Document:

exv4w1

 

Exhibit 4.1

NCI BUILDING SYSTEMS, INC.

To

THE BANK OF NEW YORK,

as Trustee

INDENTURE

Dated as of

November 16, 2004

2.125% Convertible Senior Subordinated Notes Due 2024

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	PAGE

	ARTICLE 1

	DEFINITIONS

	 	 	 	 	 	 	 
	Section 1.01.	 	Definitions
	 	 	2	 
	 	 	 	 	 	 	 
	ARTICLE 2

	ISSUE, DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF NOTES

	 	 	 	 	 	 	 
	Section 2.01.	 	Designation Amount And Issue Of Notes
	 	 	12	 
	Section 2.02.	 	Form of Notes
	 	 	12	 
	Section 2.03.	 	Date And Denomination Of Notes; Payments Of Interest and Additional Amounts
	 	 	13	 
	Section 2.04.	 	Execution of Notes
	 	 	15	 
	Section 2.05.	 	Exchange and Registration of Transfer of Notes; Restrictions on Transfer
	 	 	16	 
	Section 2.06.	 	Mutilated, Destroyed, Lost or Stolen Notes
	 	 	21	 
	Section 2.07.	 	Temporary Notes
	 	 	22	 
	Section 2.08.	 	Cancellation of Notes
	 	 	23	 
	Section 2.09.	 	CUSIP Numbers
	 	 	23	 
	 	 	 	 	 	 	 
	ARTICLE 3

	REDEMPTION AND REPURCHASE OF NOTES

	 	 	 	 	 	 	 
	Section 3.01.	 	Redemption of Notes
	 	 	23	 
	Section 3.02.	 	Notice of Optional Redemption; Selection of Notes
	 	 	24	 
	Section 3.03.	 	Payment of Notes Called For Redemption by the Company
	 	 	26	 
	Section 3.04.	 	Conversion Arrangement on Call for Redemption
	 	 	26	 
	Section 3.05.	 	Repurchase at Option of Holders Upon a Designated Event
	 	 	27	 
	Section 3.06.	 	Repurchase of Notes by the Company at Option of the Holder
	 	 	31	 
	Section 3.07.	 	Company Repurchase Notice.
	 	 	32	 
	Section 3.08.	 	Effect of Repurchase Notice
	 	 	33	 
	Section 3.09.	 	Deposit of Repurchase Price
	 	 	34	 
	Section 3.10.	 	Notes Repurchased in Part
	 	 	35	 
	Section 3.11.	 	Repayment to the Company
	 	 	35	 
	Section 3.12.	 	Acceleration; Payments To Noteholders
	 	 	35	 
	Section 3.13.	 	No Sinking Fund
	 	 	35	 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	PAGE

	 	 	 	 	 	 	 
	ARTICLE 4

	SUBORDINATION OF NOTES

	 	 	 	 	 	 	 
	Section 4.01.	 	Notes Subordinate to Senior Indebtedness
	 	 	35	 
	Section 4.02.	 	Payment Over of Proceeds upon Dissolution, Etc
	 	 	36	 
	Section 4.03.	 	No Payment When Senior Indebtedness in Default.
	 	 	37	 
	Section 4.04.	 	Payment Permitted If No Default
	 	 	38	 
	Section 4.05.	 	Subrogation to Rights of Holders of Senior Indebtedness
	 	 	38	 
	Section 4.06.	 	Provisions Solely To Define Relative Rights
	 	 	38	 
	Section 4.07.	 	Trustee To Effectuate Subordination
	 	 	39	 
	Section 4.08.	 	No Waiver of Subordination Provisions
	 	 	39	 
	Section 4.09.	 	Notice to Trustee
	 	 	40	 
	Section 4.10.	 	Reliance on Judicial Order or Certificate of Liquidating Agent
	 	 	41	 
	Section 4.11.	 	Trustee Not Fiduciary for Holders of Senior Indebtedness
	 	 	41	 
	Section 4.12.	 	Rights of Trustee as Holder of Senior Indebtedness; Preservation of Trustee’s Rights
	 	 	41	 
	Section 4.13.	 	Article Applicable to Paying Agents
	 	 	41	 
	Section 4.14.	 	No Senior Subordinated Indebtedness
	 	 	42	 
	 	 	 	 	 	 	 
	ARTICLE 5

	MAKE WHOLE PREMIUM

	 	 	 	 	 	 	 
	Section 5.01.	 	Make Whole Premium.
	 	 	42	 
	Section 5.02.	 	Adjustments Relating To Make Whole Premium
	 	 	46	 
	 	 	 	 	 	 	 
	ARTICLE 6

	PARTICULAR COVENANTS OF THE COMPANY

	 	 	 	 	 	 	 
	Section 6.01.	 	Payment of Principal, Interest and Additional Amounts
	 	 	46	 
	Section 6.02.	 	Maintenance of Office or Agency
	 	 	46	 
	Section 6.03.	 	Appointments to Fill Vacancies in Trustee’s Office
	 	 	47	 
	Section 6.04.	 	Provisions as to Paying Agent
	 	 	47	 
	Section 6.05.	 	Existence
	 	 	48	 
	Section 6.06.	 	Rule 144A Information Requirement
	 	 	48	 
	Section 6.07.	 	Stay, Extension and Usury Laws
	 	 	49	 
	Section 6.08.	 	Compliance Certificate
	 	 	49	 
	Section 6.09.	 	Additional Amounts Notice
	 	 	49	 
	 	 	 	 	 	 	 
	ARTICLE 7

	NOTEHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

	 	 	 	 	 	 	 
	Section 7.01.	 	Noteholders’ Lists
	 	 	50	 
	Section 7.02.	 	Preservation And Disclosure Of Lists
	 	 	50	 
	Section 7.03.	 	Reports By Trustee
	 	 	50	 
	Section 7.04.	 	Reports by Company
	 	 	51	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	PAGE

	 	 	 	 	 	 	 
	ARTICLE 8

	REMEDIES OF THE TRUSTEE AND NOTEHOLDERS ON AN EVENT OF DEFAULT

	 	 	 	 	 	 	 
	Section 8.01.	 	Events Of Default
	 	 	51	 
	Section 8.02.	 	Payments of Notes on Default; Suit Therefor
	 	 	54	 
	Section 8.03.	 	Application of Monies Collected By Trustee
	 	 	56	 
	Section 8.04.	 	Proceedings by Noteholder
	 	 	56	 
	Section 8.05.	 	Proceedings By Trustee
	 	 	57	 
	Section 8.06.	 	Remedies Cumulative And Continuing
	 	 	58	 
	Section 8.07.	 	Direction of Proceedings and Waiver of Defaults By Majority of Noteholders
	 	 	58	 
	Section 8.08.	 	Notice of Defaults
	 	 	59	 
	Section 8.09.	 	Undertaking To Pay Costs
	 	 	59	 
	 	 	 	 	 	 	 
	ARTICLE 9

	THE TRUSTEE

	 	 	 	 	 	 	 
	Section 9.01.	 	Duties and Responsibilities of Trustee
	 	 	59	 
	Section 9.02.	 	Reliance on Documents, Opinions, Etc
	 	 	61	 
	Section 9.03.	 	No Responsibility For Recitals, Etc
	 	 	62	 
	Section 9.04.	 	Trustee, Paying Agents, Conversion Agents or Registrar May Own Notes
	 	 	62	 
	Section 9.05.	 	Monies to Be Held in Trust
	 	 	63	 
	Section 9.06.	 	Compensation and Expenses of Trustee
	 	 	63	 
	Section 9.07.	 	Officers’ Certificate As Evidence
	 	 	64	 
	Section 9.08.	 	Conflicting Interests of Trustee
	 	 	64	 
	Section 9.09.	 	Eligibility of Trustee
	 	 	64	 
	Section 9.10.	 	Resignation or Removal of Trustee.
	 	 	64	 
	Section 9.11.	 	Acceptance by Successor Trustee
	 	 	66	 
	Section 9.12.	 	Succession By Merger
	 	 	66	 
	Section 9.13.	 	Preferential Collection of Claims
	 	 	67	 
	 	 	 	 	 	 	 
	ARTICLE 10

	THE NOTEHOLDERS

	 	 	 	 	 	 	 
	Section 10.01.	 	Action By Noteholders
	 	 	67	 
	Section 10.02.	 	Proof of Execution by Noteholders
	 	 	67	 
	Section 10.03.	 	Who Are Deemed Absolute Owners
	 	 	68	 
	Section 10.04.	 	Company-Owned Notes Disregarded
	 	 	68	 
	Section 10.05.	 	Revocation Of Consents, Future Holders Bound
	 	 	68	 
	 	 	 	 	 	 	 
	ARTICLE 11

	MEETINGS OF NOTEHOLDERS

	 	 	 	 	 	 	 
	Section 11.01.	 	Purpose Of Meetings
	 	 	69	 
	Section 11.02.	 	Call Of Meetings By Trustee
	 	 	69	 
	Section 11.03.	 	Call Of Meetings By Company Or Noteholders
	 	 	70	 

iii

 

	 	 	 	 	 	 	 
	 	 	 	 	PAGE

	Section 11.04.	 	Qualifications For Voting
	 	 	70	 
	Section 11.05.	 	Regulations
	 	 	70	 
	Section 11.06.	 	Voting
	 	 	71	 
	Section 11.07.	 	No Delay Of Rights By Meeting
	 	 	71	 
	 	 	 	 	 	 	 
	ARTICLE 12

	SUPPLEMENTAL INDENTURES

	 	 	 	 	 	 	 
	Section 12.01.	 	Supplemental Indentures Without Consent of Noteholders
	 	 	71	 
	Section 12.02.	 	Supplemental Indenture With Consent Of Noteholders
	 	 	73	 
	Section 12.03.	 	Effect Of Supplemental Indenture
	 	 	74	 
	Section 12.04.	 	Notation On Notes
	 	 	75	 
	Section 12.05.	 	Evidence Of Compliance Of Supplemental Indenture To Be Furnished To Trustee
	 	 	75	 
	 	 	 	 	 	 	 
	ARTICLE 13

	[RESERVED.]

	 	 	 	 	 	 	 
	ARTICLE 14

	CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

	 	 	 	 	 	 	 
	Section 14.01.	 	Company May Consolidate On Certain Terms
	 	 	75	 
	Section 14.02.	 	Successor To Be Substituted
	 	 	76	 
	Section 14.03.	 	Opinion Of Counsel To Be Given Trustee
	 	 	76	 
	 	 	 	 	 	 	 
	ARTICLE 15

	[RESERVED.]

	 	 	 	 	 	 	 
	ARTICLE 16

	IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

	 	 	 	 	 	 	 
	Section 16.01.	 	Indenture And Notes Solely Corporate Obligations
	 	 	77	 
	 	 	 	 	 	 	 
	ARTICLE 17

	CONVERSION OF NOTES

	 	 	 	 	 	 	 
	Section 17.01.	 	Right To Convert
	 	 	77	 
	Section 17.02.	 	Conversion Procedures
	 	 	80	 
	Section 17.03.	 	Conversion Obligation Upon a Bankruptcy.
	 	 	84	 
	Section 17.04.	 	[Reserved]
	 	 	84	 
	Section 17.05.	 	Adjustment Of Conversion Rate
	 	 	84	 
	Section 17.06.	 	Effect Of Reclassification, Consolidation, Merger or Sale
	 	 	93	 
	Section 17.07.	 	Taxes On Shares Issued
	 	 	96	 
	Section 17.08.	 	Reservation of Shares, Shares to Be Fully Paid; Compliance With Governmental Requirements; Listing of Common Stock
	 	 	96	 
	Section 17.09.	 	Responsibility Of Trustee
	 	 	97	 

iv

 

	 	 	 	 	 	 	 
	 	 	 	 	PAGE

	Section 17.10.	 	Notice To Holders Prior To Certain Actions
	 	 	97	 
	Section 17.11.	 	Stockholder Rights Plans
	 	 	98	 
	Section 17.12.	 	Issuer Determination Final
	 	 	99	 
	 	 	 	 	 	 	 
	ARTICLE 18

	MISCELLANEOUS PROVISIONS

	 	 	 	 	 	 	 
	Section 18.01.	 	Provisions Binding On Company’s Successors
	 	 	99	 
	Section 18.02.	 	Official Acts By Successor Corporation
	 	 	99	 
	Section 18.03.	 	Addresses For Notices, Etc
	 	 	99	 
	Section 18.04.	 	Governing Law
	 	 	100	 
	Section 18.05.	 	Evidence Of Compliance With Conditions Precedent, Certificates To Trustee
	 	 	100	 
	Section 18.06.	 	Legal Holidays
	 	 	100	 
	Section 18.07.	 	Trust Indenture Act
	 	 	101	 
	Section 18.08.	 	No Security Interest Created
	 	 	101	 
	Section 18.09.	 	Benefits Of Indenture
	 	 	101	 
	Section 18.10.	 	Authenticating Agent
	 	 	101	 
	Section 18.11.	 	Execution In Counterparts
	 	 	102	 
	Section 18.12.	 	Severability
	 	 	102	 
	Section 18.13.	 	Table of Contents, Headings, Etc
	 	 	1	 
	Exhibit A Form of Note	 	 	A-1	 

v

 

INDENTURE

     INDENTURE dated as of November 16, 2004, between NCI Building Systems,
Inc., a Delaware corporation (hereinafter called the “Company”), having its
principal office at 10943 North Sam Houston Parkway West, Houston, Texas,
77064, and The Bank of New York, a New York banking corporation, as trustee
hereunder (hereinafter called the “Trustee”).

     WITNESSETH:

     WHEREAS, for its lawful corporate purposes, the Company has duly
authorized the issue of its 2.125% Convertible Senior Subordinated Notes Due
2024 (hereinafter called the “Notes”), in an aggregate principal amount not to
exceed $180,000,000 and, 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; and

     WHEREAS, the Notes, the certificate of authentication to be borne by the
Notes, a form of assignment, a form of option to elect repurchase upon a
Designated Event, a form of repurchase notice 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 that 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.

     “Additional Amounts” has the meaning specified in Section 2(e) of the
Registration Rights Agreement.

     “Additional Amounts Notice” has the meaning specified in Section 6.09.

     “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 Houston, Texas are
authorized or obligated by law, regulation or executive order to close.

     “Calendar Quarter” means the first, second, third and fourth quarters
ending on March 31, June 30, September 30 and December 31, respectively.

     “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, right 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

2

 

participation that confers on a Person the right to receive a share of the
profits and losses of, or distribution in assets of, the issuing Person.

     “Closing Price” of the shares of Common Stock on any date means the
closing price per share (or if no closing 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 on the New York Stock Exchange Composite Tape or as reported in
composite transactions for the principal United States securities exchange on
which the Common Stock is traded (if other than the New York Stock Exchange)
or, if the Common Stock is not listed on a United States national or regional
securities exchange, the closing price as reported by the National Association
of Securities Dealers Automated Quotation System or by the National Quotation
Bureau Incorporated. In the absence of such a quotation, the Company shall be
entitled to determine the Closing Price on the basis it considers appropriate.

     “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 that 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 that is not subject to redemption by the Company. Subject to the
provisions of Section 17.06, however, any 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, par value
$0.01) or shares of any class or classes resulting from any reclassification or
reclassifications thereof and that 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 that 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 that 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 14 and
Section 17.06, shall include its successors and assigns.

     “Company Repurchase Notice” has the meaning specified in Section 3.07(b).

3

 

     “Company Repurchase Notice Date” has the meaning specified in Section
3.07(b).

     “Continuing Director” means a director who either (a) was a member of the
Board of Directors on November 16, 2004 or (B) who becomes a member of the
Board of Directors subsequent to that date and whose election or nomination for
election by the stockholders of the Company is duly approved by a majority of
the directors on the Company’s Nominating and Corporate Governance Committee
then still in office who were either directors on November 16, 2004 or whose
election or nomination for election was previously so approved.

     “Conversion Date” has the meaning set forth in Section 17.02(d).

     “Conversion Determination Date” has the meaning specified in Section
17.02(b).

     “Conversion Obligation” has the meaning specified in Section 17.01(a).

     “Conversion Price” as of any day will equal $1,000 divided by the
Conversion Rate as of such date and rounded to the nearest cent. The
Conversion Price shall initially be approximately $40.1411 per share of Common
Stock.

     “Conversion Rate” has the meaning specified in Section 17.01(a).

     “Conversion Settlement Date” has the meaning specified in Section
17.02(d).

     “Conversion Value” has the meaning specified in Section 17.02(a).

     “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 101 Barclay
Street, Fl. 21W; New York, NY 10286, Attention: Corporate Trust Department.

     “Current Market Price” has the meaning specified in Section 17.05(i)(i).

     “Custodian” means The Bank of New York, 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 and Additional Amounts” has the meaning specified in
Section 2.03.

     “Depositary” means the clearing agency registered under the Exchange Act
that is designated to act as the Depositary for the Global Notes. The

4

 

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.

     “Designated Event” means a Fundamental Change or a Termination of Trading.

     “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 Repurchase Date” has the meaning specified in Section
3.05(a).

     “Distributed Property” has the meaning specified in Section 17.05(d).

     “Effective Date” has the meaning specified in Section 5.01(b)(i).

     “Effective Date Notice” has the meaning specified in Section 5.01(a).

     “Equity Interests” means Capital Stock and all warrants, options or other
rights to acquire Capital Stock (but excluding any debt security that is
convertible into, or exchangeable for, Capital Stock).

     “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.

     “Exchange Property” has the meaning as specified in Section 17.06(b).

     “Exchange Property Average Price” has the meaning specified in Section
17.06(c).

     “Exchange Property Value” has the meaning specified in Section 17.06(c).

     “Ex-Dividend Date” has the meaning specified in Section 17.05(d)

     “Ex-Dividend Time” has the meaning specified in Section 17.01(b).

     “Expiration Time” has the meaning specified in Section 17.05(f).

     “Fair Market Value” has the meaning specified in Section 17.05(i)(ii).

     “Fundamental Change” means the occurrence of any of:

5

 

     (i) any “person” or “group” (as these terms are used for purposes
of Sections 13(d) and 14(d) of the Exchange Act) is or becomes the
“beneficial owner” (as used in Rule 13d-3 under the Exchange Act),
directly or indirectly, of 50% or more of the total voting power of all
classes of the Company’s capital stock entitled to vote generally in the
election of directors;

     (ii) Continuing Directors cease to constitute a majority of the
Board of Directors;

     (iii) any transaction or event in which the Company consolidates
with, or merges with or into, another Person or any Person consolidates
with, or merges with or into, the Company, other than pursuant to a
transaction or event in which the Persons that “beneficially owned,”
directly or indirectly, the shares of the Company’s capital stock
entitled to vote generally in the election of directors immediately
prior to such transaction, “beneficially own” directly or indirectly,
immediately after such transaction, shares of the continuing or
surviving Person’s voting stock representing at least a majority of the
total voting power of all outstanding classes of the Company’s capital
stock entitled to vote generally in the election of directors of the
continuing or surviving Person in substantially the same proportion as
such ownership immediately prior to the transaction;

     (iv) a sale, transfer, lease, conveyance or other disposition of
all or substantially all of the Company’s assets or properties to any
“person” or “group” (as these terms are used in Sections 13(d) and 14(d)
of the Exchange Act), including any group acting for the purpose of
acquiring, holding, voting or disposing of securities with the meaning
of Rule 13d-5(b)(1) under the Exchange Act; or

     (v) a liquidation or dissolution of the Company or the approval by
holders of the Capital Stock of the Company of any plan or proposal for
the liquidation or dissolution of the Company;

provided, however, that a Fundamental Change will not be deemed to have
occurred if, in the case of a merger or consolidation, 90% or more of the total
consideration (other than cash payments for fractional shares or pursuant to
statutory appraisal rights) in the merger or consolidation constituting the
Fundamental Change consists of common stock and any associated rights traded on
a United States 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, as a result of such transaction
or transactions, the Conversion Value of the Notes is determined by reference
to such common stock and associated rights, rather than the Common Stock, and
the Net Share Amount is payable in such common stock and associated rights.

6

 

     “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.

     “Initial Purchasers” means UBS Securities LLC and Wachovia Capital
Markets, LLC.

     “Interest” means, when used with reference to the Notes, any interest
payable under the terms of the Notes.

     “Make Whole Event” means the occurrence of (a) a Fundamental Change in
which 50% or more of the Common Stock is exchanged for, converted into,
acquired for, or constitutes solely the right to receive, shares of stock or
other securities or property (including cash), or any combination thereof or
(b) a Termination of Trading.

     “Make Whole Percentage” has the meaning specified in Section 5.01(b)(iii).

     “Make Whole Premium” has the meaning specified in Section 5.01(b)(iv).

     “Measurement Period” has the meaning specified in Section 17.01(a)(ii).

     “Net Exchange Property Amount” has the meaning specified in Section
17.06(d)(ii).

     “Net Share Amount” has the meaning specified in Section 17.02(b)(ii).

     “Net Shares” has the meaning specified in Section 17.02(b)(ii).

     “Non-Electing Share” has the meaning specified in Section 17.06(b).

     “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.

     “Notice Date” means the date of mailing of the notice of redemption
pursuant to Section 3.02.

7

 

     “Notice of Conversion” has the meaning specified in Section 17.02(c).

     “Offering Memorandum” means the Offering Memorandum of the Company for the
offering of the Notes, dated November 9, 2004.

     “Officers’ Certificate” when used with respect to the Company, means a
certificate signed 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, subject to customary
assumptions and exceptions, signed by legal counsel, who may be an employee of
or counsel to the Company.

     “Option to Elect Repurchase Upon a Designated Event” has the meaning
specified in Section 3.05(c).

     “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 cancelled by the Trustee or delivered to the Trustee
for cancellation;

     (b) Notes, or portions thereof, for the redemption of which monies in the
necessary amount shall have been deposited in trust with the Trustee or with
any paying agent (other than the Company);

     (c) 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; and

     (d) Notes converted pursuant to Article 17 and Notes deemed not
Outstanding pursuant to Article 3.

     “Permitted Junior Securities” means Equity Interests in the Company or
debt securities of the Company that are subordinated to all Senior Indebtedness
(and any debt securities issued in exchange for Senior Indebtedness) to
substantially the same extent, or to a greater extent than, the Notes are
subordinated to Senior Indebtedness.

     “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.

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     “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.

     “Principal Return” has the meaning specified in Section 17.02(b)(i).

     “Purchased Shares” has the meaning specified in Section 17.05(f)(i).

     “Record Date” has the meaning specified in Section 17.05(i)(iii).

     “Registration Rights Agreement” means the Registration Rights Agreement,
dated as of November 16, 2004, by and among the Company and the Initial
Purchasers, as amended from time to time in accordance with its terms.

     “Repurchase Date” has the meaning specified in Section 3.06.

     “Repurchase Notice” has the meaning specified in Section 3.06.

     “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).

     “Rights” has the meaning specified in Section 17.11.

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

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

     “Senior Credit Agreement” means that certain Credit Agreement, dated as of
June 18, 2004, by and among the Company, as borrower, certain of the Company’s
domestic Subsidiaries party thereto from time to time, as guarantors, the
lenders party thereto from time to time and Wachovia Bank, National
Association, as administrative agent, including any related notes, guarantees,
collateral documents, instruments and agreements executed in connection
therewith, and in each case as amended, restated, modified, increased, renewed,

9

 

refunded, replaced or refinanced from time to time, whether or not with
the same parties.

     “Senior Indebtedness” means, in respect of the Company, whether now or
hereafter incurred: (i) the principal, premium, if any, interest and all other
amounts owed in respect of the Company’s (A) indebtedness for money borrowed
and (B) indebtedness evidenced by securities, notes, bonds or other similar
instruments, (ii) all obligations of the Company (including all interest
accruing after the commencement of any bankruptcy or similar proceeding,
whether or not a claim for post-petition interest is allowed as a claim in any
such proceeding) payable under the Senior Credit Agreement and any other credit
agreement, loan agreement or other financing arrangement that, by its terms,
supersedes or replaces, in whole or in part, the Senior Credit Agreement,
whether outstanding on the date of this Indenture or thereafter created,
incurred, assumed, guaranteed or in effect guaranteed by the Company, (iii) all
interest rate hedging agreements and currency hedging agreements, (iv) all of
the Company’s capital lease obligations and all attributable debt in respect of
sale/leaseback transactions, (v) all obligations issued or assumed by the
Company as the deferred purchase price of property, all of the Company’s
conditional sale obligations and all of the Company’s obligations under any
title retention agreement (but excluding trade accounts payable arising in the
ordinary course of business), (vi) all of the Company’s obligations for the
reimbursement of any letter of credit, banker’s acceptance, security purchase
facility or similar credit transaction, (vii) all obligations of the type
referred to in clauses (i) through (vi) above of other persons for the payment
of which the Company is responsible or liable as obligor, guarantor or
otherwise, (viii) all fees, costs, expenses and other amounts accrued or due in
connection with obligations of the type referred to in clauses (i) through
(vii) above, and (ix) all obligations of the type referred to in clauses (i)
through (viii) above of other persons secured by any lien on any of the
Company’s properties or assets (whether or not such obligation is assumed by
the Company); except for (x) any such indebtedness that is by its terms
subordinated to or pari passu with the Notes or is subordinated to any other
Senior Indebtedness; (y) any indebtedness between or among the Company or its
Affiliates, including all other debt securities and guarantees in respect of
those debt securities issued to any trust, or trustees of such trust,
partnership or other entity affiliated with the Company that is, directly or
indirectly, a financing vehicle of the Company (a “Financing Entity”) in
connection with the issuance by such Financing Entity of preferred securities
or other securities that rank pari passu with, or junior to, the Notes and (z)
accounts payable or other liability to trade creditors arising in the ordinary
course of business (including guarantees thereof or instruments evidencing such
liabilities).

     “Senior Indebtedness Default Notice” has the meaning specified in Section
4.03(a).

     “Senior Subordinated Indebtedness” means, with respect to the Company, the
Notes and any other indebtedness of the Company that specifically

10

 

provides that such indebtedness is to have the same rank as the Notes in
right of payment and is not subordinated by its terms in right of payment to
any indebtedness or other obligation of the Company that is not Senior
Indebtedness.

     “Stock Price” has the meaning specified in Section 5.01(b)(ii).

     “Stock Price Cap” has the meaning specified in Section 5.01(b)(iv)(C).

     “Stock Price Threshold” has the meaning specified in Section
5.01(b)(iv)(B).

     “Subordinated Indebtedness” means any indebtedness of the Company that
specifically provides that such indebtedness is subordinated to the Notes.

     “Subordinated Obligations” has the meaning specified in Section 4.01.

     “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).

     “Ten Day Average Price” has the meaning specified in Section 17.02(a)(ii).

     “Termination of Trading” will be deemed to have occurred if the Common
Stock (or other common stock into which the Notes are then convertible pursuant
to Article 17) is neither listed for trading on a United States national
securities exchange nor approved for trading on the Nasdaq National Market.

     “Trading Day” has the meaning specified in Section 17.05(i)(iv).

     “Trading Price” means, on any date of determination, the average of the
secondary market bid quotations per $1,000 principal amount of Notes obtained
by the Trustee for $5,000,000 principal amount of Notes at approximately 3:30
p.m., New York City time, on such determination date from three independent
nationally recognized securities dealers selected by the Company; provided that
if three such bids cannot reasonably be obtained by the Trustee, but two such
bids are obtained, then the average of the two bids shall be used, and if only
one such bid can reasonably be obtained by the Trustee, this one bid shall be
used; provided further that if the Trustee cannot reasonably obtain at least
one bid for $5,000,000 principal amount of Notes from a nationally recognized
securities

11

 

dealer, then the Trading Price per $1,000 principal amount of Notes shall
be deemed to be less than 98% of the product of (a) the Closing Price of the
Common Stock on such date and (b) the Conversion Rate on such date.

     “Trigger Event” has the meaning specified in Section 17.05(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
Sections 12.03 and Section 17.06; 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 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.

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 “2.125% Convertible Senior Subordinated Notes Due 2024”. Notes
not to exceed the aggregate principal amount of $180,000,000 (except pursuant
to Sections 2.05, 2.06, 3.03, 3.05 and 17.02 hereof) upon the execution of this
Indenture, or 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

12

 

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 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, repurchases, 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, Interest on, and Additional Amounts, 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 and
Additional Amounts. 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 and
Additional Amounts, if any, payable on such interest payment date, except that
the Interest

13

 

and Additional Amounts, if any, payable upon redemption or repurchase will
be payable to the Person to whom principal is payable pursuant to such
redemption or repurchase (unless the redemption date or the Designated Event
Repurchase Date, as the case may be, falls after a record date and on or prior
to the corresponding interest payment date, in which case the full semi-annual
payment of Interest and Additional Amounts, if any, becoming due on such
interest payment date shall be payable to the holders of such Notes registered
as such on the corresponding record date). Interest and Additional Amounts, if
any, shall be payable at an office 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 and Additional
Amounts, if any, (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
(provided that the holder of Notes with an aggregate principal amount in excess
of $2,000,000 shall, at the written election of such holder, be paid by wire
transfer of immediately available funds) 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 May 1 or November 1 preceding the applicable May 15 or November
15 interest payment date, respectively.

     Any Interest or Additional Amounts on any Note that are payable, but are
not paid or duly provided for, on any May 15 or November 15, pursuant to the
terms set forth herein (herein called “Defaulted Interest and Additional
Amounts”) 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 and Additional Amounts 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 and
Additional Amounts 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 and Additional Amounts, which
shall be fixed in the following manner. The Company shall notify the Trustee
in writing of the amount of Defaulted Interest and Additional Amounts proposed
to be paid on each Note and the date of the proposed 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 and
Additional Amounts 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 and Additional Amounts as in this clause provided.
Thereupon the Trustee shall fix a special record date for the payment of such
Defaulted Interest and Additional Amounts that shall be not more than fifteen
(15) days and not less than ten (10)

14

 

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 Additional Amounts 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 Additional Amounts and the special record date
therefor having been so mailed, such Defaulted Interest and Additional Amounts
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 and Additional
Amounts 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”). 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 18.10),
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.

     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.

15

 

     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 that
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, repurchase 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 and the Registrar 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.

16

 

     Neither the Company nor the Trustee nor any Note Registrar shall be
required to exchange or register a transfer of (a) any Notes for a period of
fifteen (15) days next preceding any selection of Notes to be redeemed, (b) any
Notes or portions thereof called for redemption pursuant to Section 3.02, (c)
any Notes or portions thereof surrendered for conversion pursuant to Article
17, (d) any Notes or portions thereof tendered for repurchase (and not
withdrawn) pursuant to Section 3.05 or (e) any Notes or portions thereof
tendered for repurchase (and not withdrawn) pursuant to Section 3.06.

     (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
(90) days or (II) has ceased to be a clearing agency registered under
the Exchange Act and a successor clearing agency has not been appointed
by the Company within ninety (90) days, (B) an Event of Default has
occurred and the maturity of the Notes has been accelerated in
accordance with their terms and any holder has requested in writing the
issuance of definitive certificated Notes 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

17

 

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.

     (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, repurchased, converted, cancelled or exchanged for Notes in
certificated form, such Global Note shall, upon receipt thereof, be
cancelled 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, repurchased, converted, cancelled 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

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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) and the Common Stock, if any, issued upon
conversion thereof, shall bear a legend in substantially the following form,
unless (a) such Note or Common Stock has been sold pursuant to (1) a
registration statement that has been declared effective under the Securities
Act (and that continues to be effective at the time of such transfer) or (2)
Rule 144 under the Securities Act or any similar provision then in force, or
(b) otherwise agreed by the Company in writing, with written notice thereof to
the Trustee:

     THIS SECURITY AND THE SHARES OF NCI BUILDING SYSTEMS, INC. (THE “COMPANY”)
COMMON STOCK (“COMMON STOCK”), IF ANY, ISSUABLE UPON CONVERSION OF THIS
SECURITY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. NEITHER THIS SECURITY,
ANY SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF THIS SECURITY NOR ANY
INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF
SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
REGISTRATION.

     THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES TO OFFER,
SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE
RESTRICTION TERMINATION DATE”) WHICH IS TWO YEARS AFTER THE LAST DATE ON WHICH
THE 2.125% CONVERTIBLE SENIOR SUBORDINATED NOTES DUE 2024 OF THE COMPANY WERE
ORIGINALLY ISSUED ONLY (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) FOR SO
LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A
PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED
IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR
THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHICH NOTICE IS GIVEN THAT
THE TRANSFER IS BEING

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MADE IN RELIANCE ON RULE 144A, (C) PURSUANT TO A REGISTRATION STATEMENT
THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT OR (D) PURSUANT TO
ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT, SUBJECT TO THE RIGHTS OF THE COMPANY AND THE WITHIN MENTIONED
TRUSTEE PRIOR TO THE REGISTRATION OF ANY SUCH OFFER, SALE OR TRANSFER PURSUANT
TO CLAUSE (B), (C) or (D) TO REQUIRE A DULY COMPLETED AND SIGNED CERTIFICATE
(THE FORM OF WHICH IS AVAILABLE FROM THE COMPANY OR THE TRUSTEE) AND IN THE
CASE OF CLAUSE (D) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM, AND IN
EACH OF THE FOREGOING CASES, A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON
THE OTHER SIDE OF THIS SECURITY COMPLETED AND DELIVERED BY THE TRANSFEROR TO
THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER
THE RESALE RESTRICTION TERMINATION DATE.

     Any Note (or security issued in exchange or substitution therefor) or such
Common Stock 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
or certificates representing such shares of Common Stock for exchange to the
Note Registrar or transfer agent of the Common Stock 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, or certificates representing a like
number of shares of Common Stock that 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) Any Note or Common Stock, if any, 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 that results in such Notes or Common Stock, as
the case may be, no longer being “Restricted Securities” (as defined under Rule
144).

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     (e) The Company and 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, with respect to performance by the Depositary or any Agent Members
of their respective obligations under the rules and procedures governing their
operations 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 Company and the Trustee may rely and shall
be fully protected in relying upon information furnished by the Depositary with
respect to its Agent Members.

     The Company and 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 Indenture) 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

21

 

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
governmental charge that may be imposed in relation thereto and any other
expenses connected therewith. In case any Note that has matured or is about to
mature or has been called for redemption or has been tendered for redemption
upon a Designated Event (and not withdrawn) or has been surrendered for
repurchase on a Repurchase Date (and not withdrawn) or is to be converted
pursuant to Article 17 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 or repurchase 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 or repurchase 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

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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, repurchase, conversion, exchange or
registration of transfer shall, if surrendered to the Company or any paying
agent or any Note Registrar or any conversion agent, be surrendered to the
Trustee and promptly cancelled by it, or, if surrendered to the Trustee, shall
be promptly cancelled 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 cancelled Notes in accordance with its customary
procedures. If the Company shall acquire any of the Notes, such acquisition
shall not operate as a redemption, repurchase 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 AND REPURCHASE OF NOTES

     Section 3.01 . Redemption of Notes. The Company may not redeem any Notes
prior to November 20, 2009. On or after November 20, 2009, and prior to
maturity, the Notes may be redeemed at any time or from time to time at the
option of the Company, in whole or in part. Upon any redemption pursuant to
this Section 3.01, the Company shall provide the notice required by Section
3.02 hereof (which notice may be revoked at any time prior to the time at which
the Company or the Trustee, as the case may be, has given such notice to
Noteholders) and shall pay a redemption price in cash equal to 100% of the
principal amount of the Notes being redeemed, together with accrued and unpaid
Interest and Additional Amounts, if any, to, but excluding, the date fixed for

23

 

redemption; provided that if the date fixed for redemption falls after a
record date and on or prior to the corresponding interest payment date, then
the Interest and Additional Amounts, if any, payable on such interest payment
date shall be paid to the holders of record of the Notes at the close of
business on the applicable record date instead of the holders surrendering the
Notes for redemption.

     Section 3.02 . Notice of Optional Redemption; Selection of Notes. In
case the Company shall desire to exercise the right to redeem all or, as the
case may be, any part of the Notes pursuant to Section 3.01, it shall fix a
date for redemption and it or, at its written request (which may be revoked at
any time prior to the time on which the Trustee has given notice to the holders
of the Notes) received by the Trustee not fewer than forty-five (45) days prior
(or such shorter period of time as may be acceptable to the Trustee) to the
date fixed for redemption, the Trustee in the name of and at the expense of the
Company, shall mail or cause to be mailed a notice of such redemption not fewer
than twenty (20) nor more than sixty (60) days prior to the redemption date to
each holder of Notes so to be redeemed as a whole or in part at its last
address as the same appears on the Note Register; provided that if the Company
shall give such notice, it shall also give written notice of the redemption
date to the Trustee. Such mailing shall be 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. In any case,
failure to give such notice by mail or any defect in the notice to the holder
of any Note designated for redemption as a whole or in part shall not affect
the validity of the proceedings for the redemption of any other Note.
Concurrently with, or promptly following, the mailing of any such notice of
redemption, the Company shall issue a press release announcing such redemption,
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 the validity of the redemption notice or any of
the proceedings for the redemption of any Note called for redemption.

     Each such notice of redemption shall specify the aggregate principal
amount of Notes to be redeemed, the CUSIP number or numbers, if any, of the
Notes being redeemed, the date fixed for redemption (which shall be a Business
Day), the redemption price at which Notes are to be redeemed, the place or
places of payment, that payment will be made upon presentation and surrender of
such Notes, that Interest and Additional Amounts, if any, accrued and unpaid to
the date fixed for redemption will be paid as specified in said notice, and
that on and after said date Interest and Additional Amounts, if any, thereon or
on the portion thereof to be redeemed will cease to accrue. Such notice shall
also state the current Conversion Rate and the date on which the right to
convert such Notes pursuant to Article 17 will expire. If fewer than all the
Notes are to be redeemed, the notice of redemption shall identify the Notes to
be redeemed (including CUSIP numbers, if any). In case any Note is to be
redeemed in part only, the notice of redemption shall state the portion of the
principal amount thereof to be redeemed and shall state that, on and after the
redemption date, upon surrender of

24

 

such Note, a new Note or Notes in principal amount equal to the unredeemed
portion thereof will be issued.

     On or prior to the redemption date specified in the notice of redemption
given as provided in this Section 3.02, the Company will deposit with the
Trustee or with one or more paying agents (or, if the Company is acting as its
own paying agent, set aside, segregate and hold in trust as provided in Section
6.04) an amount of money in immediately available funds sufficient to redeem on
the redemption date all the Notes (or portions thereof) so called for
redemption (other than those theretofore surrendered for conversion pursuant to
Article 17) at the appropriate redemption price, together with accrued and
unpaid Interest and Additional Amounts, if any, to, but excluding, the
redemption date; provided that if such payment is made on the redemption date
it must be received by the Trustee or paying agent, as the case may be, by
10:00 a.m. New York City time on such date. The Company shall be entitled to
retain any interest, yield or gain on amounts deposited with the Trustee or any
paying agent pursuant to this Section 3.02 in excess of amounts required
hereunder to pay the redemption price and accrued and unpaid Interest and
Additional Amounts, if any, to, but excluding, the redemption date. If any
Note called for redemption is converted pursuant hereto prior to such
redemption date, any money deposited with the Trustee or any paying agent or so
segregated and held in trust for the redemption of such Note shall be paid to
the Company upon its written request, or, if then held by the Company, shall be
discharged from such trust. Whenever any Notes are to be redeemed, the Company
will give the Trustee written notice in the form of an Officers’ Certificate
not fewer than forty-five (45) days (or such shorter period of time as may be
acceptable to the Trustee) prior to the redemption date as to the aggregate
principal amount of Notes to be redeemed.

     If less than all of the Outstanding Notes are to be redeemed, the Trustee
shall select the Notes or portions thereof of the Global Note or the Notes in
certificated form to be redeemed (in principal amounts of $1,000 or multiples
thereof) by lot, on a pro rata basis or by another method the Trustee deems
fair and appropriate. If any Note selected for partial redemption is submitted
for conversion in part after such selection, the portion of such Note submitted
for conversion shall be deemed (so far as may be possible) to be the portion to
be selected for redemption. The Notes (or portions thereof) so selected shall
be deemed duly selected for redemption for all purposes hereof, notwithstanding
that any such Note is submitted for conversion in part before the mailing of
the notice of redemption.

     Upon any redemption of less than all of the Outstanding Notes, the Company
and the Trustee may (but need not), solely for purposes of determining the pro
rata allocation among such Notes as are unconverted and Outstanding at the time
of redemption, treat as Outstanding any Notes surrendered for conversion during
the period of fifteen (15) days next preceding the mailing of a notice of
redemption and may (but need not) treat as Outstanding any Note authenticated

25

 

and delivered during such period in exchange for the unconverted portion
of any Note converted in part during such period.

     Section 3.03 . Payment of Notes Called For Redemption by the Company. If
notice of redemption has been given as provided in Section 3.02, the Notes or
portion of Notes with respect to which such notice has been given shall, unless
converted pursuant to Article 17, become due and payable on the date fixed for
redemption and at the place or places stated in such notice at the applicable
redemption price, together with Interest and Additional Amounts, if any,
accrued and unpaid to (but excluding) the redemption date, and on and after
said date (unless the Company shall default in the payment of such Notes at the
redemption price, together with Interest and Additional Amounts, if any,
accrued to said date) Interest and Additional Amounts, if any, on the Notes or
portion of Notes so called for redemption shall cease to accrue and, after the
close of business on the Business Day immediately preceding the redemption date
(unless the Company shall default in the payment of such Notes at the
redemption price, together with Interest and Additional Amounts, if any,
accrued to said date), such Notes shall cease to be convertible pursuant to
Article 17 and, except as provided in Section 9.05, to be entitled to any
benefit or security under this Indenture, and the holders thereof shall have no
right in respect of such Notes except the right to receive the redemption price
thereof and accrued and unpaid Interest and Additional Amounts, if any, to (but
excluding) the redemption date. On presentation and surrender of such Notes at
a place of payment in said notice specified, the said Notes or the specified
portions thereof shall be paid and redeemed by the Company at the applicable
redemption price, together with Interest and Additional Amounts, if any,
accrued and unpaid thereon to, but excluding, the redemption date.

     Upon presentation of any Note redeemed in part only, the Company shall
execute and 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 principal amount equal to the unredeemed portion
of the Notes so presented.

     Notwithstanding the foregoing, the Trustee shall not redeem any Notes or
mail any notice of redemption during the continuance of a default in payment of
Interest or Additional Amounts, if any, on the Notes.

     Section 3.04 . Conversion Arrangement on Call for Redemption. In
connection with any redemption of Notes, the Company may arrange for the
purchase and conversion of any Notes by an agreement with one or more
investment banks or other purchasers to purchase such Notes by paying to the
Trustee in trust for the Noteholders, on or before the date fixed for
redemption, an amount not less than the applicable redemption price, together
with Interest and Additional Amounts, if any, accrued and unpaid to, but
excluding, the date fixed for redemption, of such Notes. Notwithstanding
anything to the contrary contained in this Article 3, the obligation of the
Company to pay the redemption

26

 

price of such Notes, together with Interest and Additional Amounts, if
any, accrued and unpaid to, but excluding, the date fixed for redemption, shall
be deemed to be satisfied and discharged to the extent such amount is so paid
by such investment banks or other purchasers. If such an agreement is entered
into, a copy of which will be filed with the Trustee prior to the date fixed
for redemption, any Notes not duly surrendered for conversion by the holders
thereof may, at the option of the Company, be deemed, to the fullest extent
permitted by law, acquired by such investments banks or other purchasers from
such holders and (notwithstanding anything to the contrary contained in Article
17) surrendered by such investment banks or other purchasers for conversion,
all as of immediately prior to the close of business on the date fixed for
redemption (and the right to convert any such Notes shall be extended through
such time), subject to payment of the above amount as aforesaid. At the
direction of the Company, the Trustee shall hold and dispose of any such amount
paid to it in the same manner as it would monies deposited with it by the
Company for the redemption of Notes. Without the Trustee’s prior written
consent, no arrangement between the Company and such investment banks or other
purchasers for the purchase and conversion of any Notes shall increase or
otherwise affect any of the powers, duties, responsibilities or obligations of
the Trustee as set forth in this Indenture.

     Section 3.05 . Repurchase 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, at such holder’s option,
to require the Company to repurchase all of such holder’s Notes, or any portion
thereof that is a multiple of $1,000 principal amount, for cash on a date
designated by the Company (the “Designated Event Repurchase Date”) that is not
less than twenty (20) nor more than thirty-five (35) Business Days after the
date of the Designated Event Notice (as defined in Section 3.05(b)) for such
Designated Event (or, if such day is not a Business Day, the next succeeding
Business Day) at a repurchase price equal to 100% of the principal amount
thereof, together with accrued and unpaid Interest and Additional Amounts, if
any, to, but excluding, the Designated Event Repurchase Date, plus, in the case
of a Make Whole Event occurring on or prior to November 15, 2009, a Make Whole
Premium as determined pursuant to Article 5; provided that if such Designated
Event Repurchase Date falls after a record date and on or prior to the
corresponding interest payment date, then the Interest and Additional Amounts,
if any, payable on such interest payment date shall be paid to the holders of
record of the Notes at the close of business on the applicable record date
instead of the holders surrendering the Notes for repurchase. Notwithstanding
the foregoing, no Notes may be surrendered for repurchase pursuant to this
Section 3.05 in connection with a merger, consolidation or other transaction
effected solely for the purpose of changing the Company’s jurisdiction of
incorporation to any other state within the United States.

     (b) On or before the 20th day after the occurrence of a Designated Event,
the Company or at its written request (which must be received by the

27

 

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 repurchase right at the option
of the holders arising as a result thereof. Such notice shall be mailed in the
manner and with the effect set forth in the first paragraph of Section 3.02
(without regard for the time limits set forth therein). 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, or promptly following, 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, or (at
the Company’s sole election) the Company may publish such information on its
website or through such other public medium as the Company shall use at such
time. The failure to issue any such press release or otherwise publish such
information or any defect therein shall not affect the validity of the
Designated Event Notice or any proceedings for the repurchase of any Note that
any Noteholder may elect to have the Company repurchase as provided in this
Section 3.05.

     Each Designated Event Notice shall specify the circumstances constituting
the Designated Event, the Designated Event Repurchase Date, the price at which
the Company shall be obligated to repurchase Notes, that the holder must
exercise the repurchase right on or prior to the close of business on the
Designated Event Repurchase 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, if the Notes are then convertible, that Notes
as to which an Option to Elect Repurchase Upon a Designated Event has been
given may be converted only if the Option to Elect Repurchase Upon a Designated
Event is withdrawn in accordance with the terms of this Indenture, a
description of the procedure that a Noteholder must follow to exercise such
repurchase 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 Additional Amounts, if any, accrued and unpaid on each Note to the
Designated Event Repurchase 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’ repurchase rights or affect the validity
of the proceedings for the repurchase of the Notes pursuant to this Section
3.05.

     (c) Repurchases of Notes under this Section 3.05 shall be made, at the
option of the holder thereof, upon:

     (i) delivery to the Trustee (or other paying agent appointed by the
Company) by a holder of a duly completed and executed notice (the

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“Option to Elect Repurchase Upon a Designated Event”) in the form
set forth on the reverse of the Note prior to the Designated Event
Expiration Time; and

     (ii) delivery or book-entry transfer of the Notes to the Trustee
(or other paying agent appointed by the Company) at any time
simultaneous to or after delivery of the Option to Elect Repurchase Upon
a Designated Event (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
repurchase price therefor; provided that such repurchase 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 Option
to Elect Repurchase Upon a Designated Event.

     The Company shall purchase from the holder thereof, 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 purchase of all of a Note also apply to the purchase of such portion of
such Note.

     Upon presentation of any Note repurchased 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 portion of the Notes presented that
was not repurchased.

     Notwithstanding anything herein to the contrary, any holder delivering to
the Trustee (or other paying agent appointed by the Company) the Option to
Elect Repurchase Upon a Designated Event contemplated by this Section 3.05
shall have the right to withdraw such Option to Elect Repurchase Upon a
Designated Event at any time prior to the Designated Event Expiration Time by
delivery of a written notice of withdrawal to the Trustee (or other paying
agent appointed by the Company) in accordance with Section 3.05(d) below.
Notes in respect of which an Option to Elect Repurchase Upon a Designated Event
has been given by the holder thereof may not be converted pursuant to Article
17 hereof on or after the date of the delivery of such Option to Elect
Repurchase Upon a Designated Event unless such Option to Elect Repurchase Upon
a Designated Event has first been validly withdrawn.

     The Trustee (or other paying agent appointed by the Company) shall
promptly notify the Company of the receipt by it of any Option to Elect
Repurchase Upon a Designated Event or written notice of withdrawal thereof.

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     For a Note, other than a Global Note, to be so repurchased at the option
of the holder, 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 Option to Elect Repurchase Upon A Designated
Event on the reverse thereof duly completed, together with such Notes duly
endorsed for transfer, on or before the Designated Event Expiration Time. All
questions as to the validity, eligibility (including time of receipt) and
acceptance of any Note for repurchase shall be determined by the Company, whose
determination shall be final and binding absent manifest error.

     (d) An Option to Elect Repurchase Upon a Designated Event 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
Option to Elect Repurchase Upon a Designated Event at any time prior to the
Designated Event Expiration Time, specifying:

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

     (ii) 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, and

     (iii) the principal amount, if any, of such Note that remains
subject to the original Option to Elect Repurchase Upon a Designated
Event.

     (e) On or prior to the Designated Event Repurchase Date, the Company shall
deposit with the Trustee or with one or more paying agents (or, if the Company
is acting as its own paying agent, set aside, segregate and hold in trust as
provided in Section 6.04) an amount of money sufficient to repurchase on the
Business Day immediately preceding the Designated Event Repurchase Date all the
Notes to be repurchased on such date at the appropriate repurchase price,
together with accrued and unpaid Interest and Additional Amounts, if any, to,
but excluding, the Designated Event Repurchase Date, plus the Make Whole
Premium, if any; provided that if such payment is made on the Designated Event
Repurchase Date it must be received by the Trustee or paying agent, as the case
may be, by 10:00 a.m. New York City time, on such date. Payment for Notes
surrendered for repurchase (and not withdrawn) prior to the Designated Event
Expiration Time will be made promptly (but in no event more than five (5)
Business Days) following the later of (x) the Business Day immediately
following the Designated Event Repurchase Date, and (y) the time of book-entry
transfer or delivery of the Note surrendered for repurchase, by (i) mailing
checks for the amount payable to the holders of such Notes entitled thereto as
they shall appear in the Note Register (provided that the holder of Notes with
an aggregate principal amount in excess of $2,000,000 shall, at the written
election of such

30

 

holder, be paid by wire transfer of immediately available funds) or (ii)
on any Global Note by wire transfer of immediately available funds to the
account of the Depositary or its nominee.

     If on the Business Day immediately following the Designated Event
Repurchase Date the Trustee or other paying agent appointed by the Company, or
the Company if the Company is acting as the paying agent, holds money
sufficient to repurchase all the Notes or portions thereof that are to be
purchased as of the Designated Event Repurchase Date, then, on and after such
date (i) the Notes will cease to be Outstanding, (ii) Interest and Additional
Amounts, if any, 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 Notes has been made or the Notes have been delivered to the Trustee or
paying agent, other than the right to receive the repurchase price upon
delivery of the Notes.

     (f) [Reserved.]

     (g) The Company will comply with the provisions of Rule 13e-4, Rule 14e-1
and any other tender offer rules under the Exchange Act to the extent
applicable and file a Schedule TO or any other required schedule or form under
the Exchange Act to the extent then applicable in connection with the
repurchase rights of the holders of Notes in the event of a Designated Event.

     Section 3.06 . Repurchase of Notes by the Company at Option of the
Holder. Notes shall be purchased by the Company in cash pursuant to the terms
of the Notes at the option of the holder on each of November 15, 2009, November
15, 2014, and November 15, 2019 (each a “Repurchase Date”), at a purchase price
of 100% of the principal amount, plus any accrued and unpaid Interest and
Additional Amounts, if any, to, but excluding, the Repurchase Date; provided
that if such Repurchase Date falls after a record date and on or prior to the
corresponding interest payment date, then the Interest and Additional Amounts,
if any, payable on such interest payment date shall be paid to the holders of
record of the Notes at the close of business on the applicable record date
instead of the holders surrendering the Notes for repurchase. Repurchases of
Notes under this Section 3.06 shall be made, at the option of the holder
thereof, upon:

     (a) delivery to the Trustee (or other paying agent appointed by the
Company) by a holder of a duly completed and executed notice (the “Repurchase
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 that is twenty
(20) Business Days prior to the Repurchase Date until the close of business on
the Repurchase Date; and

     (b) delivery or book-entry transfer of the Notes to the Trustee (or other
paying agent appointed by the Company) at any time simultaneous to or after
delivery of the Repurchase Notice (together with all necessary endorsements) at
the Corporate Trust Office of the Trustee (or other paying agent appointed by
the

31

 

Company) in the Borough of Manhattan as provided in Section 6.02, such
delivery being a condition to receipt by the holder of the purchase price
therefor; provided that such purchase price shall be so paid pursuant to this
Section 3.06 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 Repurchase Notice.

     The Company shall purchase from the holder thereof, pursuant to this
Section 3.06, 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 purchase of all of a Note also apply to the purchase of such portion of
such Note.

     Upon presentation of any Note repurchased 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 portion of the Notes presented that
was not repurchased.

     Any purchase by the Company contemplated pursuant to the provisions of
this Section 3.06 shall be consummated by the delivery of the consideration to
be received by the holder promptly following the later of the Business Day
immediately following the Repurchase Date and the time of the book-entry
transfer or delivery of the Note.

     Notwithstanding anything herein to the contrary, any holder delivering to
the Trustee (or other paying agent appointed by the Company) the Repurchase
Notice contemplated by this Section 3.06 shall have the right to withdraw such
Repurchase Notice at any time prior to the close of business on the Repurchase
Date by delivery of a written notice of withdrawal to the Trustee (or other
paying agent appointed by the Company) in accordance with Section 3.08.

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

     Section 3.07 . Company Repurchase Notice.

     (a) The Notes to be repurchased on the Repurchase Date pursuant to Section
3.06 will be paid for in cash.

     At least three (3) Business Days before the Company Repurchase Notice
Date, the Company shall deliver an Officers’ Certificate to the Trustee
specifying:

     (i) the information required by Section 3.07(b) in the Company
Repurchase Notice, and

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     (ii) whether the Company desires the Trustee to give the Company
Repurchase Notice required by Section 3.07(b).

     (b) In connection with any repurchase of Notes, the Company shall, no less
than twenty (20) Business Days prior to the Repurchase Date (the “Company
Repurchase Notice Date”), give notice to holders at their addresses shown in
the Note Register setting forth information specified in this Section 3.07(b)
(the “Company Repurchase Notice”). The Company will also give notice to
beneficial owners as required by applicable law.

     The Company Repurchase Notice shall:

     (1) state the repurchase price and the Repurchase Date to which the
Company Repurchase Notice relates;

     (2) include a form of Repurchase Notice;

     (3) state the name and address of the Trustee (or other paying
agent or conversion agent appointed by the Company);

     (4) state that Notes must be surrendered to the Trustee (or other
paying agent appointed by the Company) to collect the purchase price;

     (5) if the Notes are then convertible, state that Notes as to which
a Repurchase Notice has been given may be converted only if the
Repurchase Notice is withdrawn in accordance with the terms of this
Indenture; and

     (6) state the CUSIP number of the Notes (if then generally in use).

The Company Repurchase Notice may be given by the Company or, at the Company’s
request, the Trustee shall give such Company Repurchase Notice in the Company’s
name and at the Company’s expense.

     (c) The Company will comply with the provisions of Rule 13e-4, Rule 14e-1
and any other tender offer rules under the Exchange Act to the extent
applicable and file a Schedule TO or any other required schedule or form under
the Exchange Act to the extent applicable in connection with the repurchase
rights of the holders of Notes.

     Section 3.08 . Effect of Repurchase Notice. Upon receipt by the Trustee
(or other paying agent appointed by the Company) of the Repurchase Notice
specified in Section 3.06, the holder of the Note in respect of which such
Repurchase Notice was given shall (unless such Repurchase Notice is validly
withdrawn) thereafter be entitled to receive solely the purchase price with
respect to such Note. Such purchase price shall be paid to such holder,
subject to receipt of funds and/or Notes by the Trustee (or other paying agent
appointed by the

33

 

Company), promptly following the later of (x) the Business Day immediately
following the Repurchase Date with respect to such Note (provided the holder
has satisfied the conditions in Section 3.06) and (y) the time of book entry
transfer or delivery of such Note to the Trustee (or other paying agent
appointed by the Company) by the holder thereof in the manner required by
Section 3.06. Notes in respect of which a Repurchase Notice has been given by
the holder thereof may not be converted pursuant to Article 17 hereof on or
after the date of the delivery of such Repurchase Notice unless such Repurchase
Notice has first been validly withdrawn.

     A Repurchase 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 Repurchase Notice at any time
prior to the close of business on the Repurchase Date, specifying:

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

     (b) 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, and

     (c) the principal amount, if any, of such Note that remains subject to the
original Repurchase Notice and that has been or will be delivered for purchase
by the Company.

     Section 3.09 . Deposit of Repurchase Price. (a) On or prior to the
Repurchase Date, the Company will deposit with the Trustee or with one or more
paying agents (or, if the Company is acting as its own paying agent, set aside,
segregate and hold in trust as provided in Section 6.04) an amount of money
sufficient to pay the aggregate purchase price of all the Notes or portions
thereof that are to be purchased as of the Business Day immediately following
the Repurchase Date; provided that if such payment is made on the Repurchase
Date it must be received by the Trustee or paying agent, as the case may be, by
10:00 a.m. New York City time, on such date.

     (b) If on the Business Day immediately following the Repurchase Date the
Trustee or other paying agent appointed by the Company, or the Company if the
Company is acting as the paying agent, holds cash sufficient to pay the
aggregate purchase price of all the Notes, or portions thereof that are to be
purchased as of the Repurchase Date, then, on and after such date (i) the Notes
will cease to be Outstanding, (ii) Interest and Additional Amounts, if any, 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 Notes has
been made or the Notes have been delivered to the Trustee or paying agent,
other than the right to receive the repurchase price upon delivery of the
Notes.

34

 

     Section 3.10 . Notes Repurchased in Part. Upon presentation of any Note
repurchased 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 portion of the Notes presented that was not repurchased.

     Section 3.11 . Repayment to the Company. The Trustee (or other paying
agent appointed by the Company) shall return to the Company any cash that
remains unclaimed, together with Interest, if any, and Additional Amounts, if
any, thereon, held by them for the payment of the repurchase price; provided
that to the extent that the aggregate amount of cash deposited by the Company
pursuant to Section 3.02, Section 3.05 and Section 3.09 exceeds the aggregate
redemption price or purchase price, as the case may be, of the Notes or
portions thereof that the Company is obligated to redeem or purchase as of the
redemption date, the Designated Event Repurchase Date or the Repurchase Date,
as the case may be, then, unless otherwise agreed in writing with the Company,
promptly after the redemption date, the Business Day following the Designated
Event Repurchase Date or the Business Day following the Repurchase Date, as the
case may be, the Trustee shall return any such excess to the Company together
with interest, if any, thereon.

     Section 3.12 . Acceleration; Payments To Noteholders. In the event of
the acceleration of the Notes because of an Event of Default, no payment or
distribution shall be made to the Trustee or any holder of Notes in respect of
the principal of, Interest on, or Additional Amounts, if any, on, the Notes
called for redemption in accordance with Section 3.02 or the Notes submitted
for repurchase in accordance with Section 3.05 or Section 3.06, as the case may
be, as provided in this Indenture, until such acceleration is rescinded in
accordance with the terms of this Indenture.

     Section 3.13 . No Sinking Fund. The Notes are not subject to redemption
through the operation of any sinking fund.

ARTICLE 4

SUBORDINATION OF NOTES

     Section 4.01 . Notes Subordinate to Senior Indebtedness. The Company
covenants and agrees, and each holder of a Note, whether upon original issue or
upon registration of transfer, assignment or exchange hereof, by his acceptance
thereof, likewise covenants and agrees, that, to the extent and in the manner
hereinafter set forth in this Article 4, the indebtedness represented by the
Notes and the payment of the principal amount and Interest and Additional
Amounts, if any, on all Notes and all other amounts and claims owing on and
with respect to each and all of the Notes (including, but not limited to, the
redemption price with respect to the Notes called for redemption in accordance
with Section 3.02 or the

35

 

repurchase price with respect to Notes submitted for repurchase in
accordance with Section 3.05 or Section 3.06, as the case may be, as provided
in this Indenture) and all obligations of the Company under this Indenture
(collectively, the “Subordinated Obligations”) are hereby expressly made
subordinate and junior in right of payment to the prior payment in full in cash
or other payment satisfactory to the holders of Senior Indebtedness of all
Senior Indebtedness and that said subordination is for the benefit of the
holders of Senior Indebtedness and they and or each of them severally may
enforce such subordination. The Notes will be pari passu in right of payment
to all Senior Subordinated Indebtedness of the Company and senior in right of
payment to all Subordinated Indebtedness of the Company.

     Section 4.02 . Payment Over of Proceeds upon Dissolution, Etc. In the
event of (a) any dissolution, insolvency or bankruptcy case or proceeding, or
any receivership, liquidation, reorganization or other similar case or
proceeding in connection therewith, relative to the Company or to its
creditors, as such, or to its assets, or (b) any liquidation, dissolution or
other winding up of the Company, whether voluntary or involuntary and whether
or not involving insolvency or bankruptcy, or (c) any assignment for the
benefit of creditors or any other marshaling of assets and liabilities of the
Company, then and in any such event the holders of Senior Indebtedness shall be
entitled to receive payment in full in cash or other payment satisfactory to
the holders of Senior Indebtedness of all amounts due or to become due on or in
respect of all Senior Indebtedness before the holders of the Notes are entitled
to receive any payment or distribution on account of the Subordinated
Obligations (except that holders of Notes may receive and retain Permitted
Junior Securities), and to that end the holders of Senior Indebtedness or their
representative or representatives or the trustee or trustees under any
indenture under which any instruments evidencing any of such Senior
Indebtedness may have been issued, shall be entitled to receive from the
liquidating trustee or agent or other person making such payment or
distribution, whether a trustee in bankruptcy, a receiver or liquidating
trustee or otherwise, ratably according to the aggregate amounts remaining
unpaid on account of the Senior Indebtedness held or represented by each, to
the extent necessary to make payment in full in cash of all Senior Indebtedness
remaining unpaid, for application to the payment thereof, any payment or
distribution of any kind or character, whether in cash, property or securities,
which may be payable or deliverable in respect of the Subordinated Obligations
in any such case, proceeding, dissolution, liquidation or other winding up or
event, assignment or marshalling (except that holders of Notes may receive and
retain Permitted Junior Securities).

     The consolidation of the Company with, or the merger of the Company into,
another Person or the liquidation or dissolution of the Company following the
conveyance or transfer of its properties and assets substantially as an
entirety to another Person upon the terms and conditions set forth in Article
14 shall not be deemed a dissolution, winding up, liquidation, reorganization,
assignment for

36

 

the benefit of creditors or marshaling of assets and liabilities of the
Company for the purposes of this Section 4.02 if the Person formed by such
consolidation or into which the Company is merged or which acquires by
conveyance or transfer such properties and assets substantially as an entirety,
as the case may be, shall, as a part of such consolidation, merger, conveyance
or transfer, comply with the conditions set forth in Article 14.

     Section 4.03 . No Payment When Senior Indebtedness in Default.

     (a) The Company may not make any payment of or distribution with respect
to the Subordinated Obligations nor may the Company acquire or redeem any Notes
if (i) a payment default on any Senior Indebtedness has occurred with respect
thereto (unless and until such payment default shall have been cured or waived
in writing by the holders of such Senior Indebtedness); or (ii) a default
(other than a default referred to in the preceding clause (i)) on any Senior
Indebtedness occurs and is continuing that permits holders of such Senior
Indebtedness to accelerate the maturity thereof and either the default is the
subject of judicial proceedings or the Trustee receives a written notice of
default thereof from (A) the administrative agent for the lenders under the
Senior Credit Agreement or (B) any Person who may give such notice pursuant to
the instrument evidencing or document governing such Senior Indebtedness (a
“Senior Indebtedness Default Notice”); provided, however, that with respect to
the preceding clause (B) only a holder of more than $10,000,000 of Senior
Indebtedness (or a representative of holders who collectively hold more than
$10,000,000 of Senior Indebtedness) can provide a Senior Indebtedness Default
Notice. If the Company receives a Senior Indebtedness Default Notice, then a
similar notice received within ninety (90) days thereafter relating to the same
default on the same issue of Senior Indebtedness shall not be effective for
purposes of this Section 4.03.

     The Company may resume payment on the Notes and may redeem or acquire
Notes for cash if and when (x) the default referred to in clause (i) of the
preceding paragraph above is cured or waived in writing or ceases to exist; or
(y) in the case of a default referred to in clause (ii) of the preceding
paragraph, the earlier of (A) the date on which such a default as described in
clause (ii) is cured, waived or ceases to exist or (B) 179 days after the
receipt by the Company of the Senior Indebtedness Default Notice, in each case,
so long as this Article 4 otherwise permits the payment, redemption or
acquisition at that time.

     (b) In the event of an acceleration of the Notes as a result of an Event
of Default, then and in such event the Company shall promptly notify holders of
Senior Indebtedness of such acceleration. The Company may not make any payment
on, or distribution with respect to, the Notes until the earlier of (i) the
passage of 120 or more days after such acceleration occurs or (ii) the payment
in full in cash or other payment satisfactory to the holders of Senior
Indebtedness of all Senior Indebtedness, and may thereafter pay the Notes if
this Article 4 permits the payment or distribution at that time.

37

 

     (c) In the event that, notwithstanding the foregoing provisions, any
payment or distribution of any kind or character, whether in cash, property or
securities (including, without limitation, by way of setoff or otherwise),
prohibited by this Article 4, shall be received by the Trustee or the holders
of the Notes before all Senior Indebtedness is paid in full in cash or other
payment satisfactory to the holders of such Senior Indebtedness, such payment
or distribution shall be held in trust for the benefit of and shall be paid
over or delivered to the holders of Senior Indebtedness or their representative
or representatives, or to the trustee or trustees under any indenture pursuant
to which any instruments evidencing any Senior Indebtedness may have been
issued, as their respective interests may appear for application to the payment
of all Senior Indebtedness remaining unpaid to the extent necessary to pay all
Senior Indebtedness in full in cash or other payment satisfactory to the
holders of such Senior Indebtedness, after giving effect to any concurrent
payment or distribution, or provision therefor, to or for the holders of such
Senior Indebtedness.

     Section 4.04 . Payment Permitted If No Default. Nothing contained in
this Article 4 or any other provision relating to subordination elsewhere in
this Indenture or in any of the Notes shall prevent the Company, at any time
except in the circumstances described in Section 4.02 and Section 4.03, from
making payments at any time of the principal amount of the Notes, Interest,
Additional Amounts, if any, the redemption price with respect to the Notes to
be called for redemption in accordance with Section 3.02 or the repurchase
price with respect to Notes submitted for repurchase in accordance with Section
3.05 or Section 3.06, as the case may be, as provided in this Indenture.

     Section 4.05 . Subrogation to Rights of Holders of Senior Indebtedness.
Subject to the payment in full of all Senior Indebtedness in cash, and until
the Notes are paid in full, the holders of the Notes shall be subrogated
(equally and ratably with the holders of all Senior Subordinated Indebtedness)
to the rights of the holders of such Senior Indebtedness to receive payments
and distributions of cash, property and securities applicable to the Senior
Indebtedness to the extent that payments and distributions otherwise payable to
holders of Notes have been applied to the payment of Senior Indebtedness as
provided by this Article 4. For purposes of such subrogation, no payments or
distributions to the holders of the Senior Indebtedness of any cash, property
or securities to which the holders of the Notes or the Trustee would be
entitled, except for the provisions of this Article 4, and no payments over
pursuant to the provisions of this Article 4 to the holders of Senior
Indebtedness by holders of the Notes or the Trustee, shall, as among the
Company, its creditors other than holders of Senior Indebtedness and the
holders of the Notes, be deemed to be a payment or distribution by the Company
to or on account of the Notes.

     Section 4.06 . Provisions Solely To Define Relative Rights. The
provisions of this Article 4 are and are intended solely for the purpose of
defining the relative rights of the holders of the Notes on the one hand and
the holders of Senior Indebtedness on the other hand. Nothing contained in this
Article 4 or elsewhere

38

 

in this Indenture or in the Notes is intended to or shall (a) impair, as
among the Company, its creditors other than holders of Senior Indebtedness and
the holders of the Notes, the obligation of the Company, which is absolute and
unconditional, to pay to the holders of the Notes the principal amount of the
Notes, Interest, Additional Amounts, if any, the redemption price with respect
to the Notes to be called for redemption in accordance with Section 3.02 or the
repurchase price with respect to Notes submitted for repurchase in accordance
with Section 3.05 or Section 3.06, as the case may be, as provided in this
Indenture as and when the same shall become due and payable in accordance with
their terms; or (b) affect the relative rights against the Company of the
holders of the Notes and creditors of the Company other than the holders of
Senior Indebtedness; or (c) prevent the Trustee or the holder of any Note from
exercising all remedies otherwise permitted by applicable law upon default
under this Indenture, subject to the rights, if any, under this Article 4 of
the holders of Senior Indebtedness to receive cash, property and securities
otherwise payable or deliverable to the Trustee or such holder. If the Company
fails, as a result of this Article 4, to pay to the holders of the Notes the
principal amount of the Notes, Interest, Additional Amounts, if any, the
redemption price with respect to the Notes to be called for redemption in
accordance with Section 3.02 or the repurchase price with respect to Notes
submitted for repurchase in accordance with Section 3.05 or Section 3.06, as
the case may be, as provided in this Indenture as and when the same shall
become due and payable in accordance with their terms, such failure shall still
constitute a Default or an Event of Default.

     Section 4.07 . Trustee To Effectuate Subordination. Each holder of a
Note by his acceptance thereof authorizes and directs the Trustee on his behalf
to take such action as may be necessary or appropriate to effectuate the
subordination provided in this Article 4 and appoints the Trustee his
attorney-in-fact for any and all such purposes.

     Section 4.08 . No Waiver of Subordination Provisions. No right of any
present or future holder of any Senior Indebtedness to enforce subordination as
herein provided shall at any time in any way be prejudiced or impaired by any
act or failure to act on the part of the Company or by any act or failure to
act, in good faith, by any such holder, or by any non-compliance by the Company
with the terms, provisions and covenants of this Indenture, regardless of any
knowledge thereof any such holder may have or be otherwise charged with.

     Without in any way limiting the generality of the foregoing paragraph, the
holders of Senior Indebtedness may, at any time and from time to time, without
the consent of or notice to the Trustee or the holders of the Notes, without
incurring responsibility to the holders of the Notes and without impairing or
releasing the subordination provided in this Article 4 or the obligations
hereunder of the holders of the Notes to the holders of Senior Indebtedness, do
any one or more of the following: (i) change the manner, place or terms of
payment or extend the time of payment of, or renew, exchange, increase or
alter, Senior Indebtedness, or otherwise amend, modify or supplement in any
manner or waive

39

 

any term relating to Senior Indebtedness or any instrument evidencing the
same or any agreement under which Senior Indebtedness or any security thereof
or guarantee thereof is outstanding, including, without limitation, any
modifications to interest rates or fees or dates of payment of interest, fees
or principal or to financial or other covenants or events of default, as well
as any release of any collateral, or other waiver or forbearance; (ii) sell,
exchange, release, surrender, realize upon, enforce or otherwise deal with any
property pledged, mortgaged or otherwise securing Senior Indebtedness; (iii)
release any Person liable in any manner for the collection of Senior
Indebtedness; (iv) exercise or refrain from exercising any rights against the
Company and any other Person; (v) apply any and all sums received from time to
time to the Senior Indebtedness; provided that if any Senior Indebtedness is
amended to provide that it shall be subordinated to any other Senior
Indebtedness, such amended Senior Indebtedness shall no longer be considered
Senior Indebtedness for purposes of this Article 4.

     The provisions of this Article 4 shall continue to be effective or be
reinstated as the case may be if at any time any payment of the Senior
Indebtedness is rescinded or must otherwise be returned by the holder thereof
upon the insolvency, bankruptcy or reorganization of the Company or otherwise,
all as though such payment had not been made.

     Section 4.09 . Notice to Trustee. The Company shall give prompt written
notice to a Responsible Officer of the Trustee of any fact known to the Company
which would prohibit the making of any payment to or by the Trustee in respect
of the Notes. Notwithstanding the provisions of this Article 4 or any other
provision of this Indenture, the Trustee shall not be charged with knowledge of
the existence of any facts which would prohibit the making of any payment to or
distribution by the Trustee in respect of the Notes, unless and until a
Responsible Officer of the Trustee shall have received written notice thereof
from the Company or a holder of Senior Indebtedness or from any trustee
therefor; and, prior to the receipt of any such written notice, the Trustee,
subject to the provisions of Section 9.01, shall be entitled in all respects to
assume that no such facts exist; provided, however, that if the Trustee shall
not have received the notice provided for in this Section 4.09 at least one (1)
Business Day prior to the date upon which by the terms hereof any money may
become payable for any purpose, then, anything herein contained to the contrary
notwithstanding, the Trustee shall have full power and authority to receive
such money and to apply the same to the purpose for which such money was
received and shall not be affected by any notice to the contrary which may be
received by it within one (1) Business Day prior to such date.

     Subject to the provisions of Section 9.01, the Trustee shall be entitled
to rely conclusively on the delivery to it of a written notice by a Person
representing himself to be a holder of Senior Indebtedness (or a trustee
therefor) to establish that such notice has been given by a holder of Senior
Indebtedness (or a trustee therefor). In the event that the Trustee determines
in good faith that further evidence is required with respect to the right of
any Person as a holder of Senior

40

 

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

     Section 4.10 . Reliance on Judicial Order or Certificate of Liquidating
Agent. Upon any payment or distribution of assets of the Company referred to
in this Article 4, the Trustee, subject to the provisions of Section 9.01, and
the holders of the Notes shall be entitled to conclusively rely upon any order
or decree entered by any court of competent jurisdiction in which such
insolvency, bankruptcy, receivership, liquidation, reorganization, dissolution,
winding up or similar case or proceeding is pending, or a certificate of the
trustee in bankruptcy, receiver, liquidating trustee, custodian, assignee for
the benefit of creditors, agent or other Person making such payment or
distribution, delivered to the Trustee or to the holders of Notes, for the
purpose of ascertaining the Persons entitled to participate in such payment or
distribution, the holders of the Senior Indebtedness and other indebtedness of
the Company, the amount thereof or payable thereon, the amount or amounts paid
or distributed thereon and all other facts pertinent thereto or to this Article
4.

     Section 4.11 . Trustee Not Fiduciary for Holders of Senior Indebtedness.
The Trustee shall not be deemed to owe any fiduciary duty to the holders of
Senior Indebtedness and (subject to Section 4.09 hereof) shall not be liable to
any such holders if it shall in good faith mistakenly pay over or distribute to
holders of Notes or to the Company or to any other Person cash, property or
securities to which any holders of Senior Indebtedness shall be entitled by
virtue of this Article 4 or otherwise.

     Section 4.12 . Rights of Trustee as Holder of Senior Indebtedness;
Preservation of Trustee’s Rights. The Trustee in its individual capacity shall
be entitled to all the rights set forth in this Article 4 with respect to any
Senior Indebtedness which may at any time be held by it, to the same extent as
any other holder of Senior Indebtedness, and nothing in this Indenture shall
deprive the Trustee of any of its rights as such holder.

     Nothing in this Article 4 shall apply to claims of, or payments to, the
Trustee under or pursuant to Section 9.06.

     Section 4.13 . Article Applicable to Paying Agents. In case at any time
any paying agent other than the Trustee shall have been appointed by the
Company and be then acting hereunder, the term “Trustee” as used in this
Article 4 shall in such case (unless the context otherwise requires) be
construed as

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extending to and including such paying agent within its meaning as fully
for all intents and purposes as if such paying agent were named in this Article
4 in addition to or in place of the Trustee; provided, however, that Section
4.12 shall not apply to the Company or any Affiliate of the Company if it or
such Affiliate acts as paying agent.

     Section 4.14 . No Senior Subordinated Indebtedness. The Company shall
not, directly or indirectly, create, incur, issue, assume, guarantee or
otherwise become directly or indirectly liable, contingently or otherwise, with
respect to any indebtedness that is subordinate or junior in right of payment
to any Senior Indebtedness and senior in right of payment to the Subordinate
Obligations.

ARTICLE 5

MAKE WHOLE PREMIUM

     Section 5.01 . Make Whole Premium. (a) If a Make Whole Event occurs on
or prior to November 15, 2009, the Company shall pay the Make Whole Premium to
holders of Notes who convert their Notes in connection with such Make Whole
Event pursuant to Section 17.01(c) and to holders of Notes who tender their
Notes for repurchase in connection with such Make Whole Event pursuant to
Section 3.05. The Make Whole Premium shall be paid on the Business Day
immediately following the relevant Designated Event Repurchase Date, in either
case, and shall be paid solely in shares of the Common Stock (other than cash
paid in lieu of fractional shares) or in the same form of consideration into
which all or substantially all of the shares of Common Stock have been
converted in connection with such Make Whole Event, as described below. No
Make Whole Premium shall be paid if the Stock Price (as defined below) is less
than $30.41 per share or greater than $130.00 per share. The Make Whole
Premium will be in addition to, and not in substitution for, any cash,
securities, or other assets otherwise due to holders of Notes upon conversion
or repurchase as described in this Indenture. The Company shall give notice of
the anticipated effective date of any Make Whole Event to the holders and the
trustee on a date (the “Effective Date Notice”) that is at least ten (10)
Trading Days prior to such anticipated effective date.

     (a) The Make Whole Premium shall be determined as follows:

     (i) “Effective Date” means the date that the relevant Make Whole
Event becomes effective.

     (ii) “Stock Price” means the price paid (or deemed to be paid) per
share of Common Stock in the transaction constituting the relevant Make
Whole Event (in the case of a Make Whole Event referred to in clause (a)
of the definition thereof) or the price per share of the Common Stock
prior to the Effective Date of the relevant Make Whole Event (in the

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case of a Make Whole Event referred to in clause (b) of the
definition thereof), determined as follows:

     (A) if holders of the Common Stock receive only cash in the
Make Whole Event (in the case of a Make Whole Event referred to
in clause (a) of the definition thereof), the Stock Price shall
be the cash amount paid per share of Common Stock; or

     (B) in all other events, the Stock Price shall be the
average Closing Price of the Common Stock for the ten
consecutive Trading Days immediately prior to but not including
the Effective Date for the relevant Make Whole Event.

     (iii) The Make Whole Percentage (the “Make Whole Percentage”) shall
be the percentage set forth on the table below (the “Make Whole
Percentage Table”) for the relevant Stock Price and Effective Date:

Make Whole Percentage Upon a Make Whole Event (% of Face Value)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Stock Price

	Effective Date
	 	$30.41
	 	$32.50
	 	$35.00
	 	$40.00
	 	$45.00
	 	$50.00
	 	$60.00
	 	$70.00
	 	$80.00
	 	$90.00
	 	$100.00
	 	$110.00
	 	$120.00
	 	$130.00

	November 9, 2004
	 	 	0.00	%	 	 	4.27	%	 	 	8.61	%	 	 	17.92	%	 	 	15.82	%	 	 	13.90	%	 	 	11.12	%	 	 	9.30	%	 	 	8.04	%	 	 	7.12	%	 	 	6.41	%	 	 	5.85	%	 	 	5.38	%	 	 	4.98	%
	November 15, 2005
	 	 	0.65	%	 	 	4.07	%	 	 	8.13	%	 	 	17.01	%	 	 	14.62	%	 	 	12.51	%	 	 	9.58	%	 	 	7.75	%	 	 	6.56	%	 	 	5.74	%	 	 	5.14	%	 	 	4.68	%	 	 	4.31	%	 	 	3.99	%
	November 15, 2006
	 	 	0.24	%	 	 	3.65	%	 	 	7.35	%	 	 	15.69	%	 	 	12.95	%	 	 	10.65	%	 	 	7.60	%	 	 	5.87	%	 	 	4.83	%	 	 	4.17	%	 	 	3.72	%	 	 	3.40	%	 	 	3.14	%	 	 	2.92	%
	November 15, 2007
	 	 	0.0	%	 	 	2.93	%	 	 	6.13	%	 	 	13.76	%	 	 	10.61	%	 	 	8.12	%	 	 	5.11	%	 	 	3.63	%	 	 	2.88	%	 	 	2.46	%	 	 	2.21	%	 	 	2.03	%	 	 	1.90	%	 	 	1.78	%
	November 15, 2008
	 	 	0.0	%	 	 	1.58	%	 	 	4.02	%	 	 	10.57	%	 	 	6.93	%	 	 	4.39	%	 	 	1.95	%	 	 	1.11	%	 	 	0.85	%	 	 	0.75	%	 	 	0.70	%	 	 	0.66	%	 	 	0.62	%	 	 	0.59	%
	November 15, 2009
	 	 	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	%

The exact Stock Price and Effective Dates may not be set forth on the Make
Whole Percentage Table, in which case, if the Stock Price is between two Stock
Prices on the Make Whole Percentage Table or the Effective Date is between two
Effective Dates on the Make Whole Percentage Table, the Make Whole Percentage
shall be determined by straight-line interpolation between Make Whole
Percentage set forth for the higher and lower Stock Prices and the two
Effective Dates, as applicable, based on a 365-day year. The Stock Prices set
forth in the Make Whole Percentage Table are subject to adjustment pursuant to
Section 5.02.

     (iv) “Make Whole Premium” means the amount per $1,000 principal
amount of Notes equal to:

     (A) if the Effective Date is after November 15, 2009, $0;

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     (B) if the Stock Price is less than $30.41 per share
(subject to adjustment pursuant to Section 5.02) (the “Stock
Price Threshold”), $0;

     (C) if the Stock Price is greater than $130.00 per share
(subject to adjustment pursuant to Section 5.02) (the “Stock
Price Cap”), $0; and

     (D) otherwise, the dollar amount equal to the relevant Make
Whole Percentage, times, $1,000.

     (c) The Company shall pay the Make Whole Premium solely in shares of
Common Stock (other than cash paid in lieu of fractional shares) or in the same
form of consideration into which all or substantially all of the shares of
Common Stock have been converted in connection with the relevant Make Whole
Event (except that the Company will pay cash in lieu of fractional interests in
any security or other property delivered in connection with such Make Whole
Event (in the case of a Make Whole Event referred to in clause (a) of the
definition thereof)). If holders of Common Stock receive or have the right to
receive more than one form of consideration in connection with such Make Whole
Event, then for purposes of the foregoing, the forms of consideration in which
the Make Whole Premium will be paid will be in proportion to the relative
values, determined as described in Section 5.01(d) below, of the different
forms of consideration paid to holders of Common Stock in connection with such
Make Whole Event.

     (d) The value of the shares of Common Stock or other consideration for
purposes of determining the number of shares of Common Stock or other
consideration to be issued or delivered, as the case may be, in respect of the
Make Whole Premium shall be calculated as follows:

     (i) securities that are traded on a United States national
securities exchange or approved for quotation on Nasdaq or any similar
system of automated dissemination of quotations of securities prices
shall be valued at 98% of the average Closing Price or last sale price,
as the case may be, for the ten consecutive Trading Days immediately
prior to but excluding the relevant Designated Event Repurchase Date,

     (ii) other securities, assets or property (other than cash) that
holders will have the right to receive shall be valued based on 98% of
the average of the Fair Market Value of such securities, assets or
property (other than cash) as determined three Business Days immediately
prior to the relevant Designated Event Repurchase Date by two
independent nationally recognized investment banks selected by the
Trustee, and

     (iii) 100% of any cash.

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Notwithstanding the forgoing, in no event shall the value of each share of
Common Stock be less than 50% of the Stock Price used to determine the amount
of the Make Whole Premium. In no event will the total number of shares of
Common Stock issuable upon conversion of the Notes exceed 32.8839 per $1,000
principal amount of Notes, subject to adjustment in the same manner as set
forth in Section 17.05.

     (e) A calculation agent appointed from time to time by the Company shall,
on behalf of and on request by the Company, calculate the Stock Price, the Make
Whole Percentage and Make Whole Premium with respect to such Stock Price, based
on the Effective Date specified by the Company, and shall deliver its
calculation of the Stock Price, Make Whole Percentage and Make Whole Premium to
the Company and the Trustee within three Business Days of the request by the
Company or the Trustee. In addition, the Calculation Agent shall, on behalf of
and upon request by the Company or the Trustee make the determinations
described in Section 5.01(d) above and deliver its calculations to the Company
or the Trustee by 9:00 p.m., New York City time, on the day prior to the
relevant Designated Event Repurchase Date. The Company, or at the Company’s
request, the Trustee in the name and at the expense of the Company, (X) shall
notify the holders of the Stock Price and Make Whole Premium per $1,000
principal amount of Notes with respect to a Make Whole Event as part of the
relevant Designated Event Notice and (Y) shall notify the holders, by
registered first-class mail, sent promptly upon the opening of business on the
relevant Designated Event Repurchase Date of the number of shares of Common
Stock (or such other securities, assets or property (including cash) into which
all or substantially all of the shares of Common Stock have been converted as
of the Effective Date as described above) to be paid in respect of the Make
Whole Premium in connection with such Make Whole Event, in the manner provided
in this Indenture, and the Company shall also publicly announce such
information. Any notice so given shall be conclusively presumed to have been
duly given, whether or not the holder receives such notice. The Company shall
verify, in writing, all calculations made by the calculation agent pursuant to
this Section 5.01(e).

     (f) On or prior to the Business Day immediately following the relevant
Designated Event Repurchase Date, the Company shall deposit with the Trustee or
with one or more paying agents a number of shares of Common Stock (or in the
case of a Make Whole Event in which all or substantially all of the shares of
Common Stock have been, as of the Effective Date, converted into the right to
receive securities or other assets or property (including cash), an amount of
such other securities or other assets or property (including cash)) sufficient
to pay the Make Whole Premium with respect to all Notes to be repurchased on
such date and all Notes converted in connection with such Make Whole Event;
provided that if such deposit is made on the Business Day immediately following
the relevant Designated Event Repurchase Date it must be received by the
Trustee or paying agent, as the case may be, by 10:00 a.m., New York City time,
on such

45

 

date. Payment of the Make Whole Premium for Notes surrendered for
repurchase (and not withdrawn) within the period described in Section 3.05 or
surrendered for conversion within the period described in Section 17.01(c),
shall be made promptly on the Business Day immediately following the relevant
Designated Event Repurchase Date by mailing checks in respect of cash (or if
the Notes are represented by a Global Note, by wire transfer of immediately
available funds to the Depositary or its nominee) and otherwise delivering
entitlements to securities, other assets or property for the amount payable to
the holders of such Notes entitled thereto as they shall appear in the register
kept by the Notes Registrar.

     Section 5.02 . Adjustments Relating To Make Whole Premium. Whenever the
Conversion Rate shall be adjusted from time to time by the Company pursuant to
Section 17.05, the Stock Price Threshold and the Stock Price Cap shall be
adjusted and each of the Stock Prices set forth in the Make Whole Percentage
Table shall be adjusted. The adjusted Stock Price Threshold, Stock Price Cap
and Stock Prices set forth in the Make Whole Percentage Table shall equal the
Stock Price Threshold, Stock Price Cap and such Stock Prices, as the case may
be, immediately prior to such adjustment multiplied by a fraction, the
numerator of which is the Conversion Rate immediately prior to the adjustment
giving rise to such adjustment and the denominator of which is the Conversion
Rate so adjusted.

ARTICLE 6

PARTICULAR COVENANTS OF THE COMPANY

     Section 6.01 . Payment of Principal, Interest and Additional Amounts.
The Company covenants and agrees that it will duly and punctually pay or cause
to be paid the principal of (including the redemption price upon redemption or
the repurchase price upon repurchase, in each case pursuant to Article 3),
Interest on, and Additional Amounts, if any, 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, redemption or repurchase 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 or the
corporate trust office of the Trustee in The Borough of Manhattan, which office
is located at: The Bank of

46

 

New York, 101 Barclay Street, Fl. 21W, New York, NY 10286, Attention:
Corporate Trust Department.

     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 each of the Corporate Trust
Office and the office of agency of the Trustee in The Borough of Manhattan
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.

     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, Interest on, or Additional Amounts, if any,
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, Interest on, and Additional Amounts, if any, 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.

47

 

     The Company shall, on or before each due date of the principal of,
Interest on, or Additional Amounts, if any, on, the Notes, deposit with the
paying agent a sum (in funds that are immediately available on the due date for
such payment) sufficient to pay such principal, Interest or Additional Amounts,
as the case may be, 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, Interest on, or Additional Amounts,
if any, 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, Interest or
Additional Amounts 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, Interest on,
or Additional Amounts, if any, 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.

     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.

     Section 6.05 . Existence. Subject to Article 14, the Company will do or
cause to be done all things necessary to preserve and keep in full force and
effect its corporate existence.

     Section 6.06 . Rule 144A Information Requirement. Within the period
prior to the expiration of the holding period applicable to sales 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 that 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,

48

 

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 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 6.07 . 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 that would prohibit or
forgive the Company from paying all or any portion of the principal of,
Interest on, or Additional Amounts, if any, on, the Notes as contemplated
herein, wherever enacted, now or at any time hereafter in force, or that 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 6.08 . 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 the fiscal year ended October 30, 2004), a
certificate signed by either the principal executive officer, president,
principal financial officer or principal accounting officer of the Company,
stating whether or not to the knowledge of the signer thereof the Company is in
default in the performance and observance of any of the terms, provisions and
conditions of this Indenture (without regard to any period of grace or
requirement of notice provided hereunder) and, if the Company shall be in
default, specifying all such defaults and the nature and the status thereof of
which the signer may have knowledge.

     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 6.08 shall be delivered
to a Responsible Officer of the Trustee at its Corporate Trust Office.

     Section 6.09 . Additional Amounts Notice. In the event that the Company
is required to pay Additional Amounts to holders of Notes pursuant to the
Registration Rights Agreement, the Company will provide written notice of such
obligation (the “Additional Amounts Notice”) to the Trustee within fifteen (15)

49

 

days of such obligation arising, and the Additional Amounts Notice shall
set forth the amount of such Additional Amounts to be paid by the Company. The
Trustee shall not at any time be under any duty or responsibility to any holder
of Notes to determine the Additional Amounts, or with respect to the nature,
extent or calculation of the amount of Additional Amounts when made, or with
respect to the method employed in such calculation of the Additional Amounts.

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 May 1 and November 1 in each year beginning
with May 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.

     (a) 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.

     (b) 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

50

 

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), and transmit, or cause the Trustee to
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 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 the principal of any of the Notes as and
when the same shall become due and payable either at maturity or in connection
with any redemption or repurchase, by acceleration or otherwise; or

     (b) default in the Company’s obligation to deliver Common Stock, cash or
other property following the exercise by the holder of the Notes of the right
to convert such Notes pursuant to and in accordance with Article 17; or

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     (c) default in the Company’s obligation to pay the Make Whole Premium, if
any, when due upon conversion or repurchase of the Notes; or

     (d) default in the payment of any installment of Interest or Additional
Amounts 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

     (e) default in the Company’s obligation to provide a Designated Event
Notice as provided in Section 3.05; or

     (f) [Reserved.];

     (g) default in the payment of indebtedness for borrowed money, when due at
stated maturity or upon acceleration after the expiration of any applicable
grace period, by the Company or any Subsidiary of the Company, where the
aggregate principal amount with respect to which the default has occurred
exceeds $10,000,000 and such indebtedness has not been discharged or such
acceleration has not been rescinded or annulled within a period of thirty (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;
or

     (h) any final judgments or decree for the payment of money in excess of
$10,000,000 is entered against the Company, or any Subsidiary of the Company,
remains outstanding for a period of 15 days following entry of such judgment
and is not discharged, bonded, waived or stayed within 15 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 twenty-five percent (25%) in aggregate principal amount
of the Notes at the time Outstanding determined in accordance with Section
10.04; or

     (i) default in the performance by the Company of 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 ninety (90) 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 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

     (j) 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

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Company, or shall consent to any such relief or to the 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 be unable to pay its debts as they
become due; or

     (k) 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 ninety
(90) consecutive days;

then, and in each and every such case (other than an Event of Default specified
in Section 8.01(j) or 8.01(k)), 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 all the Notes and the Interest and Additional
Amounts, if any, accrued and unpaid 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(j)
or 8.01(k) occurs, the principal of all the Notes and the Interest and
Additional Amounts, if any, accrued and unpaid 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
Interest and Additional Amounts, if any, upon all Notes and the principal of
any and all Notes that shall have become due otherwise than by acceleration
(with interest on overdue installments of Interest and Additional Amounts, if
any, (to the extent that payment of such interest is enforceable under
applicable law) and on such principal 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 accrued and unpaid Interest and Additional
Amounts, if any, on Notes that 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 and annulment shall extend to or
shall affect any subsequent default or Event of Default. The Company shall
notify in writing a Responsible

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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 Additional Amounts 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 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 or repurchase, by acceleration 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, Interest and Additional Amounts, if
any, as the case may be, with interest upon the overdue principal and (to the
extent that payment of such interest is enforceable under applicable law) upon
the overdue installments of Interest and Additional Amounts, if any, at the
rate borne by the Notes 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 Interest and Additional
Amounts, 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

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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 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, Interest and Additional
Amounts, 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 reasonable 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 that 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

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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;

     SECOND: Subject to the provisions of Article 4, in case the principal of
the Outstanding Notes shall not have become due and be unpaid, to the payment
of Interest and Additional Amounts, if any, on the Notes in default in the
order of the maturity of the installments of such Interest and Additional
Amounts, if any, with interest (to the extent that such interest has been
collected by the Trustee) upon the overdue installments of Interest and
Additional Amounts, if any, at the rate borne by the Notes, such payments to be
made ratably to the Persons entitled thereto;

     THIRD: Subject to the provisions of Article 4, 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, Interest and Additional Amounts, if any, with interest on
the overdue principal and (to the extent that such interest has been collected
by the Trustee) upon overdue installments of Interest and Additional Amounts,
if any, 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, Interest and Additional Amounts, if any,
without preference or priority of principal over Interest or Additional
Amounts, if any, or of Interest over principal or Additional Amounts, if any,
or Additional Amounts, if any, over principal or Interest, or of any
installment of Interest over any other installment of Interest, or of any
installment of Additional Amounts over any other installment of Additional
Amounts, or of any Note over any other Note, ratably to the aggregate of such
principal and accrued and unpaid Interest and Additional Amounts, if any; and

     FOURTH: Subject to the provisions of Article 4, to the payment of the
remainder, if any, to the Company or as a court shall direct in writing.

     Section 8.04 . Proceedings by Noteholder. No holder of any Note 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 (i) such holder previously shall have given to the
Trustee written notice of an Event of Default and of the continuance thereof,
as hereinbefore provided, (ii) holders of

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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, (iii) no direction inconsistent with such written request
shall have been given to the Trustee pursuant to Section 8.07 during the sixty
(60) day period after its receipt of such notice, request and offer of
indemnity, and (iv) the Trustee for such sixty day period shall have failed to
institute any such action, suit or proceeding; 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 holders
of Notes 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 holders of Notes (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 holder of any Note to receive payment of the
principal of (including the redemption price or repurchase price upon
redemption or repurchase pursuant to Article 3), and accrued and unpaid
Interest and Additional Amounts, if any, on such Note, on or after the
respective due dates expressed in such Note or in the event of redemption or
repurchase, 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 holder.

     Anything in this Indenture or the Notes to the contrary notwithstanding,
the holder of any Note, without the consent of either the Trustee or the holder
of any other Note, 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.

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     Section 8.06 . Remedies Cumulative And Continuing. Except as provided in
Section 2.06, all powers and remedies given by this Article 8 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 holders of the Notes, 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 holder of any of the Notes 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 that is not inconsistent with such direction,
(c) the Trustee may decline to take any action that would benefit some
Noteholder 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 (u) a default in the payment
of Interest on, Additional Amounts, if any, on, or the principal of, the Notes,
(v) a failure by the Company to convert any Notes pursuant to Article 17, (w) a
default in the payment of the redemption price pursuant to Article 3, (x) a
default in the payment of the repurchase price pursuant to Article 3, (y) a
default in the payment of the Make Whole Premium when due; or (z) a default in
respect of a covenant or provisions hereof that 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, 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. 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.

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     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, Interest on, Additional amounts, if any,
on, or the Make Whole Premium, if any, with respect to, 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 holder of any Note 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 (10%) 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, Interest on, or Additional
Amounts, if any, 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 17.

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 that 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 that 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, gross negligence or 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 that 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 any 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;

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     (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

     (g) the Trustee shall not be deemed to have knowledge of any Event of
Default hereunder unless it shall have been notified in writing of such 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, debenture, 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 that
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, debenture or
other

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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 expense of the Company and shall incur no
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 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; and

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

     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.

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     Section 9.05 . Monies to Be Held in Trust. 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 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 be attributable to its own negligence,
willful misconduct or bad faith. The Company also covenants to indemnify the
Trustee and any predecessor Trustee (or 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 franchise taxes
and taxes based on the income of the Trustee) incurred without negligence,
willful misconduct 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) of liability in connection with the exercise or
performance of any of its or their powers or duties hereunder. If the Company
fails to compensate or indemnify the Trustee and to pay or reimburse the
Trustee for expenses, disbursements and advances under this Section 9.06, the
Trustee’s claim 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(j) or Section 8.01(k) 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.

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     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 that 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
$50,000,000 (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 at least
$50,000,000). 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.

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     (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 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 that 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 only upon acceptance of appointment by the successor trustee
as provided in Section 9.11.

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     (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.

     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.

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     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 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

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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, Interest on, and Additional Amounts, if any, on, such Note, for
conversion of such Note and for all other purposes; and neither the Company nor
the Trustee nor any authenticating agent 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
that 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 that a Responsible Officer knows are so owned shall be so
disregarded. Notes so owned that 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

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principal amount of the Notes specified in this Indenture in connection
with such action, any holder of a Note that 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 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.

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     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 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

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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 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:

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     (a) make provision with respect to the conversion rights of the holders of
Notes pursuant to the requirements of Section 17.06;

     (b) subject to Article 4, to convey, transfer, assign, mortgage or pledge
to the Trustee as security for the Notes, any property, assets or securities;

     (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 14;

     (d) to add to the covenants of the Company such further covenants,
restrictions or conditions (including, for the avoidance of doubt, restricting
or surrendering its right to deliver solely shares of Common Stock upon
conversion of the Notes in connection with a bankruptcy of the Company as set
forth in Section 17.03) 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;

     (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 omission 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 make such other provisions in regard to matters
or questions arising under this Indenture that shall not materially 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;

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

     (i) make other changes to the Indenture or forms or terms of the Notes,
provided no such change individually or in the aggregate with all other such

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changes has or will have a material adverse effect on the interests of the
Noteholders; or

     (j) conform any provision of the Indenture to the “Description of the
Notes” section of the Offering Memorandum.

     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.

     Notwithstanding any other provision of the Indenture or the Notes, the
Registration Rights Agreement and the obligation to pay Additional Amounts
thereunder may be amended, modified or waived only in accordance with the
provisions of the Registration Rights Agreement.

     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, without the consent of the holders of all
Notes then Outstanding, no such supplemental indenture shall (a) extend the
fixed maturity of any Note, (b) reduce the rate or extend the time for payment
of Interest or Additional Amounts thereon, (c) reduce the principal amount
thereof, (d) reduce any amount payable upon redemption or repurchase thereof,
(e) change the obligation of the Company to redeem any Note on a redemption
date in a manner adverse to the holders of the Notes, (f) change the obligation
of the Company to repurchase any Note on a Repurchase Date in a manner adverse
to the holders of the Notes, (g) reduce the amount of the Make Whole Premium or
otherwise impair the right of a holder to receive the Make Whole Premium due on
any Note, (h) change the obligation of the Company to repurchase any Note upon
the happening of a Designated Event in a manner adverse to the holders of the
Notes, (i) impair the right of any Note holder to institute suit for the
payment

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thereof, (j) make the principal thereof, Interest thereon, or Additional
Amounts thereon, payable in any coin or currency other than that provided in
the Notes, (k) reduce the amount of cash, the number of shares of Common Stock
or amount of other property receivable upon conversion of the Notes, (l) reduce
the quorum or voting requirements set forth in Article 11, (m) modify any of
the provisions of Section 12.02 or Section 8.07, except to increase any such
percentage or to provide that certain other provisions of the Indenture cannot
be modified or waived without the consent of the holder of each Note so
affected or (n) reduce the aforesaid percentage of Notes, the holders of which
are required to consent to any such supplemental indenture.

     Notwithstanding the foregoing, no amendment or modification of the
Indenture may occur that amends or modifies, or otherwise adversely affects the
rights of the holders of Senior Indebtedness under Article 4 without the prior
written consent of the holders of a majority in principal amount of such Senior
Indebtedness or such larger percentage of such holders as is required to
approve any such amendment or modification under the terms of such Senior
Indebtedness.

     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,

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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
18.10) and delivered in exchange for the Notes then Outstanding, upon surrender
of such Notes then Outstanding.

     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

[RESERVED.]

ARTICLE 14

CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

     Section 14.01 . Company May Consolidate On Certain Terms. Subject to the
provisions of Section 14.02, 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 all or substantially all the property and assets of the
Company, 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 payment of the
principal of, Interest on, and Additional Amounts, if any, on, all of the Notes
pursuant to their terms, and the performance and observance of all of the
covenants and conditions of this

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Indenture to be performed by the Company pursuant to the terms set forth
herein, 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 17.06; and (iii) immediately after
giving effect to the transaction described above, no Event of Default, and no
event that, after notice or lapse of time or both, would become an Event of
Default, shall have happened and be continuing.

     Section 14.02 . 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
payment of the principal of, Interest on, and Additional Amounts, if any, on,
all of the Notes pursuant to their terms and the performance of all of the
covenants and conditions of this Indenture to be performed by the Company
pursuant to the terms set forth herein, 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
NCI Building Systems, 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 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, 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 14 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 14.03 . Opinion Of Counsel To Be Given Trustee. The Trustee
shall receive an Officers’ Certificate and an Opinion of Counsel as conclusive

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evidence that any such consolidation, merger, sale, conveyance, transfer
or lease and any such assumption complies with the provisions of this Article
14.

ARTICLE 15

[RESERVED.]

ARTICLE 16

IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

     Section 16.01 . Indenture And Notes Solely Corporate Obligations. No
recourse for the payment of the principal of, Interest on, or Additional
Amounts, if any, 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.

ARTICLE 17

CONVERSION OF NOTES

     Section 17.01 . Right To Convert. (a) Subject to and in accordance with
the provisions of this Indenture, prior to the close of business on the
Business Day immediately preceding November 15, 2024, 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 that is a multiple of
$1,000, into cash and fully paid and shares of Common Stock, if any, at a rate
(the “Conversion Rate”) equivalent to 24.9121 shares of Common Stock (subject
to adjustment as provided in this Indenture) per $1,000 principal amount Note
under any of the following circumstances (the “Conversion Obligation”):

     (i) during any Calendar Quarter (but only during such Calendar
Quarter) commencing after December 31, 2004, if the Closing Price of the
Common Stock exceeds 120% of the Conversion Price then in effect for at
least twenty (20) Trading Days in the thirty (30) consecutive Trading
Day period ending on the last Trading Day of the immediately preceding
Calendar Quarter (it being understood for purposes of this Section
17.01(a)(i) that the Conversion Price in effect at the close of

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business on each of the thirty (30) consecutive Trading Days should
be used);

     (ii) during the five Business Day period immediately following any
five consecutive Trading Day period (the “Measurement Period”) in which
the Trading Price per $1,000 principal amount of the Notes for each day
of the Measurement Period was less than 98% of the product of the
Closing Price of the Common Stock and the Conversion Rate then in effect
(as determined following the provision by a Noteholder of reasonable
evidence that such condition has occurred in accordance with the
procedures described below); provided, however, that the Notes shall not
be convertible pursuant to this clause (ii) if on any Trading Day during
the Measurement Period the Closing Price of the Common Stock was between
100% and 120% of the then current Conversion Price;

     (iii) if the Notes have been called for redemption, at any time on
or after the date the notice of redemption has been given until the
close of business on the Business Day immediately preceding the
redemption date;

     (iv) as provided in Section 17.01(b); and

     (v) as provided in Section 17.01(c).

     The Company (or other conversion agent appointed by the Company) shall
determine on a daily basis during the time period specified in Section
17.01(a)(i) whether the Notes shall be convertible as a result of the
occurrence of an event specified in clause (i) above. Whenever the Notes shall
become convertible pursuant to this Section 17.01, the Company or, at the
Company’s request, the Trustee in the name and at the expense of the Company,
shall notify the holders of the event triggering such convertibility in the
manner provided in Section 18.03, and the Company shall also publicly announce
such information and publish such information on the Company’s web site or
through such other public medium as the Company shall use at such time. Any
notice so given shall be conclusively presumed to have been duly given, whether
or not the holder receives such notice.

     The Trustee (or other conversion agent appointed by the Company) shall
have no obligation to determine the Trading Price under Section 17.01(a)(ii)
unless the Company has requested such a determination, and the Company shall
have no obligation to make such request unless a holder provides it with
reasonable evidence that the Trading Price per $1,000 principal amount of Notes
would be less than 98% of the product of the Closing Price of the Common Stock
and the Conversion Rate then in effect. If such evidence is provided, the
Company shall instruct the Trustee (or other conversion agent) to determine at
the expense of the Company the Trading Price of the Notes beginning on the next
Trading Day and on each successive Trading Day until the Trading Price per
$1,000 principal amount of Notes is greater than or equal to 98% of the product
of the Closing Price of the Common Stock and the Conversion Rate then in
effect;

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provided that the Trustee shall be under no duty or obligation to make the
calculations described in Section 17.01(a)(ii) hereof or to determine whether
the Notes are convertible pursuant to such section. For the avoidance of
doubt, the Company shall make the calculations described in Section
17.01(a)(ii), using the Trading Price provided by the Trustee.

     The Trustee shall be entitled at its sole discretion to consult with the
Company and to request the assistance of the Company in connection with the
Trustee’s duties and obligations pursuant to Section 17.01(a)(ii) hereof
(including without limitation the determination of the Conversion Rate, the
Closing Prices of the Common Stock and the Trading Price), and the Company
agrees, if requested by the Trustee, to cooperate with, and provide assistance
to, the Trustee in carrying out its duties under this Section 17.01; provided,
however, that nothing herein shall be construed to relieve the Trustee of its
duties pursuant to Section 17.01(a) hereof.

     (b) In addition, if:

     (i) (A) the Company distributes to all holders of its Common Stock
rights, warrants or options entitling them (for a period expiring within
forty-five (45) days of the record date for the determination of the
stockholders entitled to receive such distribution) to subscribe for or
purchase shares of Common Stock, at a price per share less than the
average of the Closing Prices of the Common Stock for the ten (10)
Trading Days immediately preceding, but not including, the declaration
date for such distribution, or (B) the Company distributes to all
holders of its Common Stock, assets, debt securities or rights to
purchase its securities (other than the rights, warrants or options
referred to in clause (A) above), where the Fair Market Value of such
distribution per share of Common Stock exceeds 10% of the Closing Price
of the Common Stock on the Trading Day immediately preceding the
declaration date for such distribution, then, in either case, the Notes
may be surrendered for conversion at any time on and after the date that
the Company gives notice to the holders of such distribution, which
shall be not less than twenty (20) days prior to the Ex-Dividend Time
for such distribution, until the earlier of the close of business on the
Business Day immediately preceding, but not including, the Ex-Dividend
Time or the date the Company publicly announces that such distribution
will not take place; provided that no adjustment to the Conversion Rate
will be made nor will a holder of a Note be able to convert pursuant to
this Section 17.01(b) if such holder will otherwise participate in such
distribution without conversion; or

     (ii) the Company consolidates with or merges with or into another
Person or is a party to a binding share exchange, in each case pursuant
to which the Common Stock is converted into cash, securities or other
property, then the Notes may be surrendered for conversion at any time
from and after the date fifteen (15) days prior to the anticipated

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effective date of the transaction and ending on and including the
date fifteen (15) days after the consummation of the transaction, unless
such transaction occurs on or prior to November 15, 2009 and also
constitutes a Make Whole Event (in which case the Notes will be
convertible in accordance with Section 17.01(c)). The Company shall
notify holders and the Trustee (whether or not such transaction also
constitutes a Make Whole Event) at the same time the Company publicly
announces such transaction (but in no event less than 15 days prior to
the effective date of such transaction). Following the effective date
of such transaction, the right to convert the Notes at the Conversion
Rate, and the settlement thereof, shall be modified as set forth under
Section 17.06.

     "Ex-Dividend Time” means, with respect to any distribution on shares of
Common Stock, the first date on which the shares of Common Stock trade regular
way on the principal securities market on which the shares of Common Stock are
then traded without the right to receive such distribution.

     (c) In the event that a Make Whole Event occurs on or prior to November
15, 2009, a holder may surrender Notes for conversion at any time from and
after the Effective Date Notice until the Designated Event Repurchase Date
relating to such Make Whole Event.

     (d) A Note in respect of which a holder is electing to exercise its option
to require repurchase upon a Designated Event pursuant to Section 3.05 or
repurchase pursuant to Section 3.06 may be converted only if such holder
withdraws its election in accordance with Section 3.05(d)or Section 3.08,
respectively. A holder of Notes is not entitled to any rights of a holder of
Common Stock until such holder has received the Common Stock, if any, due to it
upon conversion of the Notes, and only to the extent such Notes are deemed to
have been converted to Common Stock under this Article 17.

     Section 17.02 . Conversion Procedures. (a) Upon conversion of any Note,
subject to this Section 17.02, Section 17.01(c) and Section 17.06, the Company
shall satisfy the Conversion Obligation with respect to such Note by payment
and delivery of cash and, if applicable, shares of Common Stock, the aggregate
value (the “Conversion Value”) of which shall be equal to the product of:

     (i) (A) the aggregate principal amount of Notes to be converted
divided by 1,000, multiplied by (B) the then applicable Conversion Rate;
and

     (ii) the average of the Closing Prices of Common Stock for each of
the ten (10) consecutive Trading Days (appropriately adjusted to take
into account the occurrence during such period of stock splits and
similar events) beginning on the second Trading Day immediately

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following the day the Notes are tendered for conversion (the “Ten
Day Average Price”).

     (b) The Company shall deliver the Conversion Value to converting holders
as follows:

     (i) an amount in cash (the “Principal Return”) equal to the lesser
of (A) the Conversion Value of the Notes to be converted and (B) the
aggregate principal amount of the Notes to be converted;

     (ii) if the Conversion Value of the Notes to be converted is
greater than the Principal Return, an amount in whole shares of Common
Stock (the “Net Shares”), determined as set forth below, equal to such
aggregate Conversion Value less the Principal Return (the “Net Share
Amount”); and

     (iii) an amount in cash, in lieu of any fractional shares of Common
Stock as set forth below.

     The number of Net Shares to be paid shall be determined by dividing the
Net Share Amount by the Ten Day Average Price. Holders of Notes will not
receive fractional shares upon conversion of Notes. In lieu of fractional
shares, holders will receive cash for the value of the fractional shares, which
cash payment shall be based on the Ten Day Average Price.

     The Conversion Value, Principal Return, number of Net Shares and Net Share
Amount shall be determined by the Company at the end of the ten consecutive
Trading Day period (the “Conversion Determination Date”) beginning on the
second Trading Day immediately following the day the Notes are tendered for
conversion.

     If upon conversion of Notes by any holder, the Company is not permitted to
pay the Principal Return in cash due to the limitations imposed by the Senior
Credit Agreement, the Company shall, within three Business Days of the relevant
Conversion Date, provide notice to such converting holder and the Trustee that
the Company is not permitted to pay such Principal Return due to the
limitations imposed by the Senior Credit Agreement, and such holder shall have
the option to revoke its notice of conversion during the three Business Day
period following delivery of such notice.

     (c) Before any holder of a Note shall be entitled to convert the same as
set forth above, such holder shall (1) in the case of Global Notes, comply with
the procedures of the Depositary in effect at that time and furnish appropriate
endorsement and transfer documents, and (2) in the case of a Note issued in
certificated form, surrender such Notes, duly endorsed to the Company or in
blank (and accompanied by appropriate endorsement and transfer documents), at
the office of the conversion agent, and give irrevocable written notice to the

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conversion agent in the form on the reverse of such certificated Note (or
a facsimile thereof) (a “Notice of Conversion”) at said office or place that
such holder elects to convert the same and shall state in writing therein the
principal amount of Notes to be converted and the name or names (with
addresses) in which such holder wishes the certificate or certificates for the
Net Shares, if any, included upon settlement the Conversion Obligation, if any,
to be registered. No Notice of Conversion with respect to any Notes may be
tendered by a holder thereof if such holder has also tendered a Repurchase
Notice or Option to Elect Repurchase Upon a Designated Event and not validly
withdrawn such Repurchase Notice or Option to Elect Repurchase Upon a
Designated Event in accordance with Article 3.

     If more than one Note shall be surrendered for conversion at one time by
the same holder, the Conversion Obligation with respect to such Notes, if any,
that shall be payable upon conversion shall be computed on the basis of the
aggregate principal amount of the Notes (or specified portions thereof to the
extent permitted thereby) so surrendered.

     (d) A Note shall be deemed to have been converted immediately prior to the
close of business on the date (the “Conversion Date”) that is the later of: (i)
the date the holder has complied with the requirements set forth in clause (c)
above or (ii) the Conversion Determination Date. Payment of the cash and Net
Shares, if any, in satisfaction of the Conversion Obligation shall be made by
the Company promptly following the Conversion Date, but in no event later than
three Business Days thereafter (the “Conversion Settlement Date”) by paying, in
cash, the Principal Return (together with any cash in lieu of fractional
shares) to the holder of a Note surrendered for conversion, or such holder’s
nominee or nominees, and issue, or cause to be issued, and delivering to the
conversion agent or to such holder, or such holder’s nominee or nominees,
certificates or a book-entry transfer through the Depositary for the number of
full shares of Common Stock equal to the Net Shares, if any, to which such
holder shall be entitled as part of such Conversion Obligation.

     (e) In case any Note shall be surrendered for partial conversion, the
Company shall execute and the Trustee shall authenticate and deliver to or upon
the written order of the holder of the Note so surrendered, without charge to
such holder, a new Note or Notes in authorized denominations in an aggregate
principal amount equal to the unconverted portion of the surrendered Notes.

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

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sufficient to pay any tax which will be due because the shares are to be
issued in a name other than the holder’s name. Nothing herein shall preclude
any tax withholding required by law or regulations.

     (g) Upon the conversion of an interest in a Global Note, the Trustee, or
the Custodian at the direction of the Trustee, 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 conversion of Notes
effected through any conversion agent other than the Trustee.

     (h) No payment or adjustment shall be made for dividends on, or other
distributions with respect to, any Common Stock except as provided in this
Article 17. Upon conversion of a Note, except for conversion during the period
from the close of business on any record date immediately preceding any
interest payment date to the close of business on the Business Day immediately
preceding such interest payment date, in which case the holder on such record
date shall receive the Interest and Additional Amounts, if any, payable on such
interest payment date, that portion of accrued and unpaid Interest and
Additional Amounts, if any, on the converted Note attributable to the period
from the most recent interest payment date (or, if no interest payment date has
occurred, from the Issue Date) through the Conversion Date 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), or cash or a
combination of cash and Common Stock in lieu thereof, 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 accrued and unpaid Interest and Additional Amounts, if any,
accrued through the Conversion Date 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 the principal amount of the Note being converted
pursuant to the provisions hereof.

     (i) Notes or portions thereof surrendered for conversion during the period
from the close of business on any record date immediately preceding any
interest payment date to the close of business on the Business Day immediately
preceding such interest payment date shall be accompanied by payment to the
Company or its order, in immediately available funds or other funds acceptable
to the Company, of an amount equal to the Interest and Additional Amounts, if
any, payable on such interest payment date with respect to the principal amount
of Notes or portions thereof being surrendered for conversion; provided that no
such payment need be made (1) if the Company has specified a redemption date
that occurs after a record date but on or prior to the next interest payment
date, (2) if the Company has specified a Designated Event Repurchase Date
during such period or (3) to the extent of any overdue Interest or overdue
Additional Amounts, if any overdue Interest or Additional Amounts exist on the
Conversion Date with respect to the Notes converted.

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     (j) Notwithstanding the foregoing, if on any Conversion Date, the Company
is required to pay Additional Amounts pursuant to the Registration Rights
Agreement, the Conversion Rate on such date shall be multiplied by 1.03.

     (k) Notwithstanding the foregoing, no adjustment to the Conversion Rate
will be made in connection with a merger, consolidation or other transaction
effected solely for the purpose of changing the Company’s jurisdiction of
incorporation to any other state within the United States.

     Section 17.03 . Conversion Obligation Upon a Bankruptcy. Notwithstanding
the provisions of Section 17.02, if an event of bankruptcy involving the
Company has occurred and is continuing, in lieu of delivering the Principal
Return in cash and any Net Share Amount in shares of Common Stock, the Company
will have the right to deliver the Conversion Value to holders in cash, shares
of Common Stock or a combination of cash and shares of Common Stock at its
option.

     Section 17.04 . [Reserved.]

     Section 17.05 . Adjustment Of Conversion Rate. The Conversion Rate shall
be adjusted from time to time (without duplication) 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 immediately prior
to the opening of business on the day 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 paragraph (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 17.05(a) is declared but not so paid or
made, the

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Conversion Rate shall again be adjusted to the Conversion Rate that would then
be in effect if such dividend or distribution had not been declared.

     (b) In case the Company shall issue rights, options 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, options or warrants) to subscribe
for or purchase shares of Common Stock at a price per share less than the
average of the Closing Prices of the Common Stock for the ten (10) Trading Days
immediately preceding the declaration date for such distribution, 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 opening of business on the day following the date fixed for determination
of stockholders entitled to receive such rights, options or warrants by a
fraction,

     (i) the numerator of which shall be 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, options
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,
options or warrants plus the number of shares that the aggregate
offering price of the total number of shares of Common Stock so offered
would purchase at a price equal to the average of the Closing Prices of
the Common Stock for the ten (10) Trading Days immediately preceding the
declaration date for such distribution.

     Such adjustment shall be successively made whenever any such rights,
options 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, options or warrants. To the
extent that shares of Common Stock are not delivered after the expiration of
such rights, options or warrants, the Conversion Rate shall be readjusted to
the Conversion Rate that would then be in effect had the adjustments made upon
the issuance of such rights, options or warrants been made on the basis of
delivery of only the number of shares of Common Stock actually delivered. If
such rights, options or warrants are not 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, options or warrants had not been fixed. In determining whether any
rights, options or warrants entitle the holders to subscribe for or purchase
shares of Common Stock at a price less than the average of the Closing Prices
of the Common Stock for the ten (10) Trading Days immediately preceding the
declaration date for such distribution, and in determining the aggregate
offering price of such shares of Common Stock,

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there shall be taken into account any consideration received by the
Company for such rights, options or warrants and any amount payable on exercise
or conversion thereof, the value of such consideration, if other than cash, to
be determined by the Board of Directors.

     (c) 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 immediately prior to the
opening of business on the day following the day upon which such combination
becomes effective shall be proportionately reduced, such increase or reduction,
as the case may be, to become effective immediately after the opening of
business on the day following the day upon which such subdivision or
combination becomes effective.

     (d) In case the Company shall, by dividend or otherwise, distribute to all
holders of its Common Stock shares of any class of capital stock of the Company
or evidences of its indebtedness, property or assets (including rights,
options, warrants and other securities, but excluding any rights, options or
warrants referred to in Section 17.05(b), and excluding any dividend or
distribution (x) paid exclusively in cash or (y) referred to in Section
17.05(a)) (any of the foregoing hereinafter in this Section 17.05(d) called the
"Distributed Property”), then, in each such case the Conversion Rate shall be
increased so that the same shall be equal to the rate determined by multiplying
the Conversion Rate in effect immediately prior to the opening of business on
the day immediately following 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 Distributed Property so distributed applicable to one
share of Common Stock,

such adjustment to become effective immediately after 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 Distributed Property 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, upon any conversion of the Notes thereafter, the provisions of
Section 17.06 shall apply to such conversion mutatis mutandis; provided further
that for such application, any references in such provisions to the “Exchange
Property” shall be deemed

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references to a unit composed of (a) the number of shares of Common Stock equal
to the Conversion Rate immediately prior to the relevant distribution and (b)
the amount of Distributed Property such holder would have received had such
holder held a number of shares of Common Stock equal to the Conversion Rate
immediately prior to the relevant distribution. If such dividend or
distribution is not so paid or made, the Conversion Rate shall again be
adjusted to be the Conversion Rate that would then be in effect if such
dividend or distribution had not been declared. If the Board of Directors
determines the Fair Market Value of any distribution for purposes of this
Section 17.05(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 Distributed Property distributed by
the Company to all holders of its Common Stock consist of capital stock of, or
similar equity interests in, 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 immediately
prior to the opening of business on the day following 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 Prices of the Common Stock for the ten (10) consecutive
Trading Days commencing on and including the fifth Trading Day after the
date on which “ex-dividend trading” commences for such dividend or
distribution on the New York Stock Exchange, the Nasdaq National Market
or such other national or regional exchange or market on which such
securities are then listed or quoted (the “Ex-Dividend Date”) plus (B)
the average Closing Prices of the securities distributed in respect of
each share of Common Stock for the ten (10) consecutive 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
Prices of the Common Stock for the ten (10) consecutive Trading Days
commencing on and including the fifth Trading Day after the Ex-Dividend
Date,

such adjustment to become effective immediately after the opening of business
on the day following such Record Date; provided that if (x) the average of the
Closing Prices of the Common Stock for the ten (10) consecutive Trading Days
commencing on and including the fifth Trading Day after the Ex-Dividend Date
minus (y) the average of the Closing Prices of the securities distributed in
respect of each share Common Stock for the ten (10) consecutive Trading Days
commencing on and including the fifth Trading Day after the Ex-Dividend Date is
less than $1.00, then the adjustment provided by for by this paragraph shall
not be made and in lieu thereof the provisions of the first paragraph of this
Section

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17.05(d) shall apply to such distribution. In any case in which this paragraph
is applicable, Section 17.05(a), Section 17.05(b) and the first paragraph of
this Section 17.05(d) shall not be applicable.

     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, options 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 17.05 (and no adjustment to the Conversion Rate
under this Section 17.05 will be required) until the occurrence of the earliest
Trigger Event, whereupon such rights, options 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 17.05(d). If any such right
or warrant, including any such existing rights, options or warrants distributed
prior to the date of this Indenture, are subject to events, upon the occurrence
of which such rights, options or warrants become exercisable to purchase
different securities, evidences of indebtedness or other assets, then the date
of the occurrence of any and each such event shall be deemed to be the date of
distribution and record date with respect to new rights, options or warrants
with such rights (and a termination or expiration of the existing rights,
options or warrants without exercise by any of the holders thereof). In
addition, in the event of any distribution (or deemed distribution) of rights,
options or warrants, or any Trigger Event or other event (of the type described
in the preceding sentence) with respect thereto that was counted for purposes
of calculating a distribution amount for which an adjustment to the Conversion
Rate under this Section 17.05 was made, (1) in the case of any such rights,
options or warrants that shall all have been redeemed or repurchased without
exercise by any holders thereof, the Conversion Rate shall be readjusted upon
such final redemption or repurchase to give effect to such distribution or
Trigger Event, as the case may be, as though it were a cash distribution, equal
to the per share redemption or repurchase price received by a holder or holders
of Common Stock with respect to such rights, options or warrants (assuming such
holder had retained such rights, options or warrants), made to all holders of
Common Stock as of the date of such redemption or repurchase, and (2) in the
case of such rights, options or warrants that shall have expired or been
terminated without exercise by any holders thereof, the Conversion Rate shall
be readjusted as if such rights, options and warrants had not been issued.

     Prior to the occurrence of any Triggering Event, no adjustment to the
Conversion Rate shall be made pursuant to this Section 17.05(d) in respect of
rights, options or warrants distributed to or deemed distributed upon the
occurrence of such Triggering Event to the extent such rights, options 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.

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     For purposes of this Section 17.05(d), Section 17.05(a) and Section
17.05(b), any dividend or distribution to which this Section 17.05(d) is
applicable that also includes shares of Common Stock, or rights, options or
warrants to subscribe for or purchase shares of Common Stock (or both), shall
be deemed instead to be (1) a dividend or distribution of the evidences of
indebtedness, assets or shares of capital stock other than such shares of
Common Stock or rights, options or warrants (and any Conversion Rate adjustment
required by this Section 17.05(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, options or warrants (and any
further Conversion Rate adjustment required by Sections 17.05(a) and 17.05(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, options or warrants” and “the
date fixed for such determination” within the meaning of Section 17.05(a) and
17.05(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 the determination of stockholders entitled to receive such
dividend or other distribution” or “outstanding at the close of business on the
date fixed for such determination” within the meaning of Section 17.05(a).

     The reclassification of the Common Stock into securities including
securities other than Common Stock (other than any reclassification upon an
event to which Section 17.06 applies) shall be deemed to involve (a) a
distribution of such securities other than the Common Stock to all holders of
Common Stock (and the effective date of such reclassification shall be deemed
to be the “Record Date” within the meaning of this Section 17.05(d)), and (b) a
subdivision or combination, as the case may be, of the number of shares of
Common Stock outstanding immediately prior to such reclassification into the
number of shares of Common Stock outstanding immediately thereafter (and the
effective date of such reclassification shall be deemed to be “the day upon
which such subdivision becomes effective” or “the day upon which such
combination becomes effective”, as the case may be, and “the day upon which
such subdivision or combination becomes effective” within the meaning of
Section 17.05(c)).

     (e) In case the Company shall, by dividend or otherwise, distribute to all
holders of its Common Stock cash (excluding any dividend or distribution in
connection with the liquidation, dissolution or winding up of the Company,
whether voluntary or involuntary), 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 opening of
business on the day following such Record Date by a fraction,

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

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     (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 after 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, upon any conversion of the Notes thereafter, the provisions of
Section 17.06 shall apply to such conversion mutatis mutandis; provided further
that for such application, any references in such provisions to the “Exchange
Property” shall be deemed references to a unit composed of (a) the number of
shares of Common Stock equal to the Conversion Rate immediately prior to the
relevant distribution and (b) the amount of cash such holder would have
received had such holder held a number of shares of Common Stock equal to the
Conversion Rate immediately prior to the relevant distribution. If such
dividend or distribution is not so paid or made, the Conversion Rate shall
again be adjusted to be the Conversion Rate that would then be in effect if
such dividend or distribution had not been declared.

     (f) In case a tender or exchange offer made by the Company or any
Subsidiary for all or any portion of the Common Stock shall expire and such
tender or exchange offer (as amended upon the expiration thereof) shall require
the payment to stockholders of consideration per share of Common Stock having a
Fair Market Value (as determined by the Board of Directors, whose determination
shall be conclusive and described in a resolution of the Board of Directors)
that as of the last time (the “Expiration Time”) tenders or exchanges may be
made pursuant to such tender or exchange offer (as it may be amended) exceeds
the Closing Price per 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 Price per 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 tendered or exchanged shares) at
the Expiration Time multiplied by the Closing Price per share of Common
Stock on the Trading Day next succeeding the Expiration Time,

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such adjustment to become effective immediately after 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) No adjustment in the Conversion Rate shall be made for any increase or
decrease in the par value of the Common Stock, or a change in the par value of
the Common Stock to no par value.

     (h) [Reserved.]

     (i) For purposes of this Section 17.05, the following terms shall have the
meaning indicated:

     (i) “Current Market Price” means the average of the daily Closing
Prices per share of Common Stock for the ten (10) consecutive Trading
Days ending on the earlier of the date of termination and the day before
the “ex” date with respect to the distribution requiring such
computation. For purpose of this paragraph, the term “ex” date, when
used with respect to any distribution, means the first date on which the
Common Stock trades, regular way, on the relevant exchange or in the
relevant market from which the Closing Price was obtained without the
right to receive such distribution.

If another issuance, distribution, subdivision or combination to which
Section 17.05 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 Price of the Common Stock during such period.

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

     (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).

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     (iv) “Trading Day” for any security shall mean (x) 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 (y) if the applicable security is quoted on the
Nasdaq National Market, a day on which trades may be made thereon, 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.

     (j) The Company may make such increases in the Conversion Rate, in
addition to those required by Section 17.05(a), (b), (c), (d), (e) or (f) 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 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
paragraph, the Company shall mail, or cause the Trustee to mail, to holders of
record of the Notes a notice of the increase 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.

     (k) All calculations under this Article 17 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
rights to purchase Common Stock pursuant to a Company plan for reinvestment of
dividends or interest or for any issuance of Common Stock or convertible or
exchangeable securities or rights to purchase Common Stock or convertible or
exchangeable securities. Interest will not accrue on any cash into which the
Notes are convertible.

     (l) 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

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the date on which each adjustment becomes effective and shall mail, or
cause the Trustee to 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.

     (m) [Reserved.]

     (n) For purposes of this Section 17.05, 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 17.06 . 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 split, subdivision or combination), (ii) any consolidation,
merger or binding share exchange of the Company with another Person as a result
of which holders of Common Stock shall be entitled to receive stock,
securities, other property, assets or cash with respect to or in exchange for
such Common Stock, or (iii) any sale or conveyance of the properties and assets
of the Company as, or substantially as, an entirety to any other Person as a
result of which holders of Common Stock shall be entitled to receive stock,
securities, other property, assets or cash with respect to or in exchange for
such Common Stock, then:

     (a) 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 if such supplemental indenture is then required to so
comply) providing for the conversion and settlement of the Notes as set forth
in this Indenture. Such supplemental indenture shall provide for adjustments
which shall be as nearly equivalent as may be practicable to the adjustments
provided for in this Article. If, in the case of any such reclassification,
change, consolidation, merger, binding share exchange, sale or conveyance, the
Exchange Property includes shares of stock, other securities, property or
assets of a Person other than the successor or purchasing Person, as the case
may be, in such reclassification, change, consolidation, merger, binding share
exchange, sale or conveyance, then such supplemental indenture shall also be
executed by such other Person and shall contain such additional provisions to
protect the interests of the holders of the Notes as the Board of Directors
shall reasonably consider necessary by reason of the foregoing, including to
the extent required by the Board of Directors and practicable the provisions
providing for the repurchase rights set forth in Article 3 herein.

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     (b) Notwithstanding the provisions of Section 17.02(a), and subject to the
provisions of Section 17.01(a)(ii), the Conversion Value with respect to each
$1,000 principal amount of Notes converted following the effective date of any
such transaction, shall be calculated (as provided in clause (d) below) based
on the kind and amount of stock, securities, other property, assets or cash
received upon such reclassification, change, consolidation, merger, binding
share exchange, sale or conveyance by a holder of Common Stock holding,
immediately prior to the transaction, a number of shares of Common Stock equal
to the Conversion Rate immediately prior to such transaction (the “Exchange
Property”), assuming such holder of Common Stock did not exercise his rights of
election, if any, as to the kind or amount of stock, securities, other
property, assets or cash receivable upon such consolidation, merger, binding
share exchange, sale or conveyance (provided that, if the kind or amount of
stock, securities, other property, assets or cash receivable upon such
consolidation, merger, binding share exchange, 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 17.06 the kind and amount of stock, securities, other property,
assets or cash receivable upon such consolidation, merger, binding share
exchange, 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).

     (c) The Conversion Value in respect of any Notes converted following the
effective date of any such transaction shall be equal to the average of the
daily values of the Exchange Property pertaining to such Notes as determined in
the next sentence (the “Exchange Property Value”) for each of the ten (10)
consecutive Trading Days (appropriately adjusted to take into account the
occurrence during such period of stock splits and similar events) beginning on
the later of (A) the second Trading Day immediately following the day the Notes
are tendered for conversion and (B) the effective date of such transaction (the
“Exchange Property Average Price”). For the purpose of determining the value
of any Exchange Property:

     (i) any shares of common stock of the successor or purchasing
Person or any other Person that are included in the Exchange Property
shall be valued as set forth in Section 17.02 as if such shares were
“Common Stock” using the procedures set forth in the definition of
“Closing Price” in Section 1.01; and

     (ii) any other securities, property or assets (other than cash)
included in the Exchange Property shall be valued in good faith by the
Board of Directors or by a New York Stock Exchange member firm selected
by the Board of Directors.

     (d) The Company shall deliver such Conversion Value to holders of Notes so
converted as follows:

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     (i) An amount equal to the Principal Return, determined as set
forth in Section 17.02(b)(i); and

     (ii) If the Conversion Value of the Notes so converted is greater
than the Principal Return, an amount of Exchange Property, determined as
set forth below, equal to such aggregate Conversion Value less the
Principal Return (the “Net Exchange Property Amount”).

     The amount of Exchange Property to be delivered shall be determined by
dividing the Net Exchange Property Amount by the Exchange Property Average
Price. If the Exchange Property includes more than one kind of property, the
amount of Exchange Property of each kind to be delivered shall be in the
proportion that the Exchange Property Value of such kind of Exchange Property
bears to the Exchange Property Value of all the Exchange Property. If the
foregoing calculations would require the Company to deliver a fractional share
or unit of Exchange Property to a holder of Notes being converted, the Company
shall deliver cash in lieu of such fractional share or unit based on its
Exchange Property Average Price.

     (e) Notwithstanding clauses (b), (c) and (d) above, if the Notes are
tendered for conversion prior to the effective date of any such transaction
pursuant to Section 17.01(c) above, and the Principal Return and Net Shares, if
any, have been determined as of the effective date of such transaction, then
the Company shall (i) pay the Principal Return in cash and (ii) instead of
delivering Net Shares, if applicable, deliver an amount of Exchange Property
that a holder of Common Stock, holding, immediately prior to the transaction, a
number of shares of Common Stock equal to the Net Shares, would receive,
assuming such holder of Common Stock did not exercise his rights of election,
if any, as to the kind or amount of stock, securities, other property, assets
or cash receivable upon such consolidation, merger, binding share exchange,
sale or conveyance (provided that, if the kind or amount of stock, securities,
other property, assets or cash receivable upon such consolidation, merger,
binding share exchange, sale or conveyance is not the same for each
non-electing share, then for the purposes of this Section 17.06 the kind and
amount of stock, securities, other property, assets or cash receivable upon
such consolidation, merger, binding share exchange, 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). If the foregoing
calculations would require the Company to deliver a fractional share or unit of
Exchange Property to a holder of Notes being converted, the Company shall
deliver cash in lieu of such fractional share or unit based on the Exchange
Property Value (as so determined).

     (f) [Reserved.]

     (g) The Company shall cause notice of the execution of such supplemental
indenture to be mailed to each holder of Notes, at his address appearing on the
Note register provided for in this Indenture, within twenty (20)

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days after execution thereof. Failure to deliver such notice shall not
affect the legality or validity of such supplemental indenture.

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

     Section 17.07 . Taxes On Shares Issued. The issue of any 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 that may be payable in respect of any transfer
involved in the issue and delivery of stock, if any, 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 17.08 . 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 and payment of the Make Whole
Premium, if any, from time to time as such Notes are presented for conversion
or repurchase in the case of a Make Whole Premium, if any.

     Before taking any action that 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 any shares of Common Stock that
may be issued upon conversion of the Notes, the Company will take all corporate
action that 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 that 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.

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     The Company further covenants that, if at any time the Common Stock shall
be listed on the New York Stock Exchange 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, any Common Stock issuable upon conversion of the Notes;
provided 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 in accordance with the provisions of this Indenture,
the Company covenants to list any Common Stock issuable upon conversion of the
Notes in accordance with the requirements of such exchange or automated
quotation system at such time.

     Section 17.09 . 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
that 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 stock,
securities, other property, assets or cash that 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 securities, other property, assets 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 17.
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 17.06 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 17.06 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 17.10 . 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 17.05; or

97

 

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

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

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

the Company shall cause to be filed with the Trustee and to be mailed to each
holder of 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, binding share
exchange, sale, conveyance, 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, binding share exchange, sale, conveyance, 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, binding share exchange, sale,
conveyance, dissolution, liquidation or winding up.

     Section 17.11 . Stockholder Rights Plans. There shall be no adjustment
to the Conversion Rate upon the issuance of the rights (the “Rights”) provided
for in the Company’s shareholder rights agreement dated June 24, 1998, between
the Company and Harris Trust and Savings Bank, as amended, or in any future
rights plan adopted by the Company, prior to the Rights separating from the
Common Stock. If the Rights have separated from the shares of Common Stock in
accordance with the provisions of the applicable shareholder rights agreement
so that the holders of the Notes would not be entitled to receive any rights in
respect of any Common Stock issuable upon conversion of the Notes, the
Conversion Rate will be adjusted as if the Company distributed to all holders
of Common Stock shares of the Company’s capital stock, evidences of
indebtedness, property or assets (including securities but excluding rights or
warrants to purchase Common Stock issued to all holders of Common Stock, Common
Stock issued as

98

 

a dividend or distribution on Common Stock and cash distributions),
subject to readjustment in the event of the expiration, termination or
redemption of the rights.

     Section 17.12 . Issuer Determination Final. Any determination that the
Company or Board of Directors of the Company must make pursuant to Section
17.01, Section 17.02, Section 17.03, Section 17.04, Section 17.05 or Section
17.06 shall, absent manifest error, be conclusive.

ARTICLE 18

MISCELLANEOUS PROVISIONS

     Section 18.01 . 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 18.02 . 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 18.03 . Addresses For Notices, Etc. Any notice or demand that by
any provision of this Indenture is required or permitted to be given or served
by the Trustee or by the holders of 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: NCI
Building Systems, Inc., 10943 North Sam Houston Parkway West, Houston, Texas,
77064, Attention: General Counsel. 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, 101 Barclay
Street, Fl 21W, New York, NY 10286, Attention, Corporate Trust Department;
Facsimile: 212-815-5707.

     Any notice or demand that by any provision of this Indenture is required
or permitted to be given or served by the Company may, at the Company’s written
request received by the Trustee not fewer than five (5) Business Days prior (or
such shorter period of time as may be acceptable to the Trustee) to the date on
which such notice must be given or served, be given or served by the Trustee in
the name of and at the expense of the Company.

99

 

     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 18.04 . 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 governed by, and construed in accordance with, the laws
of the State of New York, without regard to conflicts of laws principles
thereof.

     Section 18.05 . 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; provided, that with respect to matters of fact, an Opinion of
Counsel may rely on an Officer’s Certificate or a certificate of public
officials.

     Each certificate or opinion provided for 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 18.06 . Legal Holidays. In any case in which the date of
maturity of Interest on, Additional Amounts, if any, on, or principal of, the
Notes or the redemption or repurchase date of any Note will not be a Business
Day, then payment of such Interest on, Additional Amounts 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

100

 

redemption or repurchase date, and no Interest or Additional Amounts shall
accrue for the period from and after such date.

     Section 18.07 . 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 18.07 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 that is required to be included in an indenture
qualified under the Trust Indenture Act, such required provision shall control.

     Section 18.08 . 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 18.09 . 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 18.10 . 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, 3.03 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.

101

 

     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 18.10, 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
18.10 shall be applicable to any authenticating agent.

     Section 18.11 . 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 18.12 . 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 and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

     The Bank of New York hereby accepts the duties of Trustee in this
Indenture declared and provided, upon the terms and conditions herein above set
forth.

102

 

     Section 18.13 . 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 considered a part
hereof, and shall in no way modify or restrict any of the terms or provisions
hereof.

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

	 	 	 	 	 
	 	 	NCI BUILDING SYSTEMS, INC.
	 
	 	 	 	 
	

	 	By:	 	/s/ Norman C. Chambers 
	

	 	 	 	

Name:  Norman C. Chambers
	

	 	 	 	Title:    President
& Chief Operating
Officer
	 
	 	 	 	 
	 	 	THE BANK OF NEW YORK, as Trustee
	 
	 	 	 	 
	

	 	By:	 	/s/ Beata Hryniewicka 
	

	 	 	 	

Name:  Beata Hryniewicka
	

	 	 	 	Title:    Assistant
Treasurer

 

 

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]

     THIS SECURITY AND ANY SHARES OF NCI BUILDING SYSTEMS, INC. (THE “COMPANY”)
COMMON STOCK (“COMMON STOCK”), IF ANY, ISSUABLE UPON CONVERSION OF THIS
SECURITY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. NEITHER THIS SECURITY,
ANY SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF THIS SECURITY NOR ANY
INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF
SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
REGISTRATION.

     THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES TO OFFER,
SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE
RESTRICTION TERMINATION DATE”) WHICH IS TWO YEARS AFTER THE LAST DATE ON WHICH
THE 2.125% CONVERTIBLE SENIOR SUBORDINATED NOTES DUE 2024 OF THE COMPANY WERE
ORIGINALLY ISSUED ONLY (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) FOR SO
LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A
PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED
IN RULE 144A

A-1

 

UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHICH NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) PURSUANT TO A REGISTRATION
STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, OR (D)
PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT, SUBJECT TO THE RIGHTS OF THE COMPANY AND THE WITHIN
MENTIONED TRUSTEE PRIOR TO THE REGISTRATION OF ANY SUCH OFFER, SALE OR TRANSFER
PURSUANT TO CLAUSE (B), (C) OR (D) TO REQUIRE A DULY COMPLETED AND SIGNED
CERTIFICATE (THE FORM OF WHICH IS AVAILABLE FROM THE COMPANY OR THE TRUSTEE)
AND IN THE CASE OF CLAUSE (D) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM, AND IN
EACH OF THE FOREGOING CASES, A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON
THE OTHER SIDE OF THIS SECURITY COMPLETED AND DELIVERED BY THE TRANSFEROR TO
THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER
THE RESALE RESTRICTION TERMINATION DATE.

A-2

 

NCI BUILDING SYSTEMS, INC.

2.125% CONVERTIBLE SENIOR SUBORDINATED NOTES DUE 2024

CUSIP: [•]

			
	No.    
	 	$          

     NCI Building Systems, Inc., a corporation duly organized and validly
existing under the laws of the State of Delaware (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.
or its registered assigns, [the principal sum of    DOLLARS]
[the principal sum set forth on Schedule I hereto, which amount shall not
exceed    ($   ),]1 on November 15, 2024 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 May 15 and
November 15 of each year (each, an “Interest Payment Date”), commencing May 15,
2005, on said principal sum at said office or agency, in like coin or currency,
at the rate per annum of 2.125%, from the May 15 or November 15, as the case
may be, next preceding the date of this Note to which Interest has been paid or
duly provided for, unless no Interest has been paid or duly provided for on the
Notes, in which case from November 16, 2004 until payment of said principal sum
has been made or duly provided for. Notwithstanding the foregoing, if the
Company shall default in the payment of Interest due on any such May 15 or
November 15, then this Note shall bear Interest from the next preceding May 15
or November 15 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 November 16,
2004. Except as otherwise provided in the Indenture, the Interest and
Additional Amounts, if any, payable on the Note pursuant to the Indenture on
any May 15 or November 15 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 May 1 or November 1 (whether or not a Business Day) (each a
“Record Date”) next preceding such May 15 or November 15, as provided in the
Indenture; provided that any such Interest and Additional Amounts, if any, not
punctually paid or duly provided for shall be payable as provided in the
Indenture. The Company shall pay Interest and Additional Amounts, if any (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 (provided that the holder
of Notes with an aggregate principal amount in excess of $2,000,000 shall, at
the written election of such holder, be paid by wire transfer of

	1	 	For Global Notes only.

A-3

 

immediately available funds) 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, (to the extent
payment of such interest is enforceable under applicable law) Interest and
Additional Amounts, if any, at the rate of 1% per annum.

     Reference is made to the further provisions of this Note set forth on the
reverse hereof, including, without limitation, provisions subordinating the
payment of principal of, Interest on the Notes as well as Additional Amounts,
if any, to the prior payment in full of all Senior Indebtedness, as defined in
the Indenture, and provisions giving the holder of this Note the right to
convert this Note on the terms and subject to the limitations referred to on
the reverse hereof and as more fully specified in Article 17 of 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.

Dated: November 16, 2004

	 	 	 	 	 
	 	 	NCI BUILDING SYSTEMS, INC.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

Name:
	

	 	 	 	Title:

A-5

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

The Bank of New York, as Trustee

	 	 	 	 	 
	By:
	 	 	 	 
	

	 	

Authorized Signatory
	 	 
	 
	 	 	 	 
	

	 	, or                  	 	 
	By:
	 	 	 	 
	

	 	

As Authenticating Agent

(if different from Trustee)	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	

	 	

Authorized Signatory	 	 

A-6

 

FORM OF REVERSE OF NOTE

NCI BUILDING SYSTEMS, INC.

2.125% CONVERTIBLE SENIOR SUBORDINATED NOTE DUE 2024

     This Note is one of a duly authorized issue of Notes of the Company,
designated as its 2.125% Convertible Senior Subordinated Notes Due 2024 (herein
called the “Notes”), limited in aggregate principal amount to $180,000,000,
issued and to be issued under and pursuant to an Indenture dated as of November
16, 2004 (herein called the “Indenture”), between the Company and The Bank of
New York, 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.

     In case an Event of Default shall have occurred and be continuing, the
principal of and accrued and unpaid Interest and Additional Amounts, if any, 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 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; provided that, without the
consent of the holders of all Notes then Outstanding, no such supplemental
indenture shall (a) extend the fixed maturity of any Note, (b) reduce the rate
or extend the time for payment of Interest and Additional Amounts, if any,
thereon, (c) reduce the principal amount thereof, (d) reduce any amount payable
upon redemption or repurchase thereof, (e) change the obligation of the Company
to redeem any Note on a redemption date in a manner adverse to the holders of
the Notes, (f) change the obligation of the Company to repurchase any Note on a
Repurchase Date in a manner adverse to the holders of the Notes, (g) reduce the
amount of the Make Whole Premium or otherwise impair the right of a holder to
receive the make Whole Premium due on any Note, (h) change the obligation of
the Company to repurchase any Note upon the happening of a Designated Event in
a manner adverse to the holders of the Notes, (i) impair the right of any Note
holder to institute suit for the payment thereof, (j) make the principal
thereof, Interest thereon and Additional Amounts, if any, payable in any coin
or currency other than that provided in the Notes, (k) reduce the amount of
cash, the number of shares of Common Stock or amount of other property
receivable upon conversion of the Notes, (l) reduce the quorum or voting
requirements set forth in

A-7

 

Article 11 thereof, (m) modify any of the provisions of Section 12.02 or
Section 8.07 thereof, except to increase any such percentage or to provide that
certain other provisions of the Indenture cannot be modified or waived without
the consent of the holder of each Note so affected or (n) reduce the aforesaid
percentage of Notes, the holders of which are required to consent to any such
supplemental indenture.

     Notwithstanding the foregoing, no amendment or modification of the
Indenture may occur that amends or modifies, or otherwise adversely affects the
rights of the holders of Senior Indebtedness under Article 4 without the prior
written consent of the holders of a majority in principal amount of such Senior
Indebtedness or such larger percentage of such holders as is required to
approve any such amendment or modification under the terms of such Senior
Indebtedness.

     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
under the Indenture and its consequences except (A) a default in the payment of
Interest and/or Additional Amounts, if any, on, or the principal of, any of the
Notes, (B) a failure by the Company to convert any Notes pursuant to Article 17
of the Indenture, (C) a default in the payment of the redemption price pursuant
to Article 3 of the Indenture, (D) a default in the payment of the repurchase
price pursuant to Article 3 of the Indenture, (E) a default in the payment of
the Make Whole Premium when due, or (F) a default in respect of a covenant or
provisions of the Indenture that under Article 12 of the Indenture cannot be
modified or amended without the consent of the holders of each or all Notes
then Outstanding or affected thereby. 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 that 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.

     The Notes are subordinated to all Senior Indebtedness and are pari passu
in right of payment to all Senior Subordinated Indebtedness of the Company and
senior in right of payment to all Subordinated Indebtedness of the Company.
Each holder of this Note, whether upon original issue or upon registration of
transfer, assignment or exchange thereof, by accepting the same, agrees to the
subordination provisions set forth in Article 4 of the Indenture and authorizes
the Trustee on its behalf to take such action as may be necessary or
appropriate to effectuate the subordination so provided and appoints the
Trustee his attorney-in-fact for any and all such purposes.

     No reference herein to the subordination provisions of 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,

A-8

 

Interest on this Note and Additional Amounts, if any, at the place, at the
respective times, at the rate and in the coin or currency herein prescribed.

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

     The Notes are issuable in fully registered form, without coupons, in
denominations of $1,000 principal amount and any integral multiple of $1,000.
At the office or agency of the Company referred to on the face hereof, and in
the manner and subject to the limitations provided in the Indenture, without
payment of any service charge but with payment of a sum sufficient to cover any
tax, assessment or other governmental charge that may be imposed in connection
with any registration or exchange of Notes, Notes may be exchanged for a like
aggregate principal amount of Notes of any other authorized denominations.

     The Company may not redeem any Notes before November 20, 2009. At any
time on or after November 20, 2009 and prior to maturity, the Notes may be
redeemed at any time or from time to time at the option of the Company, in
whole or in part. The Company may redeem the Notes upon mailing a notice of
such redemption not less than twenty (20) days but not more than sixty (60)
days before the redemption date to the holders of Notes at their last
registered addresses, all as provided in the Indenture, at a redemption price
equal to 100% of the principal amount of Notes being redeemed and accrued and
unpaid Interest, and Additional Amounts, if any, to, but excluding, the
redemption date; provided that if the redemption date falls after a Record Date
and on or prior to the corresponding Interest Payment Date, then the Interest
and Additional Amounts, if any, payable on such date shall be paid to the
holder of record at the close of business on the corresponding Record Date.
The Notes will be redeemable in integral multiples of $1,000 principal amount.

     The Company may not give notice of any redemption of the Notes if a
default in the payment of Interest and/or Additional Amounts, if any, on the
Notes has occurred and is continuing.

     The Notes are not subject to redemption through the operation of any
sinking fund.

     If a Designated Event occurs at any time prior to maturity of the Notes,
the Notes may be repurchased for cash at the option of the holders of the Notes
on a Designated Event Repurchase Date, not less than twenty (20) nor more than
thirty-five (35) Business Days after notice thereof, at the option of the
holder of this Note at a redemption price equal to 100% of the principal amount
thereof, together with accrued and unpaid Interest to (but excluding) the
Designated Event Repurchase Date, plus, Additional Amounts, if any, and in the
case of a Make Whole Event occurring on or prior to November 15, 2009, a Make
Whole Premium as determined pursuant to Article 5 of the Indenture; provided
that if such Designated Event Repurchase Date falls after a Record Date and on
or prior

A-9

 

the corresponding Interest Payment Date, the Interest and Additional
Amounts, if any, payable on such Interest Payment Date shall be paid to the
holder of record of this Note at the close of business on the corresponding
Record Date. The Company shall mail, or cause the Trustee to mail, to all
holders of record of the Notes a notice of the occurrence of a Designated Event
and of the repurchase right arising as a result thereof on or before the 20th
day after the occurrence of such Designated Event. For a Note to be so
repurchased at the option of the holder, the Company must receive at the office
or agency of the Company maintained for that purpose in accordance with the
terms of the Indenture, such Note with the form entitled “Option to Elect
Repurchase Upon a Designated Event” on the reverse thereof duly completed,
together with such Note, duly endorsed for transfer, on or before the
Designated Event Expiration Time.

     Subject to the terms and conditions of the Indenture, the Company shall
become obligated to purchase in cash, at the option of the holder, all or any
portion of the Notes held by such holder on November 15, 2009, November 15,
2014 and November 15, 2019 in whole multiples of $1,000 at a purchase price of
100% of the principal amount, plus any accrued and unpaid Interest and
Additional Amounts, if any, on such Note to but excluding the Repurchase Date;
provided that if such Repurchase Date falls after a Record Date and on or prior
the corresponding Interest Payment Date, the Interest and Additional Amounts,
if any, payable on such Interest Payment Date shall be paid to the holder of
record of this Note at the close of business on the corresponding Record Date.
To exercise such right, a holder shall deliver to the Company such Note with
the form entitled “Repurchase Notice” on the reverse thereof duly completed,
together with the Note, duly endorsed for transfer, at any time from the
opening of business on the date that is twenty (20) Business Days prior to such
Repurchase Date until the close of business on the Repurchase Date, and shall
deliver the Notes to the Trustee (or other paying agent appointed by the
Company) as set forth in the Indenture.

     Holders have the right to withdraw any Option to Elect Repurchase Upon a
Designated Event or Repurchase Notice, as the case may be, by delivering to the
Trustee (or other paying agent appointed by the Company) a written notice of
withdrawal up to the close of business on the Designated Event Repurchase Date
or Repurchase Date, as the case may be, all as provided in the Indenture.

     If cash, sufficient to pay the purchase price of all Notes or portions
thereof to be purchased as of the Designated Event Repurchase Date or
Repurchase Date, as the case may be, is held by the Trustee (or other paying
agent appointed by the Company), on the Business Day following the Designated
Event Repurchase Date or Repurchase Date, as the case may be, the Notes will
cease to be Outstanding, Interest and Additional Amounts, if any, will cease to
accrue on such Notes (or portions thereof) and all other rights of the holder
of such Notes will terminate, other than the right to receive the repurchase
price upon surrender of such Note.

A-10

 

     Subject to the occurrence of certain events and in compliance with the
provisions of the Indenture, prior to the close of business on the Business Day
immediately preceding November 15, 2024, the holder hereof has the right, at
its option, to convert each $1,000 principal amount of the Notes into cash and
shares of Common Stock, if any, at a conversion rate equivalent to 24.9121 (the
“Conversion Rate”) (a conversion price of approximately $40.1411 per share),
subject to adjustment from time to time as provided in the Indenture, upon
surrender of this Note with the form entitled “Conversion Notice” on the
reverse hereof duly completed, to the Company at the office or agency of the
Company maintained for that purpose in accordance with the terms of the
Indenture, or at the option of such holder, the Corporate Trust Office, and,
unless any shares issuable on conversion are to be issued in the same name as
this Note, duly endorsed by, or accompanied by instruments of transfer in form
satisfactory to the Company duly executed by, the holder or by his duly
authorized attorney. If on any Conversion Date, the Company is required to pay
Additional Amounts pursuant to the Registration Rights Agreement, the
Conversion Rate on such date will be multiplied by 1.03. The Company will
notify the holder thereof of any event triggering the right to convert the
Notes as specified above in accordance with the Indenture.

     No adjustment in respect of Interest or Additional Amounts, if any, 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 and
Additional Amounts, if any, 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
and Additional Amounts, if any, 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 that is after a
Record Date and on or prior to the next Interest Payment Date, (2) if the
Company has specified a Designated Event Repurchase Date that is during such
period or (3) to the extent of any overdue Interest or Additional Amounts, if
any, if any overdue Interest or Additional Amounts exist at the time of
conversion with respect to such Note.

     No fractional shares will be issued upon any conversion, but a 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
repurchase upon a Designated Event or repurchase on a Repurchase Date may be
converted only if such holder withdraws its election to exercise either such
right in accordance with the terms of the Indenture.

A-11

 

     Any Notes called for redemption, unless surrendered for conversion by the
holders thereof on or before the close of business on the Business Day
preceding the redemption date, may be deemed to be redeemed from the holders of
such Notes for an amount equal to the applicable redemption price, together
with accrued but unpaid Interest and Additional Amounts, if any, to, but
excluding, the date fixed for redemption, by one or more investment banks or
other purchasers who may agree with the Company (i) to purchase such Notes from
the holders thereof and convert them pursuant to Article 17 of the Indenture
and (ii) to make payment for such Notes as aforesaid to the Trustee in trust
for the holders.

     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 therefor, subject to the limitations provided in the Indenture,
without charge except for any tax, assessment or other governmental charge
imposed in connection therewith.

     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 Interest and Additional
Amounts, if any, 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,
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-12

 

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.

A-13

 

CONVERSION NOTICE

	 	 	 
	TO:

	 	NCI BUILDING SYSTEMS, INC.

THE BANK OF NEW YORK

     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, in accordance with the terms of the
Indenture referred to in this Note, and directs that any shares of Common Stock
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:

A-14

 

	 	 	 	 	 
	

(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:	 	 
	 
	 	 	 	 
	
	 	 

A-15

 

OPTION TO ELECT REPURCHASE

UPON A DESIGNATED EVENT

	 	 	 
	TO:

	 	NCI BUILDING SYSTEMS, INC.

THE BANK OF NEW YORK

     Pursuant to the terms of the Indenture and the Notes, the undersigned
registered owner of this Note hereby irrevocably acknowledges receipt of a
notice from NCI Building Systems, Inc. (the “Company”) as to the occurrence of
a Designated Event with respect to the Company and requests and instructs the
Company to repurchase 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 and
unpaid Interest and Additional Amounts, if any, to, but excluding, the
Designated Event Repurchase Date, to the registered holder hereof. Capitalized
terms used herein but not defined shall have the meanings ascribed to such
terms in the Indenture. The Notes shall be repurchased by the Company as of
the Designated Event Repurchase Date pursuant to the terms and conditions
specified in the Notes and 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.
	 
	 	 	 	 
	

	 	 	 	Note Certificate Number, if applicable:
	 
	 	 	 	 
	

	 	 	 	

	 
	 	 	 	 
	

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

	 	 	 	

A-16

 

	 	 	 
	

	 	

Social Security or Other Taxpayer

Identification Number

A-17

 

REPURCHASE NOTICE

	 	 	 
	TO:

	 	NCI BUILDING SYSTEMS, INC.

THE BANK OF NEW YORK

     Pursuant to the terms of the Indenture and the Notes, the undersigned
registered owner of this Note hereby irrevocably acknowledges receipt of a
notice from NCI Building Systems, Inc. (the “Company”) regarding the right of
holders to elect to require the Company to repurchase the Notes and requests
and instructs the Company to repurchase the entire principal amount of this
Note, or the portion thereof (which is $1,000 or an integral multiple thereof)
below designated, in accordance with the terms of the Indenture at the price of
100% of such entire principal amount or portion thereof, together with accrued
and unpaid Interest and Additional Amounts, if any, to, but excluding, the
Repurchase Date, to the registered holder hereof. Capitalized terms used
herein but not defined shall have the meanings ascribed to such terms in the
Indenture. The Notes shall be repurchased by the Company as of the Repurchase
Date pursuant to the terms and conditions specified 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.

     Note Certificate Number, if applicable:

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

     Social Security or Other Taxpayer Identification Number:

A-18

 

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), the undersigned confirms that such
Note is being transferred:

	 	 	 	 	 
	

	 	o
	 	To NCI Building Systems, 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 that has been declared
effective under the Securities Act of 1933, as amended, and that
continues to be effective at the time of transfer;

and unless the Note has been transferred to NCI Building Systems, 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

A-19

 

	 	 	 
	

	 	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, the Repurchase Notice 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.

A-20

 

Schedule I

[Include Schedule I only for a Global Note]

NCI BUILDING SYSTEMS, INC.

2.125% Convertible Senior Subordinated Note Due 2024

     The
initial principal amount of this Note is
$           . The following
increases or decreases in the principal amount of this Note have been made:

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

	 
	 	 	 	 	 	 

A-21exv10w1

 

Exhibit 10.1

FIRST AMENDMENT TO CREDIT AGREEMENT

     THIS FIRST AMENDMENT TO CREDIT AGREEMENT, dated as of November 9, 2004
(this “First Amendment”), is by and among NCI BUILDING SYSTEMS, INC., a
Delaware corporation (the “Borrower”), certain Subsidiaries of the Borrower
party hereto, the Lenders party hereto and WACHOVIA BANK, NATIONAL ASSOCIATION,
as Administrative Agent for the Lenders (in such capacity, the “Administrative
Agent”).

W I T N E S S E T H

     WHEREAS, the Borrower, the Guarantors, the Administrative Agent and the
Lenders are parties to that certain Credit Agreement dated as of June 18, 2004
(as amended, modified, supplemented or restated from time to time, the “Credit
Agreement”; capitalized terms used herein shall have the meanings ascribed
thereto in the Credit Agreement unless otherwise defined herein);

     WHEREAS, the Borrower has requested certain amendments to the Credit
Agreement; and

     WHEREAS, the Required Lenders have agreed to such amendments of the Credit
Agreement subject to the terms and conditions contained herein.

     NOW, THEREFORE, IN CONSIDERATION of the premises and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

SECTION 1

AMENDMENTS

     1.1 Amendments to Section 1.1.

     (a) The definition of “Additional Amount” is hereby added to Section 1.1
of the Credit Agreement to read as follows:

     “Additional Amount” shall mean, the additional amount payable by the
Borrower to the holders of the Senior Subordinated Convertible Notes upon
the failure of the Borrower to register the Senior Subordinated
Convertible Notes with the Securities and Exchange Commission within
specific time periods or to keep any such registration effective for
specified periods as required pursuant to the terms thereof.

     (b) The definition of “Availability” is hereby added to Section 1.1 of the
Credit Agreement to read as follows:

 

 

     “Availability” shall mean, as of any date of determination, the
Revolving Committed Amount as of such date less outstanding LOC
Obligations less outstanding Swingline Loans less outstanding Revolving
Loans.

     (c) The definition of “Consolidated Interest Expense” in Section 1.1 of
the Credit Agreement is hereby amended and restated in its entirety to read as
follows:

     “Consolidated Interest Expense” shall mean, for any period, for the
Borrower and its Subsidiaries, on a consolidated basis, total interest
expense, whether paid or accrued (including the Additional Amount and the
interest component of Capital Leases), including, without limitation, all
commitment fees, commissions, discounts and other fees and charges owed
with respect to letters of credit and net costs under interest rate
contracts and foreign exchange contracts, but excluding, however,
amortization of debt issuance costs, all as determined in conformity with
GAAP (other than with respect to the Additional
Amount). Except as otherwise specified, the applicable period shall be
for the four consecutive quarters ending as of the date of computation.

     (d) The definition of “Subordinated Debt” in Section 1.1 of the Credit
Agreement is hereby amended and restated in its entirety to read as follows:

     “Subordinated Debt” shall mean any Indebtedness incurred by any
Credit Party which by its terms is specifically subordinated in right of
payment to the prior payment of the Credit Party Obligations and contains
subordination and other terms acceptable to the Administrative Agent,
including, without limitation, the debt evidenced by the Senior
Subordinated Convertible Notes.

     (e) The definition of “Senior Subordinated Convertible Notes” is hereby
added to Section 1.1 of the Credit Agreement to read as follows:

     “Senior Subordinated Convertible Notes” shall mean the senior
subordinated convertible notes to be issued by the Borrower on or before
January 31, 2005 in an aggregate principal amount up to $200,000,000 on
terms and conditions previously disclosed to the Lenders and otherwise
acceptable to the Administrative Agent, as such Senior Subordinated
Convertible Notes may be amended, restated, modified or supplemented and
in effect from time to time in accordance with the terms hereof.

     1.2 Amendment to Section 2.8. Section 2.8(b)(iv) of the Credit Agreement
is hereby amended and restated in its entirety to read as follows:

	 	(iv)	 	Debt Issuances. Immediately upon receipt by any Credit Party
or any of its Subsidiaries of proceeds from any Debt Issuance, the
Borrower shall prepay the Loans and/or cash collateralize the LOC
Obligations in an aggregate amount equal to 100% of the Net Cash
Proceeds of such Debt Issuance (such prepayment to be applied as set
forth in clause (vii) below); provided, however, that such Net Cash
Proceeds shall not be required to be so applied to the extent the
Borrower delivers 

2

 

	 	 	 	to the Administrative Agent a certificate stating
that it intends to use such Net Cash Proceeds to finance a Permitted
Acquisition within 90 days of the receipt of such Net Cash Proceeds
(provided that such 90 day period shall be extended to a total of
180 days from the date of receipt of such Net Cash Proceeds if (A)
during such 90 day period any Credit Party enters into a definitive
purchase agreement or binding letter of intent with respect to a
Permitted Acquisition and (B) the Leverage Ratio as of the most
recent fiscal quarter ended prior to such Debt Issuance is less than
3.0 to 1.0); provided, further, that with respect to the Senior
Subordinated Convertible Notes only, the Borrower shall not be
required to deliver to the Administrative Agent the certificate
described above and the Net Cash Proceeds of the Senior Subordinated
Convertible Notes shall not be required to be applied as a
prepayment for 12 months from the date of receipt by the Borrower of
such Net Cash Proceeds pending use by the Borrower of such Net Cash
Proceeds to finance one or more Permitted Acquisitions (or to repay
Revolving Loans used to finance Permitted Acquisitions) within such
period (provided that such 12 month period shall be extended to a
total of 18 months from the date of receipt of such Net Cash
Proceeds if during such 12 month period any Credit Party enters into
a definitive purchase agreement or binding letter of intent with
respect to a Permitted Acquisition), it being expressly agreed that
any Net Cash Proceeds not used in connection with a Permitted
Acquisition within such applicable period (or used to repay
Revolving Loans used to finance Permitted Acquisitions) shall be
applied to repay the Loans and/or cash collateralize the LOC
Obligations immediately following the end of such applicable period.

     1.3 Amendment to Section 6.11. Section 6.11 of the Credit Agreement is
hereby amended and restated in its entirety to read as follows:

     Section 6.11 Restricted Payments.

     Declare, order, make or set apart any sum for or pay any Restricted
Payment, except (a) to make dividends payable solely in the same class of
Capital Stock of such Person, (b) to make dividends or other
distributions payable to the Borrower or a Domestic Subsidiary, (c) the
Borrower may repurchase shares of its Capital Stock in respect of
employee benefit plans and stock options in an aggregate amount not to
exceed $5,000,000 during any fiscal year, (d) so long as no Default or
Event of Default shall have occurred and be continuing or would result
therefrom, the Borrower may make regularly scheduled payments of interest
in respect of Subordinated Indebtedness (including, without limitation,
the Senior Subordinated Convertible Notes and the Additional Amount), (e)
so long as no Default or Event of Default shall have occurred and be
continuing and the Borrower demonstrates pro forma compliance with the
financial covenants set forth in Section 5.9, the Borrower may
repurchase shares of its Capital Stock and/or pay cash dividends in an aggregate
amount during the term of this Credit Agreement not to exceed $25,000,000
plus 25% of Consolidated Net Income since the Closing Date, (f) so long
as no Default or Event of Default shall have occurred and be

3

 

continuing
or would result therefrom, the Borrower may make cash payments on the
Senior Subordinated Convertible Notes as may be required pursuant to the
terms thereof upon the conversion for cash at the option of the holders
of the Senior Subordinated Convertible Notes and (g) so long as no
Default or Event of Default shall have occurred and be continuing or
would result therefrom, the Borrower may repurchase the Senior
Subordinated Convertible Notes on or after November 15, 2009 if required
to do so by the holders thereof; provided that the payments referred to
in clauses (f) and (g) shall be permitted only to the extent the Borrower
can demonstrate (i) (A) that the Senior Leverage Ratio is less than (x)
with respect to payments made on or prior to April 30, 2008, 3.00 to 1.0
and (y) with respect to payments made after April 30, 2008, 2.75 to 1.00,
in each case on a pro forma basis after giving effect to such payment and
(B) Availability of at least $25,000,000 after giving effect to such
payment or (ii) that the Senior Leverage Ratio is less than 1.0 to 1.0.

SECTION 2

CLOSING CONDITIONS

     2.1 Closing Conditions.

     This First Amendment shall become effective at such time as the following
conditions shall have been satisfied (in form and substance reasonably
acceptable to the Administrative Agent):

     (a) Executed Amendment. Receipt by the Administrative Agent of a
copy of this First Amendment duly executed by each of the Credit Parties
and the Required Lenders;

     (b) Amendment Fee. Subject to approval of this First Amendment by
the Required Lenders, the payment by the Borrower of an amendment fee to
the Administrative Agent, for the pro rata benefit of the Lenders that
execute and deliver counterparts to this First Amendment by 5:00 p.m.
Eastern Time on November 5, 2004 (the “Consenting Lenders”), in an amount
equal to 5.0 basis points (.050%) of the aggregate Commitments of such
Consenting Lenders; and

     (c) Expenses. The Agents and the Lenders shall have received from
the Borrower the aggregate amount of expenses payable in connection with
the consummation of the transactions contemplated hereby.

4

 

SECTION 3

MISCELLANEOUS

     3.1 Amended Terms. The term “Credit Agreement” as used in each of the
Credit Documents shall hereafter mean the Credit Agreement as amended by this
First Amendment. Except as specifically amended hereby or otherwise agreed,
the Credit Agreement and the other Credit Documents are hereby ratified and
confirmed and shall remain in full force and effect according to their terms.

     3.2 Representations and Warranties of Credit Parties. Each of the Credit
Parties represents and warrants as follows:

     (a) It has taken all necessary action to authorize the execution,
delivery and performance of this First Amendment.

     (b) This First Amendment has been duly executed and delivered by
such Person and constitutes such Person’s legal, valid and binding
obligations, enforceable in accordance with its terms, except as such
enforceability may be subject to (i) bankruptcy, insolvency,
reorganization, fraudulent conveyance or transfer, moratorium or similar
laws affecting creditors’ rights generally and (ii) general principles of
equity (regardless of whether such enforceability is considered in a
proceeding at law or in equity).

     (c) No consent, approval, authorization or order of, or filing,
registration or qualification with, any court or governmental authority
or third party is required in connection with the execution, delivery or
performance by such Person of this First Amendment.

     (d) The representations and warranties set forth in Article III of
the Credit Agreement are true and correct in all material respects as of
the date hereof except for those which expressly relate to an earlier
date.

     (e) After giving effect to this First Amendment, no event has
occurred and is continuing which constitutes a Default or an Event of
Default.

     (f) The Security Documents continue to create a valid security
interest in, and Lien upon, the Collateral, in favor of the
Administrative Agent, for the benefit of the Lenders, which security
interests and Liens are perfected in accordance with the terms of the
Security Documents and prior to all Liens other than Permitted Liens.

     (g) Except as specifically provided in this First Amendment, the
Credit Party Obligations are not reduced or modified by this First
Amendment and are not subject to any offsets, defenses or counterclaims.

5

 

     3.3 Reaffirmation of Credit Party Obligations. Each Credit Party hereby
ratifies the Credit Agreement and acknowledges and reaffirms (a) that it is
bound by all terms of the Credit Agreement applicable to it and (b) that it is
responsible for the observance and full performance of its respective Credit
Party Obligations.

     3.4 Instrument Pursuant to Credit Agreement. This First Amendment is a
Credit Document executed pursuant to the Credit Agreement and shall be
construed, administered and applied in accordance with the terms and provisions
of the Credit Agreement.

     3.5 Further Assurances. The Credit Parties agree to promptly take such
action, upon the request of the Administrative Agent, as is necessary to carry
out the intent of this First Amendment.

     3.6 Expenses. The Borrower agrees to pay all reasonable costs and
expenses of the Administrative Agent in connection with the preparation,
negotiation, execution and delivery of this First Amendment, including, without
limitation, the reasonable fees and expenses of Moore & Van Allen PLLC, and all
previously incurred fees and expenses which remain outstanding on the date
hereof.

     3.7 GOVERNING LAW. THIS FIRST AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF
THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NORTH CAROLINA.

     3.8 Counterparts/Telecopy. This First Amendment may be executed by the
parties hereto in several counterparts, each of which shall be deemed to be an
original and all of which shall constitute together but one and
the same agreement. Delivery of executed counterparts of the First Amendment
by telecopy shall be effective as an original and shall constitute a
representation that an original shall be delivered.

     3.9 Successors and Assigns. This First Amendment shall be binding upon
and inure to the benefit of the parties hereto and their respective successors
and assigns.

[Signature Pages to Follow]

6

 

     IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of
this First Amendment to be duly executed and delivered as of the date first
above written.

	 	 	 	 	 
	BORROWER:	 	NCI BUILDING SYSTEMS, INC.
	 
	 	 	 	 
	

	 	By:	 	/s/ Robert J. Medlock
	

	 	 	 	
 
	

	 	 	 	Robert J. Medlock
	

	 	 	 	Executive Vice President and

Chief Financial Officer
	 
	 	 	 	 
	GUARANTORS:	 	NCI HOLDING CORP.

NCI OPERATING CORP.

METAL COATERS OF CALIFORNIA, INC.
	 
	 	 	 	 
	

	 	By:	 	/s/ Robert J. Medlock
	

	 	 	 	
 
	

	 	 	 	Robert J. Medlock
	

	 	 	 	Executive Vice President and

Chief Financial Officer
	 
	 	 	 	 
	 	 	A & S BUILDING SYSTEMS, L.P.

NCI BUILDING SYSTEMS, L.P.

METAL BUILDING COMPONENTS, L.P.

NCI GROUP, L.P.
	 
	 	 	 	 
	

	 	 	 	NCI OPERATING CORP.,

as General Partner
	 
	 	 	 	 
	

	 	By:	 	/s/ Robert J. Medlock
	

	 	 	 	
 
	

	 	 	 	Robert J. Medlock
	

	 	 	 	Executive Vice President and

Chief Financial Officer

 

 

	 	 	 	 	 
	ADMINISTRATIVE AGENT

AND LENDERS:	 	WACHOVIA
BANK, NATIONAL

ASSOCIATION,

as Administrative Agent and as a Lender
	 
	 	 	 	 
	

	 	By:	 	/s/ Andrew G. Payne 
	

	 	 	 	
 
	

	 	 	 	Name:  Andrew G. Payne
	

	 	 	 	Title:    Director
	 
	 	 	 	 
	

	 	 	 	
 
	

	 	 	 	as a Lender
	 
	 	 	 	 
	

	 	By:	 	/s/ Andrew G. Payne 
	

	 	 	 	
 
	

	 	 	 	Name:  Andrew G. Payne
	

	 	 	 	Title:    Director

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