applicable
                  Dollar Amount for such Plan Year.

            (d)   Catch-Up Contributions made in accordance this Section 3.10
                  shall constitute Before-Tax Contributions and, except as
                  provided hereunder or by applicable law, shall be subject to
                  the provisions of this Plan generally applicable with respect
                  to Before-Tax Contributions. Without limiting the foregoing,
                  the deposit of any Catch-Up Contributions shall be made no
                  later than the 15th business day of the calendar month next
                  following the

                                       7
<PAGE>

                  month in which the cash Compensation with respect to which
                  such reduction is effective would have been paid, Catch-Up
                  Contributions shall be credited to the Participant's
                  Before-Tax Account and Catch-Up Contributions shall be subject
                  to the same provisions related to vesting, investment and
                  distribution as other Before-Tax Contributions credited to the
                  Participant's Before-Tax Account.

            (e)   Notwithstanding anything in this Plan to the contrary,
                  Catch-Up Contributions made in accordance with this Section
                  3.10 shall not be taken into account for purposes of the
                  provisions of this Plan, implementing the required limitations
                  of Sections 402(g) and 415 of the Code and this Plan shall not
                  be treated as failing to satisfy the provisions of the Plan
                  implementing the requirements of Section 401(k)(3),
                  401(k)(11), 401(k)(12), 410(b) or 416 of the Code, as
                  applicable, by reason of the making of such Catch-Up
                  Contributions."

(10) Effective January 1, 2002, Section 4.3 of the Plan is hereby amended by the
deletion of such Section in its entirety and the substitution of a new Section
4.3 to read as follows:

"4.3  Limitations

      Notwithstanding any provision of the Plan to the contrary, in no event in
      any calendar year shall the `Annual Addition' (as hereinafter defined) on
      behalf of any Participant exceed:

            (a)   for calendar years beginning before January 1, 2002, the
                  lesser of:

                  (i)   25% of the Participant's `Section 415 compensation' (as
                        hereinafter defined) for the calendar year; or

                  (ii)  $35,000 or such other (generally lesser) amount as
                        constituted the limit under Section 415(c)(1)(A) of the
                        Code, as adjusted under Section 415(d) of the Code; and

            (b)   for calendar years beginning on or after January 1, 2002, the
                  lesser of:

                  (i)   100% of the Participant's `Section 415 compensation' (as
                        hereinafter defined) for the calendar year; or

                  (ii)  $40,000 or such greater amount as constitutes the limit
                        under Section 415(c)(1)(A) of the Code, as adjusted
                        under Section 415(d) of the Code

      The term `Annual Addition' means the sum for any calendar year of (a) any
      Employer contributions (including Before-Tax Contributions other than
      Catch-Up Contributions) to

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<PAGE>

      the Plan and to all other defined contribution plans (combining, for this
      purpose, all defined contribution plans of the Corporate Group, as
      modified by Section 415(h) of the Code), (b) forfeitures under all such
      plans, (c) all after-tax contributions (including After-Tax Contributions)
      under such plans, and (d) amounts described in Sections 415(l)(1) and
      419A(d)(2) of the Code for the year.

      For purposes of this Section 4.3, the term `Section 415 compensation'
      means the Participant's W-2 compensation as permitted and described in
      Treasury Regulation Section 1.415-2(d)(11)(i), and shall also include, for
      Plan Years beginning on and after January 1, 1998, all amounts currently
      not included in the Eligible Employee's gross income by reason of Sections
      125, 132(f) and 402(e)(3) of the Code.

      If a Participant is also participating in another tax-qualified defined
      contribution plan maintained by any member of the Corporate Group (as
      modified by Section 415(h) of the Code), the otherwise applicable
      limitation on Annual Additions under this Plan shall be reduced by the
      amount of annual additions (within the meaning of Section 415(c)(2) of the
      Code) under any such other defined contribution plan.

      If the limitations applicable to any Participant in accordance with this
      Section 4.3 would be exceeded, the contributions made by or on behalf of a
      Participant under the Plan shall be reduced in the following order, but
      only to the extent necessary to meet the limitations: (i) After-Tax
      Contributions, (ii) Before-Tax Contributions (other than Catch-Up
      Contributions), (iii) Basic Contributions, and (iv) Qualified
      Contributions made pursuant to Section 4.4.

      In the event that, notwithstanding the foregoing provisions of this
      Section 4.3, the limitations with respect to Annual Additions prescribed
      hereunder are exceeded with respect to any Participant and such excess
      arises as a consequence of an error in estimating Compensation, the
      allocation of forfeitures, if any, or a reasonable error in determining
      the amount of Before-Tax Contributions:

            (i)   the After-Tax Contribution and Before-Tax Contribution
                  portions of such excess shall be returned to the Participant,
                  along with any income attributable thereto; and

            (ii)  the Basic Contribution portion shall be held in a suspense
                  account and, if such Participant remains a Participant, shall
                  be used to reduce Basic Contributions for such Participant for
                  the succeeding Plan Years; provided, however, that if such
                  Participant ceases to be an active Participant in the Plan,
                  the suspense account shall be used to reduce Basic
                  Contributions for all Participants in the Plan Year in which
                  he ceases to be a Participant, and all succeeding years, as
                  necessary."

(11) Effective July 1, 2002, Section 4.6 of the Plan is hereby amended by the
deletion of such Section in its entirety and the substitution of a new Section
4.6 to read as follows:

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<PAGE>

"4.6  Employer Contributions upon Return from Military Service

      In the event that a Participant returns to employment with an Employer
      immediately following a leave of absence due to Military Service, any
      Employer contribution, or any other matching or profit sharing
      contribution, which would have been made on behalf of such Participant,
      had he not been on such leave of absence, shall be made on his behalf and
      allocated to his Basic Account or other account, as applicable, to the
      extent required by Section 414(u) of the Code. Any such allocation shall
      be calculated based on any make-up contributions made under Section 3.9
      using estimated Compensation during such period of Military Service, based
      on his rate of Compensation at the time such leave of absence commenced
      and based on the matching or other contribution formula in effect for the
      Plan Year to which such make-up contribution relates, as applicable. Such
      Employer contribution, or any other employer matching or profit sharing
      contribution, shall not be required to be taken into account under Section
      4.3 in the Plan Year in which such contribution is made or to which such
      contribution relates."

(12) Effective January 1, 2002, Section 8.4 of the Plan is hereby amended by the
deletion of such Section in its entirety and the substitution of a new Section
8.4 to read as follows:

"8.4  Certain Eligible Rollover Distributions

      Notwithstanding anything in the Plan to the contrary that would otherwise
      limit a distributee's election under this Section 8.4, a `distributee' (as
      hereinafter defined) may elect, at the time and in the manner prescribed
      by the Plan Administrator, to have any portion of an `eligible rollover
      distribution' (as hereinafter defined) paid directly to an `eligible
      retirement plan' specified by the distributee in a `direct rollover.'

      For purposes of this Section 8.4, the following terms shall have the
      following meanings:

      (a)   `distributee' means an Eligible Employee or former Eligible
            Employee. In addition, the surviving spouse of an Eligible Employee
            or former Eligible Employee or a spouse or former spouse of an
            Eligible Employee or former Eligible Employee who is the alternate
            payee under a Qualified Domestic Relations Order, are distributees
            with regard to the interest of the spouse or the former spouse;

      (b)   `eligible rollover distribution' means any distribution of all or
            any portion of the balance to the credit of the distributee under
            the Plan, except that an eligible rollover distribution shall not
            include:

            (i)   any distribution from the Plan that is one of a series of
                  substantially equal periodic payments (made not less
                  frequently than annually) for the life (or life expectancy) of
                  the distributee or the joint lives (or joint life
                  expectancies) of the distributee and the distributee's
                  designated Beneficiary, or for a specified period of ten years
                  or more;

                                       10
<PAGE>

            (ii)  any distribution from the Plan to the extent such distribution
                  is required under Section 401(a)(9) of the Code; or

            (iii) the portion of any distribution from the Plan that is not
                  includible in gross income for federal income tax purposes
                  (determined without regard to the exclusion for net unrealized
                  appreciation with respect to employer securities), except that
                  for distributions made on or after January 1, 2002, After-Tax
                  Contributions are included in a distributee's eligible
                  rollover distribution;

      (c)   `eligible retirement plan' means:

            (i)   an individual retirement account described in Section 408(a)
                  of the Code;

            (ii)  an individual retirement annuity described in Section 408(b)
                  of the Code;

            (iii) an annuity plan described in Section 403(a) of the Code;

            (iv)  a qualified trust described in Section 401(a) of the Code;

            (v)   for distributions made on or after January 1, 2002, an
                  eligible deferred compensation plan described in Section
                  457(b) of the Code which is maintained by an eligible employer
                  described in Section 457(e)(1)(A) of the Code;

            (vi)  for distributions made on or after January 1, 2002, an annuity
                  contract described in Section 403(b) of the Code; and

            (vii) any such other plan, contract or other arrangement as may be
                  specified by statute or regulations in accordance with Section
                  401(a)(31) of the Code;

            in any case, that accepts the distributee's eligible rollover
            distribution.

            Notwithstanding the foregoing, for Plan Years beginning prior to
            January 1, 2002, with respect to an eligible rollover distribution
            to a surviving spouse of an Eligible Employee or former Eligible
            Employee, an eligible retirement plan means only an individual
            retirement account or an individual retirement annuity; and

      (d)   `direct rollover' means a payment by the Plan to the eligible
            retirement plan specified by the distributee."

(13) Effective January 1, 2002, Section 9.1 of the Plan is hereby amended by the
deletion of such Section in its entirety and the substitution of a new Section
9.1 to read as follows:

                                       11
<PAGE>

"9.1  Distributions on Termination of Employment

      When a Participant's employment with all Affiliated Companies is
      terminated, the Value of his vested interest in his Accounts shall be
      distributed to him or, if distribution is being made by reason of death,
      to his Beneficiary. For purposes of this Section 9.1, and subject to the
      provisions of Section 13.6, a termination of employment occurs upon a
      quit, discharge, termination due to a permanent shutdown or sale of a
      plant (except for situations involving a spinoff to another qualified
      plan), an absence that continues after the period of a leave of absence
      granted by an Employer expires, or a break in seniority under the terms of
      any applicable collective bargaining agreement, whichever occurs first.
      Any amount distributed to a Participant or a Participant's Beneficiary
      pursuant to the preceding sentence shall be reduced to the extent the
      Participant's Accounts are subject to a pledge under Section 15.5. All
      amounts distributable pursuant to this Article 9 shall be paid as soon as
      practicable on or after the Valuation Date as of which payment is to be
      made (and except as provided in Sections 9.2 and 9.3, in all events within
      60 days after the end of the later of the Plan Year in which the
      Participant attains age 65 or terminates employment with all Affiliated
      Companies). The Participant's Accounts shall be retained and administered
      under the Plan until the date of distribution.

      Effective January 1, 2002 (except with respect to any individuals who
      entered into severance agreements with an Employer prior to that date) for
      purposes of this Plan, including without limitation this Section and
      Sections 1.44 and 8.1, `discharge' shall include any cessation of active
      service by an Employee which is expected to be permanent and in connection
      with which the individual receives severance payments, payments from the
      inactive payroll or any other similar payments, and such a discharge shall
      constitute a `termination of employment,' a `termination of service' (or
      `Service'), `ceasing to be employed' and any other similarly described
      event."

(14) Effective July 1, 2002, Section 16.1 of the Plan is hereby amended by the
deletion of such Section in its entirety and the substitution of a new Section
16.1 to read as follows:

"16.1 Rollovers to the Plan

      A Participant who is an Eligible Employee who has had distributed to him
      his interest in an eligible retirement plan (which, effective July 1,
      2002, is defined for purposes of this Section 16.1 as it is defined in
      Section 8.4(c) effective January 1, 2002) may, in accordance with
      procedures approved by the Plan Administrator, roll over all or a portion
      of such distribution to the Trustee provided the following conditions are
      met:

      (a)   the rollover (i) occurs on or before the 60th day following his
            receipt of the distribution from the eligible retirement plan; or
            (ii) the rollover is a "direct rollover" (within the meaning of
            Treasury Regulation Section 1.401(a)(31)-1T, Q&A-3) from the
            eligible retirement plan;

      (b)   the distribution or direct rollover from the eligible retirement
            plan is an eligible rollover distribution within the meaning of
            Section 402(c) of the Code, or

                                       12
<PAGE>

            qualifies as a rollover contribution under Section 408(d)(3) of the
            Code;

      (c)   the amount rolled over does not include any amounts not otherwise
            includible in gross income in accordance with Section 402(c)(2) of
            the Code, except that, effective July 1, 2002, an amount transferred
            in a direct rollover from a qualified trust described in Section
            401(a) of the Code may, to the extent permitted by the Code, include
            amounts not otherwise includible in gross income, which amounts
            shall, in such manner as is determined by the Plan Administrator, be
            separately accounted for hereunder (including without limitation,
            crediting such amounts to an After-Tax Account rather than a
            Rollover Account, if the Plan Administrator so determines).

      The Plan Administrator shall develop such procedures, and may require such
      information from a Participant desiring to make such a rollover, as it
      deems necessary or desirable to determine that the proposed rollover shall
      meet the requirements of this Section 16.1. Rollovers made to this Plan
      shall only be allowed on a cash basis (wire transfer or checks). Any such
      rollover amount shall be invested as directed by such Eligible Employee's
      separate investment election consistent with Article 5."

(15) Effective January 1, 2002, subsection (e) of Section 17.1 of the Plan is
hereby amended by the deletion of such subsection in its entirety and the
substitution of a new Section 17.1(e) to read as follows:

      "(e)  `Present Value of Accounts' means, as of a given Determination Date,
            the sum of the Value of the Participant's Accounts under the Plan as
            of such Valuation Date. The determination of the Present Value of
            Accounts shall take into consideration distributions made to or on
            behalf of any Participant in the Plan Year ending on the
            Determination Date and, for distributions made for reasons other
            than separation from service, disability or death, the four
            preceding Plan Years, but shall not take into consideration the
            Value of the Accounts of any Participant who has not performed any
            services for an Employer during the five-year period ending on the
            Determination Date."

(16) Effective January 1, 2002, subsection (a) of Section 17.2 of the Plan is
hereby amended by the deletion of such subsection in its entirety and the
substitution of a new Section 17.2(a) to read as follows:

      "(a)  For any Plan Year in which the Plan is Top-Heavy, the minimum Basic
            contribution during the Plan Year on behalf of a Non-Key Employee
            shall be equal to the lesser of (i) 3% of such Non-Key Employee's
            `Section 416 compensation;' or (ii) the percentage of `Section 416
            compensation' at which Employer contributions are made (or required
            to be made) under the Plan on

                                       13
<PAGE>

            behalf of the Key Employee for whom such percentage is the highest.
            For the purposes of this subsection (a) the term `Section 416
            compensation' shall mean the Section 415 compensation (as defined in
            Section 4.3) for the Plan Year under consideration, subject to the
            applicable limitations of Section 401(a)(17) of the Code, and the
            Employer contributions referred to in paragraph (ii) shall be deemed
            to include both Basic Contributions and Before-Tax Contributions.
            For Plan Years commencing on or after January 1, 2002, matching
            contributions made by the Employer, including Basic Contributions
            made in accordance with Section 4.1(b), shall be taken into account
            for purposes of determining whether Employer contributions for a
            Non-Key Employee reach the percentage level required under the first
            sentence of this subsection 17.2(a)."

            IN WITNESS WHEREOF, the Company has caused this Amendment No. 1 to
be executed by its officers thereto duly authorized this _____ day of May, 2002.

                                                   ALCAN ALUMINUM CORPORATION
                                                         ("Company")

                                                   By___________________________

                                                   And__________________________

                                       14
<PAGE>

                                 AMENDMENT NO. 2

                                       TO

            ALCAN ALUMINUM CORPORATION HOURLY EMPLOYEES' SAVINGS PLAN

            This Amendment No. 2 is executed as of the date set forth below, by
Alcan Aluminum Corporation, (hereinafter called the "Company").

                                  WITNESSETH:

            WHEREAS, the Company established and maintains the Alcan Aluminum
Corporation Hourly Employees' Savings Plan, effective October 28, 1987,
(hereinafter referred to as the "Plan") to provide retirement benefits to
certain eligible employees;

            WHEREAS, the Company amended and restated the Plan, generally
effective January 1, 2000, in order to conform the Plan with the Uniformed
Services Employment and Reemployment Rights Act of 1994, the Small Business Job
Protection Act of 1996 and the Taxpayer Relief Act of 1997, and to make certain
other desirable changes;

            WHEREAS, the Company reserved the right, pursuant to Section 13.1 of
the Plan, to make amendments thereto; and

            WHEREAS, the Company has amended the restated Plan on one previous
occasion;

            WHEREAS, the Company desires to amend the Plan in order to modify
the minimum required distribution provisions in accordance with final
regulations published by the Internal Revenue Service ("IRS"); to bring the Plan
into compliance on a good faith basis with certain provisions of the Economic
Growth and Tax Relief Reconciliation Act of 2001 and related regulations, to
update the Plan's claims procedures for compliance with Department of Labor
regulations and other pronouncements, to incorporate the provisions of IRS
Revenue

<PAGE>

Ruling 2002-27 relating to compensation under Section 125 of the Code, to
reflect a higher matching contribution for certain employees of Toyal America,
Inc. and to make other desirable changes;

            NOW, THEREFORE, pursuant to Section 13.1 of the Plan, the Company
hereby amends the Plan, as follows:

             MINIMUM REQUIRED DISTRIBUTIONS (CODE SECTION 401(A)(9))

(1) Effective January 1, 2001, Section 9.5 of the Plan is hereby amended by the
addition of a new last paragraph at the end of said Section to read as follows:

      "With respect to distributions under the Plan made in the calendar year
      beginning January 1, 2001, the Plan will apply the minimum distribution
      requirements of Section 401(a)(9) of the Code in accordance with the
      regulations under Section 401(a)(9) that were proposed in January, 2001,
      notwithstanding any provision of the Plan to the contrary."

(2) Effective April 17, 2002, Section 9.5 of the Plan is hereby amended by the
deletion of said Section and the substitution in lieu thereof of a new Section
9.5 to read as follows:

"9.5 Mandatory Commencement of Benefits

      Subject to Section 401(a)(9) of the Code, Treasury Regulation Sections
      1.401(a)(9)-1 through -9, and any amendments to such regulations or
      section:

      (a)   a Participant who is a 5% owner (as defined in Section 416(i) of the
            Code) at any time after the attainment of age 661/2, shall receive
            the Value of his Accounts no later than the April 1 of the calendar
            year following the calendar year in which such Participant attains
            age 701/2;

      (b)   a Participant who is not a 5% owner at any time after the attainment
            of age 66 1/2, shall receive the Value of his Accounts no later than
            the April 1 of the calendar year following the later of (i) the
            calendar year in which the Participant attains age 70 1/2, or (ii)
            his termination of employment with the Employer and any Affiliated
            Company; and

      (c)   a Participant who becomes a 5% owner after the attainment of age
            701/2, but prior to termination of employment, shall receive the
            Value of his Accounts no later than the April 1 of the calendar year
            following the calendar year in which such Participant becomes a 5%
            owner.

                                       2
<PAGE>

                  Any payments under this Plan shall be adjusted to meet the
                  requirements of Section 401(a)(9) of the Code and the
                  regulations thereunder. Thus, to the extent the distributions
                  otherwise provided for under this Plan would not satisfy
                  Section 401(a)(9) of the Code, the entire interest of each
                  Participant (a) shall be distributed to him not later than the
                  required beginning date as defined in Section 401(a)(9)(C) of
                  the Code, or (b) shall be distributed, beginning not later
                  than the required beginning date, in accordance with
                  regulations or proposed regulations, over the life of the
                  Participant or over the life of the Participant and
                  Beneficiary (or over a period not extending beyond the life
                  expectancy of the Participant or the life of the Participant
                  and Beneficiary). Except to the extent that Section 9.3, or
                  other provisions of this Section or this Plan, would cause
                  such distribution to be in the form of a single lump sum
                  payment, the amount to be distributed each year must be at
                  least an amount (i) equal to the quotient obtained by dividing
                  the Participant's entire interest, determined as of the last
                  Valuation Date for the Plan Year immediately preceding the
                  year for which such distribution is being made, by the life
                  expectancy of the Participant or joint and survivor life
                  expectancy of the Participant and designated Beneficiary or,
                  (ii) calculated under such other method as may be prescribed
                  by the Department of Treasury.

                  Notwithstanding any provision of the Plan to the contrary,
                  distributions made under this Section 9.5 shall be deemed to
                  satisfy any distribution options provided for in the Plan that
                  are inconsistent with Section 401(a)(9) of the Code. In
                  addition, any distribution required under the incidental death
                  benefit rule of Section 401(a)(9)(G) of the Code shall be
                  treated as a distribution required under this Section.

                  With respect to distributions under the Plan made on or after
                  April 17, 2002, relating to calendar years beginning on or
                  after January 1, 2002, the Plan will apply the minimum
                  distribution requirements of Section 401(a)(9) of the Code in
                  accordance with the final and temporary regulations under
                  Section 401(a)(9) of the Code that were published on April 17,
                  2002, notwithstanding any provision of the Plan to the
                  contrary."

                      EGTRRA AND OTHER LEGISLATIVE CHANGES

(3) Effective January 1, 2002, Section 3.6 of the Plan is hereby amended by the
deletion of subsection (c)(ii) of said Section and the substitution in lieu
thereof of a new subsection (c)(ii) to read as follows:

            "(ii) such Eligible Employee's `Section 414(s) compensation' for
                  such Plan Year. For this purpose, the term `Section 414(s)
                  compensation' shall mean W-2 compensation as permitted and
                  described in Treasury Regulation Sections 1.414(s)-1(c)(2) and
                  1.415-2(d)(11)(i), and shall also include all amounts
                  currently not included in the Eligible Employee's gross income
                  by reason of Sections 125 (including any amounts not available
                  to a Participant in cash in lieu of group health coverage
                  because the Participant is unable

                                       3
<PAGE>

                  to certify that he or she has other health coverage),
                  132(f)(4), 402(e)(3) and 457 of the Code. In the case of an
                  Eligible Employee who begins, resumes, or ceases to be
                  eligible to elect to have Before-Tax Contributions made on his
                  behalf during a Plan Year, the amount of Section 414(s)
                  compensation included in the Actual Deferral Percentage test
                  is the amount of Section 414(s) compensation received by the
                  Eligible Employee during the entire Plan Year. In no case
                  shall the Section 414(s) compensation for any Eligible
                  Employee for any Plan Year exceed: (A) $170,000 for Plan Years
                  beginning on January 1, 2000; and (B) $200,000 for Plan Years
                  beginning on or after January 1, 2002, or such higher dollar
                  limit as may be in effect with respect to any other Plan Year
                  in accordance with the applicable provisions of the Code."

(4) Effective January 1, 2002, Section 4.3 of the Plan is hereby amended by the
deletion of the third paragraph of said Section and the substitution in lieu
thereof of a new third paragraph to read as follows:

      "For purposes of this Section 4.3, the term `Section 415 compensation'
      means the Participant's W-2 compensation as permitted and described in
      Treasury Regulation Section 1.415-2(d)(11)(i), and shall also include all
      amounts currently not included in the Eligible Employee's gross income by
      reason of Sections 125 (including, effective January 1, 2002, any amounts
      not available to a Participant in cash in lieu of group health coverage
      because the Participant is unable to certify that he or she has other
      health coverage), 132(f), 402(e)(3) and 457 of the Code."

NOTWITHSTANDING AMENDMENT NO. 3 TO THE PLAN, THE ABOVE PROVISION SHALL BECOME
EFFECTIVE JANUARY 1, 2002, AND SHALL SUPERSEDE ANY AMENDMENT TO THE THIRD
PARAGRAPH OF SECTION 4.3 CONTAINED IN AMENDMENT NO. 3 TO THE PLAN THAT CONTAINS
AN EARLIER EFFECTIVE DATE.

(5) Effective January 1, 2002, Section 4.6 of the Plan is hereby amended by the
deletion of said Section and the substitution in lieu thereof of a Section 4.6
to read as follows:

"4.6  Employer Contributions upon Return from Military Service

      Effective December 12, 1994, in the event that a Participant returns to
      employment with an Employer immediately following a leave of absence due
      to Military Service, any Employer contribution, or any other employer
      matching or profit sharing contribution, which would have been made on
      behalf of such Participant, had he not been on such leave of absence,
      shall be made on his behalf and allocated to his Basic Account or other
      account, as applicable, to the extent required by Section 414(u) of the
      Code. Any such allocation shall be calculated based on any make-up
      contributions made under Section 3.9 using

                                       4
<PAGE>

      estimated Compensation during such period of Military Service, based on
      his rate of Compensation at the time such leave of absence commenced and
      based on the matching or other contribution formula in effect for the Plan
      Year to which such make-up contribution relates, as applicable. Such
      Employer contribution, or any other employer matching or profit sharing
      contribution, shall not be required to be taken into account under Section
      4.3 in the Plan Year in which such contribution is made or to which such
      contribution relates."

                 CLAIMS PROCEDURES (LABOR REGULATION 2560.503-1)

(6) Effective January 1, 2002, Section 11.11 of the Plan is hereby amended by
the addition of a new last paragraph at the end of said Section to read as
follows:

      "Notwithstanding the foregoing, in the case of a determination relating to
      a disability benefit, the following claims and appeal procedures shall
      apply:

      (1)   The time for the initial determination of benefit shall be 45 days
            (instead of 90 days), and may be extended for two additional periods
            of 30 days each (instead of one additional period of 90 days). A
            notice to the Claimant of any such extension shall be provided prior
            to the start of the extension and shall indicate that the local
            representative of the Corporation has determined that the extension
            is necessary due to matters beyond the control of the local
            representative of the Corporation, the circumstances requiring the
            extension, the date by which a decision is expected, the standards
            upon which entitlement to disability benefits is based, the
            unresolved issues that prevent a decision on the claim and the
            additional information needed to resolve the claim. The Claimant
            shall be afforded at least 45 days in which to provide the specified
            information (during which time, the period for the local
            representative of the Corporation to make a determination shall be
            tolled).

      (2)   To the extent any internal rule, guideline, protocol or similar
            criterion is relied upon in making an initial adverse claims
            determination, then a copy of such rule, guideline, protocol or
            criterion shall be available to the Claimant upon request, free of
            charge.

      (3)   The time for requesting a review of an initial adverse claims
            determination shall be 180 days (instead of 120 days).

      (4)   The review shall be made by the Plan Administrator and shall be made
            by a person or entity which is neither the individual nor a
            subordinate of the individual who made the initial determination of
            benefit. If the initial determination of benefit was based in whole
            or in part on a medical judgment, the Plan Administrator shall
            consult with an appropriate health care professional who was not
            consulted in the initial determination of benefit and who is not the
            subordinate of the individual consulted in the initial claims
            determination. In addition, the identity of the health care
            professionals consulted in connection with the initial determination
            and the determination on

                                       5
<PAGE>

            appeal shall be available to the Claimant upon request.

      (5)   The time for a decision to be rendered by the Plan Administrator on
            a request for review shall be 45 days (instead of 60 days), and may
            be extended for an additional 45 days (instead of 60 days)."

                                  MISCELLANEOUS

(7) Effective January 1, 2003, Item 3 of Appendix A-7 of the Plan is hereby
amended by the deletion of said Item and the substitution in lieu thereof of a
new Item 3 to read as follows:

"3.   Basis of Adoption:

      Basic mandatory participation pursuant to Section 2.1(b)

      -     Effective January 1, 2003, an Employer contribution equal to 50% of
            any Participant contributions (After-tax and/or Before-tax
            Contributions) not exceeding 5% of Compensation (4% of Compensation
            from January 1, 2000 to December 31, 2002), allocable to the Basic
            Account of such contributing Employee

      -     A one-time $500 lump sum Employer contribution for each Eligible
            Employee covered by this Appendix who was active as of November 20,
            1999, allocable to the Basic Account of such Eligible Employee

      -     The Basic Account will be 0% vested until the Participant completes
            two years of Service, at which time the Basic Account will be 100%
            vested

      Voluntary participation pursuant to Section 2.1(c)"

            IN WITNESS WHEREOF, the Company has caused this Amendment No. 2 to
be executed by its officers thereto duly authorized this______ day
of________________________ , 2003.

                                        ALCAN ALUMINUM CORPORATION

                                        By:_____________________________________

                                        Title:__________________________________

                                       6
<PAGE>

                                 AMENDMENT NO. 3
                                       TO
            ALCAN ALUMINUM CORPORATION HOURLY EMPLOYEES' SAVINGS PLAN

            This Amendment No. 3 is executed as of the date set forth below by
ALCAN ALUMINUM CORPORATION (hereinafter called the "Company").

                                   WITNESSETH:

            WHEREAS, the Company established and maintains the Alcan Aluminum
Corporation Hourly Employees' Savings Plan, effective October 28, 1987
(hereinafter referred to as the "Plan") for the benefit of eligible employees;

            WHEREAS, generally effective September 1, 1997, the Company amended
and restated the Plan, and thereafter again amended and restated the Plan,
generally effective January 1, 2000, in order to conform the Plan with the
Uniformed Services Employment and Reemployment Rights Act of 1994, the Small
Business Job Protection Act of 1996 and the Taxpayer Relief Act of 1997 (the
foregoing collectively referred to as "GUST") and to make certain other
desirable changes;

            WHEREAS, pursuant to Section 13.1 of the Plan, the Company reserved
the right to make further amendments thereto; and

            WHEREAS, the Company has amended the restated Plan on two previous
occasions;

            WHEREAS, the Company desires to amend the Plan further in order to
bring the Plan into good faith compliance with GUST, to secure a favorable
determination letter from the Internal Revenue Service and to make other
desirable changes;

<PAGE>

            NOW, THEREFORE, pursuant to Section 13.1 of the Plan, the Company
hereby amends the Plan, as follows:

            (1) Effective January 1, 1997, Section 1.27 of the Plan is hereby
amended by the deletion of such Section in its entirety and the substitution of
a new Section 1.27 to read as follows:

    "1.27 `Leased Person' means, effective January 1, 1997, any individual
          (other than a common law employee of an Employer or an Affiliated
          Company) who, pursuant to an agreement between the Employer or
          Affiliated Company and any other person or leasing organization
          (`Leasing Organization') has performed services for the Employer or
          Affiliated Company (or for related persons determined in accordance
          with Section 414(n)(6) of the Code) on a substantially full-time basis
          for a period of at least one (1) year, and such services are performed
          under the primary direction or control of the Employer or Affiliated
          Company. Contributions or benefits provided to a Leased Person by the
          Leasing Organization which are attributable to services performed for
          the recipient employer shall be treated as provided by the recipient
          employer."

            (2) Effective January 1, 1997, Section 3.6(a) of the Plan is hereby
amended by the deletion of such Subsection in its entirety and the substitution
of a new Section 3.6(a) to read as follows:

     "(a) Notwithstanding the foregoing provisions of this Article 3, the Plan
          Administrator shall limit the amount of Before-Tax Contributions made
          on behalf of each Eligible Employee who is an HCE for each Plan Year
          to the extent necessary to ensure that either of the following tests
          is satisfied:

          (i)  the `Current Year Actual Deferral Percentage' (as hereinafter
               defined) for the group of Eligible Employees who are HCEs is not
               more than the "Prior Year Actual Deferral Percentage" of all
               other Eligible Employees multiplied by 1.25; or

          (ii) the excess of the Current Year Actual Deferral Percentage for the
               group of Eligible Employees who are HCEs over the Prior Year
               Actual Deferral Percentage of all other Eligible Employees is not
               more than two percentage points, and the Current Year Actual
               Deferral Percentage for the group of Eligible Employees who are
               HCEs is not more than the Prior Year Actual Deferral Percentage
               of all other Eligible Employees multiplied by 2.0.

          Notwithstanding the provisions in subparagraphs (i) and (ii) above,
          the Corporation may elect, subject to the limitations described in
          Internal Revenue Service Notice 98-1, to perform the tests using the
          Current Year Actual Deferral Percentage for all Eligible Employees who
          are not HCEs

                                       2
<PAGE>

          rather than the Prior Year Actual Deferral Percentage. For Plan Years
          beginning on and after January 1, 1997 and through December 31, 2001
          (and for later Plan Years, until changed pursuant to the previous
          sentence), the Corporation has used and anticipates using the Prior
          Year Actual Deferral Percentage for Eligible Employees who were not
          HCEs."

            (3) Effective January 1, 1998, Section 4.3 of the Plan is hereby
amended by modifying the third sentence thereof to read as follows:

      "For purposes of this Section 4.3, the term `Section 415 compensation'
      means the Participant's W-2 compensation as permitted and described in
      Treasury Regulation Section 1.415-2(d)(11)(i), and shall also include, for
      Plan Years beginning on and after January 1, 1998, all amounts currently
      not included in the Eligible Employee's gross income by reason of Sections
      125, 132(f)(4), 402(e)(3) and 457 of the Code."

            IN WITNESS WHEREOF, the Company has caused this Amendment No. 3 to
be executed by its officers thereto duly authorized as of this_____ day
of______________ , 2003.

                                                    ALCAN ALUMINUM CORPORATION

                                                    By:_________________________

                                                    Title:______________________

                                       3
<PAGE>

                                 AMENDMENT NO. 4
                                       TO
            ALCAN ALUMINUM CORPORATION HOURLY EMPLOYEES' SAVINGS PLAN

            This Amendment No. 4 is executed as of the date set forth below by
Alcan Aluminum Corporation (which, effective July 31, 2003, is merging with and
into Alcan Corporation) (the "Corporation").

                                   WITNESSETH:

            WHEREAS, Alcan Aluminum Corporation established and maintains the
Alcan Aluminum Corporation Hourly Employees' Savings Plan, effective October 28,
1987 (hereinafter referred to as the "Plan") for the benefit of eligible
employees; and

            WHEREAS, Alcan Aluminum Corporation most recently restated the Plan,
generally effective January 1, 2000; and

            WHEREAS, effective July 31, 2003, Alcan Aluminum Corporation, which
is an Ohio corporation, is reorganizing into a parent company and three
operating companies (the "Reorganization"), all of which shall be Texas
corporations, by (1) merging into a newly established subsidiary of Alcan Inc.,
which subsidiary is to be called Alcan Corporation, and (2) engaging in a
divisive merger to form three subsidiaries known as Alcan Products Corporation,
Alcan Primary Products Corporation and Alcan Aluminum Corporation, each of which
shall hold certain operating assets; and

            WHEREAS, pursuant to Section 13.1 of the Plan, Alcan Aluminum
Corporation reserved the right to make further amendments thereto; and

            WHEREAS, as a result of the Reorganization, Alcan Aluminum
Corporation desires to again amend the Plan in order to reflect the plan sponsor
and the participating

<PAGE>

companies, effective July 31, 2003;

            NOW, THEREFORE, pursuant to Section 13.1 of the Plan, the
Corporation hereby amends the Plan, effective July 31, 2003, as follows:

      1. The Plan is hereby amended by the addition of a new last paragraph to
the FOREWORD, to read as follows:

"Effective July 31, 2003, the Alcan Aluminum Corporation, which is an Ohio
corporation, is reorganizing into a parent company and three operating
companies, all of which shall be Texas corporations, by (1) merging into a newly
established subsidiary of Alcan Inc., which subsidiary is to be called Alcan
Corporation, and (2) engaging in a divisive merger to form three subsidiaries
known as Alcan Products Corporation, Alcan Primary Products Corporation and
Alcan Aluminum Corporation, each of which shall hold certain operating assets."

            2. The Plan is hereby amended by the deletion of Section 1.17 in its
entirety and the substitution in lieu thereof of a new Section 1.17 to read as
follows:

"1.17 "Corporation" means, with respect to periods prior to July 31, 2003, Alcan
      Aluminum Corporation, an Ohio corporation, and with respect to periods on
      and after July 31, 2003, Alcan Corporation, a Texas corporation (the
      successor by merger to the Ohio corporation known as Alcan Aluminum
      Corporation) and any successor to such corporation by merger, purchase,
      reorganization or otherwise, or any other corporation or business entity
      which agrees to assume the position of the Corporation hereunder. In
      connection with such reorganization and to the extent appropriate to Plan
      context, references herein to Alcan Aluminum Corporation, the Ohio
      corporation, which predate July 31, 2003, including references to Alcan
      Aluminum Corporation as the Plan's sponsor and references in the Foreword,
      signature block and Appendix A, shall be deemed to refer to Alcan
      Corporation, the Texas corporation, on and after July 31, 2003, whether or
      not such a reference is otherwise specifically mentioned."

      3. The name of the Plan is hereby changed from "Alcan Aluminum Corporation
Hourly Employees' Savings Plan" to "Alcancorp Hourly Employees' Savings Plan."
To the extent appropriate to Plan context, references to "Alcan Aluminum
Corporation Hourly Employees' Savings Plan" throughout the Plan, including the
cover page, headers and Appendix A, shall be deemed to refer to "Alcancorp
Hourly Employees' Savings Plan." Additionally, the Plan is hereby amended by the
deletion of Section 1.33 in its entirety and the substitution in lieu

                                       2
<PAGE>

thereof of a new Section 1.33 to read as follows:

"1.33 "Plan" means the Alcancorp Hourly Employees' Savings Plan, as herein set
      forth or as it may be amended from time to time; such term will also
      include the Plan as it was established on October 28, 1987 and any later
      amendments thereto."

            IN WITNESS WHEREOF, the Corporation has caused this Amendment No. 4
to be executed by its duly authorized officer this _______day of July, 2003.

                                                  ALCAN ALUMINUM CORPORATION

                                                  By:___________________________

                                                  Title:________________________

                                       3

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