Document:

Exhibit 4.1

THE MACERICH COMPANY,

as
Issuer,

and

THE
MACERICH PARTNERSHIP, L.P.,

as
Guarantor

3.25%
Convertible Senior Notes due 2012

INDENTURE

DEUTSCHE
BANK TRUST COMPANY AMERICAS,

as
Trustee

March
16, 2007

 

CROSS-REFERENCE
TABLE*

	
  

  	
  Trust Indenture
  Act Section

  	
  Indenture Section

  
	
   

  	
  310

  	
  (a)(1)

  	
  7.09

  
	
   

  	
   

  	
  (a)(2)

  	
  7.09

  
	
   

  	
   

  	
  (a)(3)

  	
  N.A.

  
	
   

  	
   

  	
  (a)(4)

  	
  N.A.

  
	
   

  	
   

  	
  (a)(5)

  	
  N.A.

  
	
   

  	
   

  	
  (b)

  	
  7.08

  
	
   

  	
   

  	
  (c)

  	
  N.A.

  
	
   

  	
  311

  	
  (a)

  	
  7.13

  
	
   

  	
   

  	
  (b)

  	
  7.13

  
	
   

  	
   

  	
  (c)

  	
  N.A.

  
	
   

  	
   

  	
  312 (a)

  	
  2.10.

  
	
   

  	
   

  	
  (b)

  	
  13.03

  
	
   

  	
   

  	
  (c)

  	
  13.03

  
	
   

  	
  313

  	
  (a)

  	
  2.10

  
	
   

  	
   

  	
  (b)

  	
  2.10

  
	
   

  	
   

  	
  (c)

  	
  2.10.

  
	
   

  	
   

  	
  (d)

  	
  2.10.

  
	
   

  	
  314

  	
  (a)

  	
  4.02, 4.03

  
	
   

  	
   

  	
  (b)

  	
  N.A.

  
	
   

  	
   

  	
  (c)(1)

  	
  13.04.

  
	
   

  	
   

  	
  (c)(2)

  	
  13.04

  
	
   

  	
   

  	
  (c)(3)

  	
  N.A.

  
	
   

  	
   

  	
  (d)

  	
  N.A.

  
	
   

  	
   

  	
  (e)

  	
  13.05

  
	
   

  	
   

  	
  (f)

  	
  N.A.

  
	
   

  	
  315

  	
  (a)

  	
  7.01(a)

  
	
   

  	
   

  	
  (b)

  	
  6.09

  
	
   

  	
   

  	
  (c)

  	
  7.01

  
	
   

  	
   

  	
  (d)

  	
  7.01(b), 7.01(c)

  
	
   

  	
   

  	
  (e)

  	
  6.10

  
	
   

  	
  316

  	
  (a) (last sentence)

  	
  8.04

  
	
   

  	
   

  	
  (a)(1)(A)

  	
  6.08

  
	
   

  	
   

  	
  (a)(1)(B)

  	
  6.08

  
	
   

  	
   

  	
  (a)(2)

  	
  N.A.

  
	
   

  	
   

  	
  (b)

  	
  6.05(b)

  
	
   

  	
   

  	
  (c)

  	
  8.01

  
	
   

  	
  317

  	
  (a)(1)

  	
  6.03

  
	
   

  	
   

  	
  (a)(2)

  	
  6.03

  
	
   

  	
   

  	
  (b)

  	
  4.06

  
	
   

  	
  318

  	
  (a)

  	
  13.01

  
	
   

  	
   

  	
  (c)

  	
  13.01

  
						

N.A.
means not applicable.

* This Cross-Reference
Table is not part of the Indenture.

TABLE
OF CONTENTS

 

 

	
   

  	
   

  	
  Page

  
	
  ARTICLE I DEFINITIONS AND INCORPORATION BY
  REFERENCE

  	
   

  	
  1

  
	
  Section 1.01

  	
   

  	
  Definitions

  	
   

  	
  1

  
	
  Section 1.02

  	
   

  	
  Other Definitions

  	
   

  	
  9

  
	
  Section 1.03

  	
   

  	
  Incorporation By Reference of Trust Indenture Act

  	
   

  	
  10

  
	
  Section 1.04

  	
   

  	
  Rules of Construction

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II THE SECURITIES

  	
   

  	
  11

  
	
  Section 2.01

  	
   

  	
  Designation Amount and Issue of Notes

  	
   

  	
  11

  
	
  Section 2.02

  	
   

  	
  Form of Notes

  	
   

  	
  11

  
	
  Section 2.03

  	
   

  	
  Date and Denomination of Notes; Payments of Interest

  	
   

  	
  12

  
	
  Section 2.04

  	
   

  	
  Execution of Notes

  	
   

  	
  14

  
	
  Section 2.05

  	
   

  	
  Exchange and Registration of Transfer of Notes;
  Restrictions on Transfer

  	
   

  	
  14

  
	
  Section 2.06

  	
   

  	
  Mutilated, Destroyed, Lost or Stolen Notes

  	
   

  	
  18

  
	
  Section 2.07

  	
   

  	
  Temporary Notes

  	
   

  	
  19

  
	
  Section 2.08

  	
   

  	
  Cancellation of Notes

  	
   

  	
  19

  
	
  Section 2.09

  	
   

  	
  CUSIP Numbers

  	
   

  	
  19

  
	
  Section 2.10

  	
   

  	
  Noteholders’ Lists and Reports by the Trustee

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III REDEMPTION AND REPURCHASES

  	
   

  	
  20

  
	
  Section 3.01

  	
   

  	
  Redemption to Preserve REIT Status

  	
   

  	
  20

  
	
  Section 3.02

  	
   

  	
  Notice of Redemption

  	
   

  	
  20

  
	
  Section 3.03

  	
   

  	
  Payment of Notes Called for Redemption by the
  Company

  	
   

  	
  21

  
	
  Section 3.04

  	
   

  	
  Sinking Fund

  	
   

  	
  22

  
	
  Section 3.05

  	
   

  	
  Repurchase of Notes at Option of the Holder Upon a
  Fundamental Change

  	
   

  	
  22

  
	
  Section 3.06

  	
   

  	
  Effect of Fundamental Change Repurchase Notice;
  Withdrawal

  	
   

  	
  24

  
	
  Section 3.07

  	
   

  	
  Deposit of Fundamental Change Repurchase Price

  	
   

  	
  25

  
	
  Section 3.08

  	
   

  	
  Notes Repurchased in Part

  	
   

  	
  25

  
	
  Section 3.09

  	
   

  	
  Covenant to Comply With Securities Laws Upon
  Repurchase of Notes

  	
   

  	
  25

  
	
  Section 3.10

  	
   

  	
  Repayment to the Company

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV COVENANTS

  	
   

  	
  26

  
	
  Section 4.01

  	
   

  	
  Payment of Notes

  	
   

  	
  26

  
	
  Section 4.02

  	
   

  	
  SEC and Other Reports

  	
   

  	
  26

  
	
  Section 4.03

  	
   

  	
  Compliance Certificate; Notice of Default

  	
   

  	
  27

  
	
  Section 4.04

  	
   

  	
  Further Instruments and Acts

  	
   

  	
  27

  
	
  Section 4.05

  	
   

  	
  Maintenance of Office or Agency

  	
   

  	
  27

  
	
  Section 4.06

  	
   

  	
  Provisions as to Paying Agent

  	
   

  	
  27

  
	
  Section 4.07

  	
   

  	
  Appointments to Fill Vacancies in Trustee’s Office

  	
   

  	
  28

  
	
  Section 4.08

  	
   

  	
  Existence

  	
   

  	
  29

  
	
  Section 4.09

  	
   

  	
  Taxes on Notes

  	
   

  	
  29

  
	
  Section 4.10

  	
   

  	
  Rule 144A Information Requirement

  	
   

  	
  29

  
	
  Section 4.11

  	
   

  	
  Stay, Extension and Usury Laws

  	
   

  	
  29

  
	
  Section 4.12

  	
   

  	
  Liquidated Damages

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V SUCCESSOR CORPORATION

  	
   

  	
  30

  

 

 ii
 

 

	
  Section 5.01

  	
   

  	
  When the Company May Consolidate, Merge or Transfer
  Assets

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI DEFAULTS AND REMEDIES

  	
   

  	
  30

  
	
  Section 6.01

  	
   

  	
  Events Of Default

  	
   

  	
  30

  
	
  Section 6.02

  	
   

  	
  Acceleration

  	
   

  	
  32

  
	
  Section 6.03

  	
   

  	
  Payments of Notes on Default; Suit Therefor

  	
   

  	
  33

  
	
  Section 6.04

  	
   

  	
  Application of Monies Collected by Trustee

  	
   

  	
  35

  
	
  Section 6.05

  	
   

  	
  Proceedings by Holder

  	
   

  	
  35

  
	
  Section 6.06

  	
   

  	
  Proceedings by Trustee

  	
   

  	
  36

  
	
  Section 6.07

  	
   

  	
  Remedies Cumulative and Continuing

  	
   

  	
  36

  
	
  Section 6.08

  	
   

  	
  Direction of Proceedings and Waiver of Defaults by
  Majority of Holders

  	
   

  	
  37

  
	
  Section 6.09

  	
   

  	
  Notice of Defaults

  	
   

  	
  37

  
	
  Section 6.10

  	
   

  	
  Undertaking to Pay Costs

  	
   

  	
  37

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII THE TRUSTEE

  	
   

  	
  38

  
	
  Section 7.01

  	
   

  	
  Duties and Responsibilities of Trustee

  	
   

  	
  38

  
	
  Section 7.02

  	
   

  	
  Reliance on Documents, Opinions, etc

  	
   

  	
  39

  
	
  Section 7.03

  	
   

  	
  No Responsibility for Recitals, etc

  	
   

  	
  40

  
	
  Section 7.04

  	
   

  	
  Trustee, Paying Agents, Conversion Agents or Note
  Registrar May Own Notes

  	
   

  	
  40

  
	
  Section 7.05

  	
   

  	
  Monies to be Held in Trust

  	
   

  	
  40

  
	
  Section 7.06

  	
   

  	
  Compensation and Expenses of Trustee

  	
   

  	
  40

  
	
  Section 7.07

  	
   

  	
  Officers’ Certificate as Evidence

  	
   

  	
  41

  
	
  Section 7.08

  	
   

  	
  Conflicting Interests of Trustee

  	
   

  	
  41

  
	
  Section 7.09

  	
   

  	
  Eligibility of Trustee

  	
   

  	
  41

  
	
  Section 7.10

  	
   

  	
  Resignation or Removal of Trustee

  	
   

  	
  42

  
	
  Section 7.11

  	
   

  	
  Acceptance by Successor Trustee

  	
   

  	
  43

  
	
  Section 7.12

  	
   

  	
  Succession by Merger

  	
   

  	
  43

  
	
  Section 7.13

  	
   

  	
  Preferential Collection of Claims

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII THE NOTEHOLDERS

  	
   

  	
  44

  
	
  Section 8.01

  	
   

  	
  Action by Noteholders

  	
   

  	
  44

  
	
  Section 8.02

  	
   

  	
  Proof of Execution by Holders

  	
   

  	
  44

  
	
  Section 8.03

  	
   

  	
  Absolute Owners

  	
   

  	
  44

  
	
  Section 8.04

  	
   

  	
  Company-Owned Notes Disregarded

  	
   

  	
  45

  
	
  Section 8.05

  	
   

  	
  Revocation of Consents; Future Holders Bound

  	
   

  	
  45

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX SATISFACTION AND DISCHARGE OF INDENTURE

  	
   

  	
  45

  
	
  Section 9.01

  	
   

  	
  Discharge of Indenture

  	
   

  	
  45

  
	
  Section 9.02

  	
   

  	
  Deposited Monies to be Held in Trust by Trustee

  	
   

  	
  46

  
	
  Section 9.03

  	
   

  	
  Paying Agent to Repay Monies Held

  	
   

  	
  46

  
	
  Section 9.04

  	
   

  	
  Return of Unclaimed Monies

  	
   

  	
  46

  
	
  Section 9.05

  	
   

  	
  Reinstatement

  	
   

  	
  46

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X AMENDMENTS

  	
   

  	
  47

  
	
  Section 10.01

  	
   

  	
  Without Consent of Holders

  	
   

  	
  47

  
	
  Section 10.02

  	
   

  	
  With Consent of Holders

  	
   

  	
  47

  
	
  Section 10.03

  	
   

  	
  Compliance With Trust Indenture Act

  	
   

  	
  48

  
	
  Section 10.04

  	
   

  	
  Revocation and Effect of Consents

  	
   

  	
  48

  
	
  Section 10.05

  	
   

  	
  Notation on or Exchange of Securities

  	
   

  	
  48

  
	
  Section 10.06

  	
   

  	
  Trustee to Sign Supplemental Indentures

  	
   

  	
  49

  
	
  Section 10.07

  	
   

  	
  Effect of Supplemental Indentures

  	
   

  	
  49

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI CONVERSION OF THE SECURITIES

  	
   

  	
  49

  
						

 

 iii
 

 

	
  Section 11.01

  	
   

  	
  Right to Convert

  	
   

  	
  49

  
	
  Section 11.02

  	
   

  	
  Exercise of Conversion Right; No Adjustment for
  Interest or Dividends

  	
   

  	
  52

  
	
  Section 11.03

  	
   

  	
  Cash Payments in Lieu of Fractional Shares

  	
   

  	
  54

  
	
  Section 11.04

  	
   

  	
  Conversion Rate

  	
   

  	
  54

  
	
  Section 11.05

  	
   

  	
  Adjustments to Conversion Rate

  	
   

  	
  54

  
	
  Section 11.06

  	
   

  	
  Effect of Reclassification, Consolidation, Merger or
  Sale on Conversion Privilege

  	
   

  	
  60

  
	
  Section 11.07

  	
   

  	
  Additional Shares Upon the Occurrence of a
  Fundamental Change

  	
   

  	
  61

  
	
  Section 11.08

  	
   

  	
  Rights Issued in Respect of Common Stock Issued Upon
  Conversion

  	
   

  	
  62

  
	
  Section 11.09

  	
   

  	
  Notice Of Certain Transactions

  	
   

  	
  62

  
	
  Section 11.10

  	
   

  	
  Taxes on Shares Issued

  	
   

  	
  63

  
	
  Section 11.11

  	
   

  	
  Reservation of Shares, Shares to be Fully Paid;
  Compliance with Governmental Requirements; Listing of Common Stock

  	
   

  	
  63

  
	
  Section 11.12

  	
   

  	
  Settlement Upon Conversion

  	
   

  	
  64

  
	
  Section 11.13

  	
   

  	
  Trustee’s Disclaimer

  	
   

  	
  66

  
	
  Section 11.14

  	
   

  	
  Ownership Limit

  	
   

  	
  66

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XII GUARANTEE

  	
   

  	
  66

  
	
  Section 12.01

  	
   

  	
  Guarantee

  	
   

  	
  66

  
	
  Section 12.02

  	
   

  	
  Execution and Delivery of Guarantee

  	
   

  	
  68

  
	
  Section 12.03

  	
   

  	
  Consolidation, Merger or Transfer of Assets

  	
   

  	
  68

  
	
  Section 12.04

  	
   

  	
  Limitation of Guarantor’s Liability; Certain
  Bankruptcy Events; Termination on Conversion

  	
   

  	
  69

  
	
  Section 12.05

  	
   

  	
  Application of Certain Terms and Provisions of the
  Guarantor

  	
   

  	
  69

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIII MISCELLANEOUS

  	
   

  	
  70

  
	
  Section 13.01

  	
   

  	
  Trust Indenture Act Controls

  	
   

  	
  70

  
	
  Section 13.02

  	
   

  	
  Notices

  	
   

  	
  70

  
	
  Section 13.03

  	
   

  	
  Communication by Holders With Other Holders

  	
   

  	
  71

  
	
  Section 13.04

  	
   

  	
  Certificate and Opinion as to Conditions Precedent

  	
   

  	
  71

  
	
  Section 13.05

  	
   

  	
  Statements Required in Certificate or Opinion

  	
   

  	
  71

  
	
  Section 13.06

  	
   

  	
  Severability Clause

  	
   

  	
  72

  
	
  Section 13.07

  	
   

  	
  Rules by Trustee, Paying Agent, Conversion Agent and
  Note Registrar

  	
   

  	
  72

  
	
  Section 13.08

  	
   

  	
  Legal Holiday

  	
   

  	
  72

  
	
  Section 13.09

  	
   

  	
  Governing Law.

  	
   

  	
  72

  
	
  Section 13.10

  	
   

  	
  No Recourse Against Others

  	
   

  	
  72

  
	
  Section 13.11

  	
   

  	
  Successors

  	
   

  	
  72

  
	
  Section 13.12

  	
   

  	
  Multiple Originals

  	
   

  	
  72

  
	
  Section 13.13

  	
   

  	
  Table of Contents and Headings

  	
   

  	
  73

  
	
  Section 13.14

  	
   

  	
  USA Patriot Act

  	
   

  	
  73

  
						

 

 

SCHEDULES AND EXHIBITS:

	
  SCHEDULE A

  	
   

  	
  Additional Share Table

  
	
   

  	
   

  	
   

  
	
  EXHIBIT A

  	
   

  	
  Form of Note

  
	
   

  	
   

  	
   

  
	
  EXHIBIT B

  	
   

  	
  Form of Restrictive Legend for Common Stock Issued
  Upon Conversion

  

 

 iv

INDENTURE dated as of March 16, 2007, among
THE MACERICH COMPANY, a Maryland corporation (the “Company”), THE MACERICH PARTNERSHIP, L.P., a Delaware limited
partnership (the “Guarantor”),
and DEUTSCHE BANK TRUST COMPANY AMERICAS, a New York corporation (the “Trustee”).

Each party agrees as follows for the benefit
of the other party and for the equal and ratable benefit of the holders of the
Company’s 3.25% Convertible Senior Notes due 2012:

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 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.

“Agent”
means any Note Registrar, Paying Agent, Conversion Agent or co-registrar.

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

“Bankruptcy
Law” means Title 11, U.S. Code or any similar federal, state, or
foreign law for the relief of debtors.

“beneficial
owner” shall be determined in accordance with Rules 13d-3 and 13d-5
promulgated by the SEC under the Exchange Act, or any successor provision,
except that:  (i) a person shall be deemed
to have “beneficial ownership” of all shares of Common Stock that the Person
has the right to acquire, whether exercisable immediately or only after the
passage of time, and (ii) any percentage of “beneficial ownership” shall be
determined using the definition in clause (i) in both the numerator and the
denominator.

“Board of
Directors” means either the board of directors of the Company or any
duly authorized committee of such board of directors authorized to act for it
with respect to this Indenture.

“Business
Day” means any day, other than a Saturday or Sunday, that is neither
a Legal Holiday nor a day on which commercial banks are authorized or required
by law, regulation or executive order to close in the City of New York.

“Capitalized
Lease” of a Person means any lease of property by such Person as
lessee which would be capitalized on a balance sheet of such Person prepared in
accordance with GAAP.

“Capitalized
Lease Obligations” of a Person means the amount of the obligations
of such Person under Capitalized Leases which would be shown as a liability on
a balance sheet of such Person prepared in accordance with GAAP.

“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 issued 

by that corporation, but
excluding from all of the foregoing any debt securities convertible into
Capital Stock, whether or not such debt securities include any right of
participation with Capital Stock.

“Cash
Equivalents” means, with respect to any Person:  (a) securities issued, guaranteed or insured
by the United States of America or any of its agencies with maturities of not
more than one year from the date acquired; (b) certificates of deposit with
maturities of not more than one year from the date acquired by a United States
federal or state chartered commercial bank of recognized standing, which has
capital and unimpaired surplus in excess of $500,000,000 and which bank or its
holding company has a short-term commercial paper rating of at least A-2 or the
equivalent by S&P or at least P-2 or equivalent by Moody’s; (c) reverse
repurchase agreements with terms of not more than seven days from the date
acquired, for securities of the type described in clause (a) above and entered
into only with commercial banks having the qualifications described in clause
(b) above; (d) commercial paper issued by any Person incorporated under the
laws of the United States of America or any State thereof and rated at least
A-2 or the equivalent thereof by S&P or at least P-2 or the equivalent
thereof of Moody’s, in each case with maturities of not more than one year from
the date acquired; and (e) investments in money market funds registered under
the Investment Company Act of 1940, as amended, which have net assets of at
least $500,000,000 and at least 85% of whose assets consist of securities and
other obligations of the type described in clauses (a) through (d) above.

“Charter” means
the Articles of Amendment and Restatement of the Company dated as of March 15,
1994, as amended or supplemented from time to time in accordance with the terms
thereof and applicable law.

“Closing
Sale Price” of the Common Stock or other Capital Stock or similar
equity interests of the Company on any date means the closing sale price per
share (or if no closing sale price is reported, the average of the closing bid
and ask prices or, if more than one in either case, the average of the average
closing bid and the average closing ask prices) on such date as reported on the
New York Stock Exchange or such other national or regional exchange or market
on which the Common Stock or such other Capital Stock or equity interests of
the Company are then listed or quoted. In the absence of such a quotation, the
Company will determine the closing sale price on the basis the Company
considers appropriate. The closing sale price shall be determined without
reference to any extended or after-hours trading.

“Code” means the
Internal Revenue Code of 1986, as amended.

“Common
Stock” means shares of the Company’s Common Stock, $.01 par value
per share, as they exist on the date of this Indenture or any other shares of
Capital Stock into which the Common Stock may be reclassified or changed, or
which the holders may receive, pursuant to any reclassification, consolidation,
merger, combination, sale or conveyance, including pursuant to Section 11.06.

“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 successor or successors.

“Contingent
Obligation” as to any Person means, without duplication, (a) any
contingent obligation of such Person required to be shown on such Person’s
balance sheet in accordance with GAAP, and (b) any obligation required to be
disclosed in the footnotes to such Person’s financial statements in accordance
with GAAP, guaranteeing partially or in whole any non-recourse Indebtedness,
lease, dividend or other obligation, exclusive of contractual indemnities
(including, without limitation, any indemnity or price-adjustment provision
relating to the purchase or sale of securities or other assets), of such Person
or of any other Person.  The amount of
any Contingent Obligation described in clause (b) 

 2
 

shall be deemed to be (i)
with respect to a guaranty of interest or interest and principal, or operating
income guaranty, the sum of all payments required to be made thereunder (which
in the case of an operating income guaranty shall be deemed to be equal to the
debt service for the note secured thereby), calculated at the interest rate
applicable to such Indebtedness, through (1) in the case of an interest or
interest and principal guaranty, the stated date of maturity of the obligation
(and commencing on the date interest could first be payable thereunder), or (2)
in the case of an operating income guaranty, the date through which such
guaranty will remain in effect, and (ii) with respect to all guarantees not
covered by the preceding clause (i) an amount equal to the stated or
determinable amount of the primary obligation in respect of which such guaranty
is made or, if not stated or determinable, the maximum reasonably anticipated
liability in respect thereof (assuming such Person is required to perform
thereunder) as recorded on the balance sheet and on the footnotes to the most
recent financial statements of the applicable Person required to be delivered
pursuant hereto.  Notwithstanding
anything contained herein to the contrary, guarantees of completion and
non-recourse carve outs in secured loans shall not be deemed to be Contingent
Obligations unless and until a claim for payment has been made thereunder, at
which time any such guaranty of completion shall be deemed to be a Contingent
Obligation in an amount equal to any such claim.  Subject to the preceding sentence, (i) in the
case of a joint and several guaranty given by such Person and another Person
(but only to the extent such guaranty is recourse, directly or indirectly to
the Company or its Subsidiaries), the amount of the guaranty shall be deemed to
be 100% thereof unless and only to the extent that (X) such other Person has
delivered cash or Cash Equivalents to secure all or any part of such Person’s
guaranteed obligations or (Y) such other Person holds an Investment Grade
Credit Rating from either Moody’s of S&P, and (ii) in the case of a
guaranty (whether or not joint and several) of an obligation otherwise
constituting Indebtedness of such Person, the amount of such guaranty shall be
deemed to be only that amount in excess of the amount of the obligation
constituting Indebtedness of such Person. 
Notwithstanding anything contained herein to the contrary, “Contingent Obligations” shall not be deemed
to include guarantees of loan commitments or of construction loans to the
extent the same have not been drawn.

“Conversion
Price” on any date of determination means $1,000 divided by the
Conversion Rate as of such date.

“Corporate
Trust Office” means the office of the Trustee at which at any time
the trust created by this Indenture shall be administered, which office at the
date hereof is located at 60 Wall Street, 27th Floor, New York, New York 10005, or such other
address as the Trustee may designate from time to time by notice to the holders
and 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 holders and the Company).

“Credit
Agreement” means any of:

(a)           the
$450,000,000 Term Loan Facility Credit Agreement, dated as of April 25, 2005,
as amended by the First Amendment thereto, dated as of July 20, 2006, by and
among the Guarantor, as the Borrower; the Company, Macerich WRLP Corp.,
Macerich WRLP LLC, Macerich WRLP II Corp., Macerich WRLP II LP, Macerich TWC II
Corp., Macerich TWC II LLC, Macerich Walleye LLC, IMI Walleye LLC, and Walleye
Retail Investments LLC, as Guarantors (the “Credit
Agreement  Guarantors”);
Deutsche Bank Trust Company Americas, and the institutions from time to time
party thereto, as Lenders; Deutsche Bank Trust Company Americas, as
Administrative Agent for the Lenders and as Collateral Agent for the Benefited
Creditors; Deutsche Bank Securities Inc., as the Sole Lead Arranger and Sole
Bookrunner; Keybank National Association and Commerzbank AG, New York Branch,
as the Co-Syndication Agents; Wells Fargo Bank, National Association and Euro
Hypo AG, New York Branch, as the Co-Documentation Agents for the Interim Loan
Facility; and Wells Fargo Bank, 

 3
 

National
Association and U.S. Bank National Association, as the Co-Documentation Agents
for the Term Loan Facility;

(b)           the
$1,500,000,000 Second Amended and Restated Revolving Loan Facility Credit
Agreement, dated as of July 20, 2006, by and among the Guarantor, as the
Borrower; the Credit Agreement Guarantors, as Guarantors; Deutsche Bank Trust
Company Americas, JPMorgan Chase Bank, and the institutions from time to time
party thereto, as Lenders; Deutsche Bank Trust Company Americas, as the
Administrative Agent for the Lenders and as the Collateral Agent for the
Benefited Creditors; Deutsche Bank Securities Inc. and J.P. Morgan Securities
Inc., as the Joint Lead Arrangers and Joint Bookrunning Managers; JPMorgan
Chase Bank, as the Syndication Agent; Commerzbank AG, New York, Eurohypo AG,
New York Branch and Wells Fargo Bank, National Association, as the
Co-Documentation Agents; and Key Bank, National Association and U.S. Bank
National Association, as the Senior Managing Agents; and

(c)           the
Amended and Restated $250,000,000 Term Loan Facility Credit Agreement, dated as
of April 25, 2005, as amended by the First Amendment thereto, dated as of July
20, 2006, by and among the Guarantor, as the Borrower; the Credit Agreement
Guarantors, as Guarantors; Deutsche Bank Trust Company Americas, JPMorgan Chase
Bank, and the institutions from time to time party thereto, as Lenders; Deutsche
Bank Trust Company Americas, as the Administrative Agent for the Lenders and as
the Collateral Agent for the Benefited Creditors; Deutsche Bank Securities Inc.
and J.P. Morgan Securities Inc., as the Joint Lead Arrangers And Joint
Bookrunners; JPMorgan Chase Bank and Bank One, N.A., as the Co-Syndication
Agents; and Eurohypo Ag, New York Branch and Wells Fargo Bank, National
Association, as the Co-Documentation Agents,

in
the case of each of clauses (a), (b) and (c), giving effect to any and all
amendments, supplements, modifications, renewals, replacements, consolidations,
severances, substitutions and extensions thereof from time to time.

“Credit
Agreement Cross-Default Provisions” means any cross-default event of
default provisions in the Credit Agreement, which provisions are currently set
forth in Sections 9.5 (in the case of recourse indebtedness) and 9.6 (in the
case of nonrecourse indebtedness) of each Credit Agreement, in each case as
such section may be amended, supplemented, superseded, replaced, substituted or
otherwise modified from time to time.

“Credit
Agreement Dollar Threshold” means (a) in the case of recourse
indebtedness, $15.0 million and (b) in the case of non-recourse indebtedness,
$100.0 million; provided, that if
any of the Credit Agreement Cross-Default Provisions are amended, supplemented,
superseded, replaced, substituted or otherwise modified such that the dollar
threshold or thresholds in such applicable Credit Agreement Cross-Default
Provision do not correspond to the dollar thresholds set forth in the preceding
clauses (a) and (b), respectively, then the dollar thresholds set forth in the
preceding clauses (a) and (b) shall be the corresponding dollar threshold or
thresholds set forth in such applicable Credit Agreement Cross-Default
Provision; provided, however, that if all Credit Agreements
then in effect do not have the same dollar thresholds in the respective Credit
Agreement Cross-Default Provisions, then the dollar thresholds set forth in the
preceding clauses (a) and (b) shall be the most restrictive of the
corresponding dollar threshold or thresholds set forth in such applicable
Credit Agreement Cross-Default Provision.

“Current
Market Price” of the Common Stock on any day means the average of
the Closing Sale Price of the Common Stock for each of the ten consecutive
Trading Days ending on 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, “Ex-Date”
means the first date on which the shares of 

 4
 

Common Stock trade on the
applicable exchange or in the applicable market, regular way, without the right
to receive such issuance or distribution.

“Custodian”
means Deutsche Bank Trust Company Americas, as custodian with respect to the
Notes in global form, or any successor entity thereto.

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

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

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

“DTC”
means The Depository Trust Company.

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

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

“Fundamental
Change” is any transaction or event (whether by means of an exchange
offer, liquidation, tender offer, consolidation, merger, combination,
reclassification, recapitalization or otherwise) in connection with which 50%
or more of the then outstanding shares of Common Stock are exchanged for,
converted into or constitute solely the right to receive, consideration that is
not at least 90% shares of common stock that: 
(a) are listed on, or immediately after the transaction or event will be
listed on, a United States national securities exchange; or (b) are approved,
or immediately after the transaction or event will be approved, for quotation
on a United States national securities exchange or in an inter-dealer quotation
system of any registered United States national securities association.

“GAAP”
shall mean generally accepted accounting principles in the United States of
America in effect from time to time.

“Guarantor”
means the party named as the “Guarantor” 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 successor or successors.

“Hedging
Obligations” of a Person means any and all obligations of such
Person or any of its Subsidiaries, whether absolute or contingent and howsoever
and whenever created, arising, evidenced or acquired (including all renewals,
extensions and modifications thereof and substitutions therefor), under (a) any
and all agreements, devices or arrangements designed to protect at least one of
the parties thereto from the fluctuations of interest rates, commodity prices,
exchange rates or forward rates applicable to such party’s assets, liabilities
or exchange transactions, including, but not limited to, dollar-denominated or
cross-currency interest rate exchange agreements, forward currency exchange
agreements, interest rate cap or collar protection agreements, forward rate
currency or interest rate options, puts and warrants, and (b) any and all
cancellations, buy backs, reversals, terminations or assignments of any of the
foregoing.

 5
 

“Indebtedness”
of any Person shall mean without duplication, (a) all liabilities and
obligations of such Person, whether consolidated or representing the
proportionate interest in any other Person, (i) in respect of borrowed money
(whether or not the recourse of the lender is to the whole of the assets of
such Person or only to a portion thereof, and including construction loans),
(ii) evidenced by bonds, notes, debentures or similar instruments, (iii) representing
the balance deferred and unpaid of the purchase price of any property or
services, except those incurred in the ordinary course of its business that
would constitute a trade payable to trade creditors (but specifically excluding
from such exception the deferred purchase price of real property), (iv)
evidenced by bankers’ acceptances, (v) consisting of obligations, whether or
not assumed, secured by liens or payable out of the proceeds or production from
property now or hereafter owned or acquired by such Person (in an amount equal
to the lesser of the obligation so secured and the fair market value of such
property), (vi) consisting of Capitalized Lease Obligations (including any
Capitalized Leases entered into as a part of a sale/leaseback transaction),
(vii) consisting of liabilities and obligations under any receivable sales
transactions, (viii) consisting of a letter of credit or a reimbursement
obligation of such Person with respect to any letter of credit, or (ix)
consisting of Net Hedging Obligations; or (b) all Contingent Obligations and
liabilities and obligations of others of the kind described in the preceding
clause (a) that such Person has guaranteed or that is otherwise its legal
liability and all obligations to purchase, redeem or acquire for cash or
non-cash consideration any Capital Stock or other equity interests and (c)
obligations of such Person to purchase for cash or non-cash consideration
Securities or other property arising out of or in connection with the sale of
the same or substantially similar securities or property.  For the avoidance of doubt, Indebtedness of
any water, sewer, or other improvement district that is payable from
assessments or taxes on property located within such district shall not be
deemed to be Indebtedness of any Person owning property located within such
district; provided that such Person has not
otherwise obligated itself in respect of the repayment of such
Indebtedness.  Notwithstanding the
foregoing, if the definition of “Indebtedness” in any of the Credit Agreements
then in effect is amended, supplemented, superseded, replaced, substituted or
otherwise modified such that the such definition does not correspond to the
definition of Indebtedness set forth in the preceding sentence, then the
definition of Indebtedness for purposes of this Indenture and the Notes shall
be the definition of Indebtedness set forth in the Credit Agreements then in
effect; provided, however, that if all Credit Agreements
then in effect do not have the same definition of Indebtedness, then the
definition of Indebtedness for purposes of this Indenture shall be the most
expansive of the definitions set forth in the Credit Agreements then in effect.

“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.

“Initial
Purchasers” shall mean J.P. Morgan Securities Inc. and Deutsche Bank
Securities Inc.

“Liquidated
Damages” has the meaning set forth in the Registration Rights
Agreement.

“Market Disruption Event”
means (1) a failure by the primary United States national security exchange or
market on which the Common Stock is listed or admitted for trading to open for
trading during its regular trading session or (2) the occurrence or existence
prior to 1:00 p.m., New York City time, on any Trading Day for the Common Stock
of an aggregate one half hour period, of any suspension or limitation imposed
on trading (by reason of movements in price exceeding limits permitted by the
stock exchange or otherwise) in the Common Stock or in any options, contracts
or future contracts relating to the Common Stock.

“Moody’s”
means Moody’s Investors Service, Inc. or any successor thereto.

“Net
Hedging Obligations” shall mean, as of any date of determination,
the excess (if any) of all “unrealized losses” over all “unrealized profits” of
such Person arising from Hedging Obligations. 

 6
 

“Unrealized losses” means
the fair market value of the cost to such Person of replacing such Hedging
Obligation as of the date of determination (assuming the Hedging Obligation
were to be terminated as of that date), and “unrealized profits” means the fair
market value of the gain to such Person of replacing such Hedging Obligation as
of the date of determination (assuming such Hedging Obligation were to be
terminated as of that date).

“Note”
or “Notes” means any of the
Company’s 3.25% Convertible Senior Notes due 2012 issued under this Indenture.

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

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

“Obligations”
means all obligations for principal, premium, interest, penalties, fees,
indemnifications, reimbursements, damages and other liabilities payable under
the documentation under which any indebtedness is created, evidenced or
secured, including, in the case of the Notes, Liquidated Damages, if any, and
Additional Interest, if any.

“Offering
Memorandum” means the offering memorandum of the Company dated March
12, 2007 relating to the offering of the Notes.

“Officer”
means, with respect to any Person, the Chairman of the Board, the Chief
Executive Officer, the President, any Vice President (whether or not such title
is preceded by any modifier such as “Executive,
“Senior” or the like),
the Chief Financial Officer, the Treasurer, the Controller or the Secretary of
such Person or any other officer designated by the board of directors of such
Person serving in a similar capacity.

“Officers’
Certificate” means a written certificate containing the information
specified in Sections 13.04 and 13.05, signed in the name of the Company by any
two Officers, and delivered to the Trustee. 
An Officers’ Certificate given pursuant to Section 4.03 shall be signed
by the principal executive officer, principal financial officer or the
principal accounting officer of the Company but need not contain the
information specified in Sections 13.04 and 13.05.

“Opinion of
Counsel” means a written opinion containing the information
specified in Sections 13.04 and 13.05, from legal counsel who is acceptable to
the Trustee in its reasonable discretion. 
The counsel may be an employee of, or counsel to, the Company or the
Trustee.

“Paying
Agent” has the meaning specified in Section 2.08.

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

“PORTAL
Market” means The PORTAL Market operated by the Nasdaq Global Market
or any successor thereto.

“Record
Date” has the meaning specified in Section 2.03.

“Registration Rights
Agreement” means the Registration Rights Agreement dated as of March
16, 2007 among the Company and the Initial Purchasers relating to the Common
Stock issuable upon conversion of the Notes.

 7
 

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

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

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

“S&P”
means Standard & Poor’s Rating Services, a division of the McGraw-Hill
Companies, Inc., or any successor thereto.

“SEC”
means the Securities and Exchange Commission.

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

“Significant
Subsidiary” has the meaning ascribed to such term in Regulation S-X
(17 CFR Part 210).

“Stated
Maturity,” when used with respect to any Note, means the date
specified in such Note as the fixed date on which an amount equal to the
principal amount of such Note is due and payable.

“Subsidiary”
means, with respect to any Person, (a) any corporation of which the outstanding
Capital Stock having at least a majority of the votes entitled to be cast in
the election of directors under ordinary circumstances (determined without
regard to any classification of directors) shall at the time be owned, directly
or indirectly, by such Person, (b) any other Person (other than a partnership)
of which at least a majority of the voting interests under ordinary
circumstances is at the time, directly or indirectly, owned by such Person or
(c) any partnership (i) the sole general partner or the managing general
partner of which is such Person or a Subsidiary of such Person or (ii) the only
general partners of which are such Person or one or more Subsidiaries of such
Person (or any combination thereof).

“TIA”
means the Trust Indenture Act of 1939 as in effect on the date of this
Indenture, provided 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 a day during which trading in the Common Stock generally
occurs on the New York Stock Exchange or, if the Common Stock is not listed on
the New York Stock Exchange, on the principal other national or regional
securities exchange on which the Common Stock is then listed or, if the Common
Stock is not listed on a national or regional securities exchange, on the
Nasdaq Global Market or, if the Common Stock is not quoted on the Nasdaq Global
Market, on the principal other U.S. national or regional securities exchange on
which the Common Stock is then listed or, if the Common Stock is not listed on
a U.S. national or regional securities exchange, on the principal other market
on which the Common Stock is then traded. 
However, when used in Section 11.12 or elsewhere in this Indenture with
respect to the terms defined in Section 11.12(c), “Trading Day”
shall mean a Trading Day (as defined in the immediately preceding sentence)
during which there is no Market Disruption Event.

 8
 

“Trading
Price” of the Notes on any date of determination means the average
of the secondary market bid quotations per Note obtained by the Trustee for
$5,000,000 principal amount of the Notes at approximately 3:30 p.m., New York
City time, on such determination date from two independent nationally recognized
securities dealers the Company selects, which may include one or more of the
Initial Purchasers, 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 $5,000,000 principal amount of the Notes 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 Notes, then the Trading Price of the Notes will be deemed to be less
than 95% of the applicable Conversion Rate multiplied by the Closing Sale Price
on such determination date.

“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.

Section 1.02                                Other Definitions.

	
  Term

  	
  Defined in Section

  
	
   

  	
   

  
	
  Acceleration
  Notice

  	
  6.02(a)

  
	
  Additional
  Interest

  	
  6.02(c)

  
	
  Additional
  Shares

  	
  11.07(a)

  
	
  Benefited Party

  	
  12.01

  
	
  Cash Percentage

  	
  11.12(d)

  
	
  Cash Settlement
  Averaging Period

  	
  11.12(c)

  
	
  Company
  Fundamental Change Repurchase Notice

  	
  3.05(b)

  
	
  Conversion Agent

  	
  2.08

  
	
  Conversion Date

  	
  11.02

  
	
  Conversion
  Notice

  	
  11.02

  
	
  Conversion Rate

  	
  11.04

  
	
  Daily Conversion
  Value

  	
  11.12(c)

  
	
  Daily Excess
  Amount

  	
  11.12(c)

  
	
  Daily
  Measurement Value

  	
  11.12(c)

  
	
  Daily Settlement
  Amount

  	
  11.12(c)

  
	
  Daily VWAP

  	
  11.12(c)

  
	
  Distributed
  Property

  	
  11.05(d)

  
	
  Dividend
  Threshold Amount

  	
  11.05(e)

  
	
  Effective Date

  	
  11.07(b)

  
	
  Event of Default

  	
  6.01

  
	
  Ex-Dividend Date

  	
  11.05(g)

  
	
  Expiration Time

  	
  11.05(f)

  
	
  Fundamental
  Change Repurchase Date

  	
  3.05(a)

  
	
  Fundamental
  Change Repurchase Notice

  	
  3.05(c)

  
	
  Fundamental
  Change Repurchase Price

  	
  3.05(a)

  
	
  Global Note

  	
  2.02

  
	
  Guarantee
  Obligations

  	
  12.01

  
	
  Interest Payment
  Date

  	
  Exhibit A

  
	
  Legal Holiday

  	
  13.08

  
	
  Paying Agent

  	
  2.08

  
	
  Payment Default

  	
  6.01(e)

  
	
  Purchased Shares

  	
  11.05(f)

  
	
  Quarter

  	
  11.01(a)

  
	
  Redemption Date

  	
  3.01(a)

  
	
  Redemption Price

  	
  3.01(a)

  
	
  Rights

  	
  11.08

  
	
  Rights Plan

  	
  11.08

  
	
  Rule 144A
  Information

  	
  4.10

  
	
  Scheduled
  Trading Day

  	
  11.12(c)

  
	
  Settlement
  Amount

  	
  11.12(a)

  
	
  Stock Price

  	
  11.07(b)

  
	
  Trigger Event

  	
  11.05(d)

  

 

 9
 

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
incorporated by reference in this Indenture have the following meanings:

“Commission”
means the SEC.

“Indenture
Notes” means the Notes.

“Indenture
Note Holder” means a holder.

“Indenture
to be Qualified” means this Indenture.

“Indenture
Trustee” or “Institutional Trustee”
means the Trustee.

“Obligor”
on the indenture securities means the Company.

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

Section 1.04                                Rules of Construction.

Unless the context otherwise requires:

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

(b)           references
to “interest” with respect to the Notes shall be deemed to include Liquidated
Damages, if any, and Additional Interest, if any;

(c)           any
reference to “day” means a calendar day unless a Business Day, Trading Day,
Scheduled Trading Day or other day is specified;

(d)           “or”
is not exclusive;

 10
 

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

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

ARTICLE II

THE SECURITIES

Section 2.01                                Designation Amount and Issue of Notes.

The Notes shall be designated as “3.25% Convertible Senior
Notes due 2012.”  Upon the execution
of this Indenture, or from time to time thereafter, Notes may be executed by
the Company as provided in Section 2.04 and delivered to the Trustee for
authentication, and the Trustee shall thereupon authenticate and deliver Notes
upon a written order of the Company, such order signed by two Officers of the
Company, or by an Officer of the Company and by any Assistant Treasurer of the
Company or any Assistant Secretary of the Company, without any further action
by the Company hereunder.

The aggregate principal amount of Notes which
may be authenticated and delivered under this Indenture is unlimited.  The Company may, without the consent of the
holders of Notes, issue additional Notes (the “Additional Notes”) from time to time in the future with the same
terms and the same CUSIP number as the Notes originally issued under this
Indenture (the “Initial Notes”) in
an unlimited principal amount, provided
that such Additional Notes must be part of the same issue as the Initial Notes
for United States federal income tax purposes. 
The Initial Notes and any such Additional Notes will constitute a single
series of debt securities, and in circumstances in which this Indenture
provides for the holders of Notes to vote or take any action, the holders of
Initial Notes and the holders of any such Additional Notes will vote or take
that action as a single class.

Section 2.02                                Form of Notes.

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

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

So long as the Notes are eligible for
book-entry settlement with the Depositary, or unless otherwise required by law,
or otherwise contemplated by Section 2.05(b), all of the Notes will be
represented by one or more Notes in global form registered in the name of the
Depositary or the nominee of the Depositary (a “Global Note”).  The
transfer and exchange of beneficial interests in any such Global Note shall be
effected through the Depositary in accordance with this Indenture and the
applicable procedures of the Depositary. 
Except as provided in Section 2.05(b), beneficial owners of a Global
Note 

 11
 

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

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

Section 2.03                                Date and Denomination of Notes; Payments of Interest.

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

(b)           The
Person in whose name any Note is registered on the Note Register at 5:00 p.m.,
New York City time, on any Record Date with respect to any Interest Payment
Date shall be entitled to receive the interest (including Liquidated Damages,
if any, and Additional Interest, if any) payable on such Interest Payment
Date.  Notwithstanding the foregoing,
interest (including Liquidated Damages, if any, and Additional Interest, if
any) payable upon redemption or repurchase will be payable to the Person to
whom the Redemption Price or Fundamental Change Repurchase Price, as the case
may be, is payable, unless the Redemption Date or the Fundamental Change
Repurchase Date, as the case may be, is after 5:00 p.m., New York City time, on
a Record Date and prior to 9:00 a.m., New York City time, on the corresponding
Interest Payment Date, in which case the semi-annual payment of interest
(including Liquidated Damages, if any, and Additional Interest, if any)
becoming due on such Interest Payment Date shall be payable to the holder of
such Note registered as such on the applicable Record Date.

Notwithstanding the foregoing, any Note or
portion thereof surrendered for conversion during the period after 5:00 p.m.,
New York City time, on the Record Date and prior to 9:00 a.m., New York City
time, on the corresponding Interest Payment Date shall be accompanied by
payment, in immediately available funds or other funds acceptable to the
Company, of an amount equal to the interest (including Liquidated Damages, if
any, and Additional Interest, if any) otherwise payable on such Interest
Payment Date on the principal amount being converted; provided that no such payment need be made
(1) if a holder converts its Notes in connection with a redemption and the
Company has specified a Redemption Date that is after a Record Date and on or
prior to the next Interest Payment Date, (2) if a holder converts its Notes in
connection with a Fundamental Change and the Company has specified a
Fundamental Change Repurchase Date that is after a Record Date and on or prior
to the next Interest Payment Date, (3) with respect to Notes surrendered
for conversion on the Interest Payment Date, (4) if a holder converts its
Notes after the Record Date immediately preceding the Stated Maturity, or
(5) to the extent of any overdue interest, if any exists at the time of
conversion with respect to such Note. 
Interest shall be payable at the office of the Company maintained by the
Company for such purposes in the Borough of Manhattan, City of New York, which
shall initially be an office or agency of the Trustee.

 12

The Company shall pay interest (including
Liquidated Damages, if any, and Additional Interest, if any) (i) on any Notes
in certificated form (x) by check mailed to the address of the Person entitled
thereto as it appears in the Note Register or (y) if a holder of such Notes
with an aggregate principal amount in excess of $1,000,000 so requests to the
Note Registrar not later than the relevant Record Date, by wire transfer in
immediately available funds to such holder’s account in North America, which
request shall remain in effect until such holder notifies, in writing, the Note
Registrar to the contrary, or (ii) on any Global Note by wire transfer of
immediately available funds to the account of the Depositary or its nominee.

If a payment date is not a Business Day,
payment shall be made on the next succeeding Business Day, and no additional
interest (including Liquidated Damages, if any, and Additional Interest, if
any) shall accrue thereon.  The term “Record Date” with respect to any Interest
Payment Date shall mean the March 1 or September 1 preceding the applicable
March 15 or September 15 Interest Payment Date, respectively.

(c)           Any
interest on any Note which is payable, but is not punctually paid or duly
provided for, on any Interest Payment Date (herein called “Defaulted Interest”) shall forthwith cease
to be payable to the holder registered as such on the relevant Record Date, and
such Defaulted Interest shall be paid by the Company, at its election in each
case, as provided in clause (1) or (2) below:

(1)           The
Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Notes are registered at 5:00 p.m., New York City time, on a
special record date for the payment of such Defaulted Interest, which shall be
fixed in the following manner.  The
Company shall notify the Trustee in writing of the amount of Defaulted Interest
proposed to be paid on each Note and the date of the proposed payment (which
shall be not less than 25 days after the receipt by the Trustee of such notice,
unless the Trustee shall consent to an earlier date), and at the same time the
Company shall deposit with the Trustee an amount of money equal to the
aggregate amount to be paid in respect of such Defaulted Interest or shall make
arrangements satisfactory to the Trustee for such deposit on or prior to the
date of the proposed payment, such money when deposited to be held in trust for
the benefit of the Persons entitled to such Defaulted Interest as in this
clause provided.  Thereupon the Trustee
shall fix a special record date for the payment of such Defaulted Interest
which shall be not more than 15 days and not less than ten days prior to the
date of the proposed payment, and not less than ten days after the receipt by
the Trustee of the notice of the proposed payment (unless, the Trustee shall
consent to an earlier date).  The Trustee
shall promptly notify the Company of such special record date and, in the name
and at the expense of the Company, shall cause notice of the proposed payment
of such Defaulted Interest and the special record date therefor to be mailed,
first-class postage prepaid, to each holder at such holder’s address as it
appears in the Note Register, not less than ten days prior to such special
record date (unless, the Trustee shall consent to an earlier date).  Notice of the proposed payment of such
Defaulted Interest and the special record date therefor having been so mailed,
such Defaulted Interest shall be paid to the Persons in whose names the Notes
are registered at 5:00 p.m., New York City time, on such special record date
and shall no longer be payable pursuant to the following clause (2) of this
Section 2.03(c).

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

(d)           If
the Paying Agent holds, in accordance with this Indenture, prior to 11:00 a.m.,
New York City time, on a Redemption Date, on a Fundamental Change Repurchase
Date, or on the Stated 

 13
 

Maturity, money sufficient
to pay amounts owed with respect to Notes payable on that date, then
(i) immediately after such Redemption Date, Fundamental Change Repurchase
Date or Stated Maturity, as the case may be: 
(x) such Notes shall cease to be outstanding, (y) interest (including
Liquidated Damages, if any, and Additional Interest, if any) on such Notes
shall cease to accrue, and (z) except as provided in Section 7.05 and Section
9.02, such Notes shall cease to be entitled to any benefit or security under
this Indenture, and the holders thereof shall have no right in respect of such
Notes except the right to receive the Redemption Price, Fundamental Change
Repurchase Price or principal amount thereof, as the case may be, plus accrued
and unpaid interest (including Liquidated Damages, if any, and Additional
Interest, if any) up to but not including such Redemption Date, Fundamental
Change Repurchase Date or Stated Maturity, as the case may be, and (ii) after
5:00 p.m., New York City time, on the Business Day immediately preceding such
Redemption Date, Fundamental Change Repurchase Date or Stated Maturity, as the
case may be, such Notes shall cease to be convertible pursuant to this
Indenture.

Section 2.04           Execution of Notes.

The Notes shall be signed in the name and on
behalf of the Company by the manual or facsimile signature of an Officer.  Only such Notes as shall bear thereon a
certificate of authentication substantially in the form set forth on the form
of Note attached as Exhibit A, manually executed by the Trustee (or an
authenticating agent appointed by the Trustee), shall be entitled to the
benefits of this Indenture or be valid or obligatory for any purpose.  Such certificate by the Trustee (or such an
authenticating agent) upon any Note executed by the Company shall be conclusive
evidence that the Note so authenticated has been duly authenticated and
delivered hereunder and that the holder is entitled to the benefits of this
Indenture.

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

Section 2.05           Exchange and Registration of
Transfer of Notes; Restrictions on Transfer.

(a)           The
Company shall cause to be kept at the Corporate Trust Office a register (the
register maintained in such office and in any other office or agency of the
Company designated pursuant to Section 4.05 being herein sometimes collectively
referred to as the “Note Register”)
in which, subject to such reasonable regulations as it may prescribe, the
Company shall provide for the registration of Notes and of transfers of
Notes.  The Note Register shall be in
written form or in any form capable of being converted into written form within
a reasonably prompt period of time.  The
Trustee is hereby appointed “Note Registrar”
for the purpose of registering Notes and transfers of Notes as herein provided.
The Company may appoint one or more co-registrars in accordance with Section
4.05.

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

Notes may be exchanged for other Notes of any
authorized denominations and of a like aggregate principal amount, upon
surrender of the Notes to be exchanged at any such office or agency maintained
by the Company pursuant to Section 4.05. 
Whenever any Notes are so surrendered for exchange, the

 14
 

Company shall execute, and
the Trustee shall authenticate and deliver, the Notes which the holder making
the exchange is entitled to receive bearing registration numbers not
contemporaneously outstanding.

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

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

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

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

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

(ii)   Notwithstanding any other provision in this
Indenture, no Global Note may be exchanged in whole or in part for Notes
registered, and no transfer of a Global Note in whole or in part may be
registered, in the name of any Person other than the Depositary or a nominee
thereof unless (1) the Depositary (x) has notified the Company that it is
unwilling or unable to continue as Depositary for such Global Note or (y) has
ceased to be a clearing agency registered under the Exchange Act, and a
successor depositary has not been appointed by the Company within 90 days, (2)
an Event of Default has occurred and is continuing or (3) the Company, in its
sole discretion, notifies the Trustee in writing that it no longer wishes to
have all the Notes represented by Global Notes. 
Any Global Note exchanged pursuant to clause (1) or (2) above shall be
so exchanged in whole and not in part and any Global Note exchanged pursuant to
clause (3) above may be exchanged in whole or from time to time in part as
directed by the Company.  Any Note issued
in exchange for a Global Note or any portion thereof shall be a Global Note; provided that any such Note so issued that
is registered in the name of a Person other than the Depositary or a nominee
thereof shall not be a Global Note.

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

 15
 

authenticate and make available for
delivery the Note issuable on such exchange to or upon the written order of the
Depositary or an authorized representative thereof.

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

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

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

(c)           Every
Note (and all securities issued in exchange therefor or in substitution
thereof)  that bears or is required under
this Section 2.05(c) to bear the legend set forth in this Section 2.05(c)
(together with any Common Stock issued upon conversion of the Notes and
required to bear the legend set forth in Exhibit B, collectively, the “Restricted Securities”) shall be subject to
the restrictions on transfer set forth in this Section 2.05(c) (including those
set forth in the legend below and the legend set forth in Exhibit B)
unless such restrictions on transfer shall be waived by written consent of the
Company, and the holder of each such Restricted Security, by such holder’s
acceptance thereof, agrees to be bound by all such restrictions on transfer.  As used in this Section 2.05(c), the term “transfer” means any sale, pledge, loan,
transfer or other disposition whatsoever of any Restricted Security or any
interest therein.

Until the expiration of the holding period
applicable to sales of Restricted Securities under Rule 144(k) under the
Securities Act (or any successor provision), any certificate evidencing a
Restricted Security shall bear a legend in substantially the following form (or
as set forth in Exhibit B, in the case of Common Stock issued upon
conversion of the Notes), unless such Restricted Security has been sold
pursuant to a registration statement that has been declared effective under the
Securities Act (and which continues to be effective at the time of such
transfer) or sold pursuant to Rule 144 under the Securities Act or any similar
provision then in force, or unless otherwise agreed by the Company in writing,
with written notice thereof to the Trustee:

THE SECURITY EVIDENCED BY THIS CERTIFICATE
HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT OF 1933”), OR 

 16
 

ANY STATE SECURITIES LAWS,
AND MAY NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE.
BY ITS ACQUISITION HEREOF, THE HOLDER:

(1)           REPRESENTS THAT IT IS A “QUALIFIED INSTITUTIONAL
BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT OF 1933;

(2)           AGREES THAT IT WILL NOT, PRIOR TO THE
DATE (THE “RESALE RESTRICTION TERMINATION DATE”) THAT IS TWO YEARS AFTER THE
LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE COMPANY
OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS SECURITY (OR ANY
PREDECESSOR OF SUCH SECURITY), RESELL OR OTHERWISE TRANSFER THE SECURITY
EVIDENCED HEREBY OR THE COMMON STOCK ISSUABLE UPON CONVERSION OF SUCH SECURITY
EXCEPT (A) TO THE MACERICH COMPANY OR ANY SUBSIDIARY THEREOF, (B) TO A
QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES
ACT OF 1933, (C) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE
144 UNDER THE SECURITIES ACT OF 1933 (IF AVAILABLE), OR (D) PURSUANT TO A
REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES
ACT OF 1933 AND WHICH CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER;
AND

(3)           AGREES THAT IT WILL DELIVER TO EACH
PERSON TO WHOM THE SECURITY EVIDENCED HEREBY IS TRANSFERRED (OTHER THAN A
TRANSFER PURSUANT TO CLAUSE 2(C) OR 2(D) ABOVE) A NOTICE SUBSTANTIALLY TO THE
EFFECT OF THIS LEGEND.

The foregoing legend shall be removed as to
any Note upon the earlier of (i) the Resale Restriction Termination Date and
(ii) the transfer of such Note pursuant to clause 2(C) or 2(D) of the foregoing
legend. In such case, upon surrender of such Note for exchange to the Note
Registrar in accordance with the provisions of this Section 2.05, and, in the
case of clause (ii) of this paragraph, delivery to the Note Registrar of
documentation reasonably satisfactory to the Note Registrar of such transfer,
such Note may be exchanged for a new Note or Notes, of like tenor and aggregate
principal amount, which shall not bear the restrictive legend required by this
Section 2.05(c).  If such Restricted
Security surrendered for exchange is represented by a Global Note bearing the
legend set forth in this Section 2.05(c), the principal amount of the legended
Global Note shall be reduced (subject to, in the case of clause (ii) of this
paragraph, delivery to the Note Registrar of documentation reasonably
satisfactory to the Note Registrar as described in the immediately preceding
sentence) by the appropriate principal amount and the principal amount of a
Global Note without the legend set forth in this Section 2.05(c) shall be
increased by an equal principal amount. 
If a Global Note without the legend set forth in this Section 2.05(c) is
not then outstanding, the Company shall execute and the Trustee shall
authenticate and deliver an unlegended Global Note to the Depositary.

(d)           The
Trustee shall have no responsibility or obligation to any Agent Members or any
other Person with respect to the accuracy of the books or records, or the acts
or omissions, of the Depositary or its nominee or of any participant or member
thereof, with respect to any ownership interest in the Notes or with respect to
the delivery to any Agent Member or other Person (other than the Depositary) of
any notice (including any notice of redemption) or the payment of any amount,
under or with respect to such Notes.  All
notices and communications to be given to the holders and all payments to be
made to holders under the Notes shall be given or made only to or upon the
order of the registered holders (which shall be the Depositary or its nominee
in the case of a Global Note).  The
rights of beneficial owners in any Global 

 17
 

Note shall be exercised only through the Depositary subject
to the customary procedures of the Depository. 
The Trustee may rely and shall be fully protected in relying upon
information furnished by the Depositary with respect to its Agent Members.

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

Section 2.06           Mutilated, Destroyed, Lost or
Stolen Notes.

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

Following receipt by the Trustee or such
authenticating agent, as the case may be, of satisfactory security or indemnity
and evidence, as described in the preceding paragraph, the Trustee or such
authenticating agent may authenticate any such substituted Note and make
available for delivery such Note. Upon the issuance of any substituted Note,
the Company may require the payment by the holder of a sum sufficient to cover
any tax, assessment or other governmental charge that may be imposed in
relation thereto and any other expenses connected therewith.  In case any Note which has matured or is
about to mature, or has been called for redemption, or has been properly
tendered for repurchase on a Fundamental Change Repurchase Date (and not
withdrawn), or is to be converted pursuant to this Indenture, shall become
mutilated or be destroyed, lost or stolen, the Company may, instead of issuing
a substitute Note, pay or authorize the payment of or convert or authorize the
conversion of the same (without surrender thereof except in the case of a
mutilated Note), as the case may be, if the applicant for such payment or
conversion shall furnish to the Company, to the Trustee and, if applicable, to
such authenticating agent such security or indemnity as may be required by them
to save each of them harmless for any loss, liability, cost or expense caused
by or in connection with such substitution, and, in every case of destruction,
loss or theft, the applicant shall also furnish to the Company, the Trustee
and, if applicable, any Paying Agent or conversion agent evidence to their
satisfaction of the destruction, loss or theft of such Note and of the
ownership thereof.

Every substitute Note issued pursuant to the
provisions of this Section 2.06 by virtue of the fact that any Note is
destroyed, lost or stolen shall constitute an additional contractual obligation
of the Company, whether or not the destroyed, lost or stolen Note shall be
found at any time, and shall be entitled to all the benefits of (but shall be
subject to all the limitations set forth in) this Indenture equally and
proportionately with any and all other Notes duly issued hereunder.  To the extent permitted by law, all Notes
shall be held and owned upon the express condition that the foregoing
provisions are exclusive with respect to the replacement or payment or
conversion or redemption or repurchase of mutilated, destroyed, lost or stolen
Notes and shall preclude any and all other rights or remedies notwithstanding
any 

 18
 

law or statute existing or
hereafter enacted to the contrary with respect to the replacement or payment or
conversion or redemption or repurchase of negotiable instruments or other
securities without their surrender.

Section 2.07           Temporary Notes.

Pending the preparation of Notes in
certificated form, the Company may execute and the Trustee or an authenticating
agent appointed by the Trustee shall, upon the written request of the Company,
authenticate and deliver temporary Notes (printed or lithographed).  Temporary Notes shall be issuable in any
authorized denomination, and substantially in the form of the Notes in
certificated form, but with such omissions, insertions and variations as may be
appropriate for temporary Notes, all as may be determined by the Company.  Every such temporary Note shall be executed
by the Company and authenticated by the Trustee or such authenticating agent
upon the same conditions and in substantially the same manner, and with the
same effect, as the Notes in certificated form. Without unreasonable delay, the
Company will execute and deliver to the Trustee or such authenticating agent
Notes in certificated form and thereupon any or all temporary Notes may be
surrendered in exchange therefor, at each office or agency maintained by the
Company pursuant to Section 4.05 and the Trustee or such authenticating agent
shall authenticate and make available for delivery in exchange for such
temporary Notes an equal aggregate principal amount of Notes in certificated
form.  Such exchange shall be made by the
Company at its own expense and without any charge therefor.  Until so exchanged, the temporary Notes shall
in all respects be entitled to the same benefits and subject to the same
limitations under this Indenture as Notes in certificated form authenticated
and delivered hereunder.

Section 2.08           Cancellation of Notes.

All Notes surrendered for the purpose of
payment, redemption, repurchase, conversion, exchange or registration of transfer
shall, if surrendered to the Company or any paying agent to whom Notes may be
presented for payment (the “Paying Agent”)
or conversion agent (the “Conversion Agent”),
which, in each case, shall initially be the Trustee, or any Note Registrar, be
surrendered to the Trustee and promptly canceled by it or, if surrendered to
the Trustee, shall be promptly canceled by it and no Notes shall be issued in
lieu thereof except as expressly permitted by any of the provisions of this
Indenture.  The Trustee shall dispose of
such canceled Notes in accordance with its customary procedures.  If the Company shall acquire any of the
Notes, such acquisition shall not operate as a redemption, repurchase or
satisfaction of the indebtedness represented by such Notes unless and until the
same are delivered to the Trustee for cancellation.

Section 2.09           CUSIP Numbers.

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

Section 2.10           Noteholders’ Lists and Reports by
the Trustee.

(a)           The
Company shall furnish or cause to be furnished to the Trustee, semi-annually,
not more than 15 days after each March 1 and September 1 in each year beginning
with September 1, 2007, and at such other times as the Trustee may reasonably
request in writing, within 30 days after receipt by 

 19
 

the Company of any such request (or such lesser time as the
Trustee may reasonably request in order to enable it to timely provide any
notice to be provided by it hereunder), a list in such form as the Trustee may
reasonably require of the names and addresses of the holders of Notes as of a
date not more than 15 days (or such other date as the Trustee may reasonably
request in order to so provide any such notices) prior to the time such
information is furnished, except that no such list need be furnished by the
Company to the Trustee so long as the Trustee is acting as the sole Note
Registrar.

(b)           The
Trustee shall preserve, in as current a form as is reasonably practicable, all
information as to the names and addresses of the holders of Notes contained in
the most recent list furnished to it as provided in Section 2.10(a) or
maintained by the Trustee in its capacity as Note Registrar or co-registrar in
respect of the Notes, if so acting.  The
Trustee may destroy any list furnished to it as provided in Section 2.10(a)
upon receipt of a new list so furnished. 
The rights of holders to communicate with other holders of Notes with
respect to their rights under this Indenture or under the Notes, and the
corresponding rights and duties of the Trustee, shall be as provided by the
TIA.  Every holder agrees with the
Company and the Trustee that neither the Company nor the Trustee nor any agent
of either of them shall be held accountable by reason of any disclosure of
information as to names and addresses of holders of Notes made pursuant to the
TIA.

(c)           Within
60 days after May 15 of each year commencing with the year 2007, the
Trustee shall transmit to holders of Notes such reports dated as of May 15
of the year in which such reports are made concerning the Trustee and its
actions under this Indenture as may be required pursuant to the TIA at the
times and in the manner provided pursuant thereto.  In the event that no events have occurred
under the applicable sections of the TIA the Trustee shall be under no duty or
obligation to provide such reports.

ARTICLE III

REDEMPTION AND REPURCHASES

Section 3.01           Redemption to Preserve REIT Status.

(a)           The
Company may redeem all the Notes then outstanding, in whole but not in part, at
any time the Company determines it is necessary to do so in order to preserve
the Company’s status as a real estate investment trust under the Code (the date
of any such redemption, the “Redemption Date”),
for cash at a price equal to 100% of the principal amount of the Notes to be
redeemed (the “Redemption Price”),
together with accrued but unpaid interest (including Liquidated Damages, if
any, and Additional Interest, if any) thereon, up to but not including the Redemption
Date; provided that, in
accordance with Section 2.03(b), if the Redemption Date is after 5:00 p.m., New
York City time, on a Record Date and prior to 9:00 a.m., New York City time, on
the related Interest Payment Date, accrued but unpaid interest (including
Liquidated Damages, if any, and Additional Interest, if any) will be payable to
the holders in whose names the Notes are registered at 5:00 p.m., New York City
time, on the relevant Record Date.

(b)           Except
as set forth in Section 3.01(a), the Notes will not otherwise be redeemable at
the Company’s option prior to the Stated Maturity.

Section 3.02           Notice of Redemption.

(a)           In
case the Company shall desire to exercise the right to redeem all of the Notes
pursuant to Section 3.01, it shall fix the Redemption Date and it (or, at its
written request received by the Trustee not fewer than five Business Days prior
(or such shorter period of time as may be acceptable to the Trustee) to the
date the notice of redemption is to be mailed, the Trustee in the name of and
at the expense of the Company) shall mail or cause to be mailed a notice of
such redemption not fewer than 45 Scheduled Trading Days nor more than 60
Scheduled Trading Days prior to the Redemption Date to each 

 20
 

holder of Notes so to be redeemed in whole or in part at its
last address as the same appears on the Note Register; provided that if the Company makes such
request of the Trustee, it shall, together with such request, also given
written notice of the Redemption Date to the Trustee, provided
that the text of the notice shall be prepared by the Company.  Such mailing shall be by first class
mail.  The notice, if mailed in the
manner herein provided, shall be conclusively presumed to have been duly given,
whether or not the holder receives such notice. 
In any case, failure to give such notice by mail or any defect in the
notice to the holder of any Note shall not affect the validity of the
proceedings for the redemption of any other Note.  Concurrently with the mailing of any such
notice of redemption, the Company shall issue a press release announcing such
redemption, the form and content of which press release shall be determined by
the Company in its sole discretion, and publish such notice of redemption on
its web site.  The failure to issue any
such press release or any defect therein shall not affect the validity of the
redemption notice or any of the proceedings for the redemption of any Note
called for redemption.

(b)           Such
notice of redemption shall specify:  (i)
that all of the Notes are being redeemed and the aggregate principal amount
thereof, (ii) the CUSIP number or numbers of the Notes, (iii) the Redemption
Date (which shall be a Business Day), (iv) the redemption price at which Notes
are to be redeemed, (v) the place or places of payment and that payment will be
made upon presentation and surrender of such Notes, (iv) that interest accrued
and unpaid (including Liquidated Damages, if any, and Additional Interest, if
any) up to but not including the Redemption Date will be paid as specified in
said notice, and that on and after the Redemption Date interest (including
Liquidated Damages, if any, and Additional Interest, if any) will cease to
accrue, (vii) that the holder has a right to convert the Notes called for
redemption, (viii) the Conversion Rate on the date of such notice and (ix) the
time and date on which the right to convert such Notes pursuant to this
Indenture will expire.

(c)           Prior
to 11:00 a.m., New York City time, on the Redemption Date, the Company shall
deposit with the Paying Agent (or if the Company or a Subsidiary thereof or an
Affiliate of either of them is the Paying Agent, shall segregate and hold in
trust as provided in Section 4.05), an amount of money (in immediately
available funds if deposited on such Business Day) sufficient to pay the
aggregate Redemption Price, together with accrued but unpaid interest
(including Liquidated Damages, if any, and Additional Interest, if any) thereon
, to but not including the Redemption Date, of all Notes (other than Notes called
for redemption that on or prior thereto have been delivered by the Company to
the Trustee for cancellation or have been converted pursuant to Article
XI).  The Paying Agent shall as promptly
as practicable return to the Company any money not required for making payments
on the Redemption Date because of the conversion of Notes pursuant to Article
XI.  If such money is then held by the
Company in trust and is not required for making payments on the Redemption Date,
it shall be discharged from such trust.

Section 3.03           Payment of Notes Called for
Redemption by the Company.

If notice of redemption has been given as
provided in Section 3.02, the Notes shall, unless converted pursuant to the
terms hereof, become due and payable on the Redemption Date and at the place or
places stated in such notice at the Redemption Price, together with accrued but
unpaid interest (including Liquidated Damages, if any, and Additional Interest,
if any) up to but not including the Redemption Date.  On presentation and surrender of the Notes at
a place of payment in said notice specified, the Notes shall be paid and
redeemed by the Company at the Redemption Price, together with accrued but
unpaid interest (including Liquidated Damages, if any, and Additional Interest,
if any) up to but not including the Redemption Date; provided that if the Redemption Date is after 5:00 p.m., New
York City time, on a Record Date and prior to 9:00 a.m., New York City time, on
the related Interest Payment Date, accrued and unpaid interest (including
Liquidated Damages, if any, and Additional Interest, if any) will be payable to
the holders in whose names the Notes are registered at 5:00 p.m., New 

 21
 

York City time, on the
relevant Record Date instead of the holders surrendering such Notes for redemption
on the Redemption Date.

Notwithstanding the foregoing, the Trustee
shall not redeem any Notes or mail any notice of redemption during the
continuance of a default in payment of interest (including Liquidated Damages,
if any, and Additional Interest, if any) on the Notes. If any Note called for
redemption shall not be so paid upon surrender thereof for redemption on the
Redemption Date, as provided in this Section 3.03, the principal shall, until
paid or duly provided for, bear interest from and including the Redemption Date
at a rate equal to the rate borne by the Notes and such Note shall remain
convertible pursuant to this Indenture until the Redemption Price and interest
(including Liquidated Damages, if any, and Additional Interest, if any) shall have
been paid or duly provided for.

Notes that are to be redeemed pursuant to
this Article III shall be convertible by the holder thereof until 5:00 p.m.,
New York City time, on the Business Day immediately preceding the Redemption
Date, as provided in Section 11.01(a)(iii).

Section 3.04           Sinking Fund.

There shall be no sinking fund provided for
the Notes.

Section 3.05           Repurchase of Notes at Option of
the Holder Upon a Fundamental Change.

(a)           If
a Fundamental Change occurs, each holder shall have the right, at such holder’s
option, to require the Company to repurchase all or a portion of the Notes held
by such holder at a price in cash (the “Fundamental
Change Repurchase Price”) equal to 100% of the aggregate principal
amount of such Notes, together with accrued but unpaid interest (including
Liquidated Damages, if any, and Additional Interest, if any) thereon, up to but
not including the date (the “Fundamental
Change Repurchase Date”) specified by the Company that is not more
than 30 days after the date the Fundamental Change Repurchase Notice (as
defined below) is given; provided that if such 30th day is not a
Business Day, the Fundamental Change Repurchase Date shall be the next
succeeding Business Day; provided,
further that, in accordance with
Section 2.03(b), if the Fundamental Change Repurchase Date is after 5:00 p.m.,
New York City time, on a Record Date and prior to 9:00 a.m., New York City
time, on the related Interest Payment Date, accrued but unpaid interest
(including Liquidated Damages, if any, and Additional Interest, if any) will be
payable to the holders in whose names the Notes are registered at 5:00 p.m.,
New York City time, on the relevant Record Date instead of the holders
surrendering Notes for repurchase on the Fundamental Change Repurchase Date.

(b)           Within
30 days after the occurrence of a Fundamental Change, the Company shall (x) (i)
mail a written notice of the Fundamental Change (the “Company Fundamental Change Repurchase Notice”)
to each holder at the address of such holder as it appears in the Note Register
and to beneficial owners (as required by applicable law) or (ii) cause DTC to
send the Company Fundamental Change Repurchase Notice to its participants that
own Notes and (y) issue a press release containing such notice and publish such
Company Fundamental Change Repurchase Notice on its web site.  The Company shall also deliver a copy of the
Company Fundamental Change Repurchase Notice to the Trustee and the Paying
Agent at such time as it is mailed to holders. 
The Company Fundamental Change Repurchase Notice shall include the form
of a Fundamental Change Repurchase Notice (as defined in Section 3.05(c) below)
to be completed by the holder and shall state:

(i)    the event(s) causing such Fundamental
Change;

(ii)   the date of such Fundamental Change;

 22
 

(iii)  the time and date by which the Fundamental
Change Repurchase Notice pursuant to this Section 3.05 must be given;

(iv)  the Fundamental Change Repurchase Price;

(v)   the Fundamental Change Repurchase Date;

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

(vii) the Conversion Rate and any adjustments
thereto;

(viii)        that Notes as to which a Fundamental
Change Repurchase Notice has been given may be converted into Common Stock
pursuant to this Indenture only to the extent that the Fundamental Change
Repurchase Notice has been withdrawn in accordance with the terms of this
Indenture;

(ix)   the procedures that the holder of Notes must
follow to exercise rights under this Section 3.05; and

(x)    the procedures for withdrawing a Fundamental
Change Repurchase Notice, including a form of notice of withdrawal (as
specified in Section 3.06).

At the Company’s request, which shall be made
at least three Business Days prior to the date by which the Company Fundamental
Change Repurchase Notice is to be given to the holders in accordance with this
Section 3.05, and at the Company’s expense, the Trustee shall give the Company
Fundamental Change Repurchase Notice in the Company’s name; provided that, in all cases, the text of the Company Fundamental
Change Repurchase Notice shall be prepared by the Company.

If any of the Notes is in the form of a
Global Note, then the Company shall modify such notice to the extent necessary
to accord with the applicable procedures of the Depositary that apply to the
repurchase of Global Notes.

(c)           For
a Note to be so repurchased at the option of the holder upon a Fundamental
Change, the holder must deliver to the Paying Agent prior to 5:00 p.m., New
York City time, on the Business Day immediately preceding the Fundamental
Change Repurchase Date, (i) a written notice of repurchase (the “Fundamental Change Repurchase Notice”) in
the form set forth on the reverse of the Note duly completed (if the Note is
certificated) or stating the following: (A) if certificated, the certificate
number of the Note which the holder will deliver to be repurchased or, if such
Note is a Global Note, such information as may be required under applicable
Depositary procedures, (B) the portion of the principal amount of the Note
which the holder will deliver to be repurchased, which portion must be in
principal amounts of $1,000 or an integral multiple of $1,000 and (C) that such
Note shall be repurchased as of the Fundamental Change Repurchase Date pursuant
to the terms and conditions specified in the Note and in this Indenture; and
(ii) such Notes duly endorsed for transfer (if the Note if certificated) or
book-entry transfer of such Note (if such Note is represented by a Global
Note).  The delivery of such Note to the
Paying Agent with, or at any time after delivery of, the Fundamental Change
Repurchase Notice (together with all necessary endorsements) at the office of
the Paying Agent shall be a condition to the receipt by the holder of the
Fundamental Change Repurchase Price therefore; provided,
however, that such Fundamental
Change Repurchase Price shall be so paid pursuant to this Section 3.05 only if
the Notes so delivered to the Paying Agent shall conform in all respects to the
description thereof in the Fundamental Change Repurchase Notice.  All questions as to the validity, eligibility
(including time of receipt) and 

 23
 

acceptance of any Note for repurchase shall be determined by
the Company, whose determination shall be final and binding absent manifest
error.

The Company shall repurchase from the holder
thereof, pursuant to this Section 3.05, a portion of a Note, if the principal
amount of such portion is $1,000 or an integral multiple of $1,000.  Provisions of this Indenture that apply to the
repurchase of all of a Note also apply to the repurchase of a portion of a
Note.

Any repurchase by the Company contemplated
pursuant to the provisions of this Section 3.05 shall be consummated by the
delivery by the Company to the Paying Agent of the Fundamental Change
Repurchase Price, together with accrued but unpaid interest (including
Liquidated Damages, if any, and Additional Interest, if any) thereon, up to but
not including the Fundamental Change Repurchase Date, to be received by the
holder promptly following the later of the Fundamental Change Repurchase Date
and the time of delivery or book-entry transfer of the Note to the Paying Agent
in accordance with this Section 3.05.

Notwithstanding anything herein to the
contrary, any holder delivering to the Paying Agent the Fundamental Change
Repurchase Notice contemplated by this Section 3.05(c) shall have the right to
withdraw such Fundamental Change Repurchase Notice at any time prior to 5:00
p.m., New York City time, on the Business Day immediately preceding the
Fundamental Change Repurchase Date by delivery of a written notice of
withdrawal to the Paying Agent at the principal office of the Paying Agent in
accordance with Section 3.06(b).

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

(d)           If
a holder has delivered a Fundamental Change Repurchase Notice with respect to
any of such holder’s Notes, such holder may convert its Notes with respect to
which the Fundamental Change Repurchase Notice was delivered only if such
holder withdraws, in accordance with Section 3.06(b), its Fundamental Change
Repurchase Notice with respect to the Notes such holder wishes to convert and
converts such Notes before 5:00 p.m., New York City time, on the Business Day
immediately preceding the Fundamental Change Repurchase Date.

Section 3.06           Effect of Fundamental Change
Repurchase Notice; Withdrawal.

(a)           Upon
receipt by the Paying Agent of a Fundamental Change Repurchase Notice, the
holder of the Note in respect of which such Fundamental Change Repurchase
Notice was given shall (unless such Fundamental Change Repurchase Notice is
withdrawn as specified in Section 3.06(b)) thereafter be entitled to receive
solely the Fundamental Change Repurchase Price, together with accrued but
unpaid interest (including Liquidated Damages, if any, and Additional Interest,
if any) thereon, to but not including the Fundamental Change Repurchase Date
with respect to such Note.  Such
Fundamental Change Repurchase Price, together with accrued but unpaid interest
(including Liquidated Damages, if any, and Additional Interest, if any)
thereon, to but not including the Fundamental Change Repurchase Date, shall be
paid to such holder, subject to receipt of funds by the Paying Agent, promptly following
the later of (x) the Fundamental Change Repurchase Date with respect to such
Note (provided that the
conditions in Section 3.05 have been satisfied) and (y) the time of delivery or
book-entry transfer of such Note to the Paying Agent by the holder thereof in
the manner required by Section 3.05. 
Notes in respect of which a Fundamental Change Repurchase Notice has
been given by the holder thereof may not be converted pursuant to Article XI on
or after the date of the delivery of such Fundamental Change Repurchase Notice,
unless such Fundamental Change Repurchase Notice has first been validly
withdrawn as specified in Section 3.06(b).

 24

 

(b)           A
Fundamental Change Repurchase Notice may be withdrawn by means of a written
notice of withdrawal delivered to the office of the Paying Agent in accordance
with the Fundamental Change Repurchase Notice at any time prior to 5:00 p.m.,
New York City time, on the Business Day immediately preceding the Fundamental
Change Repurchase Date specifying:

(i)    if the Note with respect to which such
notice of withdrawal is being submitted is a Note in definitive form, the
certificate number of such Note, or if such Note is a Global Note, such
information as may be required under applicable Depositary procedures;

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

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

The Paying Agent will promptly return to the
respective holders thereof any Notes with respect to which a Fundamental Change
Repurchase Notice has been withdrawn in compliance with this Indenture.

Section 3.07                   Deposit of Fundamental
Change Repurchase Price.

Prior to 11:00 a.m., New York City time, on
the Fundamental Change Repurchase Date the Company shall deposit with the
Trustee or with the Paying Agent (or, if the Company or a Subsidiary thereof or
an Affiliate of either of them is acting as the Paying Agent, shall segregate
and hold in trust as provided in Section 4.05) an amount of money (in
immediately available funds if deposited on such Business Day) sufficient to
pay the aggregate Fundamental Change Repurchase Price, together with accrued
but unpaid interest (including Liquidated Damages, if any, and Additional
Interest, if any) thereon, to but not including the Fundamental Change
Repurchase Date of all the Notes or portions thereof which are to be
repurchased as of the Fundamental Change Repurchase Date.

Section 3.08                   Notes Repurchased in Part.

Any Note in definitive form that is to be
repurchased only in part shall be surrendered at the office of the Paying Agent
and the Company shall execute and the Trustee shall authenticate and deliver to
the holder of such Note, without service charge, one or more new Notes in
definitive form, of any authorized denomination as requested by such holder in
aggregate principal amount equal to, and in exchange for, the portion of the
principal amount of the Note in definitive form so surrendered which is not
repurchased.

Section 3.09                   Covenant to Comply With
Securities Laws Upon Repurchase of Notes.

When complying with the provisions of Section
3.05 (so long as such offer or repurchase 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
repurchase), the Company shall (i) comply in all material respects 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 in all material respects with all federal and state securities
laws so as to permit the rights and obligations under Section 3.05 to be
exercised in the time and in the manner specified in Section 3.05.

 25
 

 

Section 3.10                   Repayment to the Company.

To the extent that the aggregate amount of
cash deposited by the Company pursuant to Section 3.07 exceeds the aggregate
Fundamental Change Repurchase Price of the Notes or portions thereof which the
Company is obligated to repurchase as of the Fundamental Change Repurchase
Date, together with accrued but unpaid interest (including Liquidated Damages,
if any, and Additional Interest, if any) thereon, then, unless otherwise agreed
in writing with the Company, promptly after the Business Day immediately after
the Fundamental Change Repurchase Date the Trustee shall return any such excess
to the Company together with interest, if any, thereon.

ARTICLE IV

COVENANTS

Section 4.01                   Payment of Notes.

The Company shall promptly make all payments
and deliveries in respect of the Notes on the dates and in the manner provided
in the Notes or pursuant to this Indenture. 
Any amounts to be given to the Trustee or Paying Agent, as the case may
be, shall be deposited with the Trustee or Paying Agent, as the case may be, by
11:00 a.m., New York City time, on the dates required pursuant to the
Notes.  Interest installments (including
Liquidated Damages, if any, and Additional Interest, if any), principal amount,
Redemption Price, Fundamental Change Repurchase Price and interest, if any, due
on overdue amounts shall be considered paid on the applicable date due if at
11:00 a.m., New York City time, on such date, the Trustee or the Paying Agent,
as the case may be, holds, in accordance with this Indenture, money 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 Notes, 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.  The accrual of such interest
on overdue amounts shall be in addition to the continued accrual of interest on
the Notes.

Section 4.02                   SEC and Other Reports.

The Company shall file with the Trustee,
within 15 days after it files such annual and quarterly reports, information,
documents and other reports with the SEC, copies of its annual report and 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, provided that such information
shall be deemed to be filed with the Trustee to the extent it has been filed on
the SEC’s EDGAR System and such information is publicly available.  In the event the Company is at any time no
longer subject to the reporting requirements of Section 13 or 15(d) of the
Exchange Act, it shall continue to provide the Trustee with reports containing
substantially the same information as would have been required to be filed with
the SEC had the Company continued to have been subject to such reporting
requirements.  In such event, such
reports shall be provided to the Trustee at the times the Company would have
been required to provide reports had it continued to have been subject to such
reporting requirements.  In addition, the
Company shall comply with the other provisions of TIA Section 314(a).

 26
 

 

Section 4.03                   Compliance Certificate;
Notice of Default.

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

(b)           The
Company shall, so long as any of the Notes are outstanding, deliver to the
Trustee promptly, and in any event within 15 days, after becoming aware of any
Default or Event of Default under this Indenture, an Officers’ Certificate
specifying such Default or Event of Default and what action the Company is
taking or proposes to take with respect thereto.  The Trustee shall not be deemed to have
knowledge of a Default or Event of Default unless one of its Responsible
Officers receives written notice of the Default or Event of Default from the
Company or any of the holders.

Section 4.04                   Further Instruments and
Acts.

Upon request of the Trustee, the Company and
the Guarantor 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, City of New York, an office or agency of the Trustee, Note
Registrar, Paying Agent and Conversion Agent where Notes may be presented or
surrendered for payment, where Notes may be surrendered for registration of
transfer, exchange, repurchase, redemption or conversion and where notices and
demands to or upon the Company in respect of the Notes and this Indenture may
be served.  The Trustee’s Corporate Trust
Office shall initially be such office or agency where Notes may be surrendered
for payment, and shall initially be such office or agency for all of the other
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 or agency 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 13.02.  The Company may also from time to time designate
co-registrars and one or more other offices or agencies where the Notes may be
presented or surrendered for any or all such purposes, and may from time to
time rescind such designations; provided
that no such designation or rescission shall in any manner relieve the Company
of its obligation to maintain at least one Paying Agent having an office or
agency in the Borough of Manhattan, City of New York.

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

Section 4.06                   Provisions as to Paying
Agent.

(a)           If
the Company shall appoint a Paying Agent other than the Trustee, or if the
Trustee shall appoint such a Paying Agent, the Company will cause such Paying
Agent to execute and deliver to the Trustee an instrument in which such agent
shall agree with the Trustee, subject to the provisions of this Section 4.06:

 27
 

 

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

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

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

The Company shall, on or before each due date
of the principal of, premium, if any, or interest (including Liquidated
Damages, if any, and Additional Interest, if any) on the Notes, deposit with
the Paying Agent a sum (in funds which are immediately available on the due
date for such payment) sufficient to pay such principal, premium, if any, or
interest (including Liquidated Damages, if any, and Additional Interest, if
any) and (unless such Paying Agent is the Trustee) the Company will promptly
notify the Trustee of any failure to take such action; provided
that if such deposit is made on the due date, such deposit shall be received by
the Paying Agent by 11:00 a.m. New York City time, on such date.

(b)           If
the Company shall act as its own Paying Agent, it will, on or before each due
date of the principal of, premium, if any, or interest (including Liquidated
Damages, if any, and Additional Interest, if any) on the Notes, set aside,
segregate and hold in trust for the benefit of the holders of the Notes a sum
sufficient to pay such principal, premium, if any, and interest (including
Liquidated Damages, if any, and Additional Interest, if any) so becoming due
and will promptly notify the Trustee of any failure to take such action and of
any failure by the Company (or any other obligor under the Notes) to make any
payment of the principal of, premium, if any, or interest (including Liquidated
Damages, if any, and Additional Interest, if any) on the Notes when the same
shall become due and payable.

(c)           Anything
in this Section 4.06 to the contrary notwithstanding, the Company may, at any
time, for the purpose of obtaining a satisfaction and discharge of this
Indenture, or for any other reason, pay or cause to be paid to the Trustee all
sums held in trust by the Company or any Paying Agent hereunder as required by
this Section 4.06, such sums to be held by the Trustee upon the trusts herein
contained and upon such payment by the Company or any Paying Agent to the
Trustee, the Company or such Paying Agent shall be released from all further
liability with respect to such sums.

(d)           Anything
in this Section 4.06 to the contrary notwithstanding, the agreement to hold
sums in trust as provided in this Section 4.06 is subject to Sections 9.02 and
9.03.

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

Section 4.07                   Appointments to Fill
Vacancies in Trustee’s Office.

The Company, whenever necessary to avoid or
fill a vacancy in the office of Trustee, will appoint, upon the terms and
conditions and otherwise as provided in Section 7.10, a Trustee, so that there
shall at all times be a Trustee hereunder.

 28
 

 

Section 4.08                   Existence.

Subject to Article V and Section 12.03,
respectively, each of the Company and the Guarantor shall do or cause to be
done all things necessary to preserve and keep in full force and effect its
existence and rights (charter and statutory); provided
that the Company and the Guarantor shall not be required to preserve any such
right if the Company or the Guarantor, as the case may be, shall determine that
the preservation thereof is no longer desirable in the conduct of the business
of the Company or the Guarantor, as the case may be, and that the loss thereof
is not disadvantageous in any material respect to the holders.

Section 4.09                   Taxes on Notes.

Subject to Sections 2.05(a) and 11.10, the
Company will pay or discharge, or cause to be paid or discharged, before the
same may become delinquent, all stamp taxes and other duties, if any, which may
be imposed by the United States or any political subdivision thereof or therein
in connection with the issuance, transfer, exchange, conversion, redemption or
repurchase of any Notes or with respect to this Indenture.

Section 4.10                   Rule 144A Information
Requirement.

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 owner of Notes or holder or beneficial owner of Common Stock
delivered upon conversion thereof, the Company will promptly furnish or cause
to be furnished Rule 144A Information (as defined below) to such holder or any
beneficial owner of Notes or holder or beneficial owner of Common Stock
delivered upon conversion thereof 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 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 or any successor provisions.  Whether a Person is a beneficial owner shall
be determined by the Company to the Company’s reasonable satisfaction.

Section 4.11                   Stay, Extension and Usury
Laws.

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

Section 4.12                   Liquidated Damages.

If at any time Liquidated Damages become
payable by the Company pursuant to the Registration Rights Agreement, the
Company shall promptly deliver to the Trustee a certificate to that effect and
stating (i) the amount of such Liquidated Damages that are payable and (ii) the
date on which such Liquidated Damages are payable pursuant to the terms of the
Registration Rights Agreement.  Unless
and 

 29
 

until a Responsible Officer
of the Trustee receives such a certificate, the Trustee may assume without
inquiry that no Liquidated Damages are payable.

ARTICLE V

SUCCESSOR CORPORATION

Section 5.01                   When the Company May
Consolidate, Merge or Transfer Assets.

The Company shall not consolidate with or
merge with or into any other Person or sell, lease exchange or otherwise
transfer (in one transaction or a series of related transactions) all or
substantially all of its properties and assets to any other Person, unless:

(a)           (i)
the Company shall be the resulting or surviving corporation or (ii) the Person
(if other than the Company) formed by such consolidation or with or into which
the Company is merged or the Person which acquires by sale, lease, exchange or
other transfer all or substantially all of the properties and assets of the
Company (A) shall be a corporation organized and validly existing under the
laws of the United States or any State thereof or the District of Columbia, and
(B) shall expressly assume, by means of a supplemental indenture, executed and
delivered to the Trustee, in form satisfactory to the Trustee, all of the
obligations of the Company under the Notes, this Indenture and the Registration
Rights Agreement;

(b)           immediately
after giving effect to such transaction, no Default or Event of Default shall
have occurred and be continuing; and

(c)           the
Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that such consolidation, merger, sale, lease,
exchange or other transfer and, if a supplemental indenture is required in
connection with such transaction, such supplemental indenture, comply with this
Article V and that all conditions precedent herein provided for relating to
such transaction have been satisfied.

For purposes of the foregoing, the transfer
(by sale, lease, assignment, exchange or otherwise) of the properties and
assets of one or more Subsidiaries (other than to the Company or another
Subsidiary of the Company), which, if such assets were owned by the Company
would constitute all or substantially all of the properties and assets of the
Company, shall be deemed to be the transfer of all or substantially all of the
properties and assets of the Company. 
The successor Person formed by such consolidation or with or into which
the Company is merged or the successor Person to which such sale, lease,
exchange or other transfer is made shall succeed to, and (except in the case of
a lease) be substituted for, and may exercise every right and power of, the
Company under this Indenture with the same effect as if such successor had been
named as the Company herein; and thereafter, except in the case of a lease of all
or substantially all of the Company’s properties and assets and except for
obligations the Company may have under a supplemental indenture pursuant to
Section 10.06, the Company shall be discharged from all obligations and
covenants under this Indenture and the Notes. 
Subject to Section 10.06, the Company, the Trustee and the successor
Person shall enter into a supplemental indenture to evidence the succession and
substitution of such successor Person and such discharge and release of the
Company, as applicable.

ARTICLE VI

DEFAULTS AND REMEDIES

Section 6.01                   Events Of Default.

An “Event
of Default,” wherever used herein, means any one of the following
events (whatever the reason for such Event of Default and whether or not it
shall be caused voluntarily or involuntarily or

 30
 

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):

(a)           the
failure to pay interest (including Liquidated Damages, if any, and Additional
Interest, if any) on any Notes when the same becomes due and payable and the
continuation of such default for a period of 30 days;

(b)           the
failure to pay the principal of any Note, when such principal becomes due and
payable, at Stated Maturity, upon acceleration, upon redemption or otherwise
(including the failure to pay the Settlement Amount upon conversion or make a
payment to repurchase Notes tendered pursuant to a Fundamental Change
Repurchase Notice);

(c)           the
failure to provide a Company Fundamental Change Repurchase Notice in accordance
with the terms of Section 3.05(b), and such failure continues for a period of
two days;

(d)           a
default in the observance or performance of any other covenant or agreement
contained in this Indenture which default continues for a period of 90 days
after the Company receives written notice specifying the default (and demanding
that such default be remedied) from the Trustee or the beneficial holders of at
least 25% of the outstanding principal amount of the Notes (except in the case
of a default with respect to Section 5.01, which will constitute an Event of
Default with such notice requirement but without such passage of time
requirement);

(e)           a
default under any mortgage, indenture or instrument under which there may be
issued or by which there may be secured or evidenced any Indebtedness of the
Company or any of its Subsidiaries, whether such Indebtedness now exists or is
created after the issuance of the Notes, which default (i) is caused by a
failure to pay principal of or premium, if any, or interest on such
Indebtedness after any applicable grace periods provided in such Indebtedness
on the date of such default (unless, prior to our receipt of an Acceleration
Notice (as defined below) with respect to the Notes, such principal, premium,
if any, or interest on such Indebtedness is paid or payment thereof is waived
or cured) (a “Payment Default”) or
(ii) results in the acceleration of such Indebtedness prior to its express
maturity (unless, prior to our receipt of an Acceleration Notice with respect
to the Notes, the acceleration of such Indebtedness is waived, cured, rescinded
or annulled) and, in either such case, the principal amount of such
Indebtedness, together with the principal amount of any other such Indebtedness
under which there has been a Payment Default or the maturity of which has been
so accelerated, aggregates at least the applicable Credit Agreement Dollar
Threshold; provided that at such
time, if any, as the Credit Agreement Cross-Default Provisions are no longer in
effect, then this clause (e) shall cease to be of further force and effect
until such time as such Credit Agreement Cross-Default Provisions or any
similar provisions in any Credit Agreement are in effect, in which case this
clause (e) shall be reinstated;

(f)            one
or more judgments in an uninsured aggregate amount in excess of $10,000,000
shall have been rendered against the Company or any of its Subsidiaries and
remain undischarged, unpaid or unstayed for a period of 60 days after such
judgment or judgments become final and nonappealable;

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

(i)    commences a voluntary case or proceeding
seeking liquidation, reorganization or other relief with respect to the Company
or a Significant Subsidiary of the Company or its debts or seeking the
appointment of a trustee, receiver, liquidator, custodian or other similar
official of the Company or a Significant Subsidiary of the Company or any
substantial part of the property of the Company or a Significant Subsidiary of
the Company;

 31
 

 

(ii)   consents to any such relief or to the
appointment of or taking possession by any such official in an involuntary case
or other proceeding commenced against the Company or a Significant Subsidiary
of the Company;

(iii)  consents to the appointment of a custodian of
it or for all or substantially all of its property;

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

(v)   shall generally not pay its debts when such
debts become due or shall admit in writing its inability to pay its debts
generally;

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

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

(I)            is for relief against the Company or
any Significant Subsidiary of the Company in an involuntary case or proceeding;

(II)           appoints a trustee, receiver,
liquidator, custodian or other similar official of the Company or any
Significant Subsidiary of the Company or any substantial part of its
properties; or

(III)         orders the liquidation of the Company
or any Significant Subsidiary of Company;

and, in
each case in this clause (i), the order or decree remains unstayed and in
effect for 60 consecutive days; or

(j)            except
as permitted by this Indenture, the Guarantee shall be held in any judicial
proceeding to be unenforceable or invalid or shall cease for any reason to be
in full force and effect, or the Guarantor, or any Person acting on its behalf,
shall deny or disaffirm the Guarantor’s obligation under the Guarantee.

Section 6.02                   Acceleration.

(a)           Subject
to Section 6.02(c), if an Event of Default (other than an Event of Default
specified in clause (g), (h) or (i) of Section 6.01) shall occur and be
continuing, the Trustee may, and at the written request of the holders of at
least 25% in aggregate principal amount of outstanding Notes shall, by notice
in writing to the Company (the “Acceleration
Notice”), declare the principal of and accrued but unpaid interest
(including Liquidated Damages, if any, and Additional Interest, if any) on all
the Notes to be immediately due and payable. 
Such notice shall specify the respective Event of Default and that it is
an “Acceleration Notice.”  Upon the
giving of an Acceleration Notice, all Obligations on all the Notes shall become
immediately due and payable.

 32
 

 

If an Event of Default specified in clause
(g), (h) or (i) of Section 6.01 occurs and is continuing, then all unpaid
Obligations on all of the outstanding Notes shall become and be immediately due
and payable without any declaration or other act on the part of the Trustee or
any holder.

(b)           At
any time after a declaration of acceleration with respect to the Notes as
described in Section 6.02(a), the holders of a majority in aggregate principal
amount of the outstanding Notes may rescind and cancel such declaration and its
consequences (i) if the rescission would not conflict with any judgment or
decree, (ii) if all existing Events of Default have been cured or waived except
nonpayment of principal or interest (including Liquidated Damages, if any, and
Additional Interest, if any) that has become due solely because of such
acceleration, (iii) if interest on overdue installments of interest (to the
extent the payment of such interest is lawful) and on overdue principal, which
has become due otherwise than by such declaration of acceleration, has been
paid and (iv) if the Company has paid the Trustee its reasonable compensation
and reimbursed the Trustee for its expenses, disbursements and advances.  No such rescission shall affect any
subsequent Default or Event of Default or impair any rights arising therefrom.

(c)           Notwithstanding
the foregoing, the sole remedy for an Event of Default relating to the failure
to comply with Section 4.02 or the requirements of Section 314(a)(1) of the
TIA, will, for the 365 days after the occurrence of such an Event of Default,
consist exclusively of the right to receive additional interest (“Additional Interest”) on the Notes at an annual rate equal
to 0.25% of the principal amount of the Notes to, and including, the 90th day
following the occurrence of such Event of Default and at an annual rate equal
to 0.50% of the aggregate principal amount of the Notes from and after the 91st
day  following the occurrence of such
Event of Default.  In no event will
Additional Interest accrue at a rate exceeding 0.50% per annum.  Any such Additional Interest will be payable
in the same manner and on the same dates as the stated interest payable on the
Notes.  Additional Interest will accrue
on all outstanding Notes from and including the date on which an Event of
Default relating to a failure to comply with Section 4.02 or Section 314(a)(1)
of the TIA first occurs to, but not including, the 365th day thereafter (or
such earlier date on which such Event of Default shall have been cured or
waived).  On such 365th day (or earlier,
if such Event of Default is cured or waived prior to such 365th day), such
Additional Interest will cease to accrue and the Notes will be subject to
acceleration as provided above if the Event of Default is continuing.  The provisions of this Section 6.02(c) shall
not affect the rights of holders of Notes in the event of the occurrence of any
other Event of Default.

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

Section 6.03                   Payments of Notes on Default;
Suit Therefor.

The Company covenants that in the case of an
Event of Default pursuant to Section 6.01(a) or 6.01(b), upon demand of the
Trustee, the Company will pay to the Trustee, for the benefit of the holders of
the Notes, (i) the whole amount that then shall be due and payable on all such
Notes for principal and premium, if any, or interest (including Liquidated
Damages, if any, and Additional Interest, if any), as the case may be, with
interest upon the overdue principal and premium, if any, and (to the extent
that payment of such interest is enforceable under applicable law) upon the
overdue installments of accrued and unpaid interest (including Liquidated
Damages, if any, and Additional Interest, if any) at the rate borne by the
Notes, from the required payment date and, (ii) in addition thereto, any
amounts due the Trustee under Section 7.06. 
Until such demand by the Trustee, the Company may pay the principal of

 33
 

and premium, if any, and
interest (including Liquidated Damages, if any, and Additional Interest, if
any) on the Notes to the registered holders, whether or not the Notes are
overdue.

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

In case there shall be pending proceedings
for the bankruptcy or for the reorganization of the Company or any other
obligor on the Notes under any Bankruptcy Law, or any other applicable law, or
in case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or
taken possession of the Company or such other obligor, the property of the
Company or such other obligor, or in the case of any other judicial proceedings
relative to the Company or such other obligor upon the Notes, or to the
creditors or property of the Company or such other obligor, the Trustee,
irrespective of whether the principal of the Notes shall then be due and
payable as therein expressed or by declaration or otherwise and irrespective of
whether the Trustee shall have made any demand pursuant to the provisions of
this Section 6.03, shall be entitled and empowered, by intervention in such
proceedings or otherwise, to file and prove a claim or claims for the whole
amount of principal, premium, if any, accrued and unpaid interest (including
Liquidated Damages, if any, and Additional Interest, if any) in respect of the
Notes, and, in case of any judicial proceedings, to file such proofs of claim
and other papers or documents as may be necessary or advisable in order to have
the claims of the Trustee and of the holders allowed in such judicial
proceedings relative to the Company or any other obligor on the Notes, its or
their creditors, or its or their property, and to collect and receive any
monies or other property payable or deliverable on any such claims, and to
distribute the same after the deduction of any amounts due the Trustee under
Section 7.06, and to take any other action with respect to such claims,
including participating as a member of any official committee of creditors, as
it reasonably deems necessary or advisable, unless prohibited by law or
applicable regulations, and any receiver, assignee or trustee in bankruptcy or
reorganization, liquidator, custodian or similar official is hereby authorized
by each of the holders to make such payments to the Trustee, and, in the event
that the Trustee shall consent to the making of such payments directly to the
holders, to pay to the Trustee any amount due it for reasonable compensation,
expenses, advances and disbursements, including counsel fees and expenses
incurred by it up to the date of such distribution.  To the extent that such payment of reasonable
compensation, expenses, advances and disbursements out of the estate in any
such proceedings shall be denied for any reason, payment of the same shall be
secured by a lien on, and shall be paid out of, any and all distributions,
dividends, monies, securities and other property which the holders of the Notes
may be entitled to receive in such proceedings, whether in liquidation or under
any plan of reorganization or arrangement or otherwise.

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

In any proceedings brought by the Trustee
(and in any proceedings involving the interpretation of any provision of this
Indenture to which the Trustee shall be a party) the Trustee shall be held to
represent 

 34
 

all the holders of the
Notes, and it shall not be necessary to make any holders of the Notes parties
to any such proceedings.

Section 6.04                   Application of Monies
Collected by Trustee.

Any monies collected by the Trustee pursuant
to this Section 6.04, shall be applied in the following order, at the date or
dates fixed by the Trustee for the distribution of such monies, upon
presentation of the several Notes, and stamping thereon the payment, if only
partially paid, and upon surrender thereof, if fully paid:

FIRST: To the payment of all amounts due the
Trustee under Section 7.06;

SECOND: In case the principal of the
outstanding Notes shall not have become due and be unpaid, to the payment of
accrued and unpaid interest, if any (including Liquidated Damages, if any, and
Additional Interest, if any), on the Notes in default in the order of the
maturity of the installments of such interest (including Liquidated Damages, if
any, and Additional Interest, if any), with interest (to the extent that such
interest has been collected by the Trustee) as provided in Section 6.03 upon
the overdue installments of interest (including Liquidated Damages, if any, and
Additional Interest, if any) at the then applicable interest rate, such
payments to be made ratably to the Persons entitled thereto;

THIRD: In case the principal of the
outstanding Notes shall have become due, by declaration or otherwise, and be
unpaid, to the payment of the whole amount then owing and unpaid upon the Notes
for principal and premium, if any, and interest (including Liquidated Damages,
if any, and Additional Interest, if any), with interest on the overdue
principal and premium, if any, and (to the extent that such interest (including
Liquidated Damages, if any, and Additional Interest, if any) has been collected
by the Trustee) upon overdue installments of accrued and unpaid interest, as
provided in Section 6.03, and in case such monies shall be insufficient to pay
in full the whole amounts so due and unpaid upon the Notes, then to the payment
of such principal and premium, if any, and interest (including Liquidated
Damages, if any, and Additional Interest, if any) without preference or
priority of principal and premium, if any, over interest (including Liquidated
Damages, if any, and Additional Interest, if any), or of interest (including
Liquidated Damages, if any, and Additional Interest, if any) over principal and
premium, if any, or of any installment of interest (including Liquidated
Damages, if any, and Additional Interest, if any) over any other installment of
interest (including Liquidated Damages, if any, and Additional Interest, if
any), or of any Note over any other Note, ratably to the aggregate of such
principal and premium, if any, and accrued and unpaid interest (including
Liquidated Damages, if any, and Additional Interest, if any); and

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

Section 6.05                   Proceedings by Holder.

(a)           No
holder of any Note shall have any right by virtue of or by reference to any
provision of this Indenture to institute any suit, action or proceeding in
equity or at law upon or under or with respect to this Indenture, or for the
appointment of a receiver, trustee, liquidator, custodian or other similar
official, or for any other remedy hereunder, except in the case of a default in
the payment of principal, premium, if any, or interest (including Liquidated
Damages, if any, and Additional Interest, if any) on the Notes, unless (a) such
holder previously shall have given to the Trustee written notice of an Event of
Default and of the continuance thereof, as hereinbefore provided, (b) the
holders of at least 25% in aggregate principal amount of the Notes then
outstanding shall have made written request upon the Trustee to institute such
action, suit or proceeding in its own name as Trustee hereunder and shall have
offered to the Trustee such reasonable security or indemnity as it may require
against the costs, liabilities 

 35
 

or expenses to be incurred therein or thereby, (c) the
Trustee for 60 days after its receipt of such notice, request and offer of
indemnity, shall have neglected or refused to institute any such action, suit
or proceeding and (d) no direction inconsistent with such written request shall
have been given to the Trustee pursuant to Section 6.08; it being understood
and intended, and being expressly covenanted by the taker and holder of every
Note with every other taker and holder and the Trustee, that no one or more
holders of Notes shall have any right in any manner whatever by virtue of or by
reference to any provision of this Indenture to affect, disturb or prejudice
the rights of any other holder of Notes, or to obtain or seek to obtain
priority over or preference to any other such holder, or to enforce any right
under this Indenture, except in the manner herein provided and for the equal,
ratable and common benefit of all holders of Notes (except as otherwise
provided herein).  For the protection and
enforcement of this Section 6.05, each and every holder and the Trustee shall
be entitled to such relief as can be given either at law or in equity.

(b)           Notwithstanding
any other provision of this Indenture and any provision of any Note, the right
of any holder of any Note to receive payment of the principal of (including the
Redemption Price or Fundamental Change Repurchase Price upon redemption or repurchase
pursuant to Article III) and premium, if any, and accrued interest (including
Liquidated Damages, if any, and Additional Interest, if any) on such Note, on
or after the respective due dates expressed in such Note or in the event of
redemption or repurchase, or to convert the Notes in accordance with Article
XI, or to institute suit for the enforcement of any such payment on or after
such respective dates or the enforcement of the right to convert against the
Company shall not be impaired or affected without the consent of such holder.

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

Section 6.06                   Proceedings by Trustee.

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

Section 6.07                   Remedies Cumulative and
Continuing.

All powers and remedies given by this Article
VI to the Trustee or to the holders shall, to the extent permitted by law, be
deemed cumulative and not exclusive of any thereof or of any other powers and
remedies available to the Trustee or the holders of the Notes, by judicial
proceedings or otherwise, to enforce the performance or observance of the
covenants and agreements contained in this Indenture, and no delay or omission
of the Trustee or of any holder of any of the Notes to exercise any right or
power accruing upon any default or Event of Default occurring and continuing as
aforesaid shall impair any such right or power, or shall be construed to be a
waiver of any such default or any acquiescence therein, and, subject to the
provisions of Section 6.05, every power and remedy given by this Article VI or
by law to the Trustee or to the holders may be exercised from time to time, and
as often as shall be deemed expedient, by the Trustee or by the holders.

 36

 

Section 6.08                   Direction
of Proceedings and Waiver of Defaults by Majority of Holders.

 

The holders of a majority in aggregate
principal amount of the outstanding Notes shall have the right to direct the
time, method and place of conducting any proceeding for any remedy available to
the Trustee or exercising any trust or power conferred on the Trustee; provided that (a) such direction shall not be in conflict
with any rule of law or with this Indenture, (b) the Trustee may take any other
action which is not inconsistent with such direction, (c) the Trustee may
decline to take any action that would benefit some holders to the detriment of
other holders and (d) the Trustee may decline to take any action that would
involve the Trustee in personal liability.

The holders of a majority in aggregate
principal amount of the outstanding Notes may, on behalf of the holders of all
of the Notes, waive any past Default or Event of Default hereunder and its
consequences except (i) a default in the payment of the principal of,
premium, if any, or interest (including Liquidated Damages, if any, and
Additional Interest, if any) on the Notes, (ii) a failure by the Company to
convert any Notes as required by this Indenture, (iii) a default in the payment
of the Fundamental Change Repurchase Price on the Fundamental Change Repurchase
Date pursuant to Article III or (iv) a default in respect of a covenant or
provisions hereof which under Article X cannot be modified or amended without
the consent of the holders of all Notes then outstanding or each Note affected
thereby.  Upon any such waiver, the
Company, the Trustee and the holders of the Notes shall be restored to their
former positions and rights hereunder; but no such waiver shall extend to any
subsequent or other Default or Event of Default or impair any right consequent
thereon.  Whenever any Default or Event
of Default hereunder shall have been waived as permitted by this Section 6.08,
said Default or Event of Default shall for all purposes of the Notes and this
Indenture be deemed to have been cured and to be not continuing; but no such
waiver shall extend to any subsequent or other Default or Event of Default or
impair any rights arising therefrom.

Section 6.09                Notice
of Defaults.

 

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

Section 6.10                Undertaking to Pay Costs.

 

All parties to this Indenture agree, and each
holder of any Note by such holder’s acceptance thereof shall be deemed to have
agreed, that any court may, in its discretion, require, in any suit for the
enforcement of any right or remedy under this Indenture, or in any suit against
the Trustee for any action taken or omitted by it as Trustee, the filing by any
party litigant in such suit of an undertaking to pay the costs of such suit and
that such court may in its discretion assess reasonable costs, including
reasonable attorneys’ fees and expenses, against any party litigant in such
suit, having due regard to the merits and good faith of the claims or defenses
made by such party litigant; provided
that the provisions of this Section 6.10 (to the extent permitted by law) shall
not apply to any suit instituted by the Trustee, to any suit instituted by any
holder, or group of holders, holding in the aggregate more than ten percent in
principal amount of the outstanding Notes determined in accordance with Section
8.04, or to any suit instituted by any holder for the enforcement of the
payment of the principal of, or premium, if any, or interest (including
Liquidated Damages, if any, and Additional Interest, if any) on any Note on or
after the

 37
 

due date expressed in such
Note or to any suit for the enforcement of the right to convert any Note in
accordance with the provisions of Article XI.

ARTICLE VII

THE TRUSTEE

Section 7.01                Duties
and Responsibilities of Trustee.

 

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

No provision of this Indenture shall be
construed to relieve the Trustee from liability for its own grossly negligent
action, its own grossly negligent failure to act or its own willful misconduct,
except that:

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

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

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

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

(c)           the
Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the written direction of the
holders of not less than a majority in principal amount of the outstanding
Notes determined as provided in Section 8.04 relating to the time, method and
place of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred upon the Trustee, under this Indenture;

(d)           whether
or not therein provided, every provision of this Indenture relating to the
conduct or affecting the liability of, or affording protection to, the Trustee
shall be subject to the provisions of this Section;

 38
 

 

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

(f)            if
any party fails to deliver a notice relating to an event the fact of which,
pursuant to this Indenture, requires notice to be sent to the Trustee, the
Trustee may conclusively rely on its failure to receive such notice as reason
to act as if no such event occurred unless a Responsible Officer of the Trustee
has actual knowledge thereof or unless the Trustee has otherwise received
written notice thereof; and

(g)           the
Trustee shall not be deemed to have knowledge of any Event of Default hereunder
unless a Responsible Officer of the Trustee has actual knowledge thereof or
unless the Trustee shall have been notified in writing of such Event of Default
by the Company or a holder of Notes.

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

Section
7.02                Reliance on
Documents, Opinions, etc.

Except as otherwise provided in Section 7.01:

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

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

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

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

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

 39
 

 

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

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

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

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

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

Section
7.03                No Responsibility
for Recitals, etc.

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

Section
7.04                Trustee, Paying
Agents, Conversion Agents or Note Registrar May Own Notes.

The Trustee, any Paying Agent, any Conversion
Agent or Note Registrar, in its individual or any other capacity, may become
the owner or pledgee of Notes with the same rights it would have if it were not
Trustee, Paying Agent, Conversion Agent or Note Registrar.

Section
7.05                Monies to be Held
in Trust.

Subject to the provisions of Section 9.02,
all monies received by the Trustee shall, until used or applied as herein
provided, be held in trust for the purposes for which they were received.  Money held by the Trustee in trust hereunder
need not be segregated from other funds except to the extent required by
law.  Except as otherwise provided herein,
the Trustee shall be under no liability for interest on any money received by
it hereunder except as may be agreed in writing from time to time by the
Company and the Trustee.

Section
7.06                Compensation and
Expenses of Trustee.

The Company covenants and agrees to pay to
the Trustee from time to time, and the Trustee shall be entitled to, such
compensation for all services rendered by it hereunder in any capacity (which
shall not be limited by any provision of law in regard to the compensation of a
trustee of an express trust) as

 40
 

mutually agreed to from time
to time in writing between the Company and the Trustee, and the Company will
pay or reimburse the Trustee upon its request for all reasonable expenses,
disbursements and advances reasonably incurred or made by the Trustee in
accordance with any of the provisions of this Indenture (including the
reasonable compensation and the reasonable expenses and disbursements of its
counsel and of all Persons not regularly in its employ) except any such
expense, disbursement or advance as may arise from its gross negligence,
willful misconduct, recklessness or bad faith. 
The Company also covenants to indemnify the Trustee and any predecessor
Trustee (or any officer, director or employee of the Trustee), in any capacity
under this Indenture and any authenticating agent for, and to hold them harmless
against, any and all loss, liability, damage, claim or reasonable expense
including taxes (other than taxes based on the income of the Trustee) incurred
without gross negligence, willful misconduct, recklessness or bad faith on the
part of the Trustee or such officers, directors, employees or authenticating
agent, as the case may be, and arising out of or in connection with the
acceptance or administration of this trust or in any other capacity hereunder,
including the reasonable costs and expenses of defending themselves against any
claim (whether asserted by the Company, any holder or any other Person) of
liability in the premises.  The
obligations of the Company under this Section 7.06 to compensate or indemnify
the Trustee and to pay or reimburse the Trustee for reasonable expenses,
disbursements and advances shall be secured by a lien prior to that of the
Notes upon all property and funds held or collected by the Trustee as such,
except funds held in trust for the benefit of the holders of particular
Notes.  The obligation of the Company
under this Section shall survive the satisfaction and discharge of this
Indenture.

When the Trustee and its agents and any
authenticating agent incur expenses or render services after an Event of
Default specified in Section 6.01(g), (h) or (i)  occurs, the expenses and the compensation for
the services are intended to constitute reasonable expenses of administration
under any bankruptcy, insolvency or similar laws.

Section
7.07                Officers’
Certificate as Evidence.

Except as otherwise provided in Section 7.01,
whenever in the administration of the provisions of this Indenture the Trustee
shall deem it necessary or desirable that a matter be proved or established
prior to taking or omitting any action hereunder, such matter (unless other
evidence in respect thereof be herein specifically prescribed) may, in the
absence of gross negligence, bad faith, recklessness or willful misconduct on
the part of the Trustee, be deemed to be conclusively proved and established by
an Officers’ Certificate delivered to the Trustee.

Section
7.08                Conflicting
Interests of Trustee.

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

Section
7.09                Eligibility of
Trustee.

There shall at all times be a Trustee
hereunder which shall be a Person that is eligible pursuant to the TIA to act
as such and has a combined capital and surplus of at least $50,000,000 (or if
such Person is a member of a bank holding company system, its bank holding
company shall have a combined capital and surplus of at least
$50,000,000).  If such Person publishes
reports of condition at least annually, pursuant to law or to the requirements
of any supervising or examining authority, then for the purposes of this
Section the combined capital and surplus of such Person shall be deemed to be
its combined capital and surplus as set forth in its most recent report of
condition so published.  If at any time
the Trustee shall

 41
 

cease to be eligible in
accordance with the provisions of this Section 7.09, it shall resign
immediately in the manner and with the effect hereinafter specified in this
Article.

Section
7.10                Resignation or
Removal of Trustee.

(a)           The
Trustee may at any time resign by giving written notice of such resignation to
the Company and to the holders of Notes. 
Upon receiving such notice of resignation, the Company shall promptly
appoint a successor trustee by written instrument, in duplicate, executed by
order of the Board of Directors, one copy of which instrument shall be
delivered to the resigning Trustee and one copy to the successor trustee.  If no successor trustee shall have been so
appointed and have accepted appointment 60 days after the mailing of such
notice of resignation to the holders, the resigning Trustee may, upon ten
Business Days’ notice to the Company and the holders, appoint a successor
identified in such notice or may petition, at the expense of the Company, any
court of competent jurisdiction for the appointment of a successor trustee, or,
if any holder who has been a bona fide holder of a Note or Notes for at least
six months may, subject to the provisions of Section 6.10, on behalf of itself
and all others similarly situated, petition any such court for the appointment
of a successor trustee.  Such court may
thereupon, after such notice, if any, as it may deem proper and prescribe,
appoint a successor trustee.

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

(i)    the Trustee shall fail to comply with
Section 7.08 after written request therefor by the Company or by any holder who
has been a bona fide holder of a Note or Notes for at least six months; or

(ii)   the Trustee shall cease to be eligible in
accordance with the provisions of Section 7.09 and shall fail to resign after
written request therefor by the Company or by any such holder; or

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

then,
in any such case, the Company may remove the Trustee and appoint a successor
trustee by written instrument, in duplicate, executed by order of the Board of
Directors, one copy of which instrument shall be delivered to the Trustee so
removed and one copy to the successor trustee, or, subject to the provisions of
Section 6.10, any holder who has been a bona fide holder of a Note or Notes for
at least six months may, on behalf of itself and all others similarly situated,
petition any court of competent jurisdiction for the removal of the Trustee and
the appointment of a successor trustee; provided that
if no successor Trustee shall have been appointed and have accepted appointment
60 days after either the Company or the holders has removed the Trustee, or the
Trustee resigns, the Trustee so removed may petition, at the expense of the
Company, any court of competent jurisdiction for an appointment of a successor
trustee.  Such court may thereupon, after
such notice, if any, as it may deem proper and prescribe, remove the Trustee
and appoint a successor trustee.

(c)           The
holders of a majority in aggregate principal amount of the outstanding Notes
may at any time remove the Trustee and nominate a successor trustee which shall
be deemed appointed as successor trustee unless, within ten days after notice
to the Company of such nomination, the Company objects thereto, in which case
the Trustee so removed or any holder, or if such Trustee so removed or any
holder fails to act, the Company, upon the terms and conditions and otherwise
as in Section 7.10(a) provided, may petition any court of competent
jurisdiction for an appointment of a successor trustee.

 42
 

 

(d)           Any
resignation or removal of the Trustee and appointment of a successor trustee
pursuant to any of the provisions of this Section 7.10 shall become effective
upon acceptance of appointment by the successor trustee as provided in Section
7.11.

(e)           Notwithstanding
the replacement of the Trustee pursuant to this Section, the Company’s
obligations under Section 7.06 shall continue for the benefit of the retiring
Trustee.

Section
7.11                Acceptance by
Successor Trustee.

Any successor trustee appointed as provided
in Section 7.10 shall execute, acknowledge and deliver to the Company and to
its predecessor trustee an instrument accepting such appointment hereunder, and
thereupon the resignation or removal of the predecessor trustee shall become
effective and such successor trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, duties and
obligations of its predecessor hereunder, with like effect as if originally
named as trustee herein; but, nevertheless, on the written request of the
Company or of the successor trustee, the trustee ceasing to act shall execute
and deliver an instrument transferring to such successor trustee all the rights
and powers of the trustee so ceasing to act. 
Upon request of any such successor trustee, the Company shall execute
any and all instruments in writing for more fully and certainly vesting in and
confirming to such successor trustee all such rights and powers.  Any trustee ceasing to act shall,
nevertheless, retain a lien upon all property and funds held or collected by
such trustee as such, except for funds held in trust for the benefit of holders
of particular Notes, to secure any amounts then due it pursuant to the
provisions of Section 7.06.

No successor trustee shall accept appointment
as provided in this Section 7.11 unless, at the time of such acceptance, such
successor trustee shall be qualified under the provisions of Section 7.08 and
be eligible under the provisions of Section 7.09.

Upon acceptance of appointment by a successor
trustee as provided in this Section 7.11, the Company (or the former trustee,
at the written direction of the Company) shall mail or cause to be mailed
notice of the succession of such trustee hereunder to the holders of Notes at
their addresses as they shall appear on the Note Register.  If the Company fails to mail such notice
within ten days after acceptance of appointment by the successor trustee, the
successor trustee shall cause such notice to be mailed at the expense of the
Company.

Section
7.12                Succession by
Merger.

Any corporation into which the Trustee may be
merged or converted or with which it may be consolidated, or any corporation
resulting from any merger, conversion or consolidation to which the Trustee
shall be a party, or any corporation succeeding to all or substantially all of
the corporate trust business of the Trustee (including any trust created by
this Indenture), shall be the successor to the Trustee hereunder without the
execution or filing of any paper or any further act on the part of any of the
parties hereto, provided that in
the case of any corporation succeeding to all or substantially all of the
corporate trust business of the Trustee, such corporation shall be qualified
under the provisions of Section 7.08 and eligible under the provisions of
Section 7.09.

In case at the time such successor to the
Trustee shall succeed to the trusts created by this Indenture, any of the Notes
shall have been authenticated but not delivered, any such successor to the
Trustee may adopt the certificate of authentication of any predecessor trustee
or authenticating agent appointed by such predecessor trustee, and deliver such
Notes so authenticated; and in case at that time any of the Notes shall not
have been authenticated, any successor to the Trustee or any authenticating
agent appointed by such successor trustee may authenticate such Notes in the
name of the successor 

 43
 

trustee; and in all such
cases such certificates shall have the full force that is provided in the Notes
or in this Indenture; provided
that the right to adopt the certificate of authentication of any predecessor
Trustee or authenticate Notes in the name of any predecessor Trustee shall
apply only to its successor or successors by merger, conversion or
consolidation.

Section 7.13                Preferential Collection of Claims.

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

ARTICLE VIII

THE NOTEHOLDERS

Section
8.01                Action by Noteholders.

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

Section
8.02                Proof of Execution
by Holders.

Subject to the provisions of Sections 7.01
and 7.02, proof of the execution of any instrument by a holder or its agent or
proxy shall be sufficient if made in accordance with such reasonable rules and
regulations as may be prescribed by the Trustee or in such manner as shall be
satisfactory to the Trustee.  The holding
of Notes shall be proved by the registry of such Notes or by a certificate of
the Note Registrar.

Section
8.03                Absolute Owners.

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

 44
 

 

Section 8.04                Company-Owned Notes
Disregarded.

In determining whether the holders of the
requisite aggregate principal amount of Notes have concurred in any direction,
consent, waiver or other action under this Indenture, Notes which are owned by
the Company or any other obligor on the Notes or any Affiliate of the Company
or any other obligor on the Notes shall be disregarded and deemed not to be
outstanding for the purpose of any such determination; provided that for the purposes of
determining whether the Trustee shall be protected in relying on any such
direction, consent, waiver or other action, only Notes which a Responsible
Officer knows are so owned shall be so disregarded.  Notes so owned which have been pledged in
good faith may be regarded as outstanding for the purposes of this Section 8.04
if the pledgee shall establish to the satisfaction of the Trustee the pledgee’s
right to vote such Notes and that the pledgee is not the Company, any other
obligor on the Notes or any Affiliate of the Company or any such other
obligor.  In the case of a dispute as to
such right, any decision by the Trustee taken upon the advice of counsel shall
be full protection to the Trustee.  Upon
request of the Trustee, the Company shall furnish to the Trustee promptly an
Officers’ Certificate listing and identifying all Notes, if any, known by the
Company to be owned or held by or for the account of any of the above described
Persons, and, subject to Section 7.01, the Trustee shall be entitled to accept
such Officers’ Certificate as conclusive evidence of the facts therein set
forth and of the fact that all Notes not listed therein are outstanding for the
purpose of any such determination.

Section
8.05                Revocation of
Consents; Future Holders Bound.

At any time prior to (but not after) the
evidencing to the Trustee, as provided in Section 8.01, of the taking of any
action by the holders of the percentage in aggregate principal amount of the
Notes specified in this Indenture in connection with such action, any holder of
a Note which is shown by the evidence to be included in the Notes the holders
of which have consented to such action may, by filing written notice with the
Trustee at its Corporate Trust Office and upon proof of holding as provided in
Section 8.02, revoke such action so far as concerns such Note.  Except as aforesaid, any such action taken by
the holder of any Note shall be conclusive and binding upon such holder and
upon all future holders and owners of such Note and of any Notes issued in
exchange or substitution therefor, irrespective of whether any notation in
regard thereto is made upon such Note or any Note issued in exchange or
substitution therefor.

ARTICLE IX

SATISFACTION AND DISCHARGE OF INDENTURE

Section
9.01                Discharge of
Indenture.

When (a) the Company shall deliver to the
Trustee for cancellation all outstanding Notes (other than any Notes that have
been replaced pursuant to Section 2.06), or (b) all outstanding Notes shall
have become due and payable (whether at Stated Maturity, on any Redemption
Date, on any Fundamental Change Repurchase Date, upon conversion or otherwise),
and the Company shall deposit with the Trustee, in trust, cash and shares of
Common Stock (as applicable under the terms of this Indenture) sufficient to
pay all of the outstanding Notes (other than any Notes that have been replaced
pursuant to Section 2.06), including principal and premium, if any, and
interest (including Liquidated Damages, if any, and Additional Interest, if
any) due or to become due at such Stated Maturity, on such Redemption Date, on
such Fundamental Change Repurchase Date, upon such conversion or otherwise, as
the case may be, accompanied by a verification report, as to the sufficiency of
the deposited amount, from an independent certified accountant or other
financial professional satisfactory to the Trustee, and if the Company shall
also pay or cause to be paid all other sums payable hereunder by the Company,
then this Indenture shall cease to be of further effect (except as to (i)
remaining rights of registration of transfer, substitution and exchange and
conversion of Notes, (ii) rights hereunder of holders to receive payments of 

 45
 

principal of and premium, if
any, and interest (including Liquidated Damages, if any, and, Additional
Interest, if any, and on the Notes and the other rights, duties and obligations
of holders, as beneficiaries hereof with respect to the amounts, if any, so
deposited with the Trustee and (iii) the rights, obligations and immunities of
the Trustee hereunder), and the Trustee, on written demand of the Company
accompanied by an Officers’ Certificate and an Opinion of Counsel as required
by Section 13.04 and at the cost and expense of the Company, shall execute
proper instruments acknowledging satisfaction of and discharging this
Indenture.  The Company, however, hereby
agrees to reimburse the Trustee for any costs or expenses thereafter reasonably
and properly incurred by the Trustee and to compensate the Trustee for any
services thereafter reasonably and properly rendered by the Trustee in
connection with this Indenture or the Notes.

Section
9.02                Deposited Monies to
be Held in Trust by Trustee.

Subject to Section 9.04, all monies deposited
with the Trustee pursuant to Section 7.05, shall be held in trust for the sole
benefit of the holders, and such monies shall be applied by the Trustee to the
payment, either directly or through any Paying Agent (including the Company if
acting as its own Paying Agent), to the holders of the particular Notes for the
payment or redemption of which such monies have been deposited with the
Trustee, of all sums due and to become due thereon for principal, premium, if
any, and interest (including Liquidated Damages, if any and Additional
Interest, if any).  All moneys deposited
with the Trustee pursuant to Section 7.05 (and held by it or any Paying Agent)
for the payment of Notes subsequently converted shall be returned to the
Company upon request.  The Trustee is not
responsible to anyone for interest on any deposited funds except as agreed in
writing.

Section
9.03                Paying Agent to
Repay Monies Held.

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

Section
9.04                Return of Unclaimed
Monies.

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

Section
9.05                Reinstatement.

If the Trustee or the Paying Agent is unable
to apply any money in accordance with Section 9.02 by reason of any order or judgment
of any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, the Company’s obligations under this Indenture
and the Notes shall be revived and reinstated as though no deposit had occurred
pursuant to Section 9.01 until such time as the Trustee or the Paying Agent is
permitted to apply all such money in accordance with Section 9.02; provided that if the Company makes any
payment of principal of or premium, if any, or interest (including Liquidated
Damages, if any, and Additional Interest, if any) on any Note following the

 46
 

reinstatement of its
obligations, the Company shall be subrogated to the rights of the holders of
such Notes to receive such payment from the money held by the Trustee or Paying
Agent.

ARTICLE X

AMENDMENTS

Section
10.01              Without Consent of
Holders.

The
Company and the Trustee may amend or supplement this Indenture or the Notes
without notice to or consent of any holder of the Notes:

(a)           to
cure any ambiguity, omission, defect or inconsistency in this Indenture;

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

(c)           to
make any other change that does not adversely affect the rights of any holder
of the Notes in any material respect; provided that
any change to conform this Indenture to the Offering Memorandum shall be deemed
not to adversely affect the rights of any holder of the Notes;

(d)           to
comply with the provisions of the TIA (other than the qualification
requirements);

(e)           to
evidence and provide for the acceptance of appointment under this Indenture by
a successor Trustee with respect to the Notes;

(f)            to
make provisions with respect to the conversion right of the holders of the
Notes pursuant to the requirements of this Indenture; or

(g)           to
add additional guarantors of the Notes.

Section
10.02              With Consent of
Holders.

The Company and the Trustee may amend or
supplement this Indenture or the Notes without notice to any holder but with
the consent of the holders of not less than a majority in aggregate principal
amount of the outstanding Notes; provided,
however, that without the consent
of each holder affected an amendment, supplement or waiver, including a waiver
pursuant to Section 6.08, may not:

(a)           change
the Stated Maturity of, or any payment date of any installment of interest
(including Liquidated Damages or Additional Interest) on, any Note;

(b)           reduce
the principal amount or Redemption Price of, or the rate of interest (including
Liquidated Damages or Additional Interest) on, any Note, whether upon
acceleration, redemption or otherwise, or alter the manner of calculation of
interest (including Liquidated Damages or Additional Interest) or the rate of
accrual thereof on any Note;

(c)           change
the currency for payment of principal of, or interest (including Liquidated
Damages or Additional Interest) on, any Note;

(d)           impair
the right to institute suit for the enforcement of any payment of any amount
with respect to any Note when due;

 47

(e)           adversely
affect the conversion rights provided in Article XI, including reducing the
total consideration receivable upon such conversion;

(f)            modify
in any material respect the provisions (including the definitions used therein)
of this Indenture requiring the Company to make an offer to repurchase Notes
upon a Fundamental Change pursuant to Section 3.05;

(g)           reduce
the percentage of principal amount of the outstanding Notes necessary to modify
or amend this Indenture or to consent to any waiver provided for in this
Indenture;

(h)           modify
the ranking or priority of the Notes or the Guarantee in a manner adverse to
the holders of the notes in any material respect;

(i)            waive
a default in the payment of any amount or shares of Common Stock due in
connection with any Note;

(j)            make
any changes to Section 6.05(b), Section 6.08 or this Section 10.02; or

(k)           eliminate
the Guarantee, except on the terms set forth in this Indenture.

It shall not be necessary for the consent of
the holders under this Section 10.02 to approve the particular form of any
proposed amendment, supplement or waiver, but it shall be sufficient if such
consent approves the substance thereof.

After an amendment under this Section 10.02
becomes effective, the Company shall mail to each holder a notice briefly
describing the amendment.  Failure to
mail the notice or a defect in the notice shall not affect the validity of the
amendment.

Section 10.03              Compliance
With Trust Indenture Act.

 

Every supplemental indenture executed
pursuant to this Article X shall comply with the TIA; provided,
however, that this provision shall not require any such supplemental
Indenture or this Indenture to be qualified under the TIA.

Section 10.04              Revocation
and Effect of Consents.

 

Until an amendment, waiver or other action by
holders becomes effective, a consent thereto by a holder of a Note hereunder is
a continuing consent by such holder and every subsequent holder of such Note or
portion of such Note that evidences the same obligation as the consenting
holder’s Note, even if notation of the consent, waiver or action is not made on
such Note.  However, unless otherwise
agreed by such holder or a predecessor holder, any such holder or subsequent
holder may revoke the consent, waiver or action as to such holder’s Note or
portion of the Note if the Trustee receives the notice of revocation before the
date the amendment, waiver or action becomes effective.  After an amendment, waiver or action becomes
effective, it shall bind every holder.

Section 10.05              Notation
on or Exchange of Securities.

 

Notes authenticated and delivered after the
execution of any supplemental indenture pursuant to this Article X 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 or the Trustee shall so
determine, new Notes so modified as to conform, in the opinion of the Trustee
and the Board of Directors, 

 48
 

to any modification of this Indenture contained in any
such supplemental indenture may, at the Company’s expense, be prepared and
executed by the Company, and such new Notes may be authenticated and delivered
by the Trustee in exchange for outstanding Notes.

Section 10.06              Trustee
to Sign Supplemental Indentures.

 

Upon the written request of the Company,
accompanied by a copy of the resolutions of the Board of Directors certified by
the Company’s Secretary or Assistant Secretary authorizing the execution of any
such supplemental indenture, and upon the filing with the Trustee of evidence
of the consent of holders as aforesaid, the Trustee shall join with the Company
in the execution of such supplemental indenture unless such supplemental
indenture affects the Trustee’s own rights, duties or immunities under this
Indenture or otherwise, in which case the Trustee may in its discretion, but
shall not be obligated to, enter into such supplemental indenture.  In signing any supplemental indenture the
Trustee shall be entitled to receive, and (subject to the provisions of Section
7.01) shall be fully protected in relying upon, an Officers’ Certificate and an
Opinion of Counsel stating that such amendment is authorized or permitted by
this Indenture.

Section 10.07              Effect
of Supplemental Indentures.

 

Upon the execution of any supplemental indenture
under this Article X, 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 Notes theretofore or thereafter authenticated and
delivered hereunder shall be bound thereby.

ARTICLE XI

CONVERSION OF THE SECURITIES

Section 11.01              Right
to Convert.

 

(a)           Subject
to and upon compliance with the provisions of this Indenture, prior to 5:00
p.m., New York City time, on the second Business Day immediately preceding the
Stated Maturity, the holder of any Note not previously redeemed or repurchased
shall have the right, at such holder’s option, to convert the principal amount
of the Note, or any portion of such principal amount which is a multiple of
$1,000, into cash and/or Common Stock as provided in Section 11.12 at the
Conversion Rate in effect at such time (the “Conversion
Obligation”), by surrender of the Note so to be converted in whole
or in part, together with any required funds, under the circumstances and in
the manner described in this Article XI; provided,
however, that at any time prior to 5:00 p.m., New York City time, on
the Business Day prior to December 15, 2011, holders may convert their Notes
only if any of the conditions described below is satisfied:

(i)    Conversion
Upon Satisfaction of Closing Sale Price Condition.  During any calendar quarter (and only during
such calendar quarter) (each, a “Quarter”)
commencing after the date of this Indenture, if the Closing Sale Price of the
Common Stock for at least 20 Trading Days in the period of 30 consecutive
Trading Days ending on the last Trading Day of the Quarter immediately
preceding such Quarter is more than 125% of the Conversion Price (appropriately
adjusted to take into account the occurrence, during such 30 consecutive
Trading Day period, of any event requiring adjustment of the Conversion Rate
under this Indenture) on such 30th Trading Day;

(ii)   Conversion
Upon Satisfaction of Trading Price Condition:  During the five consecutive Business Day
period after any five consecutive Trading Day period in which the 

 49
 

Trading Price per $1,000 principal
amount of Notes, as determined following a request by a holder of Notes in
accordance with the procedures described below in Section 11.01(d), for each
Trading Day of such five Trading Day period was less than 95% of the product of
the average of the Closing Sale Price of the Common Stock for such five Trading
Day period and the then current Conversion Rate;

(iii)  Conversion
Upon Notice of Redemption:  Such
Note has been called for redemption by the Company pursuant to Section 3.01 and
the redemption has not yet occurred, so long as the holder surrenders such Note
for conversion prior to 5:00 p.m., New York City time, on the Business Day
immediately preceding the applicable Redemption Date, even if the Note is not
otherwise convertible at such time;

(iv)  Conversion
Upon Specified Distributions: 
The Company elects to:

(A)              distribute to all holders of
Common Stock rights or warrants entitling them to subscribe for or purchase,
for a period expiring not more than 45 days after the date of distribution,
shares of Common Stock (or securities convertible into Common Stock) at a price
(or having a conversion price) per share less than the Current Market Price of the
Common Stock, provided that no holder shall
have the right to convert any Note pursuant to this Section 11.01(a)(iv)(A) as
a result of the rights of holders of the Common Stock to participate in any
dividend reinvestment plan made available all holders of the Common Stock; or

(B)               distribute to all holders of
Common Stock cash, other assets, debt securities or rights or warrants to
purchase or subscribe for Capital Stock or other securities of the Company,
which distribution has a Fair Market Value per share of Common Stock (as
determined by the Board of Directors, whose determination shall be conclusive
evidence of such Fair Market Value) exceeding 10% of the Closing Sale Price of
the Common Stock on the Trading Day immediately preceding the declaration date
for such distribution;

provided that the holder shall have no right to
convert any Note pursuant to this Section 11.01(a)(iv) if the holder of a Note
otherwise participates in the distribution described in this Section
11.01(a)(iv) on an as-converted basis (assuming conversion solely into shares
of Common Stock at the then applicable Conversion Price) without conversion of
such holder’s Notes; or

(v)   Conversion
Upon a Fundamental Change.  If
the Company is party to a Fundamental Change, from and after the date that is
15 days prior to the anticipated effective date of such Fundamental Change
until and including the date that is 15 days after the actual Effective Date
(or, if such Fundamental Change also results in holders having the right to
require us to repurchase their notes, until the Business Day immediately
preceding the Fundamental Change Repurchase Date).

Whenever the Notes shall become convertible
pursuant to this Section 11.01, the Company, or, at the Company’s request, the
Trustee in the name and at the expense of the Company, shall notify the holders
of the event triggering such convertibility in the manner provided in Section
13.02 and, in the cases of clauses (iv) and (v) of this Section 11.01(a), in
the manner provided in Sections 11.01(b) and (c), respectively, and the Company
shall also publicly announce such information and publish it on the Company’s
web site.  Any notice so given shall be
conclusively presumed to have been duly given, whether or not the holder
receives such notice.

 50
 

(b)           In
the case of the foregoing clause (iv) of Section 11.01(a), the Company shall
cause a notice of such distribution to be filed with the Trustee and the
Conversion Agent and to be mailed to each holder of Notes no later than 45 days
prior to the Ex-Dividend Date for such distribution.  Once the Company has given such notice,
holders may surrender their Notes for conversion at any time thereafter until
the earlier of 5:00 p.m., New York City time, on the Business Day immediately
preceding the Ex-Dividend Date or the Company’s announcement that such
distribution will not take place.

(c)           In
the case of the foregoing clause (v) of Section 11.01(a), the Company shall
give notice to all holders of the Notes and to the Conversion Agent, at least
15 Trading Days prior to the anticipated effective date of such Fundamental
Change, of such anticipated effective date. 
The Company shall also give notice, within four Trading Days after the
Effective Date of such Fundamental Change, to all holders of the Notes and to
the Conversion Agent that such Fundamental Change has become effective.  Holders surrendering Notes for conversion at
any time from and after the date that is 15 days prior to the anticipated
effective date of such Fundamental Change until and including the date that is
15 days after the actual Effective Date (or, if such Fundamental Change also
results in holders having a right to require the Company to repurchase their
Notes in accordance with Section 3.05, until the Business Day immediately
preceding the Fundamental Change Repurchase Date) shall be entitled to receive
the Additional Shares in accordance with Section 11.07.

(d)           For
each Quarter of the Company commencing after the date of this Indenture and
ending on the Quarter immediately prior to December 15, 2011, the Conversion
Agent, on behalf of the Company, shall determine, on the first Business Day
immediately after the last Trading Day of the prior Quarter, whether the Notes
are convertible pursuant to clause (i) of Section 11.01(a), and, if so, shall notify
the Trustee and the Company in writing.

(e)           The
Trustee shall have no obligation to determine the Trading Price of the Notes
and whether the Notes are convertible pursuant to clause (ii) of Section
11.01(a) unless the Company has requested such determination; and the Company
shall have no obligation to make such request unless a holder of Notes requests
that the Company do so.  If a holder
provides such request, the Company shall instruct the Trustee to determine the
Trading Price of the Notes beginning on the next Trading Day and on each
successive Trading Day for ten consecutive Trading Days to determine whether
the Trading Prices for the Notes for each Trading Day in any five consecutive
Trading Day period within such ten Trading Day period is less than 95% of the
product of the average of the Closing Sale Price of the Common Stock for such
five Trading Day Period and the then current Conversion Rate, and to notify the
Company accordingly.

(f)            A
holder may convert a portion of a Note equal to $1,000 or any integral multiple
thereof.  Provisions of this Indenture
that apply to conversion of all of a Note also apply to conversion of a portion
of a Note.

(g)           If
a Note is called for redemption pursuant to Section 3.01, in order to convert
such Note, the holder must follow the procedures for conversion set forth in
Section 11.02 at any time prior to 5:00 p.m., New York City time, on the
Business Day immediately preceding the applicable Redemption Date (unless the
Company shall default in paying the Redemption Price when due, in which case
the conversion right shall terminate on the date such default is cured and such
Note is redeemed).

(h)           A
Note in respect of which a holder has delivered a Fundamental Change Repurchase
Notice pursuant to Section 3.05 exercising the option of such holder to require
the Company to repurchase such Note may be converted only if such Fundamental
Change Repurchase Notice is withdrawn by a written notice of withdrawal
delivered to the Paying Agent prior to 5:00 p.m., New York 

 51
 

City time, on the Business Day immediately preceding
the Fundamental Change Repurchase Date in accordance with Section 3.06(b).

(i)            A
holder of Notes is not entitled to any rights of a holder of Common Stock until
such holder has converted its Notes into Common Stock.

Section 11.02              Exercise
of Conversion Right; No Adjustment for Interest or Dividends.

 

To exercise the conversion right with respect
to any Note in certificated form, the Company must receive at the office or
agency of the Company maintained for that purpose in the City of New York or,
at the option of such holder, the Corporate Trust Office, such Note with the
original or facsimile of the form entitled “Conversion
Notice” on the reverse thereof, duly completed and manually signed,
together with such Notes duly endorsed for transfer, accompanied by the funds,
if any, required by this Section 11.02. 
Such notice shall also state the name or names (with address or
addresses) in which the certificate or certificates for shares of Common Stock
which shall be issuable on such conversion shall be issued, and shall be
accompanied by transfer or similar taxes, if required pursuant to Section
11.10.

To exercise the conversion right with respect
to any interest in a Global Note, the beneficial holder must complete, or cause
to be completed, the appropriate instruction form for conversion pursuant to
the Depositary’s book-entry conversion program; deliver, or cause to be
delivered, by book-entry delivery an interest in such Global Note; furnish
appropriate endorsements and transfer documents if required by the Company or
the Trustee or Conversion Agent; and pay the funds, if any, required by this
Section 11.02 and any transfer taxes if required by Section 11.10.

If the Company will issue shares of Common
Stock upon settlement of its conversion obligations in accordance with Section
11.12, after satisfaction of the requirements for conversion set forth above,
subject to compliance with any restrictions on transfer if shares issuable on
conversion are to be issued in a name other than that of the holder (as if such
transfer were a transfer of the Note or Notes (or portion thereof) so
converted), and in accordance with the time periods set forth in this Article
XI, the Company shall issue and shall deliver to such holder at the office or
agency maintained by the Company for such purpose pursuant to Section 4.05:

(i)    a certificate or certificates for the number
of full shares of Common Stock (if any) issuable upon the conversion of such
Note or portion thereof as determined by the Company in accordance with the
provisions of Sections 11.07 (if applicable) and 11.12 (or in the case of Notes
submitted for conversion in connection with a Fundamental Change on or after
the record date for receiving distributions in connection with the Fundamental
Change, or if earlier, the Effective Date, the Settlement Amount pursuant to
Section 11.12 shall be determined based on the kind and amount of cash,
securities and other assets or property that a holder of Notes would have owned
or been entitled to receive in such transaction in accordance with Sections
11.06 and 11.07; and provided further
that if the determination date is the record date, the holder shall receive the
Settlement Amount on the Effective Date), and

(ii)   a check or cash in respect of any fractional
interest in respect of a share of Common Stock arising upon such conversion,
calculated by the Company as provided in Section 11.03.

The certificate or certificates for the number of full shares
of Common Stock into which the Notes are converted (and cash in lieu of
fractional shares) will be delivered to a converting holder after satisfaction
of the requirements for conversion set forth above, in accordance with this
Section 11.02 and Sections11.03, 11.07 and 11.12.

 52
 

Each conversion shall be deemed to have been
effected as to any such Note (or portion thereof) on the date on which the
requirements set forth above in this Section 11.02 have been satisfied as to
such Note (or portion thereof) (the “Conversion
Date”).  The Person in whose
name any shares of Common Stock shall be issuable upon such conversion, if any,
shall become on the date such shares are issued to such Person (whether
physically or in book-entry form) in accordance with the provisions of this
Article XI, the holder of record of such shares.

No payment or other adjustment shall be made
for interest (including Liquidated Damages, if any, and Additional Interest, if
any) accrued on any Note converted or for dividends on any shares issued upon
the conversion of such Note as provided in this Article XI.  Notwithstanding the foregoing, in the case of
Notes submitted for conversion in connection with a Fundamental Change, such
Notes shall continue to represent the right to receive the Additional Shares,
if any, payable pursuant to Section 11.07, until such Additional Shares are so
paid.

Upon the conversion of an interest in a
Global Note, the Trustee (or other Conversion Agent appointed by the Company),
or the Custodian at the direction of the Trustee (or other Conversion Agent
appointed by the Company), shall make a notation on such Global Note as to the
reduction in the principal amount represented thereby.  The Company shall notify the Trustee in
writing of any conversions of Notes effected through any Conversion Agent other
than the Trustee.

Upon the conversion of a Note, the accrued
but unpaid interest (including Liquidated Damages, if any, and Additional
Interest, if any) attributable to the period from the issue date of the Note to
the Conversion Date, with respect to the converted Note, shall not be
cancelled, extinguished or forfeited, but rather shall be deemed to be paid in
full to the holder thereof through delivery of cash and/or shares of Common
Stock, as applicable, pursuant to Section 11.12 (together with the cash
payment, if any in lieu of fractional shares), in exchange for the Note being
converted pursuant to the provisions hereof; and the cash, if any, and Fair
Market Value of the shares of Common Stock, if any (together with any such cash
payment in lieu of fractional shares), shall be treated as delivered, to the
extent thereof, first in exchange for and in satisfaction of our obligation to
pay the principal amount of the converted Note, the accrued but unpaid interest
(including Liquidated Damages, if any, and Additional Interest, if any) through
the Conversion Date from the issue date, and the balance, if any, of the cash,
if any, and the Fair Market Value of the shares of Common Stock, if any (and
any such cash payment), shall be treated as issued in exchange for and in
satisfaction of the right to convert the Note being converted pursuant to the
provisions hereof.

Notwithstanding the foregoing, if Notes are
converted after 5:00 p.m., New York City time, on a Record Date, and prior to
9:00 a.m., New York City time, on the corresponding Interest Payment Date,
holders of such Notes at 5:00 p.m., New York City time, on the Record Date will
receive the interest (including Liquidated Damages, if any, and Additional
Interest, if any) payable on such Notes on the corresponding Interest Payment
Date notwithstanding the conversion. 
Notes, upon surrender for conversion during the period from 5:00 p.m.,
New York City time, on a Record Date to 9:00 a.m., New York City time, on the
corresponding Interest Payment Date, must be accompanied by payment, in
immediately available funds or other funds acceptable to  the Company, of an amount equal to the amount
of interest (including Liquidated Damages, if any and Additional Interest, if
any) payable on the principal amount of the Notes so converted; provided that no such payment need be made (1) if a holder
converts its Notes in connection with a redemption and the Company has
specified a Redemption Date that is after a Record Date and on or prior to the
corresponding Interest Payment Date, (2) if a holder converts its Notes in
connection with a Fundamental Change and the Company has specified a
Fundamental Change Repurchase Date that is after a Record Date and on or prior
to the corresponding Interest Payment Date, (3) with respect to Notes
surrendered for conversion on the Interest Payment Date, (4) if a holder
converts 

 53
 

its Notes after the Record Date immediately preceding
the Stated Maturity, or (5) to the extent of any overdue interest, if any
overdue interest exists at the time of conversion with respect to such Note.

In case any Note of a denomination greater
than $1,000 shall be surrendered for partial conversion, and subject to Section
2.04, the Company shall execute and the Trustee shall authenticate and deliver
to the holder of the Note so surrendered, without charge to the holder, a new
Note or Notes in authorized denominations in an aggregate principal amount
equal to the unconverted portion of the surrendered Note.

Section 11.03              Cash
Payments in Lieu of Fractional Shares.

 

(a)           The
Company shall not issue any fractional share of Common Stock upon conversion of
a Note.

(b)           The
Company shall pay cash for fractional shares of Common Stock (calculated on an
aggregate basis for the Notes surrendered by a holder for conversion) based on
the daily VWAP of the Common Stock on the final Trading Day of the applicable
Cash Settlement Averaging Period.

Section 11.04              Conversion
Rate.

 

The initial Conversion Rate for the Notes
(the “Conversion Rate”) is  8.9702 shares of Common Stock per each $1,000 principal
amount of the Notes, subject to adjustment as provided in Sections 11.05 and
11.07, and subject to the right of the Company to settle all or a portion of
its conversion obligations in cash in accordance with Section 11.12.

Section 11.05              Adjustments
to Conversion Rate.

 

The Conversion Rate shall be adjusted from
time to time by the Company as follows (and as provided in Section 11.07):

(a)           If
the Company shall hereafter pay a dividend or make a distribution to all
holders of the outstanding Common Stock in shares of Common Stock, the
Conversion Rate shall be increased so that the same shall equal the rate
determined by multiplying the Conversion Rate in effect at 9:00 a.m., New York
City time, on the day immediately following the record date by a fraction,

(i)    the numerator of which shall be the sum of
the number of shares of Common Stock outstanding at 5:00 p.m., New York City
time, on such record date and the total number of shares of Common Stock
constituting such dividend or other distribution; and

(ii)   the denominator of which shall be the number
of shares of Common Stock outstanding at 5:00 p.m., New York City time, on such
record date.

Such
increase shall become effective immediately after 9:00 a.m., New York City
time, on the day immediately following such record date.  If any dividend or distribution of the type
described in this Section 11.05(a) is declared but not so paid or made, the
Conversion Rate shall again be adjusted to the Conversion Rate that would then
be in effect if such dividend or distribution had not been declared.

(b)           If
the Company shall issue rights or warrants to all holders of Common Stock
entitling them to subscribe for or purchase, for a period expiring not more
than 45 days after the date of distribution, shares of Common Stock (or
securities convertible into Common Stock) at a price (or having a conversion
price) per share less than the Current Market Price on the record date, the
Conversion Rate 

 54
 

shall be increased so that the same shall equal the rate
determined by multiplying the Conversion Rate in effect immediately prior to
such record date by a fraction,

(i)    the numerator of which shall be the number
of shares of Common Stock outstanding at 5:00 p.m., New York City time, on such
record date plus the total number of 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 5:00 p.m., New York City time, on such
record date plus the number of shares which the aggregate offering price of the
total number of shares 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 be successively made whenever any such rights or warrants are
issued, and shall become effective immediately after 9:00 a.m., New York City
time, on the day immediately following such record date.  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 that
would then be in effect had the adjustment made upon the issuance of such
rights or warrants been made on the basis of delivery of only the number of
shares of Common Stock (or securities convertible into Common Stock) actually
delivered.  If such rights or warrants
are not so issued, the Conversion Rate shall again be adjusted to be the
Conversion Rate that would then be in effect if such record date had not been
fixed.  In determining whether any rights
or warrants entitle the holders to subscribe for or purchase shares of Common
Stock (or securities convertible into Common Stock) at a price (or having a
conversion price) per share less than such Current Market Price, and in
determining the aggregate offering price of such shares of Common Stock, there
shall be taken into account any consideration received by the Company for such
rights or warrants and any amount payable on exercise or conversion thereof,
the Fair Market Value of such consideration, if other than cash, to be determined
by the Board of Directors, whose determination shall be conclusive.  Notwithstanding the foregoing, no adjustment
shall be made to the Conversion Rate pursuant to this Section 11.05(b) for the
rights of holders of Common Stock to participate in any dividend reinvestment
plan made available to all holders of Common Stock.

(c)           If
the outstanding shares of Common Stock shall be subdivided into a greater
number of shares of Common Stock, the Conversion Rate in effect at 9:00 a.m.,
New York City time, on the day immediately following the day upon which such
subdivision becomes effective shall be proportionately increased, and
conversely, in the event outstanding shares of Common Stock shall be combined
into a smaller number of shares of Common Stock, the Conversion Rate in effect
at 9:00 a.m., New York City time, on the day immediately 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
9:00 a.m., New York City time, on the day immediately following the day upon
which such subdivision or combination becomes effective.

(d)           If
the Company shall, by dividend or otherwise, distribute to all holders of
Common Stock shares of any class of Capital Stock of the Company (other than
any dividends or distributions to which Section 11.05(a) applies) or evidences
of its indebtedness or assets (including securities, but excluding (i) any
rights or warrants referred to in Section 11.05(b), (ii) any dividend or
distribution paid exclusively in cash or (iii) any dividends and distributions
in connection with a reclassification, consolidation, merger, combination or
sale or conveyance to which Section 11.06 applies) (any of the foregoing
hereinafter referred to in this Section 11.05(d) as the “Distributed Property”), then, in each such
case, the Conversion Rate shall be increased so that the same shall be equal to
the rate determined by 

 55
 

multiplying the Conversion Rate in effect on the
record date with respect to such distribution by a fraction,

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

(ii)   the denominator of which shall be the Current
Market Price on such record date less the Fair Market Value (as determined by
the Board of Directors, whose determination shall be conclusive, and described
in a resolution of the Board of Directors) on such record date of the portion
of the Distributed Property applicable to one share of Common Stock (determined
on the basis of the number of shares of the Common Stock outstanding on such
record date).

Such
adjustment shall become effective immediately prior to 9:00 a.m., New York City
time, on the day immediately following such record date; provided that if the then Fair Market Value
(as so determined by the Board of Directors) of the portion of the Distributed
Property 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 of Notes shall
have the right to receive upon conversion the amount of Distributed Property
such holder would have received had such holder converted its Notes on the
record date (assuming conversion solely into shares of Common Stock).  To the extent that any of the Distributed
Property is not distributed, the Conversion Rate shall be readjusted to the
Conversion Rate that would then be in effect had the adjustment made been made
on the basis of only the Distributed Property actually distributed.  If such dividend or distribution is not so
paid or made, the Conversion Rate shall again be adjusted to be the Conversion
Rate that would then be in effect if such dividend or distribution had not been
declared.  If the Board of Directors
determines the Fair Market Value of any distribution for purposes of this
Section 11.05(d)  by reference to the
trading market for any securities, it must in doing so consider the prices in
such market over the same period used in computing the Current Market Price on
the applicable record date.

Subject to the provisions of Section 11.08,
rights or warrants (including rights under any Rights Plan) distributed by the
Company to all holders of Common Stock entitling the holders thereof to subscribe
for or purchase shares of the Company’s Capital Stock (either initially or
under certain circumstances), which rights or warrants, until the occurrence of
a specified event or events (“Trigger Event”):  (i) are deemed to be transferred with such
shares of Common Stock; (ii) are not exercisable; and (iii) are also issued in
respect of future issuances of Common Stock, shall be deemed not to have been
distributed for purposes of this Section 11.05(d) (and no adjustment to the
Conversion Rate under this Section 11.05(d) will be required) until the
occurrence of the earliest Trigger Event, whereupon such rights and warrants
shall be deemed to have been distributed and an appropriate adjustment (if any
is required) to the Conversion Rate shall be made under this Section
11.05(d).  If any such right or warrant,
including any such existing rights or warrants distributed prior to the date of
this Indenture, are subject to events, upon the occurrence of which such rights
or warrants become exercisable to purchase different securities, evidences of
indebtedness or other assets, then the date of the occurrence of any and each
such event shall be deemed to be the date of distribution and record date with
respect to new rights or warrants with such rights (and a termination or
expiration of the existing rights or warrants without exercise by any of the
holders thereof).  In addition, in the
event of any distribution (or deemed distribution) of rights or warrants, or
any Trigger Event or other event (of the type described in the preceding
sentence) with respect thereto that was counted for purposes of calculating a
distribution amount for which an adjustment to the Conversion Rate under this
Section 11.05(d) was made, (1) in the case of any such rights or warrants that shall
all have been redeemed or repurchased without exercise by any holders thereof,
the Conversion Rate shall be readjusted upon such final redemption or
repurchase to give effect to such distribution or Trigger Event, as the case
may be, as though it were a cash distribution, equal to the per share
redemption or repurchase price received by a holder or holders of Common
Stock with respect to such rights or warrants (assuming such holder had
retained such rights or warrants), made to all holders of 

 56
 

Common Stock as of the date of such redemption or
repurchase, and (2) in the case of such rights or warrants that shall have
expired or been terminated without exercise by any holders thereof, the
Conversion Rate shall be readjusted as if such expired or terminated rights and
warrants had not been issued.

For purposes of this Section 11.05(d),
Section 11.05(a) and Section 11.05(b), any dividend or distribution to which
this Section 11.05(d) is applicable that also includes shares of Common Stock,
or rights or warrants to subscribe for or purchase shares of Common Stock (or
both), shall be deemed instead to be (1) a dividend or distribution of the
evidences of indebtedness, assets or shares of Capital Stock other than such
shares of Common Stock or rights or warrants (and any Conversion Rate
adjustment required by this Section 11.05(d) with respect to such dividend or
distribution shall then be made), immediately followed by (2) a dividend or
distribution of such shares of Common Stock or such rights or warrants (and any
further Conversion Rate adjustment required by Sections 11.05(a) and 11.05(b)
with respect to such dividend or distribution shall then be made), except any
shares of Common Stock included in such dividend or distribution shall not be
deemed “outstanding at 5:00 p.m., New York City time, on such record date”
within the meaning of Sections 11.05(a) and 11.05(b).

(e)           If
the Company shall, by dividend or otherwise, distribute to all holders of its
Common Stock cash (excluding (i) any dividend or distribution in connection
with the liquidation, dissolution or winding up of the Company, whether
voluntary or involuntary, (ii) any quarterly cash dividend on its Common Stock
to the extent that the aggregate amount of cash distributions per share of
Common Stock in any quarter does not exceed $0.71 (the “Dividend Threshold Amount”) and (iii) any
dividends and distributions in connection with a reclassification,
consolidation, merger, combination or sale or conveyance to which Section 11.06
applies), then, in such case, the Conversion Rate shall be increased so that
the same shall equal the rate determined by multiplying the Conversion Rate in
effect immediately prior to 5:00 p.m., New York City time, on such record date
by a fraction,

(i)    the numerator of which shall be the Current
Market Price on such record date less the Dividend Threshold Amount (as such
Dividend Threshold Amount may be adjusted pursuant to this Section 11.05(e));
and

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

Such
adjustment shall be effective immediately prior to 9:00 a.m., New York City
time, on the day immediately following the record date; provided that if the portion of the cash
so distributed applicable to one share of Common Stock is equal to or greater
than the Current Market Price on the record date, in lieu of the foregoing
adjustment, adequate provision shall be made so that each holder of Notes shall
have the right to receive upon conversion the amount of cash such holder would
have received had such holder converted Notes on the record date (assuming
conversion solely into shares of Common Stock). 
To the extent that not all of such dividend or distribution is made, the
Conversion Rate shall be readjusted to the Conversion Rate that would then be
in effect had the adjustment made been made on the basis of only the dividend
or distribution actually made.  If none
of such dividend or distribution is so paid or made, the Conversion Rate shall
again be adjusted to be the Conversion Rate that would then be in effect if
such dividend or distribution had not been declared. If an adjustment is
required to be made as set forth in this Section 11.05(e) as a result of a
distribution that is not a quarterly dividend, the Dividend Threshold Amount
shall be deemed to be zero for purposes of calculating the adjustment to the
Conversion Rate under this Section 11.05(e). 
The Dividend Threshold Amount shall be adjusted inversely proportional
to the adjustments to the Conversion Rate made pursuant to Sections 11.05(a),
(b), (c), (d), (f) and (g).

(f)            If
a tender or exchange offer made by the Company or any Subsidiary for all or any
portion of the Common Stock shall require the payment (other than payments made
under an “odd-lot” 

 57
 

stock sale program) 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, exceeds the Closing Sale
Price of a share of Common Stock on the Trading Day next succeeding the
Expiration Time, the Conversion Rate shall be increased so that the same shall
equal the rate determined by multiplying the Conversion Rate in effect
immediately prior to the Expiration Time by a fraction,

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

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

Such
adjustment shall become effective immediately prior to 9:00 a.m., New York City
time, on the day immediately following the Expiration Time.  In the event that the Company or any such
Subsidiary, as the case may be, is obligated to purchase shares pursuant to any
such tender or exchange offer, but the Company or any such Subsidiary, as the case
may be, is permanently prevented by applicable law from effecting any such
purchases or all such purchases are rescinded, the Conversion Rate shall again
be adjusted to be the Conversion Rate that would then be in effect if such
tender or exchange offer had not been made.

(g)           If
the Company pays a dividend or makes a distribution to all or substantially all
holders of Common Stock consisting of Capital Stock of, or similar equity
interests in, a Subsidiary or other business unit of the Company, unless the
Company distributes such Capital Stock or equity interests to holders of the
Notes in such distribution on the same basis as they would have received had
such holders converted their Notes into shares of Common Stock immediately
prior to such distributions, the Conversion Rate shall be increased so that the
same shall be equal to the rate determined by multiplying the Conversion Rate
in effect on the record date with respect to such distribution by a fraction,

(i)    the numerator of which shall be the sum of
(A) the average of the Closing Sale Prices of the Common Stock for the ten
Trading Days commencing on and including the fifth Trading Day after the date
on which “ex-dividend trading” commences for such dividend or distribution on
The New York Stock Exchange or such other national or regional exchange or
market on which such securities are then listed or quoted (the “Ex-Dividend Date”) plus (B) the Fair Market
Value of the securities distributed in respect of each share of Common Stock,
which shall equal the number of securities distributed in respect of each share
of Common Stock multiplied by the average of the Closing Sale Prices of those
distributed securities for the ten Trading Days commencing on and including the
fifth Trading Day after the Ex-Dividend Date; and

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

 

 58

Such
adjustment shall become effective immediately prior to 9:00 a.m., New York City
time, on the day immediately following the 15th Trading Day after the
Ex-Dividend Date.

(h)           To
the fullest extent permitted by applicable law, the Company from time to time
may increase the Conversion Rate by any amount for any period of time if the
period is at least 20 Business Days and the increase is irrevocable during the
period and the Board of Directors determines in good faith that such increase
would be in the best interests of the Company, which determination shall be
conclusive.  Whenever the Conversion Rate
is increased pursuant to the preceding sentence, the Company shall mail to each
holder of the Notes at the address of such holder as it appears in the stock register
a notice of the increase at least 15 days prior to the date the increased
Conversion Rate takes effect, and such notice shall state the increased
Conversion Rate and the period during which it will be in effect.

(i)            No
adjustment need be made, except as set forth in this Section 11.05, for any
issuance of Common Stock or securities convertible, exercisable or exchangeable
into Common Stock.  Interest will not
accrue on any cash into which the Notes may be convertible.

(j)            No
adjustment in the Conversion Rate need be made: 
(a) upon the issuance of Common Stock under any present or future
employee benefits plan or program of the Company or in connection with an
acquisition made by the Company; (b) upon the issuance of Common Stock pursuant
to (i) the exercise of any options, warrants or rights to purchase such Common
Stock, (ii) the exchange of any exchangeable securities for such Common Stock
or (iii) the conversion of any convertible securities into such Common Stock
(except as expressly set forth herein); or (c) for a change in the par value or
a change to no par value of the Common Stock.

(k)           If,
as a result of an adjustment made pursuant to Section 11.05(a) through (g)
above, the holder of any Note thereafter surrendered for conversion shall
become entitled to receive any shares of Capital Stock of the Company other
than shares of Common Stock, thereafter the Conversion Rate of such other
shares so receivable upon conversion of any Notes shall be subject to
adjustment from time to time in a manner and on terms as nearly equivalent as
practicable to the provisions with respect to Common Stock contained in this
Article XI.

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

(m)          For
purposes of this Section 11.05, the number of shares of Common Stock at any
time outstanding shall not include shares held in the treasury of the Company,
unless such treasury shares participate in any distribution or dividend that
requires an adjustment pursuant to this Section 11.05, but shall include shares
issuable in respect of scrip certificates issued in lieu of fractions of shares
of Common Stock.

(n)           For
purposes of this Section 11.05, “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 

 59
 

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).

Section 11.06                          Effect of Reclassification, Consolidation, Merger or
Sale on Conversion Privilege.

(a)           If
any of the following events occur (including as a result of a Fundamental
Change), namely (i) any reclassification or change of the outstanding shares of
Common Stock (other than a subdivision or combination to which Section 11.05(c)
applies), (ii) any consolidation, merger or combination of the Company with
another Person as a result of which holders of Common Stock shall be entitled
to receive stock, other securities or other property or assets (including cash)
with respect to or in exchange for such Common Stock, or (iii) any sale or
conveyance of all or substantially all of the properties and assets of the
Company to any other Person as a result of which holders of Common Stock shall
be entitled to receive stock, other securities or other property or assets
(including cash) with respect to or in exchange for such Common Stock, then
each Note outstanding immediately prior to such transaction shall be, and the
Company or the successor or purchasing Person, as the case may be, shall execute
with the Trustee a supplemental indenture (which shall comply with the TIA as
in force at the date of execution of such supplemental indenture) providing
that each such Note shall be, convertible into the kind and amount of shares of
stock, other securities or other property or assets (including cash), and in
the same proportion, receivable upon such reclassification, change,
consolidation, merger, combination, sale or conveyance by a holder of a number
of shares of Common Stock issuable upon conversion of such Note (assuming
conversion solely into shares of Common Stock and assuming, for such purposes,
a sufficient number of authorized shares of Common Stock would have been
available to convert all such Notes) immediately prior to such
reclassification, change, consolidation, merger, combination, sale or
conveyance, subject to the Company’s (or the successor’s) right to deliver
cash, shares of Common Stock or a combination of cash or Common Stock, as
described under Section 11.12.  In the
event holders of Common Stock have the opportunity to elect the form of
consideration to be received in such reclassification, change, consolidation,
merger, combination, sale or conveyance, the Company shall make adequate
provision whereby the holders of the Notes shall have the opportunity, on a
timely basis, to determine the form of consideration into which all of the
Notes, treated as a single class, shall be convertible.  Such determination shall be based on the
blended, weighted average of elections made by holders of the Notes who
participate in such determination and shall be subject to any limitations to
which all of the holders of the Common Stock are subject, such as pro rata
reductions applicable to any portion of the consideration payable.

Such supplemental
indenture shall provide for provisions and adjustments which shall be as nearly
equivalent as may be practicable to the provisions and adjustments provided for
in this Article XI and Article III and the definition of Fundamental Change, as
appropriate, as determined in good faith by the Company (which determination
shall be conclusive and binding), to make such provisions apply to such other
Person if different from the original issuer of the Notes.

(b)           Any
issuer of securities included in the consideration referred to in Section
11.06(a) shall execute an amendment to the Registration Rights Agreement (to
the extent any Registrable Securities (as defined therein) remain outstanding)
to make the provisions thereof applicable to such securities.

(c)           The
Company shall cause notice of the application of this Section 11.06 and the
execution of any supplemental indenture required by this Section 11.06 to be
delivered to each holder of the Notes at the address of such holder as it
appears in the Note Register within 20 days after the execution thereof and
shall issue a press release containing such information and publish such
information on its web site.  Failure to
deliver such notice shall not affect the legality or validity of any conversion
right pursuant to this Section 11.06 or of the supplemental indenture.

 60
 

(d)           The
above provisions of this Section 11.06 shall similarly apply to successive
reclassifications, changes, consolidations, mergers, combinations, sales and
conveyances, and the provisions of Section 11.05 shall apply to any shares of
Capital Stock received by the holders of Common Stock in any such
reclassification, change, consolidation, merger, combination, sale or
conveyance.  In addition, if this Section
11.06 applies to any event or occurrence, Section 11.05 shall not apply to such
event or occurrence.

Section 11.07                          Additional Shares Upon the Occurrence of a
Fundamental Change.

(a)           Subject
to the provisions hereof, if a holder elects to convert its Notes pursuant to
Section 11.01(a)(v) in connection with a Fundamental Change that occurs on or
prior to the Stated Maturity, the Company will increase the applicable
Conversion Rate for Notes so surrendered for conversion at any time during the
period that is 15 days prior to the date announced by the Company as the
anticipated effective date for the Fundamental Change and until and including
the date that is 15 days after the Effective Date such that the holder will be
entitled to receive, in addition to the Settlement Amount it is entitled to
receive pursuant to Section 11.12, a number of shares of Common Stock as set
forth in Section 11.07(b) (the “Additional
Shares”), subject to the Company’s right to settle all or a portion of
its conversion obligations in cash in accordance with Section 11.12.

(b)           The
number of Additional Shares will be determined by reference to the table
attached as Schedule A hereto and is based on the date on which the Fundamental
Change becomes effective (the “Effective
Date”) and the stock price calculated as follows (the “Stock Price”):  if holders of the Common Stock receive only
cash in the transaction constituting the Fundamental Change, the Stock Price
will equal the cash amount paid per share; otherwise, the Stock Price will
equal the average of the Closing Sale Price of the Common Stock over the five
Trading Days prior to but not including the Effective Date.  No Additional Shares will be issuable until
consummation of the Fundamental Change transaction.

(c)           The
Stock Prices set forth in the first row of the table attached as Schedule A
hereto (i.e. column headers) shall be adjusted as of any date on which the
Conversion Rate is adjusted pursuant to Section 11.05 (and other than any
increase to the Conversion Rate for a Fundamental Change as set forth in this
Section 11.07).  The adjusted Stock
Prices will equal the Stock Prices applicable immediately prior to such
adjustment, multiplied by a fraction, (i) the numerator of which is the
Conversion Rate immediately prior to the adjustment giving rise to the Stock
Price adjustment and (ii) the denominator of which is the Conversion Rate as so
adjusted.

If the conversion
date is after the effective date for the Fundamental Change and on or prior to
the date that is 15 days after the effective date for the Fundamental Change,
the Conversion Rate will be based on the applicable Conversion Rate, increased
to include the Additional Shares, determined by reference to the Stock Price as
described above.  If a holder surrenders
notes for conversion after the effective date of the Fundamental Change, the
Conversion Rate will be determined by the Company based on the kind and amount
of cash, securities and other assets or property that a holder of a number of
shares of Common Stock into which such Notes were convertible at the then
applicable Conversion Rate (assuming conversion solely into shares of Common
Stock) would have owned or been entitled to receive in such Fundamental Change.

(d)           The
number of Additional Shares will be adjusted in the same manner and for the
same events as the Conversion Rate is adjusted pursuant to Section 11.05.

(e)           If
the exact Stock Price and Effective Date are not set forth in the table
attached as Schedule A hereto, then:

 61
 

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

(ii)   If the Stock Price is in excess of $175.00
per share, subject to adjustment, no Additional Shares shall be issued upon
conversion.

(iii)  If the Stock Price is less than $92.90 per
share, subject to adjustment, no Additional Shares shall be issued upon
conversion.

(f)            Notwithstanding
the foregoing, in no event will the Conversion Rate exceed 10.7643 shares of
Common Stock per $1,000 principal amount of Notes, subject to adjustment in the
same manner and for the same events as the Conversion Rate may be adjusted
pursuant to Section 11.05.

Section 11.08                          Rights Issued in Respect of Common Stock Issued Upon
Conversion.

Each share of Common Stock issued upon
conversion of the Notes shall be entitled to receive the appropriate number of
Common Stock or preferred stock purchase rights, as the case may be, including
without limitation, the rights under any Rights Plan (defined below)
(collectively, the “Rights”), if
any, that shares of Common Stock are entitled to receive thereunder, and the
certificates representing the Common Stock issued upon such conversion shall
bear such legends, if any, in each case as may be provided by the terms of the
Agreement, dated as of November 10, 1998, between the Company and Computershare
Investor Services, as successor to Equiserve Trust Company, N.A., as successor
to First Chicago Trust Company of New York, as Rights Agent, or any future
stockholder rights agreement adopted by the Company, as each may be amended
from time to time (in each case, a “Rights
Plan”).  If such Rights Plan
requires that each share of Common Stock issued upon conversion of the Notes at
any time prior to the distribution of separate certificates representing the
Rights be entitled to receive such Rights, then, notwithstanding anything else
to the contrary in this Indenture, there shall not be any adjustment to the
conversion privilege or Conversion Rate as a result of the issuance of Rights,
but an adjustment to the Conversion Rate shall be made pursuant to Section
11.05(d) upon the separation of the Rights from the Common Stock (provided that no adjustment to the Conversion Rate shall be
made pursuant to Section 11.05(d) upon such separation if at the time of
separation the Company sets aside for issuance upon conversion of the Notes a
number of Rights equal to and with the same terms as the Rights the holders of
Notes would have received if the conversion (assuming conversion solely into
shares of Common Stock) had occurred immediately prior such separation) subject
to readjustment in the event of the expiration, termination or redemption of
such Rights.

Section 11.09                          Notice Of Certain Transactions.

In case:

(a)           the
Company shall declare a dividend (or any other distribution) on the Common
Stock; or

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

 62
 

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

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

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

Section 11.10                          Taxes on Shares Issued.

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

Section
11.11                          Reservation of Shares, Shares to be Fully Paid;
Compliance with Governmental Requirements; Listing of Common Stock.

The Company shall provide, free from
preemptive rights, out of its authorized but unissued shares or shares held in
treasury, sufficient shares of Common Stock to provide for the conversion of
the Notes as required by this Indenture from time to time as such Notes are
presented for conversion.

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

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

The Company further covenants that, if at any
time the Common Stock shall be listed on The New York Stock Exchange or any
other national securities exchange or automated quotation system, the 

 63
 

Company will, if permitted
by the rules of such exchange or automated quotation system, list and keep
listed, so long as the Common Stock shall be so listed on such exchange or
automated quotation system, all Common Stock issuable upon conversion of the
Notes; provided that if the rules of such
exchange or automated quotation system permit the Company to defer the listing
of such Common Stock until the first conversion of the Notes in accordance with
the provisions of this Indenture, the Company covenants to list such Common
Stock issuable upon conversion of the Notes in accordance with the requirements
of such exchange or automated quotation system at such time.

Section 11.12                          Settlement Upon Conversion.

(a)           The
Company shall settle its conversion obligations as described in Section
11.12(c), unless, within the applicable time period specified in Section
11.12(b), the Company elects to settle its conversion obligations as described
in Section 11.12(d) or Section 11.12(e). 
The cash and/or shares of Common Stock which the Company is required to
deliver in accordance with this Section 11.12 in settlement of its conversion
obligations is referred to herein as the “Settlement Amount.”

(b)           If
the Company desires to settle its conversion obligations as described in
Section 11.12(d) or 11.12(e), the Company shall notify each converting holder
through the Trustee of the method the Company will choose to satisfy its
Conversion Obligations no later than the second Trading Day immediately
following the Company’s receipt of a Notice of Conversion from such holder, and
such notice shall specify the section of this Indenture pursuant to which the
Company is electing to satisfy its conversion obligations; provided,
however, that the Company shall have the
right to irrevocably elect, in its sole discretion and without the consent of
the holders of the Notes, by notice to the holders of the Notes through the
Trustee, on or prior to December 15, 2011, to settle all of its future
conversion obligations entirely in shares of Common Stock as described in
Section 11.12(e) (which notice shall specifically reference such section); and,
provided further, that the Company is
required to settle all conversions with a Conversion Date occurring on or after
December 15, 2011 in the same manner, and the Company shall notify holders
through the Trustee of the manner of settlement (including specifying the
applicable section of this Indenture that describes such manner of settlement)
on or before such date.  The Company
shall treat all holders converting on the same Trading Day in the same manner; however, the Company shall not have any obligation to settle
Conversion Obligations arising on different Trading Days in the same manner,
except for conversions with a Conversion Date occurring on or after
December 15, 2011, which shall all be satisfied in the same manner.

(c)           If
the Company does not elect, within the applicable time periods specified in
Section 11.12(b), to settle its conversion obligations as described in
Section 11.12(d) or 11.12(e), the Company shall settle its conversion
obligations as described in this Section 11.12(c).  The Company shall deliver in respect of each
$1,000 principal amount of Notes being converted a Settlement Amount equal to
the sum of the Daily Settlement Amounts for each of the 40 consecutive Trading
Days during the Cash Settlement Averaging Period, on the third Trading Day
immediately following the last day of the related Cash Settlement Averaging
Period.

For purposes of this Section 11.12(c), the
following terms have the following respective meanings:

(i)    “Cash Settlement Averaging Period” with
respect to any Note means:  (i) prior to
December 15, 2011, the 40 consecutive Trading Day period beginning on and
including the third Trading Day after the Conversion Date; (ii) with respect to
any Notice of Conversion received after the date of issuance of a notice of
redemption pursuant to Section 3.02, the 40 consecutive Trading Day period
beginning on and including the 42nd Scheduled Trading Day prior to the
applicable Redemption Date; and (iii) on or after December 15, 2011, the 40
consecutive Trading 

 64
 

Days beginning on and including the
42nd Scheduled Trading Day immediately preceding the Stated Maturity.

(ii)           “Daily Settlement Amount” for each of
the 40 Trading Days during the Cash Settlement Averaging Period, shall consist
of:

(A)              cash equal to the lesser of (1)
$25 (the “Daily Measurement Value”) and (2) the Daily Conversion Value relating
to such Trading Day; and

(B)               to the extent the Daily
Conversion Value exceeds the Daily Measurement Value, a number of shares of
Common Stock equal to (1) the difference between such Daily Conversion Value
and the Daily Measurement Value (such difference being referred to as the “Daily
Excess Amount”) divided by (2) the Daily VWAP of the Common Stock for such
Trading Day,

in each case, subject to the Company’s right to deliver cash in lieu of
all or a portion of such shares pursuant to Section 11.12(d).

(iii)          “Daily Conversion Value” means, for
each of the 40 consecutive Trading Days during the Cash Settlement Averaging
Period, one-fortieth (1⁄40) of the product of (1) the applicable
Conversion Rate and (2) the Daily VWAP of the Common Stock on such Trading Day.

(iv)          “Daily VWAP”‘ for the Common Stock
means, for each of the 40 consecutive Trading Days during the Cash Settlement
Averaging Period, the per share volume-weighted average price on the New York
Stock Exchange as displayed under the heading ‘‘Bloomberg VWAP’’ on Bloomberg
page “MAC.N <equity> AQR” (or its equivalent successor if such page is
not available) in respect of the period from scheduled open of trading until
the scheduled close of trading of the primary trading session on such Trading
Day (or if such volume-weighted average price is unavailable, the market value
of one share of the Common Stock on such Trading Day determined by the Board of
Directors in a commercially reasonable manner in consultation with a nationally
recognized independent investment banking firm, using a volume-weighted
method).  The daily VWAP will be
determined without regard to after hours trading or any other trading outside
of the regular trading session hours.

(v)           “Scheduled Trading Day” means a day
that is scheduled to be a Trading Day.

(d)           If
the Company has elected, within the applicable time periods specified in
Section 11.12(b), to settle its conversion obligations as described in this
Section 11.12(d), Company shall have the right to settle all or a portion of
the Daily Excess Amount in cash in accordance with this Section 11.12(d).  In such case, the Company shall specify a
percentage of the Daily Excess Amount that will be settled in cash (the “Cash
Percentage”), and shall notify each converting holder of the Cash Percentage in
accordance with Section 11.12(b).  If the
Company elects to specify a Cash Percentage, the amount of cash that the
Company shall deliver in respect of each Trading Day in the applicable Cash
Settlement Averaging Period shall equal the product of (1) the Cash Percentage
and (2) the Daily Excess Amount for such Trading Day. The number of shares of
Common Stock deliverable in respect of each Trading Day in the applicable Cash Settlement
Averaging Period shall equal (i) the product of (a) 100% minus the Cash
Percentage and (b) the Daily Excess Amount for such Trading Day, divided by
(ii) the Daily VWAP of the Common Stock for such Trading Day. If the Company
does not specify a Cash Percentage within the applicable time periods set forth
in Section 11.12(b), the Company must settle the entire Daily Excess Amount for
each Trading Day in the applicable Cash Settlement Averaging Period with shares
of Common Stock in accordance with Section 11.12(c); provided,
however, that in accordance with Section

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11.03, the Company will deliver cash in lieu of any
fractional shares of Common Stock issuable in connection with payment of the
settlement amount as described above.

(e)           If
the Company has elected, within the applicable time periods specified in
Section 11.12(b), to settle its conversion obligations as described in this
Section 11.12(e), the Company shall have the right to settle its conversion
obligations entirely in shares of Common Stock (and cash in lieu of fractional
shares in accordance with Section 11.03). 
If the Company elects to satisfy its conversion obligations entirely in
shares of Common Stock, the Company shall deliver to the converting holder a
number of shares equal to (i) the aggregate principal amount of Notes to be
converted divided by $1,000, multiplied by (ii) the applicable Conversion
Rate.  The Company shall deliver such
shares as soon as practicable after the Company has informed the converting
holder that it has elected to satisfy its conversion obligations entirely in
shares of Common Stock in accordance with this Section 11.12(e).

(f)            For
the avoidance of doubt, for purposes of this Section 11.12, the applicable
Conversion Rate will reflect any increases for any Additional Shares to which
holders of Notes are entitled pursuant to Section 11.07.

Section 11.13                          Trustee’s Disclaimer.

The Trustee has no duty to determine when an
adjustment under this Article XI should be made, how it should be made or what
such adjustment should be made, but may accept as conclusive evidence of the
correctness of any such adjustment, and shall be fully protected in relying
upon, the Officers’ Certificate with respect thereto which the Company is
obligated to file with the Trustee pursuant to Section 11.05(l).  The Trustee shall not be accountable for and
makes no representation as to the validity or value of any securities or assets
issued upon conversion of Notes, and the Trustee shall not be responsible for
the Company’s failure to comply with any provisions of this Article XI.  Each Conversion Agent (other than the Company
or an Affiliate of the Company) shall have the same protection under this
Section 11.13 as the Trustee.

The Trustee shall not be under any
responsibility to determine the correctness of any provisions contained in any
supplemental indenture executed pursuant to Section 11.06, but may accept as
conclusive evidence of the correctness thereof, and shall be protected in
relying upon, the Officers’ Certificate with respect thereto which the Company
is obligated to file with the Trustee pursuant to Section 11.06.

Section 11.14                          Ownership Limit.

Notwithstanding any other provision of the
Notes, no holder of Notes shall be entitled, unless agreed to by the Board of
Directors, to convert such Notes for shares of Common Stock to the extent that
receipt of such shares would cause such holder (together with such holder’s
affiliates) to exceed the ownership limits as determined in accordance with the
Charter.

ARTICLE
XII

GUARANTEE

Section 12.01                          Guarantee.

By its execution hereof, the Guarantor
acknowledges and agrees that it receives substantial benefits from the Company
and that the Guarantor is providing its Guarantee for good and valuable
consideration, including, without limitation, such substantial benefits.  Accordingly, subject to the provisions of
this Article XII, the Guarantor hereby unconditionally guarantees to each
holder of a Note 

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authenticated and delivered
by the Trustee and its successors and assigns that:  (i) the principal of, premium, if any, and
interest, Liquidated Damages, if any, and Additional Interest, if any, on the
Notes shall be duly and punctually paid in full when due, whether at maturity,
by acceleration, call for redemption, upon repurchase due to a Fundamental
Change or otherwise, and interest on overdue principal, premium, if any,
Liquidated Damages, if any, Additional Interest, if any, and (to the extent
permitted by law) interest on any interest, if any, on the Notes and all other
obligations of the Company to the holders or the Trustee hereunder or under the
Notes (including fees, expenses or other) shall be promptly paid in full or
performed, all in accordance with the terms hereof; and (ii) in case of any
extension of time of payment or renewal of any Notes or any of such other
obligations, the same shall be promptly paid in full when due or performed in
accordance with the terms of the extension or renewal, whether at Stated
Maturity, by acceleration, call for redemption, upon repurchase due to a
Fundamental Change or otherwise, subject, however, in the case of clauses (i)
and (ii) above, to the limitations set forth in Section 12.04 (collectively,
the “Guarantee Obligations”).

Subject to the provisions of this Article
XII, the Guarantor hereby agrees that its Guarantee hereunder shall be
unconditional, irrespective of the validity, regularity or enforceability of
the Notes or this Indenture, the absence of any action to enforce the same, any
waiver or consent by any holder of the Notes with respect to any thereof, the
entry of any judgment against the Company, any action to enforce the same or
any other circumstance which might otherwise constitute a legal or equitable
discharge or defense of the Guarantor. 
The Guarantor hereby waives and relinquishes, to the fullest extent
permitted by applicable law:  (a) any
right to require the Trustee, the holders or the Company (each, a “Benefited
Party”) to proceed against the Company or any other Person or to proceed
against or exhaust any security held by a Benefited Party at any time or to
pursue any other remedy in any secured party’s power before proceeding against
the Guarantor; (b) any defense that may arise by reason of the incapacity, lack
of authority, death or disability of any other Person or Persons or the failure
of a Benefited Party to file or enforce a claim against the estate (in
administration, bankruptcy or any other proceeding) of any other Person or
Persons; (c) demand, protest and notice of any kind (except as expressly
required by this Indenture), including but not limited to notice of the
existence, creation or incurring of any new or additional indebtedness or
obligation or of any action or non-action on the part of the Guarantor, the
Company, any Benefited Party, any creditor of the Guarantor or the Company or
on the part of any other Person whomsoever in connection with any obligations
the performance of which are hereby guaranteed; (d) any defense based upon an
election of remedies by a Benefited Party, including but not limited to an
election to proceed against the Guarantor for reimbursement; (e) any defense
based upon any statute or rule of law which provides that the obligation of a
surety must be neither larger in amount nor in other respects more burdensome
than that of the principal; (f) any defense arising because of a Benefited Party’s
election, in any proceeding instituted under the Bankruptcy Law, of the
application of Section 1111(b)(2) of the Bankruptcy Law; and (g) any defense
based on any borrowing or grant of a security interest under Section 364 of the
Bankruptcy Law.  The Guarantor hereby
covenants that, except as otherwise provided therein, the Guarantee shall not
be discharged except by payment in full of all Guarantee Obligations, including
the principal, premium, if any, and interest (including Liquidated Damages, if any,
and Additional Interest, if any) on the Notes and all other costs provided for
under this Indenture or as provided in Article VII.

If any holder or the Trustee is required by
any court or otherwise to return to either the Company or the Guarantor, or any
trustee or similar official acting in relation to either the Company or the
Guarantor, any amount paid by the Company or the Guarantor to the Trustee or
such holder, the Guarantee, to the extent theretofore discharged, shall be
reinstated in full force and effect.  The
Guarantor agrees that it shall not be entitled to any right of subrogation in
relation to the Holders in respect of any Guarantee Obligations hereby until
payment in full of all such obligations guaranteed hereby.  The Guarantor agrees that, as between it, on
the one hand, and the holders of Notes and the Trustee, on the other hand, to
the fullest extent permitted by applicable law, (x) the maturity of the
obligations guaranteed 

 67
 

hereby may be accelerated as
provided in Article VI for the purposes hereof, notwithstanding any stay,
injunction or other prohibition preventing such acceleration in respect of the
Guarantee Obligations, and (y) in the event of any acceleration of such
obligations as provided in Article VI, such Guarantee Obligations (whether or
not due and payable) shall forthwith become due and payable by the Guarantor
for the purpose of the Guarantee.

Section 12.02                          Execution and Delivery of Guarantee.

To evidence the Guarantee set forth in
Section 12.01, the Guarantor agrees that a notation of the Guarantee
substantially in the form included in Exhibit A hereto shall be endorsed
on each Note authenticated and delivered by the Trustee and that this Indenture
shall be executed on behalf of the Guarantor by an officer of the Guarantor.

The Guarantor agrees that the Guarantee set
forth in this Article XII shall remain in full force and effect and apply to
all the Notes notwithstanding any failure to endorse on each Note a notation of
the Guarantee.

If an officer whose facsimile signature is on
a Note or a notation of Guarantee no longer holds that office at the time the
Trustee authenticates the Note on which the Guarantee is endorsed, the
Guarantee shall be valid nevertheless.

The delivery of any Note by the Trustee,
after the authentication thereof hereunder, shall constitute due delivery of
the Guarantee set forth in this Indenture on behalf of the Guarantor.

Section 12.03                          Consolidation, Merger or Transfer of Assets.

The Guarantor shall not consolidate with or
merge with or into any other Person or sell, lease exchange or otherwise
transfer (in one transaction or a series of related transactions) all or
substantially all of its properties and assets to any other Person, unless:

(a)          
(i) the Guarantor shall be the resulting or surviving corporation or (ii) the
Person (if other than the Guarantor) formed by such consolidation or into which
the Guarantor is merged or the Person which acquires by sale, lease, exchange
or other transfer all or substantially all of the properties and assets of the
Guarantor (A) shall be an entity organized and validly existing under the laws
of the United States or any State thereof or the District of Columbia, and (B)
shall expressly assume, by means of a supplemental indenture, executed and
delivered to the Trustee, in form satisfactory to the Trustee, all of the
obligations of the Guarantor under the Notes, the Guarantee and this Indenture;

(b)           immediately
after giving effect to such transaction, no Default or Event of Default shall
have occurred and be continuing; and

(c)           the
Guarantor shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that such consolidation, merger, sale, lease,
exchange or other transfer and, if a supplemental indenture is required in connection
with such transaction, such supplemental indenture, comply with this Section
12.03 and that all conditions precedent herein provided for relating to such
transaction have been satisfied.

The successor Person formed by such
consolidation or into which the Guarantor is merged or the successor Person to
which such sale, lease, exchange or other transfer is made shall succeed to,
and (except in the case of a lease) be substituted for, and may exercise every
right and power of, the Guarantor under this Indenture with the same effect as
if such successor had been named as the Guarantor 

 68
 

herein; and thereafter,
except in the case of a lease of all or substantially all of the Guarantor’s
properties and assets, the Guarantor shall be discharged from all obligations
and covenants under this Indenture and the Notes.  Subject to Section 10.06, the Guarantor, the
Trustee and the successor Person shall enter into a supplemental indenture to
evidence the succession and substitution of such successor Person and such
discharge and release of the Guarantor, as applicable.

Section 12.04                          Limitation of Guarantor’s Liability; Certain
Bankruptcy Events; Termination on Conversion.

(a)           The
Guarantor, and by its acceptance hereof each holder, hereby confirms that it is
the intention of all such parties that the Guarantee Obligations of the
Guarantor pursuant to its Guarantee not constitute a fraudulent transfer or
conveyance for purposes of any Bankruptcy Law, the Uniform Fraudulent
Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or
state law.  To effectuate the foregoing
intention, the holders and the Guarantor hereby irrevocably agree that the
Guarantee Obligations of the Guarantor under this Article XII shall be limited
to the maximum amount as shall, after giving effect to all other contingent and
fixed liabilities of the Guarantor, result in the Guarantee Obligations of the
Guarantor under the Guarantee not constituting a fraudulent transfer or
conveyance.

(b)           The
Guarantor hereby covenants and agrees, to the fullest extent that it may do so
under applicable law, that in the event of the insolvency, bankruptcy,
dissolution, liquidation or reorganization of the Company, the Guarantor shall
not file (or join in any filing of), or otherwise seek to participate in the
filing of, any motion or request seeking to stay or to prohibit (even
temporarily) execution on the Guarantee and hereby waives and agrees not to
take the benefit of any such stay of execution, whether under Section 362 or
105 of the Bankruptcy Law or otherwise.

(c)           The
Guarantor shall be deemed released from all its obligations under this
Indenture and the Guarantee and the Guarantee shall terminate upon the
discharge of the Notes pursuant to the provisions of Article IX.  The Guarantee will automatically terminate in
connection with the conversion of a Note.

Section 12.05                          Application of Certain Terms and Provisions of the
Guarantor

(a)           For
purposes of any provision of this Indenture which provides for the delivery by
the Guarantor of an Officers’ Certificate and/or an Opinion of Counsel, the
definitions of such terms in Section 1.01 hereof shall apply to the Guarantor
as if references therein to the Company were references to the Guarantor.

(b)           Any
request, direction, order or demand which by any provision of this Indenture is
to be made by the Guarantor, shall be sufficient if evidenced as described in
Section 13.02 as if references therein to the Company were references to the
Guarantor.

(c)           Any
notice or demand which by any provision of this Indenture is required or
permitted to be given or served by the Trustee or by the holders of Notes to or
on the Guarantor may be given or served as described in Section 13.02 as if
references therein to the Company were references to the Guarantor.

(d)           Upon
any demand, request or application by the Guarantor to the Trustee to take any
action under this Indenture, the Guarantor shall furnish to the Trustee such
certificates and opinions as are required in Section 13.04 as if all references
therein to the Company were references to the Guarantor.

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ARTICLE
XIII

MISCELLANEOUS

Section 13.01                          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 13.02                          Notices.

Any request, demand, authorization, notice,
waiver, consent or communication shall be in writing, in the English language
and delivered in person or mailed by first-class mail, postage prepaid,
addressed as follows, or transmitted by facsimile transmission (confirmed
verbally) to the following facsimile numbers:

if to the Company or the Guarantor, to:

The
Macerich Company

401
Wilshire Boulevard

Suite
700

Santa
Monica, CA 90401

Facsimile
No.:  (310) 451-4746

Attention: 
Chief Financial Officer

if to the Trustee, to:

Deutsche
Bank Trust Company Americas

60
Wall Street, 27th Floor

New
York, NY 10005

Facsimile
No.:  (732) 380-2345

Attention: 
Trust and Securities Services

with a copy to:

Deutsche
Bank National Trust Company

for
Deutsche Bank Trust Company Americas

25
DeForest Avenue, 2nd Floor

Summit,
NJ 07901

Facsimile
No.: (732) 578-4635

Attention: 
Trust and Securities Services

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

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

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

Section 13.03                          Communication by Holders With Other Holders.

Holders may communicate pursuant to TIA
Section 312(b) with other holders with respect to their rights under this
Indenture or the Notes.  The Company, the
Trustee, the Note Registrar, the Paying Agent, the Conversion Agent and anyone
else shall have the protection of TIA Section 312(c).

Section 13.04                          Certificate and Opinion as to Conditions Precedent.

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

(a)           an
Officers’ 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

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

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

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

Where any Person is required to make, give or
execute two or more applications, requests, consents, certificates, statements,
opinions or other instruments under this Indenture, they may, but need not, be
consolidated and form one instrument.

Section 13.05                          Statements Required in Certificate or Opinion.

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

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

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

 71
 

(c)           a
statement that, in the opinion of each such person, he 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

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

Section 13.06                          Severability Clause.

In case any provision in this Indenture or in
the Notes 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 13.07                          Rules by Trustee, Paying Agent, Conversion Agent and
Note Registrar.

The Trustee may make reasonable rules for
action by or a meeting of holders.  The
Note Registrar, the Conversion Agent and the Paying Agent may make reasonable
rules for their functions.

Section 13.08                          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 Notes, no interest (including
Liquidated Damages, if any, and Additional Interest, if any) shall accrue for
the intervening period.

Section 13.09                          Governing Law.

THIS INDENTURE AND THE NOTES SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK
APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN THE STATE OF NEW YORK,
INCLUDING, WITHOUT LIMITATION, SECTION 5-1401 OF THE NEW YORK GENERAL
OBLIGATIONS LAW.

Section 13.10                          No Recourse Against Others.

A director, officer, employee or stockholder,
as such, of the Company shall not have any liability for any Obligations of the
Company under the Notes 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.  Such
waiver and release shall be part of the consideration for the issuance of the
Notes.

Section 13.11                          Successors.

All agreements of the Company in this
Indenture and the Notes shall bind its successor.  All agreements of the Trustee in this
Indenture shall bind its successor.

Section 13.12                          Multiple Originals.

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

 72
 

Section 13.13                          Table of Contents and Headings.

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

Section
13.14                          USA Patriot Act.

The parties
hereto acknowledge that in accordance with Section 326 of the USA Patriot Act
the Trustee, like all financial institutions and in order to help fight the
funding of terrorism and money laundering, is required to obtain, verify, and
record information that identifies each person or legal entity that establishes
a relationship or opens an account with Deutsche Bank Trust Company Americas.  The parties to this Agreement agree that they
will provide the Trustee with such information as it may request in order for
the Trustee to satisfy the requirements of the USA Patriot Act.

[signature page follows]

 

 73

 

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.

	
  

  	
   

  	
  THE MACERICH COMPANY

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  By: 

  	
  /s/ Thomas E. O’Hern

  	 

	
   

  	
   

  	
   

  	
  Name:  Thomas E. O’Hern

  	 

	
   

  	
   

  	
   

  	
  Executive Vice
  President,

  	 

	
   

  	
   

  	
   

  	
  Chief Financial
  Officer and Treasurer

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  THE MACERICH PARTNERSHIP, L.P.,

  	 

	
   

  	
   

  	
  a Delaware limited parnership

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  By: 

  	
  The Macerich Company,

  
	
   

  	
   

  	
   

  	
  a Maryland
  corporation,

  
	
   

  	
   

  	
   

  	
  its general partner

  
	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  By: 

  	
  /s/ Thomas E. O’Hern

  
	
   

  	
   

  	
   

  	
  Thomas E. O’Hern

  
	
   

  	
   

  	
   

  	
  Executive Vice
  President,

  
	
   

  	
   

  	
   

  	
  Chief Financial
  Officer and Treasurer

  
	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  DEUTSCHE BANK TRUST COMPANY AMERICAS, as
  Trustee

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  By: 

  	
  /s/ Wanda Camacho

  
	
   

  	
   

  	
   

  	
  Name: Wanda
  Camacho

  
	
   

  	
   

  	
   

  	
  Title: Vice
  President

  
	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  By: 

  	
  /s/ Richard L. Buckwalter

  
	
   

  	
   

  	
   

  	
  Name:  Richard
  L. Buckwalter

  
	
   

  	
   

  	
   

  	
  Title:   Director

  

 

 

SCHEDULE A

Additional Share Table

The following table sets
forth the increase in the Conversion Rate, expressed as a number of Additional
Shares to be received per $1,000 principal amount of Notes:

	
   

  	
   

  	
  Stock Price on the Effective Date

  	
   

  
	
  Effective

  Date

  	
   

  	
  $92.90

  	
   

  	
  $95.00

  	
   

  	
  $100.00

  	
   

  	
  $105.00

  	
   

  	
  $110.00

  	
   

  	
  $115.00

  	
   

  	
  $120.00

  	
   

  	
  $125.00

  	
   

  	
  $130.00

  	
   

  	
  $135.00

  	
   

  	
  $140.00

  	
   

  	
  $150.00

  	
   

  	
  $160.00

  	
   

  	
  $175.00

  	
   

  
	
  3/12/2007

  	
   

  	
  1.7940

  	
   

  	
  1.6739

  	
   

  	
  1.3906

  	
   

  	
  1.1616

  	
   

  	
  0.9698

  	
   

  	
  0.8090

  	
   

  	
  0.6741

  	
   

  	
  0.5610

  	
   

  	
  0.4661

  	
   

  	
  0.3867

  	
   

  	
  0.3203

  	
   

  	
  0.2187

  	
   

  	
  0.1494

  	
   

  	
  0.0929

  	
   

  
	
  3/15/2008

  	
   

  	
  1.7940

  	
   

  	
  1.6684

  	
   

  	
  1.3797

  	
   

  	
  1.1394

  	
   

  	
  0.9395

  	
   

  	
  0.7733

  	
   

  	
  0.6352

  	
   

  	
  0.5206

  	
   

  	
  0.4254

  	
   

  	
  0.3467

  	
   

  	
  0.2817

  	
   

  	
  0.1842

  	
   

  	
  0.1196

  	
   

  	
  0.0712

  	
   

  
	
  3/15/2009

  	
   

  	
  1.7940

  	
   

  	
  1.6500

  	
   

  	
  1.3435

  	
   

  	
  1.0905

  	
   

  	
  0.8823

  	
   

  	
  0.7114

  	
   

  	
  0.5714

  	
   

  	
  0.4571

  	
   

  	
  0.3640

  	
   

  	
  0.2883

  	
   

  	
  0.2271

  	
   

  	
  0.1383

  	
   

  	
  0.0830

  	
   

  	
  0.0484

  	
   

  
	
  3/15/2010

  	
   

  	
  1.7940

  	
   

  	
  1.6016

  	
   

  	
  1.2706

  	
   

  	
  1.0010

  	
   

  	
  0.7831

  	
   

  	
  0.6082

  	
   

  	
  0.4687

  	
   

  	
  0.3582

  	
   

  	
  0.2712

  	
   

  	
  0.2032

  	
   

  	
  0.1503

  	
   

  	
  0.0788

  	
   

  	
  0.0413

  	
   

  	
  0.0246

  	
   

  
	
  3/15/2011

  	
   

  	
  1.7940

  	
   

  	
  1.5164

  	
   

  	
  1.1394

  	
   

  	
  0.8389

  	
   

  	
  0.6046

  	
   

  	
  0.4261

  	
   

  	
  0.2932

  	
   

  	
  0.1963

  	
   

  	
  0.1271

  	
   

  	
  0.0788

  	
   

  	
  0.0461

  	
   

  	
  0.0157

  	
   

  	
  0.0087

  	
   

  	
  0.0049

  	
   

  
	
  3/15/2012

  	
   

  	
  1.7940

  	
   

  	
  1.5567

  	
   

  	
  1.0304

  	
   

  	
  0.5541

  	
   

  	
  0.1215

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  

 

 Schedule A-1

EXHIBIT A

[FORM
OF FACE OF NOTE]

[Include only on Notes that are Restricted
Securities]

[THE SECURITY EVIDENCED BY THIS CERTIFICATE
HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT OF 1933”), OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD
EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE
HOLDER:

(1)           REPRESENTS THAT IT IS A “QUALIFIED INSTITUTIONAL BUYER” AS
DEFINED IN RULE 144A UNDER THE SECURITIES ACT OF 1933;

(2)           AGREES THAT IT WILL NOT, PRIOR TO THE DATE (THE “RESALE
RESTRICTION TERMINATION DATE”) THAT IS TWO YEARS AFTER THE LATER OF THE
ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE COMPANY OR ANY
AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF
SUCH SECURITY), RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY OR
THE COMMON STOCK ISSUABLE UPON CONVERSION OF SUCH SECURITY EXCEPT (A) TO THE
MACERICH COMPANY OR ANY SUBSIDIARY THEREOF, (B) TO A QUALIFIED INSTITUTIONAL
BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT OF 1933, (C)
PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE
SECURITIES ACT OF 1933 (IF AVAILABLE), OR (D) PURSUANT TO A REGISTRATION
STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT OF 1933 AND
WHICH CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER; AND

(3)           AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THE
SECURITY EVIDENCED HEREBY IS TRANSFERRED (OTHER THAN A TRANSFER PURSUANT TO
CLAUSE 2(C) OR 2(D) ABOVE) A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.]

[Include only on Global Notes]

[UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (THE “DEPOSITARY,”
WHICH TERM INCLUDES ANY SUCCESSOR DEPOSITARY FOR THE CERTIFICATES) TO THE
COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY
PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY) (AND ANY PAYMENT
HEREIN IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.  TRANSFERS OF THIS GLOBAL NOTE SHALL BE
LIMITED TO TRANSFERS TO NOMINEES OF THE DEPOSITARY OR TO A SUCCESSOR THEREOF OR
SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE SHALL 

 A-1
 

BE
LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE
INDENTURE REFERRED TO ON THE REVERSE HEREOF.]

 A-2
 

THE
MACERICH COMPANY

3.25%
CONVERTIBLE SENIOR NOTES DUE 2012

	
  No.:

  	
   

  	
   

  	
  CUSIP:

  	
   

  
	
  Issue Date:

  	
   

  	
   

  	
  $

  

 

The
Macerich Company, a Maryland corporation (herein called the “Company,” which term includes any successor
corporation under the Indenture referred to below), for value received hereby
promises to pay to [Cede & Co.]  or registered
assigns the principal amount of
              Dollars
($              )[, or such greater or lesser principal amount as set forth
on Schedule I hereto](1), on March
15, 2012.

Interest
Payment Dates:  March 15 and September 15, commencing
September 15, 2007.

Record
Dates:  March 1 and September 1.

(1)             Include
only on Global Note.

 A-3
 

Reference
is made to the further provisions of this Note on the reverse side, which
shall, for all purposes, have the same effect as if set forth at this place.

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

	
  

  	
  THE MACERICH COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 A-4
 

TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

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

	
  

  	
  DEUTSCHE BANK TRUST COMPANY AMERICAS

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

Dated:                               

 A-5
 

[FORM
OF REVERSE SIDE OF NOTE]

THE
MACERICH COMPANY

3.25%
CONVERTIBLE SENIOR NOTES DUE 2012

Capitalized terms used
herein shall have the meanings assigned to them in the Indenture referred to
below unless otherwise indicated.

(1)           Interest.

The Macerich Company, a
Maryland corporation (herein called the “Company,”
which term includes any successors or assigns under the Indenture referred to
below), promises to pay interest on the principal amount of this Note at the
rate of 3.25% per annum until payment of such principal amount has been made or
duly provided for.   The Company shall
pay interest (including Liquidated Damages, if any, and Additional Interest, if
any), semi-annually on March 15 and September 15 of each year (each an “Interest Payment Date”), commencing
September 15, 2007; provided,
that if any Interest Payment Date is not a Business Day, then interest
(including Liquidated Damages, if any, and Additional Interest, if any) shall
be payable on the next succeeding Business Day. 
Interest on the Notes shall accrue from the most recent date to which
interest has been paid or, if no interest has been paid, from the Issue Date.

The Company shall pay interest
on any overdue amount at the interest rate borne by the Notes at the time such
interest on the overdue principal amount accrues, compounded semi-annually, and
shall pay interest on overdue installments of interest (including Liquidated
Damages, if any, and Additional Interest, if any) (without regard to any
applicable grace period), at the same interest rate, compounded
semi-annually.  Interest (including
Liquidated Damages, if any, and Additional Interest, if any) on the Notes will
be computed on the basis of a 360-day year comprised of twelve 30-day months.

(2)           Method of Payment.

Except as otherwise provided
in the Indenture, the interest (including Liquidated Damages, if any, and
Additional Interest, if any) payable on this Note pursuant to the Indenture on
any Interest Payment Date shall be paid to the Person in whose name this Note
is registered on the Note Register at 5:00 p.m., New York City time, on the
March 1 or September 1 next preceding such Interest Payment Date (each a “Record Date”).  Subject to the terms and conditions of the
Indenture, the Company will make all payments and deliveries in respect of the
Redemption Price, Fundamental Change Repurchase Price and the principal amount
at Stated Maturity, as the case may be, to the holder who surrenders this Note
to a Paying Agent to collect such payments in respect of this Note.  The Company will pay 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, the Company
may pay interest (including Liquidated Damages, if any, and Additional
Interest, if any), the Redemption Price, Fundamental Change Repurchase Price
and the principal amount at Stated Maturity, as the case may be, to a holder
holding this Note in certificated form by check mailed to the address of such
holder as it appears in the Note Register; provided
that a holder holding this Note in certificated form with an aggregate
principal amount in excess of $1,000,000 may request payment by wire transfer in
immediately available funds to an account in North America at the election of
such holder.  Notwithstanding the
foregoing, so long as this Note is registered in the name of a Depositary or
its nominee, all payments hereon shall be made by wire transfer of immediately
available funds to the account of the Depositary or its nominee.

 A-6
 

(3)           Paying Agent, Conversion Agent and
Note Registrar.

Initially, Deutsche Bank
Trust Company Americas (the “Trustee”)
will act as Paying Agent, Conversion Agent and Note Registrar.  The Company may appoint and change any Paying
Agent, Conversion Agent or Note Registrar without notice, other than notice to
the Trustee; provided that the
Company will maintain at least one Paying Agent having an office or agency in
the Borough of Manhattan, City of New York, State of New York 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 or Note
Registrar.

(4)           Indenture.

The Company issued the Notes
under an Indenture, dated as of March 16, 2007 (as it may be amended or
supplemented from time to time in accordance with the terms thereof, the “Indenture”), among the Company, The
Macerich Partnership, L.P., a Delaware limited partnership (the “Guarantor”, which term includes any successors or assigns
under the Indenture), and the Trustee. 
The terms of this Note include those stated in the Indenture and those
made part of the Indenture by reference to 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.  This Note is subject to all such terms, and
the holder of this Note is referred to the Indenture and the TIA for a
statement of those terms.

The Notes are senior
unsecured obligations of the Company and may be issued in unlimited principal
amount under the Indenture.  The
Indenture does not limit other indebtedness of the Company, secured or
unsecured.

(5)           Optional Redemption of Notes.

(a)           This Note is not optionally redeemable by the Company
except as set forth in Section (5)(b) below.

(b)           This Note is redeemable, at the option of the Company, in
whole but not in part, at any time that the Company determines that it is
necessary in order to preserve the Company’s status as a real estate investment
trust under the Code, upon the mailing of a notice of redemption not fewer than
45 Scheduled Trading Days nor more than 60 Scheduled Trading Days before the
Redemption Date to the holder, all as provided in the Indenture, for cash at a
Redemption Price equal to 100% of the principal amount, together with accrued
but unpaid interest (including Liquidated Damages, if any, and Additional
Interest, if any) thereon, up to but not including the Redemption Date; provided that, if the Redemption Date is
after 5:00 p.m., New York City time, on a Record Date and prior to 9:00 a.m.,
New York City time, on the related Interest Payment Date, accrued but unpaid
interest (including Liquidated Damages, if any, and Additional Interest, if
any) will be payable to the holder in whose name this Note is registered at
5:00 p.m., New York City time, on the relevant Record Date.

(c)           If the Paying Agent holds, in accordance with the Indenture,
prior to 11:00 a.m., New York City time, on a Redemption Date, money sufficient
to pay amounts owed with respect to Notes payable on that date, then
immediately after such Redemption Date: 
(i) such Notes shall cease to be outstanding, (ii) interest (including
Liquidated Damages, if any, and Additional Interest, if any) on such Notes
shall cease to accrue, and (iii) such Notes shall cease to be entitled to any
benefit or security under the Indenture, and the holders thereof shall have no
right in respect of such Notes except the right to receive the Redemption
Price, plus accrued and unpaid interest (including Liquidated Damages, if any,
and Additional Interest, if any) up to but not including such Redemption Date.

 A-7
 

(d)           There is no sinking fund provided for redemption of the
Notes.

(6)           Conversion.

(a)           Subject to and in compliance with the provisions of the
Indenture, prior to 5:00 p.m., New York City time, on the second Business Day
immediately preceding the Stated Maturity, the holder of this Note shall have
the right, at such holder’s option, to convert each $1,000 principal amount of
this Note not previously redeemed or repurchased into cash and/or shares of
Common Stock, as elected by the Company as described in Section 11.12 of the
Indenture, at a Conversion Rate of 8.9702 shares of Common Stock (a conversion
price of approximately $111.48 per share), subject to adjustment from time to
time as provided in the Indenture;  provided, however, that at any time prior
to 5:00 p.m., New York City time, on the Business Day prior to December 15,
2011, a holder may convert this Note only upon the satisfaction of specified
conditions set forth in the Indenture. The Company, or, at the Company’s
request, the Trustee in the name and at the expense of the Company, will notify
the holder of this Note of the satisfaction of any condition triggering the
right to convert the Notes, in accordance with the Indenture, and the Company
also shall publicly announce such information and publish it on the Company’s
web site.

(b)           To exercise the conversion right with respect to any Note
in certificated form, the holder must surrender the Note with the original or
facsimile of the form entitled “Conversion
Notice” on the reverse hereof, duly completed and manually signed,
together with such Note duly endorsed for transfer, accompanied by the funds,
if any, required by the Indenture, to the Company at the office or agency of
the Company maintained for that purpose in the City of New York in accordance
with the terms of the Indenture, or at the option of such holder, the Corporate
Trust Office.

To exercise the conversion
right with respect to any interest in a Global Note, the beneficial holder must
complete, or cause to be completed, the appropriate instruction form pursuant
to the Depositary’s book-entry conversion program; deliver, or cause to be
delivered, by book-entry delivery an interest in such Global Note; furnish
appropriate endorsements and transfer documents if required by the Company or
the Trustee or Conversion Agent, and pay the funds, if any, required pursuant
to the terms of the Indenture.

(c)           In the event the holder surrenders this Note for
conversion in connection with a Fundamental Change, the Company will increase
the applicable Conversion Rate, as and when provided in the Indenture.

(d)           No adjustment in respect of interest (including Liquidated
Damages, if any, and Additional Interest, if any) on any Note converted or
dividends on any shares issued upon conversion of such Note will be made upon
any conversion except as set forth in the next sentence.  If this Note (or portion hereof) is
surrendered for conversion during the period after 5:00 p.m., New York City
time, on any applicable Record Date and prior to 9:00 a.m., New York City time,
on the corresponding Interest Payment Date, this Note (or portion hereof being
converted) must be accompanied by payment, in immediately available funds or
other funds acceptable to the Company, of an amount equal to the interest
(including Liquidated Damages, if any, and Additional Interest, if any)
otherwise payable on such Interest Payment Date on the principal amount being
converted; provided that no such
payment shall be required (1) if a holder converts its Notes in connection with
a redemption and the Company has specified a Redemption Date that is after a
Record Date and on or prior to the next Interest Payment Date, (2) if a holder
converts its Notes in connection with a Fundamental Change and the Company has
specified a Fundamental Change Repurchase Date that is after a Record Date and
on or prior to the next Interest Payment Date, (3) with respect to Notes
surrendered for conversion on the Interest Payment Date, (4) if a holder
converts its Notes after the Record Date immediately preceding the Stated
Maturity, or (5) to the 

 A-8
 

extent
of any overdue interest, if any exists at the time of conversion with respect
to such Note.  Notwithstanding the
foregoing, in the case of Notes submitted for conversion in connection with a
Fundamental Change as set forth in the Indenture, such Notes shall continue to
represent the right to receive the Additional Shares, if any, payable pursuant
to the Indenture until such Additional Shares are so paid.

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

(e)           If a Note is called for redemption, in order to convert
such Note, the holder must deliver the Note to the Conversion Agent (or, if the
Note is held in book-entry form, complete and deliver to the Depositary
appropriate instructions in accordance with the applicable procedures of the
Depositary) at any time prior to 5:00 p.m., New York City time, on the Business
Day immediately preceding the applicable Redemption Date (unless the Company
shall default in paying the Redemption Price when due, in which case the
conversion right shall terminate on the date such default is cured and such Note
is redeemed).

A Note in respect of which a
holder has delivered a Fundamental Change Repurchase Notice exercising the
option of such holder to require the Company to repurchase such Note as
provided in Section 3.05 of the Indenture, may be converted only if such
Fundamental Change Repurchase Notice is withdrawn in accordance with the
Indenture.

(9)           Denominations; Transfer; Exchange.

The Notes are in fully
registered form, without coupons, in denominations of $1,000 principal amount
and integral multiples thereof.  A holder
may transfer or exchange Notes in accordance with the Indenture.  No service charge shall be made to any holder
for any registration of, transfer or exchange of Notes, but the Company may
require payment by the holder of a sum sufficient to cover any tax, assessment
or other governmental charge that may be imposed in connection with any
registration of transfer or exchange of Notes.

(10)         Persons Deemed Owners.

The registered holder of
this Note may be treated as the owner of this Note for all purposes.

(11)         Amendment; Waiver.

(a)           Subject to certain exceptions set forth in the Indenture,
the Indenture or the Notes may be amended with the written consent of the
holders of not less than a majority in aggregate principal amount of the
outstanding Notes.  Subject to certain
exceptions set forth in the Indenture, without the consent of any holder, the
Company and the Trustee may amend the Indenture or the Notes (i) to cure any
ambiguity, omission, defect or inconsistency; (ii) to evidence the succession
of another Person to the Company, or successive successions, and the assumption
by the successor Person of the covenants, agreements and obligations of the
Company pursuant to Article V of the Indenture; (iii) to make any other change
that does not adversely affect the rights of any holder of the Notes in any
material respect; provided that any change to conform to the Offering
Memorandum shall be deemed not to adversely affect the rights of any holder of
the Notes; (iv) to comply with the provisions of the TIA (other than the
qualification requirements); (v) to evidence and provide for the acceptance of
appointment under the Indenture by a successor Trustee with respect to the
Notes; (vi) to make provisions with respect to the conversion right 

 A-9
 

of
holders of the Notes pursuant to the requirements of the Indenture; or (v) to
add additional guarantors of the Notes.

(b)           The holders of not less than a majority in aggregate
principal amount of the outstanding Notes may, on behalf of the holders of all
of the Notes, waive any past Default or Event of Default hereunder and its
consequences, subject to certain exceptions set forth in the Indenture.  Upon such waiver, such Default or Event of
Default shall for all purposes of the Notes and the Indenture be deemed to have
been cured and to be not continuing; but no such waiver shall extend to any
subsequent or other Default or Event of Default or impair any rights arising
therefrom.

(12)         Defaults and Remedies.

If an Event of Default
occurs and is continuing, the Trustee may, and at the written request of the
holders of at least 25% in aggregate principal amount of outstanding Notes
shall, declare all Obligations on all the Notes to be immediately due and
payable in the manner provided in the Indenture.

(13)         Trustee Dealings with the Company.

Subject to certain
limitations imposed by the TIA, the Trustee, Paying Agent, Conversion Agent or
Note Registrar, in its individual or any other capacity, may become the owner
or pledgee of Notes with the same rights it would have if it were not Trustee,
Paying Agent, Conversion Agent or Note Registrar.

(14)         No Recourse Against Others.

A director, officer,
employee or stockholder, as such, of the Company shall not have any liability
for any Obligations of the Company under the Notes or the 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 waives and releases all such liability. 
Such waiver and release are part of the consideration for the issuance
of the Notes.

(15)         Authentication.

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

(16)         Governing Law.

THE INDENTURE AND THIS NOTE
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN THE STATE OF NEW
YORK, INCLUDING, WITHOUT LIMITATION, SECTION 5-1401 OF THE NEW YORK GENERAL
OBLIGATIONS LAW.

(17)         CUSIP Numbers.

Pursuant to a recommendation
promulgated by the Committee on Uniform Note Identification Procedures, the
Company has caused CUSIP numbers to be printed on the Notes as a convenience to
the holders of the Notes.  No representation
is made as to the accuracy of such numbers as printed on the Notes and reliance
may be placed only on the other identification numbers printed hereon.

 A-10
 

(18)         Registration Rights Agreement.

In addition to the rights
provided to holders of Notes under the Indenture, holders shall have all the
rights set forth in the Registration Rights Agreement, dated as of March 16,
2007, among the Company and the Initial Purchasers named therein.

(19)                            Guarantee.

The Guarantor has
irrevocably and unconditionally guaranteed on a senior basis the Guarantee
Obligations (as defined in Section 12.01 of the Indenture), as more fully
set forth in the Guarantee endorsed on this Note.

 A-11
 

ABBREVIATIONS

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

	
  TEN COM

  	
  as tenants in common

  	
  UNIF GIFT MIN
  ACT -     

  
	
   

  	
   

  	
  Custodian      

  
	
   

  	
   

  	
   

  
	
  TEN ENT

  	
  as tenant by the entireties

  	
  (Cust) (Minor)

  
	
   

  	
   

  	
   

  
	
  JT TEN

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

  	
  under Uniform
  Gifts to Minors Act

  
	
   

  	
   

  	
  (State)

  

 

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

 A-12

 

CONVERSION
NOTICE

TO:                          THE MACERICH COMPANY

DEUTSCHE BANK TRUST COMPANY AMERICAS, as Trustee

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

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature(s)

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature Guarantee

  
						

 A-13
 

 

Fill in the registration of
shares of Common Stock, if any, if to be issued, and any portion of this Note
not converted, if any,  to be delivered,
and the person to whom cash and payment for fractional shares is to be made, if
to be made, other than to and in the name of the registered holder:

	
  Please print name and address

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Name)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Street Address)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (City, State and Zip Code)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

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

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  $

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Social Security or Other Taxpayer

  	
   

  
	
  Identification Number:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

NOTICE:  The signature on this Conversion Notice must
correspond with the name as written upon the face of the Note in every
particular without alteration or enlargement or any change whatever.

 A-14
 

 

FUNDAMENTAL
CHANGE REPURCHASE NOTICE

TO:                          THE MACERICH COMPANY

DEUTSCHE BANK TRUST COMPANY AMERICAS, as Trustee

The undersigned registered
owner of this Note hereby irrevocably acknowledges receipt of a Company
Fundamental Change Repurchase Notice from The Macerich Company (the “Company”) regarding the right of holders to
elect to require the Company to repurchase the Notes and requests and instructs
the Company to repay the entire principal amount of this Note, or the portion
thereof (which is $1,000 or an integral multiple thereof) below designated, in
cash, in accordance with the terms of the Indenture, at the price of 100% of
such entire principal amount or portion thereof, together with accrued but
unpaid interest (including Liquidated Damages, if any, and Additional Interest,
if any) to but not including the Fundamental Change Repurchase Date, to the
registered holder hereof unless a different name has been indicated below.  Capitalized terms used herein but not defined
shall have the meanings ascribed to such terms in the Indenture.  If any portion of this Note not repurchased
are to be issued in the name of a person other than the undersigned, the
undersigned will provide the appropriate information below and pay all transfer
taxes payable with respect thereto.  The
Notes shall be repurchased by the Company as of the Fundamental Change
Repurchase Date pursuant to the terms and conditions specified in the
Indenture.

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature(s)

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature Guarantee

  
						

 A-15
 

 

Fill in the registration of
any portion of this Note not repurchased, if to be delivered, and the person to
whom payment is to be made, if to be made, other than to and in the name of the
registered holder:

	
  Please print name and address

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Name)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Street Address)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (City, State and Zip Code)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

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

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  $

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Social Security or Other Taxpayer

  	
   

  
	
  Identification Number:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

NOTICE:  The signature on this Fundamental Change
Repurchase Notice must correspond with the name as written upon the face of the
Note in every particular without alteration or enlargement or any change
whatever.

 A-16
 

 

ASSIGNMENT

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

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

o                                    To The Macerich Company or any subsidiary
thereof; or

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

o                                    Pursuant to the exemption from registration
provided by Rule 144 under the Securities Act of 1933, as amended (if
available); or

o                                    Pursuant to a registration statement that has
been declared effective under the Securities Act of 1933, as amended, and which
continues to be effective at the time of such transfer;

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

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

 A-17
 

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature(s)

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature Guarantee

  
						

NOTICE:  The signature on this Assignment must
correspond with the name as written upon the face of the Note in every
particular without alteration or enlargement or any change whatever.

 A-18
 

 

Schedule
I

SCHEDULE
OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE  (2)

The following increases or
decreases in this Global Note have been made:

	
  Date

  	
   

  	
  Amount of

  Decrease in

  Principal

  Amount of this

  Global Note

  	
   

  	
  Amount of

  Increase in

  Principal

  Amount of

  this Global

  Note

  	
   

  	
  Principal

  Amount of

  this Global

  Note

  Following

  Such

  Decrease or

  Increase

  	
   

  	
  Signature of

  Authorized

  Signatory of

  Trustee or Note

  Custodian

  

 

 

 

 

 

 

 

 

 

 

 

(2) This should be included only if the Note is issued
in global form.

 

 A-19
 

GUARANTEE

 

The
Macerich Partnership, L.P., a Delaware limited partnership (hereinafter
referred to as the “Guarantor,”
which term includes any successors or assigns under the Indenture, dated the
date hereof, among the Company (defined below), the Guarantor and Deutsche Bank
Trust Company Americas, as trustee (the “Indenture”),
has irrevocably and unconditionally guaranteed on a senior basis the Guarantee
Obligations (as defined in Section 12.01 of the Indenture), which include
(i) the due and punctual payment of the principal of, premium, if any, and
interest, Liquidated Damages, if any, and Additional Interest, if any, on the
3.25% Convertible Senior Notes due 2012 (the “Notes”)
of The Macerich Company, a Maryland corporation (the “Company”),
whether at Stated Maturity, by acceleration, call for redemption, upon a
repurchase or otherwise, the due and punctual payment of interest on the
overdue principal and premium, if any, and (to the extent permitted by law)
interest on any interest on the Notes, and the due and punctual performance of
all other obligations of the Company, to the holders of the Notes or the
Trustee all in accordance with the terms set forth in Article XII of the
Indenture, and (ii) in case of any extension of time of payment or renewal
of any Notes or any such other obligations, that the same shall be promptly
paid in full when due or performed in accordance with the terms of the
extension or renewal, whether at maturity, by acceleration, call for
redemption, upon a repurchase or otherwise.

The
obligations of the Guarantor to the holders of the Notes and to the Trustee
pursuant to this Guarantee and the Indenture are expressly set forth in
Article XII of the Indenture and reference is hereby made to such
Indenture for the precise terms of this Guarantee.

No
past, present or future director, officer, employee, incorporator or
stockholder (direct or indirect) of the Guarantor (or any such successor
entity), as such, shall have any liability for any obligations of the Guarantor
under this Guarantee or the Indenture or for any claim based on, in respect of,
or by reason of, such obligations or their creation.

The
Guarantor waives, to the fullest extent permitted by applicable law, diligence,
presentment, demand of payment, filing of claims with a court in the event of
merger or bankruptcy of the Company, any right to require a proceeding first
against the Company, the benefit of discussion, protest or notice with respect
to the Notes and all demands whatsoever.

This
is a continuing Guarantee and shall remain in full force and effect and shall
be binding upon the Guarantor and its successors and assigns until full and
final payment of all of the Company’s obligations under the Notes and Indenture
or until legally discharged in accordance with the Indenture and shall inure to
the benefit of the successors and assigns of the Trustee and the holders of the
Notes, and, in the event of any transfer or assignment of rights by any holder
of the Notes or the Trustee, the rights and privileges herein conferred upon
that party shall automatically extend to and be vested in such transferee or
assignee, all subject to the terms and conditions hereof.  This is a Guarantee of payment and performance
and not of collectibility.

This
Guarantee shall not be valid or obligatory for any purpose until the
certificate of authentication on the Note upon which this Guarantee is noted
shall have been executed by the Trustee under the Indenture by the manual
signature of one of its authorized officers.

The
obligations of the Guarantor under this Guarantee shall be limited to the
extent necessary to insure that it does not constitute a fraudulent conveyance
under applicable law.

THE
TERMS OF ARTICLE XII OF THE INDENTURE ARE INCORPORATED HEREIN BY REFERENCE.

 A-20
 

Capitalized
terms used herein have the same meanings given in the Indenture unless
otherwise indicated.

[signature
page follows]

 A-21
 

 

IN WITNESS WHEREOF, the Guarantor has caused
this instrument to be duly executed.

	
  Dated:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  

  	
  THE MACERICH PARTNERSHIP, L.P.

  
	
   

  	
  By:

  	
  The Macerich Company,

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Its:

  

 

 A-22

 

EXHIBIT
B

FORM
OF RESTRICTIVE LEGEND FOR

COMMON STOCK ISSUED UPON CONVERSION(3)

THE SECURITY EVIDENCED BY THIS CERTIFICATE
HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT OF 1933”), OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD
EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE
HOLDER:

(1)           REPRESENTS THAT IT IS A “QUALIFIED
INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT OF 1933;

(2)           AGREES THAT IT WILL NOT, PRIOR TO THE
DATE (THE “RESALE RESTRICTION TERMINATION DATE”) THAT IS TWO YEARS AFTER THE
LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE COMPANY
OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS SECURITY (OR ANY
PREDECESSOR OF SUCH SECURITY), RESELL OR OTHERWISE TRANSFER THE SECURITY
EVIDENCED HEREBY OR THE COMMON STOCK ISSUABLE UPON CONVERSION OF SUCH SECURITY
EXCEPT (A) TO THE MACERICH COMPANY OR ANY SUBSIDIARY THEREOF, (B) PURSUANT TO
THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT
OF 1933 (IF AVAILABLE), OR (C) PURSUANT TO A REGISTRATION STATEMENT THAT HAS
BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT OF 1933 AND WHICH CONTINUES TO
BE EFFECTIVE AT THE TIME OF SUCH TRANSFER.

THE HOLDER OF THIS SECURITY
IS ENTITLED TO THE BENEFITS OF A REGISTRATION RIGHTS AGREEMENT (AS SUCH TERM IS
DEFINED IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF) AND, BY ITS
ACCEPTANCE HEREOF, AGREES TO BE BOUND BY AND TO COMPLY WITH THE PROVISIONS OF
SUCH REGISTRATION RIGHTS AGREEMENT.

(3)   This
legend should be included only if the Security is a Transfer Restricted
Security.

 B-1Exhibit 4.2

$950,000,000 3.25% CONVERTIBLE SENIOR
NOTES DUE 2012

REGISTRATION RIGHTS AGREEMENT

among

THE
MACERICH COMPANY,

as Issuer,

and

J.P. MORGAN SECURITIES INC.

and

DEUTSCHE BANK SECURITIES INC.,

as Initial Purchasers

Dated as of March 16, 2007

THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of March
16, 2007 by and among The Macerich Company, a Maryland corporation (the “Company”), J.P. Morgan Securities Inc. and
Deutsche Bank Securities Inc.(together, the “Initial
Purchasers”) under the Purchase Agreement, dated March 12, 2007 (the “Purchase Agreement”), by and among the
Company, The Macerich Partnership L.P., a Delaware limited partnership (the “Guarantor”) and the Initial Purchasers.  In order to induce the Initial Purchasers to
enter into the Purchase Agreement, the Company has agreed to provide the
registration rights set forth in this Agreement.  The execution of this Agreement is a
condition to the closing under the Purchase
Agreement.

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

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

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

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

 “Business Day” means each Monday, Tuesday,
Wednesday, Thursday and Friday that is not a day on which banking institutions
in The City of New York are authorized or obligated by law or executive order
to close.

 “Common Stock” means the shares of common
stock, par value $.01 per share, of the Company, together with the rights
evidenced by such common stock to the extent provided in the Agreement, dated
as of November 10, 1998, between the Company and Computershare Investor
Services, as successor to Equiserve Trust Company, N.A., as successor to First
Chicago Trust Company of New York, as Rights Agent, and any other securities as
may constitute “Common Stock” for purposes of the Indenture, including, without
limitation, the Underlying Common Stock.

“Conversion Price”
has the meaning assigned such term in the Indenture.

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

“Damages Payment
Date” means each March 15 and September 15.

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

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

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

“Effectiveness
Period” means the period commencing on the date the Initial Shelf
Registration Statement becomes effective under the Securities Act and ending on
the date that all Registrable Securities have ceased to be Registrable
Securities.

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

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

“Fundamental
Change” has the meaning set forth in the Indenture.

“Holder”
has the meaning set forth in the second paragraph of this Agreement.

“Indenture”
means the Indenture, dated as of the date hereof, among the Company, the
Guarantor and Deutsche Bank Trust Company Americas, as trustee, pursuant to
which the Notes shall be issued.

“Initial
Purchasers” has the meaning set forth in the preamble to this
Agreement.

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

“Issue Date”
means March 16, 2007.

“Issuer Free Writing
Prospectus” has the meaning set forth in Section 6(a) hereof.

“Liquidated
Damages Amount” has the meaning set forth in Section 2(e) hereof.

“Losses”
has the meaning set forth in Section 6(a) hereof.

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

“Note Registrar”
has the meaning set forth in the Indenture.

“Notes”
means the 3.25%  Convertible Senior Notes
due 2012 of the Company issued and sold pursuant to the Purchase Agreement.

“Notice and
Questionnaire” means a written notice delivered to the Company
containing substantially the information called for by the Selling
Securityholder Notice and Questionnaire attached as Annex A to the
Offering Memorandum of the Company dated March 12, 2007 relating to the Notes, as such written
election may be amended upon the advice of nationally recognized counsel
experienced in such matters, to the extent reasonably necessary to ensure
compliance with applicable law.

 “Notice Holder” means, on any date, any
Holder that has delivered a completed and signed Notice and Questionnaire to
the Company on or prior to such date.

 “Prospectus” means the prospectus included
in any Registration Statement (including, without limitation, a prospectus that
discloses information previously omitted from a prospectus filed as part of an
effective Registration Statement in reliance upon Rule 430A, 430B or 430C
promulgated under the Securities Act), as amended or supplemented by any
amendment or prospectus supplement, including post-effective amendments, and
all materials incorporated by reference or explicitly deemed to be incorporated
by reference in such Prospectus.

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

“Record Date”
has the meaning assigned to such term in the Indenture.

 2
 

“Record Holder”
means, with respect to any Damages Payment Date relating to any Notes as
to which any such Liquidated Damages Amount has accrued, the holder of record
of such Note on the Record Date immediately preceding the relevant Damages
Payment Date.

“Registrable
Securities” means the Underlying Common Stock and any securities
into or for which such Underlying Common Stock has been converted or exchanged,
and any security issued with respect thereto upon any stock dividend, split or
similar event until, in the case of any of the foregoing securities (including,
without limitation, the Underlying Common Stock and any securities issued upon
conversion of or in exchange for such securities), (A) the earliest of (i) its
effective registration under the Securities Act and resale in accordance with the
Registration Statement covering it, (ii) the expiration of the holding period
that would be applicable thereto under Rule 144(k) to a sale by a non-Affiliate
of the Company, (iii) its sale to the public pursuant to Rule 144 (or any
similar provision then in force, but not Rule 144A) under the Securities Act or
(iv) the date on which all of the foregoing securities cease to be outstanding
and (B) as a result of the event or circumstance described in any of the
foregoing clauses (A)(i) through (iii), the legend with respect to transfer
restrictions required by the Indenture is removed or removable in accordance
with the terms of the Indenture or such legend, as the case may be.

“Registration
Default” has the meaning set forth in Section 2(e) hereof.

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

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

 “Restricted Securities” means “restricted
securities” as defined in Rule 144.

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

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

“SEC”
means the Securities and Exchange Commission.

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

“Shelf
Registration Statement” has the meaning set forth in Section 2(a)
hereof and includes the Initial Shelf Registration Statement and any Subsequent
Shelf Registration Statement.

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

“TIA”
means the Trust Indenture Act of 1939, as amended, and the rules and
regulations promulgated by the SEC thereunder.

“Trustee”
means Deutsche Bank Trust Company Americas, the trustee under the Indenture.

 3
 

“Underlying Common
Stock” means the Common Stock into which the Notes are convertible
or that is issued upon any such conversion.

Section
2.  Shelf
Registration.  (a) The Company shall prepare and file
or cause to be prepared and filed with the SEC, by the date (the “Filing Deadline Date”) that is ninety (90)
days after the Issue Date, a Registration Statement for an offering to be made
on a delayed or continuous basis pursuant to Rule 415 of the Securities Act (a “Shelf Registration Statement”) registering
the resale from time to time by Holders thereof of all of the Registrable
Securities (the “Initial Shelf Registration
Statement”).  The Initial
Shelf Registration Statement shall be on Form S-3 or another appropriate form
permitting registration of such Registrable Securities for resale by such
Holders in accordance with the methods of distribution elected by the Holders
and set forth in the Initial Shelf Registration Statement.  The Company shall use its reasonable best
efforts to cause the Initial Shelf Registration Statement to become effective
under the Securities Act as promptly as is practicable but in any event by the
date (the “Effectiveness Deadline Date”)
that is one hundred eighty (180) days after the Issue Date, and, to keep the
Initial Shelf Registration Statement (or any Subsequent Shelf Registration
Statement) continuously effective under the Securities Act until the expiration
of the Effectiveness Period.  Subject to
Section 4, at the time the Initial Shelf Registration Statement becomes
effective under the Securities Act, each Holder that became a Notice Holder on
or prior to the date that is ten (10) Business Days prior to such time of
effectiveness shall be named as a selling securityholder in the Initial Shelf
Registration Statement and the related Prospectus in such a manner as to permit
such Holder to deliver such Prospectus to purchasers of Registrable Securities
in accordance with applicable law.

(b)           If
the Initial Shelf Registration Statement or any Subsequent Shelf Registration
Statement ceases to be effective for any reason at any time during the
Effectiveness Period (other than because all Registrable Securities registered
thereunder shall have been resold pursuant thereto or shall have otherwise
ceased to be Registrable Securities), the Company shall use its reasonable best
efforts to obtain the prompt withdrawal of any order suspending the
effectiveness thereof, and in any event shall within thirty (30) days of such cessation
of effectiveness amend the Shelf Registration Statement in a manner reasonably
expected to obtain the withdrawal of the order suspending the effectiveness
thereof, or file an additional Shelf Registration Statement covering all of the
securities that as of the date of such filing are Registrable Securities (a “Subsequent Shelf Registration Statement”).  If a Subsequent Shelf Registration Statement
is filed, the Company shall use its reasonable best efforts to cause the
Subsequent Shelf Registration Statement to become effective as promptly as is
practicable after such filing and to keep such Registration Statement (or
Subsequent Shelf Registration Statement) continuously effective until the end
of the Effectiveness Period.  If the
Shelf Registration Statement is scheduled to expire during the Effectiveness
Period pursuant to Rule 415(a)(5) under the Securities Act, the Company will,
prior to such expiration, file a Subsequent Shelf Registration, and use its
reasonable best efforts to cause such Subsequent Shelf Registration to become
effective under the Securities Act (unless it becomes effective automatically
upon filing) within a period that avoids any interruption in the ability of
Holders of Registrable Securities covered by the expiring Shelf Registration
Statement to make registered dispositions.

(c)           The
Company shall supplement and amend the Shelf Registration Statement if required
by the rules, regulations or instructions applicable to the registration form
used by the Company for such Shelf Registration Statement, if required by the
Securities Act or as necessary to name a Notice Holder as a selling
securityholder pursuant to Section 2(d) below.

(d)           Each
Holder agrees that if such Holder wishes to sell Registrable Securities
pursuant to a Shelf Registration Statement and related Prospectus, it will do
so only in accordance with this Section 2(d), Section 3(i) and Section 4.  Each Holder wishing to sell Registrable

 4
 

Securities pursuant to a Shelf Registration
Statement and related Prospectus agrees to deliver a Notice and Questionnaire
to the Company at least fifteen (15) Business Days prior to any intended
distribution of Registrable Securities under the Shelf Registration
Statement.  From and after the date the
Initial Shelf Registration Statement becomes effective under the Securities
Act, the Company shall, as promptly as practicable after the date a Notice and
Questionnaire is delivered to the Company, and in any event upon the later of
(x) ten (10) Business Days after such delivery date or (y) ten (10) Business
Days after the expiration of any Deferral Period in effect when the Notice and
Questionnaire is delivered or put into effect within ten (10) Business Days of
such delivery date:

(i)    if
required by applicable law, file with the SEC a post-effective amendment to the
Shelf Registration Statement or prepare and, if required by applicable law,
file a supplement to the related Prospectus or a supplement or amendment to any
document incorporated therein by reference or file any other required document
so that the Holder delivering such Notice and Questionnaire is named as a
selling securityholder in the Shelf Registration Statement and the related
Prospectus in such a manner as to permit such Holder to deliver such Prospectus
to purchasers of the Registrable Securities in accordance with applicable law
and, if the Company shall file a post-effective amendment to the Shelf
Registration Statement, use its reasonable best efforts to cause such
post-effective amendment to be become effective under the Securities Act as
promptly as is practicable, but in any event by the date (the “Amendment Effectiveness Deadline Date”)
that is ninety (90) days after the date such post-effective amendment is
required by this clause to be filed by the Company;

(ii)   provide
such Holder with a reasonable number of copies of any documents filed pursuant
to Section 2(d)(i); and

(iii)  notify
such Holder as promptly as practicable after the effectiveness under the
Securities Act of any post-effective amendment filed pursuant to Section
2(d)(i);

provided that if such Notice and Questionnaire is delivered during a Deferral
Period, the Company shall so inform the Holder delivering such Notice and
Questionnaire and shall take the actions set forth in clauses (i), (ii) and
(iii) above upon expiration of the Deferral Period in accordance with Section
3(i).  Notwithstanding anything contained
herein to the contrary, (i) the Company shall be under no obligation to name
any Holder that is not a Notice Holder as a selling securityholder in any
Registration Statement or related Prospectus and (ii) the Amendment
Effectiveness Deadline Date shall be extended by up to ten (10) Business Days
from the expiration of a Deferral Period (and the Company shall incur no
obligation to pay Liquidated Damages during such extension) if such Deferral
Period shall be in effect on the Amendment Effectiveness Deadline Date.

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

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

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

(iii)  the
Company has failed to perform its obligations set forth in Section 2(d) within
the time period required therein,

 5
 

(iv)  any
post-effective amendment to a Shelf Registration Statement filed pursuant to
Section 2(d)(i) has not become effective under the Securities Act on or prior
to the Amendment Effectiveness Deadline Date,

(v)   the
aggregate duration of Deferral Periods in any period exceeds the number of days
permitted in respect of such period pursuant to Section 3(i) hereof, or

(vi)  the
number of Deferral Periods in any period exceeds the number permitted in
respect of such period pursuant to Section 3(i) hereof.

Each event described in any
of the foregoing clauses (i) through (vi) is individually referred to herein as
a “Registration Default.” For
purposes of this Agreement, each Registration Default set forth above shall
begin on the dates set forth in the table set forth below and shall continue
until the ending dates set forth in the table below:

	
  Type of Registration Default

  by Clause

  	
   

  	
  Beginning Date

  	
   

  	
  Ending Date

  
	
  (i)

  	
   

  	
  Filing Deadline Date

  	
   

  	
  the date on which the Initial Shelf Registration
  Statement is filed

  
	
  (ii)

  	
   

  	
  Effectiveness Deadline Date

  	
   

  	
  the date on which the Initial Shelf Registration
  Statement becomes effective under the Securities Act

  
	
  (iii)

  	
   

  	
  the date by which the Company is required to perform
  its obligations under Section 2(d)

  	
   

  	
  the date on which the Company performs its
  obligations set forth in Section 2(d)

  
	
  (iv)

  	
   

  	
  the Amendment Effectiveness Deadline Date

  	
   

  	
  the date on which the applicable post-effective
  amendment to a Shelf Registration Statement becomes effective under the
  Securities Act

  
	
  (v)

  	
   

  	
  the date on which the aggregate duration of Deferral
  Periods in any period exceeds the number of days permitted by Section 3(i)

  	
   

  	
  termination of the Deferral Period that caused the
  limit on the aggregate duration of Deferral Periods to be exceeded

  
	
  (vi)

  	
   

  	
  the date of commencement of a Deferral Period that
  causes the number of Deferral Periods to exceed the number permitted by
  Section 3(i)

  	
   

  	
  termination of the Deferral Period that caused the
  number of Deferral Periods to exceed the number permitted by Section 3(i)

  

 

 6
 

Commencing on (and including) any date that a
Registration Default has begun and ending on (but excluding) the next date on
which there are no Registration Defaults that have occurred and are continuing
(a “Damages Accrual Period”), the
Company shall pay, as liquidated damages and not as a penalty, to Record
Holders of Registrable Securities an amount (the “Liquidated Damages Amount”) accruing, for each day in the
Damages Accrual Period, in respect of any Note then outstanding, (i) at a rate
per annum equal to 0.25% of the aggregate principal amount of such Note to and
including the 90th day
following the occurrence of such Registration Default and (ii) at a rate per
annum equal to 0.50% of the aggregate principal amount of such Note from and
after the 91st day
following the occurrence of such Registration Default; provided
that in no event will the Liquidated Damages Amount accrue at a rate exceeding
a rate per annum equal to 0.50%; and provided
further that in the case of a Damages Accrual Period that is in
effect solely as a result of a Registration Default of the type described in
clause (iii) or (iv) of the preceding paragraph, such Liquidated Damages Amount
shall be paid only to the Holders (as set forth in the succeeding paragraph)
that have delivered Notices and Questionnaires that caused the Company to incur
the obligations set forth in Section 2(d), the non-performance of which is the
basis of such Registration Default. 
Notwithstanding the foregoing, no Liquidated Damages Amount shall accrue
as to any Registrable Security from and after the earlier of (x) the date such
security is no longer a Registrable Security and (y) expiration of the
Effectiveness Period.  The rate of
accrual of the Liquidated Damages Amount with respect to any period shall not
exceed the rate provided for in this paragraph notwithstanding the occurrence
of multiple concurrent Registration Defaults. 
Following the cure of all Registration Defaults relating to any
particular Registrable Security requiring the payment by the Company of any
Liquidated Damages Amount to the Holders of the Registrable Securities pursuant
to this Section 2(e), the accrual of such Liquidated Damages Amount with
respect to such Registrable Security shall cease (without in any way limiting
the effect of any subsequent Registration Default requiring the payment by the
Company of any Liquidated Damages Amount).

The Liquidated Damages Amount shall accrue from the
first day of the applicable Damages Accrual Period, and shall be payable in
cash on each Damages Payment Date during the Damages Accrual Period to the
Record Holders of the Registrable Securities on the record date immediately
preceding the applicable Damages Payment Date (and on the Damages Payment Date
next succeeding the end of the Damages Accrual Period if the Damages Accrual
Period does not end on a Damages Payment Date to the Record Holders of the
Registrable Securities as of the date that such Damages Accrual Period ends),
unless the Indenture provides otherwise for the payment of accrued and unpaid
interest, including any Liquidated Damages Amount, in which case the Liquidated
Damages Amount shall be paid as set forth in the Indenture; provided, that, in the case of a
Registration Default of the type described in clause (iii) or (iv) of the first
paragraph of this Section 2(e), such Liquidated Damages Amount shall be paid
only to the Holders entitled thereto pursuant to such first paragraph by check
mailed to the address set forth in the Notice and Questionnaire delivered by
such Holder.  Nothing shall preclude any
Holder from pursuing or obtaining specific performance or other equitable relief
with respect to this Agreement.

All of the Company’s obligations set forth in this
Section 2(e) that are outstanding with respect to any Registrable Security at
the time such security ceases to be a Registrable Security shall survive until
such time as all such obligations with respect to such security have been
satisfied in full (notwithstanding termination of this Agreement pursuant to
Section 8(k)).

The parties hereto agree that the Liquidated Damages
Amount provided for in this Section 2(e) constitutes a reasonable estimate of
the damages that may be incurred by Holders of Registrable Securities by reason
of the failure of the Shelf Registration Statement to be filed or become
effective under the Securities Act or available for effecting resales of Registrable
Securities in accordance with the provisions hereof.

 7
 

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

(a)      Prepare
and file with the SEC a Registration Statement or Registration Statements on
any appropriate form under the Securities Act available for the sale of the
Registrable Securities by the Holders thereof in accordance with the intended
method or methods of distribution thereof, and use its reasonable best efforts
to cause each such Registration Statement to become effective and remain
effective as provided herein; provided
that before filing any Registration Statement or Prospectus or any amendments
or supplements thereto with the SEC, the Company shall furnish to the Initial
Purchasers a reasonable number of copies of all such documents proposed to be
filed and use its reasonable best efforts to reflect in each such document when
so filed with the SEC such comments as the Initial Purchasers reasonably shall
propose within five (5) Business Days of the delivery of such copies to the
Initial Purchasers.

(b)      Prepare
and file with the SEC such amendments and post-effective amendments to each
Registration Statement as may be necessary to keep such Registration Statement
continuously effective (except as provided in Section 3(i) hereof) for the
applicable period specified in Section 2(a); cause the related Prospectus to be
supplemented by any required prospectus supplement, and as so supplemented to
be filed pursuant to Rule 424 (or any similar provisions then in force) under
the Securities Act; and use its reasonable best efforts to comply with the
provisions of the Securities Act applicable to it with respect to the
disposition of all securities covered by such Registration Statement during the
Effectiveness Period in accordance with the intended methods of disposition by
the sellers thereof set forth in such Registration Statement as so amended or
such Prospectus as so supplemented.

(c)      As
promptly as practicable give notice to the Notice Holders and the Initial
Purchasers, (i) when any Prospectus, prospectus supplement, Registration
Statement or post-effective amendment to a Registration Statement has been
filed with the SEC (other than any such prospectus supplement or post-effective
amendment that solely adds one or more Notice Holders as selling security
holders, in which case notice need only be given to such Notice Holders) and,
with respect to a Registration Statement or any post-effective amendment, when
the same has become effective under the Securities Act, (ii) of the issuance by
the SEC or any other federal or state governmental authority of any stop order
suspending the effectiveness of any Registration Statement or the initiation or
threatening of any proceedings for that purpose, (iii) of the receipt by the
Company of any notification with respect to the suspension of the qualification
or exemption from qualification of any of the Registrable Securities for sale
in any jurisdiction or the initiation or threatening of any proceeding for such
purpose, (iv) of the occurrence of a Material Event, (v) of the determination
by the Company that a post-effective amendment to a Registration Statement will
be filed with the SEC, which notice may, at the discretion of the Company (or
as required pursuant to Section 3(i)), state that it constitutes a Deferral
Notice, in which event the provisions of Section 3(i) shall apply, and (vi) of
the issuance by the SEC of a notification of objection to the use of the form
on which the Registration Statement has been filed, and of the happening of any
event that causes the Company to become an “ineligible issuer,” as defined in
Rule 405 under the Securities Act.

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

 8
 

(e)      If
reasonably requested by the Initial Purchasers or any Notice Holder, as promptly
as practicable incorporate in a prospectus supplement or post-effective
amendment to a Registration Statement such information as the Initial
Purchasers or such Notice Holder shall, on the basis of an opinion of
nationally-recognized counsel experienced in such matters, determine to be
required to be included therein by applicable law and make any required filings
of such prospectus supplement or post-effective amendment.

(f)       As
promptly as practicable furnish to each Notice Holder and the Initial Purchasers,
upon request and without charge, at least one (1) conformed copy of the
Registration Statement and any amendment thereto, including exhibits and all
documents incorporated or deemed to be incorporated therein by reference (other
than any such amendment that solely adds one or more Notice Holders as selling
security holders, in which case such conformed copy need only be given to such
Notice Holders).

(g)      During
the Effectiveness Period, deliver to each Notice Holder and the Initial
Purchasers, in connection with any sale of Registrable Securities pursuant to a
Registration Statement, without charge, as many copies of the Prospectus or
Prospectuses relating to such Registrable Securities (including each
preliminary prospectus) and any amendment or supplement thereto as such Notice
Holder may reasonably request, and to provide a “reasonable number” of copies
thereof to the New York Stock Exchange as contemplated by Rule 153 under
the Securities Act; and the Company hereby consents (except during such periods
that a Deferral Notice is outstanding and has not been revoked) to the use of
such Prospectus or each amendment or supplement thereto by each Notice Holder
in connection with any offering and sale of the Registrable Securities covered
by such Prospectus or any amendment or supplement thereto in the manner set
forth therein.

(h)      Prior
to any public offering of the Registrable Securities pursuant to a Registration
Statement, use its reasonable best efforts to register or qualify or cooperate
with the Notice Holders in connection with the registration or qualification
(or exemption from such registration or qualification) of such Registrable
Securities for offer and sale under the securities or Blue Sky laws of such
jurisdictions within the United States as any Notice Holder reasonably requests
in writing (which request may be included in the Notice and Questionnaire);
prior to any public offering of the Registrable Securities pursuant to the
Shelf Registration Statement, use its reasonable best efforts to keep each such
registration or qualification (or exemption therefrom) effective during the
Effectiveness Period in connection with such Notice Holder’s offer and sale of
Registrable Securities pursuant to such registration or qualification (or
exemption therefrom) and do any and all other acts or things reasonably
necessary or advisable to enable the disposition in such jurisdictions of such
Registrable Securities in the manner set forth in the relevant Registration
Statement and the related Prospectus; provided
that the Company will not be required to (i) qualify as a foreign corporation
or as a dealer in securities in any jurisdiction where it would not otherwise
be required to qualify but for this Agreement, (ii) take any action that would
subject it to general service of process in suits or (iii) subject itself to
taxation in respect of doing business in any jurisdiction where it is not
currently subject to taxation.

(i)       Upon
(A) the issuance by the SEC of a stop order suspending the effectiveness of the
Shelf Registration Statement or the initiation of proceedings with respect to
the Shelf Registration Statement under Section 8(d) or 8(e) of the Securities
Act, (B) the occurrence of any event or the existence of any fact (a “Material Event”) as a result of which any Registration
Statement shall contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the
statements therein not misleading, or any Prospectus shall contain any untrue
statement of a material fact or omit to state any material fact

 9
 

required to be stated therein or necessary to make
the statements therein, in the light of the circumstances under which they were
made, not misleading, or (C) the occurrence or existence of any pending
corporate development that, in the reasonable discretion of the Company, makes
it appropriate to suspend the availability of the Shelf Registration Statement
and the related Prospectus for a discrete period of time:

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

(ii)      give
notice to the Notice Holders that the availability of the Shelf Registration
Statement is suspended (a “Deferral Notice”)
and, upon receipt of any Deferral Notice, each Notice Holder agrees not to sell
any Registrable Securities pursuant to the Registration Statement until such
Notice Holder’s receipt of copies of the supplemented or amended Prospectus
provided for in clause (i) above, or until it is advised in writing by the
Company that the Prospectus may be used, and has received copies of any
additional or supplemental filings that are incorporated or deemed incorporated
by reference in such Prospectus.

The Company will use its
reasonable best efforts to ensure that the use of the Prospectus may be resumed
(x) in the case of clause (A) above, as promptly as is practicable, (y) in the
case of clause (B) above, as soon as, in the reasonable judgment of the
Company, public disclosure of such Material Event would not be prejudicial to
or contrary to the interests of the Company or, if necessary to avoid
unreasonable burden or expense, as soon as practicable thereafter and (z) in
the case of clause (C) above, as soon as in the reasonable discretion of the
Company, such suspension is no longer appropriate.   The Company shall be entitled to exercise
its right under this Section 3(i) to suspend the availability of the Shelf
Registration Statement or any Prospectus, without incurring or accruing any
obligation to pay liquidated damages pursuant to Section 2(e), provided that
any such period during which the availability of the Registration Statement and
any Prospectus is suspended (the “Deferral
Period”) shall, without incurring any obligation to pay liquidated
damages pursuant to Section 2(e), not exceed 30 days in any three month period
or 105 days in any twelve (12) month period; provided,
however, that if the disclosure giving
rise to a Deferral Period relates to a proposed pending or material business
transaction, the disclosure of which the board of directors of the Company
determines in good faith would be reasonably likely to impede the Company’s
ability to consummate such transaction, or would otherwise be seriously
detrimental to the Company and its subsidiaries taken as a whole, the Company
may extend the Deferral Period from 30 days to 60 days in any three month
period or from 105 days to 120 days in any twelve (12) month period.

 10
 

(j)          If
requested in writing in connection with a disposition of Registrable Securities
pursuant to a Registration Statement, make reasonably available for inspection
during normal business hours by a representative for the Notice Holders of such
Registrable Securities, any broker-dealers, attorneys and accountants
retained by such Notice Holders, and any attorneys or other agents retained by
a broker-dealer engaged by such Notice Holders, all relevant financial and
other records and pertinent corporate documents and properties of the Company
and its subsidiaries, and cause the appropriate officers, directors and
employees of the Company and its subsidiaries to make reasonably available for
inspection during normal business hours on reasonable notice all relevant
information reasonably requested by such representative for the Notice Holders,
or any such broker-dealers, attorneys or accountants in connection with
such disposition, in each case as is customary for similar “due diligence” examinations; provided that such persons shall first
agree in writing with the Company that any information that is reasonably and
in good faith designated by the Company in writing as confidential at the time
of delivery of such information shall be kept confidential by such persons and
shall be used solely for the purposes of exercising rights under this
Agreement, unless (i) disclosure of such information is required by court or
administrative order or is necessary to respond to inquiries of regulatory authorities,
(ii) disclosure of such information is required by law (including any
disclosure requirements pursuant to federal securities laws in connection with
the filing of any Registration Statement or the use of any Prospectus referred
to in this Agreement), (iii) such information becomes generally available to
the public other than as a result of a disclosure or failure to safeguard by
any such person or (iv) such information becomes available to any such person
from a source other than the Company and such source is not bound by a
confidentiality agreement.

(k)         Comply
with all applicable rules and regulations of the SEC and make generally
available to its securityholders earning statements  (which need not be audited) as soon as
practicable after the effective date of the Registration Statement satisfying
the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder
(or any similar rule promulgated under the Securities Act).

(l)          Cooperate
with each Notice Holder to facilitate the timely preparation and delivery of
certificates representing Registrable Securities sold pursuant to a
Registration Statement, which certificates shall not bear any restrictive
legends, and cause such Registrable Securities to be in such denominations as
are permitted by the Indenture and registered in such names as such Notice
Holder may request in writing at least three (3) Business Day prior to any sale
of such Registrable Securities.

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

(n)        Cooperate
and assist in any filings required to be made with the National Association of
Securities Dealers, Inc. or the New York Stock Exchange, Inc.

(o)        Upon
(i) the filing of the Initial Shelf Registration Statement and (ii) the
effectiveness of the Initial Shelf Registration Statement, announce the same,
in each case by release to Reuters Economic Services and Bloomberg Business
News or other reasonable means of distribution.

 11

 

(p)           Not,
without the prior written consent of the Initial Purchasers, make any offer
relating to the Securities that would constitute a “free writing prospectus,”
as defined in Rule 405 under the Securities Act.

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

Section
5. 
Registration Expenses.  The
Company shall bear all fees and expenses (the “Registration
Expenses”) incurred in connection with the performance by the
Company of its obligations under Sections 2 and 3 of this Agreement whether or
not any Registration Statement becomes effective under the Securities Act.  Such fees and expenses shall include, without
limitation, (i) all registration and filing fees (including, without
limitation, fees and expenses (x) with respect to filings required to be made
with the National Association of Securities Dealers, Inc. or New York Stock
Exchange Inc. and (y) of compliance with federal and state securities or Blue
Sky laws (including, without limitation, reasonable fees and disbursements of
counsel for the Company in connection with Blue Sky qualifications of the
Registrable Securities under the laws of such jurisdictions as Notice Holders
of a majority of the Registrable Securities being sold pursuant to a
Registration Statement may designate), (ii) printing expenses (including,
without limitation, expenses of printing certificates for Registrable
Securities in a form eligible for deposit with The Depository Trust Company),
(iii) duplication expenses relating to copies of any Shelf Registration
Statement or Prospectus delivered to any Holders hereunder, (iv) fees and
disbursements of counsel for the Company in connection with the Shelf
Registration Statement, (v) reasonable fees and disbursements of the Trustee
and its counsel and of the Note Registrar and of the registrar and transfer
agent for the Common Stock and (vi) Securities Act liability insurance, if any,
obtained by the Company in its sole discretion. 
In addition, the Company shall pay the internal expenses of the Company
(including, without limitation, all salaries and expenses of officers and
employees performing legal or accounting duties), the expense of any annual
audit, the fees and expenses incurred in connection with the listing by the Company
of the Registrable Securities on any securities exchange on which similar
securities of the Company are then listed and the fees and expenses of any
person, including special experts, retained by the Company.  Notwithstanding the provisions of this Section
5, each seller of Registrable Securities shall pay its selling expenses and all
of its registration expenses to the extent required by applicable law.

Section
6. 
Indemnification.

(a)           Indemnification by the Company.  The Company shall indemnify and hold harmless
each Notice Holder and each person, if any, who controls any Notice Holder
(within the meaning of either Section 15 of the Securities Act or Section 20 of
the Exchange Act), and each

 12
 

affiliate
of any Notice Holder, from and against any and all losses, claims, damages and
liabilities (including, without limitation, any legal or other expenses
reasonably incurred in connection with defending or investigating any such
action or claim) (collectively, “Losses”)
caused by (i) any untrue statement or alleged untrue statement of a material
fact contained in any Registration Statement or any amendment thereof, or any
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading or
(ii) any untrue statement or alleged untrue statement of a material fact
contained in any preliminary prospectus, any “issuer free writing prospectus,”
as defined in Rule 433 under the Securities Act (an “Issuer Free
Writing Prospectus”), or the Prospectus (as amended or supplemented
if the Company shall have furnished any amendments or supplements thereto), or
any omission or alleged omission to state therein a material fact required to
be stated therein or necessary to make the statements therein in light of the
circumstances under which they were made not misleading, except in each of (i)
and (ii) above insofar as such Losses are caused by any such untrue statement
or omission or alleged untrue statement or omission based upon information relating
to a Holder furnished to the Company in writing by or on behalf of such Holder
expressly for use therein.

(b)           Indemnification by Holders.  Each Holder agrees severally and not jointly
to indemnify and hold harmless the Company, the directors of the Company, the
officers of the Company who sign the Registration Statement, and each person,
if any, who controls the Company (within the meaning of either Section 15 of
the Securities Act or Section 20 of the Exchange Act), and any other Holder,
from and against all Losses caused by (i) any untrue statement or alleged
untrue statement of a material fact contained in any Registration Statement or
any amendment thereof, or any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading or (ii) any untrue statement or alleged untrue statement
of a material fact contained in any preliminary prospectus, any Issuer Free
Writing Prospectus or the Prospectus (as amended or supplemented if the Company
shall have furnished any amendments or supplements thereto) or any omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, but only with
reference to information relating to such Holder furnished to the Company in
writing by or on behalf of such Holder expressly for use in such Registration
Statement, any preliminary prospectus, any Issuer Free Writing Prospectus, the
Prospectus or any amendments or supplements thereto.  In no event shall the liability of any Holder
hereunder be greater in amount than the dollar amount of the proceeds received
by such Holder upon the sale of the Registrable Securities pursuant to the
Registration Statement giving rise to such indemnification obligation.

(c)           Conduct of Indemnification Proceedings.  In case any proceeding (including any
governmental investigation) shall be instituted involving any person in respect
of which indemnity may be sought pursuant to Section 6(a) or 6(b) hereof, such
person (the “indemnified party”)
shall promptly notify the person against whom such indemnity may be sought (the
“indemnifying party”) in writing
and the indemnifying party, upon request of the indemnified party, shall retain
counsel reasonably satisfactory to the indemnified party (who shall not, except
with the consent of the indemnified party, be counsel to the indemnifying
party) to represent the indemnified party and any others the indemnifying party
may designate in such proceeding and shall pay the fees and disbursements of
such counsel related to such proceeding. 
In any such proceeding, any indemnified party shall have the right to
retain its own counsel, but the fees and expenses of such counsel shall be at
the expense of such indemnified party unless (i) the indemnifying party and the
indemnified party shall have mutually agreed to the retention of such counsel,
(ii) the named parties to any such proceeding (including any impleaded parties)
include both the indemnifying party and the indemnified party and
representation of both parties by the

 13
 

same
counsel would be inappropriate due to actual or potential differing interests
between them or (iii) the indemnifying party shall have failed to assume the
defense of and employ counsel acceptable to the indemnified party within a
reasonable period of time after notice of commencement of the action.  It is understood that the indemnifying party
shall not, in respect of the legal expenses of any indemnified party in
connection with any proceeding or related proceedings in the same jurisdiction,
be liable for the fees and expenses of more than one separate firm (in addition
to any local counsel) for all Holders and all persons, if any, who control any
Holder within the meaning of either Section 15 of the Securities Act or Section
20 of the Exchange Act and (ii) the fees and expenses of more than one separate
firm (in addition to any local counsel) for the Company, its directors, its
officers who sign the Registration Statement and each person, if any, who
controls the Company within the meaning of either such Section, and that all
such fees and expenses shall be reimbursed as they are incurred.  In the case of any such separate firm for the
Holders and such control persons of any Holders, such firm shall be designated
in writing by the Holders of a majority (with Holders of Notes deemed to be the
Holders, for purposes of determining such majority, of the number of shares of
Underlying Common Stock into which such Notes are or would be convertible as of
the date on which such designation is made (assuming conversion solely into
shares of Common Stock)) of the Registrable Securities covered by the
Registration Statement held by Holders that are indemnified parties pursuant to
Section 6(a).  In the case of any such
separate firm for the Company, and such directors, officers and control persons
of the Company, such firm shall be designated in writing by the Company.  The indemnifying party shall not be liable
for any settlement of any proceeding effected without its written consent, but
if settled with such consent, the indemnifying party agrees to indemnify the
indemnified party from and against any loss or liability by reason of such
settlement.  No indemnifying party shall,
without the prior written consent of the indemnified party, effect any
settlement, compromise or consent in respect of any pending or threatened
proceeding in respect of which any indemnified party is or could have been a
party and indemnity could have been sought hereunder by such indemnified party,
unless such settlement, compromise or consent (x) includes an unconditional
release of such indemnified party from all liability on claims that are the
subject matter of such proceeding and (y) does not include a statement as to an
admission of fault, culpability or a failure to act by or on the behalf of any
indemnified party.

(d)           Contribution.  To the extent that the indemnification
provided for in Section 6(a) or 6(b) is otherwise applicable by its terms
but is unavailable to an indemnified party or insufficient in respect of any
Losses referred to therein, then each indemnifying party under such paragraph,
in lieu of indemnifying such indemnified party thereunder, shall contribute to
the amount paid or payable by such indemnified party as a result of such Losses
(i) in such proportion as is appropriate to reflect the relative benefits
received by the indemnifying party or parties on the one hand and the
indemnified party or parties on the other hand from the offering of the
Registrable Securities or (ii) if the allocation provided by clause (i) above
is not permitted by applicable law, in such proportion as is appropriate to
reflect not only the relative benefits referred to in clause (i) above but also
the relative fault of the indemnifying party or parties on the one hand and of
the indemnified party or parties on the other hand in connection with the
statements or omissions that resulted in such Losses, as well as any other
relevant equitable considerations. 
Benefits received by the Company shall be deemed to be equal to the
total net proceeds from the sale to the Initial Purchasers pursuant to the
Purchase Agreement (after deducting expenses) of the Registrable Securities to
which such Losses relate.  Benefits
received by any Holder shall be deemed to be equal to the value of receiving
Registrable Securities that are registered under the Securities Act.  The relative fault of the Holders on the one
hand and the Company on the other hand shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a
material fact or the omission or alleged omission to state a material fact
relates to information supplied by or on behalf of the Holders or by the
Company,

 14
 

and
the parties’ relative intent, knowledge, access to information and opportunity
to correct or prevent such statement or omission.  The Holders’ respective obligations to
contribute pursuant to this paragraph are several in proportion to the
respective number of Registrable Securities they have sold pursuant to a
Registration Statement, and not joint.

The parties hereto agree that it would not be just
or equitable if contribution pursuant to this Section 6(d) were determined by pro
rata allocation (even if the Holders were treated as one entity for such
purpose) or by any other method of allocation that does not take account of the
equitable considerations referred to in the immediately preceding
paragraph.  The amount paid or payable by
an indemnified party as a result of the Losses referred to in the immediately
preceding paragraph shall be deemed to include, subject to the limitations set
forth above, any legal or other expenses reasonably incurred by such
indemnified party in connection with investigating or defending any such action
or claim.  Notwithstanding this Section
6(d), an indemnifying party that is a selling Holder shall not be required to
contribute any amount in excess of the amount by which the total price at which
the Registrable Securities sold by such indemnifying party and distributed to
the public were offered to the public exceeds the amount of any damages that
such indemnifying party has otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission or alleged omission.  No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation.  The
remedies provided for in this Section 6 are not exclusive and shall not limit
any rights or remedies which may otherwise be available to any indemnified
party at law or in equity.

(e)           The
indemnity, contribution and expense reimbursement obligations of the parties
hereunder shall be in addition to any liability any indemnified party may
otherwise have hereunder, under the Purchase Agreement or otherwise.

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

Section
7. 
Information Requirements.  The
Company covenants that, if at any time before the end of the Effectiveness
Period the Company is not subject to the reporting requirements of the Exchange
Act, it will cooperate with any Holder and take such further reasonable action
as any Holder may reasonably request in writing (including, without limitation,
making such reasonable representations as any such Holder may reasonably
request), all to the extent required from time to time to enable such Holder to
sell Registrable Securities without registration under the Securities Act
within the limitation of the exemptions provided by Rule 144 and Rule 144A
under the Securities Act and customarily taken in connection with sales pursuant
to such exemptions.  Upon the written
request of any Holder, the Company shall deliver to such Holder a written
statement as to whether it has complied with such filing requirements, unless
such a statement has been included in the Company’s most recent report filed
pursuant to Section 13 or Section 15(d) of Exchange Act.  Notwithstanding the foregoing, nothing in
this Section 7 shall be deemed to require the Company to register any of its
securities (other than the Common Stock) under any section of the Exchange Act.

Section
8. 
Miscellaneous.

(a)           No Conflicting Agreements.  The Company is not, as of the date
hereof, a party to, nor shall it, on or after the date of this Agreement, enter
into, any agreement with respect to its securities that conflicts with the
rights granted to the Holders in this Agreement.  The Company

 15
 

represents
and warrants that the rights granted to the Holders hereunder do not in any way
conflict with the rights granted to the holders of the Company’s securities
under any other agreements.

(b)           Amendments and Waivers.  The provisions of this Agreement,
including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given, unless the Company has obtained the written consent of
Holders of a majority of the then outstanding Underlying Common Stock
constituting Registrable Securities (with Holders of Notes deemed to be the
Holders, for purposes of this Section, of the number of outstanding shares of
Underlying Common Stock into which such Notes are or would be convertible as of
the date on which such consent is requested (assuming conversion solely into
shares of Common Stock)). 
Notwithstanding the foregoing, a waiver or consent to depart from the
provisions hereof with respect to a matter that relates exclusively to the
rights of Holders whose securities are being sold pursuant to a Registration
Statement and that does not directly or indirectly affect the rights of other
Holders may be given by Holders of at least a majority of the Registrable
Securities being sold by such Holders pursuant to such Registration Statement; provided, that the provisions of this
sentence may not be amended, modified, or supplemented except in accordance with
the provisions of the immediately preceding sentence.  Each Holder of Registrable Securities
outstanding at the time of any such amendment, modification, supplement, waiver
or consent or thereafter shall be bound by any such amendment, modification, supplement,
waiver or consent effected pursuant to this Section 8(b), whether or not any
notice, writing or marking indicating such amendment, modification, supplement,
waiver or consent appears on the Registrable Securities or is delivered to such
Holder.

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

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

 16
 

(ii)           if to the Company, to:

The Macerich Company

401 Wilshire Boulevard

Suite 700

Santa Monica, California 90401

Attention:  Chief Executive
Officer

Fax:  (310) 395-2791

with a
copy to:

O’Melveny
& Myers LLP

400
South Hope Street

Los
Angeles, California 90071

Attention:  Richard A. Boehmer, Esq.

Fax:  (213) 430-6407

(iii)          if to the Initial Purchasers, to:

J.P. Morgan Securities Inc.

277 Park Avenue

New York, New York 10172

Attention: 
Equity Syndicate Desk

Fax:  (212)
622-8358

with a copy to:

J.P. Morgan Securities Inc.

277 Park Avenue

8th Floor

New York, New York 10172

Attention: 
Leslie K. Gardner, Esq.

Fax:  (212) 622-6002

and to:

Deutsche Bank Securities Inc.

60 Wall Street

New York,  New
York  10005

Attention: 
Syndicate

Fax: (212) 797-9344

with a copy to:

Attention: General Counsel

Fax: (212) 797-4564

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

 17
 

(d)           Approval of Holders.  Whenever the consent or approval of Holders
of a specified percentage of Registrable Securities is required hereunder,
Registrable Securities held by the Company or its affiliates (as such term is
defined in Rule 405 under the Securities Act) (other than the Initial
Purchasers or subsequent Holders if such subsequent Holders are deemed to be
such affiliates solely by reason of their holdings of such Registrable
Securities) shall not be counted in determining whether such consent or
approval was given by the Holders of such required percentage.  For purposes of determining the Holders of a “majority”
of Registrable Securities, holders of Notes shall be deemed to be the Holders
of the number of shares of Underlying Common Stock into which such Notes are or
would be convertible as of the date such determination is made (assuming
conversion solely into shares of Common Stock).

(e)           Successors and Assigns.  Any person who purchases any
Registrable Securities from the Initial Purchasers shall be deemed, for
purposes of this Agreement, to be an assignee of the Initial Purchasers.  This Agreement shall inure to the benefit of
and be binding upon the successors and assigns of each of the parties and shall
inure to the benefit of and be binding upon each Holder of any Registrable
Securities.

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

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

(h)           Governing Law.  THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK.  TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT
MAY HAVE, AND AGREES NOT TO REQUEST A JURY TRIAL, FOR THE ADJUDICATION OF ANY
DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY
TRANSACTION CONTEMPLATED HEREBY.

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

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

 18
 

those
specifically set forth in this Agreement. 
In no event will such methods of distribution take the form of an
underwritten offering of the Registrable Securities without the prior agreement
of the Company.

(k)           Termination.  This
Agreement and the obligations of the parties hereunder shall terminate upon the
end of the Effectiveness Period, except for any liabilities or obligations
under Section 5, 6 or 8 hereof and the obligations to make payments of and
provide for the Liquidated Damages Amount under Section 2(e) hereof to the extent
such amount cumulates prior to the end of the Effectiveness Period, each of
which shall remain in effect in accordance with its terms.

[signature page follows]

 

 19

 

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

	
  

  	
  THE MACERICH COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas E. O’Hern

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Thomas E. O’Hern

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President, Chief Financial Officer
  and Treasurer

  
					

 

The foregoing Agreement

is hereby confirmed and accepted

as of the date first above written:

	
  

  	
  J.P. MORGAN SECURITIES INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Santosh Sreenivasan

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Santosh Sreenivasan

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Executive Director

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK SECURITIES
  INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Simon Leopold

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Simon Leopold

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Director

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Craig Ramsey

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Craig Ramsey

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Director

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