Document:

exv4w2

 

EXHIBIT 4.2

PALM HARBOR HOMES, INC.,

AS ISSUER,

AND

AMERICAN STOCK TRANSFER & TRUST COMPANY,

AS TRUSTEE

3.25% Convertible Senior Notes due 2024

INDENTURE

Dated as of May 11, 2004

 

 

CROSS REFERENCE TABLE*

	 	 	 	 	 
	TIA Section
	 	Indenture Section
	310(a)
	 	(1)	 	7.10
	(a)
	 	(2)	 	7.10
	(a)
	 	(3)	 	N.A.
	(a)
	 	(4)	 	N.A.
	(b)
	 	 	 	7.08; 7.10
	(c)
	 	 	 	N.A.
	311(a)
	 	 	 	7.11
	(b)
	 	 	 	7.11
	(c)
	 	 	 	N.A.
	312(a)
	 	 	 	2.05
	(b)
	 	 	 	12.03
	(c)
	 	 	 	12.03
	313(a)
	 	 	 	7.06
	(b)
	 	(1)	 	N.A.
	(b)
	 	(2)	 	7.06
	(c)
	 	 	 	12.02
	(d)
	 	 	 	7.06
	314(a)
	 	 	 	4.02; 4.03; 12.02
	(b)
	 	 	 	N.A.
	(c)
	 	(1)	 	12.04
	(c)
	 	(2)	 	12.04
	(c)
	 	(3)	 	N.A.
	(d)
	 	 	 	N.A.
	(e)
	 	 	 	12.05
	(f)
	 	 	 	N.A.
	315(a)
	 	 	 	7.01
	(b)
	 	 	 	7.05; 12.02
	(c)
	 	 	 	7.01
	(d)
	 	 	 	7.01
	(e)
	 	 	 	6.14
	316(a)
	 	(last sentence)	 	2.08
	(a)
	 	(1)(A)	 	6.08
	(a)
	 	(1)(B)	 	6.07
	(a)
	 	(2)	 	N.A.
	(b)
	 	 	 	6.10
	317(a)
	 	(1)	 	6.03
	(a)
	 	(2)	 	6.04
	(b)
	 	 	 	2.04
	318(a)
	 	 	 	12.01

N.A. means Not Applicable.

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

 

 

TABLE OF CONTENTS*

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	ARTICLE I

	DEFINITIONS AND INCORPORATION BY REFERENCE

	Section 1.01.	 	Definitions
	 	 	1	 
	Section 1.02.	 	Other Definitions
	 	 	5	 
	Section 1.03.	 	Incorporation by Reference of Trust Indenture Act
	 	 	6	 
	Section 1.04.	 	Rules of Construction
	 	 	7	 
	Section 1.05.	 	Acts of Holders
	 	 	7	 
	ARTICLE II

	THE SECURITIES

	Section 2.01.	 	Form and Dating
	 	 	8	 
	Section 2.02.	 	Execution and Authentication
	 	 	11	 
	Section 2.03.	 	Registrar, Paying Agent and Conversion Agent
	 	 	11	 
	Section 2.04.	 	Paying Agent to Hold Money in Trust
	 	 	12	 
	Section 2.05.	 	Securityholder Lists
	 	 	12	 
	Section 2.06.	 	Transfer and Exchange
	 	 	12	 
	Section 2.07.	 	Replacement Securities
	 	 	14	 
	Section 2.08.	 	Outstanding Securities; Determinations of Holders’ Action
	 	 	14	 
	Section 2.09.	 	Temporary Securities
	 	 	15	 
	Section 2.10.	 	Cancellation
	 	 	16	 
	Section 2.11.	 	Persons Deemed Owners
	 	 	16	 
	Section 2.12.	 	Global Securities
	 	 	16	 
	Section 2.13.	 	CUSIP, CINS and ISIN Numbers
	 	 	21	 
	ARTICLE III

	REDEMPTION AND REPURCHASES

	Section 3.01.	 	Right to Redeem; Notices to Trustee
	 	 	21	 
	Section 3.02.	 	Selection of Securities to Be Redeemed
	 	 	21	 
	Section 3.03.	 	Notice of Redemption
	 	 	22	 
	Section 3.04.	 	Effect of Notice of Redemption
	 	 	23	 
	Section 3.05.	 	Deposit of Redemption Price
	 	 	23	 
	Section 3.06.	 	Securities Redeemed in Part
	 	 	23	 
	Section 3.07.	 	Conversion Arrangement on Call for Redemption on Specified Dates
	 	 	23	 
	Section 3.08.	 	Repurchase of Securities at Option of the Holder on Specified Dates
	 	 	24	 
	Section 3.09.	 	Effect of Repurchase Notice
	 	 	25	 
	Section 3.10.	 	Deposit of Repurchase Price
	 	 	26	 

	* Note:	 	This Table of Contents shall not, for any purpose, be deemed to be part of the Indenture.

i

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	Section 3.11.	 	Securities Repurchased in Part
	 	 	26	 
	Section 3.12.	 	Repayment to the Company
	 	 	26	 
	Section 3.13.	 	Repurchase of Securities at Option of the Holder Upon A Designated Event
	 	 	26	 
	Section 3.14.	 	Notices; Method of Exercising Repurchase Right, Etc
	 	 	27	 
	ARTICLE IV

	COVENANTS

	Section 4.01.	 	Payment of Securities
	 	 	30	 
	Section 4.02.	 	SEC and Other Reports
	 	 	30	 
	Section 4.03.	 	Compliance Certificate
	 	 	30	 
	Section 4.04.	 	Further Instruments and Acts
	 	 	30	 
	Section 4.05.	 	Maintenance of Office or Agency
	 	 	31	 
	Section 4.06.	 	Delivery of Certain Information
	 	 	31	 
	Section 4.07.	 	Covenant to Comply With Securities Laws Upon Purchase of Securities
	 	 	31	 
	ARTICLE V

	CONSOLIDATION, MERGER OR SALE BY THE COMPANY

	Section 5.01.	 	Consolidation, Merger or Sale of Assets by the Company Permitted
	 	 	32	 
	Section 5.02.	 	Successor Corporation Substituted
	 	 	32	 
	ARTICLE VI

	DEFAULTS AND REMEDIES

	Section 6.01.	 	Events of Default
	 	 	32	 
	Section 6.02.	 	Acceleration; Rescission and Annulment
	 	 	33	 
	Section 6.03.	 	Collection of Indebtedness and Suits for Enforcement by Trustee
	 	 	34	 
	Section 6.04.	 	Trustee May File Proofs of Claim
	 	 	35	 
	Section 6.05.	 	Trustee May Enforce Claims Without Possession of Securities
	 	 	35	 
	Section 6.06.	 	Delay or Omission Not Waiver
	 	 	36	 
	Section 6.07.	 	Waiver of Past Defaults
	 	 	36	 
	Section 6.08.	 	Control by Majority
	 	 	36	 
	Section 6.09.	 	Limitation on Suits by Holders
	 	 	36	 
	Section 6.10.	 	Rights of Holders to Receive Payment
	 	 	37	 
	Section 6.11.	 	Application of Money Collected
	 	 	37	 
	Section 6.12.	 	Restoration of Rights and Remedies
	 	 	37	 
	Section 6.13.	 	Rights and Remedies Cumulative
	 	 	37	 
	Section 6.14.	 	Undertaking for Costs
	 	 	38	 
	Section 6.15.	 	Waiver of Stay or Extension Laws
	 	 	38	 
	ARTICLE VII

	TRUSTEE

	Section 7.01.	 	Duties of Trustee
	 	 	38	 
	Section 7.02.	 	Rights of Trustee
	 	 	39	 

ii

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	Section 7.03.	 	Individual Rights of Trustee
	 	 	41	 
	Section 7.04.	 	Trustee’s Disclaimer
	 	 	41	 
	Section 7.05.	 	Notice of Defaults
	 	 	41	 
	Section 7.06.	 	Reports by Trustee to Holders
	 	 	41	 
	Section 7.07.	 	Compensation and Indemnity
	 	 	41	 
	Section 7.08.	 	Replacement of Trustee
	 	 	42	 
	Section 7.09.	 	Successor Trustee by Merger
	 	 	43	 
	Section 7.10.	 	Eligibility; Disqualification
	 	 	43	 
	Section 7.11.	 	Preferential Collection of Claims Against Company
	 	 	43	 
	ARTICLE VIII

	DISCHARGE OF INDENTURE

	Section 8.01.	 	Discharge of Liability on Securities
	 	 	43	 
	Section 8.02.	 	Repayment to the Company
	 	 	44	 
	ARTICLE IX

	AMENDMENTS

	Section 9.01.	 	Without Consent of Holders
	 	 	44	 
	Section 9.02.	 	With Consent of Holders
	 	 	45	 
	Section 9.03.	 	Compliance with Trust Indenture Act
	 	 	45	 
	Section 9.04.	 	Revocation and Effect of Consents, Waivers and Actions
	 	 	45	 
	Section 9.05.	 	Notation on or Exchange of Securities
	 	 	46	 
	Section 9.06.	 	Trustee to Sign Supplemental Indentures
	 	 	46	 
	Section 9.07.	 	Effect of Supplemental Indentures
	 	 	46	 
	ARTICLE X

	CONVERSION

	Section 10.01.	 	Conversion Privilege
	 	 	46	 
	Section 10.02.	 	Conversion Procedure
	 	 	47	 
	Section 10.03.	 	Fractional Shares
	 	 	48	 
	Section 10.04.	 	Taxes on Conversion
	 	 	48	 
	Section 10.05.	 	Company to Provide Stock
	 	 	49	 
	Section 10.06.	 	Adjustment of Initial Conversion Rate
	 	 	49	 
	Section 10.07.	 	Notice of Adjustments
	 	 	55	 
	Section 10.08.	 	Notice of Certain Transactions
	 	 	55	 
	Section 10.09.	 	Reorganization of Company; Special Distributions
	 	 	56	 
	Section 10.10.	 	Company Determination Final
	 	 	57	 
	Section 10.11.	 	Trustee’s Adjustment Disclaimer
	 	 	57	 
	Section 10.12.	 	Successive Adjustments
	 	 	57	 
	Section 10.13.	 	Company’s Right to Elect to Pay Cash or Common Stock
	 	 	57	 
	ARTICLE XI

	PAYMENT OF INTEREST

	Section 11.01.	 	Interest Payments
	 	 	58	 

iii

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	Section 11.02.	 	Defaulted Interest
	 	 	58	 
	Section 11.03.	 	Interest Rights Preserved
	 	 	59	 
	ARTICLE XII

	MISCELLANEOUS

	Section 12.01.	 	Trust Indenture Act Controls
	 	 	59	 
	Section 12.02.	 	Notices
	 	 	59	 
	Section 12.03.	 	Communication by Holders with Other Holders
	 	 	60	 
	Section 12.04.	 	Certificate and Opinion as to Conditions Precedent
	 	 	60	 
	Section 12.05.	 	Statements Required in Certificate or Opinion
	 	 	61	 
	Section 12.06.	 	Separability Clause
	 	 	61	 
	Section 12.07.	 	Rules by Trustee, Paying Agent, Conversion Agent and Registrar
	 	 	61	 
	Section 12.08.	 	Legal Holidays
	 	 	61	 
	Section 12.09.	 	GOVERNING LAW
	 	 	61	 
	Section 12.10.	 	No Recourse Against Others
	 	 	61	 
	Section 12.11.	 	Successors
	 	 	62	 
	Section 12.12.	 	Multiple Originals
	 	 	62	 
	 
	EXHIBITS

	Exhibit A-1	 	Form of Rule 144A/Regulation S Global Security
	 	 	 	 
	Exhibit A-2	 	Form of Certificated Security
	 	 	 	 
	Exhibit A-3	 	Form of Unrestricted Global Security
	 	 	 	 
	Exhibit B	 	Transfer Certificate
	 	 	 	 

iv

 

          INDENTURE, dated as of May 11, 2004, between PALM HARBOR HOMES, INC., a
Florida corporation (the “Company”), and American Stock Transfer & Trust
Company, as trustee (the “Trustee”).

RECITALS OF THE COMPANY

          The Company has duly authorized the creation of an issue of 3.25%
Convertible Senior Notes due 2024 (the “Securities”) having the terms, tenor,
amount and other provisions hereinafter set forth, and, to provide therefor,
the Company has duly authorized its execution and delivery of this Indenture.

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

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

          SECTION 1.01. Definitions.

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

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

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

1

 

          “Business Day” means each day of the year other than a Saturday or a
Sunday or other day on which banking institutions in The City of New York are
required or authorized by law, regulation or executive order to close.

          “Capital Stock” for any corporation means any and all shares, interests,
rights to purchase, warrants, options, participations or other equivalents of
or interests in (however designated) stock or other equity issued by that
corporation.

          “Certificated Securities” means any of the Securities that are in the form
of the Securities attached hereto as Exhibit A-2.

          “Closing Sale Price” of Capital Stock on any date means (a) 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 as reported by the
National Association of Securities Dealers Automated Quotation System, or if
not so reported, on the United States principal national securities exchange on
which the Capital Stock is traded, or (b) in the absence of such quotation,
such price as the Company shall determine on the basis of such quotations as
the Company considers appropriate.

          “Closing Trading Price” of $1,000 Principal Amount of Securities on any
date means the average of the secondary market bid quotations per such amount
of Securities obtained by the Trustee for $2,000,000 Principal Amount of the
Securities at approximately 3:30 p.m. New York City time on such date from two
independent nationally recognized securities dealers selected by the Company,
provided that if at least two such bids cannot reasonably be obtained by the
trustee, but one such bid can reasonably be obtained by the Trustee, this one
bid will be used. If the Trustee cannot reasonably obtain at least one bid for
$2,000,000 Principal Amount of Securities from a nationally recognized
securities dealer or, in the Company’s reasonable judgment, the bid quotations
are not indicative of the secondary market value of the Securities, then the
Closing Trading Price of the Securities will be deemed to be less than 98% of
the Conversion Rate then in effect multiplied by the Closing Sale Price of
Common Stock on such determination date.

          “Common Stock” shall mean the shares of common stock, $0.01 par value, of
the Company as it exists on the date of this Indenture or any other shares of
Capital Stock of the Company into which the Common Stock shall be reclassified
or changed.

          “Company” means the party named as the “Company” in the first paragraph of
this Indenture until a successor replaces it pursuant to the applicable
provisions of this Indenture and, thereafter, shall mean such successor. The
foregoing sentence shall likewise apply to any subsequent such successor or
successors.

          “Company Request” or “Company Order” means a written request or order
signed in the name of the Company by any one Officer.

          “Corporate Trust Office” means the office of the Trustee at which at any
time this Indenture shall be principally administered, which office at the date
hereof is located at 59 Maiden Lane, New York, NY 10038, Attention: Corporate
Trust Department, or such other

2

 

address as the Trustee may designate from time
to time by notice to the Company, or the principal corporate trust office of
any successor Trustee (or such other address as a successor Trustee may
designate from time to time by notice to the Company).

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

          “Designated Event” means any event that is a Fundamental Change or a
Termination of Trading.

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

          “Fundamental Change” means any transaction or event (whether by means of
an exchange offer, liquidation, tender offer, consolidation, merger,
combination, reclassification, recapitalization or otherwise) in connection
with which all or substantially all of the Common Stock is exchanged for,
converted into, acquired for or constitutes solely the right to receive,
consideration which is not all or substantially all common stock that (i) is
listed on, or immediately after the transaction or event will be listed on, a
United States national securities exchange, or (ii) is approved, or immediately
after the transaction or event will be approved, for quotation on the Nasdaq
Stock Market or any similar United States system of automated dissemination of
quotations of securities prices.

          “Global Securities” means any of the Securities that are in the form of
the Securities attached hereto as Exhibit A-1 or A-3, and that are deposited
with the Depositary or its custodian and registered in the name of the
Depositary, representing Securities sold in reliance on Rule 144A and
Regulation S under the Securities Act or pursuant to a registration statement.

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

          “Indenture” means this Indenture, as amended or supplemented from time to
time in accordance with the terms hereof, including the provisions of the TIA
that are deemed to be a part hereof.

          “Interest Payment Date” means May 15 and November 15 of each year,
commencing November 15, 2004.

          “Issue Date” of any Security means the date on which the Security was
originally issued or deemed issued as set forth on the face of the Security.

          “Issue Price” of any Security means, in connection with the original
issuance of such Security, the initial issue price at which the Security is
sold as set forth on the face of the Security.

          “Notes” means any of the Company’s 3.25% Convertible Senior Notes due
2024, as amended or supplemented from time to time, issued under this
Indenture.

3

 

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

          “Officer’s Certificate” means a certificate signed by an Officer of the
Company signing alone, and delivered to the Trustee.

          “Opinion of Counsel” means a written opinion containing the information
specified in Sections 12.04 and 12.05, if applicable, from legal counsel who is
reasonably acceptable to the Trustee. The counsel may be an employee of, or
counsel to, the Company or the Trustee.

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

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

          “Principal Amount” of each Security means the principal amount as set
forth on the face of the Security.

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

          “Redemption Price” or “redemption price” shall have the meaning set forth
in paragraph 5 of the Securities.

          “Regular Record Date” means each May 1 and November 1 (whether or not a
Business Day).

          “Regulation S” means Regulation S under the Securities Act (or any
successor regulation having substantially similar provisions), as it may be
amended from time to time.

          “Responsible Officer” means, when used with respect to the Trustee, any
officer assigned to administer corporate trust matters or to whom any corporate
trust matter is referred because of such person’s knowledge of and familiarity
with the particular subject and who, in each case, shall have direct
responsibility for the administration of this Indenture.

          “Restricted Security” means a Security required to bear the restrictive
legend set forth in the form of Security set forth in Exhibits A-1 and A-2 of
this Indenture.

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

4

 

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

          “SEC” means the United States Securities and Exchange Commission.

          “Securities” means the Notes.

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

          “Significant Subsidiary” means “significant subsidiary,” as such term is
defined in Rule 1-02 of Regulation S-X under the Securities Act.

          “Stated Maturity”, when used with respect to any Security, means the date
specified in such Security as the final fixed date on which the Principal
Amount of such Security is due and payable.

          “Subsidiary” means (i) a corporation, a majority of whose Capital Stock
with voting power, under ordinary circumstances, to elect directors is, at the
date of determination, directly or indirectly owned by the Company, by one or
more Subsidiaries of the Company or by the Company and one or more Subsidiaries
of the Company, (ii) a partnership in which the Company or a Subsidiary of the
Company holds a majority interest in the equity capital or profits of such
partnership, or (iii) any other person (other than a corporation or a
partnership) in which the Company, a Subsidiary of the Company or the Company
and one or more Subsidiaries of the Company, directly or indirectly, at the
date of determination, has (x) at least a majority ownership interest or (y)
the power to elect or direct the election of a majority of the directors or
other governing body of such person.

          “Termination of Trading” means the Common Stock (or other common stock
into which the Securities are then convertible) is neither listed for trading
on a United States national securities exchange nor approved for trading on the
Nasdaq Stock Market.

          “TIA” or “Trust Indenture Act” means the Trust Indenture Act of 1939 as in
effect on the date of this Indenture, provided, however, that in the event the
TIA is amended after such date, TIA means, to the extent required by any such
amendment, the TIA as so amended.

          “Trading Day” means:

     (1) if the applicable security is listed or admitted for trading on
The New York Stock Exchange or another national security exchange, a day
on which The New York Stock Exchange or such other national security
exchange is open for business;

     (2) if the applicable security is quoted on the Nasdaq Stock Market,
a day on which trades may be made thereon; or

     (3) if the applicable security is not so listed, admitted for
trading or quoted, a day on which the applicable security is traded
regular way in the over-the-counter market and for which a closing bid
and a closing asked price for such security are available.

5

 

          “Trustee” means the party named as the “Trustee” in the first paragraph of
this Indenture until a successor replaces it pursuant to the applicable
provisions of this Indenture and, thereafter, shall mean such successor. The
foregoing sentence shall likewise apply to any subsequent such successor or
successors.

          “Unrestricted Global Securities” means any of the Securities that are in
the form of the Securities attached hereto as Exhibit A-3.

          SECTION 1.02.Other Definitions.

	 	 	 	 	 	 
	 	 	Defined in
	Term
	 	Section

	“Act”
	 	1.05(a)	 
	“Agent Members”
	 	2.12(f)	 
	“Bankruptcy Law”
	 	6.01	 
	“Cash Buy-out”
	 	3.13	 
	“Clearstream”
	 	2.01(a)	 
	“Company Repurchase Notice”
	 	3.09(d)	 
	“Company Repurchase Notice Date”
	 	3.09(d)	 
	“Conversion Agent”
	 	2.03	 
	“Conversion Date”
	 	10.02(a)	 
	“Conversion Price”
	 	10.01(a)	 
	“Current Market Price”
	 	10.06(f)(i)	 
	“Custodian”
	 	6.01	 
	“Defaulted Interest”
	 	11.02	 
	“Depositary”
	 	2.01(a)	 
	“Designated Event Notice”
	 	3.14(a)	 
	“Designated Event Repurchase Date”
	 	3.14	 
	“Designated Event Repurchase Exercise Notice”
	 	3.14(b)	 
	“Designated Event Repurchase Price”
	 	3.13	 
	“Distribution”
	 	10.06(d)	 
	“DTC”
	 	2.01(a)	 
	“Euroclear”
	 	2.01(a)	 
	“Event of Default”
	 	6.01	 
	“Expiration Time”
	 	10.06(e)	 
	“fair market value”
	 	10.06(f)(ii)	 
	“Legal Holiday”
	 	11.08	 
	“Legend”
	 	2.06(f)	 
	“Make-Whole Premium”
	 	3.13	 
	“Notice of Default”
	 	6.01	 
	“Paying Agent”
	 	2.03	 
	“Purchased Shares”
	 	10.06(e)(i)	 
	“QIBs”
	 	2.01(a)	 
	“Record Date”
	 	10.06(f)(iii)	 
	“Register”
	 	1.05(c)	 
	“Registrar”
	 	2.03	 

6

 

	 	 	 	 	 	 
	 	 	Defined in
	Term
	 	Section

	“Repurchase Date”
	 	3.08	 
	“Repurchase Notice”
	 	3.08(a)	 
	“Repurchase Price”
	 	3.08	 
	“Rule 144A Information”
	 	4.06	 
	“Special Record Date”
	 	11.02	 
	“Spinoff Valuation Period”
	 	10.06(d)(1)	 
	“Trigger Event”
	 	10.06(c)	 

          SECTION 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.

          “indenture to be qualified” means this Indenture.

          “indenture trustee” or “institutional trustee” means the Trustee.

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

          All other TIA terms used in this Indenture that are defined by the TIA,
defined by TIA reference to another statute or defined by SEC rule have the
meanings assigned to them by such definitions.

          SECTION 1.04. Rules of Construction. Unless the context otherwise
requires:

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

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

          (c) “or” is not exclusive;

          (d) “including” means including, without limitation; and

          (e) words in the singular include the plural, and words in the plural
include the singular.

          SECTION 1.05. Acts of Holders. (a) Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture
to be given or taken

7

 

by Holders may be embodied in and evidenced by one or more
instruments (which may take the form of an electronic writing or messaging or
otherwise be in accordance with customary procedures of the Depositary or the
Trustee) of substantially similar tenor signed by such Holders in person or by
their agent duly appointed in writing (which may be in electronic form); and,
except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments are delivered to the Trustee and,
when it is hereby expressly required, to the Company. Such instrument or
instruments (and the action embodied therein and evidenced thereby) are herein
sometimes referred to as the “Act” of Holders signing such instrument or
instruments. Proof of execution of any such instrument or of a writing
appointing any such agent (either of which may be in electronic form) shall be
sufficient for any purpose of this Indenture and conclusive in favor of the
Trustee and the Company, if made in the manner provided in this Section.

          (b) The fact and date of the execution by any Person of any such
instrument or writing may be proved by the affidavit of a witness of such
execution (or electronic delivery) or by a certificate of a notary public or
other officer authorized by law to take acknowledgments of deeds, certifying
that the individual signing or delivering such instrument or writing
acknowledged to such officer the execution (or electronic delivery) thereof.
When such execution is by a signer acting in a capacity other than such
signer’s individual capacity, such certificate or affidavit shall also
constitute sufficient proof of such signer’s authority. The fact and date of
the execution of any such instrument or writing (electronic or otherwise), or
the authority of the Person executing the same, may also be proved in any other
manner that the Trustee deems sufficient.

          (c) The ownership of Securities shall be proved by a Register maintained
by the Registrar (the “Register”).

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

          (e) If the Company shall solicit from the Holders any request, demand,
authorization, direction, notice, consent, waiver or other Act, the Company
may, at its option, by or pursuant to a resolution of the Board of Directors,
fix in advance a record date for the determination of Holders entitled to give
such request, demand, authorization, direction, notice, consent, waiver or
other Act, but the Company shall have no obligation to do so. If such a record
date is fixed, such request, demand, authorization, direction, notice, consent,
waiver or other Act may be given before or after such record date, but only the
Holders of record at the close of business on such record date shall be deemed
to be Holders for the purposes of determining whether Holders of the requisite
proportion of outstanding Securities have authorized or agreed or consented to
such request, demand, authorization, direction, notice, consent, waiver or
other Act, and for that purpose the outstanding Securities shall be computed as
of such record date; provided that no such authorization, agreement or consent
by the Holders on such record date

8

 

shall be deemed effective unless it shall
become effective pursuant to the provisions of this Indenture within six months
after the record date.

ARTICLE II

THE SECURITIES

          SECTION 2.01. Form and Dating. The Securities and the Trustee’s
certificate of authentication shall be substantially in the form of Exhibits
A-1, A-2 and A-3, which are hereby expressly made a part of this Indenture.
The Securities may have notations, legends or endorsements required by law,
stock exchange rule or usage (provided that any such notation, legend or
endorsement required by usage is in a form acceptable to the Company). The
Company shall provide any such notations, legends or endorsements to the
Trustee in writing. Each Security shall be dated the date of its
authentication.

          (a) Global Securities. Securities offered and sold within the United
States to “qualified institutional buyers” as defined in Rule 144A (“QIBs”) in
reliance on Rule 144A or in offshore transactions in reliance on Regulation S
shall be issued initially in the form of Global Securities, which shall be
deposited with the Trustee at its Corporate Trust Office, as custodian for the
Depositary and registered in the name of The Depository Trust Company (“DTC”)
or the nominee thereof (such depositary, or any successor thereto, and any such
nominee being hereinafter referred to as the “Depositary”) for the accounts of
participants in DTC (and, in the case of Securities transferred subsequent to
such initial issuance to Holders pursuant to Regulation S, registered with the
Depositary for the accounts of designated agents holding on behalf of the
Euroclear S.A./N.V., as operator of the Euroclear System (“Euroclear”) or
Clearstream Banking, société anonyme (“Clearstream”)), duly executed by the
Company and authenticated by the Trustee as hereinafter provided. The aggregate
Principal Amount of the Global Securities may from time to time be increased or
decreased by adjustments made on the records of the Trustee and the Depositary
as hereinafter provided.

          (b) Global Securities in General. Except as provided in this Section
2.01, 2.06 or 2.12, owners of beneficial interests in Global Securities will
not be entitled to receive physical delivery of Certificated Securities. Each
Global Security shall represent such of the outstanding Securities as shall be
specified therein and each shall provide that it shall represent the aggregate
Principal Amount of outstanding Securities from time to time endorsed thereon
and that the aggregate Principal Amount of outstanding Securities represented
thereby may from time to time be reduced or increased, as appropriate, to
reflect exchanges, repurchases, redemptions and conversions.

          Any adjustment of the aggregate Principal Amount of a Global Security to
reflect the amount of any increase or decrease in the Principal Amount of
outstanding Securities represented thereby shall be made by the Trustee in
accordance with instructions given by the Holder thereof as required by Section
2.12 hereof and shall be made on the records of the Trustee and the Depositary.

          (c) Book-Entry Provisions. This Section 2.01(c) shall apply only to
Global Securities deposited with or on behalf of the Depositary.

9

 

          The Company shall execute and the Trustee shall, in accordance with this
Section 2.01(c), authenticate and deliver initially one or more Global
Securities that (a) shall be registered in the name of the Depositary, (b)
shall be delivered by the Trustee to the Depositary or pursuant to the
Depositary’s instructions or held by the Trustee as custodian for such
Depositary and (c) shall bear legends substantially to the following effect:

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR THE INDIVIDUAL
NOTES REPRESENTED HEREBY, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS
A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE
OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY
OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A
NOMINEE OF SUCH SUCCESSOR DEPOSITARY.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE
ISSUER 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.

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND ACCORDINGLY, MAY NOT
BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS
ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT (A) IT IS A “QUALIFIED
INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A ADOPTED UNDER THE
SECURITIES ACT) OR (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS
SECURITY IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH REGULATION S
ADOPTED UNDER THE SECURITIES ACT; (2) AGREES THAT IT WILL NOT WITHIN TWO
YEARS AFTER THE ORIGINAL ISSUANCE OF THIS SECURITY RESELL OR OTHERWISE
TRANSFER THE SECURITY EVIDENCED HEREBY OR THE COMMON STOCK ISSUABLE UPON
CONVERSION OF SUCH SECURITY, EXCEPT (A) TO THE ISSUER OR A SUBSIDIARY
THEREOF; (B) TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE
144A ADOPTED UNDER THE SECURITIES ACT (IF AVAILABLE); (C) TO PERSONS
OTHER THAN U.S. PERSONS OUTSIDE THE UNITED STATES IN COMPLIANCE WITH
REGULATION S UNDER THE SECURITIES ACT, (D) PURSUANT TO THE EXEMPTION FROM
REGISTRATION PROVIDED BY RULE 144 ADOPTED UNDER THE SECURITIES ACT OR
ANOTHER AVAILABLE EXEMPTION UNDER THE SECURITIES ACT (IF AVAILABLE), OR
(E) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT AND

10

 

(3) AGREES THAT IT WILL, PRIOR TO ANY TRANSFER OF THIS SECURITY
WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS SECURITY, FURNISH TO
THE TRUSTEE AND THE ISSUER SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER
INFORMATION AS MAY BE REQUIRED PURSUANT TO THE INDENTURE 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. AS USED HEREIN, THE TERMS “OFFSHORE TRANSACTION,” “UNITED
STATES” AND “U.S. PERSON” HAVE THE MEANING GIVEN TO THEM BY REGULATION S
UNDER THE SECURITIES ACT. IN ANY CASE, THE HOLDER HEREOF WILL NOT,
DIRECTLY OR INDIRECTLY, ENGAGE IN ANY HEDGING TRANSACTION WITH REGARD TO
THIS SECURITY OR ANY COMMON STOCK ISSUABLE UPON CONVERSION OF SUCH
SECURITY, EXCEPT AS PERMITTED BY THE SECURITIES ACT.

          (d) Certificated Securities. Securities not issued as interests in the
Global Securities will be issued in certificated form substantially in the form
of Exhibit A-2 attached hereto.

          SECTION 2.02. Execution and Authentication. The Securities shall be
executed on behalf of the Company by any Officer. The signature of the Officer
of the Company on the Securities may be manual or facsimile.

          Securities bearing the manual or facsimile signatures of an individual who
was at the time of the execution of the Securities the proper Officer of the
Company shall bind the Company, notwithstanding that such individual has ceased
to hold such office prior to the authentication and delivery of such Securities
or did not hold such office at the date of authentication of such Securities.

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

          The Trustee shall authenticate and deliver Securities for original issue
in an aggregate Principal Amount of up to $75,000,000 upon one or more Company
Orders without any further action by the Company. The aggregate Principal
Amount of Securities outstanding at any time may not exceed the amount set
forth in the foregoing sentence, except as provided in Section 2.07.

          The Securities shall be issued only in registered form without coupons and
only in denominations of $1,000 of Principal Amount and any integral multiple
thereof.

          SECTION 2.03. Registrar, Paying Agent and Conversion Agent. The Company
shall maintain an office or agency where Securities may be presented for
registration

11

 

of transfer or for exchange (“Registrar”), an office or agency
where Securities may be presented for purchase or payment (“Paying Agent”) and
an office or agency 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 have one or more
co-registrars, one or more additional paying agents and one or more additional
conversion agents. The term Paying Agent includes any additional paying agent,
including any named pursuant to Section 4.05. The term Conversion Agent
includes any additional conversion agent, including any named pursuant to
Section 4.05.

          The Company shall enter into an appropriate agency agreement with any
Registrar or co-registrar, Paying Agent or Conversion Agent (other than the
Trustee). The agreement shall implement the provisions of this Indenture that
relate to such agent. The Company shall notify the Trustee of the name and
address of any such agent. If the Company fails to maintain a Registrar,
Paying Agent or Conversion Agent, the Trustee shall act as such. The Company
or any Subsidiary or an Affiliate of either of them may act as Paying Agent,
Registrar, Conversion Agent or co-registrar.

          The Company initially appoints the Trustee as Registrar, Conversion Agent
and Paying Agent in connection with the Securities.

          SECTION 2.04. Paying Agent to Hold Money in Trust. Except as otherwise
provided herein, not later than 10:00 a.m., New York City time, on each due
date of payments in respect of any Security, the Company shall deposit with the
Paying Agent a sum of money (in immediately available funds if deposited on the
due date) sufficient to make such payments when so becoming due. The Company
shall require each Paying Agent (other than the Trustee) to agree in writing
that the Paying Agent shall hold in trust for the benefit of Securityholders or
the Trustee all money held by the Paying Agent for the making of payments in
respect of the Securities and shall notify the Trustee of any default by the
Company in making any such payment. At any time during the continuance of any
such default, the Paying Agent shall, upon the written request of the Trustee,
forthwith pay to the Trustee all money so held in trust. If the Company, a
Subsidiary or an Affiliate of either of them acts as Paying Agent, it shall
segregate the money held by it as Paying Agent and hold it as a separate trust
fund. The Company at any time may require a Paying Agent to pay all money held
by it to the Trustee and to account for any funds disbursed by it. Upon doing
so, the Paying Agent shall have no further liability for the money.

          SECTION 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 cause to be furnished to the Trustee a listing of
Securityholders, in writing at least seven Business Days 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.

          SECTION 2.06. Transfer and Exchange. (a) Subject to Section 2.12 hereof,
upon surrender for registration of transfer of any Security, together with a
written instrument of transfer satisfactory to the Registrar duly executed by
the Securityholder or such

12

 

Securityholder’s attorney duly authorized in
writing, at the office or agency of the Company designated as Registrar or
co-registrar pursuant to Section 2.03, the Company shall execute and the
Trustee upon receipt of a Company Order shall authenticate and deliver, in the
name of the designated transferee or transferees, one or more new Securities of
any authorized denomination or denominations, of a like aggregate Principal
Amount. The Company shall not charge a service charge for any registration of
transfer or exchange, but the Company may require payment of a sum sufficient
to pay all taxes, assessments or other governmental charges that may be imposed
in connection with the registration of transfer or exchange of the Securities
from the Securityholder requesting such registration of transfer or exchange.

          Subject to Section 2.12 hereof, at the option of the Holder, Securities
may be exchanged for other Securities of any authorized denomination or
denominations, of a like aggregate Principal Amount, upon surrender of the
Securities to be exchanged, together with a written instrument of transfer
satisfactory to the Registrar duly executed by the Securityholder or such
Securityholder’s attorney duly authorized in writing, at such office or agency.
Whenever any Securities are so surrendered for exchange, the Company shall
execute and the Trustee shall authenticate and deliver, the Securities that the
Holder making the exchange is entitled to receive.

          The Company shall not be required to make, and the Registrar need not
register, transfers or exchanges of Securities selected for redemption (except,
in the case of Securities to be redeemed in part, the portion thereof not to be
redeemed) or any Securities in respect of which a Repurchase Notice or
Designated Event Notice has been given and not withdrawn by the Holder thereof
in accordance with the terms of this Indenture (except, in the case of
Securities to be purchased in part, the portion thereof not to be purchased) or
any Securities for a period of 15 days before the mailing of a notice of
redemption of Securities to be redeemed.

          (b) Notwithstanding any provision to the contrary herein, so long as a
Global Security remains outstanding and is held by or on behalf of the
Depositary, transfers of a Global Security, in whole or in part, shall be made
only in accordance with Section 2.12 and this Section 2.06(b). Transfers of a
Global Security shall be limited to transfers of such Global Security in whole,
or in part, to the Depositary, to nominees of the Depositary or to a successor
of the Depositary or such successor’s nominee.

          (c) Successive registrations and registrations of transfers and exchanges
as aforesaid may be made from time to time as desired, and each such
registration shall be noted on the Register for the Securities.

          (d) Any Registrar appointed pursuant to Section 2.03 hereof shall provide
to the Trustee such information as the Trustee may reasonably require in
connection with the delivery by such Registrar of Securities upon registration
of transfer or exchange of Securities.

          (e) No Registrar shall be required to make registrations of transfer or
exchange of Securities during any periods designated in the text of the
Securities or in this Indenture as periods during which such registration of
transfers and exchanges need not be made.

13

 

          (f) If Securities are issued upon the registration of transfer, exchange
or replacement of Securities subject to restrictions on transfer and bearing
the legends set forth on the form of Security attached hereto as Exhibits A-1
and A-2 setting forth such restrictions (collectively, the “Legend”), or if a
request is made to remove the Legend on a Security, the Securities so issued
shall bear the Legend, or the Legend shall not be removed, as the case may be,
unless there is delivered to the Company and the Registrar such satisfactory
evidence, which shall include an Opinion of Counsel, as may be reasonably
required by the Company, that neither the Legend nor the restrictions on
transfer set forth therein are required to ensure that transfers thereof comply
with the provisions of Rule 144A or Rule 144 or that such Securities are not
“restricted” within the meaning of Rule 144. Upon (i) provision of such
satisfactory evidence or (ii) notification by the Company to the Trustee and
Registrar of the sale of such Security pursuant to a registration statement
that is effective at the time of such sale, the Trustee, upon receipt of a
Company Order, shall authenticate and deliver a Security that does not bear the
Legend, which Security, if a Global Security, to be in the form of an
Unrestricted Global Security. If the Legend is removed from the face of a
Security and the Security is subsequently held by an Affiliate of the Company,
the Company shall use its reasonable best efforts to reinstate the Legend.

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

          SECTION 2.07. Replacement Securities. If any mutilated Security is
surrendered to the Trustee or if the Holder of a Security claims and submits an
affidavit or other evidence, satisfactory to the Trustee and the Company, to
the effect that the Security has been lost, destroyed or stolen, the Company
shall issue and the Trustee, upon receipt of the authentication order of the
Company in the form of an Officers’ Certificate, shall authenticate a
replacement Security if the Trustee’s requirements are met. If required by the
Trustee or the Company, such Holder must provide an indemnity bond or other
indemnity, sufficient in the judgment of both the Company and the Trustee, to
protect the Company, the Trustee or any agent thereof from any loss which any
of them may suffer if a Security is replaced. The Company and the Trustee may
charge such Holder for their expenses in replacing a Security.

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

          Every new Security issued pursuant to this Section 2.07 in lieu of any
mutilated, destroyed, lost or stolen Security shall constitute an original
additional contractual obligation of the Company, whether or not the mutilated,
destroyed, lost or stolen Security shall be at any time

14

 

enforceable by anyone,
and such new Security shall be entitled to all the benefits of this Indenture
equally and proportionately with any and all other Securities duly issued
hereunder.

          The provisions of this Section 2.07 are exclusive and shall preclude (to
the extent lawful) all other rights and remedies of any Holder with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Securities.

          SECTION 2.08. Outstanding Securities; Determinations of Holders’ Action.
Securities outstanding at any time are all the Securities authenticated by the
Trustee, except for those cancelled by it, those delivered to it for
cancellation and those described in this Section 2.08 as not outstanding. A
Security does not cease to be outstanding because the Company or an Affiliate
thereof holds the Security; provided, however, that in determining whether the
Holders of the requisite Principal Amount of Securities have given or concurred
in any request, demand, authorization, direction, notice, consent or waiver
hereunder, Securities owned by the Company or any other obligor upon the
Securities or any Affiliate of the Company or such other obligor shall be
disregarded and deemed not to be outstanding, except that, in determining
whether the Trustee shall be protected in relying upon any such request,
demand, authorization, direction, notice, consent or waiver, only Securities
which a Responsible Officer of the Trustee actually knows to be so owned shall
be so disregarded. Subject to the foregoing, only Securities outstanding at
the time of such determination shall be considered in any such determination
(including determinations pursuant to Articles VI and IX).

          If a Security is replaced or paid pursuant to Section 2.07 (other than a
mutilated Security surrendered for replacement), the replaced or paid Security
ceases to be outstanding unless the Trustee receives proof satisfactory to it
that the replaced or paid Security is held by a bona fide purchaser. A
mutilated Security ceases to be outstanding upon surrender of such Security and
replacement thereof pursuant to Section 2.07.

          If the Paying Agent holds, in accordance with this Indenture, on a
Redemption Date, or on the Business Day following the Repurchase Date or a
Designated Event Repurchase Date, or on Stated Maturity, money or securities,
if permitted hereunder, sufficient to pay Securities payable on that date, then
on or as of such Redemption Date, Repurchase Date, Designated Event Repurchase
Date or Stated Maturity, as the case may be, such Securities shall cease to be
outstanding and interest (if any) on such Securities shall cease to accrue;
provided, that, if such Securities are to be redeemed, notice of such
redemption has been duly given pursuant to this Indenture.

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

          SECTION 2.09. Temporary Securities. Pending the preparation of definitive
Securities, the Company may execute and, upon Company Order, the Trustee shall
authenticate and deliver, temporary Securities which are printed, lithographed,
typewritten, mimeographed or otherwise produced, in any authorized
denomination, substantially of the tenor of the definitive Securities in lieu
of which they are issued and with such appropriate insertions, omissions,

15

 

substitutions and other variations as the Officer executing such Securities may
determine, as conclusively evidenced by their execution of such Securities.

          If temporary Securities are issued, the Company will cause definitive
Securities to be prepared without unreasonable delay. After the preparation of
definitive Securities, the temporary Securities shall be exchangeable for
definitive Securities upon surrender of the temporary Securities at the office
or agency of the Company designated for such purpose pursuant to Section 2.03,
without charge to the Holder. Upon surrender for cancellation of any one or
more temporary Securities the Company shall execute and, upon Company Order,
the Trustee shall authenticate and deliver in exchange therefor a like
Principal Amount of definitive Securities of authorized denominations. Until
so exchanged the temporary Securities shall in all respects be entitled to the
same benefits under this Indenture as definitive Securities.

          SECTION 2.10. Cancellation. All Securities surrendered for payment,
repurchase by the Company pursuant to Article III, conversion, redemption or
registration of transfer or exchange shall, if surrendered to any person other
than the Trustee, be delivered to the Trustee and shall be promptly cancelled
by it. The Company may at any time deliver to the Trustee for cancellation any
Securities previously authenticated and delivered hereunder which the Company
may have acquired in any manner whatsoever, and all Securities so delivered
shall be promptly cancelled by the Trustee. The Company may not issue new
Securities to replace Securities it has paid or delivered to the Trustee for
cancellation or that any Holder has converted pursuant to Article X. No
Securities shall be authenticated in lieu of or in exchange for any Securities
cancelled as provided in this Section 2.10, except as expressly permitted by
this Indenture. All cancelled Securities held by the Trustee shall be disposed
of by the Trustee.

          SECTION 2.11. Persons Deemed Owners. Prior to due presentment of a
Security for registration of transfer, the Company, the Trustee and any agent
of the Company or the Trustee may treat the Person in whose name such Security
is registered as the owner of such Security for the purpose of receiving
payment of principal of the Security or the payment of any Redemption Price,
Repurchase Price or Designated Event Repurchase Price in respect thereof or
(subject to Section 11.01) interest thereon, for the purpose of conversion and
for all other purposes whatsoever, whether or not such Security be overdue, and
neither the Company, the Trustee nor any agent of the Company or the Trustee
shall be affected by notice to the contrary.

          SECTION 2.12. Global Securities. (a) General. Notwithstanding any other
provisions of this Indenture or the Securities, (A) transfers of a Global
Security, in whole or in part, shall be made only in accordance with Section
2.06 and Section 2.12(b)(i) below, (B) transfer of a beneficial interest in a
Global Security for a Certificated Security shall comply with Section 2.06 and
Section 2.12(b)(i) below, and (C) transfers of a Certificated Security shall
comply with Section 2.06 and Section 2.12(b)(ii) and transfer of a Certificated
Security for a beneficial interest in a Global Security shall comply with
Section 2.06 and Section 2.12(b)(iii) below.

          (b) Transfer of Global Security. A Global Security may not be
transferred, in whole or in part, to any Person other than the Depositary or a
nominee or any successor thereof, and no such transfer to any such other Person
may be registered; provided that this Section 2.12(b) shall not prohibit any
transfer of a Security that is issued in exchange for a Global

16

 

Security but is
not itself a Global Security. No transfer of a Security to any Person shall be
effective under this Indenture or the Securities unless and until such Security
has been registered in the name of such Person. Nothing in this Section
2.12(b) shall prohibit or render ineffective any transfer of a beneficial
interest in a Global Security effected in accordance with the other provisions
of this Section 2.12(b).

     (i) Restrictions on Transfer of a Beneficial Interest in a Global
Security for a Certificated Security. A beneficial interest in a Global
Security may not be exchanged for a Certificated Security except upon
satisfaction of the requirements set forth below and in Section 2.12(f).
Upon receipt by the Trustee of a request for transfer of a beneficial
interest in a Global Security in accordance with Applicable Procedures
for a Certificated Security, in the form reasonably satisfactory to the
Trustee, together with:

     (A) so long as the Securities are Restricted Securities,
certification, in the form set forth in Exhibit B;

     (B) written instructions to the Trustee to make, or direct the
Registrar to make, an adjustment on its books and records with respect to
such Global Security to reflect a decrease in the aggregate Principal
Amount of the Securities represented by the Global Security, such
instructions to contain information regarding the Depositary account to
be credited with such decrease; and

     (C) if the Company so requests, an Opinion of Counsel or other
evidence reasonably satisfactory to it as to the compliance with the
restrictions set forth in the Legend,

then the Trustee shall cause, or direct the Registrar to cause, in
accordance with the standing instructions and procedures existing between
the Depositary and the Registrar, the aggregate Principal Amount of
Securities represented by the Global Security to be decreased by the
aggregate Principal Amount of the Certificated Security to be issued,
shall authenticate and deliver such Certificated Security and shall debit
or cause to be debited to the account of the Person specified in such
instructions a beneficial interest in the Global Security equal to the
Principal Amount of the Certificated Security so issued.

     (ii) Transfer and Exchange of Certificated Securities. When
Certificated Securities are presented to the Registrar with a request:

	(x)	 	to register the transfer of such
Certificated Securities; or
	 
	(y)	 	to exchange such Certificated
Securities for an equal Principal Amount of Certificated
Securities of other authorized denominations,

the Registrar shall register the transfer or make the exchange as
requested if its reasonable requirements for such transaction are met;
provided, however, that the Certificated Securities surrendered for
registration of transfer or exchange:

17

 

     (A) shall be duly endorsed or accompanied by a written instrument of
transfer in form reasonably satisfactory to the Company and the
Registrar, duly executed by the Holder thereof or his attorney duly
authorized in writing; and

     (B) so long as such Securities are Restricted Securities, such
Securities are being transferred or exchanged pursuant to an effective
registration statement under the Securities Act or, if being transferred
pursuant to clause (1), (2) or (3) below, are accompanied by the
additional information and documents specified in each clause, as
applicable:

     (1) if such Certificated Securities are being delivered to the
Registrar by a Holder for registration in the name of such Holder,
without transfer, a certification from such Holder to that effect; or

     (2) if such Certificated Securities are being transferred to the
Company, a certification to that effect; or

     (3) if such Certificated Securities are being transferred pursuant
to an exemption from registration (i) a certification to that effect (in
the form set forth in Exhibit B, if applicable) and (ii) if the Company
so requests, an Opinion of Counsel or other evidence reasonably
satisfactory to it as to the compliance with the restrictions set forth
in the Legend.

     (iii) Restrictions on Transfer of a Certificated Security for a
Beneficial Interest in a Global Security. A Certificated Security may
not be exchanged for a beneficial interest in a Global Security except
upon satisfaction of the requirements set forth below. Upon receipt by
the Trustee of a Certificated Security, duly endorsed or accompanied by
appropriate instruments of transfer, in form reasonably satisfactory to
the Trustee, together with:

     (A) so long as the Securities are Restricted Securities,
certification, in the form set forth in Exhibit B, that such Certificated
Security is being transferred in accordance with Rule 144A, Regulation S
or Rule 144; and

     (B) written instructions directing the Trustee to make, or to direct
the Registrar to make, an adjustment on its books and records with
respect to such Global Security to reflect an increase in the aggregate
Principal Amount of the Securities represented by the Global Security,
such instructions to contain information regarding the Depositary account
to be credited with such increase,

then the Trustee shall cancel such Certificated Security and cause, or
direct the Registrar to cause, in accordance with the standing
instructions and procedures existing between the Depositary and the
Registrar, the aggregate Principal Amount of Securities represented by
the Global Security to be increased by the aggregate Principal Amount of
the Certificated Security to be exchanged, and shall credit or cause to
be credited to the account of the Person specified in such instructions a
beneficial interest in the Global Security equal to the Principal Amount
of the Certificated Security so cancelled. If no

18

 

Global Securities are
then outstanding, the Company shall issue and the Trustee, upon receipt
of a Company Order, shall authenticate a new Global Security in the
appropriate Principal Amount.

          (c) Subject to the succeeding paragraph, every Security shall be subject
to the restrictions on transfer provided in the Legend including the
requirement of the delivery of an Opinion of Counsel, if so provided. Whenever
any Restricted Security is presented or surrendered for registration of
transfer or for exchange for a Security registered in a name other than that of
the Holder, such Security must be accompanied by a certificate in substantially
the form set forth in Exhibit B, dated the date of such surrender and signed by
the Holder of such Security, as to compliance with such restrictions on
transfer. The Registrar shall not be required to accept for such registration
of transfer or exchange any Security not so accompanied by a properly completed
certificate.

          (d) The restrictions imposed by the Legend upon the transferability of any
Security shall cease and terminate when such Security has been transferred
pursuant to an effective registration statement under the Securities Act or
transferred in compliance with Rule 144 or, if earlier, upon the expiration of
the holding period applicable to sales thereof under paragraph (k) of Rule 144.
Any Security as to which such restrictions on transfer shall have expired in
accordance with their terms or shall have terminated may, upon a surrender of
such Security for exchange to the Registrar in accordance with the provisions
of this Section 2.12 (accompanied, in the event that such restrictions on
transfer have terminated by reason of a transfer in compliance with Rule 144,
by an Opinion of Counsel having substantial experience in practice under the
Securities Act and otherwise reasonably acceptable to the Company, addressed to
the Company, the Trustee and the Registrar and in form acceptable to the
Company, to the effect that the transfer of such Security has been made in
compliance with Rule 144), be exchanged for a new Security, of like tenor and
aggregate Principal Amount, which shall not bear the restrictive Legend, which
Security, if a Global Security, to be in the form of an Unrestricted Global
Security. The Company shall inform the Trustee of the effective date of any
registration statement registering the Securities under the Securities Act.
The Trustee and the Registrar shall not be liable for any action taken or
omitted to be taken by it in good faith in accordance with the aforementioned
Opinion of Counsel or registration statement.

          (e) As used in the preceding two paragraphs of this Section 2.12, the term
“transfer” encompasses any sale, pledge, transfer, hypothecation or other
disposition of any Security.

          (f) The provisions of clauses (1), (2), (3), (4) and (5) below shall apply
only to Global Securities:

     (1) Notwithstanding any other provisions of this Indenture or the
Securities, a Global Security shall not be exchanged in whole or in part
for a Security registered in the name of any Person other than the
Depositary or one or more nominees thereof, provided that a Global
Security may be exchanged for Securities registered in the names of any
person designated by the Depositary in the event that (i) the Depositary
has notified the Company that it is unwilling or unable to continue as
Depositary for such Global Security or such Depositary has ceased to be a
“clearing agency” registered under the Exchange

19

 

Act, and a successor
Depositary is not appointed by the Company within 90 days; (ii) the
Company elects to discontinue use of the system of book-entry transfer
through DTC (or any successor depositary); or (iii) a Default or an Event
of Default has occurred and is continuing. Any Global Security exchanged
pursuant to clause (i) of this sub-section shall be so exchanged in whole
and not in part, and any Global Security exchanged pursuant to clause
(ii) of this sub-section may be exchanged in whole or from time to time
in part as directed by the Depositary. Any Global Security exchanged
pursuant to clause (iii) above may be exchanged in whole or from time to
time in part as directed by the Depositary upon the request of an owner
of a beneficial interest in a Global Security to receive a Certificated
Security in exchange for such interest. Any Security issued in exchange
for a Global Security or any portion thereof shall be a Global Security;
provided that any such Security so issued that is registered in the name
of a person other than the Depositary or a nominee thereof shall not be a
Global Security.

     (2) Securities issued in exchange for a Global Security or any
portion thereof shall be issued in definitive, fully registered form,
without interest coupons, shall have an aggregate Principal Amount equal
to that of such Global Security or portion thereof to be so exchanged,
shall be registered in such names and be in such authorized denominations
as the Depositary shall designate and shall bear the applicable legends
provided for herein. Any Global Security to be exchanged in whole shall
be surrendered by the Depositary to the Trustee, as Registrar. With
regard to any Global Security to be exchanged in part, either such Global
Security shall be so surrendered for exchange or, if the Trustee is
acting as custodian for the Depositary or its nominee with respect to
such Global Security, the Principal Amount thereof shall be reduced, by
an amount equal to the portion thereof to be so exchanged, by means of an
appropriate adjustment made on the records of the Trustee. Upon any such
surrender or adjustment, the Trustee shall authenticate and deliver the
Security issuable on such exchange to or upon the order of the Depositary
or an authorized representative thereof. In the event that Certificated
Securities are not issued, promptly after the Trustee has received a
request from the Depositary to issue such Certificated Securities, to any
given beneficial holder owner of Securities upon such holder’s request
pursuant to clause (iii) of Section 2.12(f)(1) above, the Company
expressly acknowledges, with respect to the right of any Holder to pursue
a remedy pursuant to Sections 6.09 and 6.10 hereof, the right of any
beneficial holder of an interest in the Securities to pursue such remedy
with respect to the portion of the Global Security that represents such
beneficial holder’s interest in the Securities as if such Certificated
Securities had been issued. Nothing in the preceding sentence shall
prejudice the rights and protections of the Trustee, any Paying Agent
(other than the Company or any Affiliate of the Company), the Registrar
or any Conversion Agent (other than the Company or any Affiliate of the
Company) under Sections 2.11 or 2.12(f)(5).

     (3) Subject to the provisions of clause (5) below, the registered
Holder may grant proxies and otherwise authorize any Person, including
Agent Members (as defined below) and persons that may hold interests
through Agent Members, to take any action which a Holder is entitled to
take under this Indenture or the Securities.

20

 

     (4) In the event of the occurrence of any of the events specified in
clause (1) above, the Company will promptly make available to the Trustee
a reasonable supply of Certificated Securities in definitive, fully
registered form, without interest coupons.

     (5) Except as provided in Section 2.12(f)(2) above, neither any
members of, or participants in, the Depositary (collectively, the “Agent
Members”) nor any other Persons on whose behalf Agent Members may act
shall have any rights under this Indenture with respect to any Global
Security registered in the name of the Depositary or any nominee thereof,
or under any such Global Security, and the Depositary or such nominee, as
the case may be, may be treated by the Company, the Trustee and any agent
of the Company or the Trustee as the absolute owner and holder of such
Global Security for all purposes whatsoever. Notwithstanding the
foregoing, nothing herein shall prevent the Company, the Trustee or any
agent of the Company or the Trustee from giving effect to any written
certification, proxy or other authorization furnished by the Depositary
or such nominee, as the case may be, or impair, as between the
Depositary, its Agent Members and any other person on whose behalf an
Agent Member may act, the operation of customary practices of such
Persons governing the exercise of the rights of a Holder of any Security.

The provisions of the “Operating Procedures of the Euroclear System” and “Terms
and Conditions Governing Use of Euroclear” and the “Management Regulations and
Instructions to Participants” of Clearstream shall be applicable to interests
in any Global Securities that are held by participants through Euroclear or
Clearstream.

          SECTION 2.13. CUSIP, CINS and ISIN Numbers. The Company in issuing the
Securities may use “CUSIP,” “CINS” and “ISIN” numbers (if then generally in
use), and, if so, the Trustee shall use CUSIP, CINS and ISIN numbers in notices
of redemption as a convenience to Holders; provided that any such notice may
state that no representation is made as to the correctness of such numbers
either as printed on the Securities or as contained in any notice of a
redemption and that reliance may be placed only on the other identification
numbers printed on the Securities, and any such redemption shall not be
affected by any defect in or omission of such numbers. The Company will
promptly notify the Trustee of any change in the CUSIP, CINS or ISIN numbers.

ARTICLE III

REDEMPTION AND REPURCHASES

          SECTION 3.01. Right to Redeem; Notices to Trustee. The Company, at its
option, may redeem the Securities in accordance with the provisions of this
Article III and paragraphs 5 and 7 of the Securities. Prior to May 18, 2011,
the Company cannot redeem the Securities. Beginning on May 18, 2011, the
Company may redeem the Securities for cash in whole at any time, or in part
from time to time. If the Company elects to redeem Securities pursuant to
paragraph 5 of the Securities, it shall notify the Trustee in writing of the
Redemption Date, the Principal Amount of Securities to be redeemed, the
Redemption Price and the amount of accrued and unpaid interest, if any, payable
on the Redemption Date.

21

 

          The Company shall give the notice to the Trustee provided for in this
Section 3.01 by a Company Order, at least 45 days before the Redemption Date
(unless a shorter notice shall be satisfactory to the Trustee), and shall give
notice to the Trustee of the election referred to in Section 3.03(3) by a
Company Order, at least two Business Days prior to the 30th day prior to the
Redemption Date (unless a shorter notice shall be satisfactory to the Trustee).

          SECTION 3.02. Selection of Securities to Be Redeemed. If less than all
the Securities are to be redeemed, the Trustee shall select the Securities to
be redeemed pro rata or by lot or by any other method the Trustee considers
fair and appropriate. The Trustee shall make the selection at least 30 days
but not more than 60 days before the Redemption Date from outstanding
Securities not previously called for redemption.

          Securities and any portions thereof that the Trustee selects shall be in
Principal Amounts of $1,000 or an integral multiple of $1,000. Provisions of
this Indenture that apply to Securities called for redemption also apply to
portions of Securities called for redemption. The Trustee shall notify the
Company promptly of the Securities or portions of Securities to be redeemed.

          If any Security selected for partial redemption is converted in part
before termination of the conversion right with respect to the portion of the
Security so selected, the converted portion of such Security shall be deemed
(so far as may be) to be the portion selected for redemption. Securities which
have been converted during a selection of Securities to be redeemed may be
treated by the Trustee as outstanding for the purpose of such selection.

          SECTION 3.03. Notice of Redemption. At least 30 days but not more than 60
days before a Redemption Date, the Company shall mail a notice of redemption by
first-class mail, postage prepaid, to each Holder of Securities to be redeemed.

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

     (1) the Redemption Date;

     (2) the Redemption Price and accrued and unpaid interest, if any,
payable on the Redemption Date;

     (3) the Conversion Rate and whether the Company will elect to pay
Holders cash in lieu of delivery of Common Stock in satisfaction of all
or part of the Company’s obligations in the event of conversions
following the notice of redemption;

     (4) the name and address of the Paying Agent and Conversion Agent;

     (5) that Securities called for redemption may be converted at any
time before the close of business on the second Business Day immediately
preceding the Redemption Date, even if not otherwise convertible at such
time;

     (6) that Holders who want to convert Securities must satisfy the
requirements set forth in paragraph 8 of the Securities;

22

 

     (7) that Securities called for redemption must be surrendered to the
Paying Agent to collect the Redemption Price and accrued and unpaid
interest, if any;

     (8) if fewer than all the outstanding Securities are to be redeemed,
the certificate number and Principal Amounts of the particular Securities
to be redeemed;

     (9) that, unless the Company defaults in making payment of such
Redemption Price and any interest which is due and payable interest (if
any) will cease to accrue on and after the Redemption Date;

     (10) the CUSIP number, CINS number and ISIN number, if applicable,
of the Securities; and

     (11) any other information the Company wants to present.

          At the Company’s request, the Trustee shall give the notice of redemption
to Holders in the Company’s name and at the Company’s expense, provided that
the Company makes such request at least ten Business Days (unless a shorter
period shall be satisfactory to the Trustee) prior to the date such notice of
redemption must be mailed.

          SECTION 3.04. Effect of Notice of Redemption. Once notice of redemption
is given, Securities called for redemption become due and payable on the
Redemption Date and at the Redemption Price (together with accrued and unpaid
interest, if any, to but not including the date of redemption) stated in the
notice except for Securities which are converted in accordance with the terms
of this Indenture; provided, however, that installments of interest on
Securities due on or prior to the Redemption Date shall be payable to the
Holders of such Securities, or one or more Predecessor Securities, registered
as such on the relevant Regular Record Date. Upon surrender to the Paying
Agent, such Securities shall be paid at the Redemption Price (together with
accrued and unpaid interest, if any, to but not including the Redemption Date)
stated in the notice.

          SECTION 3.05. Deposit of Redemption Price. Prior to 10:00 a.m. (New York
City time), on any Redemption Date, the Company shall deposit with the Paying
Agent (or if the Company or a Subsidiary or an Affiliate of either of them is
the Paying Agent, shall segregate and hold in trust) money sufficient to pay
the Redemption Price of, and any accrued and unpaid interest to but not
including the date of redemption with respect to, all Securities to be redeemed
on that date other than Securities or portions of Securities called for
redemption which on or prior thereto have been delivered by the Company to the
Trustee for cancellation or have been converted. The Paying Agent shall as
promptly as practicable return to the Company any money not required for that
purpose because of conversion of Securities pursuant to Article X. If such
money is then held by the Company in trust and is not required for such purpose
it shall be discharged from such trust.

          SECTION 3.06. Securities Redeemed in Part. Upon surrender of a Security
that is redeemed in part, the Company shall execute and the Trustee shall
authenticate and deliver to the Holder a new Security in an authorized
denomination equal in Principal Amount to the unredeemed portion of the
Security surrendered.

23

 

          SECTION 3.07. Conversion Arrangement on Call for Redemption on Specified
Dates. In connection with any redemption of Securities, the Company may
arrange for the purchase and conversion of any Securities called for redemption
by an agreement with one or more investment banks or other purchasers to
purchase such Securities by paying to the Trustee in trust for the
Securityholders, on or prior to 10:00 a.m. New York City time on the Redemption
Date, an amount that, together with any amounts deposited with the Trustee by
the Company for the redemption of such Securities, is not less than the
Redemption Price of, and any accrued and unpaid interest with respect to, such
Securities. Notwithstanding anything to the contrary contained in this Article
III, the obligation of the Company to pay the Redemption Price of such
Securities shall be deemed to be satisfied and discharged to the extent such
amount is so paid by such purchasers. If such an agreement is entered into,
any Securities not duly surrendered for conversion by the Holders thereof may,
at the option of the Company, be deemed, to the fullest extent permitted by
law, acquired by such purchasers from such Holders and (notwithstanding
anything to the contrary contained in Article X) surrendered by such purchasers
for conversion, all as of immediately prior to the close of business on the
second Business Day prior to the Redemption Date, subject to payment of the
above amount as aforesaid. The Trustee shall hold and pay to the Holders whose
Securities are selected for redemption any such amount paid to it for purchase
and conversion in the same manner as it would moneys deposited with it by the
Company for the redemption of Securities. Without the Trustee’s prior written
consent, no arrangement between the Company and such purchasers for the
purchase and conversion of any Securities shall increase or otherwise affect
any of the powers, duties, responsibilities or obligations of the Trustee as
set forth in this Indenture, and the Company agrees to indemnify the Trustee
from, and hold it harmless against, any loss, liability or expense arising out
of or in connection with any such arrangement for the purchase and conversion
of any Securities between the Company and such purchasers, including the costs
and expenses incurred by the Trustee in the defense of any claim or liability
arising out of or in connection with the exercise or performance of any of its
powers, duties, responsibilities or obligations under this Indenture.

          SECTION 3.08. Repurchase of Securities at Option of the Holder on
Specified Dates. Securities shall be repurchased by the Company in whole or in
part pursuant to the terms of the Securities at the option of the Holder on May
15, 2011, May 15, 2014 and May 15, 2019 (each, a “Repurchase Date”), at a
repurchase price of 100% of the Principal Amount plus any accrued and unpaid
interest (the “Repurchase Price”), in each case, to, but excluding, such
Repurchase Date; provided, however, that installments of interest on Securities
due on or prior to the Repurchase Date shall be payable to the Holders of such
Securities, or one or more Predecessor Securities, registered as such on the
relevant Regular Record Date. Repurchases of Securities under this Section
3.08 shall be made, at the option of the Holder thereof, upon:

          (a) delivery to the Paying Agent by a Holder of a written notice (a
“Repurchase Notice”) during the period beginning at any time from the opening
of business on the date that is 20 Business Days prior to the applicable
Repurchase Date until the close of business on the third Business Day prior to
such Repurchase Date stating:

     (A) if Certificated Securities have been issued, the certificate
numbers of the Securities that the Holder will deliver to be purchased,
or the appropriate Depository information if the Security is represented
by a Global Security,

24

 

     (B) the portion of the Principal Amount of the Securities which the
Holder will deliver to be purchased, which portion must be a Principal
Amount of $1,000 or an integral multiple thereof, and

     (C) that such Security shall be purchased as of the Repurchase Date
pursuant to the terms and conditions specified in paragraph 6 of the
Securities and in this Indenture; and

          (b) delivery or book-entry transfer of the Securities to the Paying Agent
at any time after delivery of the applicable Repurchase Notice (together with
all necessary endorsements) at the office of the Paying Agent, such delivery
being a condition to receipt by the Holder of the Repurchase Price therefor;
provided that such Repurchase Price shall be so paid pursuant to this Section
3.08 only if the Security so delivered to the Paying Agent shall conform in all
respects to the description thereof in the related Repurchase Notice.

          The Company shall repurchase from the Holder thereof, pursuant to this
Section 3.08, a portion of a Security, if the Principal Amount of such portion
is $1,000 or an integral multiple of $1,000. Provisions of this Indenture that
apply to the repurchase of all of a Security also apply to the repurchase of
such portion of such Security.

          Any repurchase by the Company contemplated pursuant to the provisions of
this Section shall be consummated by the delivery of the consideration to be
received by the Holder promptly following the later of (i) the Repurchase Date
and (ii) the time of the book-entry transfer or delivery of the Security.

          Notwithstanding anything herein to the contrary, any Holder delivering to
the Paying Agent the Repurchase Notice contemplated by this Section 3.08 shall
have the right to withdraw such Repurchase Notice at any time prior to the
close of business on the Business Day immediately preceding the Repurchase Date
by delivery of a written notice of withdrawal to the Paying Agent in accordance
with Section 3.09.

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

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

          SECTION 3.09. Effect of Repurchase Notice. Upon receipt by the Paying
Agent of the Repurchase Notice specified in Section 3.08, the Holder of the
Security in respect of which such Repurchase Notice was given shall (unless
such Repurchase Notice is validly withdrawn) thereafter be entitled to receive
solely the Repurchase Price with respect to such Security. Such Repurchase
Price shall be paid to such Holder, subject to receipt of funds and/or
Securities by the Paying Agent, promptly following the later of (x) the
Repurchase Date with respect to such Security (provided the Holder has
satisfied the conditions in Section 3.08) and

25

 

(y) the time of delivery of such
Security to the Paying Agent by the Holder thereof in the manner required by
Section 3.08. Securities in respect of which a Repurchase Notice has been
given by the Holder thereof may not be converted pursuant to Article X hereof
on or after the date of the delivery of such Repurchase Notice unless such
Repurchase Notice has first been validly withdrawn.

          A Repurchase Notice may be withdrawn by means of a written notice of
withdrawal delivered to the office of the Paying Agent at any time prior to the
close of business on the Business Day immediately preceding the Repurchase
Date, specifying:

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

     (2) the Principal Amount of the Security with respect to which such
notice of withdrawal is being submitted, and

     (3) the Principal Amount, if any, of such Security which remains
subject to the original Repurchase Notice and which has been or will be
delivered for purchase by the Company.

          SECTION 3.10. Deposit of Repurchase Price. Prior to 10:00 a.m. (New York
City time) on the Business Day following the Repurchase Date, the Company shall
deposit with the Paying Agent (or, if the Company or a Subsidiary or an
Affiliate of either of them is acting as the Paying Agent, shall segregate and
hold in trust as provided in Section 2.04) an amount of cash (in immediately
available funds if deposited on such Business Day) sufficient to pay the
aggregate Repurchase Price of all the Securities or portions thereof that are
to be repurchased as of the Repurchase Date.

          If any Security (or portion thereof) surrendered for repurchase shall not
be so paid prior to 10:00 a.m. (New York City time) on the second Business Day
following the Repurchase Date, the principal amount of such Security (or
portion thereof, as the case may be) shall, until paid, bear interest to the
extent permitted by applicable law from the first Business Day following the
Repurchase Date at the rate of 3.25% per annum.

          SECTION 3.11. Securities Repurchased in Part. Upon presentation of any
Security repurchased only in part, the Company shall execute and the Trustee
shall authenticate and make available for delivery to the Holder thereof, at
the expense of the Company, a new Security or Securities, of any authorized
denomination, in aggregate Principal Amount equal to the unrepurchased portion
of the Securities presented.

          SECTION 3.12. Repayment to the Company. Subject to Section 8.02, the
Paying Agent shall return to the Company any cash that remains unclaimed,
together with interest, if any, thereon, held by it for the payment of the
Repurchase Price; provided that to the extent that the aggregate amount of cash
deposited by the Company pursuant to Section 3.10 exceeds the aggregate
Repurchase Price of the Securities or portions thereof which the Company

26

 

is obligated to purchase as of the Repurchase Date then, unless otherwise agreed
in writing with the Company, promptly after the Business Day following the
Repurchase Date, the Paying Agent shall return any such excess to the Company
together with interest, if any, thereon.

          SECTION 3.13. Repurchase of Securities at Option of the Holder Upon A
Designated Event. In the event that a Designated Event shall occur, then each
Holder shall have the right, at the Holder’s option, to require the Company to
repurchase, and upon the exercise of such right the Company shall repurchase,
all of such Holder’s Securities, or any portion of the principal amount thereof
that is equal to $1,000 or any integral multiple of $1,000 in excess thereof,
on the date (the “Designated Event Repurchase Date”) that is 30 days after the
date of the Designated Event Notice (as defined in Section 3.14(a)) at a
purchase price (the “Designated Event Repurchase Price”) equal to 100% of the
principal amount of the Securities to be repurchased, interest, if any, accrued
but unpaid to, but excluding, the Designated Event Repurchase Date, plus, if a
Fundamental Change has occurred and all of the consideration for Common Stock
in the transaction or transactions constituting the Fundamental Change consists
of cash (a “Cash Buy-out”), a premium described below (the “Make-Whole
Premium”); provided, however, that installments of interest on Securities due
on or prior to the Designated Event Repurchase Date shall be payable to the
Holders of such Securities, or one or more Predecessor Securities, registered
as such on the relevant Regular Record Date. In the event that the Designated
Event Repurchase Date is a date between a Regular Record Date and the
corresponding Interest Payment Date, the Company shall pay interest on the
Securities being repurchased to the Holder who surrenders such Securities for
repurchase. Any reference herein, in any context, to the principal of any
Security as of any time, shall be deemed to include a reference to the
Designated Event Repurchase Price payable in respect of such Security to the
extent that such Designated Event Repurchase Price is, was or would be so
payable at such time, and express mention of the Designated Event Repurchase
Price in any provision hereof shall not be construed as excluding the
Designated Event Repurchase Price in such provision when such express mention
is not made.

          The Make-Whole Premium per $1,000 Principal Amount of Securities shall
equal (a) the average Closing Trading Price of $1,000 Principal Amount of
Securities for the five Trading Days immediately prior to the Company’s public
announcement of the Cash Buy-out, less (b) the greater of (i) $1,000 or (ii)
the product of (x) average Closing Sale Price of Common Stock for the five
Trading Days immediately prior to the Company’s public announcement of the Cash
Buy-out and (y) the applicable Conversion Rate. The Make-Whole Premium, if
any, will not be less than zero.

          SECTION 3.14. Notices; Method of Exercising Repurchase Right, Etc. (a)
Unless the Company shall have theretofore called for redemption all of the
Securities, on or before the 30th day after the occurrence of a Designated
Event, the Company or, at the request and expense of the Company, the Trustee,
shall give to all Holders of Securities, notice (the “Designated Event Notice”)
of the occurrence of the Designated Event and of the repurchase right set forth
herein arising as a result thereof. If the Company gives such Designated Event
Notice to Holders, it shall also give such Designated Event Notice to the
Trustee. The Trustee shall not be charged with notice or knowledge of a
Designated Event until it shall have received a copy of such Designated Event
Notice.

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          Each Designated Event Notice shall describe such Designated Event, shall
state that as a result of the occurrence of such Designated Event the Holder
has the right to require the Company to repurchase the Holder’s Securities in
whole or in part and shall state:

     (i) the Designated Event Repurchase Date,

     (ii) the date by which the repurchase right must be exercised
pursuant to Section 3.14(b),

     (iii) the Designated Event Repurchase Price,

     (iv) a description of the procedure which a Holder must follow to
exercise a repurchase right, and the place or places where such
Securities are to be surrendered for payment of the Designated Event
Repurchase Price,

     (v) that on the Designated Event Repurchase Date the Designated
Event Repurchase Price will become due and payable upon each such
Security designated by the Holder to be repurchased (unless such Holder
exercises its right to convert such Security pursuant to Article X of
this Indenture), and that interest thereon shall cease to accrue on and
after said date with respect to any Security designated by the Holder to
be repurchased,

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

     (vii) the place or places that the notice described in Section
3.14(b) shall be delivered, and the form of such notice.

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

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

          (b) To exercise a repurchase right following a Designated Event, a Holder
shall deliver to the Trustee or any Paying Agent on or before the 30th day
after the date of the Designated Event Notice (i) written notice of the
Holder’s exercise of such right (a “Designated Event Repurchase Exercise
Notice”), which notice shall set forth the name of the Holder, the certificate
number of the Securities to be repurchased (and, if any Security is to
repurchased in part, the portion of the principal amount thereof to be
repurchased (which portion must be a Principal Amount of $1,000 or an integral
multiple thereof)), and the name of the Person in which the portion thereof to
remain outstanding after such repurchase is to be registered and a statement
that an election to exercise the repurchase right pursuant to this Section
3.14(b) is being made thereby with respect to the Securities so specified for
repurchase in such notice and (ii) delivery or book-entry transfer of the
Securities to the Paying Agent at any time after delivery of the applicable
Designated Event Notice (together with all necessary endorsements) at

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the office of the Paying Agent, such delivery being a condition to receipt by the
Holder of the Designated Event Repurchase Price therefor; provided that such
Designated Event Repurchase Price shall be so paid pursuant to this Section
3.14 only if the Security so delivered to the Paying Agent shall conform in all
respects to the description thereof in the related Designated Event Repurchase
Exercise Notice. Securities in respect of which a Designated Event Repurchase
Exercise Notice has been given by the Holder thereof may not be converted
pursuant to Article X hereof on or after the date of the delivery of such
Designated Event Repurchase Exercise Notice unless such Designated Event
Repurchase Exercise Notice has first been validly withdrawn.

     A Designated Event Repurchase Exercise Notice may be withdrawn by means of
a written notice of withdrawal delivered to the office of the Paying Agent at
any time prior to the close of business on the Business Day immediately
preceding the Designated Event Repurchase Date, specifying:

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

     (2) the Principal Amount of the Security with respect to which such
notice of withdrawal is being submitted, and

     (3) the Principal Amount, if any, of such Security which remains
subject to the original Designated Event Repurchase Exercise Notice and
which has been or will be delivered for purchase by the Company.

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

          (c) If the Holder of a Security exercises a repurchase right in accordance
with this Section, the Company shall, prior to 10:00 a.m. (New York City time)
on the Business Day following the Designated Event Repurchase Date, deposit
with the Paying Agent (or, if the Company or a Subsidiary or an Affiliate of
either of them is acting as the Paying Agent, shall segregate and hold in trust
as provided in Section 2.04) the Designated Event Repurchase Price in cash (in
immediately available funds if deposited on such Business Day) for payment to
such Holder together with accrued and unpaid interest, if any, to but excluding
the Designated Event Repurchase Date payable with respect to the Securities as
to which such Holder has exercised the repurchase right; provided, however,
that installments of interest due on or prior to the Designated Event
Repurchase Date shall be payable in cash to the Holders of such Securities, or
one or more Predecessor Securities, registered as such at the close of business
on the relevant Regular Record Date, in each case according to the terms and
provisions of Article XI of this Indenture.

          (d) If any Security (or portion thereof) surrendered for repurchase shall
not be so paid prior to 10:00 a.m. (New York City time) on the second Business
Day following the Designated Event Repurchase Date, the principal amount of
such Security (or portion thereof, as the case may be) shall, until paid, bear
interest to the extent permitted by applicable law from the

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first Business Day following the Designated Event Repurchase Date at the rate of 3.25% per annum.

          (e) With respect to any Security which is to be repurchased only in part,
the Trustee shall authenticate and make available for delivery to the Holder of
such Security without service charge, a new Security or Securities, containing
identical terms and conditions, each in an authorized denomination in aggregate
principal amount equal to and in exchange for the unrepurchased portion of the
principal of the Security so surrendered.

          (f) Any purchase by the Company contemplated pursuant to the provisions of
this Section shall be consummated by the delivery of the consideration to be
received by the Holder promptly following the later of (i) the Designated Event
Repurchase Date and (ii) the time of the book-entry transfer or delivery of the
Security.

          (g) Subject to Section 8.02, the Paying Agent shall return to the Company
any cash that remains unclaimed, together with interest, if any, thereon, held
by it for the payment of the Designated Event Repurchase Price; provided that
to the extent that the aggregate amount of cash deposited by the Company
pursuant to Section 3.14(c) exceeds the aggregate Designated Event Repurchase
Price of, plus accrued interest, if any, to but excluding the Designated Event
Repurchase Date payable with respect to, the Securities or portions thereof
which the Company is obligated to purchase as of the Designated Event
Repurchase Date then, unless otherwise agreed in writing with the Company,
promptly after the Business Day following the Designated Event Repurchase Date,
the Paying Agent shall return any such excess to the Company together with
interest, if any, thereon.

ARTICLE IV

COVENANTS

          SECTION 4.01. Payment of Securities. The Company shall promptly make all
payments in respect of the Securities on the dates and in the manner provided
in the Securities or pursuant to this Indenture. Any amounts to be given to
the Trustee or Paying Agent shall be deposited with the Trustee or Paying Agent
by 10:00 a.m., New York City time on the due date, by the Company. The
Principal Amount, Redemption Price, Repurchase Price, Designated Event
Repurchase Price and interest, if any, shall be considered paid on the
applicable date due if on such date (or, in the case of a Repurchase Price or
Designated Event Repurchase Price, on the Business Day following the applicable
Repurchase Date or Designated Event Repurchase Date, as the case may be) the
Trustee or the Paying Agent holds, in accordance with this Indenture, money or
securities, if permitted hereunder, sufficient to pay all such amounts then
due.

          The Company shall, to the extent permitted by law, pay interest on overdue
amounts at the rate per annum set forth in paragraph 1 of the Securities,
compounded semiannually, which interest shall accrue from the date such overdue
amount was originally due to the date payment of such amount, including
interest thereon, has been made or duly provided for. All such interest shall
be payable on demand. The accrual of such interest on overdue amounts shall be
in lieu of, and not in addition to, the continued accrual of interest.

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          SECTION 4.02. SEC and Other Reports. The Company shall deliver to the
Trustee, within 30 days after it files such annual and quarterly reports,
information, documents and other reports with the SEC, copies of its annual and
quarterly reports 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 15(d) of the Exchange Act. The Company also shall
comply with the provisions of TIA Section 314(a). Delivery of such reports,
information and documents to the Trustee is for informational purposes only and
the Trustee’s receipt of the same shall not constitute constructive notice of
any information contained therein or determinable from information contained
therein, including the Company’s compliance with any of its covenants hereunder
(as to which the Trustee is entitled to rely exclusively on Officer’s
Certificates).

          SECTION 4.03. Compliance Certificate. The Company shall deliver to the
Trustee within 120 days after the end of each fiscal year of the Company
(beginning with the fiscal year ending on March 25, 2005) an Officer’s
Certificate, stating whether or not to the best knowledge of the signer thereof
the Company is in default in the performance and observance of any of the
terms, provisions and conditions of this Indenture (without regard to any
period of grace or requirement of notice provided hereunder) and if the Company
shall be in default, specifying all such defaults and the nature and status
thereof of which they may have knowledge.

          SECTION 4.04. Further Instruments and Acts. Upon request of the Trustee,
the Company will 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.

          SECTION 4.05. Maintenance of Office or Agency. The Company will maintain
in the Borough of Manhattan, The City of New York, an office or agency of the
Trustee, Registrar, Paying Agent and Conversion Agent where Securities may be
presented or surrendered for payment, where Securities may be surrendered for
registration of transfer, exchange, purchase, redemption or conversion and
where notices and demands to or upon the Company in respect of the Securities
and this Indenture may be served. The office of the Trustee, 59 Maiden Lane,
New York, NY 10038 (Attention: Corporate Trust Department), shall initially be
such office or agency for all of the aforesaid purposes. The Company shall
give prompt written notice to the Trustee of the location, and of any change in
the location, of any such office or agency (other than a change in the location
of the office of the Trustee). If at any time the Company shall fail to
maintain any such required office or agency or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and
demands may be made or served at the address of the Trustee set forth in
Section 12.02.

          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, for such purposes.

          SECTION 4.06. Delivery of Certain Information. At any time when the
Company is not subject to Section 13 or 15(d) of the Exchange Act, upon the
request of a Holder or any beneficial holder of Securities or shares of Common
Stock which are restricted securities

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issued upon conversion thereof, the
Company will promptly furnish or cause to be furnished Rule 144A Information to
such Holder or any beneficial holder of Securities or holder of shares of
Common Stock issued upon conversion of Securities, or to a prospective
purchaser of any such security designated by any such holder, as the case may
be, to the extent required to permit compliance by such Holder or holder with
Rule 144A under the Securities Act in connection with the resale of any such
security. “Rule 144A Information” shall be such information as is specified
pursuant to Rule 144A(d)(4) under the Securities Act.

          SECTION 4.07. Covenant to Comply With Securities Laws Upon Purchase of
Securities. In connection with any offer to purchase or purchase of Securities
under Section 3.08 or 3.13 hereof (provided that such offer or purchase
constitutes an “issuer tender offer” for purposes of Rule 13e-4 (which term, as
used herein, includes any successor provision thereto) under the Exchange Act
at the time of such offer or purchase), the Company shall to the extent
applicable (i) comply with Rule 13e-4 and Rule 14e-1 under the Exchange Act,
(ii) file the related Schedule TO (or any successor schedule, form or report)
under the Exchange Act, and (iii) otherwise comply with all Federal and state
securities laws so as to permit the rights and obligations under Sections 3.08
and 3.13 to be exercised in the time and in the manner specified in Sections
3.08 and 3.13.

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ARTICLE V

CONSOLIDATION, MERGER OR SALE BY THE COMPANY

          SECTION 5.01. Consolidation, Merger or Sale of Assets by the Company
Permitted. The Company may not merge or consolidate with or into any other
corporation or sell, convey, transfer, lease or otherwise dispose of all or
substantially all of its properties and assets to any Person, unless (i)(A) in
the case of a merger or consolidation, the Company is the surviving corporation
or (B) in the case of a merger or consolidation where the Company is not the
surviving corporation and in the case of any such sale, conveyance, transfer,
lease or other disposition, the resulting successor or acquiring Person is a
corporation organized and existing under the laws of the United States, any
State thereof or the District of Columbia and such corporation expressly
assumes by supplemental indenture in a form reasonably satisfactory to the
Trustee all the obligations of the Company under the Securities and under this
Indenture, (ii) immediately thereafter, giving effect to such merger or
consolidation, or such sale, conveyance, transfer, lease or other disposition,
no Default or Event of Default shall have occurred and be continuing and (iii)
the Company has delivered to the Trustee an Officer’s Certificate and an
Opinion of Counsel each stating that such merger or consolidation, or such
sale, conveyance, transfer, lease or other disposition, complies with this
Article V and that all conditions precedent relating to such transaction have
been complied with as herein provided.

          SECTION 5.02. Successor Corporation Substituted. Upon any merger or
consolidation of the Company with or into any other corporation or any sale,
conveyance, transfer, lease or other disposition of all or substantially all of
the assets of the Company to any other Person, the successor corporation formed
by such consolidation or into which the Company is merged or the Person to
which such sale, conveyance, transfer, lease or other disposition is made shall
succeed to, and be substituted for, and may exercise every right and power of,
the Company under this Indenture with the same effect as if such successor
Person has been named as the Company herein, and thereafter, except in the case
of a lease to another Person, the Company shall be relieved of all obligations
and covenants under this Indenture and the Securities.

ARTICLE VI

DEFAULTS AND REMEDIES

          SECTION 6.01. Events of Default. An “Event of Default” occurs with
respect to the Securities if (regardless of the reason for such Event of
Default and whether it shall be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body):

     (1) the Company defaults in the payment of any interest on any
Security when the same becomes due and payable and such default continues
for a period of 30 days;

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     (2) the Company defaults in the payment of the Principal Amount,
Redemption Price, Repurchase Price or Designated Event Repurchase Price
on any Security when the same becomes due and payable;

     (3) the Company defaults in the performance of, or breaches, any
covenant or warranty of the Company in this Indenture with respect to any
Security (other than a covenant or warranty a default in whose
performance or whose breach is elsewhere in this Section 6.01
specifically dealt with), and such default or breach continues for a
period of 60 days after there has been given, by registered or certified
mail, to the Company by the Trustee or to the Company and the Trustee by
the Holders of at least 25% in aggregate Principal Amount of the
Securities then outstanding, a written notice specifying such default or
breach and requiring it to be remedied and stating that such notice is a
“Notice of Default” hereunder;

     (4) the Company or any Subsidiary of the Company defaults in the
payment of any principal, interest or premium in an aggregate amount of
$20,000,000 or more, with respect to any indebtedness of the Company or
any indebtedness of any of the Subsidiaries of the Company, or any such
indebtedness in an aggregate amount of $20,000,000 or more is
accelerated, which default is not cured or waived, or such acceleration
rescinded or annulled, within 30 days after there has been received, by
registered or certified mail, by the Company or such Subsidiary, as the
case may be, from the Trustee, or by the Company or such Subsidiary, as
the case may be, and the Trustee from the Holders of at least 25% in
aggregate Principal Amount of the Securities then outstanding, a Notice
of Default;

     (5) any final judgment or judgments for the payment of money in
excess of $20,000,000 is rendered against the Company or any of its
Subsidiaries and is not discharged for any period of 30 consecutive days
during which a stay of enforcement is not in effect;

     (6) the Company or any of its Significant Subsidiaries pursuant to
or within the meaning of any Bankruptcy Law (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

     (7) a court of competent jurisdiction enters an order or decree
under any Bankruptcy Law that (A) is for relief against the Company or
any of its Significant Subsidiaries in any involuntary case, (B) appoints
a Custodian of the Company or any of its Significant Subsidiaries or for
all or substantially all of its property, or (C) orders the liquidation
of the Company or any of its Significant Subsidiaries and the order or
decree remains unstayed and in effect for 90 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.

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          SECTION 6.02. Acceleration; Rescission and Annulment. If an Event of
Default with respect to the Securities occurs and is continuing, the Trustee or
the Holders of at least 25% in aggregate Principal Amount of all Securities
then outstanding, by written notice to the Company (and, if given by the
Holders, to the Trustee), may declare the principal of all the Securities to be
due and payable and upon any such declaration such principal and any accrued
and unpaid interest thereon to the date of such declaration shall be
immediately due and payable.

          At any time after such a declaration of acceleration has been made and
before a judgment or decree for payment of the money due has been obtained by
the Trustee as hereinafter in this Article VI provided, the Holders of a
majority in aggregate Principal Amount of the Securities, by written notice to
the Company and the Trustee, may rescind and annul such declaration and its
consequences if all existing Defaults and Events of Default with respect to the
Securities, other than the non-payment of the principal of and interest, if
any, on the Securities that has become due solely by such declaration of
acceleration, have been cured or waived as provided in Section 6.07 and if all
sums paid or advanced by the Trustee hereunder and the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel
have been paid. No such rescission shall affect any subsequent default or
impair any right consequent thereon.

          SECTION 6.03. Collection of Indebtedness and Suits for Enforcement by
Trustee. The Company covenants that, if:

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

     (2) default is made in the payment of the Principal Amount,
Redemption Price, Repurchase Price or Designated Event Repurchase Price
on any Security when the same becomes due and payable,

the Company will, upon demand of the Trustee, pay to the Trustee, for the
benefit of the Holders of such Securities, the whole amount then due and
payable on such Securities for principal, premium, if any, and interest, if
any, and, to the extent that payment of such interest shall be legally
enforceable, interest on any overdue principal and premium, if any, and on any
overdue interest, at the rate or rates prescribed therefor in such Securities,
and, in addition thereto, such further amount as shall be sufficient to cover
the costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.

          If the Company fails to pay such amounts forthwith upon such demand, the
Trustee, in its own name and as trustee of an express trust, may institute a
judicial proceeding for the collection of the sums so due and unpaid, may
prosecute such proceeding to judgment or final decree, and may enforce the same
against the Company or any other obligor upon such Securities and collect the
moneys adjudged or decreed to be payable in the manner provided by law out of
the property of the Company or any other obligor upon such Securities wherever
situated.

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

          SECTION 6.04. Trustee May File Proofs of Claim. In case of the pendency
of any receivership, insolvency, liquidation, bankruptcy, reorganization,
arrangement, adjustment, composition or other judicial proceedings, or any
voluntary or involuntary case under the federal bankruptcy laws, as now or
hereafter constituted, relative to the Company or any other obligor upon the
Securities or the property of the Company or of such other obligor or their
creditors, the Trustee (irrespective of whether the principal in respect of the
Securities shall then be due and payable as therein expressed or by declaration
of acceleration or otherwise and irrespective of whether the Trustee shall have
made any demand on the Company for the payment of any such amount) shall be
entitled and empowered, by intervention in such proceeding or otherwise,

     (i) to file and prove a claim for the whole amount of principal and
interest, if any, owing and unpaid in respect of the Securities and to
file such other papers or documents as may be necessary or advisable in
order to have the claims of the Trustee (including any claim for the
reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel) and of the Holders of such Securities
allowed in such judicial proceeding, and

     (ii) to collect and receive any moneys or other property payable or
deliverable on any such claims and to distribute the same;

and any receiver, assignee, trustee, custodian, liquidator, sequestrator (or
other similar official) in any such proceeding is hereby authorized by each
such 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 such Holders,
to pay to 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.

          SECTION 6.05. Trustee May Enforce Claims Without Possession of Securities.
All rights of action and claims under this Indenture or the Securities may be
prosecuted and enforced by the Trustee without the possession of any of the
Securities or the production thereof in any proceeding relating thereto, and
any such proceeding instituted by the Trustee shall be brought in its own name,
as trustee of an express trust, and any recovery of judgment shall, after
provision for the payment of the reasonable compensation, expenses,

36

 

disbursements and advances of the Trustee, its agents and counsel, be for the
ratable benefit of the Holders of the Securities in respect of which such
judgment has been recovered.

          SECTION 6.06. Delay or Omission Not Waiver. No delay or omission by the
Trustee or any Holder of any Security to exercise any right or remedy accruing
upon any Event of Default shall impair any such right or remedy or constitute a
waiver of or acquiescence in any such Event of Default. Every right and remedy
given by this Indenture or by law to the Trustee or to the Holders may be
exercised from time to time, and as often as may be deemed expedient, by the
Trustee or by the Holders, as the case may be.

          SECTION 6.07. Waiver of Past Defaults. The Holders of not less than a
majority in aggregate Principal Amount of the Securities, by notice to the
Trustee, may waive on behalf of the Holders of the Securities a past Default or
Event of Default and its consequences except (i) a Default or Event of Default
in the payment of the Principal Amount, Redemption Price, Repurchase Price or
Designated Event Repurchase Price, premium, if any, or interest, if any, on any
Security, unless the same shall have been paid in full or (ii) in respect of a
covenant or provision hereof which pursuant to Section 9.02 cannot be amended
or modified without the consent of all affected Holders. Upon any such waiver,
such Default shall cease to exist, and any Event of Default arising therefrom
shall be deemed to have been cured, for every purpose of this Indenture, but no
such waiver shall extend to any subsequent or other default or impair any right
consequent thereon.

          SECTION 6.08. Control by Majority. The Holders of not less than a
majority in aggregate Principal Amount of the Securities shall have the right
to direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee or exercising any trust or power conferred on
the Trustee with respect to the Securities; provided, however, that (i) the
Trustee may refuse to follow any direction that conflicts with law or this
Indenture, (ii) subject to Section 7.01, the Trustee may refuse to follow any
direction that would in the good faith judgment of the Trustee have a
substantial likelihood of involving the Trustee in personal liability and (iii)
the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction.

          SECTION 6.09. Limitation on Suits by Holders. No Holder of the Securities
shall have any right to institute any proceeding, judicial or otherwise, with
respect to this Indenture, or for the appointment of a receiver or trustee, or
for any other remedy hereunder, unless:

     (1) such Holder has previously given written notice to the Trustee
of a continuing Event of Default with respect to the Securities;

     (2) the Holders of at least 25% in aggregate Principal Amount of the
Securities have made a written request to the Trustee to institute
proceedings in respect of such Event of Default in its own name as
Trustee hereunder;

     (3) such Holder or Holders have offered to the Trustee indemnity
satisfactory to the Trustee against any loss, cost, liability or expense
to be, or which may be, incurred by the Trustee in pursuing the remedy;

37

 

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

     (5) during such 60-day period, the Holders of a majority in
aggregate Principal Amount of the Securities have not given to the
Trustee a direction inconsistent with such written request.

          No one or more Holders shall have any right in any manner whatever by
virtue of, or by availing of, any provision of this Indenture to affect,
disturb or prejudice the rights of any other of such Holders, or to obtain or
to seek to obtain priority or preference over any other of such Holders or to
enforce any right under this Indenture, except in the manner herein provided
and for the equal and ratable benefit of all of such Holders. For the
protection and enforcement of the provisions of this Section 6.09, each and
every Holder of the Securities and the Trustee shall be entitled to such relief
as can be given at law or in equity.

          SECTION 6.10. Rights of Holders to Receive Payment. Notwithstanding any
other provision of this Indenture, the right of any Holder of the Securities to
receive payment of the Principal Amount, Redemption Price, Repurchase Price or
Designated Event Repurchase Price on any Security when the same becomes due and
payable, premium, if any, and, subject to Section 11.01, interest, if any, on
the Securities, on or after due dates therefor (or, in case of redemption or
repurchase, on the relevant redemption or repurchase dates) shall not be
impaired or affected without the consent of such Holder.

          SECTION 6.11. Application of Money Collected. If the Trustee collects any
money pursuant to this Article VI, it shall pay out the money in the following
order, at the date or dates fixed by the Trustee and, in case of the
distribution of such money on account of principal or interest, if any, upon
presentation of the Securities and the notation thereon of the payment if only
partially paid and upon surrender thereof if fully paid:

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

     Second: to Holders of Securities in respect of which or for the
benefit of which such money has been collected for amounts due and unpaid
on such Securities for principal of, premium, if any, and interest, if
any, ratably, without preference or priority of any kind, according to
the amounts due and payable on such Securities for principal, premium, if
any, and interest, if any, respectively; and

     Third: the balance, if any, to the Company.

          SECTION 6.12. Restoration of Rights and Remedies. If the Trustee or any
Holder has instituted any proceeding to enforce any right or remedy under this
Indenture and such proceeding has been discontinued or abandoned for any
reason, or has been determined adversely to the Trustee or to such Holder, then
and in every such case, subject to any determination in such proceeding, the
Company, the Trustee and the Holders shall be restored severally and
respectively to their former positions hereunder and thereafter all rights and
remedies of the Trustee and the Holders shall continue as though no such
proceeding had been instituted.

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          SECTION 6.13. Rights and Remedies Cumulative. Except as otherwise
provided in Section 2.07 with respect to the replacement or payment of
mutilated, destroyed, lost or stolen Securities, no right or remedy herein
conferred upon or reserved to the Trustee or the Holders is intended to be
exclusive of any other right or remedy, and every right and remedy shall, to
the extent permitted by law, be cumulative and in addition to every other right
and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any
other appropriate right or remedy.

          SECTION 6.14. 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, suffered or omitted by it as Trustee, a court may require
any party litigant in such suit to file an undertaking to pay the costs of such
suit, and may assess costs against any such party litigant, in the manner and
to the extent provided in the Trust Indenture Act; provided that neither this
Section nor the Trust Indenture Act shall be deemed to authorize any court to
require such an undertaking or to make such an assessment in any suit
instituted by the Company or by the Trustee.

          SECTION 6.15. Waiver of Stay or Extension Laws. The Company covenants (to
the extent that it may lawfully do so) that it will not at any time insist
upon, or plead, or in any manner whatsoever claim or take the benefit or
advantage of, any stay or extension law wherever enacted, now or at any time
hereafter in force, which may affect the covenants or the performance of this
Indenture; and the Company (to the extent that it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law, and covenants that
it will not hinder, delay or impede the execution of any power herein granted
to the Trustee, but will suffer and permit the execution of every such power as
though no such law had been enacted.

ARTICLE VII

TRUSTEE

          SECTION 7.01. Duties of Trustee. (a) If an Event of Default has occurred
and is continuing, the Trustee shall exercise the rights and powers vested in
it by this Indenture and use the same degree of care and skill in its exercise
as a prudent person would exercise or use under the circumstances in the
conduct of such person’s own affairs.

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

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

     (2) in the absence of bad faith on its part, the Trustee may
conclusively rely, as to the truth of the statements and the correctness
of the opinions expressed therein, upon certificates or opinions
furnished to the Trustee and conforming to the requirements of this
Indenture, but in 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

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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.

This Section 7.01(b) shall be in lieu of Section 315(a) of the TIA and such
Section 315(a) is hereby expressly excluded from this Indenture, as permitted
by the TIA.

          (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:

     (1) this paragraph (c) does not limit the effect of paragraph (b) of
this Section 7.01;

     (2) 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;

     (3) 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 6.08; and

     (4) the Trustee may refuse to perform any duty or exercise any right
or power or extend or risk its own funds or otherwise incur any financial
liability unless it receives indemnity satisfactory to it against any
loss, liability or expense.

          Subparagraphs (c)(1), (2) and (3) shall be in lieu of Sections 315(d)(1),
315(d)(2) and 315(d)(3) of the TIA and such Sections 315(d)(1), 315(d)(2) and
315(d)(3) are hereby expressly excluded from this Indenture, as permitted by
the TIA.

          (c) Every provision of this Indenture that in any way relates to the
Trustee is subject to paragraphs (a), (b) and (c) of this Section 7.01.

          (d) Money held by the Trustee in trust hereunder need not be segregated
from other funds except to the extent required by law. The Trustee (acting in
any capacity hereunder) shall be under no liability for interest on any money
received by it hereunder unless otherwise agreed in writing with the Company.

          SECTION 7.02. Rights of Trustee. Subject to its duties and
responsibilities under the provisions of Section 7.01, and, except as expressly
excluded from this Indenture pursuant to said Section 7.01, subject also to its
duties and responsibilities under the TIA:

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

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

          (c) the Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents or
attorneys and the Trustee shall not be responsible for any misconduct or
negligence on the part of any agent or attorney appointed with due care by it
hereunder;

          (d) the Trustee shall not be liable for any action taken, suffered, or
omitted to be taken by it in good faith which it believes to be authorized or
within its rights or powers conferred under this Indenture;

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

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

          (g) 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 may be sufficiently evidenced by a resolution of the
Board of Directors certified by the Secretary or an Assistant Secretary of the
Company to have been duly adopted and to be in full force and effect on the
date of such certification;

          (h) the Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture,
note, other evidence of indebtedness or other paper or document, but the
Trustee, in its discretion, may make such further inquiry or investigation into
such facts or matters as it may see fit, and, if the Trustee shall determine to
make such further inquiry or investigation, it shall be entitled to examine the
books, records and premises of the Company, personally or by agent or attorney
at the sole cost of the Company and shall incur no liability or additional
liability of any kind by reason of such inquiry or investigation;

          (i) the Trustee shall not be deemed to have notice of any Default or Event
of Default unless a Responsible Officer of the Trustee has actual knowledge
thereof or unless written notice of any event which is in fact such a default
is received by a Responsible Officer of the Trustee at the Corporate Trust
Office of the Trustee, and such notice references the Securities and this
Indenture;

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          (j) the rights, privileges, protections, immunities and benefits given to
the Trustee, including its right to be indemnified, are extended to, and shall
be enforceable by, the Trustee in each of its capacities hereunder, and to each
agent, custodian and other Person employed to act hereunder; and

          (k) the Trustee may request that the Company deliver an Officer’s
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 Officer’s Certificate may be signed by any person authorized to sign an
Officer’s Certificate, including any person specified as so authorized in any
such certificate previously delivered and not superseded.

          SECTION 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 its Affiliates with the same rights it would
have if it were not Trustee. Any Paying Agent, Registrar, Conversion Agent or
co-registrar may do the same with like rights. However, the Trustee must
comply with Sections 7.10 and 7.11.

          SECTION 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 or application of the proceeds from
the Securities, it shall not be responsible for any statement in the
registration statement for the Securities under the Securities Act or in this
Indenture or the Securities (other than its certificate of authentication), or
the determination as to which beneficial owners are entitled to receive any
notices hereunder.

          SECTION 7.05. Notice of Defaults. If a Default occurs and if it is known
to a Responsible Officer of the Trustee, the Trustee shall give to each
Securityholder notice of the Default within 90 days after such Responsible
Officer obtains knowledge of such Default unless such Default shall have been
cured or waived before the giving of such notice, provided, however, that such
notice shall not be given prior to 60 days after the occurrence of any default
of the character specified in Section 6.01(3). Except in the case of a Default
described in Section 6.01(1) or (2), the Trustee may withhold the notice if and
so long as a committee of its Responsible Officers in good faith determines
that withholding the notice is in the interests of Securityholders. The second
sentence of this Section 7.05 shall be in lieu of the proviso to Section 315(b)
of the TIA and such proviso is hereby expressly excluded from this Indenture,
as permitted by the TIA. The Trustee shall not be deemed to have knowledge of
a Default unless a Responsible Officer of the Trustee has received written
notice of such Default.

          SECTION 7.06. Reports by Trustee to Holders. Within 60 days after each
July 1 beginning with the July 1 following the date of this Indenture, the
Trustee shall mail to each Securityholder a brief report dated as of such July
1 that complies with TIA Section 313(a), if required by such Section 313(a).
The Trustee also shall comply with TIA Section 313(b)(2).

          A copy of each report at the time of its mailing to Securityholders shall
be filed with the SEC and each securities exchange, if any, on which the
Securities are listed. The Company agrees to promptly notify the Trustee
whenever the Securities become listed on any securities exchange and of any
delisting thereof.

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          SECTION 7.07. Compensation and Indemnity. The Company agrees:

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

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

          (c) to indemnify the Trustee or any predecessor Trustee and their agents
for, and to hold them harmless against, any loss, damage, claim, liability,
cost or expense (including reasonable attorney’s fees and expenses and taxes
(other than taxes based upon, measured by or determined by the income of the
Trustee)) incurred without negligence or bad faith on its part, arising out of
or in connection with the acceptance or administration of this trust, including
the reasonable costs and expenses of defending itself against any claim
(whether asserted by the Company or any Holder or any other Person) or
liability in connection with the exercise or performance of any of its powers
or duties hereunder.

          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 the Redemption
Price, Repurchase Price, Designated Event Redemption Price or interest, if any,
as the case may be, on particular Securities.

          The Company’s payment and indemnity obligations pursuant to this Section
7.07 shall survive the discharge of this Indenture and the resignation or
removal of the Trustee. Without prejudice to any other rights available to the
Trustee under applicable law, when the Trustee incurs expenses after the
occurrence of a Default specified in Section 6.01(6) or (7), the expenses
including the reasonable charges and expenses of its counsel, are intended to
constitute expenses of administration under any Bankruptcy Law.

          SECTION 7.08. Replacement of Trustee. The Trustee may resign by so
notifying the Company; provided, however, no such resignation shall be
effective until a successor Trustee has accepted its appointment pursuant to
this Section 7.08. The Holders of a majority in aggregate Principal Amount of
the Securities at the time outstanding may remove the Trustee by so notifying
the Trustee and the Company. The Company shall remove the Trustee if:

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

     (2) the Trustee is adjudged bankrupt or insolvent;

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

     (4) the Trustee otherwise becomes incapable of acting.

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

          A successor Trustee shall deliver a written acceptance of its appointment
to the retiring Trustee and to the Company satisfactory in form and substance
to the retiring Trustee and 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.

          If a successor Trustee does not take office within 30 days after the
retiring Trustee resigns or is removed, the retiring Trustee, the Company or
the Holders of a majority in aggregate Principal Amount of the Securities at
the time outstanding may petition any court of competent jurisdiction at the
expense of the Company for the appointment of a successor Trustee.

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

          SECTION 7.09. Successor Trustee by Merger. If the Trustee consolidates
with, merges or converts into, or transfers all or substantially all its
corporate trust business or assets to, another corporation, the resulting,
surviving or transferee corporation without any further act shall be the
successor Trustee.

          SECTION 7.10. Eligibility; Disqualification. The Trustee shall at all
times satisfy the requirements of TIA Sections 310(a)(1), 310(a)(5) and 310(b).
The Trustee (or its parent holding company) shall have a combined capital and
surplus of at least $10,000,000 as set forth in its most recent published
annual report of condition. Nothing herein contained shall prevent the Trustee
from filing with the Commission the application referred to in the penultimate
paragraph of TIA Section 310(b).

          SECTION 7.11. Preferential Collection of Claims Against Company. The
Trustee shall comply with TIA Section 311(a), excluding any creditor
relationship listed in TIA Section 311(b). A Trustee who has resigned or been
removed shall be subject to TIA Section 311(a) to the extent indicated therein.

ARTICLE VIII

DISCHARGE OF INDENTURE

          SECTION 8.01. Discharge of Liability on Securities. When (i) the Company
delivers to the Trustee all outstanding Securities (other than Securities
replaced or paid pursuant to Section 2.07) for cancellation or (ii) all
outstanding Securities have become due and payable and the Company irrevocably
deposits with the Trustee, the Paying Agent (if the Paying Agent is

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not the
Company or any of its Affiliates) or the Conversion Agent cash or, if expressly
permitted by the terms of the Securities or this Indenture, Common Stock
sufficient to pay all amounts due and owing on all outstanding Securities
(other than Securities replaced or paid pursuant to Section 2.07), and if in
either case the Company pays all other sums payable hereunder by the Company,
then this Indenture shall, subject to Section 7.07, cease to be of further
effect. The Trustee shall join in the execution of a document prepared by the
Company acknowledging satisfaction and discharge of this Indenture on demand of
the Company accompanied by an Officer’s Certificate and Opinion of Counsel and
at the cost and expense of the Company.

          SECTION 8.02. Repayment to the Company. The Trustee and the Paying Agent
shall return to the Company, upon a Company Request, any money or securities
held by them for the payment of any amount with respect to the Securities that
remains unclaimed for two years, subject to applicable unclaimed property law.
After return to the Company, Holders entitled to the money or securities must
look to the Company for payment as general creditors unless an applicable
abandoned property law designates another person, and the Trustee and the
Paying Agent shall have no further liability to the Securityholders with
respect to such money or securities for that period commencing after the return
thereof.

ARTICLE IX

AMENDMENTS

          SECTION 9.01. Without Consent of Holders. The Company and the Trustee may
amend this Indenture or the Securities without the consent of any
Securityholder:

     (1) to evidence the succession of another entity to the Company and
the assumption of the Company’s covenants by a successor;

     (2) to add to the Company’s covenants for the benefit of the
Securityholders;

     (3) to surrender any right or power conferred upon the Company;

     (4) to add any additional Events of Default for the Securities;

     (5) to add or change any provisions to such extent as necessary to
permit or facilitate the issuance of the Securities in bearer or in
global form;

     (6) to provide security for the Securities;

     (7) to evidence and provide for the acceptance of appointment of a
separate or successor trustee;

     (8) to correct or supplement any provision herein which may be
inconsistent with any other provision herein or to make any other
provisions with respect to matters or questions arising under this
Indenture, provided such action shall not adversely affect the interests
of Holders of Securities issued under this Indenture in any material
respect; or

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     (9) to cure any ambiguity, defect or inconsistency or to make any
other changes that do not adversely affect the interests of the Holders
of Securities issued under this Indenture in any material respect.

          If the Trust Indenture Act is amended after the date of this Indenture so
as to require changes to this Indenture or so as to permit changes to, or the
elimination of, provisions which, at the date of this Indenture or at any time
thereafter, were required by the Trust Indenture Act to be contained in this
Indenture, this Indenture will be deemed to have been amended so as to conform
to such amendment or to effect such changes or elimination, and the Company and
the Trustee may, without the consent of any Holders, enter into one or more
supplemental indentures to effect or evidence such amendment.

          SECTION 9.02. With Consent of Holders. With the written consent of the
Holders of at least a majority in aggregate Principal Amount of the Securities
at the time outstanding, the Company and the Trustee may amend this Indenture
or the Securities. However, without the consent of each Securityholder
affected, an amendment to this Indenture or the Securities may not:

     (1) change the Stated Maturity or an Interest Payment Date of the
Securities (other than pursuant to the terms thereof);

     (2) reduce the Principal Amount, Redemption Price, Repurchase Price,
Designated Event Repurchase Price, interest or premium payable or change
the currency in which the Securities are payable;

     (3) impair the right to bring suit to enforce any payment;

     (4) make any change that adversely affects the rights of any Holder
to convert any Security;

     (5) make any change that adversely affects the right of a Holder to
require the Company to repurchase the Securities;

     (6) reduce the percentage in Principal Amount of Securities whose
Holders must consent to a modification or amendment of this Indenture or
a waiver of certain Defaults;

     (7) change the Company’s obligation to maintain an office or agency
in the places and for the purposes specified in this Indenture; or

     (8) modify any of the provisions of this Section 9.02.

          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, but it
shall be sufficient if such consent approves the substance thereof.

          After an amendment under this Section 9.02 becomes effective, the Company
shall mail to each Holder a notice briefly describing the amendment, but
failure to give such notice shall not impair the validity of such amendment.

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          SECTION 9.03. Compliance with Trust Indenture Act. Every supplemental
indenture executed pursuant to this Article IX shall comply with the TIA.

          SECTION 9.04. Revocation and Effect of Consents, Waivers and Actions.
Until an amendment, consent, waiver or other action by Holders becomes
effective, a consent thereto by a Holder of a Security hereunder is a
continuing consent by the Holder and every subsequent Holder of that Security
or portion of the Security that evidences the same obligation as the consenting
Holder’s Security, even if notation of the amendment, consent, waiver or other
action is not made on the Security. However, any such Holder or subsequent
Holder may revoke the consent as to such Holder’s Security or portion of the
Security if the Trustee receives the notice of revocation before the date as of
which the amendment, consent, waiver or action is made effective. After an
amendment, consent, waiver or action becomes effective, it shall bind every
Securityholder.

          SECTION 9.05. Notation on or Exchange of Securities. Securities
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article IX may, and shall if required by the Trustee, bear a
notation in form approved by the Trustee as to any matter provided for in such
supplemental indenture. If the Company shall so determine, new Securities so
modified as to conform, in the opinion of the Board of Directors, to any such
supplemental indenture may be prepared and executed by the Company and
authenticated and delivered by the Trustee in exchange for outstanding
Securities.

          SECTION 9.06. Trustee to Sign Supplemental Indentures. The Trustee shall
sign any supplemental indenture authorized pursuant to this Article IX if the
amendment contained therein does not adversely affect the rights, duties,
liabilities or immunities of the Trustee. If it does, the Trustee may, but
need not, sign such supplemental indenture. In signing such supplemental
indenture the Trustee shall receive, and (subject to the provisions of Section
7.01) shall be fully protected in relying upon, in addition to the documents
required by Section 12.04, an Officer’s Certificate and an Opinion of Counsel
stating that such amendment is authorized or permitted by this Indenture.

          SECTION 9.07. Effect of Supplemental Indentures. Upon the execution of
any supplemental indenture under this Article IX, this Indenture shall be
modified in accordance therewith, and such supplemental indenture shall form a
part of this Indenture for all purposes; and every Holder of Securities
theretofore or thereafter authenticated and delivered hereunder shall be bound
thereby.

ARTICLE X

CONVERSION

          SECTION 10.01. Conversion Privilege. (a) A Holder of a Security may
convert such Security into shares of Common Stock at any time during the
periods and subject to the conditions stated in paragraph 8 of the Securities,
subject to the provisions of this Article X. The number of shares of Common
Stock to be delivered upon conversion of a Security per $1,000 of Principal
Amount thereof shall be equal to 38.5803 (such amount, as adjusted pursuant

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to
this Article X, the “Conversion Rate”). The Conversion Rate shall be adjusted
as set forth in this Article X.

          (b) A Holder may convert a portion of the Principal Amount of a Security
if the portion is $1,000 or an integral multiple of $1,000. Provisions of this
Indenture that apply to conversion of all of a Security also apply to
conversion of a portion of a Security.

          (c) The Company shall determine whether the Securities shall be
convertible as a result of the occurrence of an event specified in paragraph 8
of the Security and, if the Securities shall be convertible, the Company shall
promptly deliver to the Trustee written notice thereof (including notice of the
time period during which the Securities are convertible). Until receipt of
such notice, the Trustee shall be entitled to conclusively assume that the
Securities are not convertible. Whenever the Securities shall become
convertible pursuant to the foregoing condition, the Company or, at the
Company’s request, the Trustee in the name and at the expense of the Company,
shall notify the Holders of the event triggering such convertibility in the
manner provided under this Indenture, and the Company shall also publicly
announce such information and publish it on the Company’s website. Any notice
so given shall be conclusively presumed to have been duly given, whether or not
the holder receives such notice.

          SECTION 10.02. Conversion Procedure. (a) To convert a Security, all of
the requirements in paragraph 8 of the Securities must be satisfied. The date
on which all those requirements are satisfied is the conversion date (the
“Conversion Date”). Following the Conversion Date, the Company shall deliver
to the Holder through the Conversion Agent, subject to and in accordance with
Section 10.13, a certificate for the number of full shares of Common Stock
issuable upon the conversion (or, at the option of the Company as set forth in
Section 10.13, cash in lieu thereof) and cash in lieu of any fractional share
determined pursuant to Section 10.03. The Company shall determine such full
number of shares and the amounts of the required cash with respect to any
fractional share, and shall set forth such information in an Officer’s
Certificate delivered to the Conversion Agent. The Conversion Agent shall have
no duties under this paragraph unless and until it has received such
certificate.

          (b) The Person in whose name the stock certificate is registered shall be
treated as a stockholder of record on and after the Conversion Date; provided,
however, that no surrender of a Security on any date when the stock transfer
books of the Company shall be closed shall be effective to constitute the
Person or Persons entitled to receive the shares of Common Stock upon such
conversion as the record holder or holders of such shares of Common Stock on
such date, but such surrender shall be effective to constitute the Person or
Persons entitled to receive such shares of Common Stock as the record holder or
holders thereof for all purposes at the close of business on the next
succeeding day on which such stock transfer books are open; such conversion
shall be at the Conversion Rate in effect on the date that such Security shall
have been surrendered for conversion, as if the stock transfer books of the
Company had not been closed. Upon conversion of a Security, such Person shall
no longer be a Holder of such Security.

          (c) Holders may surrender a Security for conversion by means of book-entry
delivery in accordance with the regulations of the applicable book-entry
facility.

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          (d) No payment or adjustment will be made for dividends on, or other
distributions with respect to, any Common Stock except as provided in this
Article X. On conversion of a Security, accrued but unpaid interest
attributable to the period from the most recent Interest Payment Date through
the Conversion Date, with respect to the converted Security shall not be
cancelled, extinguished or forfeited, but rather shall be deemed to be paid in
full to the Holder thereof through delivery of the Common Stock (together with
the cash payment, if any, in lieu of fractional shares), or, at the option of
the Company as set forth in Section 10.13, cash in lieu thereof, in exchange
for the Security being converted pursuant to the provisions hereof; and the
fair market value of such shares of Common Stock (together with any such cash
payment in lieu of fractional shares), or, at the option of the Company as set
forth in Section 10.13, cash in lieu thereof, shall be treated as issued, to
the extent thereof, first in exchange for accrued and unpaid interest through
the Conversion Date, and the balance, if any, of such fair market value of such
Common Stock (and any such cash payment) shall be treated as issued in exchange
for the Issue Price of the Security being converted pursuant to the provisions
hereof. Notwithstanding the foregoing, accrued and unpaid interest will be
payable upon conversion of Securities made concurrently with or after
acceleration of Securities following an Event of Default.

          (e) If the Holder converts more than one Security at the same time, the
number of shares of Common Stock issuable upon conversion shall be based on the
aggregate Principal Amount of the Securities converted.

          (f) Subject to the satisfaction of the requirements for conversion set
forth in paragraph 8 of the Security and subject to the provisions of Section
3.09 and Section 3.14(b) relating to the withdrawal of a Repurchase Notice or
Designated Event Repurchase Exercise Notice, as the case may be, (i) a Security
surrendered for conversion pursuant to the provisions under the caption
“Conversion Based on Common Stock Price” set forth in paragraph 8 of the
Security may be surrendered for conversion only during the calendar quarter
specified therein, (ii) a Security being called for redemption may be
surrendered for conversion at any time prior to the close of business on the
second Business Day immediately preceding the Redemption Date, even if it is
not otherwise convertible at such time, (iii) a Security surrendered for
conversion based on the provisions under the caption “Conversion Based on the
Trading Price of Securities” set forth in paragraph 8 of the Security may be
surrendered for conversion only on the dates specified therein, (iv) a Security
surrendered for conversion based on the provisions under the caption
“Conversion Upon Certain Distributions” set forth in paragraph 8 of the
Security may be surrendered for conversion only on the dates specified therein,
and (v) a Security surrendered for conversion based on the provision under the
caption “Conversion Upon Occurrence of Certain Corporate Transactions” set
forth in paragraph 8 of the Security may be surrendered for conversion at any
time from and after the date that is 15 days prior to the date announced by the
Company as the anticipated effective date of such transaction until 15 days
after the actual date of such transaction.

          (g) Upon surrender of a Security that is converted in part, the Company
shall execute, and the Trustee shall authenticate and deliver to the Holder, a
new Security in an authorized denomination equal in Principal Amount to the
unconverted portion of the Security surrendered.

49

 

          SECTION 10.03. Fractional Shares. The Company will not issue a fractional
share of Common Stock upon conversion of a Security. Instead, the Company will
deliver cash for the current market value of the fractional share. The current
market value of a fractional share shall be determined, to the nearest
1/1,000th of a share, by multiplying the per share Closing Sale Price of the
Common Stock, on the last Trading Day prior to the Conversion Date, by the
fractional amount and rounding the product to the nearest whole cent.

          SECTION 10.04. Taxes on Conversion. If a Holder converts a Security, the
Company shall pay any documentary, stamp or similar issue or transfer tax due
on the issue of shares of Common Stock upon the conversion. However, the
Holder shall pay any such tax which is due because the Holder requests the
shares to be issued in a name other than the Holder’s name and any income tax
which is imposed on the Holder as a result of the conversion. The Conversion
Agent may refuse to deliver the certificates representing the Common Stock
being issued in a name other than the Holder’s name until the Conversion Agent
receives a sum sufficient to pay any tax which will be due because the shares
are to be issued in a name other than the Holder’s name. Nothing herein shall
preclude the Company from any tax withholding or directing the withholding of
any tax required by law or regulations.

          SECTION 10.05. Company to Provide Stock. (a) The Company shall, prior to
issuance of any Securities under this Article X, and from time to time as may
be necessary, reserve out of its authorized Common Stock that is not
outstanding a sufficient number of shares of Common Stock to permit the
conversion in full of the Securities.

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

          SECTION 10.06. Adjustment of Initial Conversion Rate. The Conversion Rate
shall be subject to adjustments, calculated by the Company, from time to time
as follows:

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

     (i) the numerator of which shall be the sum of (x) the number of
shares of Common Stock outstanding at the close of business on the Record
Date (as defined in Section 10.06(f)(iii)) fixed for such determination
and (y) the total number of shares constituting such dividend or other
distribution, and

     (ii) the denominator of which shall be the number of shares
referenced as (x) in clause (i) immediately above.

          Such increase shall become effective immediately after the opening of
business on the day following the Record Date for such dividend or other
distribution. If any dividend or

50

 

distribution of the type described in this
Section 10.06(a) is declared but not so paid or made, the Conversion Rate shall
again be adjusted to the Conversion Rate which would then be in effect if such
dividend or distribution had not been declared.

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

          (c) In case the Company shall issue rights or warrants (other than any
rights or warrants referred to in Section 10.06(d)) to all holders of its
outstanding shares of Common Stock entitling them to subscribe for or purchase
shares of Common Stock (or securities convertible into Common Stock) at a price
per share (or having a conversion price per share) less than the Current Market
Price (as defined in Section 10.06(f)(i)) on the Record Date fixed for the
determination of stockholders entitled to receive such rights or warrants, the
Conversion Rate shall be adjusted so that the same shall equal the rate
determined by multiplying the Conversion Rate in effect at the opening of
business on the date after such Record Date by a fraction:

     (i) the numerator of which shall be the number of shares of Common
Stock outstanding on the close of business on such Record Date plus the
total number of additional shares of Common Stock so offered for
subscription or purchase (or into which the convertible securities so
offered are convertible), and

     (ii) the denominator of which shall be the number of shares of
Common Stock outstanding at the close of business on such Record Date
plus the number of shares of Common Stock which the aggregate offering
price of the total number of shares of Common Stock so offered for
subscription or purchase (or the aggregate conversion price of the
convertible securities so offered) would purchase at such Current Market
Price.

          Such adjustment shall become effective immediately after the opening of
business on the day following the Record Date fixed for determination of
stockholders entitled to receive such rights or warrants. To the extent that
shares of Common Stock (or securities convertible into Common Stock) are not
delivered pursuant to such rights or warrants, upon the expiration or
termination of such rights or warrants the Conversion Rate shall be readjusted
to the Conversion Rate which would then be in effect had the adjustments made
upon the issuance of such rights or warrants been made on the basis of the
delivery of only the number of shares of Common Stock (or securities
convertible into Common Stock) actually delivered. In the event that such
rights or warrants are not so issued, the Conversion Rate shall again be
adjusted to be the Conversion Rate which would then be in effect if such Record
Date fixed for the determination of stockholders entitled to receive such
rights or warrants had not been fixed. In determining whether any rights or
warrants entitle the holders to subscribe for or purchase shares of Common
Stock at less than such Current Market Price, and in determining the aggregate
offering price of such shares of

51

 

Common Stock, there shall be taken into
account any consideration received for such rights or warrants, the value of
such consideration, if other than cash, to be determined by the Board of
Directors.

          Rights or warrants distributed by the Company to all holders of Common
Stock entitling the holders thereof to subscribe for or purchase shares of the
Company’s capital stock (either initially or under certain circumstances),
which rights or warrants, until the occurrence of a specified event or events
(“Trigger Event”):

          (x) are deemed to be transferred with such shares of Common Stock;

          (y) are not exercisable; and

          (z) are also issued in respect of future issuances of Common Stock,

shall be deemed not to have been distributed (and no adjustment to the
Conversion Rate will be required) until the occurrence of the earliest Trigger
Event. If such right or warrant is subject to subsequent events, upon the
occurrence of which such right or warrant shall become exercisable to purchase
different securities, evidences of indebtedness or other assets or entitle the
holder to purchase a different number or amount of the foregoing or to purchase
any of the foregoing at a different purchase price, then the occurrence of each
such event shall be deemed to be the date of issuance and Record Date with
respect to a new right or warrant (and a termination or expiration of the
existing right or warrant without exercise by the holder thereof). In
addition, in the event of any distribution (or deemed distribution) of rights
or warrants, or any Trigger Event or other event (of the type described in the
preceding sentence) with respect thereto, that resulted in an adjustment to the
Conversion Rate:

     (1) in the case of any such rights or warrants which shall all have
been redeemed or repurchased without exercise by any holders thereof, the
Conversion Rate shall be readjusted upon such final redemption or
repurchase to give effect to such distribution or Trigger Event, as the
case may be, as though it were a cash distribution, equal to the per
share redemption or repurchase price received by a holder of Common Stock
with respect to such rights or warrant (assuming such holder had retained
such rights or warrants), made to all holders of Common Stock as of the
date of such redemption or repurchase, and

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

          (d) In case the Company shall, by dividend or otherwise, distribute to all
holders of its Common Stock evidences of its indebtedness, securities or
capital stock (including dividends or other distributions of shares of capital
stock of any class or series, or similar equity interest, of or relating to any
of the Company’s Subsidiaries or other business units of the Company), cash or
other assets (other than those made in connection with its liquidation,
dissolution or winding up), excluding (1) any dividend or distribution to which
Section 10.06(a) applies, (2) any rights or warrants referred to in Section
10.06(c) and (3) any stock, securities or

52

 

other property or assets (including
cash) distributed in connection with a reclassification, change, merger,
consolidation, statutory share exchange, combination, sale or conveyance to
which Section 10.06(b) or Section 10.09 of this Indenture applies (any of the
foregoing hereinafter in this Section 10.06(d)) called the “Distribution”), the
Conversion Rate shall be increased so that the same shall be equal to the rate
determined by multiplying the Conversion Rate in effect immediately prior to
the close of business on the Record Date (as defined in Section 10.06(f)(iii))
with respect to such distribution by a fraction:

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

     (ii) the denominator of which shall be the Current Market Price on
such Record Date less (A) in the case of Distributions other than cash,
the fair market value (as determined by the Board of Directors, whose
determination shall be conclusive, and described in a resolution of the
Board of Directors) on the Record Date of the portion of such
Distributions applicable to one share of Common Stock and (B) in the case
of Distributions of cash, the amount of such Distributions applicable to
one share of Common Stock.

Such reduction shall become effective immediately prior to the opening of
business on the day following the Record Date for such dividend or other
distribution. However, in the event that the then fair market value (as so
determined) of the portion of the assets so distributed applicable to one share
of Common Stock is equal to or greater than the Current Market Price on the
Record Date, in lieu of the foregoing adjustment, adequate provision shall be
made so that each Holder shall have the right to receive upon conversion of a
Security (or any portion thereof) the amount of assets such Holder would have
received had such Holder converted such Security (or portion thereof)
immediately prior to such Record Date. In the event that such dividend or
distribution is not so paid or made, the Conversion Rate shall again be
adjusted to be the Conversion Rate which would then be in effect if such
dividend or distribution had not been declared except that, with respect to any
dividend or distribution consisting of Capital Stock of any class or series, or
similar equity interests, of or relating to a Subsidiary or other business unit
of the Company that is listed or quoted on the Nasdaq Stock Market or other
national or regional exchange or market, such reduction will be effective
immediately prior to the opening of business on the day following the
determination of the fair market value of such securities as provided in
Section 10.06(f)(ii). Notwithstanding the foregoing, if the Distribution
distributed by the Company to all holders of its Common Stock consists of
capital stock of, or similar equity interests in, a Subsidiary or other
business unit, the Conversion Rate shall be increased so that the same shall be
equal to the price determined by multiplying the Conversion Rate in effect on
the Record Date with respect to such distribution by a fraction:

     (1) the numerator of which shall be the sum of (x) the average
Closing Sale Price of one share of Common Stock over the ten consecutive
Trading Day period (the “Spinoff Valuation Period”) commencing on and
including the fifth Trading Day after the date on which “ex-dividend
trading” commences on the Common Stock on the Nasdaq Stock Market or such
other national or regional exchange or market on which the Common Stock
is then listed or quoted and (y) the average Closing Sale Price over the

53

 

Spinoff Valuation Period of the portion of the Distribution so
distributed applicable to one share of Common Stock; and

     (2) the denominator of which shall be the average Closing Sale Price
of one share of Common Stock over the Spinoff Valuation Period,

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

          (e) In case a tender or exchange offer made by the Company or any of its
Subsidiaries for all or any portion of the Common Stock (excluding any
transactions solely involving odd lots of shares of Common Stock) shall expire
and such tender or exchange offer (as amended upon the expiration thereof)
shall require the payment to stockholders of consideration per share of Common
Stock having a fair market value (as determined by the Board of Directors,
whose determination shall be conclusive and described in a resolution of the
Board of Directors) that as of the last time (the “Expiration Time”) tenders or
exchanges may be made pursuant to such tender or exchange offer (as it may be
amended) exceeds the Closing Sale Price on the Trading Day next succeeding the
Expiration Time, the Conversion Rate shall be increased so that the same shall
equal the rate determined by multiplying the Conversion Rate in effect
immediately prior to the Expiration Time by a fraction,

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

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

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

          (f) For purposes of this Section 10.06, the following terms shall have the
meanings indicated:

54

 

     (i) “Current Market Price” means the average of the daily Closing
Prices per share of Common Stock for the five consecutive Trading Days
selected by the Company commencing not more than 10 Trading Days before,
and ending not later than, the earlier of the day in question and the day
before the “ex” date with respect to the issuance or distribution
requiring such computation. For purposes of this paragraph, the term
“ex” date, when used with respect to any issuance or distribution, means
the first date on which the Common Stock trades regular way on the
applicable securities exchange or in the applicable securities market
without the right to receive such issuance or distribution.

     (ii) “fair market value” means the amount which a willing buyer
would pay a willing seller in an arm’s length transaction; provided that,
for purposes of Section 10.06(d), with respect to any dividend or
distribution consisting of Capital Stock of any class or series, or
similar equity interests, of or relating to a Subsidiary or other
business unit of the Company that is listed or quoted on the Nasdaq Stock
Market or other national or regional stock exchange or market, “fair
market value” shall mean the number of securities distributed in respect
of each share of Common Stock multiplied by the average of the Closing
Sale Prices of those securities distributed for the ten (10) Trading Days
commencing on and including the fifth Trading Day after the date on which
“ex-dividend trading” commences for such dividend or distribution on the
Nasdaq Stock Market or other national or regional exchange or market on
which such securities are then listed or quoted.

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

          (g) The Company may make such increases in the Conversion Rate, in
addition to those required by Sections 10.06(a), (b), (c), (d) or (e) as the
Board of Directors considers to be advisable to avoid or diminish any income
tax to holders of Common Stock or rights to purchase Common Stock resulting
from any dividend or distribution of stock (or rights to acquire stock) or from
any event treated as such for income tax purposes.

          To the extent permitted by applicable law and subject to the Nasdaq
Marketplace Rules, the Company from time to time may increase the Conversion
Rate by any amount. Whenever the Conversion Rate is increased pursuant to the
preceding sentence, the Company shall mail to the Trustee and each Holder at
the address of such Holder as it appears in the Register a notice of the
increase, and such notice shall state the increased Conversion Rate and the
period during which it will be in effect.

          (h) No adjustment in the Conversion Rate shall be required unless such
adjustment would require an increase or decrease of at least 1% in such rate;
provided, however, that any adjustments which by reason of this Section
10.06(h) are not required to be made shall be carried forward and made,
regardless of whether the aggregate adjustment is less than 1%,

55

 

within one year of the first such adjustment carried forward or, if earlier, the date on which
the carried-forward adjustments first equal 1% of the Conversion Rate in effect
at the time of the first carried-forward adjustment. All calculations under
this Article X shall be made by the Company and shall be made to the nearest
cent or to the nearest one hundredth of a share, as the case may be. No
adjustment need be made for a change in the par value or no par value of the
Common Stock. To the extent the Securities become convertible into the right to
receive cash, no adjustment need be made thereafter as to the cash. Interest
shall not accrue on the cash.

          (i) In any case in which this Section 10.06 provides that an adjustment
shall become effective immediately after a Record Date for an event, the
Company may defer until the occurrence of such event (i) issuing to the Holder
of any Security converted after such Record Date and before the occurrence of
such event the additional shares of Common Stock issuable upon such conversion
by reason of the adjustment required by such event over and above the Common
Stock issuable upon such conversion before giving effect to such adjustment and
(ii) paying to such Holder any amount in cash in lieu of any fraction pursuant
to Section 10.03 of this Indenture.

          (j) For purposes of this Section 10.06, the number of shares of Common
Stock at any time outstanding shall not include shares held in the treasury of
the Company but shall include shares issuable in respect of scrip certificates
issued in lieu of fractions of shares of Common Stock. The Company will not
pay any dividend or make any distribution on shares of Common Stock held in the
treasury of the Company, other than Common Stock issued in respect of Common
Stock.

          (k) If the distribution date for the rights provided in the Company’s
rights agreement, if any, occurs prior to the date a Security is converted, the
Holder of the Security who converts such Security after the distribution date
shall not be entitled to receive the rights that would otherwise be attached
(but for the date of conversion) to the shares of Common Stock received upon
such conversion (unless the Company elects to issue such rights to such
Holder); provided, however, that an adjustment shall be made to the Conversion
Rate pursuant to clause 10.06(c) as if the rights were being distributed to the
common stockholders of the Company immediately prior to such conversion (unless
the Company elects to issues such rights to such Holder). If such an
adjustment is made and the rights are later redeemed, invalidated or
terminated, then a corresponding reversing adjustment shall be made to the
Conversion Rate, on an equitable basis, to take account of such event.

          (l) The Conversion Rate will not be adjusted for the issuance of Common
Stock (or securities convertible into or exchangeable for Common Stock):

     (i) under any present or future plan providing for the reinvestment
of dividends or interest payable on the Company’s securities;

     (ii) in connection with the investment of additional optional
amounts in shares of Common Stock under any plan described in the
preceding subsection (i);

     (iii) under any present or future employee benefit plan or program
of the Company; or

56

 

     (iv) pursuant to any option, warrant or right or exercisable,
exchangeable or convertible security outstanding as of the date the
Securities are first issued.

          SECTION 10.07. Notice of Adjustments. Whenever the Conversion Rate is
adjusted as herein provided (other than in the case of an adjustment pursuant
to the second paragraph of Section 10.06(g) for which the notice required by
such paragraph has been provided), the Company shall promptly file with the
Trustee and the Conversion Agent if other than the Trustee an Officer’s
Certificate setting forth the adjusted Conversion Rate and showing in
reasonable detail the facts upon which such adjustment is based. Promptly
after delivery of such Officer’s Certificate, the Company shall prepare a
notice stating that the Conversion Rate has been adjusted and setting forth the
adjusted Conversion Rate and the date on which each adjustment becomes
effective, and shall mail such notice to each Holder at the address of such
Holder as it appears in the Register within 20 days of the effective date of
such adjustment. Failure to deliver such notice shall not effect the legality
or validity of any such adjustment.

          SECTION 10.08. Notice of Certain Transactions. If:

          (a) the Company takes any action that would require an adjustment in the
Conversion Rate pursuant to Sections 10.06(a), (b), (c), (d) or (e); or

          (b) the Company takes any action that would require a supplemental
indenture pursuant to Section 10.09; or

          (c) there is a liquidation or dissolution of the Company;

then the Company shall mail to Securityholders and file with the Trustee and
the Conversion Agent a notice stating the proposed record date for a dividend
or distribution or the proposed effective date of a subdivision, combination,
reclassification, consolidation, merger, binding share exchange, transfer,
liquidation or dissolution. The Company shall file and mail the notice at
least 15 days before such date. Failure to file or mail the notice or any
defect in it shall not affect the validity of the transaction.

          SECTION 10.09. Reorganization of Company; Special Distributions. If the
Company is a party to a transaction subject to Article V (other than a sale of
all or substantially all of the properties and assets of the Company in a
transaction in which the holders of Common Stock immediately prior to such
transaction do not receive securities, cash, property or other assets of the
Company or any other Person) or a merger or binding share exchange which
reclassifies or changes its outstanding Common Stock, the Person obligated to
deliver securities, cash or other assets upon conversion of Securities shall
enter into a supplemental indenture. If the issuer of securities deliverable
upon conversion of Securities is an Affiliate of the successor Company, that
issuer shall join in the supplemental indenture.

          The supplemental indenture shall provide that the Holder of a Security may
convert it into the kind and amount of securities, cash or other assets which
such Holder would have received immediately after the consolidation, merger,
binding share exchange or transfer if such Holder had converted the Security
immediately before the effective date of the transaction, assuming (to the
extent applicable) that such Holder (i) was not a constituent Person or an

57

 

Affiliate of a constituent Person to such transaction; (ii) made no election
with respect thereto; and (iii) was treated alike with the plurality of
non-electing Holders. The supplemental indenture shall provide for adjustments
which shall be as nearly equivalent as may be practical to the adjustments
provided for in this Article X. The successor Company shall mail to
Securityholders a notice briefly describing the supplemental indenture.

          If any such transaction constitutes a Designated Event, the Securities
shall cease to be convertible after the fifteenth day following the transaction
giving rise to such Designated Event.

          If this Section applies, none of Section 10.06(a), Section 10.06(b) or
Section 10.06(c) applies.

          If the Company makes a distribution to all holders of its Common Stock of
any of its assets, or debt securities or any rights, warrants or options to
purchase securities of the Company that would otherwise result in an adjustment
in the Conversion Rate pursuant to the provisions of Section 10.06(d), then,
from and after the record date for determining the holders of Common Stock
entitled to receive the distribution, a Holder of a Security that converts such
Security in accordance with the provisions of this Indenture shall upon such
conversion be entitled to receive, in addition to the shares of Common Stock
into which the Security is convertible, the kind and amount of securities, cash
or other assets comprising the distribution that such Holder would have
received if such Holder had converted the Security immediately prior to the
record date for determining the holders of Common Stock entitled to receive the
distribution.

          SECTION 10.10. Company Determination Final. Any determination that the
Company or the Board of Directors must make pursuant to Section 10.03, Section
10.06, Section 10.09 or Section 10.12 is conclusive, final and binding on the
Holders.

          SECTION 10.11. Trustee’s Adjustment 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 it should be. The Trustee has no duty to determine the
Trading Price unless the Company has requested such a determination. The
Trustee has no duty to determine whether a supplemental indenture under Section
10.09 need be entered into or whether any provisions of any supplemental
indenture are correct. The Trustee shall not be accountable for and makes no
representation as to the validity or value of any securities or assets or the
amount of any cash issued upon conversion of Securities. The Trustee shall not
be responsible for the Company’s failure to comply with this Article X. Each
Conversion Agent (other than the Company or an Affiliate of the Company) shall
have the same protection under this Section 10.11 as the Trustee.

          SECTION 10.12. Successive Adjustments. After an adjustment to the
Conversion Rate under this Article X, any subsequent event requiring an
adjustment under this Article X shall cause an adjustment to the Conversion
Rate as so adjusted.

          SECTION 10.13. Company’s Right to Elect to Pay Cash or Common Stock. In
lieu of delivery of Common Stock upon notice of conversion of any Securities,
the Company may elect to pay holders surrendering Securities (i) an amount in
cash per $1,000 Principal

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Amount per Security equal to the average as
determined by the Company of the Closing Sale Prices of Common Stock for the 20
consecutive Trading Days immediately following either (a) the date of notice of
election to deliver cash as described below if the Company has not given notice
of redemption, or (b) the conversion date, in the case of conversion following
the notice of redemption specifying that the Company intends to deliver cash
upon conversion, in either case multiplied by the Conversion Rate in effect on
that date, or (ii) a combination of Common Stock and cash. The Company shall
give the Trustee and the Conversion Agent notice of the amount of Common Stock
and cash to be delivered in connection with any conversion, promptly after such
amount is determined by the Company. The Company will inform the holders
through the Trustee no later than two Business Days following the Conversion
Date of its election to deliver shares of Common Stock or to pay cash in lieu
of delivery of Common Stock, or to deliver a combination thereof, unless the
Company has already informed holders of its election in connection with its
optional redemption of the Securities pursuant to Section 3.01 herein. If the
Company elects to deliver all of such payment in Common Stock, the Common Stock
will be delivered through the Conversion Agent no later than the fifth Business
Day following the Conversion Date. If the Company elects to pay all or a
portion of such payment in cash, the payment, including any delivery of Common
Stock, will be made to holders surrendering Securities no later than the 25th
Business Day following the applicable Conversion Date. If an Event of Default
(other than a default in a cash payment upon conversion of the Securities) has
occurred and is continuing, the Company may not pay cash upon conversion of any
Security or portion of a Security (other than cash for fractional shares).

ARTICLE XI

PAYMENT OF INTEREST

          SECTION 11.01. Interest Payments. Interest on any Security that is
payable, and is punctually paid or duly provided for, on any applicable payment
date shall be paid to the person in whose name that Security is registered at
the close of business on the Regular Record Date or accrual date, as the case
may be, for such interest at the office or agency of the Company maintained for
such purpose. Each installment of semiannual interest on any Security shall be
paid, in the case of a holder of $5,000,000 or more in aggregate principal
amount of the Securities, in same-day funds by transfer to an account
maintained by the payee located inside the United States, if the Trustee shall
have received proper wire transfer instructions from such payee not later than
the related Regular Record Date, or, if no such instructions have been received
and in the case of all other payees, by check drawn on a bank in New York City
mailed to the payee at its address set forth on the Registrar’s books. In the
case of a Global Security, semiannual interest payable on any applicable
payment date will be paid to the Depositary, with respect to that portion of
such Global Security held for its account by Cede & Co. for the purpose of
permitting such party to credit the interest received by it in respect of such
Global Security to the accounts of the beneficial owners thereof.

          SECTION 11.02. Defaulted Interest. Except as otherwise specified with
respect to the Securities, any interest on any Security that is payable, but is
not punctually paid or duly provided for, within 30 days following any
applicable payment date (herein called “Defaulted Interest”, which term shall
include any accrued and unpaid interest that has accrued on such defaulted
amount in accordance with paragraph 1 of the Securities), shall forthwith cease

59

 

to be payable to the registered Holder thereof on the relevant Regular Record
Date or accrual date, as the case may be, by virtue of having been such Holder,
and such Defaulted Interest may be paid by the Company, at its election in each
case, as provided in clause (1) or (2) below:

     (1) The Company may elect to make payment of any Defaulted Interest
to the persons in whose names the Securities are registered at the close
of business on a special record date for the payment of such Defaulted
Interest, which shall be fixed in the following manner. The Company
shall notify the Trustee in writing of the amount of Defaulted Interest
proposed to be paid on each Security and the date of the proposed payment
(which shall not be less than 20 days after such notice is received by
the Trustee), and at the same time the Company shall deposit with the
Trustee an amount of money equal to the aggregate amount proposed to be
paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit on or prior to the date of
the proposed payment, such money when deposited to be held in trust for
the benefit of the persons entitled to such Defaulted Interest as in this
clause provided. Thereupon the Trustee shall fix a special record date
(the “Special Record Date”) for the payment of such Defaulted Interest
which shall be not more than 15 days and not less than 10 days prior to
the date of the proposed payment and not less than 10 days after the
receipt by the Trustee of the notice of the proposed payment. The
Trustee shall promptly notify the Company of such Special Record Date
and, in the name and at the expense of the Company, shall cause notice of
the proposed payment of such Defaulted Interest and the Special Record
Date therefor to be mailed, first-class postage prepaid, to each Holder
of Securities at his address as it appears on the list of Securityholders
maintained pursuant to Section 2.05 not less than 10 days prior to such
Special Record Date. Notice of the proposed payment of such Defaulted
Interest and the Special Record Date therefor having been mailed as
aforesaid, such Defaulted Interest shall be paid to the persons in whose
names the Securities are registered at the close of business on such
Special Record Date and shall no longer be payable pursuant to the
following clause (2).

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

          SECTION 11.03. Interest Rights Preserved. Subject to the foregoing
provisions of this Article XI and Section 2.06, each Security delivered under
this Indenture upon registration of transfer of or in exchange for or in lieu
of any other Security shall carry the rights to semi-annual interest accrued
and unpaid, and to accrue, which were carried by such other Security.

60

 

ARTICLE XII

MISCELLANEOUS

          SECTION 12.01. 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
shall control.

          SECTION 12.02. Notices. Any request, demand, authorization, notice,
waiver, consent or communication shall be in writing and delivered in person or
delivered by courier guaranteeing overnight delivery or mailed by first-class
mail, postage prepaid, addressed as follows or transmitted by facsimile
transmission (confirmed by guaranteed overnight courier) to the following
facsimile numbers:

          if to the Company:

Palm Harbor Homes, Inc.

15303 Dallas Parkway, Suite 800

Addison, TX 75001-4600

Attention: President

Fax: 972-991-1753

Attention: Chief Financial Officer

Fax: 972-991-9018

with a copy of any notice given pursuant to Article VI to:

Locke Liddell & Sapp

2200 Ross Ave., Suite 2200

Dallas, TX 75201-6776

Attention: Gina E. Betts, Esq.

Facsimile No. (214) 740-8800

          if to the Trustee:

American Stock Transfer & Trust Company

59 Maiden Lane

New York, NY 10038

Attention: Corporate Trust Department

Fax: (718) 331-1852

          The Company or the Trustee by notice given to the other in the manner
provided above may designate additional or different addresses for subsequent
notices or communications.

          Any notice or communication given to a Securityholder shall be mailed to
the Securityholder, by first-class mail, postage prepaid, at the
Securityholder’s address as it appears on the registration books of the
Registrar and shall be sufficiently given if so mailed within the time
prescribed.

61

 

          In case by reason of the suspension of regular mail service or by reason
of any other cause it shall be impracticable to give such notice by mail, then
such notification as shall be made with the approval of the Trustee shall
constitute a sufficient notification for every purpose hereunder.

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

          If the Company mails a notice or communication to the Securityholders, it
shall mail a copy to the Trustee and each Registrar, Paying Agent, Conversion
Agent or co-registrar.

          SECTION 12.03. Communication by Holders with Other Holders.
Securityholders may communicate pursuant to TIA Section 312(b) with other
Securityholders with respect to their rights under this Indenture or the
Securities. The Company, the Trustee, the Registrar, the Paying Agent, the
Conversion Agent and anyone else shall have the protection of TIA Section
312(c).

          SECTION 12.04. 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 (other than the initial authentication of Securities under
this Indenture), the Company shall furnish to the Trustee if reasonably
requested:

     (1) an Officer’s Certificate stating that, in the opinion of the
signers, all conditions precedent, if any, provided for in this Indenture
relating to the proposed action have been complied with; and

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

          SECTION 12.05. Statements Required in Certificate or Opinion. Each
Officer’s Certificate or Opinion of Counsel with respect to compliance with a
covenant or condition provided for in this Indenture shall include to the
extent required by the Trustee:

     (1) a statement that each person making such Officer’s Certificate
or Opinion of Counsel has read such covenant or condition;

     (2) a brief statement as to the nature and scope of the examination
or investigation upon which the statements or opinions contained in such
Officer’s Certificate or Opinion of Counsel are based;

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

     (4) a statement that, in the opinion of such person, such covenant
or condition has been complied with.

62

 

          SECTION 12.06. Separability Clause. 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.

          SECTION 12.07. Rules by Trustee, Paying Agent, Conversion Agent and
Registrar. The Trustee may make reasonable rules for action by or a meeting of
Securityholders. The Registrar, Conversion Agent and the Paying Agent may make
reasonable rules for their functions.

          SECTION 12.08. Legal Holidays. A “Legal Holiday” is any day other than a
Business Day. If any specified date (including a date for giving notice) is a
Legal Holiday, the action shall be taken on the next succeeding day that is not
a Legal Holiday, and, if the action to be taken on such date is a payment in
respect of the Securities, no interest shall accrue for the intervening period.

          SECTION 12.09. GOVERNING LAW. THE LAWS OF THE STATE OF NEW YORK SHALL
GOVERN THIS INDENTURE AND THE SECURITIES.

          SECTION 12.10. No Recourse Against Others. A director, officer, employee,
agent, representative, stockholder or equity holder, as such, of the Company

shall not have any liability for any obligations of the Company under the
Securities or this Indenture or for any claim based on, in respect of or by
reason of such obligations or their creation. By accepting a Security, each
Securityholder shall waive and release all such liability. The waiver and
release shall be part of the consideration for the issue of the Securities.

          SECTION 12.11. Successors. All agreements of the Company in this
Indenture and the Securities shall bind its successor. All agreements of the
Trustee in this Indenture shall bind its successor.

          SECTION 12.12. Multiple 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. One originally signed copy is
enough to prove this Indenture.

63

 

     IN WITNESS WHEREOF, the undersigned, being duly authorized, have executed
this Indenture on behalf of the respective parties hereto as of the date first
above written.

	 	 	 	 	 
	 	PALM HARBOR HOMES, INC.

 	 
	 	By:  	     /s/ Lee Posey
 	 
	 	 	Name:  	Lee Posey 	 
	 	 	Title:  	Chairman of the Board 	 
	 
	 	AMERICAN STOCK TRANSFER &
TRUST COMPANY
 	 
	 
	 	By:  	     /s/ Herbert J. Lemmer
 	 
	 	 	Name:  	Herbert J. Lemmer 	 
	 	 	Title:  	Vice President 	 
	 

64exv4w3

 

EXHIBIT 4.3

PALM HARBOR HOMES, INC.

3.25% Convertible Senior Note due 2024

     UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR THE INDIVIDUAL
NOTES REPRESENTED HEREBY, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A
WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE
DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE
DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH
SUCCESSOR DEPOSITARY.

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER 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.

     THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND ACCORDINGLY, MAY NOT BE
OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS
ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT (A) IT IS A “QUALIFIED
INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A ADOPTED UNDER THE SECURITIES ACT)
OR (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS SECURITY IN AN OFFSHORE
TRANSACTION IN COMPLIANCE WITH REGULATION S ADOPTED UNDER THE SECURITIES ACT;
(2) AGREES THAT IT WILL NOT WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE OF
THIS SECURITY RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY OR THE
COMMON STOCK ISSUABLE UPON CONVERSION OF SUCH SECURITY, EXCEPT (A) TO THE
ISSUER OR A SUBSIDIARY THEREOF; (B) TO A QUALIFIED INSTITUTIONAL BUYER IN
COMPLIANCE WITH RULE 144A ADOPTED UNDER THE SECURITIES ACT (IF AVAILABLE); (C)
TO PERSONS OTHER THAN U.S. PERSONS OUTSIDE THE UNITED STATES IN COMPLIANCE WITH
REGULATION S UNDER THE SECURITIES ACT, (D) PURSUANT TO THE EXEMPTION FROM
REGISTRATION PROVIDED BY RULE 144 ADOPTED UNDER THE SECURITIES ACT OR ANOTHER
AVAILABLE EXEMPTION UNDER THE SECURITIES ACT (IF AVAILABLE), OR (E) PURSUANT TO
AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND (3) AGREES
THAT IT WILL, PRIOR TO ANY TRANSFER OF THIS SECURITY WITHIN TWO YEARS AFTER THE
ORIGINAL ISSUANCE OF THIS SECURITY, FURNISH TO THE TRUSTEE AND THE ISSUER SUCH
CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS MAY BE

 

 

REQUIRED PURSUANT TO THE INDENTURE 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. AS USED HEREIN, THE TERMS
“OFFSHORE TRANSACTION,” “UNITED STATES” AND “U.S. PERSON” HAVE THE MEANING
GIVEN TO THEM BY REGULATION S UNDER THE SECURITIES ACT. IN ANY CASE, THE HOLDER
HEREOF WILL NOT, DIRECTLY OR INDIRECTLY, ENGAGE IN ANY HEDGING TRANSACTION WITH
REGARD TO THIS SECURITY OR ANY COMMON STOCK ISSUABLE UPON CONVERSION OF SUCH
SECURITY, EXCEPT AS PERMITTED BY THE SECURITIES ACT.

     THE FOREGOING LEGEND MAY BE REMOVED FROM THIS SECURITY ON SATISFACTION OF
THE CONDITIONS SPECIFIED IN THE INDENTURE.

 

 

PALM HARBOR HOMES, INC.

3.25% Convertible Senior Note due 2024

	 	 	 
	No. A-1

	 	CUSIP: 696639 AA 1
	Issue Date: May 11, 2004

	 	Principal Amount: $65,000,000
	Issue Price: $1,000

(for each $1,000 Principal Amount)
	 	 

     PALM HARBOR HOMES, INC., a Florida corporation, for value received, hereby
promises to pay to Cede & Co. or its registered assigns, on May 15, 2024, the
principal sum of Sixty-five Million and NO/100 Dollars ($65,000,000) or such greater or
lesser amount as is indicated on the Schedule of Exchanges attached hereto.

Interest Payment Dates: May 15 and November 15, commencing November 15,
2004 Regular Record Dates: May 1 and November 1

Additional provisions of this Security are set forth on the other side of
this Security.

 

 

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

	 	 	 	 	 
	 	 	PALM HARBOR HOMES, INC.
	 
	 	 	 	 
	 	 	By:  	 	

	

	 	 	 	Name:
	

	 	 	 	Title:

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the 3.25% Convertible Senior Notes due 2024 issued under the
within-named Indenture.

AMERICAN STOCK TRANSFER AND TRUST COMPANY,
as Trustee

	 
	By:

	Authorized Officer

Dated:

 

 

3.25% Convertible Senior Note due 2024

1. Interest.

     The Company promises to pay interest in cash on the Principal Amount of
this Note at the rate of 3.25% per year from the Issue Date, or from the most
recent date to which interest has been paid or provided for. During such
period, the Company will pay interest semiannually in arrears on each Interest
Payment Date, commencing on November 15, 2004, to Holders of record at the
close of business on each Regular Record Date immediately preceding such
Interest Payment Date. Each payment of interest on the Securities will include
interest accrued through the day immediately preceding the most recent Interest
Payment Date (or the Repurchase Date, Redemption Date, Designated Event
Repurchase Date or, in certain circumstances, the Conversion Date, as the case
may be). Any payment required to be made on any day that is not a Business Day
will be made on the next succeeding Business Day and no interest shall accrue
for the intervening period. Interest on the Notes shall be computed on the
basis of a 360-day year of twelve 30-day months. In accordance with the
Registration Rights Agreement dated May 11, 2004 between Palm Harbor Homes,
Inc. and Citigroup Global Markets Inc, the interest rate on this Note may be
increased under the circumstances set forth therein.

     If installments of interest due hereon are not paid when due in accordance
with the preceding paragraph, then in each such case the overdue amount shall,
to the extent permitted by law, bear interest at 3.25% per year, as the case
may be, in effect following the date such overdue amount was due, compounded
semi-annually, which interest shall accrue from the date such overdue amount
was originally due to the date payment of such amount, including interest
thereon, has been made or duly provided for. All such interest shall be
payable on demand.

     Interest on any Security that is payable, and is punctually paid or duly
provided for, on any applicable payment date shall be paid to the person in
whose name that Security is registered at the close of business on the Regular
Record Date or accrual date, as the case may be, for such interest at the
office or agency of the Company maintained for such purpose. Each installment
of semiannual interest on any Security shall be paid, in the case of a holder
of $5,000,000 or more in aggregate principal amount of the Securities, in
same-day funds by transfer to an account maintained by the payee located inside
the United States, if the Trustee shall have received proper wire transfer
instructions from such payee not later than the related Regular Record Date,
or, if no such instructions have been received and in the case of all other
payees, by check drawn on a bank in New York City mailed to the payee at its
address set forth on the Registrar’s books.

2. Method of Payment.

     Subject to the terms and conditions of the Indenture, the Company will
make payments in respect of Principal Amount, Redemption Price, Designated
Event Repurchase Price, Repurchase Price and at Stated Maturity to Holders who
surrender Securities to a Paying Agent to collect such payments in respect of
the Securities. In addition, the Company will pay interest from the Issue Date
as more fully described in paragraph 1 hereof. The Company will pay any cash
amounts in money of the United States that at the time of payment is legal
tender for payment of public and private debts. However, subject to paragraph
1 hereof, the Company may make such cash payments by check payable in such
money.

 

 

3. Paying Agent, Conversion Agent and Registrar.

     Initially, American Stock Transfer and Trust Company (the “Trustee”) will
act as Paying Agent, Conversion Agent and Registrar. The Company may appoint
and change any Paying Agent, Conversion Agent and Registrar or co-registrar
without notice, other than notice to the Trustee except that the Company will
maintain at least one Paying Agent in the State of New York, City of New York,
Borough of Manhattan, which shall initially be an office or agency of the
Trustee. The Company or any of its Subsidiaries or any of their Affiliates may
act as Paying Agent, Conversion Agent, Registrar or co-registrar.

4. Indenture.

     The Company issued the Securities pursuant to an Indenture dated as of May
11, 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 Securities themselves and the Trust Indenture Act
of 1939, as in effect from time to time (the “TIA”). Capitalized terms used
herein and not defined herein have the meanings ascribed thereto in the
Indenture. The Securities are subject to all such terms, and Securityholders
are referred to the Indenture and the TIA for a statement of those terms.

     The Securities are unsecured and senior obligations of the Company limited
to $75,000,000 aggregate Principal Amount (subject to Section 2.07 of the
Indenture). The Indenture does not limit other indebtedness of the Company,
secured or unsecured.

5. Redemption at the Option of the Company.

     No sinking fund is provided for the Securities. Subject to the terms and
conditions of the Indenture, the Securities are redeemable as a whole, or from
time to time in part, at any time at the option of the Company in accordance
with the Indenture at the Redemption Price at any time on or after May 18,
2011.

     If redeemed at the option of the Company, the Securities will be redeemed
for cash at a price equal to 100% of the Principal Amount (the “Redemption
Price”), plus accrued and unpaid interest.

6. Notice of Redemption.

     Notice of redemption will be mailed at least 30 days but not more than 60
days before the Redemption Date to each Holder of Securities to be redeemed at
the Holder’s registered address. If money sufficient to pay the Redemption
Price of, and accrued and unpaid interest, if any, with respect to, all
Securities (or portions thereof) to be redeemed on the Redemption Date is
deposited with the Paying Agent prior to or on the Redemption Date, interest
shall cease to accrue on such Securities (or portions thereof) on such
Redemption Date and the Holder thereof shall have no other rights as such
(other than the right to receive the Redemption Price and accrued and unpaid
interest, if any, upon surrender of such Security). Securities in
denominations larger than $1,000 of Principal Amount may be redeemed in part
but only in integral multiples of $1,000 of Principal Amount.

 

 

7. Repurchase at the Option of the Holder on Specified Dates.

     Subject to the terms and conditions of the Indenture, the Company shall
become obligated to repurchase, at the option of the Holder, the Securities
held by such Holder on May 15, 2011, May 15, 2014 and May 15, 2019 at a
Repurchase Price equal to 100% of the Principal Amount of such Securities on
the applicable Repurchase Date plus accrued and unpaid interest, if any, to but
not including the Repurchase Date, upon delivery of a Repurchase Notice
containing the information set forth in the Indenture at any time from the
opening of business on the date that is 20 Business Days prior to such
Repurchase Date until the close of business on the third Business Day prior to
such Repurchase 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 Repurchase Notice by delivering to
the Paying Agent a written notice of withdrawal in accordance with the
provisions of the Indenture.

     If cash sufficient to pay the Repurchase Price of all Securities or
portions thereof to be purchased as of the Repurchase Date is deposited with
the Paying Agent on the Business Day following the Repurchase Date, interest
shall cease to accrue on such Securities (or portions thereof) on such
Repurchase Date and the Holder thereof shall have no other rights as such
(other than the right to receive the Repurchase Price upon surrender of such
Security).

8. Conversion.

     Conversion Based on Common Stock Price. Subject to the provisions of this
paragraph 8 and notwithstanding the fact that any other condition to conversion
described below has not been satisfied, Holders may convert the Securities into
Common Stock at any time during any calendar quarter (but only during such
calendar quarter) commencing after June 30, 2004 if the Closing Sale Price of
the Common Stock for at least 20 Trading Days in a period of 30 consecutive
Trading Days ending on the last Trading Day of the preceding calendar quarter
is greater than 120% of the Conversion Price on the last Trading Day of such
preceding fiscal quarter. The “Conversion Price” shall be equal to $1,000
divided by the Conversion Rate then in effect.

     Conversion Based on Trading Price of Securities. Subject to the
provisions of this paragraph 8 and the exceptions in the paragraph below and
notwithstanding the fact that any other condition to conversion described
herein has not been satisfied, Holders may convert the Securities into Common
Stock during each five Business Day period after any five-consecutive-Trading
Day period in which the Trading Price per $1,000 Principal Amount of the
Securities for each day of such five-Trading Day period was less than 98% of
the product of the Closing Sale Price of the Common Stock on the applicable
date and the number of shares of Common Stock issuable upon conversion of
$1,000 Principal Amount of the Securities (the “Trading Price Condition”).

     Notwithstanding the foregoing paragraph, if on the date of any conversion
pursuant to the Trading Price Condition that is on or after May 15, 2019, the
Closing Sale Price of the Common Stock is greater than the Conversion Price,
then Holders will receive, in lieu of Common Stock based on the Conversion
Rate, cash or Common Stock or a combination of cash and Common

 

 

Stock, at the Company’s option, with a value equal to the Principal Amount
of such Securities plus accrued and unpaid interest, as of the Conversion Date
(“Principal Value Conversion”). The Company will notify Holders who surrender
their Securities for conversion, if it is a Principal Value Conversion, by the
second Trading Day following the date of conversion, whether the Company will
pay them all or a portion of the Principal Amount of such Securities plus
accrued and unpaid interest in cash, Common Stock or a combination of cash and
Common Stock, and in what percentage. Any Common Stock delivered upon a
Principal Value Conversion will be valued at the greater of the Conversion
Price on the Conversion Date and the Applicable Stock Price as of the
Conversion Date. The Company will pay such Holders any portion of the Principal
Amount plus accrued and unpaid interest to be paid in cash and deliver Common
Stock with respect to any portion of the Principal Amount plus accrued and
unpaid interest to be paid in Common Stock no later than the third Business Day
following the determination of the Applicable Stock Price. The Company shall
give the Trustee and the Conversion Agent notice of the amount of Common Stock
and cash to be delivered in connection with any such conversion, promptly after
such amount is determined by the Company.

     The “Applicable Stock Price” means, in respect of a date of determination,
the average of the Closing Sales Price per share of Common Stock over the five
Trading Day period starting on the third Trading Day following such date of
determination.

     The “Trading Price” of the Securities on any date of determination means
the average of the secondary market bid quotations obtained by the Trustee for
$2,000,000 Principal Amount of the Securities at approximately 3:30 p.m., New
York City time, on such determination date from three independent nationally
recognized securities dealers selected by the Company; provided that if three
such bids cannot reasonably be obtained by the Trustee, but two such bids are
obtained, then the average of the two bids shall be used, and if only one such
bid can reasonably be obtained by the Trustee, that one bid shall be used. If
the Trustee cannot reasonably obtain at least one bid for $2,000,000 Principal
Amount of the Securities from a nationally recognized securities dealer, then
the trading price per $1,000 Principal Amount of the Securities will be deemed
to be less than 98% of the product of (a) the Closing Sale Price of the Common
Stock on such date and (b) the number of shares of Common Stock issuable upon
conversion of $1,000 Principal Amount of the Securities.

     The Trustee (or other Conversion Agent appointed by the Company) shall
have no obligation to determine the Trading Price unless the Company has
requested such a determination; and the Company shall have no obligation to
make such request unless a Holder provides it with reasonable evidence that the
Trading Price per $1,000 Principal Amount of Securities would be less than 98%
of the product of the Closing Sale Price of the Common Stock and the number of
shares of Common Stock issuable upon conversion of $1,000 Principal Amount of
Securities. If such evidence is provided, the Company shall instruct the
Trustee (or other Conversion Agent) to determine the Trading Price of the
Securities beginning on the next Trading Day and on each successive Trading Day
until the Trading Price per $1,000 Principal Amount of Securities is greater
than 98% of the product of the Closing Sale Price of the Common Stock and the
number of shares issuable upon conversion of $1,000 Principal Amount of the
Securities.

 

 

     Conversion upon Redemption. Subject to the provisions of this paragraph 8
and notwithstanding the fact that any other condition described herein to
conversion has not been satisfied, a Holder may convert into Common Stock a
Security or portion of a Security which has been called for redemption pursuant
to paragraph 5 hereof, provided such Securities are surrendered for conversion
prior to the close of business on the second Business Day immediately preceding
the Redemption Date.

     Conversion Upon Certain Distributions. Subject to the provisions of this
paragraph 8 and notwithstanding the fact that any other condition to conversion
described herein has not been satisfied, in the event that the Company declares
a dividend or distribution described in Section 10.06(d) of the Indenture, or a
dividend or a distribution described in Section 10.06(e) of the Indenture
where, the fair market value of such dividend or distribution per share of
Common Stock, as determined in the Indenture, exceeds 5% of the Closing Sale
Price of the Common Stock on the Business Day immediately preceding the date of
declaration for such dividend or distribution, the Securities may be
surrendered for conversion beginning on the date the Company gives notice to
the Holders of such right, which shall not be less than 20 days prior to the
date of such dividend or distribution and Securities may be surrendered for
conversion at any time thereafter until the close of business on the Business
Day prior to the date of such dividend or distribution or until the Company
announces that such dividend or distribution will not take place.

     Conversion Upon Occurrence of Certain Corporate Transactions. Subject to
the provisions of this paragraph 8 and notwithstanding the fact that any other
condition described herein to conversion has not been satisfied, in the event
the Company is a party to a consolidation, merger or binding share exchange or
transfer of all or substantially all of the Company’s assets pursuant to which
the Common Stock would be converted into cash, securities or other property as
set forth in Section 10.09 of the Indenture, the Securities may be surrendered
for conversion at any time from and after the date which is 15 days prior to
the date announced by the Company as the anticipated effective time until 15
days after the actual effective date of such transaction, and at the effective
time of such transaction the right to convert a Security into Common Stock will
be deemed to have changed into a right to convert it into the kind and amount
of cash, securities or other property which the Holder would have received if
the Holder had converted its Security into Common Stock immediately prior to
the transaction. If such transaction also constitutes a Designated Event, a
Holder will be able to require the Company to repurchase all or a portion of
such Holder’s Securities pursuant to paragraph 10 and Section 3.13 of the
Indenture. In addition, if such transaction constitutes a Designated Event,
the Securities will cease to be convertible after the fifteenth day following
the actual effective date of the transaction giving rise to such Designated
Event.

     Upon conversion, the Company has the right to deliver cash or a
combination of cash and Common Stock.

     A Security in respect of which a Holder has delivered a Repurchase Notice
or Designated Event Repurchase Notice exercising the option of such Holder to
require the Company to purchase such Security may be converted only if such
notice of exercise is withdrawn in accordance with the terms of the Indenture.

 

 

     The initial Conversion Rate is 38.5803 shares of Common Stock per each
$1,000 of Principal Amount, subject to adjustment for certain events described
in the Indenture. The Company will deliver cash in lieu of any fractional
share of Common Stock. The ability to surrender Securities for conversion will
expire at the close of business on the Business Day preceding the Stated
Maturity.

     Interest will not be paid on Securities that are converted; provided,
however, that Securities surrendered for conversion during the period from the
close of business on any Regular Record Date next preceding any Interest
Payment Date to the opening of business on such Interest Payment Date shall be
entitled to receive such interest payable on such Securities on the
corresponding Interest Payment Date, and Securities surrendered for conversion
during such periods, except for Securities to be redeemed within such period,
must be accompanied by payment of an amount equal to the interest with respect
thereto that the registered Holder is to receive.

     Subject to the provisions of the Indenture relating to the requirements
for convertibility of a Security, to exercise its conversion right, a Holder
must (1) complete and manually sign the conversion notice (or complete and
manually sign a facsimile of such notice) and deliver such notice to the
Conversion Agent, (2) surrender the Security to the Conversion Agent, (3)
furnish appropriate endorsements and transfer documents if required by the
Conversion Agent, the Company or the Trustee, (4) pay funds equal to the
interest payable on the Securities being converted payable on the next Interest
Payment Date, if required, and (5) pay any transfer or similar taxes, if
required.

     A Holder may convert a portion of a Security if the Principal Amount of
such portion is $1,000 or an integral multiple of $1,000. No payment or
adjustment will be made for dividends on the Common Stock except as provided in
the Indenture. On conversion of a Security, accrued but unpaid interest
attributable to the period from the most recent Interest Payment Date through
the Conversion Date shall not be cancelled, extinguished or forfeited, but
rather shall be deemed to be paid in full to the Holder thereof through the
delivery of the Common Stock (together with the cash payment, if any, in lieu
of fractional shares) in exchange for the Security being converted pursuant to
the terms hereof; and the fair market value of such shares of Common Stock
(together with any such cash payment in lieu of fractional shares) shall be
treated as issued, to the extent thereof, first in exchange for accrued but
unpaid interest through the Conversion Date, and the balance, if any, of such
fair market value of such Common Stock (and any such cash payment) shall be
treated as issued in exchange for the Issue Price of the Security being
converted pursuant to the provisions hereof.

     The Conversion Rate will be adjusted in certain circumstances as provided
in the Indenture.

9. Conversion Arrangement on Call for Redemption.

     Any Securities called for redemption, unless surrendered for conversion
before the close of business on the second Business Day prior to the Redemption
Date, may be deemed to be purchased from the Holders of such Securities at an
amount not less than the Redemption Price, by one or more investment bankers or
other purchasers who may agree with the Company to

 

 

purchase such Securities from the Holders, to convert them into Common
Stock of the Company and to make payment for such Securities to the Trustee in
trust for such Holders.

10. Repurchase Right Upon a Designated Event.

     In the event that a Designated Event shall occur, then each Holder shall
have the right, at the Holder’s option, to require the Company to repurchase,
and upon the exercise of such right the Company shall repurchase, all of such
Holder’s Notes, or any portion of the principal amount thereof that is equal to
$1,000 or any integral multiple of $1,000 in excess thereof, on the date that
is 30 days after the date of the Designated Event Notice at a Designated Event
Repurchase Price equal to 100% of the principal amount of the Notes to be
repurchased, interest, if any, accrued but unpaid to, but excluding, the
Designated Event Repurchase Date, plus, if a Fundamental Change has occurred
and all of the consideration for Common Stock in the transaction or
transactions constituting the Fundamental Change consists of cash, a the
Make-Whole Premium; provided, however, that installments of interest on Notes
whose Stated Maturity is on or prior to the Designated Event Repurchase Date
shall be payable to the Holders of such Notes, or one or more Predecessor
Securities, registered as such on the relevant Record Date according to their
terms and the provisions of Section 3.13 of the Indenture.

     A notice will be given by or on behalf of the Company to the Holders as
provided in the Indenture. To exercise a repurchase right, a Holder must
deliver to the Trustee a written notice as described in the Indenture.

     Holders have the right to withdraw any Designated Event Repurchase Notice,
as the case may be, by delivering to the Paying Agent a written notice of
withdrawal in accordance with the provisions of the Indenture.

     If cash sufficient to pay the Designated Event Repurchase Price of all
Securities or portions thereof to be purchased as of the Designated Event
Repurchase Date is deposited with the Paying Agent on the Business Day
following the Designated Event Repurchase Date, interest shall cease to accrue
on such Securities (or portions thereof) on such Designated Event Repurchase
Date and the Holder thereof shall have no other rights as such (other than the
right to receive the Designated Event Repurchase Price upon surrender of such
Security).

11. Events of Default and Remedies.

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

12 Denominations; Transfer; Exchange.

     The Securities are in fully registered form, without coupons, in
denominations of $1,000 of Principal Amount and integral multiples of $1,000.
A Holder may transfer or exchange Securities in accordance with the Indenture.
The Registrar may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents and to pay any taxes and fees required by
law or permitted by the Indenture. The Registrar need not transfer or exchange
any Securities selected for redemption (except, in the case of a Security to be
redeemed in part, the

 

 

portion of the Security not to be redeemed) or any Securities in respect
of which a Repurchase Notice or Designated Event Repurchase Notice has been
given and not withdrawn (except, in the case of a Security to be purchased in
part, the portion of the Security not to be purchased) or any Securities for a
period of 15 days before the mailing of a notice of redemption of Securities to
be redeemed.

13. Persons Deemed Owners.

     Subject to Section 11.01 of the Indenture, the registered Holder of this
Security may be treated as the owner of this Security for all purposes.

14. Unclaimed Money or Securities.

     The Trustee and the Paying Agent shall return to the Company, upon written
request any money or securities held by them for the payment of any amount with
respect to the Securities that remains unclaimed for two years, subject to
applicable unclaimed property laws. After return to the Company, Holders
entitled to the money or securities must look to the Company for payment as
general creditors unless an applicable abandoned property law designates
another person.

15. Amendments and Waivers.

     The Company and the Trustee may, subject to certain exceptions as provided
in the Indenture, enter into an indenture or indentures supplemental to the
Indenture to add any provisions to or to change or eliminate any provisions of
the Indenture or of any other indenture supplemental thereto or to modify the
rights of the Holders of Notes with the written consent of the Holders of not
less than a majority of the aggregate principal amount of the Notes.

     The Indenture also contains provisions permitting the Holders of a
majority in aggregate Principal Amount of the Notes on behalf of the Holders of
all the Notes, to waive certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the Holder of this Note shall be
conclusive and binding upon such Holder and upon all future Holders of this
Note and of any Note issued upon the registration of transfer hereof or in
exchange hereof or in lieu hereof, whether or not notation of such consent or
waiver is made upon this Note.

16. Trustee Dealings with the Company.

     Subject to certain limitations imposed by the TIA, the Trustee under the
Indenture, in its individual or any other capacity, may become the owner or
pledgee of Notes and may otherwise deal with and collect obligations owed to it
by the Company or its Affiliates and may otherwise deal with the Company or
their Affiliates with the same rights it would have if it were not Trustee.

17. No Recourse Against Others.

     A director, officer, employee, agent, representative, stockholder or
equity holder, as such, of the Company shall not have any liability for any
obligations of the Company under the Securities or this Indenture or for any
claim based on, in respect of or by reason of such

 

 

obligations or their creation. By accepting a Note, each Holder shall
waive and release all such liability. The waiver and release shall be part of
the consideration for the issue of the Notes.

18. Authentication.

     This Note shall not be valid until an authorized officer of the Trustee
manually signs the Trustee’s Certificate of Authentication on the other side of
this Security.

19. Abbreviations.

     Customary abbreviations may be used in the name of a Securityholder or an
assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by the
entireties), JT TEN (=joint tenants with right of survivorship and not as
tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors
Act).

20. GOVERNING LAW.

     THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN THE INDENTURE AND THIS
SECURITY.

            The Company will furnish to any Securityholder upon written request and
without charge a copy of the Indenture that has in it the text of this Security
in larger type. Requests may be made to:

Palm Harbor Homes, Inc.

15303 Dallas Parkway, Suite 800

Addison, TX 75001-4600

Attention: Chief Financial Officer

 

 

	 	 	 
	ASSIGNMENT FORM

	 	CONVERSION NOTICE
	 
	 	 
	To assign this Security, fill in the form below:

	 	To convert this Security into Common Stock of
the Company, check the box: o
	 
	 	 
	I or we assign and transfer this Security to
	 	 
	 
	 	 
	

	 	To convert only part of this Security, state
the Principal Amount to be converted (which
must be $1,000 or an integral multiple of
$1,000):
	 
	 	 
	(Insert assignee’s soc. sec. or tax ID no.)

	 	$

	 
	 	 
	

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

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

	 	

	and irrevocably appoint

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

	 	

	 

	 	

	 

	 	

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

	 	

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

	 	 
	

	 	 
	Date:

	 	Your
Signature:

	

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

 

 

SCHEDULE OF EXCHANGES

            The following redemptions, repurchases conversions or exchanges of a part
of this Global Security for Certificated Securities have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	Principal Amount of this	 	Signature of
	 	 	 	Amount of decrease in	 	Amount of increase in	 	Global Security	 	authorized
	 	 	 	Principal Amount of'	 	Principal Amount of	 	Following such decrease	 	signatory of
	Date of Transaction
	 	 	this Global Security
	 	this Global Security
	 	(or increase)
	 	Trustee

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