Document:

EXHIBIT 4.1

 

 

 

 

OPTION CARE, INC.

and

LASALLE BANK NATIONAL ASSOCIATION

as Trustee

 

 

INDENTURE

 

Dated as of November 2, 2004

 

 

$75,000,000 Principal Amount

 

2.25%
CONVERTIBLE SENIOR NOTES DUE 2024

 

 

 

 

CROSS-REFERENCE TABLE

 

	
  TIA

  Section

  	
   

  	
  Indenture 

  Section

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  310(a)(1)

  	
   

  	
  7.10

  	
   

  
	
  (a)(2)

  	
   

  	
  7.10

  	
   

  
	
  (a)(3)

  	
   

  	
  N.A.

  	
   

  
	
  (a)(4)

  	
   

  	
  N.A.

  	
   

  
	
  (a)(5)

  	
   

  	
  N.A.

  	
   

  
	
  (b)

  	
   

  	
  7.08;
  7.10; 11.02

  	
   

  
	
  (c)

  	
   

  	
  N.A.

  	
   

  
	
  311(a)

  	
   

  	
  7.11

  	
   

  
	
  (b)

  	
   

  	
  7.11

  	
   

  
	
  (c)

  	
   

  	
  N.A.

  	
   

  
	
  312(a)

  	
   

  	
  2.05

  	
   

  
	
  (b)

  	
   

  	
  11.03

  	
   

  
	
  (c)

  	
   

  	
  11.03

  	
   

  
	
  313(a)

  	
   

  	
  7.06

  	
   

  
	
  (b)(1)

  	
   

  	
  N.A.

  	
   

  
	
  (b)(2)

  	
   

  	
  7.06

  	
   

  
	
  (c)

  	
   

  	
  7.06;
  11.02

  	
   

  
	
  (d)

  	
   

  	
  7.06

  	
   

  
	
  314(a)

  	
   

  	
  4.03

  	
   

  
	
  (b)

  	
   

  	
  N.A.

  	
   

  
	
  (c)(1)

  	
   

  	
  11.04

  	
   

  
	
  (c)(2)

  	
   

  	
  11.04

  	
   

  
	
  (c)(3)

  	
   

  	
  N.A.

  	
   

  
	
  (d)

  	
   

  	
  N.A.

  	
   

  
	
  (e)

  	
   

  	
  11.05

  	
   

  
	
  (f)

  	
   

  	
  N.A.

  	
   

  
	
  315(a)

  	
   

  	
  7.01(B)

  	
   

  
	
  (b)

  	
   

  	
  7.05;
  11.02

  	
   

  
	
  (c)

  	
   

  	
  7.01(A)

  	
   

  
	
  (d)

  	
   

  	
  7.01(C)

  	
   

  
	
  (e)

  	
   

  	
  6.11

  	
   

  
	
  316(a) (last sentence)

  	
   

  	
  2.09

  	
   

  
	
  (a)(1)(A)

  	
   

  	
  6.05

  	
   

  
	
  (a)(1)(B)

  	
   

  	
  6.04

  	
   

  
	
  (a)(2)

  	
   

  	
  N.A.

  	
   

  
	
  (b)

  	
   

  	
  6.07

  	
   

  
	
  (c)

  	
   

  	
  N.A.

  	
   

  
	
  317(a)(1)

  	
   

  	
  6.08

  	
   

  
	
  (a)(2)

  	
   

  	
  6.09

  	
   

  
	
  (b)

  	
   

  	
  2.04

  	
   

  
	
  318(a)

  	
   

  	
  11.01

  	
   

  

 

1

 

TABLE OF CONTENTS

 

	
  I.

  	
  DEFINITIONS
  AND INCORPORATION BY REFERENCE

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  1.01 Definitions.

  	
   

  
	
   

  	
  1.02 Other Definitions.

  	
   

  
	
   

  	
  1.03 Incorporation by Reference of Trust
  Indenture Act.

  	
   

  
	
   

  	
  1.04 Rules of Construction.

  	
   

  
	
   

  	
   

  	
   

  
	
  II.

  	
  THE SECURITIES

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  2.01 Form and Dating.

  	
   

  
	
   

  	
  2.02 Execution and Authentication.

  	
   

  
	
   

  	
  2.03 Registrar, Paying Agent and
  Conversion Agent.

  	
   

  
	
   

  	
  2.04 Paying Agent to Hold Money in Trust.

  	
   

  
	
   

  	
  2.05 Securityholder Lists.

  	
   

  
	
   

  	
  2.06 Transfer and Exchange.

  	
   

  
	
   

  	
  2.07 Replacement Securities.

  	
   

  
	
   

  	
  2.08 Outstanding Securities.

  	
   

  
	
   

  	
  2.09 Securities Held by the
  Company or an Affiliate.

  	
   

  
	
   

  	
  2.10 Temporary Securities.

  	
   

  
	
   

  	
  2.11 Cancellation.

  	
   

  
	
   

  	
  2.12 Defaulted Interest.

  	
   

  
	
   

  	
  2.13 CUSIP Numbers.

  	
   

  
	
   

  	
  2.14 Deposit of Moneys.

  	
   

  
	
   

  	
  2.15 Book-Entry Provisions
  for Global Securities.

  	
   

  
	
   

  	
  2.16 Special Transfer Provisions.

  	
   

  
	
   

  	
  2.17 Restrictive Legends.

  	
   

  
	
   

  	
  2.18 Ranking.

  	
   

  
	
   

  	
   

  	
   

  
	
  III.

  	
  REDEMPTION AND REPURCHASE

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  3.01 Right of Redemption.

  	
   

  
	
   

  	
  3.02 Notices to Trustee.

  	
   

  
	
   

  	
  3.03 Selection of Securities
  to Be Redeemed.

  	
   

  
	
   

  	
  3.04 Notice of Redemption.

  	
   

  
	
   

  	
  3.05 Effect of Notice of
  Redemption.

  	
   

  
	
   

  	
  3.06 Deposit of Redemption
  Price.

  	
   

  
	
   

  	
  3.07 Securities Redeemed in
  Part.

  	
   

  
	
   

  	
  3.08 Purchase of Securities
  at Option of the Holder.

  	
   

  
	
   

  	
  3.09 Repurchase at Option
  of Holder Upon a Fundamental Change.

  	
   

  
	
   

  	
   

  	
   

  
	
  IV.

  	
  COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  4.01 Payment of Securities.

  	
   

  

 

i

 

	
   

  	
  4.02 Maintenance of Office or
  Agency.

  	
   

  
	
   

  	
  4.03 Rule 144A Information and
  Annual Reports.

  	
   

  
	
   

  	
  4.04 Compliance Certificate.

  	
   

  
	
   

  	
  4.05 Stay, Extension and Usury Laws.

  	
   

  
	
   

  	
  4.06 Corporate Existence.

  	
   

  
	
   

  	
  4.07 Notice of Default.

  	
   

  
	
   

  	
  4.08 Further Instruments and Acts.

  	
   

  
	
   

  	
   

  	
   

  
	
  V.

  	
  SUCCESSORS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  5.01 When Company May Merge, etc.

  	
   

  
	
   

  	
  5.02 Successor Substituted.

  	
   

  
	
   

  	
   

  	
   

  
	
  VI.

  	
  DEFAULTS AND REMEDIES

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  6.01 Events of Default.

  	
   

  
	
   

  	
  6.02 Acceleration.

  	
   

  
	
   

  	
  6.03 Other Remedies.

  	
   

  
	
   

  	
  6.04 Waiver of Past Defaults.

  	
   

  
	
   

  	
  6.05 Control by Majority.

  	
   

  
	
   

  	
  6.06 Limitation on Suits.

  	
   

  
	
   

  	
  6.07 Rights of Holders to
  Receive Payment.

  	
   

  
	
   

  	
  6.08 Collection Suit by Trustee.

  	
   

  
	
   

  	
  6.09 Trustee May File Proofs of
  Claim.

  	
   

  
	
   

  	
  6.10 Priorities.

  	
   

  
	
   

  	
  6.11 Undertaking for Costs.

  	
   

  
	
   

  	
   

  	
   

  
	
  VII.

  	
  TRUSTEE

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  7.01 Duties of Trustee.

  	
   

  
	
   

  	
  7.02 Rights of Trustee.

  	
   

  
	
   

  	
  7.03 Individual Rights of Trustee.

  	
   

  
	
   

  	
  7.04 Trustee’s Disclaimer.

  	
   

  
	
   

  	
  7.05 Notice of Defaults.

  	
   

  
	
   

  	
  7.06 Reports by Trustee to
  Holders.

  	
   

  
	
   

  	
  7.07 Compensation and Indemnity.

  	
   

  
	
   

  	
  7.08 Replacement of Trustee.

  	
   

  
	
   

  	
  7.09 Successor Trustee by Merger, etc.

  	
   

  
	
   

  	
  7.10 Eligibility; Disqualification.

  	
   

  
	
   

  	
  7.11 Preferential Collection of Claims
  Against Company.

  	
   

  
	
   

  	
   

  	
   

  
	
  VIII.

  	
  DISCHARGE OF INDENTURE

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  8.01 Termination of the Obligations of the
  Company.

  	
   

  
	
   

  	
  8.02 Application of Trust Money.

  	
   

  
	
   

  	
  8.03 Repayment to Company.

  	
   

  
	
   

  	
  8.04 Reinstatement.

  	
   

  

 

ii

 

	
  IX.

  	
  AMENDMENTS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  9.01 Without Consent of Holders.

  	
   

  
	
   

  	
  9.02 With Consent of Holders.

  	
   

  
	
   

  	
  9.03 Compliance with Trust
  Indenture Act.

  	
   

  
	
   

  	
  9.04 Revocation and Effect
  of Consents.

  	
   

  
	
   

  	
  9.05 Notation on or
  Exchange of Securities.

  	
   

  
	
   

  	
  9.06 Trustee Protected.

  	
   

  
	
   

  	
   

  	
   

  
	
  X.

  	
  CONVERSION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  10.01 Conversion Privilege;
  Restrictive Legends.

  	
   

  
	
   

  	
  10.02 Conversion Procedure
  and Payment Upon Conversion.

  	
   

  
	
   

  	
  10.03 Taxes on Conversion.

  	
   

  
	
   

  	
  10.04 Company to Provide Stock.

  	
   

  
	
   

  	
  10.05 Adjustment of Conversion
  Rate.

  	
   

  
	
   

  	
  10.06 No Adjustment.

  	
   

  
	
   

  	
  10.07 Other Adjustments.

  	
   

  
	
   

  	
  10.08 Adjustments for Tax
  Purposes.

  	
   

  
	
   

  	
  10.09 Notice of Adjustment.

  	
   

  
	
   

  	
  10.10 Notice of
  Certain Transactions.

  	
   

  
	
   

  	
  10.11   Effect
  of Reclassifications, Consolidations, Mergers, Binding Share Exchanges or
  Sales on Conversion Privilege.

  	
   

  
	
   

  	
  10.12 Trustee’s Disclaimer.

  	
   

  
	
   

  	
  10.13 Rights Distributions
  Pursuant to Stockholders’ Rights Plans.

  	
   

  
	
   

  	
   

  	
   

  
	
  XI.

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  11.01 Trust Indenture Act
  Controls.

  	
   

  
	
   

  	
  11.02 Notices.

  	
   

  
	
   

  	
  11.03 Communication by Holders
  with Other Holders.

  	
   

  
	
   

  	
  11.04 Certificate and
  Opinion as to Conditions Precedent.

  	
   

  
	
   

  	
  11.05 Statements Required in
  Certificate or Opinion.

  	
   

  
	
   

  	
  11.06 Rules by Trustee and Agents.

  	
   

  
	
   

  	
  11.07 Legal Holidays.

  	
   

  
	
   

  	
  11.08 Duplicate Originals.

  	
   

  
	
   

  	
  11.09 Governing Law.

  	
   

  
	
   

  	
  11.10 No Adverse
  Interpretation of Other Agreements.

  	
   

  
	
   

  	
  11.11 Successors.

  	
   

  
	
   

  	
  11.12 Separability.

  	
   

  
	
   

  	
  11.13 Table of Contents, Headings,
  etc.

  	
   

  
	
   

  	
  11.14 Calculations in
  Respect of the Securities.

  	
   

  

 

	
  Exhibit A

  	
  -

  	
  Form of Global Security

  
	
   

  	
   

  	
   

  
	
  Exhibit B-1

  	
  -

  	
  Form of Private Placement Legend

  

 

iii

 

	
  Exhibit B-2

  	
  -

  	
  Form of Legend for Global Security

  
	
   

  	
   

  	
   

  
	
  Exhibit C

  	
  -

  	
  Form of Notice of Transfer Pursuant to
  Registration Statement

  
	
   

  	
   

  	
   

  
	
  Exhibit D

  	
  -

  	
  Form of Opinion of Counsel in Connection with
  Registration of Securities

  

 

iv

 

INDENTURE, dated as of November 2, 2004, between Option
Care, Inc., a Delaware corporation (the “Company”), and LaSalle
Bank National Association, as trustee (the “Trustee”).

 

Each party agrees as follows for the benefit
of the other parties and for the equal and ratable benefit of the Holders of
the Company’s 2.25% Convertible Senior Notes due 2024 (the “Securities”).

 

I.                                         DEFINITIONS AND INCORPORATION BY
REFERENCE

 

1.01                           DEFINITIONS.

 

The term “additional
interest” has the meaning ascribed to it in the Registration Rights
Agreement.

 

An “Affiliate” of a
specified person means any Person directly or indirectly controlling or
controlled by or under direct or indirect common control with such specified
person.  For this purpose, “control”
shall mean the power to direct the management and policies of a person through
the ownership of securities, by contract or otherwise.

 

“Bid Solicitation Agent” means a Company-appointed agent that performs calculations as
set forth in Article X and paragraph 10
of the Securities.

 

“Board of Directors”
means the Board of Directors of the Company or any committee thereof authorized
to act for it hereunder.

 

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

 

“Capital Stock”
of any Person means any and all shares, interests, participations or other
equivalents (however designated) of capital stock of such Person and all
warrants or options to acquire such capital stock.

 

“Closing Sale Price”
means the price of a share of Common Stock on the relevant date, determined (a)
on the basis of the closing per share sale price (or if no closing sale price
is reported, the average of the bid and ask prices or, if more than one in
either case, the average of the average bid and the average ask prices) on such
date on the U.S. principal national securities exchange on which the Common
Stock is listed; or (b) if the Common Stock is not listed on a U.S. national
securities exchange, as reported by the National Association of Securities
Dealers Automated Quotation System; or (c) if not so quoted, as reported by
National Quotation Bureau, Incorporated or a similar organization.  In the absence of a quotation, the Closing
Sale Price shall be such price as the Company shall reasonably determine on the
basis of such quotations as most accurately reflecting the price that a fully
informed buyer, acting on his own accord, would pay to a fully informed seller,
acting on his own accord in an arms-length transaction, for a share of such
Common Stock.

 

1

 

“Common Stock”
means the common stock, $0.01 par value per share, of the Company, or such
other Capital Stock of the Company into which the Company’s common stock is
reclassified or changed.

 

“Company” means
the party named as such above until a successor replaces it pursuant to the applicable
provision hereof and thereafter means the successor.

 

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

 

“Conversion Rate”
shall initially be 55.5278 shares of Common Stock per $1,000 principal amount
of Securities, subject to adjustment as provided in Article X.

 

“Conversion Price” means, as of any date of determination, the dollar amount
derived by dividing one thousand dollars ($1,000) by the Conversion Rate in
effect on such date.

 

“Corporate Trust Office of
the Trustee” shall be at the address of the Trustee specified in Section 11.02 or such other address as the Trustee may give
notice of to the Company.

 

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

 

“Depositary”
means The Depository Trust Company, its nominees and successors.

 

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

 

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

 

“Indebtedness”
of a person means the principal of, premium, if any, and interest on, and all
other obligations in respect of (a) all indebtedness of such person for
borrowed money (including all indebtedness evidenced by notes, bonds,
debentures or other securities), (b) all obligations (other than trade
payables) incurred by such person in the acquisition (whether by way of
purchase, merger, consolidation or otherwise and whether by such person or
another person) of any business, real property or other assets, (c) all
reimbursement obligations of such person with respect to letters of credit,
bankers’ acceptances or similar facilities issued for the account of such
person, (d) all capital lease obligations of such person, (e) all net
obligations of such person under interest rate swap, currency exchange or
similar agreements of such person, (f) all obligations and other liabilities,
contingent or otherwise, under any lease or related document, including a
purchase agreement, conditional sale or other title retention agreement, in
connection with the lease of real property or improvements thereon (or any
personal property included as part of any such lease) which provides that such
person is contractually obligated to purchase or cause a third party to
purchase the leased property or pay an agreed-upon residual value of the leased
property, including such person’s obligations under such lease or related

 

2

 

document to purchase or
cause a third party to purchase such leased property or pay an agreed-upon
residual value of the leased property to the lessor, (g) guarantees by such person
of indebtedness described in clauses (a) through (f)
of another person, and (h) all renewals, extensions, refundings, deferrals,
restructurings, amendments and modifications of any indebtedness, obligation,
guarantee or liability of the kind described in clauses (a)
through (g).

 

“Indenture”
means this Indenture as amended or supplemented from time to time.

 

“Initial Purchasers”
means UBS Securities LLC and Piper Jaffray & Co.

 

“Issue Date”
means November 2, 2004.

 

“Make-Whole Fundamental Change” means a Fundamental Change that (i) is a transaction or series of
transactions as a result of which fifty percent (50%) or more of the shares of
Common Stock outstanding immediately before such Fundamental Change are
exchanged for, converted into, acquired for, or constitute solely the right to
receive, shares of stock or other securities or property (including cash), or
any combination thereof; and (ii) occurs before November 1, 2009.

 

“Maturity Date”
means November 1, 2024.

 

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

 

“Officers’ Certificate”
means a certificate signed by two (2) Officers or by an Officer and an
Assistant Treasurer or an Assistant Secretary of the Company.

 

“Opinion of Counsel”
means a written opinion from legal counsel who may be an employee of or counsel
for the Company, or other counsel reasonably acceptable to the Trustee.

 

“Option” means the Initial Purchasers’ option to acquire up to $11,250,000
aggregate principal amount of additional Securities (“Additional
Securities”) as provided for in the Purchase Agreement.

 

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

 

“Purchase Agreement”
means the Purchase Agreement dated October 28, 2004 among the Company and the
Initial Purchasers.

 

“Purchase Notice”
means a Purchase Notice in the form set forth in the Securities.

 

“QIB” means a “qualified
institutional buyer” within the meaning of Rule 144A under the Securities Act.

 

3

 

“Redemption Date”
means the date specified for Redemption of the Securities in accordance with
the terms of the Securities and this Indenture.

 

“Redemption Price”
means, with respect to a Security to be redeemed by the Company in accordance
with Article III, one hundred percent (100%)
of the outstanding principal amount of such Security to be redeemed.

 

“Registration Rights
Agreement” means the Registration Rights Agreement dated as of the
date hereof among the Company and the Initial Purchasers.

 

“Responsible Officer”
shall mean, when used with respect to the Trustee, any officer within the
corporate trust department of the Trustee, including any vice president,
assistant vice president, assistant secretary, assistant treasurer, trust
officer or any other officer of the Trustee who customarily performs functions
similar to those performed by the Persons who at the time shall be such
officers, respectively, or to whom any corporate trust matter is referred
because of such person’s knowledge of and familiarity with the particular
subject and who shall have direct responsibility for the administration of this
Indenture.

 

“Restricted Security”
means a Security that constitutes a “restricted security” within the meaning of
Rule 144(a)(3) under the Securities Act; provided, however, that the Trustee shall be entitled to request and
conclusively rely on an Opinion of Counsel with respect to whether any Security
constitutes a Restricted Security.

 

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

 

“SEC” means the
Securities and Exchange Commission.

 

“Securities”
means the 2.25% Convertible Senior Notes due 2024 issued by the Company
pursuant to this Indenture.

 

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

 

“Security Agent”
means any Registrar, Paying Agent, Conversion Agent, Bid Solicitation Agent or
co-Registrar or co-agent.

 

“Significant Subsidiary”
with respect to any person means any subsidiary of such person that constitutes
a “significant subsidiary” within the meaning of Rule 1-02(w) of Regulation S-X
under the Securities Act, as such regulation is in effect on the date of this
Indenture.

 

“Subsidiary”
means (i) a corporation a majority of whose Capital Stock with voting power,
under ordinary circumstances, to elect directors is at the time, directly or
indirectly, owned by the Company, by one or more subsidiaries of the Company or
by the Company and one or more of its subsidiaries or (ii) any other person
(other than a corporation) in which the Company, one or more its subsidiaries
or the Company and one or more its subsidiaries, directly or indirectly, at the
date of determination thereof, have at least majority ownership interest.

 

4

 

“TIA” means the
Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) as amended and in
effect from time to time.

 

“Trading Day”
means a day during which trading in securities generally occurs on the
principal national or regional securities exchange in the United States on
which the Common Stock is then listed or, if the Common Stock is not listed on
a national or regional securities exchange in the United States, on the
National Association of Securities Dealers Automated Quotation System or, if
the Common Stock is not quoted on the National Association of Securities
Dealers Automated Quotation System, on the principal other market on which the
Common Stock is then traded.

 

“Trading Price” means,
on any date, the average of the secondary market bid quotations for the
Securities obtained by the Bid Solicitation Agent on behalf of the Trustee for
five million dollars ($5,000,000) principal amount of Securities at
approximately 4:00 p.m., New York City time, on such date, from three (3)
independent, nationally recognized securities dealers selected by the Company; provided, that if the Bid Solicitation Agent on behalf of
the Trustee can reasonably obtain only two (2) such bids, then the average of
such two (2) bids shall instead be used; provided further,
that if the Bid Solicitation Agent on behalf of the Trustee can reasonably
obtain only one (1) such bid, then such bid shall instead be used; provided further, that if, on a given date, the Bid Solicitation
Agent on behalf of the Trustee cannot reasonably obtain at least one (1) such
bid, or if, in reasonable, good faith judgment of the Board of Directors, which
judgment shall be described in a Board Resolution, the bid quotation or
quotations so obtained by the Bid Solicitation Agent on behalf of the Trustee
are not indicative of the secondary market value of the Securities, then, in
each case, the Trading Price per $1,000 principal amount of Securities on the such
date of determination shall be deemed to be equal to the product of (I) the
Conversion Rate in effect on such date and (II) 97% of the Closing Sale Price on
such date.

 

“Trustee” means
the party named as such in this Indenture until a successor replaces it in
accordance with the provisions hereof and thereafter means the successor.

 

“Voting Stock”
of any Person means the total voting power of all classes of the Capital Stock
of such Person entitled to vote generally in the election of directors of such
Person.

 

1.02                           OTHER
DEFINITIONS.

 

	
  Term

  	
   

  	
  Defined in Section

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  “Additional
  Securities”

  	
   

  	
  1.01

  	
   

  
	
  “Aggregate
  Amount”

  	
   

  	
  10.05

  	
   

  
	
  “Applicable
  Percentage”

  	
   

  	
  3.09

  	
   

  
	
  “Applicable
  Price”

  	
   

  	
  3.09

  	
   

  
	
  “Bankruptcy
  Law”

  	
   

  	
  6.01

  	
   

  
	
  “Business
  Day”

  	
   

  	
  11.07

  	
   

  
	
  “Change in
  Control”

  	
   

  	
  3.09

  	
   

  
	
  “Conversion
  Agent”

  	
   

  	
  2.03

  	
   

  
	
  “Conversion
  Date”

  	
   

  	
  10.02

  	
   

  
	
  “Conversion
  Value Determination Date”

  	
   

  	
  10.02

  	
   

  

 

5

 

	
  “Conversion
  Value”

  	
   

  	
  10.01

  	
   

  
	
  “Custodian”

  	
   

  	
  6.01

  	
   

  
	
  “Determination
  Date”

  	
   

  	
  10.05

  	
   

  
	
  “Distribution
  Date”

  	
   

  	
  10.05

  	
   

  
	
  “Effective
  Date”

  	
   

  	
  3.09

  	
   

  
	
  “Event of
  Default”

  	
   

  	
  6.01

  	
   

  
	
  “Ex Date”

  	
   

  	
  10.05

  	
   

  
	
  “Excess
  Payment Per Share”

  	
   

  	
  10.05

  	
   

  
	
  “Expiration
  Date”

  	
   

  	
  10.05

  	
   

  
	
  “Expiration
  Time”

  	
   

  	
  10.05

  	
   

  
	
  “Fundamental
  Change”

  	
   

  	
  3.09

  	
   

  
	
  “Fundamental
  Change Notice”

  	
   

  	
  3.09

  	
   

  
	
  “Fundamental
  Change Repurchase Date”

  	
   

  	
  3.09

  	
   

  
	
  “Fundamental
  Change Repurchase Price”

  	
   

  	
  3.09

  	
   

  
	
  “Fundamental
  Change Repurchase Right”

  	
   

  	
  3.09

  	
   

  
	
  “Global
  Security”

  	
   

  	
  2.01

  	
   

  
	
  “Legal
  Holiday”

  	
   

  	
  11.07

  	
   

  
	
  “Make-Whole
  Premium”

  	
   

  	
  3.09

  	
   

  
	
  “Net Share
  Amount”

  	
   

  	
  10.02

  	
   

  
	
  “Net Shares”

  	
   

  	
  10.02

  	
   

  
	
  “Net Share
  Settlement  Conversion Value”

  	
   

  	
  10.02

  	
   

  
	
  “Notice of
  Default”

  	
   

  	
  6.01

  	
   

  
	
  “Note
  Measurement Period”

  	
   

  	
  10.01

  	
   

  
	
  “Option
  Purchase Date”

  	
   

  	
  3.08

  	
   

  
	
  “Option
  Purchase Notice”

  	
   

  	
  3.08

  	
   

  
	
  “Option
  Purchase Price”

  	
   

  	
  3.08

  	
   

  
	
  “Participants”

  	
   

  	
  2.15

  	
   

  
	
  “Paying
  Agent”

  	
   

  	
  2.03

  	
   

  
	
  “Physical
  Securities”

  	
   

  	
  2.01

  	
   

  
	
  “Principal
  Return”

  	
   

  	
  10.02

  	
   

  
	
  “Private
  Placement Legend”

  	
   

  	
  2.17

  	
   

  
	
  “Purchase
  at Holder’s Option”

  	
   

  	
  3.01

  	
   

  
	
  “Purchased
  Shares”

  	
   

  	
  10.05

  	
   

  
	
  “Qualifying
  Foreign Merger”

  	
   

  	
  5.01

  	
   

  
	
  “Redemption”

  	
   

  	
  3.01

  	
   

  
	
  “Reference Conversion Rate”

  	
   

  	
  10.02

  	
   

  
	
  “Reference
  Property”

  	
   

  	
  10.11

  	
   

  
	
  “Registrar”

  	
   

  	
  2.03

  	
   

  
	
  “Repurchase
  Upon Fundamental Change”

  	
   

  	
  3.01

  	
   

  
	
  “Resale
  Restriction Termination Date”

  	
   

  	
  2.17

  	
   

  
	
  “Available Shares”

  	
   

  	
  10.02

  	
   

  
	
  “Rights”

  	
   

  	
  10.05

  	
   

  
	
  “Ten-Day Weighted Average Price Per
  Share”

  	
   

  	
  10.02

  	
   

  
	
  “Termination
  of Trading”

  	
   

  	
  3.09

  	
   

  
	
  “Third
  Party Aggregate Amount”

  	
   

  	
  10.05

  	
   

  
	
  “Third
  Party Expiration Date”

  	
   

  	
  10.05

  	
   

  
	
  “Third
  Party Expiration Time”

  	
   

  	
  10.05

  	
   

  

 

6

 

	
  “Third
  Party Purchased Shares”

  	
   

  	
  10.05

  	
   

  
	
  “Trading
  Price Condition”

  	
   

  	
  10.01

  	
   

  
	
  “Underlying
  Shares”

  	
   

  	
  10.05

  	
   

  
	
  “Volume-Weighted Average Price”

  	
   

  	
  10.02

  	
   

  

 

1.03                           INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT.

 

Whenever this Indenture refers to a provision
of the TIA, the provision is incorporated by reference in and made a part of
this Indenture.

 

The following TIA terms used in this
Indenture have the following meanings:

 

“Commission”
means the SEC;

“indenture securities”
means the Securities;

“indenture security holder”
means a Securityholder or a Holder;

“indenture to be qualified”
means this Indenture;

“indenture trustee”
or “institutional trustee” means the
Trustee; and

“obligor” on the
indenture securities means the Company or any successor.

 

All other terms used in this Indenture that
are defined by the TIA, defined by the TIA by reference to another statute or
defined by SEC rule under the TIA and not otherwise defined herein have the
meanings so assigned to them.

 

1.04                           RULES OF
CONSTRUCTION.

 

Unless the context otherwise requires:

 

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

 

(ii)                        an
accounting term not otherwise defined has the meaning assigned to it in
accordance with generally accepted accounting principles in effect from time to
time;

 

(iii)                     “or” is not
exclusive;

 

(iv)                    words in the
singular include the plural and in the plural include the singular;

 

(v)                       provisions
apply to successive events and transactions;

 

(vi)                    The term “premium”
includes, without limitation, any Make-Whole Premium;

 

(vii)                 the term “interest” includes additional interest, unless the context
otherwise requires or unless the terms of the Registration Rights Agreement
provide otherwise;

 

7

 

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

 

(ix)                      references
to currency shall mean the lawful currency of the United States of America,
unless the context requires otherwise.

 

II.                                     THE SECURITIES

 

2.01                           FORM AND DATING.

 

The Securities and the Trustee’s certificate
of authentication shall be substantially in the form set forth in Exhibit A, which is incorporated in and forms a part of this
Indenture.  The Securities may have
notations, legends or endorsements required by law, stock exchange rule or
usage.  Each Security shall be dated the
date of its authentication.

 

Securities offered and sold in reliance on
Rule 144A shall be issued initially in the form of one or more Global
Securities, substantially in the form set forth in Exhibit
A (the “Global
Security”), deposited with the Trustee, as custodian for the
Depositary, duly executed by the Company and authenticated by the Trustee as
hereinafter provided and bearing the legends set forth in Exhibits
B-1 and B-2.  The aggregate principal amount of the Global
Security may from time to time be increased or decreased by adjustments made on
the records of the Trustee, as custodian for the Depositary, as hereinafter
provided; provided, that in no event shall the
aggregate principal amount of the Global Security or Securities exceed $75,000,000
(or $86,250,000 if the Initial Purchasers elect to purchase all of the Additional
Securities pursuant to the Option).

 

Securities issued in exchange for interests
in a Global Security pursuant to Section  2.15 may be issued in the form of permanent certificated
Securities in registered form in substantially the form set forth in Exhibit  A (the “Physical Securities”) and, if applicable, bearing any
legends required by Section 2.17.

 

2.02                           EXECUTION AND
AUTHENTICATION.

 

One Officer shall sign the Securities for the
Company by manual or facsimile signature.

 

A Security’s validity shall not be affected
by the failure of an Officer whose signature is on such Security to hold, at
the time the Security is authenticated, the same office at the Company.

 

A Security shall not be valid until
authenticated by the manual signature of the Trustee.  The signature shall be conclusive evidence
that the Security has been authenticated under this Indenture.

 

Upon a written order of the Company signed by
one Officer of the Company, the Trustee shall authenticate Securities for
original issue in the aggregate principal amount of $75,000,000 and such
additional principal amount, if any, as shall be determined pursuant to the
next sentence

 

8

 

of this Section
2.02. 
Upon receipt by the Trustee of an Officers’ Certificate stating that the
Initial Purchasers have elected to purchase from the Company a specified
principal amount of Additional Securities, not to exceed $11,250,000, pursuant
to the Option, the Trustee shall authenticate and deliver such specified
principal amount of Additional Securities to or upon the written order of the
Company signed as provided in the immediately preceding sentence.  Such Officers’ Certificate must be received
by the Trustee not later than the proposed date for delivering of such
Additional Securities.  The aggregate
principal amount of Securities outstanding at any time may not exceed $75,000,000
except as provided in this Section  2.02.

 

Upon a written order of the Company signed by
two (2) Officers or by an Officer and an Assistant Treasurer of the Company,
the Trustee shall authenticate Securities not bearing the Private Placement
Legend to be issued to the transferee when sold pursuant to an effective registration
statement under the Securities Act as set forth in Section
2.16(B).

 

The Trustee shall act as the initial
authenticating agent.  Thereafter, the
Trustee may appoint an authenticating agent acceptable to the Company to authenticate
Securities.  An authenticating agent may
authenticate Securities whenever the Trustee may do so.  Each reference in this Indenture to
authentication by the Trustee includes authentication by such authenticating
agent.  An authenticating agent has the
same rights as a Security Agent to deal with the Company and its Affiliates.

 

If a written order of the Company pursuant to
this Section 2.02 has been, or
simultaneously is, delivered, any instructions by the Company to the Trustee
with respect to endorsement, delivery or redelivery of a Security issued in
global form shall be in writing but need not comply with Section 11.04
hereof and need not be accompanied by an Opinion of Counsel.

 

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

 

2.03                           REGISTRAR, PAYING AGENT AND CONVERSION AGENT.

 

The Company shall maintain an office or
agency in the Borough of Manhattan, The City of New York, or in The City of
Chicago, where Securities may be presented for registration of transfer or for
exchange (“Registrar”), an office or agency
in the Borough of Manhattan, The City of New York, or in The City of Chicago, where
Securities may be presented for payment (“Paying Agent”)
and an office or agency in the Borough of Manhattan, The City of New York, or
in The City of Chicago, where Securities may be presented for conversion (“Conversion Agent”). 
The Registrar shall keep a register of the Securities and of their
transfer and exchange.  The Company may
appoint or change one or more co-Registrars, one or more additional paying
agents and one or more additional conversion agents without notice and may act
in any such capacity on its own behalf. 
The term “Registrar” includes any co-Registrar;
the term “Paying Agent” includes any additional
paying agent; and the term “Conversion Agent”
includes any additional conversion agent.

 

The Company shall enter into an appropriate
agency agreement with any Security Agent not a party to this Indenture.  The agreement shall implement the provisions
of this Indenture that

 

9

 

relate to such Security
Agent.  The Company shall notify the
Trustee of the name and address of any Security Agent not a party to this
Indenture.  If the Company fails to
maintain a Registrar, Paying Agent or Conversion Agent, the Trustee shall act
as such.

 

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

 

2.04                           PAYING AGENT TO HOLD MONEY IN TRUST.

 

Each Paying Agent shall hold in trust for the
benefit of the Securityholders or the Trustee all moneys and other property
held by the Paying Agent for the payment of the Securities, and shall notify
the Trustee of any Default by the Company in making any such payment.  While any such Default continues, the Trustee
may require a Paying Agent to pay all money and other property held by it to
the Trustee.  The Company at any time may
require a Paying Agent to pay all money and other property held by it to the
Trustee.  Upon payment over to the
Trustee, the Paying Agent shall have no further liability for such money and
other property.  If the Company acts as
Paying Agent, it shall segregate and hold as a separate trust fund all money
and other property held by it as Paying Agent.

 

2.05                           SECURITYHOLDER LISTS.

 

The Trustee shall preserve in as current a
form as is reasonably practicable the most recent list available to it of the
names and addresses of Securityholders. 
If the Trustee is not the Registrar, the Company shall furnish to the
Trustee on or before each interest payment date and at such other times as the
Trustee may request in writing a list, in such form and as of such date as the
Trustee may reasonably require, of the names and addresses of Securityholders.

 

2.06                           TRANSFER AND
EXCHANGE.

 

Subject to Sections 2.15
and 2.16 hereof, where Securities are
presented to the Registrar with a request to register their transfer or to
exchange them for an equal principal amount of Securities of other authorized
denominations, the Registrar shall register the transfer or make the exchange
if its requirements for such transaction are met.  To permit registrations of transfer and
exchanges, the Trustee shall authenticate Securities at the Registrar’s
request.  The Company or the Trustee, as
the case may be, shall not be required to register the transfer of or exchange
any Security (i) for a period of fifteen (15) days before selecting, pursuant
to Section 3.03, Securities to be redeemed
or (ii) during a period beginning at the opening of business fifteen (15) days
before the mailing of a notice of redemption of the Securities selected for
Redemption under Section  3.04
and ending at the close of business on the day of such mailing or (iii) that
has been selected for Redemption or for which a Purchase Notice has been
delivered, and not withdrawn, in accordance with this Indenture, except the unredeemed
or unrepurchased portion of Securities being redeemed or repurchased in part.

 

No service charge shall be made for any
transfer, exchange or conversion of Securities, but the Company may require
payment of a sum sufficient to cover any transfer tax or similar governmental
charge that may be imposed in connection with any transfer, exchange or conversion
of Securities, other than exchanges pursuant to Sections
2.10, 9.05 or 10.02,
or Article III, not involving any
transfer.

 

10

 

2.07                           REPLACEMENT
SECURITIES.

 

If the Holder of a Security claims that the
Security has been mutilated, lost, destroyed or wrongfully taken, the Company
shall issue and the Trustee shall authenticate a replacement Security upon
surrender to the Trustee of the mutilated Security, or upon delivery to the
Trustee of evidence of the loss, destruction or theft of the Security
satisfactory to the Trustee and the Company. 
In the case of lost, destroyed or wrongfully taken Securities, if
required by the Trustee or the Company, an indemnity bond must be provided by
the Holder that is reasonably satisfactory to the Trustee and the Company to
protect the Company, the Trustee or any Security Agent from any loss which any
of them may suffer if a Security is replaced. 
The Trustee may charge for its expenses in replacing a Security.

 

In case any such mutilated, lost, destroyed
or wrongfully taken Security has become or is about to become due and payable,
the Company in its discretion may, instead of issuing a new Security, pay such
Security when due.

 

Every replacement Security is an additional
obligation of the Company only as provided in Section
2.08.

 

2.08                           OUTSTANDING
SECURITIES.

 

Securities outstanding at any time are all
the Securities authenticated by the Trustee except for those converted, those
cancelled by it, those delivered to it for cancellation and those described in
this Section  2.08
as not outstanding.  Except to the extent
provided in Section 2.09, a Security does not
cease to be outstanding because the Company or one of its Subsidiaries or its Affiliates
holds the Security.

 

If a Security is replaced pursuant to Section  2.07, it ceases
to be outstanding unless the Trustee receives proof satisfactory to it, or a
court of competent jurisdiction holds, that the replaced Security is held by a
protected purchaser.

 

If the Paying Agent (other than the Company)
holds on an Option Purchase Date, Redemption Date, Fundamental Change
Repurchase Date or Maturity Date, money (and, if applicable as provided herein
and in accordance herewith, such other consideration in which any applicable Make-Whole
Premium is payable) sufficient to pay the aggregate Option Purchase Price,
Redemption Price, Fundamental Change Repurchase Price (including any applicable
Make-Whole Premium) or principal amount, as the case may be, with respect to all
Securities to be redeemed, purchased or paid upon Purchase at Holder’s Option,
Redemption, Repurchase Upon Fundamental Change or maturity, as the case may be,
in each case plus, if applicable, accrued and unpaid interest, if any, payable
as herein provided upon Purchase at Holder’s Option, Redemption, Repurchase
Upon Fundamental Change or maturity, then (unless there shall be a Default in
the payment of such aggregate Option Purchase Price, Redemption Price, Fundamental
Change Repurchase Price (including any applicable Make-Whole Premium) or
principal amount, or of such accrued and unpaid interest) on and after such
date such Securities shall be deemed to be no longer outstanding, interest on
such Securities shall cease to accrue, and such Securities shall be deemed paid
whether or not such Securities are delivered to the Paying Agent.  Thereafter, all rights of the Holders of such
Securities shall terminate with respect to

 

11

 

such Securities, other than
the right to receive the Option Purchase Price, Redemption Price, Fundamental
Change Repurchase Price (including any applicable Make-Whole Premium) or
principal amount, as the case may be, plus, if applicable, such accrued and
unpaid interest, in accordance with this Indenture.

 

If a Security is converted in accordance with
Article X, then, from and after the
time of such conversion on the Conversion Date, such Security shall cease to be
outstanding, and interest, if any, shall cease to accrue on such Security.

 

2.09                           SECURITIES
HELD BY THE COMPANY OR
AN AFFILIATE.

 

In determining whether the Holders of the
required aggregate principal amount of Securities have concurred in any
direction, waiver or consent, Securities owned by the Company or any of its
Subsidiaries or its Affiliates shall be considered as though not outstanding,
except that, for the purposes of determining whether a Responsible Officer of
the Trustee shall be protected in relying on any such direction, waiver or
consent, only Securities which the Trustee knows are so owned shall be so
disregarded.  Securities so owned which
have been pledged in good faith may be considered to be outstanding for
purposes of this Section 2.09 if the pledgee
establishes, to the satisfaction of the Trustee, the pledgee’s right so to
concur with respect to such Securities and that the pledgee is not, and is not
acting at the direction or on behalf of, the Company, any other obligor on the
Securities, an Affiliate of the Company or an Affiliate of any such other
obligor.  In the event of a dispute as to
whether the pledgee has established the foregoing, the Trustee may rely on the
advice of counsel or on an Officers’ Certificate.

 

2.10                           TEMPORARY
SECURITIES.

 

Until definitive Securities are ready for
delivery, the Company may prepare and the Trustee shall authenticate temporary
Securities.  Temporary Securities shall
be substantially in the form of definitive Securities but may have variations
that the Company considers appropriate for temporary Securities.  Without unreasonable delay, the Company shall
prepare and the Trustee shall authenticate definitive Securities in exchange
for temporary Securities.

 

2.11                           CANCELLATION.

 

The Company at any time may deliver
Securities to the Trustee for cancellation. 
The Registrar, Paying Agent and Conversion Agent shall forward to the
Trustee any Securities surrendered to them for transfer, exchange, payment or
conversion.  The Trustee shall promptly cancel
all Securities surrendered for transfer, exchange, payment, conversion or
cancellation in accordance with its customary procedures.  The Company may not issue new Securities to
replace Securities that it has paid or delivered to the Trustee for cancellation
or that any Securityholder has converted pursuant to Article
X.

 

2.12                           DEFAULTED
INTEREST.

 

If and to the extent the Company defaults in
a payment of interest on the Securities, the Company shall pay in cash the
defaulted interest in any lawful manner plus, to the extent not prohibited by
applicable statute or case law, interest on such defaulted interest at the rate
provided in the Securities.  The Company
may pay the defaulted interest (plus interest on such

 

12

 

defaulted interest) to the
persons who are Securityholders on a subsequent special record date.  The Company shall fix such record date and
payment date.  At least fifteen (15)
calendar days before the record date, the Company shall mail to Securityholders
a notice that states the record date, payment date and amount of interest to be
paid.

 

2.13                           CUSIP NUMBERS.

 

The Company in issuing the Securities may use
one or more “CUSIP” numbers, and, if so, the Trustee shall use the CUSIP
numbers in notices of redemption or exchange as a convenience to Holders; provided, however, that
no representation is hereby deemed to be made by the Trustee as to the
correctness or accuracy of the CUSIP numbers printed on the notice or on the
Securities; provided further, that reliance may be
placed only on the other identification numbers printed on the Securities, and
the effectiveness of any such notice shall not be affected by any defect in, or
omission of, such CUSIP numbers.  The Company
shall promptly notify the Trustee of any change in the CUSIP numbers.

 

2.14                           DEPOSIT OF MONEYS.

 

Prior to 10:00 A.M., New York City time, on
each interest payment date, Maturity Date, Redemption Date, Option Purchase
Date or Fundamental Change Repurchase Date, the Company shall have deposited
with a Paying Agent (or, if the Company is acting as its own Paying Agent,
segregate and hold in trust in accordance with Section
2.04) money, in funds immediately
available on such date, and, if applicable as provided herein, such other
consideration, sufficient to make cash payments and deliver such other
consideration, if any, due on such interest payment date, Maturity Date,
Redemption Date, Option Purchase Date or Fundamental Change Repurchase Date, as
the case may be, in a timely manner which permits the Paying Agent to remit
payment to the Holders on such interest payment date, Maturity Date, Redemption
Date, Option Purchase Date or Fundamental Change Repurchase Date, as the case
may be.

 

2.15                           BOOK-ENTRY
PROVISIONS FOR GLOBAL
SECURITIES.

 

(A)                              The
Global Securities initially shall (i) be registered in the name of the
Depositary or the nominee of the Depositary, (ii) be delivered to the Trustee
as custodian for the Depositary and (iii) bear legends as set forth in Section  2.17.

 

Members of, or participants in, the
Depositary (“Participants”) shall have no
rights under this Indenture with respect to any Global Security held on their
behalf by the Depositary, or the Trustee as its custodian, or under the Global
Security, and the Depositary may be treated by the Company, the Trustee and any
agent of the Company or the Trustee as the absolute owner of the Global Security
for all purposes whatsoever. 
Notwithstanding the foregoing, nothing herein shall prevent the Company,
the Trustee or any agent of the Company or the Trustee from giving effect to
any written certification, proxy or other authorization furnished by the
Depositary or impair, as between the Depositary and Participants, the operation
of customary practices governing the exercise of the rights of a Holder of any
Security.

 

(B)                                Transfers of Global Securities shall be limited to transfers
in whole, but not in part, to the Depositary, its successors or their
respective nominees.  In addition,
Physical

 

13

 

Securities
shall be transferred to all beneficial owners, as identified by the Depositary,
in exchange for their beneficial interests in Global Securities only if (i) the
Depositary notifies the Company that the Depositary is unwilling or unable to
continue as depositary for any Global Security (or the Depositary ceases to be
a “clearing agency” registered under Section 17A of the Exchange Act) and a
successor Depositary is not appointed by the Company within ninety (90) days of
such notice or cessation or (ii) an Event of Default has occurred and is
continuing and the Registrar has received a written request from the Depositary
to issue Physical Securities.

 

(C)                                In
connection with the transfer of a Global Security in its entirety to beneficial
owners pursuant to Section  2.15(B), such Global Security shall be deemed to be surrendered
to the Trustee for cancellation, and the Company shall execute, and the Trustee
shall upon written instructions from the Company authenticate and deliver, to
each beneficial owner identified by the Depositary in exchange for its
beneficial interest in such Global Security, an equal aggregate principal
amount of Physical Securities of authorized denominations.

 

(D)                               Any
Physical Security constituting a Restricted Security delivered in exchange for
an interest in a Global Security pursuant to Section
2.15(B) shall, except as otherwise
provided by Section  2.16,
bear the Private Placement Legend.

 

(E)                                 The
Holder of any Global Security may grant proxies and otherwise authorize any
Person, including Participants and Persons that may hold interests through
Participants, to take any action which a Holder is entitled to take under this
Indenture or the Securities.

 

2.16                           SPECIAL
TRANSFER PROVISIONS.

 

(A)                              Restrictions on Transfer and Exchange of Global Securities.  Notwithstanding any other provisions of this
Indenture, but except as provided in Section 2.15(B),
a Global Security may not be transferred except as a whole by the Depositary to
a nominee of the Depositary or by a nominee of the Depositary to the Depositary
or another nominee of the Depositary or by the Depositary or any such nominee
to a successor Depositary or a nominee of such successor Depositary.

 

(B)                                Private Placement Legend. 
Upon the transfer, exchange or replacement of Securities not bearing the
Private Placement Legend, the Registrar or co-Registrar shall deliver Securities
that do not bear the Private Placement Legend. 
Upon the transfer, exchange or replacement of Securities bearing the
Private Placement Legend, the Registrar or co-Registrar shall deliver only Securities
that bear the Private Placement Legend unless (i) the requested transfer is
after the Resale Restriction Termination Date, (ii) there is delivered to the
Trustee and the Company an opinion of counsel reasonably satisfactory to the
Company and addressed to the Company to the effect that neither such legend nor
the related restrictions on transfer are required in order to maintain
compliance with the provisions of the Securities Act or (iii) such Security has
been sold pursuant to an effective registration statement under the Securities
Act and the Holder selling such Securities has delivered to the Registrar or
co-Registrar a notice in the form of Exhibit  C hereto.  Upon the
effectiveness, under the Securities Act, of the “Shelf Registration Statement”
(as defined in the Registration Rights Agreement), the Company shall deliver to
the Trustee a notice of effectiveness, a Global Security or Global Securities,
which do not bear the Private Placement Legend, an authentication order in
accordance with Section  2.02

 

14

 

and
an Opinion of Counsel in the form of Exhibit  D hereto, and, if required by the Depositary, the Company
shall deliver to the Depositary a letter of representations in a form
reasonably acceptable to the Depositary.  Upon the effectiveness of any post-effective
amendment to the “Shelf Registration Statement” (as defined in the Registration
Rights Agreement) and upon the effectiveness, under the Securities Act, of any “Subsequent
Shelf Registration Statement” (as defined in the Registration Rights
Agreement), the Company shall deliver to the Trustee a notice of effectiveness
and an Opinion of Counsel in the form of Exhibit  D hereto.  Upon any
sale, pursuant to a Shelf Registration Statement, of a beneficial interest in a
Global Security that theretofore constituted a Restricted Security and delivery
of appropriate evidence thereof to the Trustee, and upon any sale or transfer
of a beneficial interest in connection with which the Private Placement Legend
will be removed in accordance with this Indenture, the Trustee shall increase
the principal amount of the Global Security that does not constitute a
Restricted Security by the principal amount of such sale or transfer and
likewise reduce the principal amount of the Global Security that does constitute
a Restricted Security.

 

(C)                                General.  By its
acceptance of any Security bearing the Private Placement Legend, each Holder of
such a Security acknowledges the restrictions on transfer of such Security set
forth in this Indenture and in the Private Placement Legend and agrees that it
will transfer such Security only as provided in this Indenture.

 

The Registrar shall retain copies of all
letters, notices and other written communications received pursuant to Section  2.15 or this Section  2.16.  The Company shall have the right to inspect
and make copies of all such letters, notices or other written communications at
any reasonable time upon the giving of reasonable written notice to the
Registrar.

 

(D)                               Transfers of Securities Held by Affiliates.  Any certificate (i) evidencing a Security
that has been transferred to an Affiliate of the Company within two (2) years
after the Issue Date, as evidenced by a notation on the assignment form for
such transfer or in the representation letter delivered in respect thereof or
(ii) evidencing a Security that has been acquired from an Affiliate of the
Company (other than by an Affiliate of the Company) in a transaction or a chain
of transactions not involving any public offering, shall, until two (2) years
after the last date on which the Company or any Affiliate of the Company was an
owner of such Security (or such longer period of time as may be required under
the Securities Act or applicable state securities laws), in each case, bear the
Private Placement Legend, unless otherwise agreed by the Company (with written
notice thereof to the Trustee).

 

2.17                           RESTRICTIVE
LEGENDS.

 

Each Global Security and Physical Security
that constitutes a Restricted Security shall bear the legend (the “Private Placement Legend”) as set forth in Exhibit  B-1 on the face
thereof until after the second anniversary of the later of (i) the Issue Date
and (ii) the last date on which the Company or any Affiliate of the Company was
the owner of such Security (or any predecessor security) (or such shorter
period of time as permitted by Rule 144(k) under the Securities Act or any
successor provision thereunder) (or such longer period of time as may be
required under the Securities Act or applicable state securities laws, as set
forth in an Opinion of Counsel, unless otherwise agreed between the Company and
the Holder thereof) (such date, the “Resale Restriction
Termination Date”).

 

15

 

Each Global Security shall also bear the
legend as set forth in Exhibit  B-2.

 

2.18                           RANKING.

 

The indebtedness of the Company arising under
or in connection with this Indenture and every outstanding Security issued
under this Indenture from time to time constitutes and will constitute a senior
unsecured obligation of the Company, ranking equally with other existing and
future senior unsecured indebtedness of the Company and ranking senior to any existing
or future subordinated indebtedness of the Company.

 

III.                                 REDEMPTION AND REPURCHASE

 

3.01                           RIGHT OF REDEMPTION.

 

(A)                              Redemption
of the Securities, as permitted by any provision of this Indenture, shall be
made:

 

(i)                   with
respect to a repurchase at the Company’s option, in accordance with paragraphs 6 and 7 of the Securities (a “Redemption”),

 

(ii)                with
respect to a repurchase at the Holder’s option, in accordance with paragraph 8 of the Securities (a “Purchase at
Holder’s Option”) and

 

(iii)             with respect to any repurchase upon a Fundamental
Change, in accordance with paragraph 9 of
the Securities (a “Repurchase Upon
Fundamental Change”),

 

in each case in accordance
with the applicable provisions of this Article III.

 

(B)                                The
Company will comply with all federal and state securities laws, and the
applicable laws of any foreign jurisdiction, in connection with any offer to
sell or solicitations of offers to buy Securities pursuant to this Article III.

 

(C)                                The
Company shall not have the right to redeem any Securities prior to November 1,
2009.  The Company shall have the
right, at the Company’s option, at any time, and from time to time, on a
Redemption Date on or after November 1, 2009, to redeem all or any part of the
Securities at a price payable in cash equal to the Redemption Price plus
accrued and unpaid interest, if any, to, but excluding, the Redemption Date.

 

(D)                               Securities
in denominations larger than $1,000 principal amount may be redeemed in part
but only in integral multiples of $1,000 principal amount.

 

3.02                           NOTICES TO
TRUSTEE.

 

If the Company elects to redeem Securities
pursuant to paragraph 6 of the Securities, it
shall notify the Trustee of the Redemption Date, the applicable provision of
this Indenture pursuant to which the Redemption is to be made and the aggregate
principal amount of Securities

 

16

 

to be redeemed, which notice
shall be provided to the Trustee by the Company at least fifteen (15) days
prior to the mailing, in accordance with Section 3.04,
of the notice of Redemption (unless a shorter notice period shall be
satisfactory to the Trustee).

 

3.03                           SELECTION
OF SECURITIES TO BE
REDEEMED.

 

If the Company has elected to redeem less
than all the Securities pursuant to paragraph 6 of
the Securities, the Trustee shall, within five (5) Business Days after
receiving the notice specified in Section 3.02,
select the Securities to be redeemed by lot, on a pro rata
basis or in accordance with any other method the Trustee considers fair and
appropriate.  The Trustee shall make such
selection from Securities then outstanding and not already to be redeemed by
virtue of having been previously called for Redemption.  The Trustee may select for Redemption
portions of the principal amount of Securities that have denominations larger
than $1,000 principal amount.  Securities
and portions of them the Trustee selects for Redemption shall be in amounts of
$1,000 principal amount or integral multiples of $1,000 principal amount.  The Trustee shall promptly notify the Company
in writing of the Securities selected for Redemption and the principal amount
thereof to be redeemed.

 

The Registrar need not register the transfer of
or exchange any Securities that have been selected for Redemption, except the
unredeemed portion of the Securities being redeemed in part.  The Registrar need not issue, authenticate,
register the transfer of or exchange any Security for a period of fifteen (15)
days before selecting, pursuant to this Section 3.03, Securities
to be redeemed.

 

3.04                           NOTICE OF REDEMPTION.

 

At least thirty (30) days but not more than
sixty (60) days before a Redemption Date, the Company shall mail, or cause to
be mailed, by first-class mail a notice of Redemption to each Holder whose
Securities are to be redeemed, at the address of such Holder appearing in the
security register.

 

The notice shall identify the Securities and
the aggregate principal amount thereof to be redeemed pursuant to the
Redemption and shall state:

 

(i)                           the
Redemption Date;

 

(ii)                        the
Redemption Price plus accrued and unpaid interest, if any, to, but excluding,
the Redemption Date;

 

(iii)                     the
Conversion Rate and the Conversion Price;

 

(iv)                    the names and
addresses of the Paying Agent and the Conversion Agent;

 

(v)                       that the
right to convert the Securities called for Redemption will terminate at the
close of business on the Business Day immediately preceding the Redemption Date,
unless there shall be a Default in the payment of the Redemption

 

17

 

Price or accrued
and unpaid interest, if any, payable as herein provided upon Redemption;

 

(vi)                    that Holders
who want to convert Securities must satisfy the requirements of Article  X;

 

(vii)                 the paragraph of
the Securities pursuant to which the Securities are to be redeemed;

 

(viii)               that Securities
called for Redemption must be surrendered to the Paying Agent to collect the
Redemption Price plus accrued and unpaid interest, if any, payable as herein
provided upon Redemption;

 

(ix)                      that, unless
there shall be a Default in the payment of the Redemption Price or accrued and
unpaid interest, if any, payable as herein provided upon Redemption, interest
on Securities called for Redemption ceases to accrue on and after the
Redemption Date, such Securities will cease to be convertible after the close
of business on the Business Day immediately preceding the Redemption Date, and
all rights of the Holders of such Securities shall terminate on and after the
Redemption Date, other than the right to receive, upon surrender of such
Securities and in accordance with this Indenture, the Redemption Price and such
accrued and unpaid interest; and

 

(x)                         the CUSIP
number or numbers, as the case may be, of the Securities.

 

The right, pursuant to Article X,
to convert Securities called for Redemption shall terminate at the close of
business on the Business Day immediately preceding the Redemption Date, unless
there shall be a Default in the payment of the Redemption Price or accrued and
unpaid interest, if any, payable as herein provided upon Redemption.

 

At the Company’s request, upon reasonable
prior notice, the Trustee shall mail the notice of Redemption in the Company’s
name and at the Company’s expense; provided, however, that the form and content of such notice shall be
prepared by the Company.

 

3.05                           EFFECT OF
NOTICE OF REDEMPTION.

 

Once notice of Redemption is mailed,
Securities called for Redemption become due and payable on the Redemption Date
at the Redemption Price plus accrued and unpaid interest to, but excluding, the
Redemption Date, and, on and after such Redemption Date (unless there shall be
a Default in the payment of the Redemption Price or such accrued and unpaid
interest), such Securities shall cease to bear interest, and all rights of the
Holders of such Securities shall terminate, other than the right to receive,
upon surrender of such Securities and in accordance with the next sentence, the
Redemption Price and such accrued and unpaid interest.  Upon surrender to the Paying Agent of a
Security subject to Redemption, such Security shall be paid, to the Holder
surrendering such Security, at the Redemption Price plus accrued and unpaid
interest to, but excluding, the Redemption Date, unless the Redemption Date is
an interest payment date, in which case such accrued and unpaid interest will
instead be paid on such

 

18

 

interest payment date to the
Holder of record of such Security at the close of business on the record date
for such interest payment.

 

If any Security shall not be fully and duly paid
upon surrender thereof for Redemption, the principal of, and accrued and unpaid
interest on, such Security shall, until paid, bear interest from, and
including, the Redemption Date at the rate borne by such Security on the
principal amount of such Security, and such Security shall continue to be
convertible pursuant to Article X.

 

Notwithstanding anything herein to the
contrary, there shall be no purchase of any Securities pursuant to a Redemption
if there has occurred (prior to, on or after, as the case may be, the mailing
of the notice of Redemption specified in Section 3.04)
and is continuing an Event of Default (other than a Default in the payment of
the Redemption Price or accrued and unpaid interest, if any, payable as herein
provided upon Redemption).  The Paying
Agent will promptly return to the respective Holders thereof any Securities
held by it during the continuance of such an Event of Default.

 

3.06                           DEPOSIT
OF REDEMPTION PRICE.

 

Prior to 10:00 A.M., New York City time on
the Redemption Date, the Company shall deposit with a Paying Agent (or, if the
Company is acting as its own Paying Agent, segregate and hold in trust in
accordance with Section  2.04)
money, in funds immediately available on the Redemption Date, sufficient to pay
the Redemption Price, plus accrued and unpaid interest to, but excluding, the
Redemption Date, of all Securities to be redeemed on that date.  The Paying Agent shall return to the Company,
as soon as practicable, any money not required for that purpose.

 

3.07                           SECURITIES
REDEEMED IN PART.

 

Any Security to be submitted for Redemption
only in part shall be delivered pursuant to Section
3.05 (with, if the Company or the
Trustee so requires, due endorsement by, or a written instrument of transfer in
form satisfactory to the Company and the Trustee duly executed by, the Holder
thereof or its attorney duly authorized in writing), and the Company shall
execute, and the Trustee shall authenticate and make available for delivery to
the Holder of such Security without service charge, a new Security or
Securities, of any authorized denomination as requested by such Holder, of the
same tenor and in aggregate principal amount equal to the portion of such
Security not submitted for Redemption.

 

If any Security selected for partial
Redemption is converted in part, the principal of such Security subject to
Redemption shall be reduced by the principal amount of such Security that is
converted.

 

3.08                           PURCHASE
OF SECURITIES AT OPTION
OF THE HOLDER.

 

(A)                              At the option of the Holder thereof, Securities (or
portions thereof that are integral multiples of $1,000 in principal amount)
shall be purchased by the Company pursuant to paragraph 8
of the Securities on November 1, 2009, November 1, 2014 and November 1, 2019
(each, an “Option Purchase Date”), at a
purchase price, payable in cash, equal to one hundred

 

19

 

percent
(100%) of the principal amount of the Securities (or such portions thereof) to
be so purchased (the “Option Purchase Price”),
plus accrued and unpaid interest, if any, to, but excluding, the applicable
Option Purchase Date, upon:

 

(i)                   delivery
to the Company (if it is acting as its own Paying Agent), or to a Paying Agent
designated by the Company for such purpose in the Option Purchase Notice, by such
Holder, at any time from the opening of business on the date that is twenty
(20) Business Days prior to the applicable Option Purchase Date until the close
of business on the Business Day immediately preceding the applicable Option
Purchase Date, of a Purchase Notice, in the form set forth in the Securities or
any other form of written notice substantially similar thereto, in each case,
duly completed and signed, with appropriate signature guarantee, stating:

 

(a)                                  the certificate number(s) of the Securities
which the Holder will deliver to be purchased;

 

(b)                                 the principal amount of Securities to be purchased,
which must be $1,000 or an integral multiple thereof; and

 

(c)                                  that such principal amount of Securities are
to be purchased as of the applicable Option Purchase Date pursuant to the terms
and conditions specified in paragraph 8 of
the Securities and in this Indenture; and

 

(ii)                delivery
to the Company (if it is acting as its own Paying Agent), or to a Paying Agent
designated by the Company for such purpose in the Option Purchase Notice, at
any time after delivery of such Purchase Notice, of such Securities (together
with all necessary endorsements), such delivery being a condition to receipt by
the Holder of the Option Purchase Price therefor plus accrued and unpaid
interest, if any, payable as herein provided upon Purchase at Holder’s Option.

 

If such Securities are held in book-entry
form through the Depositary, the Purchase Notice shall comply with applicable
procedures of the Depositary.

 

Upon such delivery of Securities to the Company
(if it is acting as its own Paying Agent) or such Paying Agent, such Holder
shall be entitled to receive from the Company or such Paying Agent, as the case
may be, a nontransferable receipt of deposit evidencing such delivery.

 

Notwithstanding anything herein to the
contrary, any Holder delivering the Purchase Notice contemplated by this Section 3.08(A) to the Company (if it is acting as its own
Paying Agent) or to a Paying Agent designated by the Company for such purpose
in the Option Purchase Notice shall have the right to withdraw such Purchase
Notice by delivery, at any time prior to the close of business on the Business
Day immediately preceding the applicable Option Purchase Date, of a written
notice of withdrawal to the Company (if acting as its own Paying Agent) or the
Paying Agent, which notice shall contain the information specified in Section 3.08(B)(vii).

 

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

 

20

 

 

(B)                                The
Company shall give notice (the “Option Purchase Notice”)
on a date not less than twenty (20) Business Days prior to each Option Purchase
Date to all Holders at their addresses shown in the register of the Registrar
and to beneficial owners as required by applicable law.  Such notice shall state:

 

(i)                   the Option Purchase Price
plus accrued and unpaid interest, if any, to, but excluding, such Option
Purchase Date and the Conversion Rate;

 

(ii)                the names and addresses of
the Paying Agent and the Conversion Agent;

 

(iii)             that Securities with respect
to which a Purchase Notice is given by a Holder may be converted pursuant to Article X, if otherwise convertible in accordance with Article X, only if such Purchase Notice has been
withdrawn in accordance with this Section 3.08
or if there shall be a Default in the payment of such Option Purchase Price or
in accrued and unpaid interest, if any, payable as herein provided upon
Purchase at Holder’s Option;

 

(iv)            that Securities must be
surrendered to the Paying Agent to collect payment of the Option Purchase Price
plus accrued and unpaid interest, if any, payable as herein provided upon
Purchase at Holder’s Option;

 

(v)               that the Option Purchase
Price, plus accrued and unpaid interest, if any, to, but excluding, such Option
Purchase Date, for any Security as to which a Purchase Notice has been given
and not withdrawn will be paid as promptly as practicable, but in no event more
than three (3) Business Days, following the later of such Option Purchase Date
or the time of delivery of the Security as described in clause (iv)
above;

 

(vi)            the procedures the Holder
must follow to exercise rights under this Section 3.08
(including the name and address of the Paying Agent) and a brief description of
those rights;

 

(vii)         that a Holder will be
entitled to withdraw its election in the Purchase Notice if the Company (if
acting as its own Paying Agent) or the Paying Agent receives, at any time prior
to the close of business on the Business Day immediately preceding the applicable
Option Purchase Date, or such longer period as may be required by law, a letter
or telegram, telex or facsimile transmission (receipt of which is confirmed and
promptly followed by a letter) setting forth (I) the name of such Holder, (II)
a statement that such Holder is withdrawing its election to have Securities
purchased by the Company on such Option Purchase Date pursuant to a Purchase at
Holder’s Option, (III) the certificate number of such Securities to be so
withdrawn, (IV) the principal amount of the Securities of such Holder to be so
withdrawn, which amount must be $1,000 or an integral multiple thereof and (V)
the principal amount, if any, of the Securities of such Holder that remain
subject to the Purchase Notice delivered by such Holder in accordance with this
Section 3.08, which amount must be
$1,000 or an integral multiple thereof;

 

21

 

(viii)      that, on and after the
applicable Option Purchase Date (unless there shall be a Default in the payment
of such Option Purchase Price or such accrued and unpaid interest), interest on
Securities subject to Purchase at Holder’s Option will cease to accrue, such
Securities shall cease to be convertible pursuant to Article X,
and all rights of the Holders of such Securities shall terminate, other than
the right to receive, upon surrender of such Securities and in accordance with
this Section 3.08, the Option Purchase
Price and such accrued and unpaid interest; and

 

(ix)              the CUSIP number or numbers,
as the case may be, of the Securities.

 

At the Company’s request, upon reasonable prior notice, the Trustee
shall mail such Option Purchase Notice in the Company’s name and at the Company’s
expense; provided, however, that the form and
content of such Option Purchase Notice shall be prepared by the Company.

 

No failure of the Company to give an Option Purchase Notice shall limit
any Holder’s right to exercise its rights to require the Company to purchase
such Holder’s Securities pursuant to a Purchase at Holder’s Option.

 

(C)                                Subject
to the provisions of this Section 3.08,
the Company shall pay, or cause to be paid, the Option Purchase Price, plus
accrued and unpaid interest, if any, to, but excluding, the applicable Option
Purchase Date, with respect to each Security subject to Purchase at Holder’s
Option to the Holder thereof as promptly as practicable, but in no event more
than three (3) Business Days, following the later of the applicable Option
Purchase Date and the time such Security (together with all necessary endorsements)
is surrendered to the Paying Agent.

 

(D)                               Prior
to 10:00 A.M., New York City time on the applicable Option Purchase Date, the
Company shall deposit with a Paying Agent (or, if the Company is acting as its
own Paying Agent, segregate and hold in trust in accordance with Section 2.04) money, in funds immediately available on
the applicable Option Purchase Date, sufficient to pay the Option Purchase
Price, plus accrued and unpaid interest, if any, to, but excluding, such Option
Purchase Date, of all of the Securities that are to be purchased by the Company
on such Option Purchase Date pursuant to a Purchase at Holder’s Option.  The Paying Agent shall return to the Company,
as soon as practicable, any money not required for that purpose.

 

(E)                                 Once
the Purchase Notice has been duly delivered in accordance with this Section 3.08, the Securities to be purchased pursuant
to the Purchase at Holder’s Option shall, on the applicable Option Purchase
Date, become due and payable at the Option Purchase Price (plus accrued and
unpaid interest, if any, to, but excluding, such Option Purchase Date)
applicable thereto, and, on and after such date (unless there shall be a
Default in the payment of the Option Purchase Price or such accrued and unpaid
interest), such Securities shall cease to bear interest and shall cease to be
convertible pursuant to Article X,
and all rights of the Holders of such Securities shall terminate, other than
the right to receive, in accordance with this Section 3.08,
the Option Purchase Price and such accrued and unpaid interest.

 

(F)                                 Securities
with respect to which a Purchase Notice has been duly delivered in accordance
with this Section 3.08 may be converted
pursuant to Article X, if otherwise

 

22

 

convertible in accordance with Article X,
only if such Purchase Notice has been withdrawn in accordance with this Section 3.08 or if there shall be a Default in the
payment of the Option Purchase Price or in the accrued and unpaid interest, if
any, payable as herein provided upon Purchase at Holder’s Option.

 

(G)                                If
any Security shall not be paid upon surrender thereof for Purchase at Holder’s
Option, the principal of, and accrued and unpaid interest on, such Security
shall, until paid, bear interest from, and including, the applicable Option
Purchase Date at the rate borne by such Security on the principal amount of
such Security, and such Security shall continue to be convertible pursuant to Article X.

 

(H)                               Any
Security which is to be submitted for Purchase at Holder’s Option only in part
shall be delivered pursuant to this Section 3.08
(with, if the Company or the Trustee so requires, due endorsement by, or a
written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or its attorney duly authorized in
writing), and the Company shall execute, and the Trustee shall authenticate and
make available for delivery to the Holder of such Security without service
charge, a new Security or Securities, of any authorized denomination as
requested by such Holder, of the same tenor and in aggregate principal amount
equal to the portion of such Security not duly submitted for Purchase at Holder’s
Option.

 

(I)                                    Notwithstanding
anything herein to the contrary, there shall be no purchase of any Securities
pursuant to this Section 3.08 if there has
occurred (prior to, on or after, as the case may be, the giving, by the Holders
of such Securities, of the required Purchase Notice) and is continuing an Event
of Default (other than a Default in the payment of the Option Purchase Price or
accrued and unpaid interest, if any, payable as herein provided upon Purchase
at Holder’s Option).  The Paying Agent
will promptly return to the respective Holders thereof any Securities held by
it during the continuance of an Event of Default (other than a Default in the
payment of the Option Purchase Price or such accrued and unpaid interest).

 

(J)                                   Notwithstanding
anything herein to the contrary, if the option granted to Holders to require
the purchase of the Securities on the applicable Option Purchase Date is determined
to constitute a tender offer, the Company shall comply with all applicable
tender offer rules under the Exchange Act, including Rule 13e-4 and Regulation
14E, and with all other applicable laws, and will file a Schedule TO or
any other schedules required under the Exchange Act or any other applicable
laws.

 

3.09                           REPURCHASE
AT OPTION OF HOLDER
UPON A FUNDAMENTAL CHANGE.

 

(A)                              In
the event any Fundamental Change (as defined below) shall occur, each Holder of
Securities shall have the right (the “Fundamental Change
Repurchase Right”), at such Holder’s option, to require the Company
to repurchase all of such Holder’s Securities (or portions thereof that are
integral multiples of $1,000 in principal amount), on a date selected by the
Company (the “Fundamental Change Repurchase Date”),
which Fundamental Change Repurchase Date shall be no later than thirty (30)
Trading Days, and no earlier than twenty (20) Trading Days, after the date the
Fundamental Change Notice (as defined below) is mailed in accordance with Section 3.09(B), and no earlier than the date such
Fundamental Change occurs,

 

23

 

at a price, payable in cash (except, with respect to
any applicable Make-Whole Premium, to the extent provided in Section 3.09(J)), equal to one hundred percent (100%)
of the principal amount of the Securities (or portions thereof) to be so
repurchased (the “Fundamental Change
Repurchase Price”), plus accrued and unpaid interest, if any, to,
but excluding, the Fundamental Change Repurchase Date, plus, as determined in accordance with, and in
the manner and form as set forth in,  Section 3.09(J),
any applicable Make-Whole Premium, upon:

 

(i)                   delivery to the Company (if
it is acting as its own Paying Agent), or to a Paying Agent designated by the
Company for such purpose in the Fundamental Change Notice, no later than the
close of business on the Business Day immediately preceding the Fundamental Change
Repurchase Date, of a Purchase Notice, in the form set forth in the Securities
or any other form of written notice substantially similar thereto, in each
case, duly completed and signed, with appropriate signature guarantee, stating:

 

(a)                                  the
certificate number(s) of the Securities which the Holder will deliver to be
repurchased;

 

(b)                                 the
principal amount of Securities to be repurchased, which must be $1,000 or an
integral multiple thereof; and

 

(c)                                  that
such principal amount of Securities are to be repurchased pursuant to the terms
and conditions specified in paragraph 9 of
the Securities and in this Indenture; and

 

(ii)                delivery to the Company (if
it is acting as its own Paying Agent), or to a Paying Agent designated by the
Company for such purpose in the Fundamental Change Notice, at any time after
the delivery of such Purchase Notice, of such Securities (together with all
necessary endorsements) with respect to which the Fundamental Change Repurchase
Right is being exercised, such delivery being a condition to receipt by the
Holder of the Fundamental Change Repurchase Price therefor plus accrued and
unpaid interest, if any, payable as herein provided upon Repurchase Upon
Fundamental Change.

 

If such Securities are held in book-entry
form through the Depositary, the Purchase Notice shall comply with applicable
procedures of the Depositary.

 

Upon such delivery of Securities to the Company
(if it is acting as its own Paying Agent) or such Paying Agent, such Holder
shall be entitled to receive from the Company or such Paying Agent, as the case
may be, a nontransferable receipt of deposit evidencing such delivery.

 

Notwithstanding anything herein to the
contrary, any Holder delivering the Purchase Notice contemplated by this Section 3.09(A) to the Company (if it is acting as its
own Paying Agent) or to a Paying Agent designated by the Company for such
purpose in the Fundamental Change Notice shall have the right to withdraw such
Purchase Notice by delivery, at any time prior to the close of business on the Business
Day immediately preceding the Fundamental Change Repurchase Date, of a written
notice of withdrawal to the Company (if acting as its own

 

24

 

Paying Agent) or the Paying Agent, which notice shall contain the
information specified in Section 3.09(B)(xii).

 

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

 

(B)                                Within
fifteen (15) days after the occurrence of a Fundamental Change, the Company
shall mail, or cause to be mailed, to all Holders of record of the Securities
at their addresses shown in the register of the Registrar, and to beneficial
owners as required by applicable law, a notice (the “Fundamental
Change Notice”) of the occurrence of such Fundamental Change and the
Fundamental Change Repurchase Right arising as a result thereof.  The Company shall deliver a copy of the
Fundamental Change Notice to the Trustee.

 

Each Fundamental Change Notice shall state:

 

(i)                           the events
causing the Fundamental Change;

 

(ii)                        the date of
such Fundamental Change;

 

(iii)                     the Fundamental Change
Repurchase Date;

 

(iv)                    the date by which the
Fundamental Change Repurchase Right must be exercised;

 

(v)                       the Fundamental
Change Repurchase Price plus accrued and unpaid interest, if any, to, but
excluding, the Fundamental Change Repurchase Date and, if applicable, the
Make-Whole Premium;

 

(vi)                    if a Make-Whole Premium
shall be payable as provided herein with respect to such Fundamental Change, the
form and amount of consideration in which such Make-Whole Premium shall be
paid;

 

(vii)                 the names and addresses of
the Paying Agent and the Conversion Agent;

 

(viii)              a description of the
procedures which a Holder must follow to exercise the Fundamental Change
Repurchase Right;

 

(ix)                      that, in order
to exercise the Fundamental Change Repurchase Right, the Securities must be
surrendered for payment of the Fundamental Change Repurchase Price plus accrued
and unpaid interest, if any, payable as herein provided upon Repurchase Upon
Fundamental Change, plus any applicable Make-Whole Premium;

 

(x)                         that the
Fundamental Change Repurchase Price, plus accrued and unpaid interest, if any,
to, but excluding, the Fundamental Change Repurchase Date, plus any applicable Make-Whole
Premium, for any Security as to which a Purchase Notice has been given and not
withdrawn will be paid as promptly as practicable, but in no event more than
three (3) Business Days, following the later of such Fundamental

 

25

 

Change Repurchase Date and
the time of delivery of the Security (together with all necessary endorsements)
as described in clause (ix) above;

 

(xi)                       that, on and
after such Fundamental Change Repurchase Date (unless there shall be a Default
in the payment of such Fundamental Change Repurchase Price or such accrued and
unpaid interest), interest on Securities subject to Repurchase Upon Fundamental
Change will cease to accrue, such Securities shall cease to be convertible
pursuant to Article X, and all rights of
the Holders of such Securities shall terminate, other than the right to
receive, upon surrender of such Securities, the Fundamental Change Repurchase
Price and such accrued and unpaid interest and any applicable Make-Whole Premium;

 

(xii)                   that a Holder will be
entitled to withdraw its election in the Purchase Notice if the Company (if
acting as its own Paying Agent), or the Paying Agent receives, prior to the
close of business on the Business Day immediately preceding the Fundamental
Change Repurchase Date, or such longer period as may be required by law, a
letter or telegram, telex or facsimile transmission (receipt of which is
confirmed and promptly followed by a letter) setting forth (I) the name of such
Holder, (II) a statement that such Holder is withdrawing its election to have
Securities purchased by the Company on such Fundamental Change Repurchase Date
pursuant to a Repurchase Upon Fundamental Change, (III) the certificate number
of such Securities to be so withdrawn, (IV) the principal amount of the
Securities of such Holder to be so withdrawn, which amount must be $1,000 or an
integral multiple thereof and (V) the principal amount, if any, of the
Securities of such Holder that remain subject to the Purchase Notice delivered
by such Holder in accordance with this Section 3.09,
which amount must be $1,000 or an integral multiple thereof;

 

(xiii)                the Conversion Rate and any
adjustments to the Conversion Rate that will result from such Fundamental
Change;

 

(xiv)               that Securities with respect
to which a Purchase Notice is given by a Holder may be converted pursuant to Article X, if otherwise convertible in accordance with Article X, only if such Purchase Notice has been
withdrawn in accordance with this Section 3.09
or if there shall be a Default in the payment of the Fundamental Change
Repurchase Price or in the accrued and unpaid interest, if any, payable as
herein provided upon Repurchase Upon Fundamental Change or in any applicable
Make-Whole Premium; and

 

(xv)                  the CUSIP number or numbers,
as the case may be, of the Securities.

 

At the Company’s request, upon reasonable prior notice, the Trustee
shall, in the Company’s name and at the Company’s expense, mail such
Fundamental Change Notice to each Holder; provided, however,
that the form and content of such Fundamental Change Notice shall be prepared
by the Company.

 

No failure of the Company to give a Fundamental Change Notice shall
limit any Holder’s right to exercise a Fundamental Change Repurchase Right.

 

26

 

(C)                                Subject
to the provisions of this Section 3.09, the
Company shall pay, or cause to be paid, the Fundamental Change Repurchase
Price, plus accrued and unpaid interest, if any, to, but excluding, the
Fundamental Change Repurchase Date, plus, as provided in Section 3.09(J),
any applicable Make-Whole Premium, with respect to each Security as to which
the Fundamental Change Repurchase Right shall have been exercised to the Holder
thereof as promptly as practicable, but in no event more than three (3)
Business Days, following the later of the Fundamental Change Repurchase Date
and the time such Security is surrendered to the Paying Agent.

 

(D)                               Prior
to 10:00 A.M., New York City time on a Fundamental Change Repurchase Date, the
Company shall deposit with a Paying Agent (or, if the Company is acting as its
own Paying Agent, segregate and hold in trust in accordance with Section 2.04) money, in funds immediately available on
the Fundamental Change Repurchase Date, and, if applicable as provided in, and
in accordance with, Section 3.09(J),
such other consideration in which any applicable Make-Whole Premium is payable,
sufficient to pay the Fundamental Change Repurchase Price, plus accrued and
unpaid interest, if any, to, but excluding, the Fundamental Change Repurchase
Date, plus, in accordance with Section 3.09(J),
any applicable Make-Whole Premium, of all of the Securities that are to be
repurchased by the Company on such Fundamental Change Repurchase Date pursuant
to a Repurchase Upon Fundamental Change. 
The Paying Agent shall return to the Company, as soon as practicable,
any money, or any such other consideration, not required for that purpose.

 

(E)                                 Once
the Fundamental Change Notice and the Purchase Notice have been duly given in
accordance with this Section 3.09,
the Securities to be repurchased pursuant to a Repurchase Upon Fundamental
Change shall, on the Fundamental Change Repurchase Date, become due and payable
at the Fundamental Change Repurchase Price (plus accrued and unpaid interest,
if any, to, but excluding, the Fundamental Change Repurchase Date and any
applicable Make-Whole Premium) applicable thereto, and, on and after such date
(unless there shall be a Default in the payment of the Fundamental Change
Repurchase Price or such accrued and unpaid interest or any such Make-Whole
Premium), such Securities shall cease to bear interest and shall cease to be
convertible pursuant to Article X,
and all rights of the Holders of such Securities shall terminate, other than
the right to receive, in accordance with this Section 3.09,
the Fundamental Change Repurchase Price and such accrued and unpaid interest
and any such Make-Whole Premium.

 

(F)                                 Securities
with respect to which a Purchase Notice has been duly delivered in accordance
with this Section 3.09 may be converted
pursuant to Article X, if otherwise
convertible in accordance with Article X,
only if such Purchase Notice has been withdrawn in accordance with this Section 3.09 or if there shall be a Default in the
payment of the Fundamental Change Repurchase Price or in the accrued and unpaid
interest, if any, payable as herein provided upon Repurchase Upon Fundamental
Change or in any applicable Make-Whole Premium.

 

(G)                                If
any Security shall not be paid upon surrender thereof for Repurchase Upon
Fundamental Change, the principal of, and accrued and unpaid interest on, and
any Make-Whole Premium payable with respect to, such Security shall, until
paid, bear interest from, and including, the Fundamental Change Repurchase Date
at the rate borne by such Security on the

 

27

 

principal amount of such Security, and such Security
shall continue to be convertible pursuant to Article X.  Any interest accrued, pursuant to this Section 3.09(G), on any applicable Make-Whole Premium
shall be payable by the Company exclusively in cash.

 

(H)                               Any
Security which is to be submitted for Repurchase Upon Fundamental Change only
in part shall be delivered pursuant to this Section 3.09
(with, if the Company or the Trustee so requires, due endorsement by, or a
written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or its attorney duly authorized in
writing), and the Company shall execute, and the Trustee shall authenticate and
make available for delivery to the Holder of such Security without service
charge, a new Security or Securities, of any authorized denomination as
requested by such Holder, of the same tenor and in aggregate principal amount
equal to the portion of such Security not submitted for Repurchase Upon
Fundamental Change.

 

(I)                                    Notwithstanding
anything herein to the contrary, there shall be no purchase of any Securities
pursuant to this Section 3.09 if there has
occurred (prior to, on or after, as the case may be, the giving, by the Holders
of such Securities, of the required Purchase Notice) and is continuing an Event
of Default (other than a Default in the payment of the Fundamental Change
Repurchase Price or accrued and unpaid interest, if any, payable as herein
provided upon Repurchase Upon Fundamental Change or in any applicable
Make-Whole Premium).  The Paying Agent
will promptly return to the respective Holders thereof any Securities held by
it during the continuance of an Event of Default (other than a Default in the
payment of the Fundamental Change Repurchase Price or such accrued and unpaid
interest or in any applicable Make-Whole Premium).

 

(J)                                   Make-Whole Fundamental Changes.

 

(i)                   If a Holder of a Security
either:

 

(a)                                  elects
to require the Company, in accordance with this Section 3.09,
to repurchase such Security in connection with a Make-Whole Fundamental Change;
or

 

(b)                                 surrenders
such Security for conversion, in accordance with Article X,
at any time during the period that
begins on, and includes, the date that is fifteen (15) Business Days prior to
the date originally announced by the Company as the anticipated effective date
of such Make-Whole Fundamental Change (which anticipated effective date
the Company shall disclose, in good faith, in the written notice, public
announcement and publication referred to in Section 10.01(C))
and ends on, and includes, the
date that is fifteen (15) Business Days after the actual effective date of such
Make-Whole Fundamental Change,

 

then such Holder shall be entitled to receive
a Make-Whole Premium (as determined in accordance with, and in the manner and form as set
forth, in this Section 3.09(J)) from
the Company in addition to any other consideration that is otherwise payable,
as herein provided, to such Holder in connection with such repurchase or
conversion, as the case may be.

 

28

 

(ii)                As used herein, “Make-Whole Premium” shall mean, with respect to a Security
to be converted or repurchased in connection with a Make-Whole Fundamental
Change, an amount, payable in the form and amount of consideration set forth in
Section 3.09(J)(iv), equal to the
product of the Applicable Percentage for such Make-Whole Fundamental Change and
the principal amount of such Security to be converted or repurchased.  As used herein, “Applicable
Percentage” shall mean, with respect to a Make-Whole Fundamental
Change, the percentage, set forth in the following table, which corresponds to
the effective date of such Make-Whole Fundamental Change (the “Effective Date”) and the Applicable Price of such Make-Whole
Fundamental Change:

 

	
   

  	
   

  	
  Effective Date

  	
   

  
	
  Applicable Price

  	
   

  	
  November 2,

  2004

  	
   

  	
  November 1,

  2005

  	
   

  	
  November 1,

  2006

  	
   

  	
  November 1,

  2007

  	
   

  	
  November 1,

  2008

  	
   

  	
  November 1,

  2009

  	
   

  
	
  $

  	
  13.34

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
  $

  	
  20.00

  	
   

  	
  21.9

  	
  %

  	
  20.0

  	
  %

  	
  17.9

  	
  %

  	
  14.9

  	
  %

  	
  10.3

  	
  %

  	
  0.0

  	
  %

  
	
  $

  	
  25.00

  	
   

  	
  17.6

  	
  %

  	
  15.5

  	
  %

  	
  13.0

  	
  %

  	
  9.7

  	
  %

  	
  5.0

  	
  %

  	
  0.0

  	
  %

  
	
  $

  	
  30.00

  	
   

  	
  14.4

  	
  %

  	
  12.3

  	
  %

  	
  9.8

  	
  %

  	
  6.6

  	
  %

  	
  2.6

  	
  %

  	
  0.0

  	
  %

  
	
  $

  	
  35.00

  	
   

  	
  12.1

  	
  %

  	
  10.0

  	
  %

  	
  7.5

  	
  %

  	
  4.7

  	
  %

  	
  1.5

  	
  %

  	
  0.0

  	
  %

  
	
  $

  	
  40.00

  	
   

  	
  10.2

  	
  %

  	
  8.2

  	
  %

  	
  6.0

  	
  %

  	
  3.5

  	
  %

  	
  0.9

  	
  %

  	
  0.0

  	
  %

  
	
  $

  	
  45.00

  	
   

  	
  8.8

  	
  %

  	
  6.9

  	
  %

  	
  4.9

  	
  %

  	
  2.7

  	
  %

  	
  0.7

  	
  %

  	
  0.0

  	
  %

  
	
  $

  	
  50.00

  	
   

  	
  7.6

  	
  %

  	
  5.8

  	
  %

  	
  4.0

  	
  %

  	
  2.1

  	
  %

  	
  0.5

  	
  %

  	
  0.0

  	
  %

  
	
  $

  	
  55.00

  	
   

  	
  6.6

  	
  %

  	
  5.0

  	
  %

  	
  3.3

  	
  %

  	
  1.7

  	
  %

  	
  0.4

  	
  %

  	
  0.0

  	
  %

  
	
  $

  	
  60.00

  	
   

  	
  5.8

  	
  %

  	
  4.3

  	
  %

  	
  2.8

  	
  %

  	
  1.4

  	
  %

  	
  0.4

  	
  %

  	
  0.0

  	
  %

  
	
  $

  	
  65.00

  	
   

  	
  5.1

  	
  %

  	
  3.7

  	
  %

  	
  2.4

  	
  %

  	
  1.2

  	
  %

  	
  0.3

  	
  %

  	
  0.0

  	
  %

  
	
  $

  	
  70.00

  	
   

  	
  4.4

  	
  %

  	
  3.2

  	
  %

  	
  2.0

  	
  %

  	
  1.0

  	
  %

  	
  0.3

  	
  %

  	
  0.0

  	
  %

  
	
  $

  	
  75.00

  	
   

  	
  3.9

  	
  %

  	
  2.8

  	
  %

  	
  1.7

  	
  %

  	
  0.8

  	
  %

  	
  0.2

  	
  %

  	
  0.0

  	
  %

  
	
  $

  	
  80.00

  	
   

  	
  3.4

  	
  %

  	
  2.4

  	
  %

  	
  1.5

  	
  %

  	
  0.7

  	
  %

  	
  0.2

  	
  %

  	
  0.0

  	
  %

  
	
  $

  	
  85.00

  	
   

  	
  3.0

  	
  %

  	
  2.1

  	
  %

  	
  1.2

  	
  %

  	
  0.6

  	
  %

  	
  0.2

  	
  %

  	
  0.0

  	
  %

  
	
  $

  	
  90.00

  	
   

  	
  2.6

  	
  %

  	
  1.8

  	
  %

  	
  1.0

  	
  %

  	
  0.5

  	
  %

  	
  0.1

  	
  %

  	
  0.0

  	
  %

  
	
  $

  	
  95.00

  	
   

  	
  2.3

  	
  %

  	
  1.5

  	
  %

  	
  0.8

  	
  %

  	
  0.4

  	
  %

  	
  0.1

  	
  %

  	
  0.0

  	
  %

  
	
  $

  	
  100.00

  	
   

  	
  2.0

  	
  %

  	
  1.3

  	
  %

  	
  0.7

  	
  %

  	
  0.3

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  

 

provided, however, that:

 

(a)                                  if
the actual Applicable Price of such Make-Whole Fundamental Change is between
two (2) prices listed in the table above under the column titled “Applicable
Price,” or if the actual Effective Date of such Make-Whole Fundamental Change
is between two dates listed in the table above in the row immediately below the
title “Effective Date,” then the Applicable Percentage for such Make-Whole Fundamental
Change shall be determined by linear interpolation between the Applicable
Percentages set forth for such two prices , or for such two dates based on a
three hundred and sixty five (365) day year, as applicable;

 

(b)                                 if
the actual Applicable Price of such Make-Whole Fundamental Change is greater
than one hundred dollars ($100.00) per share (subject to adjustment as provided
in Section 3.09(J)(ii)(c)), or if the
actual Applicable Price of such Make-Whole Fundamental Change is equal to or
less than thirteen dollars and thirty four cents ($13.34) per share (subject to
adjustment as provided in Section 3.09(J)(ii)(c)),
then the Applicable Percentage shall be equal to zero (0); and

 

29

 

(c)                                  if
an event occurs that requires, pursuant to Article X,
an adjustment to the Conversion Rate, then, on the date and at the time such
adjustment is required, pursuant to Article X,
to be made, each price set forth in the table above under the column titled “Applicable
Price” shall be deemed to be adjusted so that such price, at and after such
time, shall be equal to the product of (1) such price as in effect immediately
before such adjustment to such price and (2) a fraction whose numerator is the
Conversion Rate in effect immediately before such adjustment to the Conversion
Rate and whose denominator is the Conversion Rate to be in effect, in
accordance with Article X, immediately after
such adjustment to the Conversion Rate.

 

(iii)             As used herein, “Applicable Price” shall have the following meaning with
respect to a Make-Whole Fundamental Change: (a) if such Make-Whole Fundamental
Change is a transaction or series of transactions as a result of which fifty
percent (50%) or more of the shares of Common Stock outstanding immediately
before such Make-Whole Fundamental Change are exchanged for, converted into,
acquired for, or constitute solely the right to receive, solely cash, then the “Applicable
Price” with respect to such Make-Whole Fundamental Change shall mean the cash
amount paid per share of Common Stock exchanged, converted, acquired or
constituting such a right in such transaction or series of transactions; and
(b) in all other circumstances, the “Applicable Price” with respect to such
Make-Whole Fundamental Change shall mean the average of the Closing Sale Prices
per share of Common Stock for the five (5) consecutive Trading Days immediately
preceding the Effective Date of such Make-Whole Fundamental Change, which
average shall be appropriately adjusted by the Board of
Directors, in its good faith determination (which determination shall be
described in a Board Resolution), to account for any adjustment, pursuant
hereto, to the Conversion Rate that shall become effective, or any event
requiring, pursuant hereto, an adjustment to the Conversion Rate where the Ex
Date of such event occurs, at any time during such five (5) consecutive Trading
Days.

 

(iv)            The Make-Whole Premium with
respect to a Make-Whole Fundamental Change shall be paid by the Company solely
in the same form of consideration which shares of Common Stock are exchanged
for, converted into, acquired for, or constitute solely the right to receive as
a result of the transaction or transactions constituting such Make-Whole
Fundamental Change, assuming that the holder of such shares would not have
exercised any rights of election that such holder would have had as a holder of
Common Stock to select a particular type of consideration.  The amount of such consideration payable hereunder
with respect to a Make-Whole Premium shall be such amount whose value is equal
to the amount, calculated in accordance herewith, of such Make-Whole
Premium.  For purposes hereof, such
consideration shall be valued as follows:

 

(a)                                  securities
that are traded on a U.S. national securities exchange or approved for
quotation on The Nasdaq National Market or any similar system of automated
dissemination of quotations of securities prices shall be valued at the average
closing price or last sale price, as applicable, of such securities over the
ten (10) consecutive Trading Days ending on, and including, the second Trading

 

30

 

Day immediately preceding the applicable Fundamental Change Repurchase
Date;

 

(b)                                 securities
that are neither traded on a U.S. national securities exchange nor approved for
quotation on The Nasdaq National Market or any similar system of automated
dissemination of quotations of securities, and assets or property (other than
cash), shall be valued at ninety eight percent (98%) of the average of the fair
market value, as of the close of business on the Trading Day immediately
preceding the applicable Fundamental Change Repurchase Date, of such
securities, assets or property, as the case may be, as determined by two (2)
independent, nationally recognized investment banks selected by the Trustee;
and

 

(c)                                  cash
shall be valued at one hundred percent (100%) of its face value;

 

provided, however, that, if any such consideration consists of
securities, then (1) the Company shall cause each Holder that is entitled,
pursuant to this Section 3.09(J), to receive
any such securities to be treated, as of the open of business on the applicable
Fundamental Change Repurchase Date, as a stockholder of record of the issuer of
such securities; and (2) the Board of Directors shall, in its good faith
determination (which determination shall be described in a Board Resolution), appropriately adjust the value, as
specified in Section 3.09(J)(iv)(a) or Section 3.09(J)(iv)(b), as applicable, of such securities
to account for any event that, assuming such securities were Common
Stock, would require, pursuant hereto, an adjustment to the Conversion Rate to
become effective, or any such event whose Ex Date occurs, at any time during
the period that begins, in the case such securities are valued in accordance
with Section 3.09(J)(iv)(a), on the first Trading Day in the
ten (10) consecutive Trading Days referred to in Section 3.09(J)(iv)(a) or, in the case such securities
are valued in accordance with Section 3.09(J)(iv)(b), begins on the day immediately after the Trading Day
immediately preceding the applicable Fundamental Change Repurchase Date and, in
either case, ends on the date such
securities are delivered to such Holder in accordance herewith.

 

The type and amount of consideration in which
a Make-Whole Premium that is payable pursuant to this Section 3.09(J)
shall be paid, in addition to the manner in which the amount of such
consideration is calculated, shall be publicly announced, through a reputable national
newswire service, by the Company, and published on the Company’s website, no later than the open of business on
the applicable Fundamental Change Repurchase Date.

 

Notwithstanding anything to the contrary in
this Section 3.09(J)(iv), if the
Company shall be legally or otherwise unable to cause any Make-Whole Premium
payable to a Holder pursuant to this Section 3.09(J)
to be paid in the form of consideration specified in the first sentence of this
Section 3.09(J)(iv), then the
Company shall cause such Make-Whole Premium to be paid to such Holder
exclusively in cash.

 

31

 

(v)               The Company shall cause any
Make-Whole Premium payable with respect to a Security in connection with the
conversion of such Security pursuant to Article X
to be paid, through the Conversion Agent, as soon as practicable, but in no
event after the later of (a) the applicable Fundamental Change Repurchase Date
and (b) the date such Security is tendered for such conversion.  The Company shall cause any Make-Whole
Premium payable with respect to a Security in connection with the Company’s
repurchase of such Security pursuant to this Section 3.09
to be paid within the time period specified in Section 3.09(C).

 

(K)                               As
used herein and in the Securities:

 

A “Fundamental Change” shall be
deemed to have occurred upon the occurrence of either a “Change in Control” or
a “Termination of Trading.”

 

A “Change in Control” shall be deemed
to have occurred at such time as:

 

(i)                                    any “person” or
“group” (as such terms are used for purposes of Sections 13(d) and 14(d) of the
Exchange Act) is or becomes the “beneficial owner” (as such term is used in
Rule 13d-3 under the Exchange Act), directly or indirectly, of fifty percent
(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; or

 

(ii)                                 at any time the
following persons cease for any reason to constitute a majority of the Company’s
Board of Directors:

 

(1)                                  individuals
who on the Issue Date constituted the Company’s Board of Directors; and

 

(2)                                  any
new directors whose election to the Company’s Board of Directors or whose
nomination for election by the Company’s stockholders was approved by at least
a majority of the directors of the Company then still in office either who were
directors of the Company on the Issue Date or whose election or nomination for
election was previously so approved; or

 

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

 

(iv)                    the sale, transfer, lease,
conveyance or other disposition of all or substantially all of the property or
assets of the Company to any “person” or “group” (as such terms are used in
Sections 13(d) and 14(d) of the Exchange Act), including any

 

32

 

group acting for the purpose
of acquiring, holding, voting or disposing of securities within the meaning of
Rule 13d-5(b)(1) under the Exchange Act; or

 

(v)                       the Company is
liquidated or dissolved or the holders of the Company’s Capital Stock approve
any plan or proposal for the liquidation or dissolution of the Company;

 

provided, however, that a merger or consolidation shall be deemed not
to constitute Change in Control if:

 

(I)                                                 all of the
consideration (other than cash payments for fractional shares or pursuant to
statutory appraisal rights) in such merger or consolidation consists of common
stock and any associated rights traded on a U.S. national securities exchange
or quoted on The Nasdaq National Market (or which will be so traded or quoted
when issued or exchanged in connection with such merger or consolidation) (provided, however, that
if an entity that is organized and existing under the laws of a jurisdiction
outside the United States is a party to such merger or consolidation, then such
consideration may consist of American Depositary Shares traded on a U.S.
national securities exchange or quoted on The Nasdaq National Market (together
with any associated rights) in lieu of common stock so traded or quoted
(together with any associated rights) provided such merger or consolidation
also constitutes a Qualifying Foreign Merger); and

 

(II)                                             as a result of
such merger or consolidation, the Securities become convertible solely into
such common stock and associated rights (or, in the case of a Qualifying
Foreign Merger, such American Depositary Shares and associated rights).

 

A “Termination of Trading”
shall occur if the Common Stock of the Company (or other common stock into
which the Securities are then convertible) is neither listed for trading on a
U.S. national securities exchange nor approved for trading on an established
automated over-the-counter trading market in the United States; provided, however, that a
“termination of trading” shall not be deemed to have occurred solely by reason
of the Company engaging in a Qualifying Foreign Merger, provided
that, immediately after such Qualifying Foreign Merger, the Holders shall have
the right to convert their Securities solely into common stock or American
Depositary Shares representing such common stock traded on a U.S. national
securities exchange or quoted on The Nasdaq National Market, until such time as
such common stock or American Depositary Shares on such common stock into which
the Securities are solely convertible are no longer so traded or quoted.

 

33

 

IV.                                 COVENANTS

 

4.01                           PAYMENT OF SECURITIES.

 

The Company shall pay all amounts due with respect to the Securities on
the dates and in the manner provided in the Securities.  All such amounts shall be considered paid on
the date due if the Paying Agent holds (or, if the Company is acting as Paying
Agent, the Company has segregated and holds in trust in accordance with Section 2.04) on that date money (and, if applicable as
provided herein and in accordance herewith, such other consideration in which
any applicable Make-Whole Premium is payable) sufficient to pay the amount then
due with respect to the Securities (unless there shall be a Default in the
payment of such amounts to the respective Holder(s)).

 

The Company shall pay interest on any overdue amount (including, to the
extent permitted by applicable law, overdue interest) at the rate borne by the
Securities.

 

4.02                           MAINTENANCE
OF OFFICE OR AGENCY.

 

The Company will maintain in the Borough of Manhattan, The City of New
York, or in The City of Chicago, an office or agency (which may be an office of
the Trustee or an Affiliate of the Trustee, Registrar or co-Registrar) where
Securities may be surrendered for registration of transfer or exchange or conversion
and where notices and demands to or upon the Company in respect of the
Securities and this Indenture may be served. 
The Company will give prompt written notice to the Trustee of the
location, and any change in the location, of such office or agency.  If at any time the Company shall fail to maintain
any such required office or agency or shall fail to furnish the Trustee with
the address thereof, such presentations, surrenders, notices and demands may be
made or served at the Corporate Trust Office of the Trustee.

 

The Company may also from time to time designate one or more other
offices or agencies where the Securities may be presented or surrendered for
any or all such purposes and may from time to time rescind such designations; provided, however, that
no such designation or rescission shall in any manner relieve the Company of
its obligation to maintain an office or agency in the Borough of Manhattan, The
City of New York, or in The City of Chicago, for such purposes.  The Company will give prompt written notice
to the Trustee of any such designation or rescission and of any change in the
location of any such other office or agency.

 

The Company hereby designates the Corporate Trust Office of the Trustee
as an agency of the Company in accordance with Section 2.03.

 

4.03                           RULE
144A INFORMATION AND
ANNUAL REPORTS.

 

(A)                              At
any time when the Company is not subject to Sections 13 or 15(d) of the
Exchange Act, the Company shall promptly provide to the Trustee and shall, upon
request, provide to any Holder, beneficial owner or prospective purchaser of
Securities or shares of Common Stock issued upon conversion of any Securities,
the information required to be delivered pursuant to Rule 144A(d)(4) under the
Securities Act to facilitate the resale of such Securities or shares of Common
Stock pursuant to Rule 144A.  The Company
shall take such further action as any Holder or beneficial holder of such
Securities or shares of Common Stock

 

34

 

may reasonably request to the extent required from
time to time to enable such Holder or beneficial holder to sell its Securities
or shares of Common Stock in accordance with Rule 144A, as such rule may be
amended from time to time.

 

(B)                                The
Company shall, in accordance with TIA § 314(a), deliver to the Trustee,
within thirty (30) calendar days after the Company files such annual reports,
information, documents and other reports with the SEC, copies of the Company’s
annual reports (which shall contain audited financial statements of the
Company) and of the information, documents and other reports (or copies of such
portions of any of the foregoing as the SEC may by rules and regulations
prescribe) which the Company is required to file with the SEC pursuant to Section 13
or Section 15(d) of the Exchange Act;
provided, however, that the
Company shall not be required to deliver to the Trustee any material for which
the Company has sought and received confidential treatment by the SEC.  In the event the Company is at any time no
longer subject to the reporting requirements of Section 13 or Section 15(d)
of the Exchange Act, the Company shall continue to provide the Trustee and to
each Holder, within thirty (30) calendar days after the date the Company would
have been required to file such reports with the SEC, annual and quarterly
consolidated financial statements substantially equivalent to financial
statements that would have been included in reports filed with the SEC if the
Company were subject to the reporting requirements of Section 13 or Section 15(d)
of the Exchange Act, including, with respect to annual information only, a
report thereon by the Company’s certified independent public accountants as
such would be required in such reports filed with the SEC and, in each case,
together with a management’s discussion and analysis of financial condition and
results of operations which would be so required. The Company also shall comply
with the other provisions of TIA § 314(a).

 

4.04                           COMPLIANCE
CERTIFICATE.

 

The Company shall deliver to the Trustee, within ninety (90) calendar
days after the end of each fiscal year of the Company, or, if earlier, by the
date the Company is, or would be, required to file with the SEC the Company’s
annual report (whether on Form 10-K under the Exchange Act or another
appropriate form) for such fiscal year, an Officers’ Certificate stating
whether or not the signatories to such Officers’ Certificate know of any
Default or Event of Default by the Company in performing any of its obligations
under this Indenture or the Securities. 
If such signatories do know of any such Default or Event of Default,
then such Officers’ Certificate shall describe the Default or Event of Default
and its status.

 

4.05                           STAY, EXTENSION AND USURY LAWS.

 

The Company covenants (to the extent that it may lawfully do so) that
it will 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 wherever
enacted, now or at any time hereafter in force, which may affect the covenants
or the performance of this Indenture; and the Company (in each case, to the
extent that it may lawfully do so) hereby expressly waives all benefit or
advantage of any such law, and covenants that it will not, 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 has been enacted.

 

35

 

4.06                           CORPORATE EXISTENCE.

 

Subject to Article V,
the Company will do or cause to be done all things necessary to preserve and
keep in full force and effect its corporate existence and the corporate
existence of each of its Subsidiaries, in accordance with the respective
organizational documents of the Company and of each Subsidiary, and the rights
(charter and statutory), licenses and franchises of the Company and its
Subsidiaries; provided, however,
that the Company shall not be required to preserve any such right, license or
franchise, or the corporate existence of any Subsidiary, if in the good faith
judgment of the Board of Directors (i) such preservation or existence is not
material to the conduct of business of the Company and (ii) the loss of such
right, license or franchise or the dissolution of such Subsidiary does not have
a material adverse impact on the Holders.

 

4.07                           NOTICE OF DEFAULT.

 

In the event that any Default or Event of Default shall occur, the
Company shall give prompt written notice of such Default or Event of Default,
and any remedial action proposed to be taken, to the Trustee.

 

4.08                           FURTHER
INSTRUMENTS AND ACTS.

 

Upon request of the Trustee, the Company shall execute and deliver such
further instruments and do such further acts as may be reasonably necessary or
proper to carry out more effectively the purposes of this Indenture.

 

V.                                     SUCCESSORS

 

5.01                           WHEN COMPANY MAY MERGE, ETC.

 

The Company shall not consolidate with, or merge with or into, or sell,
transfer, lease, convey or otherwise dispose of all or substantially all of the
property or assets of the Company to, another person, whether in a single
transaction or series of related transactions, unless:

 

(i)                                    such other
person is either:

 

(a)                                  a
corporation organized and existing under the laws of the United States, any
State thereof or the District of Columbia; or

 

(b)                                 a
corporation organized and existing under the laws of a jurisdiction outside the
United States, provided, that (A) such person
has common stock or American Depository Shares representing such common stock
traded on a national securities exchange in the United States or quoted on The
Nasdaq National Market; (B) such person has a worldwide total market
capitalization of its equity securities (before giving effect to such
consolidation, merger, sale, transfer, lease, conveyance or disposition) of at
least $5 billion; (C) such person has, prior to such consolidation, merger,
sale, transfer, lease, conveyance or disposition, consented to service of
process in the United States; (D) prior to such

 

36

 

consolidation, merger, sale, transfer, lease, conveyance or
disposition, the Company shall have made provision for the satisfaction of the
Company’s obligations under Section 3.09
to repurchase Securities in connection with a Fundamental Change, if any; and
(E) prior to such consolidation, merger, sale, transfer, lease, conveyance or
disposition, the Company shall have obtained an opinion of tax counsel
experienced in such matters to the effect that, under the then-existing U.S.
federal tax laws, there would be no material adverse tax consequences to
Holders resulting from such consolidation, merger, sale, transfer, lease,
conveyance or disposition (any such consolidation, merger, sale, transfer,
lease, conveyance or disposition satisfying the requirements of this Section 5.01(i)(b), a “Qualifying
Foreign Merger”); and

 

(ii)                                 such person
assumes by supplemental indenture all the obligations of the Company under the
Securities and this Indenture; and

 

(iii)                              immediately
after giving effect to such transaction or series of transactions, no Default
or Event of Default shall exist.

 

The Company shall deliver to the Trustee prior to the consummation of
the proposed transaction an Officers’ Certificate to the foregoing effect and
an Opinion of Counsel (which may rely upon such Officers’ Certificate as to the
absence of Defaults and Events of Default) stating that the proposed
transaction and such supplemental indenture will, upon consummation of the
proposed transaction, comply with this Indenture.

 

5.02                           SUCCESSOR SUBSTITUTED.

 

Upon any consolidation, merger or any sale, transfer, lease, conveyance
or other disposition of all or substantially all of the property or assets of
the Company, the successor person formed by such consolidation or into which
the Company is merged or to which such sale, transfer, lease, conveyance or
other disposition is made shall succeed to, and, except in the case of a lease,
be substituted for, and may exercise every right and power of, and shall assume
every duty and obligation of, the Company under this Indenture with the same
effect as if such successor had been named as the Company herein.  When the successor assumes all obligations of
the Company hereunder, except in the case of a lease, all obligations of the
predecessor shall terminate.

 

VI.                                 DEFAULTS AND
REMEDIES

 

6.01                           EVENTS OF DEFAULT.

 

An “Event of Default” occurs if:

 

(i)                           the Company
fails to pay the principal of, or premium, if any, on, any Security when the
same becomes due and payable, whether at maturity, upon Redemption, on an
Option Purchase Date with respect to a Purchase at Holder’s Option, on a
Fundamental Change Repurchase Date with respect to a Repurchase Upon
Fundamental Change or otherwise;

 

37

 

(ii)                        the Company
fails to pay an installment of interest or additional interest on any Security
when due, if such failure continues for thirty (30) days after the date when
due;

 

(iii)                     the Company fails to satisfy
its conversion obligations upon exercise of a Holder’s conversion rights
pursuant hereto;

 

(iv)                    the Company fails to timely
provide a Fundamental Change Notice, or an Option Purchase Notice, as required
by the provisions of this Indenture;

 

(v)                       the Company
fails to comply with any other term, covenant or agreement set forth in the
Securities or this Indenture and such failure continues for the period, and
after the notice, specified below;

 

(vi)                    the Company or any of its
Subsidiaries defaults in the payment when due, after the expiration of any
applicable grace period, of principal of, or premium, if any, or interest on,
Indebtedness for money borrowed, in the aggregate principal amount then
outstanding of ten million dollars ($10,000,000) or more, or the acceleration
of Indebtedness of the Company or any of its Subsidiaries for money borrowed in
such aggregate principal amount or more so that it becomes due and payable
prior to the date on which it would otherwise become due and payable and such
default is not cured or waived, or such acceleration is not rescinded, within
thirty (30) days after notice to the Company by the Trustee or to the Company
and the Trustee by Holders of at least twenty five percent (25%) in the
aggregate principal amount of the Securities then outstanding, each in
accordance with this Indenture;

 

(vii)                 the Company or any of its
Subsidiaries fails to pay final judgments, the aggregate uninsured portion of
which is at least ten million dollars ($10,000,000), and such judgments are not
paid or discharged within thirty (30) days;

 

(viii)              the Company or any of its
Significant Subsidiaries or any group of Subsidiaries that in the aggregate
would constitute a Significant Subsidiary of the Company, pursuant to, or
within the meaning of, any Bankruptcy Law, insolvency law, or other similar law
now or hereafter in effect or otherwise, either:

 

(A)                              commences
a voluntary case,

 

(B)                                consents
to the entry of an order for relief against it in an involuntary case,

 

(C)                                consents
to the appointment of a Custodian of it or for all or substantially all of its
property, or

 

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

 

(ix)                      a court of
competent jurisdiction enters an order or decree under any Bankruptcy Law that:

 

38

 

(A)                              is
for relief against the Company or any of its Significant Subsidiaries or any
group of Subsidiaries that in the aggregate would constitute a Significant
Subsidiary of the Company in an involuntary case or proceeding, or adjudicates
the Company or any of its Significant Subsidiaries or any group of Subsidiaries
that in the aggregate would constitute a Significant Subsidiary of the Company
insolvent or bankrupt,

 

(B)                                appoints
a Custodian of the Company or any of its Significant Subsidiaries or any group
of Subsidiaries that in the aggregate would constitute a Significant Subsidiary
of the Company for all or substantially all of the property of the Company or
any such Significant Subsidiary or any group of Subsidiaries that in the
aggregate would constitute a Significant Subsidiary of the Company, as the case
may be, or

 

(C)                                orders
the winding up or liquidation of the Company or any of its Significant
Subsidiaries or any group of Subsidiaries that in the aggregate would
constitute a Significant Subsidiary of the Company,

 

and, in the case of each of the foregoing
clauses (A), (B) and (C) of this Section 6.01(ix),
the order or decree remains unstayed and in effect for at least ninety (90)
consecutive days.

 

The term “Bankruptcy Law”
means Title 11, U.S. Code or any similar Federal or State law for the relief of
debtors.  The term “Custodian”
means any receiver, trustee, assignee, liquidator or similar official under any
Bankruptcy Law.

 

A Default under clause (v)
above is not an Event of Default until (I) the Trustee notifies the Company, or
the Holders of at least twenty five percent (25%) in aggregate principal amount
of the Securities then outstanding notify the Company and the Trustee, of the
Default and (II) the Default is not cured within thirty (30) days after receipt
of such notice.  Such notice must specify
the Default, demand that it be remedied and state that the notice is a “Notice of Default.” 
If the Holders of at least twenty five percent (25%) in aggregate
principal amount of the outstanding Securities request the Trustee to give such
notice on their behalf, the Trustee shall do so.  When a Default is cured, it ceases.

 

6.02                           ACCELERATION.

 

If an Event of Default (excluding an Event of Default specified in Section 6.01(viii) or (ix)
with respect to the Company (but including an Event of Default specified in Section 6.01(viii) or (ix) solely
with respect to a Significant Subsidiary of the Company or any group of
Subsidiaries that in the aggregate would constitute a Significant Subsidiary of
the Company)) occurs and is continuing, the Trustee by notice to the Company,
or the Holders of at least twenty five percent (25%) in aggregate principal
amount of the Securities then outstanding by notice to the Company and the
Trustee, may declare the Securities to be immediately due and payable in
full.  Upon such declaration, the
principal of, and any premium and accrued and unpaid interest (including any
additional interest) on, all Securities shall be due and payable
immediately.  If an Event of Default
specified in Section 6.01(viii) or (ix) with respect to the Company (excluding,

 

39

 

for purposes of this sentence, an Event of
Default specified in Section 6.01(viii) or (ix) solely with respect to a Significant Subsidiary of the
Company or any group of Subsidiaries that in the aggregate would constitute a
Significant Subsidiary of the Company) occurs, the principal of, and premium
and accrued and unpaid interest (including any additional interest) on, all the
Securities shall ipso facto become and be
immediately due and payable without any declaration or other act on the part of
the Trustee or any Holder.  The Holders
of a majority in aggregate principal amount of the Securities then outstanding
by written notice to the Trustee may rescind or annul an acceleration and its
consequences if (A) the rescission would not conflict with any order or decree,
(B) all existing Events of Default, except the nonpayment of principal, premium
or interest that has become due solely because of the acceleration, have been
cured or waived and (C) all amounts due to the Trustee under Section 7.07 have been paid.

 

6.03                           OTHER REMEDIES.

 

Notwithstanding any other provision of this Indenture, if an Event of
Default occurs and is continuing, the Trustee may pursue any available remedy
by proceeding at law or in equity to collect the payment of amounts due with
respect to the Securities or to enforce the performance of any provision of the
Securities or this Indenture.

 

The Trustee may maintain a proceeding even if it does not possess any
of the Securities or does not produce any of them in the proceeding.  A delay or omission by the Trustee or any
Holder in exercising any right or remedy accruing upon an Event of Default
shall not impair the right or remedy or constitute a waiver of or acquiescence
in the Event of Default.  All remedies
are cumulative.

 

6.04                           WAIVER OF
PAST DEFAULTS.

 

Subject to Sections  6.07 and 9.02, the
Holders of a majority in aggregate principal amount of the Securities then
outstanding may, by notice to the Trustee, waive any past Default or Event of
Default and its consequences, other than (A) a Default or Event of Default in
the payment of the principal of, or premium, if any, or interest or additional
interest on, any Security, or in the payment of the Redemption Price, the
Option Purchase Price or the Fundamental Change Repurchase Price (or accrued
and unpaid interest, if any, payable as herein provided, upon Redemption,
Purchase at Holder’s Option or Repurchase Upon Fundamental Change), (B) a
Default or Event of Default arising from a failure by the Company to convert
any Securities in accordance with this Indenture or (C) any Default or Event of
Default in respect of any provision of this Indenture or the Securities which,
under Section 9.02, cannot be modified
or amended without the consent of the Holder of each outstanding Security
affected.  When a Default or an Event of
Default is waived, it is cured and ceases. 
This Section 6.04 shall be in lieu
of TIA § 316(a)(1)(B), and, as permitted by the TIA, TIA § 316(a)(1)(B)
is hereby expressly excluded from this Indenture.

 

6.05                           CONTROL BY
MAJORITY.

 

The Holders of a majority in aggregate principal amount of the
Securities then outstanding may 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 it.  However, the
Trustee

 

40

 

may refuse to follow any direction that
conflicts with law or this Indenture, is unduly prejudicial to the rights of
other Holders or would involve the Trustee in personal liability unless the
Trustee is offered indemnity reasonably satisfactory to it; provided, that the Trustee may take any other action deemed
proper by the Trustee which is not inconsistent with such direction.  This Section 6.05
shall be in lieu of TIA § 316(a)(1)(A), and, as permitted by the TIA, TIA § 316(a)(1)(A)
is hereby expressly excluded from this Indenture.

 

6.06                           LIMITATION ON
SUITS.

 

Except as provided in Section 6.07,
a Securityholder may not institute any proceeding under this Indenture,
or for the appointment of a receiver or a trustee, or for any other remedy
under this Indenture unless:

 

(i)                           the Holder
gives to the Trustee written notice of a continuing Event of Default;

 

(ii)                        the Holders of
at least twenty five percent (25%) in aggregate principal amount of the Securities
then outstanding make a written request to the Trustee to pursue the remedy;

 

(iii)                     such Holder or Holders offer
and, if requested, provide to the Trustee indemnity reasonably satisfactory to
the Trustee against any loss, liability or expense;

 

(iv)                    the Trustee does not comply
with the request within sixty (60) days after receipt of notice, the request
and the offer of indemnity; and

 

(v)                       during such
sixty (60) day period, the Holders of a majority in aggregate principal amount
of the Securities then outstanding do not give the Trustee a direction inconsistent
with the request.

 

A Securityholder may not use this Indenture to prejudice the rights of
another Securityholder or to obtain a preference or priority over another
Securityholder.

 

6.07                           RIGHTS OF
HOLDERS TO RECEIVE
PAYMENT.

 

Notwithstanding any other provision of this Indenture, the right of any
Holder to receive payment of all amounts due with respect to the Securities, on
or after the respective due dates as provided herein, or to bring suit for the
enforcement of any such payment on or after such respective dates, shall not be
impaired or affected without the consent of the Holder.

 

Notwithstanding any other provision of this Indenture, the right of any
Holder to bring suit for the enforcement of the right to convert the Security
in accordance with this Indenture shall not be impaired or affected without the
consent of the Holder.

 

6.08                           COLLECTION
SUIT BY TRUSTEE.

 

If an Event of Default specified in Section 6.01(i)
or (ii) occurs and is continuing, the
Trustee may recover judgment in its own name and as trustee of an express trust
against the

 

41

 

Company for the whole amount due with respect
to the Securities, including any unpaid and accrued interest.

 

6.09                           TRUSTEE
MAY FILE PROOFS OF
CLAIM.

 

The Trustee may 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,
any predecessor Trustee and the Securityholders allowed in any judicial
proceedings relative to the Company or its creditors or properties.

 

The Trustee may collect and receive any moneys or other property
payable or deliverable on any such claims and to distribute the same, and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or similar
official in any judicial proceeding is hereby authorized by each Holder to make
such payments to the Trustee and, in the event that the Trustee shall consent
to the making of such payments directly to the Holders, to pay the Trustee any
amount due it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 7.07.

 

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

 

6.10                           PRIORITIES.

 

If the Trustee collects any money pursuant to this Article VI,
it shall pay out the money in the following order:

 

First:                                              to
the Trustee for amounts due under Section 7.07;

 

Second:                              to
Securityholders for all amounts due and unpaid on the Securities, without
preference or priority of any kind, according to the amounts due and payable on
the Securities; and

 

Third:                                         to
the Company.

 

The Trustee, upon prior written notice to the Company, may fix a record
date and payment date for any payment by it to Securityholders pursuant to this
Section 6.10.

 

6.11                           UNDERTAKING FOR COSTS.

 

In any suit for the enforcement of any right or remedy under this
Indenture or in any suit against the Trustee for any action taken or omitted by
it as Trustee, a court of competent jurisdiction in its discretion may require
the filing by any party litigant in the suit other than the Trustee of an
undertaking to pay the costs of the suit, and the court in its discretion may
assess reasonable costs, including reasonable attorneys’ fees, against any
party litigant in the suit, having due regard to the merits and good faith of
the claims or defenses made by the party litigant.  This Section 6.11
does not apply to a suit by the Trustee, a suit by a Holder pursuant to

 

42

 

Section 6.07 or
a suit by Holders of more than ten percent (10%) in aggregate principal amount
of the outstanding Securities.

 

VII.                             TRUSTEE

 

7.01                           DUTIES OF TRUSTEE.

 

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

 

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

 

(i)                           the Trustee
need perform only those duties that are specifically set forth in this
Indenture and no implied covenants or obligations shall be read into this
Indenture against the Trustee; and

 

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

 

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

 

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

 

(ii)                        the Trustee
shall not be liable with respect to any action it takes or omits to take in
good faith in accordance with a direction received by it pursuant to Section 6.05.

 

(D)                               Every
provision of this Indenture that in any way relates to the Trustee is subject
to the provisions of this Section 7.01.

 

(E)                                 The
Trustee shall not be liable for interest on any money received by it except as
the Trustee may agree in writing with the Company.  Money held in trust by the Trustee need not
be segregated from other funds except to the extent required by law.

 

43

 

7.02                           RIGHTS OF TRUSTEE.

 

(A)                              Subject
to Section 7.01, the Trustee may
conclusively rely on any document believed by it to be genuine and to have been
signed or presented by the proper person. 
The Trustee need not investigate any fact or matter stated in the
document; if, however, the Trustee shall determine to make such further inquiry
or investigation, it shall be entitled during normal business hours to examine
the relevant books, records and premises of the Company, personally or by agent
or attorney upon reasonable prior notice.

 

(B)                                Before
the Trustee acts or refrains from acting, it may require an Officers’ Certificate
and/or an Opinion of Counsel.  The
Trustee shall not be liable for any action it takes or omits to take in good
faith in reliance on such Officers’ Certificate or Opinion of Counsel.

 

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

 

(D)                               The
Trustee may consult with counsel (such counsel to be reasonably acceptable to
the Company), and the advice of such counsel or any Opinion of Counsel shall be
full and complete authorization and protection in respect of any action taken,
suffered or omitted by it hereunder in good faith and in reliance thereon.

 

(E)                                 The
Trustee may act through agents or attorneys and shall not be responsible for
the misconduct or negligence of any agent or attorney appointed with due care.

 

(F)                                 The
Trustee shall not be liable for any action it takes or omits to take in good
faith which it believes to be authorized or within its discretion, rights or
powers conferred upon it by this Indenture.

 

(G)                               Except with respect to Section 6.01, the Trustee shall have no duty to inquire
as to the performance of the Company with respect to the covenants contained in
Article IV.  In addition, the Trustee shall not be deemed
to have knowledge of an Event of Default except (i) any Default or Event of
Default occurring pursuant to Sections  6.01(i) or (ii) or (ii)
any Default or Event of Default of which a Responsible Officer of the Trustee
shall have received written notification or obtained actual knowledge.  Delivery of reports, information and
documents to the Trustee under Article IV
(other than Sections  4.04
and 4.07) is for informational purposes
only, and the Trustee’s receipt of the foregoing 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 on
Officers’ Certificates).

 

(H)                              The Trustee shall be
under no obligation to exercise any of the rights or powers vested by this
Indenture at the request or direction of any of the Holders pursuant to this
Indenture unless such Holders shall have offered to the Trustee security or
indemnity reasonably satisfactory to the Trustee against the costs, expenses
and liabilities which might be incurred by it in compliance with such request
or direction.

 

44

 

(I)                                   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.

 

(J)                                  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.

 

7.03                           INDIVIDUAL
RIGHTS OF TRUSTEE.

 

The Trustee in its individual or any other capacity may become the
owner or pledgee of Securities and may otherwise deal with the Company or any
of its Affiliates with the same rights the Trustee would have if it were not
Trustee.  Any Security Agent may do the
same with like rights.  The Trustee, however,
must comply with Sections  7.10 and 7.11.

 

7.04                           TRUSTEE’S
DISCLAIMER.

 

The Trustee makes no representation as to the validity or adequacy of
this Indenture or the Securities; it shall not be accountable for the Company’s
use of the proceeds from the Securities; and it shall not be responsible for
any statement in the Securities other than its certificate of authentication.

 

7.05                           NOTICE OF DEFAULTS.

 

If a Default or Event of Default occurs and is continuing as to which
the Trustee has received notice pursuant to the provisions of this Indenture,
or as to which a Responsible Officer of the Trustee shall have actual
knowledge, then the Trustee shall mail to each Holder a notice of the Default
or Event of Default within thirty (30) days after it occurs unless such Default
or Event of Default has been cured or waived; provided,
however, that, except in the case of a
Default or Event of Default in payment of any amounts due with respect to any
Security, the Trustee may withhold such notice if, and so long as it in good
faith determines that, withholding such notice is in the best interests of
Holders.

 

7.06                           REPORTS
BY TRUSTEE TO HOLDERS.

 

Within sixty (60) days after each May 15, beginning with May 15, 2005,
the Trustee shall mail to each Securityholder if required by TIA § 313(a)
a brief report dated as of such May 15 that complies with TIA § 313(c).  In such event, the Trustee also shall comply
with TIA § 313(b).

 

A copy of each report at the time of its mailing to Securityholders
shall be mailed by first class mail to the Company and filed by the Trustee
with the SEC and each stock exchange, if any, on which the Securities are
listed.  The Company shall promptly
notify the Trustee when the Securities are listed on any stock exchange.

 

45

 

7.07                           COMPENSATION AND INDEMNITY.

 

The Company shall pay to the Trustee from time to time such
compensation for its services as shall be agreed upon in writing.  The Trustee’s compensation shall not be
limited by any law on compensation of a trustee of an express trust.  The Company shall reimburse the Trustee upon
request for all reasonable out-of-pocket expenses incurred by it.  Such expenses shall include the reasonable
compensation and out-of-pocket expenses of the Trustee’s agents and counsel.

 

The Company shall indemnify the Trustee against any and all loss,
liability, damage, claim or expense (including the reasonable fees and expenses
of counsel and taxes other than those based upon the income of the Trustee)
incurred by it in connection with the acceptance or administration of this
trust and the performance of its duties hereunder, including the reasonable
costs and expenses of defending itself against any claim (whether asserted by
the Company, any Holder or any other Person) or liability in connection with
the exercise or performance of any of its powers and duties hereunder.  The Company need not pay for any settlement
made without its consent.  The Trustee
shall notify the Company promptly of any claim for which it may seek
indemnification.  The Company need not
reimburse any expense or indemnify against any loss or liability incurred by
the Trustee through the Trustee’s negligence, bad faith or willful misconduct.

 

To secure the Company’s payment obligations in this Section 7.07, the Trustee shall have a lien prior to
the Securities on all money or property held or collected by the Trustee,
except that held in trust to pay amounts due on particular Securities.

 

The indemnity obligations of the Company with respect to the Trustee
provided for in this Section 7.07 shall
survive any resignation or removal of the Trustee.

 

When the Trustee incurs expenses or renders services after an Event of
Default specified in Section 6.01(viii) or (ix) occurs, the expenses and the compensation for the
services are intended to constitute expenses of administration under any
Bankruptcy Law.

 

7.08                           REPLACEMENT OF TRUSTEE.

 

A resignation or removal of the Trustee and appointment of a successor
Trustee shall become effective only upon the successor Trustee’s acceptance of
appointment as provided in this Section 7.08.

 

The Trustee may resign by so notifying the Company in writing thirty
(30) Business Days prior to such resignation. 
The Holders of a majority in aggregate principal amount of the Securities
then outstanding may remove the Trustee by so notifying the Trustee and the
Company in writing and may appoint a successor Trustee with the Company’s
consent.  The Company may remove the
Trustee if:

 

(i)                           the Trustee
fails to comply with Section 7.10;

 

(ii)                        the Trustee is
adjudged a bankrupt or an insolvent;

 

46

 

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

 

(iv)                    the
Trustee becomes incapable of acting.

 

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

 

If a successor Trustee does not take office
within thirty (30) days after the retiring Trustee resigns or is removed, the
retiring Trustee (at the Company’s expense), the Company or the Holders of at
least ten percent (10%) in aggregate principal amount of the outstanding
Securities may petition any court of competent jurisdiction for the appointment
of a successor Trustee.

 

If the Trustee fails to comply with Section 7.10, the Company or any Holder may petition
any court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor Trustee.

 

A successor Trustee shall deliver a written
acceptance of its appointment to the retiring Trustee and to the Company.  Thereupon the resignation or removal of the
retiring Trustee shall become effective, and the successor Trustee shall have
all the rights, powers and duties of the Trustee under this Indenture.  The successor Trustee shall mail a notice of
its succession to Securityholders.  The
retiring Trustee shall promptly transfer all property held by it as Trustee to
the successor Trustee, subject to the lien provided for in Section 7.07.

 

7.09                           SUCCESSOR TRUSTEE BY MERGER, ETC.

 

If the Trustee consolidates with, merges or
converts into, or transfers all or substantially all of its corporate trust
business to, another corporation, the successor corporation without any further
act shall be the successor Trustee, if such successor corporation is otherwise
eligible hereunder.

 

7.10                           ELIGIBILITY; DISQUALIFICATION.

 

There shall at all times be a Trustee hereunder that is a corporation
organized and doing business under the laws of the United States of America or
of any state thereof, which Trustee (A) is authorized under such laws to
exercise corporate trustee power, (B) is subject to supervision or examination
by federal or state authorities and (C) has a combined capital and surplus of
at least $100 million as set forth in its most recent published annual report
of condition.  The Trustee shall comply
with TIA § 310(b).  Nothing in this
Indenture shall prevent the Trustee from filing with the SEC the application
referred to in the penultimate paragraph of TIA § 310(b).

 

7.11                           PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY.

 

The Trustee shall comply with TIA § 311(a),
excluding any creditor relationship listed in TIA § 311(b).  A Trustee who has resigned or been removed
shall be subject to TIA § 311(a) to the extent indicated.

 

47

 

VIII.                         DISCHARGE OF INDENTURE

 

8.01                           TERMINATION OF THE OBLIGATIONS OF THE COMPANY.

 

This Indenture shall cease to be of further
effect if (a) either (i) all outstanding Securities (other than Securities
replaced pursuant to Section 2.07
hereof) have been delivered to the Trustee for cancellation or (ii) all
outstanding Securities have become due and payable at their scheduled maturity
or upon Purchase at Holder’s Option, Redemption or Repurchase Upon Fundamental
Change, and in either case the Company irrevocably deposits, prior to the
applicable due date, with the Trustee or the Paying Agent (if the Paying Agent
is not the Company or any of its Affiliates) cash, and, if applicable as herein
provided and in accordance herewith, such other consideration, sufficient to
pay all amounts due and owing on all outstanding Securities (other than
Securities replaced pursuant to Section 2.07
hereof) on the Maturity Date or an Option Purchase Date, Redemption Date or
Fundamental Change Repurchase Date, as the case may be; (b) the Company pays to
the Trustee all other sums payable hereunder by the Company; (c) no Default or
Event of Default with respect to the Securities shall exist on the date of such
deposit; (d) such deposit will not result in a breach or violation of, or
constitute a Default or Event of Default under, this Indenture or any other
agreement or instrument to which the Company is a party or by which it is
bound; and (e) the Company has delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that all conditions
precedent provided for herein relating to the satisfaction and discharge of
this Indenture have been complied with; provided, however, that Sections 2.02, 2.03, 2.04, 2.05, 2.06, 2.07, 2.08, 2.15, 2.16, 2.17, 3.05, 3.08, 3.09, 4.01, 4.02, 4.05, 7.07 and 7.08 and Articles  VIII and X shall survive
any discharge of this Indenture until such time as the Securities have been
paid in full and there are no Securities outstanding.

 

8.02                           APPLICATION OF TRUST MONEY.

 

The Trustee shall hold in trust all money and
other consideration deposited with it pursuant to Section 8.01
and shall apply such deposited money and other consideration through the Paying
Agent and in accordance with this Indenture to the payment of to the payment of
amounts due on the Securities.

 

8.03                           REPAYMENT TO COMPANY.

 

The Trustee and the Paying Agent shall
promptly notify the Company of, and pay to the Company upon the request of the
Company, any excess money held by them at any time.  The Trustee and the Paying Agent shall pay to
the Company upon the written request of the Company any money held by them for
the payment of the principal of, premium, if any, or any accrued and unpaid
interest or additional interest on, the notes that remains unclaimed for two
(2) years; provided, however,
that the Trustee or such Paying Agent, before being required to make any such
repayment, may, at the expense of the Company, cause to be published once in a
newspaper of general circulation in the City of New York or cause to be mailed
to each Holder, notice stating that such money remains unclaimed and that,
after a date specified therein, which shall not be less than thirty (30) days
from the date of such publication or mailing, any unclaimed balance of such
money then remaining will be repaid to the Company.  After payment to the Company, Securityholders
entitled to the money must look to the Company for payment as

 

48

 

general creditors, subject to applicable law,
and all liability of the Trustee and the Paying Agent with respect to such
money and payment shall, subject to applicable law, cease.

 

8.04                           REINSTATEMENT.

 

If the Trustee or Paying Agent is unable to
apply any money or other consideration in accordance with Sections
8.01 and 8.02
by reason of any legal proceeding or by reason of any order or judgment of any
court or governmental authority enjoining, restraining or otherwise prohibiting
such application, the obligations of the Company under this Indenture and the
Securities shall be revived and reinstated as though no deposit had occurred
pursuant to Sections  8.01
and 8.02 until such time as the Trustee or
Paying Agent is permitted to apply all such money or other consideration in
accordance with Sections  8.01 and
8.02; provided,
however, that if the Company has made
any payment of amounts due with respect to any Securities because of the
reinstatement of its obligations, then the Company shall be subrogated to the
rights of the Holders of such Securities to receive such payment from the money
held by the Trustee or Paying Agent.

 

IX.                                AMENDMENTS

 

9.01                           WITHOUT
CONSENT OF HOLDERS.

 

The Company, with the consent of the Trustee,
may amend or supplement this Indenture or the Securities without notice to or
the consent of any Securityholder:

 

(i)                           to
comply with Sections  5.01 and
10.11;

 

(ii)                        to
make any changes or modifications to this Indenture necessary in connection
with the registration of the public offer and sale of the Securities under the
Securities Act pursuant to the Registration Rights Agreement or the
qualification of this Indenture under the TIA;

 

(iii)                     to secure the obligations of the
Company in respect of the Securities;

 

(iv)                    to
add to the covenants of the Company described in this Indenture for the benefit
of Securityholders or to surrender any right or power conferred upon the
Company; and

 

(v)                       to
make provisions with respect to adjustments to the Conversion Rate as required
by this Indenture or to increase the Conversion Rate in accordance with this
Indenture.

 

In addition, the Company and the Trustee may
enter into a supplemental indenture without the consent of Holders of the
Securities to cure any ambiguity, defect, omission or inconsistency in this
Indenture in a manner that does not adversely affect the rights of any Holder.

 

49

 

9.02                           WITH CONSENT OF
HOLDERS.

 

The Company, with the consent of the Trustee,
may amend or supplement this Indenture or the Securities without notice to any
Securityholder but with the written consent of the Holders of at least a
majority in aggregate principal amount of the outstanding Securities.  Subject to Sections
6.04 and 6.07, the Holders of a
majority in aggregate principal amount of the outstanding Securities may, by
notice to the Trustee, waive compliance by the Company with any provision of
this Indenture or the Securities without notice to any other
Securityholder.  Notwithstanding anything
herein to the contrary, without the consent of each Holder of each outstanding
Security affected, an amendment, supplement or waiver, including a waiver
pursuant to Section 6.04, may not:

 

(a)                                  change
the stated maturity of the principal of, or the payment date of any installment
of interest or any premium on, any Security;

 

(b)                                 reduce
the principal amount of, or any premium, interest or additional interest on,
any Security;

 

(c)                                  change
the place or currency of payment of principal of, or any premium, interest or additional
interest on, any Security;

 

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

 

(e)                                  modify,
in a manner adverse to Holders, the provisions with respect to the right of
Holders pursuant to Article III
to require the Company to purchase Securities on an Option Purchase Date or to
repurchase Securities upon the occurrence of a Fundamental Change;

 

(f)                                    modify
the provisions of Section 2.18
in a manner adverse to Holders;

 

(g)                                 adversely
affect the right of Holders to convert Securities in accordance with Article X;

 

(h)                                 reduce
the percentage of the aggregate principal amount of the outstanding Securities
whose Holders must consent to a modification to or amendment of any provision
of this Indenture or the Securities;

 

(i)                                     reduce
the percentage of the aggregate principal amount of the outstanding Securities
whose Holders must consent to a waiver of compliance with any provision of this
Indenture or the Securities or a waiver of any Default or Event of Default; or

 

(j)                                     modify
the provisions of this Indenture with respect to modification and waiver (including
waiver of a Default or an Event of Default), except to increase the percentage
required for modification or waiver or to provide for consent of each affected
Holder.

 

50

 

Promptly after an amendment, supplement or
waiver under Section 9.01 or this Section 9.02 becomes effective, the Company shall mail,
or cause to be mailed, to Securityholders a notice briefly describing such
amendment, supplement or waiver.  Any
failure of the Company to mail such notice shall not in any way impair or
affect the validity of such amendment, supplement or waiver.

 

It shall not be necessary for the consent of
the Holders under this Section 9.02
to approve the particular form of any proposed amendment, supplement or waiver,
but it shall be sufficient if such consent approves the substance thereof.

 

9.03                           COMPLIANCE
WITH TRUST INDENTURE
ACT.

 

Every amendment, waiver or supplement to this
Indenture or the Securities shall comply with the TIA as then in effect.

 

9.04                           REVOCATION
AND EFFECT OF CONSENTS.

 

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

 

After an amendment, supplement or waiver
becomes effective with respect to the Securities, it shall bind every Holder unless
such amendment, supplement or waiver  makes a change that requires, pursuant to Section 9.02, the consent of each Holder affected.  In that case, the amendment, supplement or
waiver shall bind each Holder of a Security who has consented to it and,
provided that notice of such amendment, supplement or waiver is reflected on a
Security that evidences the same debt as the consenting Holder’s Security,
every subsequent Holder of a Security or portion of a Security that evidences
the same debt as the consenting Holder’s Security.

 

9.05                           NOTATION
ON OR EXCHANGE OF SECURITIES.

 

If an amendment, supplement or waiver changes
the terms of a Security, the Trustee may require the Holder of the Security to
deliver it to the Trustee.  The Trustee
may place an appropriate notation on the Security as directed and prepared by
the Company about the changed terms and return it to the Holder.  Alternatively, if the Company so determines,
the Company in exchange for the Security shall issue and the Trustee shall
authenticate a new Security that reflects the changed terms.

 

9.06                           TRUSTEE PROTECTED.

 

The Trustee shall sign any amendment,
supplemental indenture or waiver authorized pursuant to this Article IX; provided, however, that the Trustee need not sign any amendment,

 

51

 

supplement or waiver authorized pursuant to
this Article IX that adversely affects
the Trustee’s rights, duties, liabilities or immunities.  The Trustee shall be entitled to receive and
conclusively rely upon an Opinion of Counsel and an Officers’ Certificate that
any supplemental indenture, amendment or waiver is permitted or authorized
pursuant to this Indenture.

 

X.                                    CONVERSION

 

10.01                     CONVERSION
PRIVILEGE; RESTRICTIVE
LEGENDS.

 

(A)                              Subject
to the provisions of Sections 3.04, 3.07, 3.08
and 3.09, the Securities shall be convertible into cash and, if
applicable, shares of Common Stock in accordance with this Article X
and as set forth below if any of the following conditions are satisfied:

 

(i)                       Conversion Based on
Closing Sale Price of Common Stock. 
The Securities may be surrendered for conversion into cash and, if
applicable, shares of Common Stock on any Business Day of a calendar quarter
after the calendar quarter ending December 31, 2004, if the Closing Sale
Price for each of twenty (20) or more consecutive Trading Days in a period of
thirty (30) consecutive Trading Days ending on the last Trading Day of the
immediately preceding calendar quarter exceeds one hundred and twenty percent
(120%) of the Conversion Price in effect on the last Trading Day of the
immediately preceding calendar quarter.  Solely
for purposes of determining whether the Securities shall have become
convertible pursuant to this Section 10.01(A)(i),
the Board of Directors shall, in its good faith determination, which shall be
described in a Board Resolution, make appropriate adjustments to the Closing
Sale Prices and/or such Conversion Price used to determine whether the
Securities shall have become convertible pursuant to this Section 10.01(A)(i)
to account for any adjustments to the Conversion Rate which shall have become
effective, or any event requiring an adjustment to the Conversion Rate where
the Ex Date of such event occurs, during the period of thirty (30) consecutive
Trading Days ending on the last Trading Day of the immediately preceding
calendar quarter.

 

(ii)                    Conversion Upon Satisfaction of Trading Price Condition.  The Securities may be surrendered for
conversion into cash and, if applicable, shares of Common Stock during the five
(5) Business Day period after any five (5) consecutive Trading Day period (the “Note Measurement Period”) in which the average Trading Price
per $1,000 principal amount of the Securities was equal to or less than ninety
seven percent (97%) of the average Conversion Value (as defined below) during
the Note Measurement Period (such condition, the “Trading
Price Condition”).  The Bid
Solicitation Agent shall not have any obligation to determine the Trading Price
unless the Company has requested such determination, and the Company shall have
no obligation to make such request unless a Holder provides the Company with
reasonable evidence that the Trading Price per $1,000 principal amount of the
Securities would be equal to or less than ninety seven percent (97%) of the
product of the Closing Sale Price and the Conversion Rate.  Upon receipt of such evidence, the Company
shall instruct the Bid Solicitation Agent to determine the Trading Price per
$1,000 principal amount of the Securities for each of the five (5) successive
Trading

 

52

 

Days immediately after the Company receives such
evidence and on each Trading Day thereafter until the first Trading Day on
which the Trading Price Condition is no longer satisfied.  For purposes of this paragraph, the “Conversion Value” per $1,000 principal amount of Securities,
on a given Trading Day, means the product of the Closing Sale Price on such
Trading Day and the Conversion Rate in effect on such Trading Day.

 

(iii)                 Conversion Based on Redemption.  A Security, or portion of a Security, which
has been called for Redemption pursuant to paragraph 6 of
the Securities may be surrendered for conversion into cash and, if applicable, shares
of Common Stock; provided, however,
that such Security or portion thereof may be surrendered for conversion
pursuant to this paragraph only until the close of business on the Business Day
immediately preceding the Redemption Date.

 

(iv)                Conversion Upon Certain Distributions.  If the Company takes any action, or becomes
aware of any event, that would require an adjustment to the Conversion Rate
pursuant to Sections 10.05(b), 10.05(c), 10.05(d), 10.05(e) or 10.05(f), the
Securities may be surrendered for conversion into cash and, if applicable, shares
of Common Stock beginning on the date the Company mails the notice to the
Holders as provided in Section 10.10
(or, if earlier, the date the Company is required to mail such notice) and at
any time thereafter until the close of business on the Business Day immediately
preceding the Ex Date (as defined in Section 10.05(h))
of the applicable transaction or until the Company announces that such
transaction will not take place.

 

(v)                   Conversion Upon Occurrence of Certain Corporate Transactions.  If either (i) the Company is a party to a
consolidation, merger or binding share exchange pursuant to which the Common
Stock would be converted into cash, securities or other property or (ii) a Fundamental
Change shall have occurred, then, in each case, the Securities may be
surrendered for conversion into cash and, if applicable, shares of Common Stock
at any time during the period that
begins on, and includes, the date that is fifteen (15) Business Days prior to
the date originally announced by the Company as the anticipated effective date
of such Fundamental Change, transaction or event (which anticipated
effective date the Company shall disclose, in good faith, in the written
notice, public announcement and publication referred to in Section 10.01(C))
and ends on, and includes, the
date that is fifteen (15) Business Days after the actual effective date of such
Fundamental Change, transaction or event.

 

(B)                                The
initial Conversion Rate shall be 55.5278 shares of Common Stock per $1,000
principal amount of Securities.  The
Conversion Rate shall be subject to adjustment in accordance with Section 10.02(C) and Sections 10.05
through 10.11.

 

(C)                                Whenever any event described in Section 10.01
shall occur which shall cause the Securities to become convertible as provided
in this Article X, the Company shall promptly
deliver, in accordance with Section 11.02,
written notice of the convertibility of the Securities to the Trustee and each Holder
and shall, as soon practicable, but in no event later than the open of business
on the first date the Securities shall become convertible as provided in this Article X as

 

53

 

a result of such event, publicly
announce, through a reputable national newswire service, and publish on the
Company’s website, that the Securities have become convertible.  Such written notice, public announcement and
publication shall include:

 

(i)                       a
description of such event;

 

(ii)                    a
description of the periods during which the Securities shall be convertible as
provided in this Article X as a result of such
event;

 

(iii)                 whether
a Make-Whole Premium shall be payable upon conversion of the Securities in
connection with such event and, if so, the form and amount of consideration in
which such Make-Whole Premium shall be paid; and

 

(iv)                the
procedures Holders must follow to convert their notes in accordance with this Article X, including the name and address of the
Conversion Agent.

 

(D)                               A
Holder may convert a portion of the principal amount of such Security if the
portion is $1,000 principal amount or an integral multiple of $1,000 principal
amount.  Provisions of this Indenture
that apply to conversion of all of a Security also apply to conversion of a
portion of it.

 

(E)                                 Any
shares of Common Stock that are issued upon conversion of a Security shall bear
the Private Placement Legend until after the second anniversary of the later of
the Issue Date and the last date on which the Company or any of its Affiliates
was the owner of such shares or the Security (or any predecessor security) from
which such shares were converted (or such shorter period of time as permitted
by Rule 144(k) under the Securities Act or any successor provision thereunder)
(or such longer period of time as may be required under the Securities Act or
applicable state securities laws, as set forth in an Opinion of Counsel, unless
otherwise agreed by the Company and the Holder thereof).

 

10.02                     CONVERSION
PROCEDURE AND PAYMENT
UPON CONVERSION.

 

(A)                              To convert a Security, a Holder must satisfy the
requirements of paragraph 10 of the Securities.  Upon conversion of a Holder’s Security,
the Company shall, subject to Section 10.02(C),
deliver, through the Conversion Agent, the following to such Holder:

 

(i)                       an amount (the
“Principal Return”) in cash equal
to the lesser of (1) the aggregate Net Share Settlement Conversion Value
of such Security and (2) the aggregate principal amount of such Security;

 

(ii)                    if the aggregate Net Share
Settlement Conversion Value of
such Security is greater than the Principal Return of such Security (the
excess, if any, of such Net Share Settlement Conversion Value over such
Principal Return being herein referred to as the “Net Share
Amount”), a certificate for a number of shares of Common Stock (the “Net Shares”) equal to a fraction whose numerator is the Net
Share Amount for such Security and whose denominator is Ten-Day Weighted
Average Price Per Share; provided, however, that the Company shall not issue

 

54

 

fractional shares of Common Stock and shall instead
deliver cash (in addition to any consideration otherwise payable upon such
conversion) in an amount equal to the value of such fraction computed on the
basis of such Ten-Day
Weighted Average Price Per Share; and

 

(iii)                 if a Make-Whole Fundamental Change occurs and such Security is
surrendered for conversion at any time during the period that begins on, and
includes, the date that is fifteen (15) Business Days prior to the date originally
announced by the Company as the anticipated effective date of such Make-Whole
Fundamental Change (which anticipated effective date the Company shall
disclose, in good faith, in the written notice, public announcement and
publication referred to in Section 10.01(C))
and ends on, and includes, the
date that is fifteen (15) Business Days after the actual effective date of such
Make-Whole Fundamental Change, a Make-Whole Premium, as determined in
accordance with, and in the manner and form as set forth in, Section 3.09(J).

 

The Company shall deliver such Principal
Return and, if applicable, such Net Shares as soon as practicable following the
date (the “Conversion Date”) on which such
Holder satisfies all the requirements for such conversion specified in paragraph 10 of the Securities, but in no event more than
three (3) Business Days after the applicable Conversion Value Determination
Date.  The Company shall deliver any such
Make-Whole Premium within the time period specified in Section 3.09(J)(v).

 

(B)                                The “Net Share
Settlement  Conversion Value”
per $1,000 aggregate principal amount of a Security to be converted pursuant to
this Article X, shall mean the product
of:

 

(i)                       the Conversion Rate in effect at the
time such Security is tendered for conversion; and

 

(ii)                    the average of the daily Volume-Weighted
Average Price (as defined below) per share of Common Stock for each of the ten
(10) consecutive Trading Days beginning on the second Trading Day immediately
following the day such Security is so tendered for conversion (the “Ten-Day Weighted Average Price Per Share,” and, the last Trading Day of such
ten (10) consecutive Trading Days, the “Conversion
Value Determination Date”);

 

provided, however, that
the Board of Directors shall, in
its good faith determination (which determination shall be described in
a Board Resolution), make appropriate
adjustments to the Net Share Settlement Conversion Value to account for any adjustment,
pursuant hereto, to the Conversion Rate that shall become effective, or any
event requiring, pursuant hereto, an adjustment to the Conversion Rate where
the Ex Date of such event occurs, at any time from, and including, the date
such Security is so tendered for conversion to, and including, the date that the consideration payable upon
conversion pursuant hereto is delivered in accordance herewith. The Company
shall, no later than the applicable Conversion Value Determination Date,
calculate the Net Share Settlement Conversion Value of a Security to be
converted.

 

55

 

The “Volume-Weighted Average Price” per share of
Common Stock on any Trading Day shall mean the volume-weighted average price
per share of Common Stock on The Nasdaq National Market or, if the Common Stock shall not be listed on The Nasdaq National Market, on the principal exchange or
over-the-counter market on which the Common Stock shall then be listed or
traded, from 9:30 a.m. to 4:30 p.m. (New York City time) on such Trading Day as
displayed by Bloomberg; provided, however, that if such volume-weighted average price
shall not be available, then the Board of Directors shall in good faith
determine (which determination shall be described in a Board Resolution) the
amount to be used as the Volume-Weighted Average Price for purposes hereof.

 

(C)                                Notwithstanding anything herein to the contrary, in
no event shall the Company be required to issue more than an aggregate of four
million two hundred eighty thousand three hundred ninety six (4,280,396) shares
of Common Stock (appropriately adjusted in the good faith determination
of the Board of Directors (whose determination shall be described in a Board
Resolution) to account for the occurrence of any events which would require an
adjustment to the Conversion Rate pursuant to Section 10.05(a)
or similar events or circumstances) as payment for the
Net Share Amount in respect of all Securities issued under this
Indenture.  The shares
of Common Stock available, in accordance with the immediately preceding
sentence, for issuance as payment for the Net Share Amount
in accordance herewith at a given point in time are herein referred to as the “Available Shares.” The total number of Available Shares
available for issuance shall from time to time be reduced as shares of Common
Stock are issued in accordance herewith as payment upon conversion of the
Securities and shall be appropriately adjusted in the good faith
determination of the Board of Directors (whose determination shall be described
in a Board Resolution) to account for the occurrence of any events which would
require an adjustment to the Conversion Rate pursuant to Section 10.05(a)
or similar events or circumstances.

 

If:

 

(i)                       a Security (the “Triggering
Security”) is surrendered for conversion in accordance herewith;

 

(ii)                    one thousand dollars ($1,000) is less
than product of (1) the Conversion Rate in effect at the time the Triggering
Security was surrendered for such conversion (the “Reference
Conversion Rate”) and (2) the Ten-Day Weighted Average Price Per Share applicable to such conversion;
and

 

(iii)                 the number of Available Shares available
for issuance at the time such Ten-Day Weighted Average Price Per Share is
calculated on the applicable Conversion Value Determination Date in accordance herewith is less than a
fraction (1) whose numerator is an amount equal to (I) the product of (x) the
Reference Conversion Rate and (y) such Ten-Day Weighted Average Price Per Share
and (z) a fraction whose numerator is the aggregate principal amount of all
Securities (including the Triggering Security) outstanding as of the time such
Ten-Day Weighted Average Price Per Share is calculated on the applicable Conversion
Value Determination Date in
accordance herewith and whose denominator is one thousand dollars ($1,000) less
(II) the aggregate principal amount of all Securities (including the Triggering
Security) outstanding as of the time such Ten-Day Weighted Average Price Per
Share is

 

56

 

calculated on the
applicable Conversion Value Determination Date in accordance herewith; and (2) whose
denominator is such Ten-Day Weighted Average Price Per Share,

 

then, at the time such Ten-Day
Weighted Average Price Per Share is calculated on the applicable Conversion
Value Determination Date in
accordance herewith, and also for purposes of determining the number of Net
Shares issuable in respect of such conversion of the Triggering Security, the
Conversion Rate shall be adjusted (any such adjustment, an “Equitable Adjustment”) so that it equals a fraction (1)
whose numerator is equal to the product of (i) one thousand dollars ($1,000)
and (ii) the sum of (I) the product of such number of Available Shares and such
Ten-Day Weighted Average Price Per Share and (II) the aggregate principal
amount of all Securities (including the Triggering Security) outstanding as of
the time such Ten-Day Weighted Average Price Per Share is calculated on the
applicable Conversion Value Determination Date in accordance herewith and (2) whose denominator is the product of (i)
the aggregate principal amount of all Securities (including the Triggering
Security) outstanding as of the time such Ten-Day Weighted Average Price Per
Share is calculated on the applicable Conversion Value Determination
Date in accordance herewith and
(ii) such Ten-Day Weighted Average Price Per Share.

 

Each time the Ten-Day Weighted Average Price
Per Share shall be measured as provided herein in connection with the
conversion of any Security or portion thereof, the Company shall, in good
faith, eliminate any prior Equitable Adjustments to the extent such Equitable
Adjustments are no longer necessary to ensure that there are sufficient Available Shares remaining to
issue the Net Shares that would be issuable, at the Conversion Rate applicable
to such Security or portion thereof and at such Ten-Day Weighted Average Price
Per Share, if all Securities (including
such Security or portion thereof) outstanding as of the time such Ten-Day
Weighted Average Price Per Share is calculated in accordance herewith were
converted, and such Security shall be converted on the basis of the Conversion
Rate in effect immediately after any such elimination.

 

Each time a Security or portion thereof is
converted in accordance herewith, the Company shall pay to the Holder
converting such Security or portion thereof, in addition to any other
consideration that is otherwise payable as herein provided in respect of such
conversion, an amount in cash that is equal to the excess, if any, of (I) the
Conversion Value of such Security or portion thereof that would have been in
effect with respect to such conversion if no Equitable Adjustments were ever
made over (II) the Conversion Value of such Security or portion thereof based
on the Conversion Rate in effect after all applicable Equitable Adjustments, it
being understood that the Conversion Rate to be used to calculate the
Conversion Value referred to in the immediately preceding clause (I) shall
include, without limitation, all adjustments to the Conversion Rate that would
have been made pursuant to Section 10.05
if no Equitable Adjustments were ever
made.

 

Notwithstanding anything to the contrary in this Section 10.02(C),
the Company may, in its good faith judgment, make such changes to any such
Equitable Adjustments (including, without limitation, changes to the amount
and/or timing of any such Equitable Adjustments), in order to effect the
purposes and intents of this Section 10.02(C)
and of this Indenture, including, to effect compliance with Rule 4350(i) of The
Nasdaq National Market (or

 

57

 

any applicable successor
provision thereto) by preventing the potential issuance of more than an
aggregate of four million two hundred eighty thousand three hundred ninety six
(4,280,396) shares of Common Stock (subject to the adjustments
set forth above) as payment for the Net Share Amount in respect of all Securities issued under this
Indenture, to treat all Holders in an equitable manner with respect to their
conversion rights hereunder and to enable Holders to benefit from adjustments
to the Conversion Rate that would have been made pursuant to Section 10.05.

 

(D)                               On and after the Conversion Date of a Security, the person
in whose name any certificate representing Net Shares, if any, is to be
registered shall be treated as a stockholder of record of the Company, and all
rights of the Holder of such Security shall terminate, other than the right to
receive the consideration deliverable upon conversion of such Security as
provided herein.  A Holder of Securities
is not entitled, as such, to any rights of a holder of Common Stock until such
Holder has converted its Securities into shares of Common Stock (to the extent
such Securities are convertible into Shares of Common Stock) or is deemed to be
a stockholder of record of the Company, as provided in this Section 10.02(D).

 

(E)                                 Except as provided in the Securities or in this Article X, no payment or adjustment will be made for
accrued interest on, or additional interest with respect to, a converted
Security or for dividends on any Common Stock issued on or prior to
conversion.  If any Holder surrenders a
Security for conversion after the close of business on the record date for the
payment of an installment of interest and prior to the related interest payment
date, then, notwithstanding such conversion, the interest payable with respect
to such Security on such interest payment date shall be paid on such interest
payment date to the Holder of record of such Security at the close of business
on such record date; provided, however,
that such Security, when surrendered for conversion, must be accompanied by
payment to the Conversion Agent on behalf of the Company of an amount equal to
the interest payable on such interest payment date on the portion so converted;
provided further, however, that such
payment to the Conversion Agent described in the immediately preceding proviso
in respect of a Security surrendered for conversion shall not be required if
such Security is called for Redemption pursuant to Section 3.04
and paragraphs 6  and 7
of the Securities; provided further,
that, if the Company shall have, prior to the Conversion Date with respect to a
Security, defaulted in a payment of interest on such Security, then in no event
shall the Holder of such Security who surrenders such Security for conversion
be required to pay such defaulted interest or the interest that shall have
accrued on such defaulted interest pursuant to Section 2.12
(it being understood that nothing in this Section 10.02(E)
shall affect the Company’s obligations under Section 2.12).

 

(F)                                 If
a Holder converts more than one Security at the same time, the number of full
shares of Common Stock issuable upon such conversion, if any, shall be based on
the total principal amount of all Securities converted.

 

(G)                                Upon
surrender of a Security that is converted in part, the Trustee shall
authenticate for the Holder a new Security equal in principal amount to the
unconverted portion of the Security surrendered.

 

58

 

(H)                               If
the last day on which a Security may be converted is a Legal Holiday in a place
where a Conversion Agent is located, the Security may be surrendered to that
Conversion Agent on the next succeeding day that is not a Legal Holiday.

 

10.03                     TAXES ON
CONVERSION.

 

If a Holder converts its Security, the
Company shall pay any documentary, stamp or similar issue or transfer tax or
duty due on the issue, if any, of shares of Common Stock upon the
conversion.  However, such Holder shall
pay any such tax or duty which is due because such shares are issued in a name
other than such Holder’s name.  The
Conversion Agent may refuse to deliver a certificate representing the shares of
Common Stock to be issued in a name other than such Holder’s name until the
Conversion Agent receives a sum sufficient to pay any tax or duty which will be
due because such shares are to be issued in a name other than such Holder’s
name.  Nothing herein shall preclude any
tax withholding required by law or regulation.

 

10.04                     COMPANY TO
PROVIDE STOCK.

 

The Company shall at all times reserve out of
its authorized but unissued Common Stock or Common Stock held in its treasury
enough shares of Common Stock to permit the conversion, in accordance herewith,
of all of the Securities then outstanding.

 

All shares of Common Stock which may be
issued upon conversion of the Securities shall be validly issued, fully paid
and non-assessable and shall be free of preemptive or similar rights and free
of any lien or adverse claim.

 

The Company shall comply with all securities
laws regulating the offer and delivery of shares of Common Stock upon
conversion of Securities and shall list such shares on each national securities
exchange or automated quotation system on which the Common Stock is listed.

 

10.05                     ADJUSTMENT
OF CONVERSION RATE.

 

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

 

(a)                                  In case the Company shall (1) pay a dividend in shares of
Common Stock to all holders of Common Stock, (2) make a distribution in shares
of Common Stock to all holders of Common Stock, (3) subdivide the outstanding
shares of Common Stock into a greater number of shares of Common Stock or (4)
combine the outstanding shares of Common Stock into a smaller number of shares
of Common Stock, the Conversion Rate shall be adjusted by multiplying the
Conversion Rate in effect immediately prior to the close of business on the record
date or effective date, as applicable, of such dividend, distribution,
subdivision or combination by the number of shares of Common Stock which a
person who owns only one share of Common Stock immediately before the record
date or effective date, as applicable, of such dividend, distribution,
subdivision or combination and who is entitled to participate in such dividend,
distribution, subdivision or combination would own immediately after giving
effect to such dividend, distribution, subdivision or combination (without
giving effect to any

 

59

 

arrangement pursuant to
such dividend, distribution, subdivision or combination not to issue fractional
shares of Common Stock).  Any adjustment
made pursuant to this Section 10.05(a)
shall become effective immediately after the record date in the case of a
dividend or distribution and shall become effective immediately after the
effective date in the case of a subdivision or combination.

 

(b)                                 In
case the Company shall issue rights or warrants to all or substantially all
holders of Common Stock, entitling them, for a period expiring not more than
sixty (60) days immediately following the record date for the determination of
holders of Common Stock entitled to receive such rights or warrants, to
subscribe for or purchase shares of Common Stock (or securities convertible
into or exchangeable or exercisable for Common Stock), at a price per share (or
having a conversion, exchange or exercise price per share) that is less than
the current market price (as determined pursuant to Section 10.05(h))
of Common Stock on the record date for the determination of holders of Common
Stock entitled to receive such rights or warrants, the Conversion Rate shall be
increased by multiplying the Conversion Rate in effect immediately prior to
such record date by a fraction of which (A) the numerator shall be the sum of
(I) the number of shares of Common Stock outstanding at the close of business on
such record date and (II) the aggregate number of shares (the “Underlying Shares”) of Common Stock underlying all such
issued rights or warrants (whether by exercise, conversion, exchange or
otherwise), and (B) the denominator shall be the sum of (I) number of shares of
Common Stock outstanding at the close of business on such record date and (II)
the number of shares of Common Stock which the aggregate exercise, conversion,
exchange or other price at which the Underlying Shares may be subscribed for or
purchased pursuant to such rights or warrants would purchase at such current
market price.  Such increase shall become
effective immediately prior to the opening of business on the day following
such record date.  In no event shall the
Conversion Rate be decreased pursuant to this Section 10.05(b).

 

(c)                                  In case the Company shall dividend or distribute to all or
substantially all holders of Common Stock shares of Capital Stock of the Company
(other than Common Stock), evidences of Indebtedness or other assets (other
than dividends or distributions requiring an adjustment to the Conversion Rate
in accordance with Sections 10.05(d), 10.05(e)
or 10.05(f)), or shall dividend or distribute to all or
substantially all holders of Common Stock rights or warrants to subscribe for or
purchase securities (other than dividends or distributions of rights or
warrants requiring an adjustment to the Conversion Rate in accordance with Section 10.05(b)), then in each such case the
Conversion Rate shall be increased by multiplying the Conversion Rate in effect
immediately prior to the close of business on the record date for the
determination of stockholders entitled to such dividend or distribution by a
fraction of which (A) the numerator shall be the current market price of Common
Stock (as determined pursuant to Section 10.05(h))
on such record date and (B) the denominator shall be an amount equal to (I) such
current market price less (II) the fair market value (as determined in good
faith by the Board of Directors, whose determination shall be conclusive and
described in a Board Resolution), on such record date, of the portion of the
shares of

 

60

 

Capital Stock, evidences
of Indebtedness, assets, rights and warrants to be dividended or distributed applicable
to one share of Common Stock, such increase to become effective immediately
prior to the opening of business on the day following such record date; provided, however, that
if such denominator is equal to or less than zero, then, in lieu of the
foregoing adjustment to the Conversion Rate, adequate provision shall be made
so that each Holder shall have the right to receive upon conversion of its
Securities, in addition to any consideration otherwise payable as herein
provided upon such conversion, an amount, per $1,000 principal amount of such
Securities, of shares of Capital Stock, evidences of Indebtedness, assets,
rights and/or warrants that a person that owns, on such record date, a number
of shares of Common Stock equal to the Conversion Rate in effect at the close
of business on such record date would have received as a result of such
dividend or distribution. 
Notwithstanding the foregoing, in the event that the Company shall
distribute rights or warrants (other than distributions of rights or warrants
requiring an adjustment to the Conversion Rate in accordance with Section 10.05(b)) (collectively, “Rights”)
pro rata to holders of Common Stock, the
Company may, in lieu of making any adjustment pursuant to this Section 10.05(c), make proper provision so that each
Holder of a Security who converts such Security (or any portion thereof) on or after
the record date for such distribution and prior to the expiration or redemption
of the Rights shall be entitled to receive upon such conversion, in addition to
any consideration otherwise payable as herein provided upon such conversion, a
number of Rights, per $1,000 principal amount of such Security, to be determined
as follows: (i) if such conversion occurs on or prior to the date for the
distribution to the holders of Rights of separate certificates evidencing such
Rights (the “Distribution Date”), the same
number of Rights to which a holder of a number of shares of Common Stock equal
to the Conversion Rate in effect at the close of business on such record date (or,
in the event such distribution is pursuant to a stockholders’ rights plan,
equal to the number of Net Shares that would be issuable in accordance herewith
if such Security were surrendered for conversion immediately before the close
of business on such record date) would be entitled at the time of such
conversion in accordance with the terms and provisions of and applicable to the
Rights; and (ii) if such conversion occurs after the Distribution Date, the
same number of Rights to which a holder of a number of shares of Common Stock
equal to the Conversion Rate in effect immediately prior to the Distribution
Date (or, in the event such distribution is pursuant to a stockholders’ rights
plan, equal to the number of Net Shares that would be issuable in accordance
herewith if such Security were surrendered for conversion immediately before
the close of business on the Business Day immediately preceding the Distribution
Date) would have been entitled on the Distribution Date in accordance with the
terms and provisions of and applicable to the Rights.  Any distribution of rights or warrants
pursuant to a stockholders’ rights plan complying with the requirements set
forth in the preceding sentence of this paragraph and with Section 10.13
shall not constitute a distribution of rights or warrants pursuant to this Section 10.05(c). 
In no event shall the Conversion Rate be decreased pursuant to this Section 10.05(c).

 

61

 

(d)                                 In
case the Company shall, by dividend or otherwise, at any time make a
distribution of cash (excluding any cash that is distributed as part of a
distribution requiring a Conversion Rate adjustment pursuant to Section 10.05(e) or Section 10.05(f)
and excluding regular quarterly dividends, to the extent the aggregate amount
of such regular quarterly dividends in any quarterly period does not exceed two
cents ($0.02) per share of Common Stock (appropriately adjusted in the good
faith determination of the Board of Directors (whose determination shall be
described in a Board Resolution) to account for stock dividends on, or
subdivisions or combinations of, the Common Stock and similar events)) to all
or substantially all holders of Common Stock, the Conversion Rate shall be
increased by multiplying the Conversion Rate in effect immediately prior to the
close of business on the record date for the determination of holders of Common
Stock entitled to such distribution by a fraction (A) whose numerator shall be
the current market price per share of Common Stock (as determined pursuant to Section 10.05(h)) on such record date and (B) whose
denominator shall be an amount equal to (I) such current market price per share
of Common Stock less (II) the Excess Payment Per Share (as defined below); provided, however, that
the Conversion Rate shall not be adjusted pursuant to this Section 10.05(d)
to the extent, and only to the extent, such adjustment would cause the Conversion
Price to be less than one cent ($0.01); provided further
that, if the denominator of such fraction shall be equal to or less than zero,
the Conversion Rate shall be instead adjusted so that the Conversion Price is
equal to one cent ($0.01).  An adjustment
to the Conversion Rate pursuant to this Section 10.05(d)
shall become effective immediately prior to the opening of business on the day
immediately following such record date. 
In no event shall the Conversion Rate be decreased pursuant to this Section 10.05(d). For purposes of this Section 10.05(d), with respect to a distribution, “Excess Payment Per Share” shall mean, (x) in the event such
distribution is a regular quarterly dividend, the excess, if any, of the
aggregate amount of such distribution in the applicable quarterly period,
expressed as an amount per share of Common Stock, over two cents ($0.02)
(appropriately adjusted in the good faith determination of the Board of
Directors (whose determination shall be described in a Board Resolution) to
account for stock dividends on, or subdivisions or combinations of, the Common
Stock and similar events) and (y) in all other cases, the amount of the
distribution per share of Common Stock. 
For purposes of this Section 10.05(d),
“regular quarterly dividends” shall not include any dividends that are declared
or paid more frequently than once per calendar quarter.

 

(e)                                  In case the Company or any Subsidiary shall distribute cash
or other consideration in respect of a tender offer or exchange offer made by the
Company or any Subsidiary for all or any portion of the Common Stock where the
sum of the aggregate amount of such cash distributed and the aggregate fair
market value (as determined in good faith by the Board of Directors, whose
determination shall be conclusive and set forth in a Board Resolution), as of
the Expiration Date (as defined below), of such other consideration distributed
(such sum, the “Aggregate Amount”) expressed as an
amount per share of Common Stock validly tendered or exchanged, and not
withdrawn, pursuant to such tender

 

62

 

offer or exchange offer
as of the Expiration Time (as defined below) (such tendered or exchanged shares
of Common Stock, the “Purchased Shares”)
exceeds the current market price per share of Common Stock (as determined
pursuant to Section 10.05(h)) on the last
date (such last date, the “Expiration Date”)
on which tenders or exchanges could have been made pursuant to such tender
offer or exchange offer (as the same may be amended through the Expiration
Date), then the Conversion Rate shall be increased by multiplying the
Conversion Rate in effect immediately prior to the close of business on the
Expiration Date by a fraction (A) whose numerator is equal to the sum of (I)
the Aggregate Amount and (II) the product of (a) the current market price per
share of Common Stock (as determined pursuant to Section 10.05(h))
on the Expiration Date and (b) an amount equal to (i) the number of shares of
Common Stock outstanding as of the last time (the “Expiration
Time”) at which tenders or exchanges could have been made pursuant
to such tender offer or exchange offer (including all Purchased Shares) less
(ii) the Purchased Shares and (B) whose denominator is equal to the product of
(I) the number of shares of Common Stock outstanding as of the Expiration Time
(including all Purchased Shares) and (II) the current market price per share of
Common Stock on the Expiration Date.

 

An increase,
if any, to the Conversion Rate pursuant to this Section 10.05(e)
shall become effective immediately prior to the opening of business on the
Business Day following the Expiration Date. 
In the event that the Company or a Subsidiary is obligated to purchase
shares of Common Stock pursuant to any such tender offer or exchange offer, but
the Company or such Subsidiary is permanently prevented by applicable law from
effecting any such purchases, or all such purchases are rescinded, then the
Conversion Rate shall again be adjusted to be the Conversion Rate which would
then be in effect if such tender offer or exchange offer had not been
made.  If the application of this Section 10.05(e) to any tender offer or exchange offer
would result in a decrease in the Conversion Rate, no adjustment shall be made
for such tender offer or exchange offer under this Section 10.05(e).

 

(f)                                    If (i) a person other than the Company or any Subsidiary
shall distribute cash or other consideration in respect of a tender or exchange
offer made by such person for all or any portion of the Common Stock; (ii) as
of the last date (the “Third Party Expiration
Date”) on which tenders or exchanges could have been made pursuant
to such tender offer or exchange offer (as the same may be amended through such
date), the Board of Directors does not recommend rejection of such tender offer
or exchange offer; (iii) such person (including such person’s “affiliates,”
within the meaning of Rule 144(a)(1) under the Securities Act, and including
any “syndicate” or “group,” within the meaning of Section 13(d)(3) of the
Exchange Act, that includes such person) would, assuming that all shares sought
for tender or exchange pursuant to such tender or exchange offer are validly
tendered or exchanged pursuant to such tender or exchange offer, “beneficially
own” (within the meaning of Rule 13d-3 under the Exchange Act) at least ten
percent (10%) of the total shares of Common Stock outstanding immediately after
the Third Party Expiration Time (as defined

 

63

 

below); and (iv) the sum
of the aggregate amount of such cash and the fair market value (as determined
in good faith by the Board of Directors, whose determination shall be
conclusive and described in a Board Resolution), as of the Third Party
Expiration Date, of such other consideration (such sum, the “Third Party Aggregate Amount”), expressed as an amount per
share of Common Stock validly tendered or exchanged, and not withdrawn,
pursuant to such tender offer or exchange offer as of the last time (the “Third Party Expiration Time”) at which tenders or exchanges
could have been made pursuant to such tender offer or exchange offer (such
tendered or exchanged shares of Common Stock, the “Third Party
Purchased Shares”), exceeds the current market price per share of
Common Stock (as determined pursuant to Section 10.05(h))
on the Expiration Date, then the Conversion Rate shall be adjusted by
multiplying the Conversion Rate in effect immediately prior to the close of
business on the Third Party Expiration Date  by a fraction (A) whose numerator is equal to
the sum of (I) the Third Party Aggregate Amount and (II) the product of (a) the
current market price per share of Common Stock (as determined pursuant to Section 10.05(h)) on the Third Party Expiration Date
and (b) an amount equal to (i) the number of shares of Common Stock outstanding
as of the Third Party Expiration Time (including all Third Party Purchased
Shares) less (ii) the Third Party Purchased Shares and (B) whose denominator is
equal to the product of (I) the number of shares of Common Stock outstanding as
of the Third Party Expiration Time (including all Third Party Purchased Shares)
and (II) the current market price per share of Common Stock (as determined
pursuant to Section 10.05(h)) on the
Third Party Expiration Date.

 

An adjustment,
if any, to the Conversion Rate pursuant to this Section 10.05(f)
shall become effective immediately prior to the opening of business on the
Business Day following the Third Party Expiration Date.  In the event that such tender offer or
exchange offer is permanently prevented by applicable law from being effected,
or all purchases pursuant to such tender offer or exchange offer are rescinded,
then the Conversion Rate shall again be adjusted to be the Conversion Rate
which would then be in effect if such tender offer or exchange offer had not
been made.  If the application of this Section 10.05(f) to any tender offer or exchange offer
would result in a decrease in the Conversion Rate, no adjustment shall be made
for such tender offer or exchange offer under this Section 10.05(f).

 

(g)                                 In addition to the foregoing adjustments in subsections (a), (b), (c), (d), (e)  and  (f) above, the Company, from time to time and to the extent
permitted by law and by the rules of The Nasdaq National Market (or, if the
Common Stock is not then quoted on The Nasdaq National Market, the rules of any
national securities exchange or automated quotation system on which the Common
Stock is then listed or quoted), may increase the Conversion Rate by any amount
for a period of at least twenty (20) days or such longer period as may be
required by law, if the Board of Directors has made a determination, which
determination shall be conclusive, that such increase would be in the best
interests of the Company.  Such Conversion
Rate increase shall be irrevocable during such

 

64

 

period.  The Company shall give notice to the Trustee
and cause notice of such increase to be mailed to each Holder of Securities at
such Holder’s address as the same appears on the registry books of the
Registrar, at least fifteen (15) days prior to the date on which such increase
commences.

 

(h)                                 For
the purpose of any computation under subsections (a),
(b), (c)
or  (d) above of
this Section 10.05, the current market
price per share of Common Stock on the date fixed for determination of the stockholders
entitled to receive the issuance or distribution requiring such computation
(the “Determination Date”) shall be deemed to
be the average of the Closing Sale Prices for the ten (10) consecutive Trading
Days immediately preceding the Determination Date, and, for the purpose of any
computation under Sections 10.05(e)
or  10.05(f), the
current market price per share of Common Stock on the Expiration Date or Third
Party Expiration Date, as the case may be, for the tender offer or exchange
offer requiring such computation shall be deemed to be the average of the
Closing Sale Price for the ten (10) consecutive Trading Days immediately
preceding the Expiration Date or Third Party Expiration Date, as the case may
be; provided, however,
that (i) if the Ex Date for any event (other than the event requiring such
computation) that requires an adjustment to the Conversion Rate pursuant to subsection (a), (b), (c), (d), (e) or (f) above occurs on or after the tenth (10th)
Trading Day prior to the Determination Date, Expiration Date or Third Party
Expiration Date, whichever is applicable, and prior to the Ex Date for the
issuance or distribution requiring such computation, the Closing Sale Price for
each Trading Day prior to the Ex Date for such other event shall be adjusted by
multiplying such Closing Sale Price by the reciprocal of the fraction by which
the Conversion Rate is so required to be adjusted as a result of such other
event, (ii) if the Ex Date for any event (other than the event requiring such
computation) that requires an adjustment to the Conversion Rate pursuant to subsection (a), (b), (c), (d), (e) or (f) above occurs on or after the Ex Date for the
issuance or distribution requiring such computation and on or prior to the
Determination Date or the Expiration Date or Third Party Expiration Date,
whichever is applicable, the Closing Sale Price for each Trading Day on and
after the Ex Date for such other event shall be adjusted by multiplying such
Closing Sale Price by the same fraction by which the Conversion Rate is so
required to be adjusted as a result of such other event, and (iii) if the Ex
Date for the event requiring such computation is on or prior to the
Determination Date or Expiration Date or Third Party Expiration Date, whichever
is applicable, after taking into account any adjustment required pursuant to clause  (i) or (ii) of
this proviso, the Closing Sale Price for each Trading Day on and after such Ex
Date shall be adjusted by adding thereto the amount of any cash and the fair
market value (as determined in good faith by the Board of Directors in a manner
consistent with any determination of such value for the purposes of this Section 10.05, whose determination shall be conclusive
and described in a Resolution of the Board of Directors) of the evidences of
Indebtedness, shares of Capital Stock or other securities or assets or cash
being distributed (in the event requiring such computation) applicable to one
share of Common Stock as of the close of business on the day before such Ex
Date.

 

65

 

The term “Ex Date,” (i) when used with respect to any issuance or
distribution, means the first date on which the Common Stock trades the regular
way on the relevant exchange or in the relevant market from which the Closing
Sale Price was obtained without the right to receive such issuance or
distribution, (ii) when used with respect to any subdivision or combination of
shares of Common Stock, means the first date on which the Common Stock trades
the regular way on such exchange or in such market after the time at which such
subdivision or combination becomes effective, and (iii) when used with respect
to any tender offer or exchange offer means the first date on which the Common
Stock trades the regular way on such exchange or in such market after the
expiration time of such tender offer or exchange offer (as it may be amended or
extended).

 

10.06                     NO ADJUSTMENT.

 

No adjustment in the Conversion Rate shall be
required until cumulative adjustments amount to one percent (1%) or more of the
Conversion Rate as last adjusted (or, if never adjusted, the initial Conversion
Rate); provided, however, that any adjustments to
the Conversion Rate which by reason of this Section 10.06
are not required to be made shall be carried forward and taken into account in
any subsequent adjustment to the Conversion Rate; provided
further, that at the end of each fiscal year of the Company,
beginning with the fiscal year ending on December 31, 2004, any
adjustments to the Conversion Rate that have been, and at such time remain, deferred pursuant to this
Section 10.06 shall be given effect, and such adjustments,
if any shall no longer be carried forward and taken into account in any
subsequent adjustment to the Conversion Rate.  All calculations under this Article X shall be made to the nearest cent or to the
nearest one-millionth of a share, as the case may be. 

 

If any rights, options or warrants issued by
the Company and requiring an adjustment to the Conversion Rate in accordance
with Section 10.05 are only exercisable
upon the occurrence of certain triggering events, then the Conversion Rate will
not be adjusted as provided in Section 10.05
until the earliest of such triggering event occurs.  Upon the expiration or termination of any such
rights, options or warrants without the exercise of such rights, options or
warrants, the Conversion Rate then in effect shall be adjusted immediately to
the Conversion Rate which would have been in effect at the time of such
expiration or termination had such rights, options or warrants, to the extent
outstanding immediately prior to such expiration or termination, never been
issued.

 

If any dividend or distribution is declared
and the Conversion Rate is adjusted pursuant to Section 10.05
on account of such dividend or distribution, but such dividend or distribution
is thereafter not paid or made, the Conversion Rate shall again be adjusted to
the Conversion Rate which would then be in effect had such dividend or
distribution not been declared.

 

No adjustment to the Conversion Rate need be
made for a transaction referred to in this Article X
if Holders are to participate in the transaction without conversion on a basis
and with notice that the Board of Directors determines in good faith to be fair
and appropriate in light of the basis and notice on which holders of Common
Stock participate in the transaction (which determination shall be described in
a Board Resolution).

 

66

 

10.07                     OTHER
ADJUSTMENTS.

 

In the event that, as a result of an
adjustment made pursuant to Section 10.05
hereof, the Holder of any Security thereafter surrendered for conversion shall
become entitled to receive any shares of Capital Stock other than shares of
Common Stock, thereafter the Conversion Rate of such other shares so receivable
upon conversion of any Security shall be subject to adjustment from time to
time in a manner and on terms as nearly equivalent as practicable to the
provisions with respect to Common Stock contained in this Article X.

 

10.08                     ADJUSTMENTS
FOR TAX PURPOSES.

 

Except as prohibited by law or by the rules
of The Nasdaq National Market (or, if the Common Stock is not then quoted on
The Nasdaq National Market, the rules of any national securities exchange or
automated quotation system on which the Common Stock is then listed or quoted),
the Company may make such increases in the Conversion Rate, in addition to
those required by Section 10.05
hereof, as it determines to be advisable in order that any stock dividend,
subdivision of shares, distribution or rights to purchase stock or securities
or distribution of securities convertible into or exchangeable for stock made
by the Company or to its stockholders will not be taxable to the recipients
thereof.

 

10.09                     NOTICE OF
ADJUSTMENT.

 

Whenever the Conversion Rate is adjusted, the
Company shall promptly mail to Holders at the addresses appearing on the
Registrar’s books a notice of the adjustment and file with the Trustee an
Officers’ Certificate briefly stating the facts requiring the adjustment and
the manner of computing it.  The
certificate shall be conclusive evidence of the correctness of such adjustment.

 

10.10                     NOTICE
OF CERTAIN TRANSACTIONS.

 

In the event that:

 

(1)                                  the Company takes any action, or becomes aware of any
event, which would require an adjustment in the Conversion Rate (other than
an adjustment pursuant to Section 10.02(C)),

 

(2)                                  the Company takes any action that would require a
supplemental indenture pursuant to Section 10.11,
or

 

(3)                                  there is a dissolution or liquidation of the Company,

 

the Company shall mail to Holders at the
addresses appearing on the Registrar’s books and the Trustee a written notice
stating the proposed record, effective or expiration date, as the case may be,
of any transaction referred to in clause  (1), (2) or (3) of this Section 10.10.  The Company shall mail such notice at least twenty
(20) days before such date; however, failure to mail such notice or any defect
therein shall not affect the validity of any transaction referred to in clause  (1), (2) or (3) of this Section 10.10.

 

67

 

10.11                     EFFECT OF
RECLASSIFICATIONS,
CONSOLIDATIONS, MERGERS, BINDING SHARE EXCHANGES OR SALES ON CONVERSION
PRIVILEGE.

 

If any of the following shall occur, namely: (i)
any reclassification or change in the Common Stock issuable upon conversion of
Securities (other than a change in par value, or from par value to no par
value, or from no par value to par value, or as a result of a subdivision or
combination), (ii) any consolidation, merger or binding share exchange to which
the Company is a party other than a merger in which the Company is the
continuing Person and which does not result in any reclassification of, or
change (other than a change in name, or par value, or from par value to no par
value, or from no par value to par value or as a result of a subdivision or
combination) in, the Common Stock or (iii) any sale, transfer, lease,
conveyance or other disposition of all or substantially all of the property or
assets of the Company, then the Company or such successor or purchasing Person,
as the case may be, shall, as a condition precedent to such reclassification,
change, consolidation, merger, binding share exchange, sale, transfer, lease,
conveyance or disposition, execute and deliver to the Trustee a supplemental
indenture in form reasonably satisfactory to the Trustee providing that, at and
after the effective time of such reclassification, change, consolidation,
merger, binding share exchange, sale, transfer, lease, conveyance or
disposition, the Holder of each Security then outstanding shall have the right
to convert such Security into the kind and amount of shares of stock and other
securities and property (including cash) (collectively, “Reference
Property”) receivable upon such reclassification, change,
consolidation, merger, binding share exchange, sale, transfer, lease,
conveyance or disposition by a holder of a number of shares of Common Stock
equal to a fraction whose denominator is one thousand (1,000) and whose
numerator is the product of the principal amount of such Security and the
Conversion Rate in effect immediately prior to such reclassification, change,
consolidation, merger, binding share exchange, sale, transfer, lease,
conveyance or disposition, assuming that such Holder would not have exercised
any rights of election that such Holder would have had as a holder of Common
Stock to select a particular type of consideration; provided,
however, that after at the
effective time of such reclassification, change, consolidation, merger,
binding share exchange, sale, transfer, lease, conveyance or disposition, the
Principal Return payable hereunder upon conversion of such Security shall
continue to be payable in cash and the Net Share Settlement Conversion Value
shall be calculated based on the fair value of the Reference Property. 
Such supplemental indenture shall provide for adjustments of the Conversion
Rate which shall be as nearly equivalent as may be practicable to the
adjustments of the Conversion Rate provided for in this Article X.  The foregoing, however, shall not in any way
affect the right a Holder of a Security may otherwise have, pursuant to Section 10.05(c) or Section 10.13,
to receive Rights upon conversion of a Security.  If, in the case of any such consolidation,
merger, binding share exchange, sale, transfer, lease, conveyance or
disposition, the stock or other securities and property (including cash)
receivable thereupon by a holder of Common Stock includes shares of stock or
other securities and property of a Person other than the successor or
purchasing Person, as the case may be, in such consolidation, merger, binding
share exchange, sale, transfer, lease, conveyance or disposition, 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 Securities as the Board of Directors in good faith shall reasonably determine
necessary by reason of the foregoing (which determination shall be described in
a Board Resolution).  The provision of
this Section 10.11 shall similarly
apply to successive consolidations, mergers, binding share exchanges, sales,
transfers, leases, conveyances or dispositions.

 

68

 

In the event the Company shall execute a
supplemental indenture pursuant to this Section 10.11,
the Company shall promptly file with the Trustee an Officers’ Certificate
briefly stating the reasons therefor, the kind or amount of shares of stock or
securities or property (including cash) receivable by Holders of the Securities
upon the conversion of their Securities after any such reclassification,
change, consolidation, merger, binding share exchange, sale, transfer, lease,
conveyance or disposition and any adjustment to be made with respect thereto.

 

10.12                     TRUSTEE’S
DISCLAIMER.

 

The Trustee has no duty to determine when an
adjustment under this Article X
should be made, how it should be made or what such adjustment should be, but
may accept as conclusive evidence of the correctness of any such adjustment,
and shall be protected in relying upon, the Officers’ Certificate with respect
thereto which the Company is obligated to file with the Trustee pursuant to Section 10.09 hereof. 
The Trustee makes no representation as to the validity or value of any
securities or assets issued upon conversion of Securities, and the Trustee
shall not be responsible for the failure by the Company to comply with any
provisions of this Article X.

 

The Trustee shall not be under any
responsibility to determine the correctness of any provisions contained in any
supplemental indenture executed pursuant to Section 10.11,
but may accept as conclusive evidence of the correctness thereof, and shall be
protected in relying upon, the Officers’ Certificate with respect thereto which
the Company is obligated to file with the Trustee pursuant to Section 10.11 hereof.

 

10.13                     RIGHTS
DISTRIBUTIONS PURSUANT
TO STOCKHOLDERS’ RIGHTS PLANS.

 

Upon conversion of any Security or a portion
thereof, the Company shall make provision for the Holder thereof to receive, in
addition to, and concurrently with the delivery of, the consideration otherwise
payable hereunder upon such conversion, the rights described in any stockholders’
rights plan the Company may have in effect at such time (whether or not the
rights have been separated from the Common Stock prior to the time of
conversion).  In the event that the
Company implements a stockholders’ rights plan after the date hereof, the
Company shall provide that the Holders will receive upon conversion of their
Securities, in addition to the consideration otherwise payable hereunder upon
such conversion, the rights described therein (whether or not the rights have
been separated from the Common Stock prior to the time of conversion).

 

XI.                                MISCELLANEOUS

 

11.01                     TRUST
INDENTURE ACT CONTROLS.

 

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

 

69

 

11.02                     NOTICES.

 

Any notice or communication by the Company or
the Trustee to the other is duly given if in writing and delivered in person,
mailed by first-class mail or by express delivery to the other party’s address
stated in this Section 11.02.  The Company or the Trustee by notice to the
other may designate additional or different addresses for subsequent notices or
communications.

 

Any notice or communication to a Holder shall
be mailed to its address shown on the register kept by the Registrar.  Failure to mail a notice or communication to
a Holder or any defect in it shall not affect its sufficiency with respect to
other Holders.

 

If a notice or communication is mailed in the
manner provided above, it is duly given, whether or not the addressee receives
it.

 

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

 

All notices or communications shall be in
writing.

 

The Company’s address is:

 

Option Care, Inc.

486 Half Day Road, Suite 300

Buffalo Grove, Illinois 60089

Attn: Chief Financial Officer

 

The Trustee’s address is:

 

LaSalle Bank National Association

135 South LaSalle Street, Suite 1960

Chicago, Illinois 60603

Attn: Corporate Trust Service

 

11.03                     COMMUNICATION
BY HOLDERS WITH OTHER
HOLDERS.

 

Holders may communicate pursuant to TIA § 312(b)
with other Holders with respect to their rights under this Indenture or the
Securities.  The Company, the Trustee,
the Registrar and anyone else shall have the protection of TIA § 312(c).

 

11.04                     CERTIFICATE
AND OPINION AS TO
CONDITIONS PRECEDENT.

 

Upon any request or application by the
Company to the Trustee to take any action under this Indenture, the Company
shall furnish to the Trustee:

 

(i)                           an
Officers’ Certificate stating that, in the opinion of the signatories to such
Officers’ Certificate, all conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with; and

 

70

 

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

 

Each signatory to an Officers’ Certificate or
an Opinion of Counsel may (if so stated) rely, effectively, upon an Opinion of
Counsel as to legal matters and an Officers’ Certificate or certificates of
public officials as to factual matters if such signatory reasonably and in good
faith believes in the accuracy of the document relied upon.

 

11.05                     STATEMENTS
REQUIRED IN CERTIFICATE
OR OPINION.

 

Each Officers’ Certificate or Opinion of
Counsel with respect to compliance with a condition or covenant provided for in
this Indenture shall include:

 

(i)                           a
statement that the person making such certificate or opinion has read such
covenant or condition;

 

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

 

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

 

(iv)                    a
statement as to whether or not, in the opinion of such person, such condition
or covenant has been complied with.

 

11.06                     RULES BY TRUSTEE
AND AGENTS.

 

The Trustee may make reasonable rules for
action by or at a meeting of Holders. 
The Registrar, Paying Agent or Conversion Agent may make reasonable
rules and set reasonable requirements for their respective functions.

 

11.07                     LEGAL HOLIDAYS.

 

A “Legal Holiday”
is a Saturday, a Sunday or a day on which banking institutions are not required
to be open in the City of New York, in the State of New York or in the city in
which the Trustee administers its corporate trust business.  If a payment date is a Legal Holiday at a
place of payment, payment may be made at that place on the next succeeding day
that is not a Legal Holiday, and no interest shall accrue on that payment for
the intervening period.

 

A “Business Day”
is a day other than a Legal Holiday.

 

11.08                     DUPLICATE
ORIGINALS.

 

The parties may sign any number of copies of
this Indenture.  Each signed copy shall
be an original, but all of them together represent the same agreement.  Delivery of an executed

 

71

 

counterpart by facsimile shall be effective
as delivery of a manually executed counterpart thereof.

 

11.09                     GOVERNING LAW.

 

The laws of the State of New York, without
regard to principles of conflicts of law, shall govern this Indenture and the
Securities.

 

11.10                     NO
ADVERSE INTERPRETATION OF
OTHER AGREEMENTS.

 

This Indenture may not be used to interpret
another indenture, loan or debt agreement of the Company or any of its
Subsidiaries.  Any such indenture, loan
or debt agreement may not be used to interpret this Indenture.

 

11.11                     SUCCESSORS.

 

All agreements of the Company in this
Indenture and the Securities shall bind its successors.  All agreements of the Trustee in this
Indenture shall bind its successors.

 

11.12                     SEPARABILITY.

 

In case any provision in this Indenture or in
the Securities shall be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby and a Holder shall have no claim therefor against
any party hereto.

 

11.13                     TABLE OF
CONTENTS, HEADINGS,
ETC.

 

The Table of Contents, Cross-Reference Table
and headings of the Articles and Sections of this Indenture have been inserted
for convenience of reference only, are not to be considered a part hereof and
shall in no way modify or restrict any of the terms or provisions hereof.

 

11.14                     CALCULATIONS
IN RESPECT OF THE
SECURITIES.

 

The Company and its agents (including,
without limitation, the Bid Solicitation Agent) shall make all calculations
under this Indenture and the Securities in good faith.  In the absence of manifest error, such
calculations shall be final and binding on all Holders.  The Company shall provide a copy of such
calculations to the Trustee as required hereunder, and, absent such manifest
error, the Trustee shall be entitled to rely on the accuracy of any such
calculation without independent verification.

 

[The Remainder of This Page Intentionally Left
Blank; Signature Page Follows]

 

72

 

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

 

 

	
   

  	
  OPTION CARE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Rajat
  Rai

  
	
   

  	
   

  	
  Name:

  	
  Rajat Rai

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LASALLE BANK
  NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Victoria
  Y. Douyon

  
	
   

  	
   

  	
  Name:

  	
  Victoria Y.
  Douyon

  
	
   

  	
   

  	
  Title:

  	
  First Vice
  President

  

 

EXHIBIT A

 

[Face of Security]

 

OPTION
CARE, INC.

 

Certificate No.                

 

[INSERT
PRIVATE PLACEMENT LEGEND AND GLOBAL SECURITY LEGEND AS REQUIRED]

 

2.25% Convertible
Senior Note due 2024

 

CUSIP No.                       

 

Option Care, Inc., a Delaware corporation
(the “Company”), for value received, hereby
promises to pay to Cede & Co., or its registered assigns, the principal sum
of                                    
dollars ($                    )
on November 1, 2024 and to pay interest thereon, as provided on the
reverse hereof, until the principal and any unpaid and accrued interest are
paid or duly provided for.

 

Interest Payment Dates: May 1 and November 1,
with the first payment to be made on May 1, 2005.

 

Record Dates: April 15 and October 15.

 

The provisions on the back of this
certificate are incorporated as if set forth on the face hereof.

 

IN WITNESS WHEREOF, Option
Care, Inc. has caused this instrument to be duly signed.

 

	
   

  	
  OPTION CARE,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  
	
   

  
	
  Dated:

  	
   

  	
   

  
						

 

A-1

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Securities referred
to

in the within-mentioned Indenture.

 

LASALLE BANK NATIONAL ASSOCIATION, as Trustee

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  
	
   

  
	
  Dated:

  	
   

  	
   

  
					

 

A-2

 

[REVERSE OF SECURITY]

 

OPTION
CARE, INC.

 

2.25% Convertible Senior
Note due 2024

 

1.                                       Interest.  Option
Care, Inc., a Delaware corporation (the “Company”),
promises to pay interest on the principal amount of this Security at the rate per annum shown above. 
The Company will pay interest, payable semi-annually in arrears, on May
1 and November 1 of each year, with the first payment to be made on May 1,
2005.  Interest on the Securities will
accrue on the principal amount from, and including, the most recent date to
which interest has been paid or provided for or, if no interest has been paid,
from, and including, November 2, 2004, in each case to, but excluding, the
next interest payment date or Maturity Date, as the case may be.  Interest will be computed on the basis of a
360-day year of twelve 30-day months.

 

2.                                       Maturity.  The
Securities will mature on November 1, 2024.

 

3.                                       Method of Payment.  Except
as provided in the Indenture (as defined below), the Company will pay interest
on the Securities to the persons who are Holders of record of Securities at the
close of business on the record date set forth on the face of this Security
next preceding the applicable interest payment date.  Holders must surrender Securities to a Paying
Agent to collect the principal amount, Redemption Price, Option Purchase Price
or Fundamental Change Repurchase Price of the Securities, plus, if applicable,
accrued and unpaid interest, if any, payable as herein provided upon
Redemption, Purchase at Holder’s Option or Repurchase Upon Fundamental Change,
as the case may be.  The Company will pay,
in money of the United States that at the time of payment is legal tender for
payment of public and private debts, all amounts due in cash with respect to
the Securities, which amounts shall be paid (A) in the case this Security is in
global form, by wire transfer of immediately available funds to the account
specified by the Holder hereof and (B) in the case this Security is held in
other than global form, by wire transfer of immediately available funds to the
account specified by the Holder hereof or, if no such account is specified, by
mailing a check to such Holder’s address shown in the register of the Registrar.

 

4.                                       Paying Agent, Registrar, Conversion Agent.  Initially, LaSalle Bank National Association
(the “Trustee”) will act as Paying Agent,
Registrar, Bid Solicitation Agent and Conversion Agent.  The Company may change any Paying Agent,
Registrar, Bid Solicitation Agent or Conversion Agent without notice.

 

5.                                       Indenture.  The
Company issued the Securities under an Indenture dated as of November 2,
2004 (the “Indenture”) between the Company
and the Trustee.  The terms of the
Securities include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb)
(the “TIA”) as amended and in effect from
time to time.  The Securities are subject
to all such terms, and Holders are referred to the Indenture and the TIA for a
statement of such terms.  The Securities
are general unsecured senior obligations of the Company limited to $75,000,000
aggregate principal amount ($86,250,000 if the Initial Purchasers have elected
to exercise in full the Option to purchase up to an additional $11,250,000 aggregate
principal amount of the Securities), except as otherwise

 

A-3

 

provided in
the Indenture (except for Securities issued in substitution for destroyed,
mutilated, lost or stolen Securities). 
Terms used herein without definition and which are defined in the
Indenture have the meanings assigned to them in the Indenture.

 

6.                                       Optional Redemption.

 

The Company shall have the right, at the Company’s option, at any time,
and from time to time, on a Redemption Date on or after November 1, 2009,
to redeem all or any part of the Securities at a price payable in cash equal to
one hundred percent (100%) of the principal amount of the Securities to be
redeemed, plus accrued and unpaid interest, if any, to, but excluding, the
Redemption Date.

 

Upon surrender to the Paying Agent of a Security subject to Redemption,
such Security shall be paid, to the Holder surrendering such Security, at the
Redemption Price plus accrued and unpaid interest to, but excluding, the
Redemption Date, unless the Redemption Date is an interest payment date, in
which case such accrued and unpaid interest will instead be paid on such
interest payment date to the Holder of record of such Security at the close of
business on the record date for such interest payment.  The Company will make at least ten (10)
semi-annual interest payments with respect to the Securities prior to redeeming
any Securities under this paragraph 6.

 

If the Paying
Agent (other than the Company) holds on the Redemption Date money sufficient to
pay the aggregate Redemption Price, and accrued and unpaid interest, if any,
to, but excluding, the Redemption Date, payable on the Redemption Date with
respect to all Securities to be redeemed, then (unless there shall be a Default
in the payment of the Redemption Price or such accrued and unpaid interest) on
and after the Redemption Date such Securities shall be deemed to be no longer
outstanding, interest on such Securities shall cease to accrue, and such
Securities shall be deemed paid whether or not such Securities are delivered to
the Paying Agent.  Thereafter, all rights
of the Holders of such Securities shall terminate with respect to such
Securities, other than the right to receive the Redemption Price plus such
accrued and unpaid interest.

 

7.                                       Notice of Redemption. 
Notice of Redemption will be mailed at least thirty (30) days but not
more than sixty (60) days before the Redemption Date to each Holder of
Securities to be redeemed at its address appearing in the security register.  Securities in denominations larger than
$1,000 principal amount may be redeemed in part but only in integral multiples
of $1,000 principal amount.

 

8.                                       Purchase by the Company at the Option of the Holder.  Subject to the terms and conditions of the
Indenture, the Company shall become obligated to purchase, at the option of the
Holder, the Securities held by such Holder on November 1, 2009, November 1,
2014 and November 1, 2019 (each, an “Option Purchase Date”)
at an Option Purchase Price, payable in cash, equal to one hundred percent
(100%) of the principal amount of the Securities to be purchased, plus accrued
and unpaid interest, if any, to, but excluding, applicable Option Purchase
Date, upon delivery of a Purchase Notice containing the information set forth
in the Indenture, at any time from the opening of business on the date that is
twenty (20) Business Days prior to the applicable Option Purchase Date until
the close of business on the Business Day immediately

 

A-4

 

preceding the applicable Option Purchase Date
and upon delivery of the Securities to the Paying Agent by the Holder as set
forth in the Indenture.

 

Holders have the right to withdraw any Purchase Notice by delivering to
the Paying Agent a written notice of withdrawal in accordance with the
provisions of the Indenture.

 

If the Paying Agent (other than the Company) holds on the applicable
Option Purchase Date money sufficient to pay the aggregate Option Purchase
Price, and accrued and unpaid interest, if any, to, but excluding, such Option
Purchase Date, payable in respect of Securities on such Option Purchase Date,
then (unless there shall be a Default in the payment of such aggregate Option
Purchase Price or such accrued and unpaid interest) on and after such Option
Purchase Date such Securities shall be deemed to be no longer outstanding and
interest on them shall cease to accrue, and such Securities shall be deemed
paid whether or not such Securities are delivered to the Paying Agent.  Thereafter, all other rights of the Holders
of such Securities shall terminate with respect to such Securities, other than
the right to receive the Option Purchase Price plus such accrued and unpaid
interest.

 

9.                                       Repurchase at Option of Holder Upon a Fundamental Change.  Subject to the terms and conditions of the
Indenture, in the event of a Fundamental Change, each Holder of the Securities
shall have the right, at the Holder’s option, to require the Company to
repurchase such Holder’s Securities including any portion thereof which is
$1,000 in principal amount or any integral multiple thereof on a date selected
by the Company (the “Fundamental Change
Repurchase Date”), which date is no later than thirty (30) Trading
Days, and no earlier than twenty (20) Trading Days, after the date on which
notice of such Fundamental Change is mailed in accordance with the Indenture,
and no earlier than the date such Fundamental Change occurs, at a price payable
in cash equal to one hundred percent (100%) of the principal amount of such
Security, plus accrued and unpaid interest to, but excluding, the Fundamental
Change Repurchase Date; provided, however, that, if a Holder of a Security elects to require
the Company, in accordance with Section 3.09
of the Indenture, to repurchase such Security in connection with a Make-Whole
Fundamental Change, then the Holder of such Security shall be entitled
to receive, in addition to such cash, a Make-Whole
Premium, as determined in accordance with, and in the manner and form as set
forth in, Section 3.09(J) of the Indenture.

 

Within fifteen (15) days after the occurrence
of the Fundamental Change, the Company must mail, or cause to be mailed, notice
of the occurrence of such Fundamental Change to each Holder.  Such notice shall include, among other
things, a description of the procedure which a Holder must follow to exercise
the Fundamental Change Repurchase Right. 
To exercise the Fundamental Change Repurchase Right, a Holder of
Securities must, in accordance with the provisions of the Indenture, (i)
deliver, no later than the close of business on the Business Day immediately
preceding the Fundamental Change Repurchase Date, a Purchase Notice to the
Company (if it is acting as its own Paying Agent) or to the Paying Agent; and
(ii) deliver, at any time after the delivery of such Purchase Notice, the
Securities with respect to which the Holder is exercising its Fundamental
Change Repurchase Right (together with all necessary endorsements).

 

A “Fundamental Change”
shall be deemed to have occurred upon the occurrence of either a “Change in
Control” or a “Termination of Trading.”

 

A-5

 

A “Change in Control”
shall be deemed to have occurred at such time as:

 

(i)                       any “person”
or “group” (as such terms are used for purposes of Sections 13(d) and 14(d) of
the Exchange Act) is or becomes the “beneficial owner” (as such term is used in
Rule 13d-3 under the Exchange Act), directly or indirectly, of fifty percent
(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; or

 

(ii)                    at any time
the following persons cease for any reason to constitute a majority of the
Company’s Board of Directors:

 

(1)                                  individuals
who on the Issue Date constituted the Company’s Board of Directors; and

 

(2)                                  any
new directors whose election to the Company’s Board of Directors or whose
nomination for election by the Company’s stockholders was approved by at least
a majority of the directors of the Company then still in office either who were
directors of the Company on the Issue Date or whose election or nomination for
election was previously so approved; or

 

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

 

(iv)                the sale,
transfer, lease, conveyance or other disposition of all or substantially all of
the property or assets of the Company to any “person” or “group” (as such 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
within the meaning of Rule 13d-5(b)(1) under the Exchange Act; or

 

(v)                   the Company is
liquidated or dissolved or the holders of the Company’s Capital Stock approve
any plan or proposal for the liquidation or dissolution of the Company;

 

provided, however,
that a merger or consolidation shall be deemed not to constitute Change in
Control if:

 

(I)                                                 all
of the consideration (other than cash payments for fractional shares or
pursuant to statutory appraisal rights) in such merger or consolidation
consists of common stock and any associated rights traded on a U.S. national
securities exchange or quoted on The Nasdaq National Market (or which will be
so traded or quoted when issued or

 

A-6

 

exchanged in connection with such merger or
consolidation) (provided, however,
that if an entity that is organized and existing under the laws of a
jurisdiction outside the United States is a party to such merger or
consolidation, then such consideration may consist of American Depositary
Shares traded on a U.S. national securities exchange or quoted on The Nasdaq
National Market (together with any associated rights) in lieu of common stock
so traded or quoted (together with any associated rights) provided such merger
or consolidation also constitutes a Qualifying Foreign Merger); and

 

(II)                                             as
a result of such merger or consolidation, the Securities become convertible solely
into such common stock and associated rights (or, in the case of a Qualifying
Foreign Merger, such American Depositary Shares and associated rights).

 

A “Termination of Trading”
shall occur if the Common Stock of the Company (or other common stock into
which the Securities are then convertible) is neither listed for trading on a
U.S. national securities exchange nor approved for trading on an established
automated over-the-counter trading market in the United States; provided, however, that a
“termination of trading” shall not be deemed to have occurred solely by reason
of the Company engaging in a Qualifying Foreign Merger, provided
that, immediately after such Qualifying Foreign Merger, the Holders shall have
the right to convert their Securities solely into common stock or American
Depositary Shares representing such common stock traded on a U.S. national
securities exchange or quoted on The Nasdaq National Market, until such time as
such common stock or American Depositary Shares on such common stock into which
the Securities are solely convertible are no longer so traded or quoted.

 

10.                                 Conversion.

 

Conversion Based on Closing Sale Price of
Common Stock. 
Subject to earlier Redemption, Purchase at Holder’s Option or Repurchase
Upon Fundamental Change, Holders may surrender Securities in integral multiples
of $1,000 principal amount for conversion into cash and, if applicable, shares
of Common Stock on any Business Day of a calendar quarter after the calendar quarter
ending December 31, 2004, if the Closing Sale Price for each of twenty
(20) or more consecutive Trading Days in a period of thirty (30) consecutive
Trading Days ending on the last Trading Day of the immediately preceding
calendar quarter exceeds one hundred and twenty percent (120%) of the
Conversion Price in effect on the last Trading Day of the immediately preceding
calendar quarter.  Solely for purposes of
determining whether the Securities shall have become convertible pursuant to
this paragraph, the Board of Directors shall, in its good faith determination,
which shall be described in a Board Resolution, make appropriate adjustments to
the Closing Sale Prices and/or such Conversion Price used to determine whether
the Securities shall have become convertible pursuant to this paragraph to
account for any adjustments to the Conversion Rate which shall have become
effective, or any event requiring an adjustment to the Conversion Rate where
the Ex Date of such event occurs, during the period of thirty (30) consecutive
Trading Days ending on the last Trading Day of the immediately preceding
calendar quarter.

 

A-7

 

Conversion Upon Satisfaction of Trading Price Condition.  Subject to earlier Redemption, Purchase at
Holder’s Option or Repurchase Upon Fundamental Change, Holders may surrender
Securities in integral multiples of $1,000 principal amount for conversion into
cash and, if applicable, shares of Common Stock during the five (5) Business
Day period after any five (5) consecutive Trading Day period (the “Note Measurement Period”) in which the average Trading Price
per $1,000 principal amount of the Securities was equal to or less than ninety
seven percent (97%) of the average Conversion Value (as defined below) during the
Note Measurement Period (such condition, the “Trading
Price Condition”).  The
Bid Solicitation Agent shall not have any obligation to determine the Trading
Price unless the Company has requested such determination, and the Company
shall have no obligation to make such request unless a Holder provides the
Company with reasonable evidence that the Trading Price per $1,000 principal
amount of the Securities would be equal to or less than ninety seven percent
(97%) of the product of the Closing Sale Price and the Conversion Rate.  Upon receipt of such evidence, the Company
shall instruct the Bid Solicitation Agent to determine the Trading Price per
$1,000 principal amount of the Securities for each of the five (5) successive
Trading Days immediately after the Company receives such evidence and on each
Trading Day thereafter until the first Trading Day on which the Trading Price
Condition is no longer satisfied.  For
purposes of this paragraph, the “Conversion Value”
per $1,000 principal amount of Securities, on a given Trading Day, means the
product of the Closing Sale Price on such Trading Day and the Conversion Rate
in effect on such Trading Day.

 

Conversion Based on Redemption.  A Security, or portion of a Security, which
has been called for Redemption pursuant to paragraph 6 may
be surrendered in integral multiples of $1,000 principal amount for conversion
into cash and, if applicable, shares of Common Stock; provided,
however, that such Security or portion
thereof may be surrendered for conversion pursuant to this paragraph only until
the close of business on the Business Day immediately preceding the Redemption
Date.

 

Conversion Upon Certain Distributions.  Subject to earlier Redemption, Purchase at
Holder’s Option or Repurchase Upon Fundamental Change, if the Company takes any
action, or becomes aware of any event, that would require an adjustment to the
Conversion Rate pursuant to Sections 10.05(b),
10.05(c), 10.05(d),
10.05(e) or 10.05(f)
of the Indenture, the Securities may be surrendered for conversion in integral
multiples of $1,000 principal amount into cash and, if applicable, shares of
Common Stock beginning on the date the Company mails the notice to the Holders
as provided in Section 10.10 of the
Indenture (or, if earlier, the date the Company is required to mail such notice)
and at any time thereafter until the close of business on the Business Day
immediately preceding the Ex Date (as defined in Section 10.05(h)
of the Indenture) of the applicable transaction or until the Company announces
that such transaction will not take place.

 

Conversion Upon Occurrence of Certain Corporate Transactions.  Subject to earlier Redemption, Purchase at
Holder’s Option or Repurchase Upon Fundamental Change, if either (i) the
Company is a party to a consolidation, merger or binding share exchange
pursuant to which the Common Stock would be converted into cash, securities or
other property or (ii) a Fundamental Change shall have occurred, then, in each
case, the Securities may be surrendered for conversion into cash and, if
applicable, shares of Common Stock at any time during the period that begins on, and includes, the date that is
fifteen (15) Business Days prior to the date

 

A-8

 

originally announced by the Company as the anticipated effective date
of such Fundamental Change, transaction or event (which
anticipated effective date the Company shall disclose, in good faith, in the
written notice, public announcement and publication referred to in Section 10.01(C) of the Indenture) and ends on, and includes, the date that is
fifteen (15) Business Days after the actual effective date of such Fundamental
Change, transaction or event.

 

To convert a Security, a Holder must (1) complete and sign the
Conversion Notice, with appropriate signature guarantee, on the back of the
Security, (2) surrender the Security to a Conversion Agent, (3) furnish
appropriate endorsements and transfer documents if required by the Registrar or
Conversion Agent, (4) pay the amount of interest, if any, the Holder must pay in
accordance with the Indenture and (5) pay any tax or duty if required pursuant
to the Indenture.  A Holder may convert a
portion of a Security if the portion is $1,000 principal amount or an integral
multiple of $1,000 principal amount.

 

Upon conversion of a Security,
the Holder thereof shall be entitled to receive the cash and, if applicable,
shares of Common Stock payable upon conversion in accordance with Article X of the Indenture; provided,
however, that, if a Make-Whole
Fundamental Change occurs and such Security is surrendered for conversion at
any time during the period that begins on, and includes, the date that is
fifteen (15) Business Days prior to the date originally announced by the
Company as the anticipated effective date of such Make-Whole Fundamental Change
(which anticipated effective date the Company shall disclose, in
good faith, in the written notice, public announcement and publication referred
to in Section 10.01(C) of the Indenture)
and ends on, and includes,
the date that is fifteen (15) Business Days after the actual effective date of
such Make-Whole Fundamental Change, then the holder of such Security shall be
entitled to receive, in addition to such cash and shares, a Make-Whole Premium,
as determined in accordance with, and in the manner and form as set forth in, Section 3.09(J) of the
Indenture.

 

The initial
Conversion Rate is 55.5278 shares of Common Stock per $1,000 principal amount
of Securities (which results in an effective initial Conversion Price of
approximately $18.01 per share) subject to adjustment in the event of certain
circumstances as specified in the Indenture. 
The Company will deliver a check in lieu of any fractional share.  If a Holder surrenders a Security for
conversion after the close of business on the record date for the payment of an
installment of interest and prior to the related interest payment date, such
Security, when surrendered for conversion, must be accompanied by payment of an
amount equal to the interest thereon which the registered Holder at the close
of business on such record date is to receive (other than overdue interest, if
any, that has accrued on such Security), unless such Security has been called
for Redemption as described in the Indenture.

 

Any shares of Common Stock that are issued
upon conversion of a Security shall bear the Private Placement Legend until
after the second anniversary of the later of the Issue Date and the last date
on which the Company or any Affiliate of the Company was the owner of such
shares or the Security (or any predecessor security) from which such shares
were converted (or such shorter period of time as permitted by Rule 144(k)
under the Securities Act or any successor provision thereunder) (or such longer
period of time as may be required under the Securities Act or applicable state
securities laws, as set forth in an Opinion of Counsel, unless otherwise agreed
by the Company and the Holder thereof).

 

A-9

 

11.                                 Denominations, Transfer, Exchange.  The Securities are in registered form,
without coupons, in denominations of $1,000 principal amount and integral
multiples of $1,000 principal amount. 
The transfer of Securities may be registered and Securities may be exchanged
as provided in the Indenture.  The
Registrar may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents.  No
service charge shall be made for any such registration of transfer or exchange,
but the Company may require payment of a sum sufficient to cover any tax or
similar governmental charge that may be imposed in connection with certain
transfers or exchanges.  The Company or
the Trustee, as the case may be, shall not be required to register the transfer
of or exchange any Security (i) during a period beginning at the opening of
business fifteen (15) days before the mailing of a notice of redemption of the
Securities selected for Redemption under Section  3.04 of the Indenture and ending at the close of business on
the day of such mailing or (ii) for a period of fifteen (15) days before selecting,
pursuant to Section 3.03 of the Indenture,
Securities to be redeemed or (iii) that has been selected for Redemption or for
which a Purchase Notice has been delivered, and not withdrawn, in accordance
with the Indenture, except the unredeemed or unrepurchased portion of
Securities being redeemed or repurchased in part.

 

12.                                 Persons Deemed Owners. 
The registered Holder of a Security may be treated as the owner of such
Security for all purposes.

13.                                 Merger or Consolidation. 
The Company shall not consolidate with, or merge with or into, or sell,
transfer, lease, convey or otherwise dispose of all or substantially all of the
property or assets of the Company to, another person, whether in a single
transaction or series of related transactions, unless:

 

(i)                                   such
other person is either:

 

(a)                                   a
corporation organized and existing under the laws of the United States, any
State thereof or the District of Columbia; or

 

(b)                                  a
corporation organized and existing under the laws of a jurisdiction outside the
United States, provided, that (A) such person
has common stock or American Depository Shares representing such common stock
traded on a national securities exchange in the United States or quoted on The
Nasdaq National Market; (B) such person has a worldwide total market
capitalization of its equity securities (before giving effect to such
consolidation, merger, sale, transfer, lease, conveyance or disposition) of at
least $5 billion; (C) such person has, prior to such consolidation, merger,
sale, transfer, lease, conveyance or disposition, consented to service of
process in the United States; (D) prior to such consolidation, merger, sale,
transfer, lease, conveyance or disposition, the Company shall have made
provision for the satisfaction of the Company’s obligations under Section 3.09 to repurchase Securities in connection with a
Fundamental Change, if any; and (E) prior to such consolidation, merger, sale,
transfer, lease, conveyance or disposition, the Company shall have obtained an
opinion of tax counsel experienced in such matters to the effect that, under
the then-existing U.S. federal tax laws, there would be

 

A-10

 

no material adverse tax consequences to Holders resulting from such
consolidation, merger, sale, transfer, lease, conveyance or disposition (any
such consolidation, merger, sale, transfer, lease, conveyance or disposition
satisfying the requirements of this Paragraph 13(i)(b),
a “Qualifying Foreign Merger”); and

 

(ii)                                such
person assumes by supplemental indenture all the obligations of the Company
under the Securities and this Indenture; and

 

(iii)                             immediately
after giving effect to such transaction or series of transactions, no Default
or Event of Default shall exist.

 

14.                                 Amendments, Supplements and Waivers.  Subject to certain exceptions, the Indenture
or the Securities may be amended or supplemented with the consent of the
Holders of at least a majority in aggregate principal amount of the outstanding
Securities, and certain existing Defaults or Events of Default may be waived
with the consent of the Holders of a majority in aggregate principal amount of
the Securities then outstanding.  In
accordance with the terms of the Indenture, The Company, with the consent of
the Trustee, may amend or supplement this Indenture or the Securities without
notice to or the consent of any Securityholder: (i) to comply with Sections  5.01 and 10.11 of the Indenture; (ii) to make any changes or
modifications to the Indenture necessary in connection with the registration of
the Securities under the Securities Act pursuant to the Registration Rights
Agreement or the qualification of the Indenture under the TIA; (iii) to secure the
obligations of the Company in respect of the Securities; (iv) to add to the
covenants of the Company described in the Indenture for the benefit of
Securityholders or to surrender any right or power conferred upon the Company;
and (v) to make provisions with respect to adjustments to the Conversion Rate
as required by the Indenture or to increase the Conversion Rate in accordance
with the Indenture.  In addition, the
Company and the Trustee may enter into a supplemental indenture without the
consent of Holders of the Securities to cure any ambiguity, defect, omission or
inconsistency in the Indenture in a manner that does not adversely affect the
rights of any Holder.

 

15.                                 Defaults and Remedies. 
Subject to the provisions of the Indenture, an “Event of
Default” occurs if (i) the Company fails to pay the principal of, or
premium, if any, on, any Security when the same becomes due and payable,
whether at maturity, upon Redemption, on an Option Purchase Date with respect
to a Purchase at Holder’s Option, on a Fundamental Change Repurchase Date with
respect to a Repurchase Upon Fundamental Change or otherwise; (ii) the Company
fails to pay an installment of interest or additional interest, on any Security
when due, if such failure continues for thirty (30) days after the date when
due; (iii) the Company fails to satisfy its conversion obligations upon
exercise of a Holder’s conversion rights pursuant to the Indenture; (iv) the
Company fails to timely provide a Fundamental Change Notice, or an Option
Purchase Notice, as required by the provisions of the Indenture; (v) the
Company fails to comply with any other term, covenant or agreement set forth in
the Securities or the Indenture and such failure continues for the period, and
after the notice, specified in the Indenture; (vi) the Company or any of its
Subsidiaries defaults in the payment when due, after the expiration of any
applicable grace period, of principal of, or premium, if any, or interest on,
Indebtedness for money borrowed, in the aggregate principal amount then
outstanding of ten million dollars ($10,000,000) or more, or the acceleration
of Indebtedness of the Company or any of its

 

A-11

 

Subsidiaries
for money borrowed in such aggregate principal amount or more so that it
becomes due and payable prior to the date on which it would otherwise become
due and payable and such default is not cured or waived, or such acceleration
is not rescinded, within thirty (30) days after notice to the Company by the
Trustee or to the Company and the Trustee by Holders of at least twenty five
percent (25%) in the aggregate principal amount of the Securities then
outstanding, each in accordance with the Indenture; (vii) the Company or any of
its Subsidiaries fails to pay final judgments, the aggregate uninsured portion
of which is at least ten million dollars ($10,000,000), and such judgments are
not paid, discharged or stayed for a period of at least thirty (30) days; and
(viii) certain events of bankruptcy or insolvency involving the Company or any
of its Significant Subsidiaries or any group of Subsidiaries that in the
aggregate would constitute a Significant Subsidiary of the Company.

 

If an Event of
Default (excluding an Event of Default specified in Section
6.01(viii) or (ix)
of the Indenture with respect to the Company (but including an Event of Default
specified in Section 6.01(viii) or (ix) of the Indenture solely with respect to a Significant
Subsidiary of the Company or any group of Subsidiaries that in the aggregate would
constitute a Significant Subsidiary of the Company)) occurs and is continuing,
the Trustee by notice to the Company or the Holders of at least twenty five
percent (25%) in principal amount of the Securities then outstanding by notice
to the Company and the Trustee may declare the Securities to be due and
payable.  Upon such declaration, the
principal of, and any premium and accrued and unpaid interest (including any
additional interest) on, all Securities shall be due and payable
immediately.  If an Event of Default
specified in Section  6.01(viii) or (ix) of the Indenture with respect to the Company
(excluding, for purposes of this sentence, an Event of Default specified in Section  6.01(viii) or (ix) of the Indenture solely with respect to a Significant Subsidiary
of the Company or any group of Subsidiaries that in the aggregate would
constitute a Significant Subsidiary of the Company) occurs, the principal of,
and premium and accrued and unpaid interest (including any additional interest)
on, all the Securities shall ipso facto become
and be immediately due and payable without any declaration or other act on the
part of the Trustee or any Holder.  The
Holders of a majority in aggregate principal amount of the Securities then
outstanding by written notice to the Trustee may rescind or annul an
acceleration and its consequences if (A) the rescission would not conflict with
any order or decree, (B) all existing Events of Default, except the nonpayment
of principal, premium or interest that has become due solely because of the
acceleration, have been cured or waived and (C) all amounts due to the Trustee
under Section 7.07 of the Indenture have been
paid.

 

Holders may
not enforce the Indenture or the Securities except as provided in the
Indenture.  The Holders of a majority in
aggregate principal amount of the Securities then outstanding may 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 it.  However, the Trustee may refuse to follow any
direction that conflicts with law or the Indenture, is unduly prejudicial to
the rights of other Holders or would involve the Trustee in personal liability
unless the Trustee is offered indemnity reasonably satisfactory to it; provided, that the Trustee may take any other action deemed
proper by the Trustee which is not inconsistent with such direction.

 

If a Default
or Event of Default occurs and is continuing as to which the Trustee has
received notice pursuant to the provisions of the Indenture, or as to which a
Responsible Officer of the Trustee shall have actual knowledge, the Trustee
shall mail to each Holder a notice

 

A-12

 

of the Default or Event of
Default within thirty (30) days after it occurs unless such Default or Event of
Default has been cured or waived.  Except
in the case of a Default or Event of Default in payment of any amounts due with
respect to any Security, the Trustee may withhold the notice if, and so long as
it in good faith determines that, withholding the notice is in the best
interests of Holders.  The Company must
deliver to the Trustee an annual compliance certificate.

 

16.                                 Registration Rights. 
The Holders are entitled to registration rights as set forth in the
Registration Rights Agreement.  The
Holders shall be entitled to receive additional interest in certain
circumstances, all as set forth in the Registration Rights Agreement.

 

17.                                 Trustee Dealings with the Company.  The Trustee under the Indenture, or any
banking institution serving as successor Trustee thereunder, in its individual
or any other capacity, may make loans to, accept deposits from, and perform
services for, the Company or its Affiliates, and may otherwise deal with the
Company or its Affiliates, as if it were not Trustee.

 

18.                                 No Recourse Against Others. 
No past, present or future director, officer, employee or stockholder,
as such, of the Company shall have any liability for any obligations of the Company
under the Securities or the Indenture or for any claim based on, in respect of,
or by reason of, such obligations or their creation.  Each Holder, by accepting a Security, waives
and releases all such liability.  The
waiver and release are part of the consideration for the issue of the Securities.

 

19.                                 Authentication.  This
Security shall not be valid until authenticated by the manual signature of the
Trustee or an authenticating agent in accordance with the Indenture.

 

20.                                 Abbreviations. 
Customary abbreviations may be used in the name of a Holder or an
assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entirety),
JT TEN (= joint tenants with right of survivorship and not as tenants in
common), CUST (= Custodian), and U/G/M/A (Uniform Gifts to Minors Act).

 

THE COMPANY WILL FURNISH TO ANY HOLDER UPON WRITTEN REQUEST AND WITHOUT
CHARGE A COPY OF THE INDENTURE.  REQUESTS
MAY BE MADE TO:

 

Option Care, Inc.

486 Half Day Road, Suite 300

Buffalo Grove, Illinois 60089

Attn: Chief Financial Officer

 

A-13

 

[FORM OF ASSIGNMENT]

 

	
  I or we assign to

  
	
   

  
	
  PLEASE INSERT SOCIAL SECURITY OR

  OTHER IDENTIFYING NUMBER

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
  (please print or type name and address)

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
  the within Security and all rights thereunder, and hereby irrevocably
  constitute and appoint

  
	
   

  
	
   

  
	
   

  
	
  Attorney to transfer the Security on the books of the Company with
  full power of substitution in the premises.

  
	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  NOTICE: The signature on this assignment must correspond with the
  name as it appears upon the face of the within Security in every particular
  without alteration or enlargement or any change whatsoever and be guaranteed
  by a guarantor institution participating in the Securities Transfer Agents
  Medallion Program or in such other guarantee program acceptable to the
  Trustee.

  
	
   

  
	
  Signature Guarantee:

  	
   

  
					

 

A-14

 

In connection with any transfer
of this Security occurring prior to the date which is the earlier of (i) the
date of the declaration by the SEC of the effectiveness of a registration
statement under the Securities Act of 1933, as amended, covering resales of
this Security (which effectiveness shall not have been suspended or terminated
at the date of the transfer) and (ii) the Resale Restriction Termination Date,
the undersigned confirms that it is making, and it has not utilized any general
solicitation or general advertising in connection with, the transfer:

 

[Check One]

 

(1)                      o                                                to
the Company or any Subsidiary thereof, or

 

(2)                      o                                                pursuant
to, and in compliance with, the exemption from registration provided by Rule
144A under the Securities Act of 1933, as amended, or

 

(3)                      o                                                pursuant
to, and in compliance with, the exemption from registration provided by Rule
144 under the Securities Act of 1933, as amended, or

 

(4)                      o                                                pursuant
to, and in compliance with, an exemption from registration under the Securities
Act of 1933, as amended, other than Rule 144A or Rule 144, or

 

(5)                      o                                                pursuant
to an effective registration statement under the Securities Act of 1933, as
amended,

 

and, unless the box below is checked, the undersigned confirms that
this Security is not being transferred to an “affiliate” of the Company (an “Affiliate”) as defined in Rule 144 under the
Securities Act of 1933, as amended:

 

o                                    The
transferee is an Affiliate of the Company. 
(If the Security is transferred to an Affiliate, the restrictive legend
must remain on the Security for at least two (2) years following the date of
the transfer.)

 

Unless one of the items (1) through (5) is checked, the Trustee will
refuse to register any of the Securities evidenced by this certificate in the
name of any person other than the registered Holder thereof; provided, however, that
if item (3) or (4) is checked, the Company or the Trustee may require, prior to
registering any such transfer of the Securities, in their sole discretion, such
written legal opinions, certifications and other information as the Trustee or
the Company have reasonably requested to confirm that such transfer is being
made pursuant to an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act of 1933, as amended.  If item (2) is checked, the purchaser must
complete the certification below.

 

If none of the foregoing items are checked, the Trustee or Registrar
shall not be obligated to register this Security in the name of any person
other than the Holder hereof unless and until the conditions to any such
transfer of registration set forth herein and in the Indenture shall have been
satisfied.

 

	
  Dated:

  	
   

  	
   

  	
  Signed:

  	
   

  
	
   

  	
   

  	
   

  	
  (Sign exactly as name appears on the

  other side of this Security)

  

 

	
  Signature Guarantee:

  	
   

  

 

A-15

 

TO BE COMPLETED BY PURCHASER IF
(2) ABOVE IS CHECKED

 

The undersigned represents and
warrants that it is purchasing this Security for its own account or an account
with respect to which it exercises sole investment discretion and that it and
any such account is a “qualified institutional buyer” within the meaning of
Rule 144A under the Securities Act of 1933, as amended, and is aware that the
sale to it is being made in reliance on Rule 144A and acknowledges that it has
received such information regarding the Company as the undersigned has
requested pursuant to Rule 144A and acknowledges that the transferor is relying
upon the undersigned’s foregoing representations in order to claim the
exemption from registration provided by Rule 144A.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NOTICE: To be executed by an executive officer

  

 

A-16

 

CONVERSION NOTICE

 

To convert this Security in accordance with the Indenture, check the
box: o

 

To convert only part of this Security, state
the principal amount to be converted (must be in multiples of $1,000):

 

$                   

 

If you want the stock certificate
representing the shares of Common Stock, if any, issuable upon conversion made
out in another person’s name, fill in the form below:

 

	
   

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

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

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

  
	
   

  
	
   

  
	
   

  
	
  Date:

  	
   

  	
   Signature(s):

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

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

  
	
   

  
	
   

  	
   

  
	
  Signature(s) guaranteed by:

  	
   

  
	
   

  	
  (All signatures must be guaranteed by a guarantor institution
  participating in the Securities Transfer Agents Medallion Program or in such
  other guarantee program acceptable to the Trustee.)

  
						

 

A-17

 

PURCHASE
NOTICE

Certificate
No. of Security:                  

 

If you want to
elect to have this Security purchased by the Company pursuant to Section  3.08 of the
Indenture, check the box:  o

 

If you want to
elect to have this Security purchased by the Company pursuant to Section  3.09 of the
Indenture, check the box:  o

 

If you want to
elect to have only part of this Security purchased by the Company pursuant to Sections 3.08 or  3.09 of the
Indenture, as applicable, state the principal amount to be so purchased by the
Company:

 

$                                  

(in an integral multiple of $1,000)

 

	
  Date:

  	
   

  	
   

  	
   

  	
  Signature(s):

  	
   

  
	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Signature(s) guaranteed by:

  	
   

  	
   

  
	
   

  	
   

  	
  (All signatures must be guaranteed by a
  guarantor institution participating in the Securities Transfer Agents
  Medallion Program or in such other guarantee program acceptable to the
  Trustee.)

  

 

A-18

 

SCHEDULE A

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE
GLOBAL SECURITY(a)

 

The following exchanges of a part of this Global Security for an
interest in another Global Security or for Securities in certificated form,
have been made:

 

	
  Date of Exchange

  	
   

  	
  Amount of decrease

  in Principal amount

  of this Global

  Security

  	
   

  	
  Amount of Increase

  in Principal amount

  of this Global

  Security

  	
   

  	
  Principal amount of

  this Global

  Security following

  such decrease

  or increase

  	
   

  	
  Signature or

  authorized signatory

  of Trustee or Note

  Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(a)                                  This
is included in Global Securities only.

 

A-19

EXHIBIT B-1

 

FORM OF
PRIVATE PLACEMENT LEGEND

 

THIS SECURITY AND THE 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”),
AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT IN
ACCORDANCE WITH THE FOLLOWING SENTENCE. 
BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE
ACQUIRER

 

(1)                                REPRESENTS THAT IT AND ANY ACCOUNT FOR WHICH
IT IS ACTING IS A “QUALIFIED INSTITUTIONAL BUYER” (WITHIN THE MEANING OF RULE
144A UNDER THE SECURITIES ACT) AND THAT IT EXERCISES SOLE INVESTMENT DISCRETION
WITH RESPECT TO EACH SUCH ACCOUNT, AND

 

(2)                                  AGREES THAT IT WILL NOT DIRECTLY OR
INDIRECTLY ENGAGE IN ANY HEDGING TRANSACTIONS INVOLVING THIS SECURITY OR THE
COMMON STOCK ISSUABLE UPON CONVERSION OF THIS SECURITY UNLESS IN COMPLIANCE
WITH THE SECURITIES ACT, AND

 

(3)                                AGREES FOR THE BENEFIT OF THE COMPANY THAT IT
WILL NOT OFFER, SELL, PLEDGE OR OTHERWISE TRANSFER THIS SECURITY OR ANY
BENEFICIAL INTEREST HEREIN PRIOR TO THE DATE THAT IS THE LATER OF (X) TWO YEARS
AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH
THE COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS SECURITY (OR
ANY PREDECESSOR OF THIS SECURITY) OR SUCH SHORTER PERIOD OF TIME AS PERMITTED
BY RULE 144(K) UNDER THE SECURITIES ACT OR ANY SUCCESSOR PROVISION THEREUNDER,
AND (Y) SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED BY APPLICABLE LAW, EXCEPT
ONLY

 

(A)                             TO THE COMPANY OR ANY SUBSIDIARY THEREOF,

 

(B)
                              PURSUANT TO A REGISTRATION STATEMENT WHICH
HAS BECOME EFFECTIVE UNDER THE SECURITIES ACT,

 

(C)
                              TO A QUALIFIED INSTITUTIONAL BUYER IN
COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, OR

 

(D)
                             PURSUANT TO AN EXEMPTION FROM REGISTRATION
PROVIDED BY RULE 144 UNDER THE SECURITIES ACT OR ANY OTHER AVAILABLE EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

 

PRIOR TO THE
REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH (3)(C) ABOVE, A DULY COMPLETED
AND SIGNED CERTIFICATE (THE FORM OF WHICH MAY BE OBTAINED FROM THE TRUSTEE)
MUST BE DELIVERED TO THE TRUSTEE.  PRIOR
TO THE REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH (3)(D) ABOVE, THE
COMPANY AND THE TRUSTEE RESERVE THE RIGHT TO REQUIRE THE DELIVERY OF SUCH LEGAL
OPINIONS, CERTIFICATIONS OR OTHER EVIDENCE AS MAY REASONABLY BE REQUIRED IN
ORDER TO DETERMINE THAT THE PROPOSED TRANSFER IS BEING MADE IN COMPLIANCE WITH
THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS.  NO REPRESENTATION IS MADE AS TO THE
AVAILABILITY OF ANY EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT.

 

B-1-1

 

THIS SECURITY SHALL BE
ENTITLED TO THE BENEFITS OF THAT CERTAIN REGISTRATION RIGHTS AGREEMENT, DATED NOVEMBER
2, 2004, AMONG OPTION
CARE, INC. AND THE OTHER PARTIES NAMED
THEREIN.

 

B-1-2

EXHIBIT B-2

 

FORM OF LEGEND FOR GLOBAL SECURITY

 

Any Global
Security authenticated and delivered hereunder shall bear a legend (which would
be in addition to any other legends required in the case of a Restricted
Security) in substantially the following form:

 

THIS SECURITY IS A GLOBAL
SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY OR A
SUCCESSOR DEPOSITARY.  THIS SECURITY IS
NOT EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN
THE DEPOSITARY OR ITS NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN
THE INDENTURE, AND NO TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS
SECURITY AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A
NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE
DEPOSITARY) MAY BE REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN
THE INDENTURE.

 

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

 

TRANSFERS OF THIS
GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S
NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO
TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN SECTION 2.16 OF
THE INDENTURE.

 

B-2-1

EXHIBIT C

 

Form of Notice of Transfer Pursuant to
Registration Statement

 

Option Care, Inc.

486 Half Day Road, Suite 300

Buffalo Grove, Illinois 60089

Attention: General Counsel

 

LaSalle Bank National
Association

135 South LaSalle Street, Suite
1960

Chicago, Illinois 60603

Attention: Corporate Trust
Service

 

Re:                               Option
Care, Inc. (the “Company”) 2.25% Convertible Senior
Notes due 2024 (the “Securities”)

 

Ladies and Gentlemen:

 

Please be
advised that              
has transferred $           
aggregate principal amount of the Securities and         
shares of the Common Stock, $0.01 par value per share, of the Company issued on
conversion of the Securities (“Stock”)
pursuant to an effective Shelf Registration Statement on Form S-3 (File No.
333-        ).

 

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

 

 

	
   

  	
  Very truly
  yours,

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Name)

  	
   

  

 

C-1

 

EXHIBIT D

 

Form of Opinion of Counsel in Connection with
Registration of Securities

 

LaSalle Bank National
Association

135 South LaSalle Street, Suite
1960

Chicago, Illinois 60603

Attention: Corporate Trust
Service

 

Re:                               Option
Care, Inc. (the “Company”) 2.25% Convertible Senior
Notes due 2024 (the “Securities”)

 

Ladies and Gentlemen:

 

Reference is
made to the Securities issued pursuant to a certain Indenture dated as of
November 2, 2004 by and between the Company and LaSalle Bank National
Association, as trustee (the “Trustee”).  The Company issued $75,000,000 principal
amount of Securities on November 2, 2004 [and an additional $                    
on                     
[IF THE INITIAL PURCHASERS’ OPTION IS EXERCISED]] in transactions exempt from
registration under the Securities Act of 1933, as amended (the “Securities Act”).  The
Company has filed with the Securities and Exchange Commission (the “SEC”) [a] [Amendment No. [_] to the] Registration Statement
on Form S-3 (File No. 333-           )
(the “Registration Statement”) relating to
the registration under the Securities Act of $                     
principal amount of the Securities and the shares of Common Stock of the
Company (the “Shares”) issuable upon conversion
of the Securities being registered.  The
Registration Statement was declared effective by order of the SEC dated                  .

 

We have acted
as counsel for the Company in connection with the issuance of the Securities
and the preparation and filing of the Registration Statement and are familiar
with the Securities, the Indenture, the Registration Statement, the
above-mentioned SEC order and such other documents as are necessary to render
this opinion.

 

Based on the
foregoing, it is our opinion that (1) the Registration Statement has become
effective under the Securities Act and, to our knowledge, no stop order
suspending the effectiveness of the Registration Statement has been issued, (2)
assuming that the Securities covered by the Registration Statement and the
Shares issuable upon conversion of such Securities are sold by a relevant
Holder specified in the Registration Statement in a manner specified in the
Registration Statement, such sale of the Securities and Shares issuable upon
conversion of the Securities will have been duly registered under the
Securities Act and (3) the Indenture has been duly qualified under the Trust
Indenture Act of 1939, as amended.

Yours truly,

 

D-1Exhibit 4.2

 

OPTION CARE, INC.

 

REGISTRATION RIGHTS AGREEMENT

 

 

November 2, 2004

 

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS
AGREEMENT (the “Agreement”) is made and entered into as of November 2,
2004, by and among Option Care, Inc., a Delaware corporation (the “Company”),
and UBS Securities LLC and Piper Jaffray & Co. (collectively, the “Initial
Purchasers”) pursuant to that certain Purchase Agreement, dated October 28,
2004 (the “Purchase Agreement”), among the Company and the Initial Purchasers.

 

In order to induce the Initial
Purchasers to enter into the Purchase Agreement, the Company has agreed to
provide the registration rights set forth in this Agreement.  The execution of this Agreement is a
condition to the closing under the Purchase Agreement.  The terms “herein,” “hereof,” “hereto,” “hereinafter”
and similar terms, as used in this Agreement, shall in each case refer to this
Agreement as a whole and not to any particular section, paragraph, sentence or
other subdivision of this Agreement.

 

The Company agrees with the
Initial Purchasers (i) for their benefit as Initial Purchasers and (ii) for the
benefit of the beneficial owners (including the Initial Purchasers) from time
to time of the Covered Securities (as defined herein) (each of the foregoing a “Holder”
and, together, the “Holders”), as follows:

 

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

 

(a)           “Additional Filing
Deadline Date” has the meaning set forth in Section 2(e) hereof.

 

(b)           “additional interest”
has the meaning set forth in Section 2(e) hereof.

 

(c)           “Additional Interest
Accrual Period” has the meaning set forth in Section 2(e) hereof.

 

(d)           “Additional Interest
Amount” has the meaning set forth in Section 2(e) hereof.

 

(e)           “Additional Interest
Payment Date” means each May 1 and November 1 of each year.

 

(f)            “Affiliate”
means, with respect to any specified person, an “affiliate,” as defined in Rule
144, of such person.

 

(g)           “Amendment
Effectiveness Deadline Date” has the meaning set forth in Section 2(d)
hereof.

 

(h)           “Applicable
Conversion Price” per share of Common Stock means, on a given date, one thousand
dollars ($1,000) divided by the Conversion Rate in effect as of

 

1

 

such date or, if
no Notes are then outstanding, the Conversion Rate that would be in effect as
of such date were Notes then outstanding.

 

(i)            “Business Day”
means each day on which the New York Stock Exchange is open for trading.

 

(j)            “Claim” has the
meaning set forth in Section 9(o) hereof.

 

(k)           “Common Stock”
means the shares of common stock, $0.01 par value per share, of the Company and
any other shares of capital stock as may constitute “Common Stock” for purposes
of the Indenture, including the Underlying Common Stock.

 

(l)            “Conversion Rate”
has the meaning ascribed to it in the Indenture.

 

(m)          “Covered Security”
has the meaning set forth in Section 1(rr) hereof.

 

(n)           “Effectiveness
Deadline Date” has the meaning set forth in Section 2(a) hereof.

 

(o)           “Effectiveness
Period” means a period that terminates when there are no Registrable
Securities outstanding.

 

(p)           “Event” has the
meaning set forth in Section 2(e) hereof.

 

(q)           “Event Date” has
the meaning set forth in Section 2(e) hereof.

 

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

 

(s)           “Filing Deadline
Date” has the meaning set forth in Section 2(a) hereof.

 

(t)            “Form S-1”
means Form S-1 under the Securities Act.

 

(u)           “Form S-3” means
Form S-3 under the Securities Act.

 

(v)           “Holder” has the
meaning set forth in the preamble hereto.

 

(w)          “Holder Information”
has the meaning set forth in Section 6(b) hereof.

 

(x)            “Indemnified Party”
has the meaning set forth in Section 6(c) hereof.

 

(y)           “Indemnifying Party”
has the meaning set forth in Section 6(c) hereof.

 

(z)            “Indenture”
means the Indenture, dated as of November 2, 2004, between the Company and
the Trustee, pursuant to which the Notes are being issued.

 

 

2

 

(aa)         “Initial Purchasers”
has the meaning set forth in the preamble hereto.

 

(bb)         “Initial Shelf
Registration Statement” has the meaning set forth in Section 2(a)
hereof.

 

(cc)         “Issue Date” means
November 2, 2004.

 

(dd)         “Managing Underwriters”
has the meaning set forth in Section 8(a) hereof.

 

(ee)         “Material Event”
has the meaning set forth in Section 3(i) hereof.

 

(ff)           “NASD Rules” has
the meaning set forth in Section 3(s) hereof.

 

(gg)         “Notes” means the 2.25%
Convertible Senior Notes due 2024 of the Company to be purchased pursuant to
the Purchase Agreement.

 

(hh)         “Notice and
Questionnaire” means a written questionnaire containing substantially the
information called for by the Selling Securityholder Notice and Questionnaire
attached as Annex A to the Offering Memorandum of the Company (the “Offering
Memorandum”), dated October 28, 2004, relating to the Notes.

 

(ii)           “Notice Holder”
means, on a given date, any Holder that has delivered a fully completed Notice
and Questionnaire to the Company, and has provided the Company with any other
information reasonably theretofore requested by the Company and necessary in
order to include such Holder in a Shelf Registration Statement in accordance
herewith, on or prior to such date, provided not all of such Holder’s
Registrable Securities that have been registered for resale pursuant to a
Notice and Questionnaire have been sold in accordance with a Shelf Registration
Statement.

 

(jj)           “Option Purchase
Date” has the meaning ascribed to it in the Indenture.

 

(kk)         “Proceeding” has
the meaning set forth in Section 6(c) hereof.

 

(ll)           “Prospectus”
means the prospectus included in any Shelf Registration Statement (including,
without limitation, a prospectus that discloses information previously omitted
from a prospectus filed as part of an effective registration statement in
reliance upon Rule 415 under the Securities Act), as amended or supplemented by
any amendment or prospectus supplement, including post-effective amendments,
and all materials incorporated by reference or deemed to be incorporated by
reference in such Prospectus.

 

(mm)       “Purchase Agreement”
has the meaning set forth in the preamble hereof.

 

(nn)         “Record Date”
means, (i) April 15, with respect to an Additional Interest Payment Date
that occurs on May 1 and (ii) October 15, with respect to an Additional
Interest Payment Date that occurs on November 1.

 

3

 

(oo)         “Record Holder” means,
with respect to an Additional Interest Payment Date relating to a Registrable
Security for which any Additional Interest Amount has accrued, a Notice Holder
that was the holder of record of such Registrable Security at the close of
business on the Record Date relating to such Additional Interest Payment Date.

 

(pp)         “Redemption” has
the meaning ascribed to it in the Indenture.

 

(qq)         “Redemption Date”
has the meaning ascribed to it in the Indenture.

 

(rr)           “Registrable
Securities” means the Notes, until such Notes have been converted into the
Underlying Common Stock, and, at all times, the Underlying Common Stock and any
securities into or for which such Underlying Common Stock has been converted or
exchanged, and any security issued with respect thereto upon any stock
dividend, split or similar event (each of the foregoing, a “Covered Security”)
until, in the case of any such security, the earliest of:

 

(i)            the date on which such
security has been effectively registered under the Securities Act and disposed
of in accordance with the Registration Statement relating thereto;

 

(ii)           the date on which such
security may be resold without restriction pursuant to Rule 144(k) or any
successor provision thereto; or

 

(iii)          the date on which such
security has been sold pursuant to Rule 144 or any successor provision thereto.

 

(ss)         “Registration Expenses”
has the meaning set forth in Section 5 hereof.

 

(tt)           “Registration
Statement” means any registration statement, under the Securities Act, of
the Company that covers any of the Registrable Securities pursuant to this
Agreement, including the Prospectus, amendments and supplements to such
registration statement, including post-effective amendments, all exhibits and
all materials incorporated by reference or deemed to be incorporated by
reference in such registration statement, Prospectus, amendment or supplement.

 

(uu)         “Repurchase at Holder’s
Option” has the meaning ascribed to it in the Indenture.

 

(vv)         “Repurchase Date”
has the meaning ascribed to it in the Indenture.

 

(ww)       “Repurchase Upon
Repurchase Event” has the meaning ascribed to it in the Indenture.

 

(xx)          “Rule 144” means
Rule 144 under the Securities Act, as such Rule may be amended from time to
time, or any similar rule or regulation hereafter adopted by the

 

4

 

SEC.

 

(yy)         “Rule 144A” means
Rule 144A under the Securities Act, as such Rule may be amended from time to
time, or any similar rule or regulation hereafter adopted by the SEC.

 

(zz)          “SEC” means the
Securities and Exchange Commission.

 

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

 

(bbb)      “Shelf Registration
Statement” means the Initial Shelf Registration Statement and any
Subsequent Shelf Registration Statement.

 

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

 

(ddd)      “Subsequent Shelf
Registration Statement Effectiveness Deadline Date” has the meaning set
forth in Section 2(d) hereof.

 

(eee)       “Suspension Notice”
has the meaning set forth in Section 3(i) hereof.

 

(fff)         “Suspension Period”
has the meaning set forth in Section 3(i) hereof.

 

(ggg)      “TIA” means the Trust
Indenture Act of 1939, as amended.

 

(hhh)      “Trustee” means LaSalle
Bank National Association, the trustee under the Indenture.

 

(iii)          “Underlying Common
Stock” means the Common Stock issuable upon conversion of the Notes.

 

2.             Shelf Registration.

 

(a)           The Company shall
prepare and file, or cause to be prepared and filed, with the SEC, as soon as
practicable but in any event by the date (the “Filing Deadline Date”)
that is ninety (90) days after the Issue Date, a Registration Statement (the “Initial
Shelf Registration Statement”) for an offering to be made on a delayed or
continuous basis pursuant to Rule 415 under the Securities Act registering the
resale from time to time of all Registrable Securities and naming therein all
Holders entitled, pursuant hereto, to be named as a selling security holder in
such Initial Shelf Registration Statement. 
The Initial Shelf Registration Statement shall be on Form S-1 or Form
S-3 or another appropriate form and shall provide for the registration of such
Registrable Securities for resale by such Holders in accordance with any
reasonable method of distribution that is elected by the Holders and described
in the Notice and Questionnaire.  The
Company shall use its reasonable best efforts to (i) cause the Initial Shelf
Registration Statement to

 

5

 

become effective
under the Securities Act as promptly as practicable but in any event by the
date (the “Effectiveness Deadline Date”) that is one hundred eighty (180)
days after the Issue Date and (ii) except as provided herein, keep the Initial
Shelf Registration Statement (or any Subsequent Shelf Registration Statement)
continuously effective under the Securities Act until the expiration of the
Effectiveness Period.  At the time the
Initial Shelf Registration Statement becomes effective under the Securities
Act, each Holder that became a Notice Holder on or before the fifth (5th)
Business Day before the date of such effectiveness shall be named as a selling
securityholder in the Initial Shelf Registration Statement and the related
Prospectus in such a manner as to permit such Holder to deliver such Prospectus
to purchasers of Registrable Securities in accordance with applicable law.  The Company shall be under no obligation hereunder
to name any Holder as a selling securityholder in any Shelf Registration
Statement to the extent doing so shall be prohibited by the Securities Act, the
Exchange Act or the rules of the SEC thereunder.

 

(b)           Subject to Section 2(d)
and Section 3(i), if any Shelf Registration Statement ceases to be
effective under the Securities Act for any reason at any time during the
Effectiveness Period, the Company shall use its reasonable best efforts to
promptly cause such Shelf Registration Statement to become effective under the
Securities Act (including obtaining the prompt withdrawal of any order
suspending the effectiveness of such Shelf Registration Statement), and in any
event shall, within fifteen (15) days of such cessation of effectiveness, (i)
amend such Shelf Registration Statement in a manner reasonably expected to
obtain the withdrawal of any order suspending the effectiveness of such Shelf
Registration Statement or (ii) file an additional Registration Statement (a “Subsequent
Shelf Registration Statement”) for an offering to be made on a delayed or
continuous basis pursuant to Rule 415 of the Securities Act registering the
resale from time to time by Notice Holders thereof, as of the time of such
filing, of all securities that are Registrable Securities as of the time of
such filing.  Subject to Section 2(d)
and Section 3(i), if a Subsequent Shelf Registration Statement is filed,
the Company shall use its reasonable best efforts to (A) cause such Subsequent
Shelf Registration Statement to become effective under the Securities Act as
promptly as practicable after such filing, but in no event later than the
Subsequent Shelf Registration Statement Effectiveness Deadline Date and (B) keep
such Subsequent Shelf Registration Statement (or another Subsequent Shelf
Registration Statement) continuously effective until the end of the
Effectiveness Period.  Any such
Subsequent Shelf Registration Statement shall be on Form S-1 or Form S-3 or
another appropriate form and shall provide for the registration of such Registrable
Securities for resale by such Holders in accordance with any reasonable method
of distribution elected by the Holders.

 

(c)           The Company shall
supplement and amend any Shelf Registration Statement if required by the rules,
regulations or instructions applicable to the registration form used by the
Company for such Shelf Registration Statement, if required by the Securities
Act or as reasonably requested by the Initial Purchasers or by the Trustee on
behalf of the Holders of the Registrable Securities covered by such Shelf
Registration Statement.

 

6

 

(d)

 

(i)            Each Holder of
Registrable Securities agrees that, if such Holder wishes to sell Registrable
Securities pursuant to a Shelf Registration Statement and related Prospectus,
it will do so only in accordance with this Section 2(d) and Section 3(i).  Each Holder of Registrable Securities wishing
to sell Registrable Securities pursuant to a Shelf Registration Statement and
related Prospectus agrees to deliver a completed and executed Notice and
Questionnaire to the Company, and to provide the Company with any other
information reasonably theretofore requested by the Company and necessary in
order to include such Holder in a Shelf Registration Statement in accordance
herewith, prior to any attempted or actual distribution of Registrable
Securities under a Shelf Registration Statement.  If a Holder becomes a Notice Holder after the
fifth (5th) Business Day before the date the Initial Shelf Registration Statement
becomes effective under the Securities Act, the Company shall, as promptly as reasonably
practicable after the date such Holder became a Notice Holder, and in any
event, subject to clause (B) below, within the later of (x) thirty (30) calendar
days after such date or (y) five (5) Business Days after the expiration of any
Suspension Period that either (I) is in effect when such Holder became a Notice
Holder or (II) is put into effect within thirty (30) calendar days after the
date such Holder became a Notice Holder,

 

(A)          if required by
applicable law, file with the SEC a supplement to the related Prospectus or a
post-effective amendment to the Shelf Registration Statement or file a
Subsequent Shelf Registration Statement and any necessary supplement or amendment
to any document incorporated therein by reference and file any other required
document with the SEC so that such Notice Holder is named as a selling
securityholder in a Shelf Registration Statement and the related Prospectus in
such a manner as to permit such Notice Holder to deliver a Prospectus to
purchasers of the Registrable Securities in accordance with applicable law and
with the plan of distribution set forth in the Notice and Questionnaire; provided,
however, that, if a post-effective amendment or a Subsequent Shelf
Registration Statement is required by the rules and regulations of the SEC in
order to permit resales by such Notice Holder, the Company shall not be
required to file more than one (1) post-effective amendment or Subsequent Shelf
Registration Statement for such purpose in any calendar quarter;

 

(B)           if the Company shall
have filed a post-effective amendment to the Shelf Registration Statement or
filed a Subsequent Shelf Registration Statement, the Company shall use its reasonable
best efforts to cause such post-effective amendment or Subsequent Shelf
Registration Statement, as the case may be, to become effective under the
Securities Act as promptly as reasonably practicable, but in any event, subject
to Section 3(i), by the date (the “Amendment Effectiveness Deadline
Date,” in the case of a post-effective amendment, and the “Subsequent
Shelf

 

7

 

Registration
Statement Effectiveness Deadline Date,” in the case of a
Subsequent Shelf Registration Statement) that is sixty (60) days after the date
such post-effective amendment or Subsequent Shelf Registration Statement, as
the case may be, is required by this Section 2(d) to be filed with the
SEC;

 

(C)           the Company shall
provide such Notice Holder, upon the request of such Holder, a reasonable
number of copies of any documents filed pursuant to clause (A) above;

 

(D)          the Company shall notify
such Notice Holder as promptly as practicable after the effectiveness under the
Securities Act of any post-effective amendment or Subsequent Shelf Registration
Statement filed pursuant to clause (A) above; and

 

(E)           if such Holder became a
Notice Holder during a Suspension Period, or a Suspension Period is put into
effect within thirty (30) calendar days after the date such Holder became a
Notice Holder, the Company shall so inform such Notice Holder and shall take
the actions set forth in clauses (A), (B), (C) and (D) above within the time
period specified in this Section 2(d)(i) in accordance with Section 3(i).

 

(ii)           Notwithstanding
anything contained herein to the contrary, the Company shall be under no
obligation to name any Holder that is not a Notice Holder as a selling
securityholder in any Shelf Registration Statement or related Prospectus; provided,
however, that any Holder that becomes a Notice Holder (regardless of
when such Holder became a Notice Holder) shall be named as a selling
securityholder in a Shelf Registration Statement or related Prospectus in
accordance with the requirements of this Section 2(d) or Section 2(a),
as applicable.

 

(e)           The parties hereto
agree that the Holders of Registrable Securities will suffer damages, and that
it would not be feasible to ascertain the extent of such damages with
precision, if

 

(i)            the Initial Shelf
Registration Statement has not been filed with the SEC on or prior to the
Filing Deadline Date;

 

(ii)           the Initial Shelf
Registration Statement has not become effective under the Securities Act on or
prior to the Effectiveness Deadline Date;

 

(iii)          either a supplement to a
Prospectus, a post-effective amendment or a Subsequent Shelf Registration
Statement is required pursuant hereto to be filed with the SEC and fails to be
filed with the SEC within the prescribed period and in the manner set forth in Section 2(d)
(the date such filing is required to be made being an “Additional Filing
Deadline Date”) or, in the case of a post-effective

 

8

 

amendment or a
Subsequent Shelf Registration Statement, such post-effective amendment or
Subsequent Registration Statement does not become effective under the
Securities Act by the Amendment Effectiveness Deadline Date or the Subsequent
Shelf Registration Statement Effectiveness Deadline Date, as the case may be;

 

(iv)          the Initial Shelf
Registration Statement or any Subsequent Registration Statement is filed with
the SEC and becomes effective under the Securities Act but shall thereafter
cease to be effective (without being succeeded immediately by a new
Registration Statement that is filed and immediately becomes effective under
the Securities Act) or usable for the offer and sale of Registrable Securities
in the manner contemplated by this Agreement for a period of time (including
any Suspension Period) which shall exceed forty five (45) days in the aggregate
in any three (3) month period or ninety (90) days in the aggregate in any
twelve (12) month period; or

 

(v)           any Registration
Statement or amendment thereto, at the time it becomes effective under the
Securities Act, or any Prospectus relating thereto, at the time it is filed
with the SEC or, if later, at the time the Registration Statement to which such
Prospectus relates becomes effective under the Securities Act, shall fail to
name each Holder as a selling securityholder in such a manner as to permit such
Holder to sell its Registrable Securities pursuant to such Registration
Statement and Prospectus in accordance with applicable law, which Holder was
entitled, pursuant to the terms of this Agreement, to be so named (it being
understood that, without limitation, naming such Holder in a manner that
permits such Holder to sell only a portion of such Holder’s Registrable
Securities referenced in such Holder’s Notice and Questionnaire shall be deemed,
to the extent of the remaining portion of such Holder’s Registrable Securities
referenced in such Holder’s Notice and Questionnaire, to be an “Event” (as
defined below) for purposes of this clause (v)).

 

Each of the events of a type
described in any of the foregoing clauses (i) through (v) are individually
referred to herein as an “Event,” and

 

(V)           the
Filing Deadline Date, in the case of clause (i) above,

 

(W)         the
Effectiveness Deadline Date, in the case of clause (ii) above,

 

(X)          the
Additional Filing Deadline Date, the Amendment Effectiveness Deadline Date or
the Subsequent Shelf Registration Statement Effectiveness Deadline Date, as the
case may be, in the case of clause (iii) above,

 

(Y)           the
date on which the duration of the ineffectiveness or unusability of the Shelf
Registration Statement exceeds the number of days permitted by clause (iv)
above, in the case of clause (iv) above, and

 

9

 

(Z)           the
date the applicable Registration Statement or amendment thereto shall become
effective under the Securities Act, or the date the applicable Prospectus is
filed with the SEC or, if later, the time the Registration Statement to which
such Prospectus relates becomes effective under the Securities Act, as the case
may be, in the case of clause (v) above,

 

are each herein referred to as
an “Event Date.”  Events shall be
deemed to continue until the following dates with respect to the respective
types of Events:

 

(A)          the
date the Initial Shelf Registration Statement is filed with the SEC, in the
case of an Event of the type described in clause (i) above;

 

(B)           the
date the Initial Shelf Registration Statement becomes effective under the
Securities Act, in the case of an Event of the type described in clause (ii)
above;

 

(C)           the
date a supplement to a Prospectus, a post-effective amendment or a Subsequent
Shelf Registration Statement, whichever is required, is filed with the SEC (in
the case of a supplement) or becomes effective under the Securities Act (in the
case of a post-effective amendment or a Subsequent Shelf Registration
Statement), in the case of an Event of the type described in clause (iii)
above;

 

(D)          the
date the Initial Shelf Registration Statement or the Subsequent Shelf
Registration Statement, as the case may be, becomes effective and usable again,
or the date another Subsequent Shelf Registration Statement is filed with the
SEC pursuant to Section 2(b) and becomes effective, in the case of an
Event of the type described in clause (iv) above; or

 

(E)           the
date a supplement to the Prospectus is filed with the SEC, or the date a
post-effective amendment to the Registration Statement becomes effective under
the Securities Act, or the date a Subsequent Shelf Registration Statement
becomes effective under the Securities Act, which supplement, post-effective
amendment or Subsequent Shelf Registration Statement, as the case may be, names
as selling securityholders, in such a manner as to permit them to sell their
Registrable Securities pursuant to the Registration Statement and Prospectus
supplement in accordance with applicable law, all Holders entitled as herein
provided to be so named, in the case of an Event of the type described in
clause (v) above.

 

Accordingly, commencing on (and
including) any Event Date and ending on (but excluding) the next date on which
there are no Events that have occurred and are continuing (an “Additional
Interest Accrual Period”), the Company agrees to pay, as additional
interest (“additional interest”) and not as a penalty, an amount (the “Additional
Interest Amount”) at the rate described below, payable periodically on each
Additional Interest Payment Date to Record Holders, to the extent of, for each
such Additional Interest Payment Date, the unpaid Additional Interest Amount that
has accrued to (but

 

10

 

excluding) such Additional
Interest Payment Date (or, if the Additional Interest Accrual Period shall have
ended prior to such Additional Interest Payment Date, the day immediately after
the last day of such Additional Interest Accrual Period); provided, however,
that any unpaid Additional Interest Amount that has accrued with respect to any
Note, or portion thereof, called for Redemption on a Redemption Date, or
purchased by the Company pursuant to a Repurchase at Holder’s Option or
Repurchase Upon Repurchase Event on an Option Purchase Date or Repurchase Date,
as the case may be, that is after the close of business on the Record Date
relating to such Additional Interest Payment Date and before such Additional
Interest Payment Date, shall, in each case, be instead paid, on such Redemption
Date, Option Purchase Date or Repurchase Date, as the case may be, to the
Holder who submitted such Note or portion thereof for Redemption, Repurchase at
Holder’s Option or Repurchase Upon Repurchase Event, as the case may be.

 

The Additional Interest Amount
shall accrue at a rate per annum equal to one quarter of one percent (0.25%)
for the ninety (90) day period beginning on, and including, Event Date and
thereafter at a rate per annum equal to one half of one half of one percent
(0.50%) of the aggregate principal amount of the Notes of which such Record
Holders were holders of record at the close of business on the applicable
Record Date; provided, however, that:

 

(I)            unless
there shall be a default in the payment of any Additional Interest Amount, no Additional
Interest Amounts shall accrue as to any Note from and after the earlier of (x)
the date such Note is no longer a Registrable Security, (y) the date, and to
the extent, such Note is converted into cash and, if applicable, shares of
Common Stock in accordance with the Indenture and (z) the expiration of the
Effectiveness Period;

 

(II)           only
those Holders (or their subsequent transferees) failing to be named as selling
securityholders in the manner prescribed in Section 2(e)(v) above shall be
entitled to receive any Additional Interest Amounts that have accrued solely
with respect to an Event of the type described in Section 2(e)(v) above
(it being understood that this clause (II) shall not impair any right of any
Holder to receive Additional Interest Amounts that have accrued with respect to
an Event other than an Event of the type described in Section 2(e)(v)
above);

 

(III)         only
those Holders (or their subsequent transferees) whose delivery of a Notice and
Questionnaire gave rise to the obligation of the Company, pursuant to Section 2(d)(i),
to file and, if applicable, make effective under the Securities Act the
supplement, post-effective amendment or Subsequent Shelf Registration Statement
referred to in Section 2(e)(iii) above shall be entitled to receive any
Additional Interest Amounts that have accrued solely with respect to an Event
of the type described in Section 2(e)(iii) above (it being understood that
this clause (III) shall not impair any right of any Holder to receive
Additional Interest Amounts that have accrued with respect to an Event other
than an Event of the type described in Section 2(e)(iii) above); and

 

11

 

(IV)         if
a Note ceases to be outstanding during an Additional Interest Accrual Period
for which an Additional Interest Amount would be payable with respect to such
Note, then the Additional Interest Amount payable hereunder with respect to
such Note shall be prorated on the basis of the number of full days such Note
is outstanding during such Additional Interest Amount.

 

The rate of accrual of the Additional
Interest Amount with respect to any period shall not exceed the rate provided
for in this Section 2(e) notwithstanding the occurrence of multiple
concurrent Events.  Following the cure of
all Events requiring the payment by the Company of Additional Interest Amounts
to the Holders pursuant to this Section, the accrual of Additional Interest
Amounts shall cease (without in any way limiting the effect of any subsequent
Event requiring the payment of Additional Interest Amounts by the
Company).  All installments of Additional
Interest shall be paid by wire transfer of immediately available funds to the
account specified by the Notice Holder or, if no such account is specified, by
mailing a check to such Notice Holder’s address shown in the register of the
registrar for the Notes or for the Underlying Common Stock, as the case may be.

 

All of the Company’s
obligations set forth in this Section 2(e) that are outstanding with
respect to any Registrable Security at the time such Registrable Security
ceases to be a Registrable Security shall survive until such time as all such
obligations with respect to such security have been satisfied in full
(notwithstanding termination of this Agreement pursuant to Section 9(n)).

 

If any Additional Interest
Amounts are not paid when due, then, to the extent permitted by law, such
overdue Additional Interest Amounts, if any, shall bear interest, compounded
semi-annually, until paid at the rate of interest payable with respect to
overdue amounts on the Notes pursuant to Section 2.12 of the Indenture.

 

(f)            The Trustee shall be
entitled, on behalf of Holders, to seek any available remedy for the enforcement
of this Agreement, including for the payment of any Additional Interest Amount.

 

3.             Registration Procedures.  In
connection with the registration obligations of the Company under Section 2
hereof, the Company shall:

 

(a)           Prepare and file with
the SEC a Shelf Registration Statement or Shelf Registration Statements on Form
S-1 or Form S-3 or any other appropriate form under the Securities Act
available for the sale of the Registrable Securities by the Holders thereof in
accordance with the intended method or methods of distribution thereof, and use
its reasonable best efforts to cause each such Shelf Registration Statement to
become effective under the Securities Act and remain effective under the
Securities Act as provided herein; provided, that, before filing any
Shelf Registration Statement or Prospectus or any amendments or supplements
thereto with the SEC, the Company shall furnish to the Initial Purchasers and
counsel for the Holders and for the Initial Purchasers

 

12

 

(or, if
applicable, Designated Counsel for the Holders) copies of all such documents
proposed to be filed and reflect in each such document when so filed with the
SEC such comments as the Initial Purchasers or such counsel reasonably shall
propose within three (3) Business Days of the delivery of such copies to the
Initial Purchasers and such counsel.

 

(b)           Use its reasonable best
efforts to prepare and file with the SEC such amendments and post-effective
amendments to each Shelf Registration Statement as may be necessary to keep
such Shelf Registration Statement or Subsequent Shelf Registration Statement
continuously effective until the expiration of the Effectiveness Period, as
contemplated herein; cause the related Prospectus to be supplemented by any
required Prospectus supplement and, as so supplemented, to be filed with the
SEC pursuant to Rule 424 (or any similar provisions then in force) under the
Securities Act, as contemplated herein; and comply with the provisions of the
Securities Act applicable to it with respect to the disposition of all
securities covered by each Shelf Registration Statement during the
Effectiveness Period in accordance with the intended methods of disposition by
the sellers thereof as contemplated by the Offering Memorandum.

 

(c)           As promptly as
practicable, give notice to the Notice Holders, the Initial Purchasers and
counsel for the Initial Purchasers (and, if applicable, Designated Counsel for the
Holders):

 

(i)            when any Prospectus,
Prospectus supplement, Shelf Registration Statement or post-effective amendment
to a Shelf Registration Statement has been filed with the SEC and, with respect
to a Shelf Registration Statement or any post-effective amendment, when the
same has become effective under the Securities Act,

 

(ii)           of any request,
following the effectiveness of a Shelf Registration Statement under the
Securities Act, by the SEC or any other governmental authority for amendments
or supplements to such Shelf Registration Statement or the related Prospectus
or for additional information,

 

(iii)          of the issuance by the
SEC or any other governmental authority of any stop order suspending the
effectiveness of any Shelf Registration Statement or the initiation or
threatening of any proceedings for that purpose,

 

(iv)          of the receipt by the
Company or its legal counsel of any notification with respect to the suspension
of the qualification or exemption from qualification of any of the Registrable
Securities for sale in any jurisdiction or the initiation or threatening of any
proceeding for such purpose, and

 

(v)           of the determination by
the Company that a post-effective amendment to a Shelf Registration Statement
or a Subsequent Shelf Registration Statement will be filed with the SEC, which
notice may, at the discretion of the Company (or as required pursuant to Section 3(i)),
state that it constitutes a

 

13

 

Suspension Notice,
in which event the provisions of Section 3(i) shall apply.

 

(d)           Use its reasonable best
efforts to (i) prevent the issuance of, and, if issued, to obtain the
withdrawal of, any order suspending the effectiveness of a Shelf Registration
Statement and (ii) obtain the lifting of any suspension of the qualification
(or exemption from qualification) of any of the Registrable Securities for sale
in any jurisdiction in which they have been qualified for sale, in either case
at the earliest possible moment, and provide prompt notice to each Notice
Holder and the Initial Purchasers, and counsel for the Holders and for the
Initial Purchasers (or, if applicable, separate counsel for the Holders), of
the withdrawal or lifting of any such order or suspension.

 

(e)           If requested by the
Initial Purchasers or any Notice Holder, as promptly as practicable incorporate
in a Prospectus supplement or a post-effective amendment to a Shelf
Registration Statement such information as the Initial Purchasers, such Notice
Holder or counsel for the Initial Purchasers (or, if applicable, Designated Counsel
for the Holders) shall reasonably determine to be required to be included
therein by applicable law and make any required filings of such Prospectus
supplement or such post-effective amendment; provided, however,
that the Company shall not be required to take any actions under this Section 3(e)
that, in the opinion of counsel for the Company, are not in compliance with
applicable law.

 

(f)            As promptly as
practicable, furnish, upon request, to each Notice Holder, counsel for the
Initial Purchasers (and, if applicable, Designated Counsel for the Holders) and
the Initial Purchasers, without charge, at least one (1) conformed copy of each
Shelf Registration Statement and each amendment thereto, including financial
statements but excluding schedules, all documents incorporated or deemed to be
incorporated therein by reference and all exhibits (unless requested in writing
to the Company by such Notice Holder, such counsel or the Initial Purchasers).

 

(g)           During the
Effectiveness Period, deliver to each Notice Holder, counsel for the Initial
Purchasers (and, if applicable, Designated Counsel for the Holders) and the
Initial Purchasers, in connection with any sale of Registrable Securities
pursuant to a Shelf Registration Statement, without charge, as many copies of
the Prospectus or Prospectuses relating to such Registrable Securities
(including each preliminary prospectus) and any amendment or supplement thereto
as such Notice Holder or the Initial Purchasers may reasonably request; and the
Company hereby consents (except during such periods that a Suspension Notice is
outstanding and has not been revoked) to the use of such Prospectus and each
amendment or supplement thereto by each Notice Holder, in connection with any
offering and sale of the Registrable Securities covered by such Prospectus or
any amendment or supplement thereto in the manner set forth therein.

 

(h)           Prior to any public
offering of the Registrable Securities pursuant to a Shelf Registration
Statement, use its reasonable best efforts to register or qualify or cooperate
with the Notice Holders in connection with the registration or qualification
(or exemption from such registration or qualification) of such Registrable
Securities for offer

 

14

 

and sale under the
securities or Blue Sky laws of such jurisdictions within the United States as
any Notice Holder reasonably requests in writing (which request may be included
in the Notice and Questionnaire); use its reasonable best efforts to keep each
such registration or qualification (or exemption therefrom) effective during
the Effectiveness Period in connection with such Notice Holder’s offer and sale
of Registrable Securities pursuant to such registration or qualification (or
exemption therefrom) and do any and all other acts or things reasonably
necessary or advisable to enable the disposition in such U.S. jurisdictions of
such Registrable Securities in the manner set forth in the relevant Shelf
Registration Statement and the related Prospectus; provided, however,
that the Company will not be required to (i) qualify generally to do business
in any jurisdiction where it is not then so qualified or (ii) take any action
that would subject it to general service of process in suits in any
jurisdiction where it is not now so subject, except as provided in Section 9(o);
or (iii) take any action that would subject it to taxation in any jurisdiction
where it is not then so subject.

 

(i)            Upon: (A) the
occurrence or existence of any pending corporate development that, in the
reasonable discretion of the Company, makes it appropriate to suspend the
availability of any Shelf Registration Statement and the related Prospectus;
(B) the issuance by the SEC of a stop order suspending the effectiveness of any
Shelf Registration Statement or the initiation of proceedings with respect to
any Shelf Registration Statement under Section 8(d) or 8(e) of the
Securities Act; or (C) the occurrence of any event or the existence of any fact
as a result of which any Shelf Registration Statement shall contain any untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein not misleading, or
any Prospectus shall contain any untrue statement of a material fact or omit to
state any material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading (each
event described in the foregoing clauses (A), (B) or (C), a “Material Event”),

 

(i)            in the case of clause
(A) or (C) above, subject to the next sentence, as promptly as practicable,
prepare and file, if necessary pursuant to applicable law, a post-effective
amendment to such Shelf Registration Statement or a supplement to such
Prospectus or any document incorporated therein by reference or file any other
required document that would be incorporated by reference into such Shelf
Registration Statement and Prospectus so that such Shelf Registration Statement
does not contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein not misleading, and so that such Prospectus does not contain any untrue
statement of a material fact or omit to state any material fact necessary in
order to make the statements therein, in the light of the circumstances under
which they were made, not misleading, as thereafter delivered to the purchasers
of the Registrable Securities being sold thereunder, and, in the case of a
post-effective amendment to a Shelf Registration Statement, subject to Section 2(d)(i)(B)
and the provisions below in this Section 3(i), use its reasonable best
efforts to cause it to become effective under the Securities Act as promptly as
practicable, and

 

15

 

(ii)           give notice to the
Notice Holders and counsel for the Initial Purchasers (and, if applicable, Designated
Counsel for the Holders) and to the Initial Purchasers that the availability of
the Shelf Registration Statement is suspended (a “Suspension Notice”) (and,
upon receipt of any Suspension Notice, each Notice Holder agrees not to sell
any Registrable Securities pursuant to such Shelf Registration Statement until
such Notice Holder’s receipt of copies of the supplemented or amended
Prospectus provided for in clause (i) above or until such Notice Holder is
advised in writing by the Company that the Prospectus may be used).

 

The Company will use its reasonable
best efforts to ensure that the use of the Prospectus may be resumed (x) in the
case of clause (B) above, as promptly as is practicable, (y) in the case of
clause (C) above, as soon as, in the reasonable judgment of the Company, the
Shelf Registration Statement does not contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein not misleading and the Prospectus
does not contain any untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading, and (z) in the
case of clause (A) above, as soon as, in the reasonable discretion of the
Company, such suspension is no longer appropriate.  Notwithstanding anything herein to the
contrary, the period during which the availability of the Shelf Registration
Statement and any Prospectus may be suspended (the “Suspension Period”)
without the Company incurring any obligation to pay additional interest
pursuant to Section 2(e) shall not exceed forty five (45) days in the
aggregate in any three (3) month period or ninety (90) days in the aggregate in
any twelve (12) month period (provided, however, that, if a
Suspension Period is put into effect in accordance herewith after the Company
shall have filed, pursuant to Section 2(d)(i)(B), a Subsequent Shelf
Registration Statement or a post-effective amendment to the Shelf Registration
Statement but before the time such Subsequent Shelf Registration Statement or
post-effective amendment shall have become effective under the Securities Act,
then the period of time by which the Company is required, pursuant to Section 2(d)(i)(B),
to cause such Subsequent Shelf Registration Statement or post-effective
amendment to become effective under the Securities Act shall be extended by the
duration of such Suspension Period, and no additional interest shall be payable
hereunder solely as a result of such extension).

 

(j)            If reasonably
requested in writing solely in connection with the disposition of Registrable
Securities as contemplated herein, make reasonably available for inspection
during normal business hours by representatives for the Notice Holders and any
underwriters participating in any disposition pursuant to any Shelf Registration
Statement and any attorneys and accountants retained by such Notice Holders or
any such underwriters, subject to each such party executing a confidentiality
agreement in the form reasonably approved by the Company, all relevant
financial and other records and pertinent corporate documents and properties of
the Company, and cause the appropriate executive officers and directors of the
Company and its subsidiaries to make available for inspection during normal
business hours all relevant information reasonably requested by such
representatives for the Notice Holders, or any such underwriters,
broker-dealers,

 

16

 

attorneys or
accountants in connection with such disposition, in each case as is customary
for similar “due diligence” examinations; provided, however, that
the foregoing inspection and information gathering shall, to the greatest
extent possible, be coordinated on behalf of all the Notice Holders and the
other parties entitled thereto by the Designated Counsel for the Holders in
connection with Shelf Registration Statements.

 

(k)           Comply
with all applicable rules and regulations of the SEC; and make generally
available to its securityholders earnings statements (which need not be
audited) satisfying the provisions of Section 11(a) of the Securities Act
and Rule 158 thereunder (or any similar rule promulgated under the Securities
Act), which statements shall cover a
period of twelve (12) months commencing on the first day of the first
fiscal quarter of the Company commencing after the effective date of each Shelf
Registration Statement (within the
meaning of Rule 158(c) under the Securities Act), and which statements shall be
so made generally available to the Company’s securityholders no later
than forty (40) days after the end of the applicable twelve (12) month period if
such period ends on or after December 15, 2004 and before December 15,
2005 (or thirty five (35) days after the end of the applicable twelve (12)
month period if such period ends on or after December 15, 2005, or, if
such earnings statement is filed with the SEC on Form 10-K under the Exchange
Act, sixty (60) days after the end of the applicable twelve (12) month period).

 

(l)            Cooperate with each
Notice Holder to facilitate the timely preparation and delivery of certificates
representing Registrable Securities sold pursuant to a Shelf Registration
Statement, which certificates shall not bear any restrictive legends, and cause
such Registrable Securities to be in such denominations as are permitted by the
Indenture and registered in such names as such Notice Holder may request in
writing at least two (2) Business Days prior to any sale of such Registrable
Securities.

 

(m)          Provide a CUSIP number
for all Registrable Securities covered by a Shelf Registration Statement not
later than the effective date of the Initial Shelf Registration Statement and
provide the Trustee and the transfer agent for the Common Stock with
certificates for the Registrable Securities that are in a form eligible for
deposit with The Depository Trust Company.

 

(n)           Reasonably cooperate
and assist in any filings required to be made with the National Association of
Securities Dealers, Inc. in connection with any disposition of Registrable
Securities as contemplated hereunder.

 

(o)           Upon the filing of the
Initial Registration Statement, and upon the effectiveness under the Securities
Act of the Initial Registration Statement, announce the same, in each case by
release through a reputable national newswire service.

 

(p)           Subject to Section 8(c),
take all actions and enter into such customary agreements (including, if
requested, an underwriting agreement in customary form) as are necessary, or
reasonably requested by the Holders of a majority of the Registrable Securities
being sold, in order to expedite or facilitate disposition of such Registrable
Securities; and in such connection, whether or not an underwriting agreement is
entered

 

17

 

into and whether
or not the registration is an underwritten registration:

 

(i)            the Company shall make
such representations and warranties to the Holders of such Registrable
Securities and the underwriters, if any, in form, substance and scope as would
be customarily made by the Company to underwriters in similar offerings of
securities;

 

(ii)           the Company shall
obtain opinions of counsel of the Company and updates thereof (which counsel
and opinions (in form, scope and substance) shall be reasonably satisfactory to
the Managing Underwriters, if any, and to the counsel to the Holders of the
Registrable Securities being sold) addressed to each selling Holder and the
underwriters, if any, covering the matters that would be customarily covered in
opinions requested in sales of securities or underwritten offerings;

 

(iii)          the Company shall obtain
“comfort letters” and updates thereof from the Company’s independent certified
public accountants (and, if necessary, any other independent certified public
accountants of any subsidiary of the Company or of any business acquired by the
Company for which financial statements are, or are required to be, included in
any Shelf Registration Statement) addressed to the underwriters, if any, and
the selling Holders of Registrable Securities (to the extent consistent with
Statement on Auditing Standards No. 72 of the American Institute of Certified
Public Accounts), such letters to be in customary form and covering matters of
the type that would customarily be covered in “comfort letters” to underwriters
in connection with similar underwritten offerings;

 

(iv)          the Company shall, if an
underwriting agreement is entered into, cause any such underwriting agreement
to contain indemnification provisions and procedures substantially equivalent
to the indemnification provisions and procedures set forth in Section 6
hereof with respect to the underwriters and all other parties to be indemnified
pursuant to said Section; and

 

(v)           the Company shall deliver such documents and certificates as may be
reasonably requested and as are customarily delivered in similar offerings to
the holders of a majority of the Registrable Securities being sold and to the Managing
Underwriters, if any;

 

the above to be done at (x) the
effectiveness of any Shelf Registration Statement (and each post-effective
amendment thereto) and (y) each closing under any underwriting or similar
agreement as and to the extent required thereunder.

 

(q)           Cause the Indenture to
be qualified under the TIA not later than the effective date of the Initial
Shelf Registration Statement; and, in connection therewith, cooperate with the
Trustee to effect such changes to the Indenture as may be required for the
Indenture to be so qualified in accordance with the terms of the TIA and
execute, and

 

18

 

use its reasonable
best efforts to cause the Trustee to execute, all documents as may be required
to effect such changes, and all other forms and documents required to be filed
with the SEC to enable the Indenture to be so qualified in a timely manner.

 

(r)            Cause the Underlying
Common Stock to be listed on The Nasdaq National Market.

 

(s)           Subject to Section 8(c),
in the event that any broker-dealer registered under the Exchange Act shall
underwrite any Registrable Securities or participate as a member of an
underwriting syndicate or selling group or “participate in a public offering”
(within the meaning of the Conduct Rules (the “NASD Rules”) of the
National Association of Securities Dealers, Inc.) thereof, whether as a Holder
of such Registrable Securities or as an underwriter, a placement or sales agent
or a broker or dealer in respect thereof, or otherwise, the Company will assist
such broker-dealer in complying with the requirements of such NASD Rules,
including, without limitation, by: (i) if such NASD Rules, including NASD Rule
2720, shall so require, engaging a “qualified independent underwriter” (as
defined in NASD Rule 2720) to participate in the preparation of the Shelf
Registration Statement relating to such Registrable Securities, to exercise
usual standards of due diligence in respect thereof and, if any portion of the
offering contemplated by such Shelf Registration Statement is an underwritten
offering or is made through a placement or sales agent, to recommend the yield
or price, as the case may be, of such Registrable Securities; (ii) indemnifying
any such qualified independent underwriter to the extent of the indemnification
of underwriters provided in Section 6 hereof; and (iii) providing such
information to such broker-dealer as may be required in order for such
broker-dealer to comply with the requirements of the NASD Rules.

 

4.             Holder’s Obligations.  Each
Holder agrees, by acquisition of the Registrable Securities, that no Holder of
Registrable Securities shall be entitled to sell any of such Registrable
Securities pursuant to a Shelf Registration Statement or to receive a
Prospectus relating thereto, unless such Holder has furnished the Company with
a Notice and Questionnaire as required pursuant to Section 2(d) hereof
(including the information required to be included in such Notice and
Questionnaire), has provided the Company with any other information reasonably
theretofore requested by the Company and necessary in order to include such
Holder in a Shelf Registration Statement in accordance herewith, and has
provided the Company with the information set forth in the next sentence. Each
Notice Holder agrees promptly to furnish to the Company all information
required to be disclosed in order to make the information previously furnished
to the Company by such Notice Holder not misleading and any other information
regarding such Notice Holder and the distribution of such Registrable
Securities as the Company may from time to time reasonably request. Any sale of
any Registrable Securities by any Holder shall constitute a representation and
warranty by such Holder that the information relating to such Holder and its
plan of distribution is as set forth in the Prospectus delivered by such Holder
in connection with such disposition, that such Prospectus does not as of the
time of such sale contain any untrue statement of a material fact relating to
or provided by such Holder or its plan of distribution and that such Prospectus
does not as of the time of such sale omit to state any material fact relating
to or provided by such Holder or its plan of distribution necessary in order to
make the statements in such Prospectus, in the light of the circumstances under
which

 

19

 

they
were made, not misleading.

 

5.             Registration Expenses.  The
Company shall bear all fees and expenses incurred in connection with the
performance by the Company of its obligations under Section 2 and Section 3
of this Agreement whether or not any of the Shelf Registration Statements are
filed or declared effective under the Securities Act. Such fees and expenses (“Registration
Expenses”) shall include, without limitation, (i) all registration and
filing fees and expenses (including, without limitation, fees and expenses (x)
with respect to filings required to be made with the National Association of
Securities Dealers, Inc. and (y) of compliance with federal securities laws and
state securities or Blue Sky laws (including, without limitation, reasonable
fees and disbursements of Designated Counsel for the Holders in connection with
Blue Sky qualifications of the Registrable Securities under the laws of such U.S.
jurisdictions as the Notice Holders of a majority of the Registrable Securities
being sold pursuant to a Shelf Registration Statement may designate), (ii) all
printing expenses (including, without limitation, expenses of printing
certificates for Registrable Securities in a form eligible for deposit with The
Depository Trust Company and printing Prospectuses), (iii) all duplication and
mailing expenses relating to copies of any Shelf Registration Statement or
Prospectus delivered to any Holders hereunder, (iv) all fees and disbursements
of counsel for the Company, (v) all the reasonable fees and disbursements (which
shall not exceed $25,000 in the aggregate) of one counsel (“Designated
Counsel”) for the Holders in connection with the Shelf Registration
Statement, which Designated Counsel shall be designated in writing to the
Company by Holders of a majority of the Registrable Securities, (vi) all fees
and disbursements of the Trustee and its counsel and of the registrar and
transfer agent for the Common Stock and (vii) Securities Act liability
insurance obtained by the Company in its sole discretion. In addition, the Company
shall pay the internal expenses of the Company (including, without limitation,
all salaries and expenses of officers and employees performing legal or
accounting duties), the expense of any annual audit or quarterly review, the
fees and expenses incurred in connection with the listing by the Company of the
Registrable Securities on any securities exchange or quotation system on which
similar securities of the Company are then listed and the fees and expenses of
any person, including, without limitation, special experts, retained by the
Company.

 

6.             Indemnification,
Contribution.

 

(a)           The Company agrees to
indemnify, defend and hold harmless each Initial Purchaser, each Notice Holder,
each person (a “Controlling Person”), if any, who controls any Initial Purchaser
or Notice Holder within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act and the respective officers, directors,
partners, employees, representatives and agents of any Initial Purchaser, the Notice
Holders or any Controlling Person (each, an “Indemnified Party”), from
and against any loss, damage, expense, liability, claim or any actions in
respect thereof (including the reasonable cost of investigation) which such
Indemnified Party may incur or become subject to under the Securities Act, the
Exchange Act or otherwise, insofar as such loss, damage, expense, liability,
claim or action arises out of or is based upon any untrue statement or alleged
untrue statement of a material fact contained in any Shelf Registration
Statement or Prospectus, including any document incorporated by reference
therein, or in any amendment or supplement thereto or in any preliminary
prospectus, or

 

20

 

arises out of or
is based upon any omission or alleged omission to state a material fact
required to be stated in any Shelf Registration Statement or in any amendment
or supplement thereto or necessary to make the statements therein not
misleading, or arises out of or is based upon any omission or alleged omission
to state a material fact necessary in order to make the statements made in any
Prospectus or in any amendment or supplement thereto or in any preliminary
prospectus, in the light of the circumstances under which such statements were
made, not misleading, and the Company shall reimburse, as incurred, the
Indemnified Parties for any legal or other expenses reasonably incurred by them
in connection with investigating or defending any such loss, damage, expense,
liability, claim or action in respect thereof; provided, however,
that the Company shall not be required to provide any indemnify pursuant to
this Section 6(a) in any such case insofar as any such loss, damage,
expense, liability, claim or action arises out of or is based upon any untrue
statement or omission or alleged untrue statement or omission of a material
fact contained in, or omitted from, and in conformity with information
furnished in writing by or on behalf of an Initial Purchaser or a Holder to the
Company expressly for use in, any Shelf Registration Statement or any
Prospectus; provided  further that, with respect to any untrue
statement or omission or alleged untrue statement or omission made in any
preliminary prospectus relating to a Shelf Registration Statement, the indemnity
agreement contained in this Section 6(a) shall not inure to the benefit of
any Notice Holder from whom the person asserting any such losses, damages,
expenses, liabilities, claims or actions purchased the Registrable Securities
concerned, to the extent that a prospectus relating to such Registrable
Securities was required to be delivered by such Notice Holder under the
Securities Act in connection with such purchase and any such loss, damage,
expense, liability, claim or action of such Notice Holder results from the fact
that there was not sent or given to such person, at or prior to the written
confirmation of the sale of such Registrable Securities to such person, a copy
of the final prospectus, provided the Company had previously furnished (whether
physically or by public access through the SEC’s Electronic Data Gathering And
Retrieval (EDGAR) system) sufficient copies of such final prospectus to such
Holder in a timely manner as to reasonably permit such Holder to send or give a
copy of such final prospectus to such person at or prior to the written
confirmation of such sale; provided  further, however, that
this indemnity agreement will be in addition to any liability which the Company
may otherwise have to such Indemnified Party.

 

(b)           Each Holder, severally
and not jointly, agrees to indemnify, defend and hold harmless the Company, its
directors, officers, employees and any person who controls the Company within
the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act (each, a “Company Indemnified Party”) from and against any
loss, damage, expense, liability, claim or any actions in respect thereof
(including the reasonable cost of investigation) which such Company Indemnified
Party may incur or become subject to under the Securities Act, the Exchange Act
or otherwise, insofar as such loss, damage, expense, liability, claim or action
arises out of or is based upon any untrue statement or alleged untrue statement
of a material fact contained in, and in conformity with information (the “Holder
Information”) furnished in writing by or on behalf of such Holder to the
Company expressly for use in, any Shelf Registration Statement or Prospectus,
or arises out of or is based upon any omission or alleged

 

21

 

omission to state
a material fact in connection with such Holder Information required to be
stated in any Shelf Registration Statement or Prospectus or necessary to make
such Holder Information not misleading; and, subject to the limitation set
forth in the immediately preceding clause, each Holder shall reimburse, as
incurred, the Company for any legal or other expenses reasonably incurred by
the Company or any such controlling person in connection with investigating or
defending any loss, damage, expense, liability, claim or action in respect
thereof.  This indemnity agreement will
be in addition to any liability which such Holder may otherwise have to the
Company or any of its controlling persons. 
In no event shall the liability of any selling Holder of Registrable
Securities hereunder be greater in amount than the dollar amount of the
proceeds received by such Holder upon the sale, pursuant to the Shelf
Registration Statement, of the Registrable Securities giving rise to such
indemnification obligation.

 

(c)           If any action, suit or
proceeding (each, a “Proceeding”) is brought against any person in
respect of which indemnity may be sought pursuant to either Section 6(a)
or Section 6(b), such person (the “Indemnified Party”) shall promptly
notify the person against whom such indemnity may be sought (the “Indemnifying
Party”) in writing of the institution of such Proceeding and the
Indemnifying Party shall assume the defense of such Proceeding; provided,
however, that the omission to so notify such Indemnifying Party shall
not relieve such Indemnifying Party from any liability which it may have to
such Indemnified Party or otherwise. 
Such Indemnified Party shall have the right to employ its own counsel in
any such case, but the fees and expenses of such counsel shall be at the
expense of such Indemnified Party unless the employment of such counsel shall
have been authorized in writing by such Indemnifying Party in connection with
the defense of such Proceeding or such Indemnifying Party shall not have
employed counsel to have charge of the defense of such Proceeding within thirty
(30) days of the receipt of notice thereof or such Indemnified Party shall have
reasonably concluded upon the written advice of counsel that there may be one
or more defenses available to it that are different from, additional to or in
conflict with those available to such Indemnifying Party (in which case such
Indemnifying Party shall not have the right to direct that portion of the
defense of such Proceeding on behalf of the Indemnified Party, but such
Indemnifying Party may employ counsel and participate in the defense thereof
but the fees and expenses of such counsel shall be at the expense of such
Indemnifying Party), in any of which events such reasonable fees and expenses
shall be borne by such Indemnifying Party and paid as incurred (it being
understood, however, that such Indemnifying Party shall not be liable for the
expenses of more than one separate counsel in any one Proceeding or series of
related Proceedings together with reasonably necessary local counsel
representing the Indemnified Parties who are parties to such action).  An Indemnifying Party shall not be liable for
any settlement of such Proceeding effected without the written consent of such
Indemnifying Party, but if settled with the written consent of such
Indemnifying Party, such Indemnifying Party agrees to indemnify and hold
harmless an Indemnified Party from and against any loss or liability by reason
of such settlement.  Notwithstanding the
foregoing sentence, if at any time an Indemnified Party shall have requested an
Indemnifying Party to reimburse such Indemnified Party for fees and expenses of
counsel as contemplated by the second sentence of this paragraph, then such
Indemnifying Party agrees that it shall be liable for any settlement of any

 

22

 

Proceeding
effected without its written consent if (i) such settlement is entered into
more than sixty (60) Business Days after receipt by such Indemnifying Party of
the aforesaid request, (ii) such Indemnifying Party shall not have fully reimbursed
such Indemnified Party in accordance with such request prior to the date of
such settlement and (iii) such Indemnified Party shall have given such Indemnifying
Party at least thirty (30) days’ prior notice of its intention to settle.  No Indemnifying Party shall, without the
prior written consent of any Indemnified Party, effect any settlement of any
pending or threatened Proceeding in respect of which such Indemnified Party is
or could have been a party and indemnity could have been sought hereunder by
such Indemnified Party, unless such settlement includes an unconditional
release of such Indemnified Party from all liability on claims that are the
subject matter of such Proceeding and does not include an admission of fault or
culpability or a failure to act by or on behalf of such Indemnified Party.

 

(d)           If the indemnification
provided for in this Section 6 is unavailable to an Indemnified Party
under Section 6(a) or Section 6(b), or insufficient to hold such Indemnified Party harmless, in
respect of any losses, damages, expenses, liabilities, claims or actions
referred to therein, then each applicable Indemnifying Party, in lieu of
indemnifying such Indemnified Party, shall contribute to the amount paid or
payable by such Indemnified Party as a result of such losses, damages,
expenses, liabilities, claims or actions (i) in such proportion as is
appropriate to reflect the relative benefits received by the Company, on the
one hand, and by the Holders or the Initial Purchasers, on the other hand, from
the offering of the Registrable Securities or (ii) if the allocation provided
by clause (i) above is not permitted by applicable law, in such proportion as
is appropriate to reflect not only the relative benefits referred to in clause
(i) above but also the relative fault of the Company, on the one hand, and of
the Holders or the Initial Purchasers, on the other hand, in connection with
the statements or omissions which resulted in such losses, damages, expenses,
liabilities, claims or actions, as well as any other relevant equitable
considerations.  The relative fault of
the Company, on the one hand, and of the Holders or the Initial Purchasers, on
the other hand, shall be determined by reference to, among other things,
whether the untrue statement or alleged untrue statement of a material fact or
omission or alleged omission relates to information supplied by the Company or
by the Holders or the Initial Purchasers and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission.  The amount paid
or payable by a party as a result of the losses, damages, expenses,
liabilities, claims and actions referred to above shall be deemed to include
any reasonable legal or other fees or expenses reasonably incurred by such
party in connection with investigating or defending any Proceeding.

 

(e)           The Company, the
Holders and the Initial Purchasers agree that it would not be just and
equitable if contribution pursuant to this Section 6 were determined by
pro rata allocation or by any other method of allocation which does not take
account of the equitable considerations referred to in Section 6(d)
above.  Notwithstanding the provisions of
this Section 6, no Holder shall be required to contribute any amount in
excess of the amount by which the total price at which the Registrable
Securities giving rise to such contribution obligation and sold by such Holder
were offered to the public 

 

23

 

exceeds the amount
of any damages which it has otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission or alleged omission.  No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities
Act) shall be entitled to contribution from any person who was not guilty of
such fraudulent misrepresentation.  The
Holders’ respective obligations to contribute pursuant to this Section 6
are several in proportion to the respective amount of Registrable Securities
they have sold pursuant to a Shelf Registration Statement, and not joint.  The remedies provided for in this Section 6
are not exclusive and shall not limit any rights or remedies which may
otherwise be available to any indemnified party at law or in equity.

 

(f)            The indemnity and
contribution provisions contained in this Section 6 shall remain operative
and in full force and effect regardless of (i) any termination of this
Agreement, (ii) any investigation made by or on behalf of any Holder or the
Initial Purchasers or any person controlling any Holder or Initial Purchaser,
or the Company, or the Company’s officers or directors or any person
controlling the Company and (iii) the sale of any Registrable Security by any
Holder.

 

7.             Information
Requirements.

 

(a)           The Company covenants
that, if at any time before the end of the Effectiveness Period it is not
subject to the reporting requirements of the Exchange Act, it will cooperate
with any Holder of Registrable Securities and take such further action as any
Holder of Registrable Securities may reasonably request in writing (including,
without limitation, making such representations as any such Holder may
reasonably request), all to the extent required from time to time to enable
such Holder to sell Registrable Securities without registration under the
Securities Act within the limitations of the exemptions provided by Rule 144 or
Rule 144A. Upon the written request of any Holder, the Company shall deliver to
such Holder a written statement as to whether the Company has complied with the
reporting requirements of the Exchange Act, unless such a statement has been
included in the Company’s most recent report filed with the SEC pursuant to Section 13
or Section 15(d) of Exchange Act.

 

(b)           The Company shall file
the reports required to be filed by it under the Exchange Act and shall use its
reasonable best efforts to comply with General Instruction I.A to Form S-3 in
order to allow the Company to be eligible to file registration statements on
Form S-3.

 

8.             Underwritten Registrations.

 

(a)           If any of the
Registrable Securities covered by the Shelf Registration Statement are to be
offered and sold in an underwritten offering, the investment banker or
investment bankers and manager or managers that will administer the offering (“Managing
Underwriters”) shall be selected by the holders of a majority of such
Registrable Securities to be included in such offering and shall be acceptable
to the Company in the Company’s absolute discretion.

 

24

 

(b)           No person may
participate in any underwritten registration hereunder unless such person (i)
agrees to sell such person’s Registrable Securities on the basis reasonably
provided in any underwriting arrangements approved by the persons entitled
hereunder to approve such arrangements and (ii) completes and executes all
questionnaires, powers of attorney, indemnities, underwriting agreements and
other documents reasonably required under the terms of such underwriting
arrangements.

 

(c)           Notwithstanding
anything herein to the contrary, in no event shall Registrable Securities be
offered and sold through an underwritten offering without the prior agreement
of the Company.  In the event such an
underwritten offering, the Holders participating in such offering shall be
responsible for the payment of any related underwriting discounts or
commissions and, upon the Company’s request, all other expenses related thereto
of the Company.

 

9.             Miscellaneous.

 

(a)           Remedies.  The parties hereto agree that the additional
interest provided for in Section 2(e) constitutes a reasonable estimate of
the damages in respect of the Notes that may be incurred by Holders of Notes by
reason of an Event relating to such Notes, including, without limitation, the
failure of a Shelf Registration Statement to be filed, become effective under
the Securities Act, amended or replaced to include the names of all Notice
Holders or available for effecting resales of Registrable Securities in
accordance with the provisions hereof. 
Notwithstanding the foregoing sentence, the parties hereto agree that
the sole remedy available to a Holder of a Note with respect to an Event
relating to such Note for which Event additional interest is payable to such
Holder pursuant to Section 2(e) shall be such additional interest; provided,
however, that the Company acknowledges and agrees that any failure by
the Company to comply with its obligations under this Agreement in such
circumstances where additional interest is not payable pursuant to Section 2(e)
(including, without limitation, Events occurring with respect to Underlying
Common Stock) may result in material irreparable injury to the Initial
Purchasers and the Holders for which there is no adequate remedy at law, that
it will not be possible to measure damages for such injuries precisely and
that, in the event of any such failure, any Initial Purchaser or Holder may
obtain such relief as may be required to specifically enforce the Company’s
obligations under this Agreement, and, in such circumstances, the Company
agrees to waive the defense in an action for specific performance that a remedy
at law would be adequate.

 

(b)           No Conflicting Agreements.  The Company is not, as of the date hereof, a
party to, nor shall it, on or after the date of this Agreement, enter into, any
agreement with respect to the Company’s securities that conflicts with the
rights granted to the Holders in this Agreement.  The Company represents and warrants that the
rights granted to the Holders hereunder do not in any way conflict with the
rights granted to the holders of the Company’s securities under any other
agreements.  The Company shall not grant
to any of its security holders (other than the Holders in such capacity) the
right to include any of the Company’s securities in any Shelf Registration
Statement filed pursuant to this

 

25

 

Agreement.

 

(c)           Amendments and Waivers.  The provisions of this Agreement, including
the provisions of this sentence, may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be
given, unless the Company has obtained the written consent of Holders of a
majority of outstanding Registrable Securities; provided, however,
that, no consent is necessary from any of the Holders in the event that this
Agreement is amended, modified or supplemented for the purpose of curing any
ambiguity, defect or inconsistency that does not adversely affect the rights of
any Holders.  Notwithstanding the
foregoing, a waiver or consent to depart from the provisions hereof with
respect to a matter that relates exclusively to the rights of Holders of
Registrable Securities whose securities are being sold pursuant to a Shelf
Registration Statement and that does not directly or indirectly affect the
rights of other Holders of Registrable Securities may be given by Holders of at
least a majority of the Registrable Securities being sold by such Holders
pursuant to such Shelf Registration Statement; provided, however,
that the provisions of this sentence may not be amended, modified, or
supplemented except in accordance with the provisions of the immediately
preceding sentence.  Each Holder of
Registrable Securities outstanding at the time of any such amendment,
modification, supplement, waiver or consent or thereafter shall be bound by any
such amendment, modification, supplement, waiver or consent effected pursuant
to this Section 9(c), whether or not any notice, writing or marking
indicating such amendment, modification, supplement, waiver or consent appears
on the Registrable Securities or is delivered to such Holder.

 

(d)           Notices.  All notices and other communications provided
for or permitted hereunder shall be made in writing by hand delivery, by
telecopier, by courier guaranteeing overnight delivery or by first-class mail,
return receipt requested, and shall be deemed given (A) when made, if made by
hand delivery, (B) upon confirmation, if made by telecopier, (C) one (1)
Business Day after being deposited with such courier, if made by overnight
courier or (D) on the date indicated on the notice of receipt, if made by
first-class mail, to the parties as follows:

 

(i)            if to a Holder, at the
most current address given by such Holder to the Company in a Notice and
Questionnaire or any amendment thereto;

 

(ii)           if to the Company, to:

 

Option Care, Inc.

486 Half Day Road, Suite 300

Buffalo Grove, Illinois 60089

Attention: Chief Financial
Officer

Telecopy No.: (847) 913-9024

 

(iii)          if to the Initial
Purchasers, to:

 

c/o UBS Securities LLC

 

26

 

299 Park Avenue

New York, New York 10171

Attention: Syndicate Department

Telecopy No.: (212) 713-1205

 

with a copy to (for
informational purposes only):

 

UBS Securities LLC

299 Park Avenue

New York, New York 10171

Attention: Legal Department

Telecopy No.: (212) 821-4042

 

                and

 

UBS Securities LLC

677 Washington Boulevard

Stamford, Connecticut 06901

Attention: Syndicate Department

Telecopy No.: (203) 719-0683

 

or to such other address as
such person may have furnished to the other persons identified in this Section 9(d)
in writing in accordance herewith.

 

(e)           Majority of
Registrable Securities.  For purposes
of determining what constitutes holders of a majority of Registrable
Securities, as referred to in this Agreement, a majority shall constitute a
majority in aggregate principal amount of Registrable Securities, treating each
relevant holder of shares of Underlying Common Stock of the Notes as a holder
of the aggregate principal amount of Notes in respect of which such Common
Stock was issued.

 

(f)            Approval of Holders.  Whenever the consent or approval of Holders
of a specified percentage of Registrable Securities is required hereunder,
Registrable Securities held by the Company or its “affiliates” (as such term is
defined in Rule 405 under the Securities Act) (other than the Initial
Purchasers or subsequent Holders of Registrable Securities, if the Initial
Purchasers or such subsequent Holders are deemed to be such affiliates solely
by reason of their holdings of such Registrable Securities) shall not be
counted in determining whether such consent or approval was given by the
Holders of such required percentage.

 

(g)           Third Party
Beneficiaries.  The Holders shall be
third party beneficiaries to the agreements made hereunder between the Company,
on the one hand, and the Initial Purchasers, on the other hand, and shall have
the right to enforce such agreements directly to the extent they may deem such
enforcement necessary or advisable to protect their rights or the rights of
Holders hereunder. The Trustee shall be entitled to the rights granted to it
pursuant to this Agreement.

 

27

 

(h)           Successors and Assigns.  Any person who purchases any Covered Security
from any Initial Purchaser or from any Holder shall be deemed, for purposes of
this Agreement, to be an assignee of such Initial Purchaser or such Holder, as
the case may be.  This Agreement shall
inure to the benefit of and be binding upon the respective successors and
assigns of each of the parties hereto and shall inure to the benefit of and be
binding upon each Holder of any Covered Security.

 

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

 

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

 

(k)           Governing Law. THIS AGREEMENT
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.

 

(l)            Severability.  If any term, provision, covenant or
restriction of this Agreement is held to be invalid, illegal, void or
unenforceable, the remainder of the terms, provisions, covenants and
restrictions set forth herein shall remain in full force and effect and shall
in no way be affected, impaired or invalidated thereby, and the parties hereto
shall use their reasonable best efforts to find and employ an alternative means
to achieve the same or substantially the same result as that contemplated by
such term, provision, covenant or restriction, it being intended that all of
the rights and privileges of the parties shall be enforceable to the fullest
extent permitted by law.

 

(m)          Entire Agreement.  This Agreement is intended by the parties
hereto as a final expression of their agreement and is intended to be a
complete and exclusive statement of the agreement and understanding of the
parties hereto in respect of the subject matter contained herein and the
registration rights granted by the Company with respect to the Registrable
Securities. Except as provided in the Purchase Agreement, there are no
restrictions, promises, warranties or undertakings, other than those set forth
or referred to herein, with respect to the registration rights granted by the
Company with respect to the Registrable Securities.  This Agreement supersedes all prior
agreements and undertakings among the parties with respect to such registration
rights.  No party hereto shall have any
rights, duties or obligations other than those specifically set forth in this
Agreement.

 

(n)           Termination.  This Agreement and the obligations of the
parties hereunder shall terminate upon the end of the Effectiveness Period,
except for any liabilities or obligations under Section 4, Section 5
or Section 6 hereof and the obligations to make payments of and provide
for additional interest under Section 2(e) hereof to the extent

 

28

 

such additional
interest accrues prior to the end of the Effectiveness Period and to the extent
any overdue additional interest accrues in accordance with the last paragraph
of such Section 2(e), each of which shall remain in effect in accordance
with its terms.

 

(o)           Submission to Jurisdiction. 
Except as set forth below, no claim,
counterclaim or dispute of any kind or nature whatsoever arising out of or in
any way relating to this Agreement (“Claim”) may be commenced,
prosecuted or continued in any court other than the courts of the State of New
York located in the City and County of New York or in the United States
District Court for the Southern District of New York, which courts shall have
jurisdiction over the adjudication of such matters, and the Company hereby
consents to the jurisdiction of such courts and personal service with respect
thereto.  The Company hereby consents to
personal jurisdiction, service and venue in any court in which any Claim
arising out of or in any way relating to this Agreement is brought by any third
party against any Initial Purchaser.  THE
COMPANY HEREBY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY PROCEEDING (WHETHER
BASED UPON CONTRACT, TORT OR OTHERWISE) IN ANY WAY ARISING OUT OF OR RELATING
TO THIS AGREEMENT.  The Company agrees
that a final judgment in any such Proceeding brought in any such court shall be
conclusive and binding upon the Company and may be enforced in any other courts
in the jurisdiction of which the Company is or may be subject, by suit upon
such judgment.

 

[The Remainder of This Page
Intentionally Left Blank; Signature Page Follows]

 

29

 

IN WITNESS WHEREOF, the parties
have executed this Agreement as of the date first written above.

 

Very truly yours,

 

	
   

  	
  OPTION CARE, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Rajat Rai

  	
   

  
	
   

  	
   

  	
  Name: Rajat Rai

  
	
   

  	
   

  	
  Title: Chief Executive Officer

  

 

Accepted and agreed to as of the date

first above written, on behalf of itself

and the other several Initial

Purchasers:

 

	
  UBS SECURITIES LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By: 

  	
  /s/ Michael Gerardi

  	
   

  	
   

  
	
   

  	
  Name: Michael Gerardi

  	
   

  
	
   

  	
  Title: Executive Director

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By: 

  	
  /s/ Vitali Trotsko

  	
   

  	
   

  
	
   

  	
  Name: Vitali Trotsko

  	
   

  
	
   

  	
  Title: Director

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]