TABLE OF CONTENTS

 

		Page
ARTICLE 1. DEFINITIONS AND INCORPORATION BY REFERENCE		1
Section 1.01	Definitions	1
Section 1.02	Other Definitions	11
Section 1.03	Incorporation by Reference of Trust Indenture Act	12
Section 1.04	Rules of Construction	12
Section 1.05	Acts of Holders	13
ARTICLE 2. THE NOTES		13
Section 2.01	Form, Dating and Denominations; Legends	13
Section 2.02	Execution and Authentication	14
Section 2.03	Registrar, Paying Agent and Conversion Agent	15
Section 2.04	Paying Agent To Hold Money In Trust	16
Section 2.05	Noteholder Lists	16
Section 2.06	Transfer and Exchange	16
Section 2.07	Replacement Notes	17
Section 2.08	Outstanding Notes	18
Section 2.09	Treasury Notes	18
Section 2.10	Temporary Notes	18
Section 2.11	Cancellation	19
Section 2.12	CUSIP Numbers	19
Section 2.13	Book-entry Provisions For Global Notes	19
Section 2.14	Special Transfer Provisions	20
Section 2.15	Record Date	21
ARTICLE 3. PURCHASES AND REDEMPTIONS		21
Section 3.01	Purchase At the Option of the Holder Upon a Fundamental Change	21
Section 3.02	Effect of Fundamental Change Purchase Notice	25
Section 3.03	Deposit of Fundamental Change Purchase Price	26
Section 3.04	Right of Redemption	26
Section 3.05	Notices to Trustee	27
Section 3.06	Selection of Notes to be Redeemed	27
Section 3.07	Notice of Redemption	27
Section 3.08	Effect of Notice of Redemption	29
Section 3.09	Deposit of Redemption Price	29
Section 3.10	Purchase of Notes at Option of the Holder	29
Section 3.11	Notes Purchased or Redeemed In Part	33
Section 3.12	Covenant To Comply With Securities Laws Upon Repurchase of Notes	34
ARTICLE 4. COVENANTS		34
Section 4.01	Payment of Notes	34
Section 4.02	Maintenance of Office or Agency	35

 

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TABLE OF CONTENTS

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Section 4.03	Existence	35
Section 4.04	Rule 144A Information and Annual Reports	35
Section 4.05	Reports to Trustee	36
Section 4.06	Stay, Extension and Usury Laws	36
Section 4.07	Incurrence of Debt	36
Section 4.08	Limitations on Liens	37
Section 4.09	Limitation on Unlisting of Common Stock	37
Section 4.10	Limitation on Modifying Junior Convertible Preferred Stock	37
ARTICLE 5. CONSOLIDATION, MERGER, SALE OR LEASE OF ASSETS		37
Section 5.01	Consolidation, Merger, Sale or Lease of Assets by the Company	37
ARTICLE 6. DEFAULT AND REMEDIES		38
Section 6.01	Events of Default	38
Section 6.02	Acceleration	39
Section 6.03	Other Remedies	40
Section 6.04	Waiver of Past Defaults	40
Section 6.05	Control by Majority	40
Section 6.06	Limitation on Suits	40
Section 6.07	Rights of Holders to Receive Payment	41
Section 6.08	Collection Suit by Trustee	41
Section 6.09	Trustee May File Proofs of Claim	41
Section 6.10	Priorities	41
Section 6.11	Restoration of Rights and Remedies	42
Section 6.12	Undertaking for Costs	42
Section 6.13	Rights and Remedies Cumulative	42
Section 6.14	Delay or Omission Not Waiver	42
ARTICLE 7. THE TRUSTEE		42
Section 7.01	General	42
Section 7.02	Certain Rights of Trustee	43
Section 7.03	Individual Rights of Trustee	45
Section 7.04	Trustee’s Disclaimer	45
Section 7.05	Notice of Default	45
Section 7.06	Reports by Trustee to Holders	45
Section 7.07	Compensation and Indemnity	45
Section 7.08	Replacement of Trustee	46
Section 7.09	Successor Trustee by Merger	47
Section 7.10	Eligibility	47
Section 7.11	Money Held in Trust	47
ARTICLE 8. DISCHARGE		47
Section 8.01	Satisfaction and Discharge of the Indenture	47
Section 8.02	Application of Trust Money	48
Section 8.03	Repayment to Company	48
Section 8.04	Reinstatement	48

 

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TABLE OF CONTENTS

(Continued)

 

		Page
ARTICLE 9. AMENDMENTS, SUPPLEMENTS AND WAIVERS		49
Section 9.01	Amendments Without Consent of Holders	49
Section 9.02	Amendments With Consent of Holders	50
Section 9.03	Effect of Consent	51
Section 9.04	Trustee’s Rights and Obligations	51
Section 9.05	Conformity With Trust Indenture Act	51
Section 9.06	Payments for Consents	51
ARTICLE 10. CONVERSION		51
Section 10.01	Conversion Privilege	51
Section 10.02	Conversion Procedure	52
Section 10.03	Fractional Shares	53
Section 10.04	Taxes On Conversion	54
Section 10.05	Company To Provide Common Stock and Junior Convertible Preferred Stock	54
Section 10.06	Adjustment for Change In Capital Stock	54
Section 10.07	Adjustment for Rights Issue	55
Section 10.08	Adjustment for Other Distributions	56
Section 10.09	Adjustment for Cash Dividends	57
Section 10.10	Adjustment for Certain Tender Offers or Exchange Offers	58
Section 10.11	Provisions Governing Adjustment to Conversion Rate	58
Section 10.12	Disposition Events	60
Section 10.13	Discretionary Adjustment	61
Section 10.14	When Adjustment May Be Deferred	61
Section 10.15	When No Adjustment Required	62
Section 10.16	Notice of Adjustment	62
Section 10.17	Notice of Certain Transactions	62
Section 10.18	Right of Conversion	63
Section 10.19	Company Determination Final	63
Section 10.20	Trustee’s Adjustment Disclaimer	63
Section 10.21	Simultaneous Adjustments	63
Section 10.22	Successive Adjustments	64
Section 10.23	Rights Issued in Respect of Common Stock Issued Upon Conversion	64
ARTICLE 11. PAYMENT OF INTEREST		64
Section 11.01	Interest Payments	64
Section 11.02	Defaulted Interest	64
Section 11.03	Interest Rights Preserved	65
ARTICLE 12. MISCELLANEOUS		65
Section 12.01	Trust Indenture Act of 1939	65
Section 12.02	Noteholder Communications; Noteholder Actions	66
Section 12.03	Notices	66
Section 12.04	Communication by Holders with Other Holders	67
Section 12.05	Certificate and Opinion as to Conditions Precedent	68
Section 12.06	Statements Required in Certificate or Opinion	68

 

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TABLE OF CONTENTS

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Section 12.07	Legal Holiday	68
Section 12.08	Rules by Trustee, Paying Agent, Conversion Agent and Registrar	68
Section 12.09	Governing Law	68
Section 12.10	No Adverse Interpretation of Other Agreements	68
Section 12.11	Successors and Assigns	69
Section 12.12	Duplicate Originals	69
Section 12.13	Separability	69
Section 12.14	Table of Contents and Headings	69
Section 12.15	No Liability of Directors, Officers, Employees, Incorporators, Members and Stockholders	69
Section 12.16	Waiver of Jury Trial	69
Section 12.17	Force Majeure	69

 

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EXHIBIT A                           Form of Note

 

EXHIBIT B                            Restricted Common Stock Legend and IAI Common Stock Legend

 

EXHIBIT C                            Form of Certificate of Designation for Junior Convertible Preferred Stock

 

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CROSS REFERENCE TABLE*

 

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

 

TIA Section		Indenture Section
310(a)(1)		7.10
(a)(2)		7.10
(a)(3)		N.A.
(a)(4)		N.A.
(b)		7.08; 7.10
(c)		N.A.
311(a)		N.A.
(b)		N.A.
(c)		N.A.
312(a)		2.05
(b)		12.04
(c)		12.04
313(a)		7.06
(b)(1)		N.A.
(b)(2)		7.06
(c)		12.03
(d)		7.06
314(a)		4.04; 4.05; 12.03
(b)		N.A.
(c)(1)		12.05
(c)(2)		12.05
(c)(3)		N.A.
(d)		N.A.
(e)		12.06
(f)		N.A.
315(a)		7.01
(b)		7.05; 12.02
(c)		7.01
(d)		7.01
(e)		6.11
316(a) (last sentence)		2.08
(a)(1)(A)		6.05
(a)(1)(B)		6.04
(a)(2)		N.A.
(b)		6.07
317(a)(1)		6.08
(a)(2)		6.09
(b)		2.04
318(a)		12.01

 

N.A. means not applicable

 

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INDENTURE, dated as of May 8, 2009, between Power-One, Inc., a Delaware corporation, as the “Company” and The Bank of New York Mellon Trust Company, N.A., a national banking corporation, as Trustee.

 

RECITALS

 

The Company has duly authorized the execution and delivery of the Indenture to provide for the initial issuance of $36,375,000 aggregate principal amount of the Company’s 6.0%/8.0%/10.0% Convertible Senior Notes Due 2019 (the “Notes”).  All things necessary to make the Indenture a valid agreement of the Company, in accordance with its terms, have been done, and the Company has done all things necessary to make the Notes, when executed by the Company and authenticated and delivered by the Trustee and duly issued by the Company, the valid obligations of the Company as hereinafter provided.  This Indenture is subject to, and will be governed by, the provisions of the Trust Indenture Act that are required to be a part of and govern indentures qualified under the Trust Indenture Act.

 

THIS INDENTURE WITNESSETH

 

For and in consideration of the premises and the purchase of the Notes by the Holders thereof, the parties hereto covenant and agree, for the equal and proportionate benefit of all Holders, as follows:

 

ARTICLE 1.

 

DEFINITIONS AND INCORPORATION BY REFERENCE

 

Section 1.01           Definitions .

 

“Affiliate” means, with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under direct or indirect common control with, such Person.  For purposes of this definition, “control” (including, with correlative meanings, the terms “controlling,” “controlled by” and “under common control with”) with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of Voting Securities, by contract or otherwise; provided, however, that, notwithstanding the foregoing, neither the Initial Purchasers nor any of their Permitted Transferees will be deemed to be Affiliates of the Company or its Subsidiaries.

 

“Agent” means any Registrar, Paying Agent or Conversion Agent.

 

“Agent Member” means a member of, or a participant in, the Depositary.

 

“Applicable Procedures” means, with respect to any transfer or exchange of beneficial ownership interests in a Global Note, the rules and procedures of the Depositary, in each case to the extent applicable to such transfer or exchange.

 

 

“Beneficially Own” and “Beneficial Ownership” shall have the meaning set forth in Rule 13d-3 of the rules and regulations under the Exchange Act.

 

“Beneficial Owner” means any Person that Beneficially Owns a beneficial interest in a Global Note held in accordance with the rules and procedures of the Depositary.

 

“Bankruptcy Law” means Title 11 of the United States Code (or any successor thereto) or any similar federal or state law for the relief of debtors.

 

“Board of Directors” means the board of directors or comparable governing body of the Company, or any committee thereof duly authorized to act on its behalf.

 

“Board Resolution” means a resolution duly adopted by the Board of Directors which is certified by the Secretary or an Assistant Secretary of the Company and remains in full force and effect as of the date of its certification.

 

“Business Day” means any day except a Saturday, Sunday or other day on which commercial banks in New York City or the Corporate Trust Office are authorized or obligated to close.

 

“Capital Stock” means, with respect to any Person, any and all shares of stock of a corporation, partnership interests or other equivalent interests (however designated, whether voting or non-voting) in such Person’s equity, entitling the holder to receive a share of the profits and losses, and a distribution of assets, after liabilities, of such Person.

 

“Cash” means such coin or currency of the United States as at any time of payment is legal tender for the payment of public and private debts.

 

“Certificated Note” means a Note in registered individual form without interest coupons.

 

“Change in Control” means the occurrence of a Fundamental Change of the type described in the clauses (i), (ii), (iii) or (iv) of the definition of “Fundamental Change” contained in Section 3.01(a).

 

“Close of Business” means 5:00 p.m. (New York City time).

 

“Closing Price” of the Common Stock on any date means the closing sale price per share (or if no closing sale price is reported, the average of the bid and ask prices or, if more than one in either case, the average of the average bid and the average ask prices) on that date as reported in composite transactions for the principal U.S. securities exchange on which the Common Stock is listed or admitted for trading or, if the Common Stock is not listed or admitted for trading on a U.S. national  or regional securities exchange, as reported on the quotation system on which such security is quoted.  If the Common Stock is not listed or admitted for trading on a U.S. national or regional securities exchange and not reported on a quotation system on the relevant date, the “closing price” will be the last quoted bid price for the Common Stock in the over-the-counter market on the relevant date as reported by the National Quotation Bureau or similar organization.  If the Common Stock is not so quoted, the last reported sale price will be the average of the mid-point of the last bid and ask prices for the Common Stock on the relevant date from each of at least three nationally recognized investment banking firms selected by the Company for this purpose.

 

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“Common Stock” means the common stock of the Company, $0.001 par value, as it exists on the date of this Indenture and any shares of any class or classes of Capital Stock of the Company resulting from any reclassification or reclassifications thereof and which have no preference in respect of dividends or of amounts payable in the event of any voluntary or involuntary liquidation, dissolution or winding-up of the Company and which are not subject to redemption by the Company; provided, however, that if at any time there shall be more than one such resulting class, the shares of each such class then so issuable on conversion of Notes shall be substantially in the proportion which the total number of shares of such class resulting from all such reclassifications bears to the total number of shares of all such classes resulting from all such reclassifications.

 

“Company” means the party named as such in the first paragraph of the Indenture or any successor obligor under the Indenture and the Notes pursuant to Section 5.01.

 

“Consolidated EBITDA” means for any period, without duplication, Consolidated Net Income for such period, plus , to the extent reflected as a charge in the statement of such Consolidated Net Income for such period, the sum of (i) taxes, (ii) Fixed Charges, (iii) amortization or write-off of debt discount and debt issuance costs and commissions, discounts and other fees and charges associated with Indebtedness, (iv) depreciation and amortization, (v) amortization of intangibles (including but not limited to goodwill) and organization costs, (vi) any extraordinary charges, (vii) losses on Dispositions outside the ordinary course of business, (viii) charges in respect of excess or obsolete inventory in excess of $1,000,000 in any fiscal quarter, (ix) solely in connection with the closure of a single facility site after the Issue Date, charges incurred prior to April 4, 2011 relating to severance, the termination of leases (including required repairs to such facility site) and costs relating to the transportation of equipment located at such closing facility site to other facilities, not in excess of $15.0 million in the aggregate after the Issue Date, and (x) any other non-cash charges (excluding any such charge incurred in the ordinary course of business that constitutes an accrual of, or a reserve for, cash charges for any future period), and minus , to the extent included in determining Consolidated Net Income for such period, (A) any extraordinary gains, (B) gains on Dispositions outside of the ordinary course of business, (C) any other non-cash items increasing Consolidated Net Income for such period (excluding any items that represent the reversal of any accrual of, or cash reserved for, anticipated cash charges in any prior period that are described in the parenthetical to clause (x)  above and (D) interest income.

 

“Consolidated Net Income” means for any period, the net income of the Company and its Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP.

 

“Continuing Director” means a director who either was a member of the Board of Directors on the Issue Date or who becomes a member of the Board of Directors subsequent to that date and who was nominated or elected by at least a majority of the directors who were Continuing Directors at the time of such nomination or election or whose election to the Board of Directors was recommended or endorsed by at least a majority of the directors who were Continuing Directors at the time of such nomination or election, in each case either by a specific vote or by approval of a proxy statement issued by the Company on behalf of the entire Board of Directors in which such individual is named as a nominee of the Board of Directors for election as director.

 

“Conversion Date” means the date on which the Holder of the Note has complied with all requirements under this Indenture to convert such Note.

 

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

 

“Conversion Rate” means 740.7407407 shares of Common Stock per $1,000 principal amount of Notes, subject to adjustment pursuant to Article 10.

 

“Corporate Trust Office” means the office of the Trustee at which the trust created by this Indenture is principally administered, which at the date of the Indenture is located at The Bank of New York Mellon Trust Company, N.A., 700 South Flower Street, 5 th  Floor, Los Angeles, California 90017, Attention:  Corporate Unit, 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 such successor Trustee may designate from time to time by notice to the Holders and the Company).

 

“Current Market Price” of Common Stock on any day means the average of the Closing Prices per share of Common Stock for each of the five consecutive Trading Days ending on the earlier of the day in question and the day before the Ex-Dividend Date with respect to the issuance or distribution requiring such computation.

 

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

 

“Depositary” means DTC or the nominee thereof, or any successor thereto.

 

“Disposition” means any sale, conveyance, assignment, transfer or other disposal of any of the Company’s or its Subsidiary’s property, business or assets.

 

“DTC” means The Depository Trust Company, a New York corporation, and its successors.

 

“Exchange” means the NASDAQ Global Market or any other U.S. national securities exchange.

 

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

 

“Ex-Dividend Date” means, with respect to any issuance or distribution, the first date on which the shares of Common Stock trade on the applicable exchange or in the applicable market, regular way, without the right to receive such issuance or distribution.

 

“Fair Market Value” means, with respect to any Notes of a Beneficial Owner to be redeemed pursuant to Section 3.10:

 

(i)            if such Beneficial Owner is able to obtain on the Business Day prior to delivery of the Option Purchase Notice in respect of such Beneficial Owner’s Notes in accordance with Section 3.10(a) a firm price quote from one or more Brokers pursuant to which such Broker(s) offers to purchase on such date all, but not less than all, of the Notes that such Beneficial Owner wishes to redeem, the highest purchase price (net of commissions) quoted; or

 

4

 

(ii)           if such Beneficial Owner is unable to obtain any price quotes as contemplated in clause (i) of this definition (including, for the avoidance of doubt, as a result of any Broker failing to respond to such Beneficial Owner’s inquiry for, or to provide, a firm price quote with respect to such Notes), then the Fair Market Value of such Notes shall conclusively be deemed to be an amount less than 110% of the sum of (x) the Option Purchase Price plus (y) accrued and unpaid interest, if any, on such Notes.

 

“Fixed Charges” means, with respect to any specified Person for any period, the sum, without duplication, of:

 

(i)            the consolidated interest expense of such Person and its Subsidiaries for such period, whether paid or accrued, including, without limitation, amortization of debt issuance costs and original issue discount, non-cash interest payments, the interest component of any deferred payment obligations, the interest component of all payments associated with capital lease obligations, commissions, discounts and other fees and charges incurred in respect of letter of credit or bankers’ acceptance financings, and net of the effect of all payments made or received pursuant to hedging obligations in respect of interests rates; plus

 

(ii)           the aggregate amount of interest, on a consolidated basis, of such Person and its Subsidiaries that was capitalized during such period; plus

 

(iii)          any interest on Indebtedness of another Person that is guaranteed by such Person or one of its Subsidiaries or secured by a Lien on assets of such Person or one of its Subsidiaries, whether or not such Guarantee or Lien is called upon; plus

 

(iv)          the product of (a) all dividends, whether paid or accrued and whether or not in cash, on any series of preferred stock of such Person or any of its Subsidiaries, other than dividends on capital stock payable solely in capital stock of the Company or to the Company or a Subsidiary of the Company, times (b) a fraction, the numerator of which is one and the denominator of which is one minus the then current combined federal, state and local statutory tax rate of such Person, expressed as a decimal, in each case, determined on a consolidated basis in accordance with GAAP.

 

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

 

“Global Note” means a Note in registered global form without interest coupons that is deposited with the Depositary or its custodian and registered in the name of the Depositary or its nominee.

 

“Global Note Legend” means the legend set forth in Exhibit A.

 

“Guarantee Obligation” means as to any Person, any obligation, contingent or otherwise of such Person guaranteeing any Indebtedness of any other third Person (the “ primary obligor ”) in any manner, whether directly or indirectly, and including, without limitation, any obligation of the guaranteeing Person (i) to purchase any such Indebtedness or any property constituting direct or indirect security therefor, (ii) to advance or supply funds (a) for the purchase or payment of any such Indebtedness or (b) to maintain working capital or equity capital of the primary obligor or otherwise

 

5

 

to maintain the net worth or solvency of the primary obligor so as to enable such primary obligor to pay such Indebtedness, (iii) to purchase property, securities or services for the purpose of assuring the owner of any such Indebtedness of the ability of the primary obligor to make payment of such Indebtedness or (iv) otherwise to protect the owner of any such Indebtedness against loss in respect thereof; provided, however, that the term Guarantee Obligation shall not include (x) any liability by endorsement of instruments for deposit or collection or similar transactions in the ordinary course of business, (y) indemnification obligations of the Company or any of its Subsidiaries entered into in the ordinary course of business or (z) obligations of the Company or any of its Subsidiaries under arrangements entered into in the ordinary course of business whereby the Company or such Subsidiary sells goods or inventory to other Persons under agreements obligating the Company or such Subsidiary to repurchase such goods or inventory, at a price not exceeding the original sale price, upon the occurrence of certain specified events. The amount of any Guarantee Obligation of any guaranteeing Person at any time shall be deemed to be the lower of (1) an amount equal to the stated or determinable amount of the Indebtedness in respect of which such Guarantee Obligation is made at such time and (2) the maximum amount for which such guaranteeing Person may be liable pursuant to the terms of the instrument embodying such Guarantee Obligation at such time, unless such Indebtedness and such maximum amount for which such guaranteeing Person may be liable are not stated or determinable, in which case the amount of such Guarantee Obligation shall be such guaranteeing Person’s maximum reasonably anticipated liability in respect thereof as determined by the Company in good faith at such time; provided, however, that for purposes of this definition the liability of the guaranteeing Person with respect to any obligation as to which a third Person or Persons are jointly or jointly and severally liable as a guarantor or otherwise as contemplated hereby and have not defaulted on its or their portions thereof shall be only as to its pro rata portion of such obligation.

 

“Hedging Agreement” means any agreement with respect to any swap, forward, future or derivative transaction or option or similar agreement involving, or settled by reference to, one or more rates, currencies, commodities, raw materials, equity or debt instruments, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions.

 

“Holder” or “Noteholder” means the registered holder of any Note.

 

“IAI Certificated Note” means a Certificated Note that bears the IAI Note Legend.

 

“IAI Common Stock Legend” means the legend set forth in Exhibit B.

 

“IAI Global Note” means a Global Note that bears the IAI Note Legend representing Notes initially issued and sold pursuant to the Purchase Agreement to the Initial Purchasers, all of which are Institutional Accredited Investors.

 

“IAI Note” means a Note that bears the IAI Note Legend.

 

“IAI Note Legend” means the legend set forth in Exhibit A.

 

“Indebtedness” means of any Person at any date, without duplication, (i) all indebtedness of such Person for borrowed money; (ii) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments and all obligations of such Person upon which interest charges are

 

6

 

customarily paid; (iii) all obligations of such Person under conditional sale or other title retention agreements related to assets or other property acquired by such Person; (iv) all obligations of such Person to pay the deferred and unpaid purchase price of property or services, excluding current accounts payable incurred in the ordinary course of business and any earn-out obligations not recorded as liabilities under GAAP; (v) the portion of the obligations of such Person as lessee under any lease of any asset or other property which, in conformity with GAAP as in effect on the Issue Date, that is required to be capitalized on a balance sheet of such Person; (vi) all Guarantee Obligations of such Person; (vii) all Indebtedness of other Persons secured by a Lien on any asset of such Person, whether or not such Indebtedness is assumed by such Person; (viii) all net obligations of such Person under Hedging Agreements; and (ix) all obligations, contingent or otherwise, of such Person as an account party in respect of letters of credit and letters of guaranty, or in respect of bankers’ acceptances.

 

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

 

“Initial Purchasers” means the Purchasers named as such in the Purchase Agreement.

 

“Institutional Accredited Investor” means an institutional “accredited investor” as described in Rule 501(a)(1), (2), (3) or (7) under the Securities Act.

 

“Interest Payment Date” means each May 8 and November 8 of each year, commencing November 8, 2009.

 

“Issue Date” means the date on which the Notes are originally issued under this Indenture.

 

“Junior Convertible Preferred Stock” means shares of Junior Convertible Preferred Stock of the Company issued pursuant to the Certificate of Designation in the form attached as Exhibit C.

 

“Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect of such asset, whether or not filed, recorded or otherwise perfected under applicable law (including any conditional sale or other title retention agreement, any lease in the nature thereof, any option or other agreement to sell or give a security interest in and any filing of or agreement to give any financing statement under the Uniform Commercial Code (or equivalent statutes) of any jurisdiction).

 

“Make-Whole Amount” means, with respect to any Note being repurchased pursuant to Section 3.01, the excess, if any, of (i) the present value on the date of such repurchase of (a) 100% of the principal amount of such Note, assuming such Note were redeemed on May 8, 2014 pursuant to Section 3.04(b), plus (b) all required interest payments due on such Note through May 8, 2014 assuming such Note were redeemed on May 8, 2014 pursuant to Section 3.04(b), computed using a 3.125% discount rate over (ii) the principal amount of such Note.

 

 “Market Disruption Event” means the occurrence or existence for more than one half hour period in the aggregate on any scheduled Trading Day for the Common Stock of any suspension or limitation imposed on trading (by reason of movements in price exceeding limits permitted by the primary exchange or trading system on which such shares are traded) in the Common Stock or in any options, contracts or future contracts relating to the Common Stock, and such suspension or limitation occurs or exists at any time before 1:00 p.m. (New York City time) on such day.

 

7

 

“Maturity Date” means May 8, 2019.

 

“Maximum Voting Power” means, at the time of determination, the total number of votes which may be cast by all capital stock on a matter subject to the vote of the Common Stock and any other security that constitute Voting Securities of the Company voting together as a single class after giving effect to any limitation on voting power governing Voting Securities of the Company.

 

“Notes” has the meaning assigned to such term in the Recitals.

 

“Officer” means the chairman of the Board of Directors, the president or chief executive officer, any vice president, the chief financial officer, the treasurer or any assistant treasurer, or the secretary or any assistant secretary, of the Company.

 

“Officers’ Certificate” means a certificate signed in the name of the Company (i) by the chairman of the Board of Directors, the president or chief executive officer or a vice president and (ii) by the chief financial officer, the chief accounting officer, the treasurer or any assistant treasurer or the secretary or any assistant secretary.

 

“OID Note Legend” means the legend set forth in Exhibit A.

 

“Opinion of Counsel” means a written opinion signed by legal counsel, satisfactory to the Trustee, who may be an employee of or counsel to the Company.

 

“Paying Agent” refers to a Person engaged to perform the obligations of the Trustee in respect of payments made or funds held hereunder in respect of the Notes.

 

 “Permitted Indebtedness Amount” means, as of any date, the greater of (i) $127.0 million and (ii) an amount equal to 3.0 times the Company’s Consolidated EBITDA for the immediately preceding four consecutive completed fiscal quarters for which financial statements of the Company prepared in accordance with GAAP are available.

 

“Permitted Liens” means:

 

(i)            Liens to secure the performance of statutory obligations, surety or appeal bonds, performance bonds or other obligations of a like nature incurred in the ordinary course of business;

 

(ii)           Liens for taxes, assessments or governmental charges or claims that are not yet delinquent or that are being contested in good faith by appropriate proceedings promptly instituted and diligently concluded, provided that any reserve or other appropriate provision as shall be required in conformity with GAAP shall have been made therefor;

 

(iii)          Liens of carriers, warehousemen, mechanics, suppliers, materialmen, landlords operators, repairmen and other similar Liens incurred in the ordinary course of business;

 

(iv)          easements, rights-of-way zoning restrictions, reservations, encroachments and other similar encumbrances in respect of real property, which do not, in the opinion of the Company, materially impair the use of such property in the operation of the business of the Company or the value of such property;

 

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(v)           leases or subleases granted to others in the ordinary course of business that do not materially interfere with the business of the Company and its Subsidiaries;

 

(vi)          Liens incurred or deposits made in the ordinary course of business in connection with workers’ compensation, unemployment insurance, and other types of social security, including any Liens securing letters of credit issued in the ordinary course of business consistent with past practice in connection therewith, or to secure the performance of tenders, statutory obligations, surety and appeal bonds, bids, leases, government contracts, performance and return-of-money bonds or other similar obligations (exclusive of obligations for the payment of borrowed money);

 

(vii)         Liens incurred or deposits made to secure liability to insurance carriers under insurance or self-insurance arrangements, including liens of judgments thereunder that are not currently dischargeable;

 

(viii)        Liens on any property held in trust pursuant to defeasance or covenant defeasance provisions governing Indebtedness of the Company arising in connection with any defeasance or covenant defeasance of such Indebtedness;

 

(ix)           Liens to secure (or encumbering deposits securing) obligations arising from warranty or contractual service obligations of the Company or any of its Subsidiaries, including rights of offset and setoff; and

 

(x)            Liens securing Indebtedness permitted to be incurred under Section 4.08.

 

“Permitted Transfer” means any transfer of the Notes not prohibited under Section 8.1 of the Purchase Agreement.

 

“Permitted Transferee” has the meaning given such term in the Purchase Agreement.

 

“Person” means an individual, a corporation, a partnership, a limited liability company, an association, a trust or any other entity, including a government or political subdivision or an agency or instrumentality thereof.

 

“Public Sale” has the meaning set forth in the Purchase Agreement.

 

“Purchase Agreement” means that certain Securities Purchase Agreement, dated as of April 23, 2009, among the Company and the Initial Purchasers.

 

“Purchase at Holder’s Option” means a repurchase of Notes at Holders option in accordance with Section 3.10.

 

“Redemption Date” means the date specified by the Company for redemption of the Notes in accordance with Section 3.07.

 

“Redemption Price” means, with respect to a Note to be redeemed by the Company in accordance with Section 3.04, 100% of the then outstanding principal amount of such Note to be redeemed.

 

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“Register” has the meaning assigned to such term in Section 2.03.

 

“Registrar” means a Person engaged to maintain the Register.

 

“Registration Rights Agreement” means the Registration Rights Agreement dated as of May 8, 2009, among the Company and the Initial Purchasers.

 

“Regular Record Date” for the interest payable on any Interest Payment Date means the April 23 or October 23 (whether or not a Trading Day) next preceding such Interest Payment Date.

 

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

 

“Restricted Certificated Note” means a Certificated Note that bears the Restricted Note Legend.

 

“Restricted Common Stock Legend” means the legend set forth in Exhibit B.

 

“Restricted Global Note” means a Global Note that bears the Restricted Note Legend representing Notes transferred pursuant to Rule 144A and in accordance with the Purchase Agreement.

 

“Restricted Note” means a Note that bears the Restricted Note Legend.

 

“Restricted Note Legend” means the legend set forth in Exhibit A.

 

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

 

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

 

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

 

“Subsidiary” means with respect to any Person, any corporation, association or other business entity of which more than 50% of the outstanding Voting Securities is owned, directly or indirectly, by, or, in the case of a partnership, the sole general partner or the managing partner or the only general partners of which are, such Person and one or more Subsidiaries of such Person (or a combination thereof).  Unless otherwise specified, “Subsidiary” means a Subsidiary of the Company.

 

A “Termination of Trading” will be deemed to have occurred if, for a period of 10 consecutive Business Days, the Common Stock (or other common stock into which the Notes are then convertible) is neither listed for trading on a U.S. national securities exchange nor approved for

 

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trading on an established U.S. automated interdealer quotation system and no American Depositary Shares or similar instruments for such common stock are so listed or approved for listing in the United States.

 

“Trading Day” means any day on which (i) there is no Market Disruption Event and (ii) the NASDAQ Global Market or, if the Common Stock is not listed on the NASDAQ Global Market, the principal national securities exchange on which the Common Stock is listed, is open for trading or, if the Common Stock is not so listed, admitted for trading or quoted, any Business Day.  A Trading Day only includes those days that have a scheduled closing time of 4:00 p.m. (New York City time) or the then standard closing time for regular trading on the relevant exchange or trading system.

 

“Trustee” means the party named as such in the first paragraph of the Indenture or any successor trustee under the Indenture pursuant to Article 7.

 

“Trust Indenture Act” means the Trust Indenture Act of 1939, as amended.

 

 “Unexpected Delisting” means any delisting of the Common Stock from the NASDAQ Global Market directly as a result of the execution of the Purchase Agreement and the consummation of the transactions contemplated thereby.

 

“Voting Securities” means, with respect to any Person, securities of any class or kind having the power to vote generally for the election of directors, managers or other voting members of the governing body of such Person.

 

Section 1.02           Other Definitions .

 

Term		Defined in Section
“Act”		1.05
“Aggregate Amount”		10.10
“Average Sale Price”		10.08
“Bankruptcy Default”		6.01
“beneficial owner”		3.01(a)
“Brokers”		3.10
“Company Order”		2.02
“Conversion Agent”		2.03
“Defaulted Interest”		11.02
“Disposition Event”		10.12
“Distributed Assets”		10.08(a)
“Event of Default”		6.01
“Expiration Date”		10.10
“Expiration Time”		10.10
“Fundamental Change”		3.01(a)
“Fundamental Change Purchase Date”		3.01(a)
“Fundamental Change Purchase Notice”		3.01(c)
“Fundamental Change Purchase Price”		3.01(a)
“Legal Holiday”		12.07

 

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Term		Defined in Section
“Option Purchase Date”		3.10(a)
“Option Purchase Notice”		3.10(b)
“Option Purchase Price”		3.10(a)
“Primary Registrar”		2.03
“Purchased Shares”		10.10
“QIB”		2.01(b)
“Reference Period”		10.08(a)
“Reference Property”		10.12
“Restricted Securities”		2.14
“Rights”		10.23
“Shareholders Rights Plan”		10.23
“Special Record Date”		11.02
“Trigger Event”		10.11

 

Section 1.03     Incorporation by Reference of Trust Indenture Act .Whenever this Indenture refers to a provision of the Trust Indenture Act, the provision is incorporated by reference in and made a part of this Indenture.  The following Trust Indenture Act terms used in this Indenture have the following meanings:

 

“Commission” means the Securities and Exchange Commission.

 

“indenture securities” means the Notes.

 

“indenture security holder” means a Noteholder.

 

“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 Trust Indenture Act terms used in this Indenture that are defined by the Trust Indenture Act, defined by Trust Indenture Act reference to another statute or defined by Securities Exchange Commission rule have the meanings assigned to them by such definitions.

 

Section 1.04    Rules of Construction .  Unless the context otherwise requires or except as otherwise expressly provided,

 

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

 

(b)           an accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP;

 

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

 

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(d)           all references to Sections or Articles or Exhibits refer to Sections or Articles or Exhibits of or to the Indenture unless otherwise indicated;

 

(e)           references to agreements or instruments, or to statutes or regulations, are to such agreements or instruments as amended, restated or supplemented from time to time, or statutes or regulations, as amended from time to time (or to successor statutes and regulations);

 

(f)            in the event that a transaction meets the criteria of more than one category of permitted transactions or listed exceptions the Company may classify such transaction as it, in its sole discretion, determines;

 

(g)           “or” is not exclusive;

 

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

 

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

 

Section 1.05    Acts of Holders .  Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by Holders may be embodied in and evidenced by one or more instruments (which may take the form of an electronic writing or messaging or otherwise be in accordance with customary procedures of the Depositary or the Trustee) of substantially similar tenor signed by such Holders in person or by agent duly appointed in writing (which may be in electronic form); and, except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments are delivered to the Trustee and, where it is hereby expressly required, to the Company.  Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of Holders signing such instrument or instruments.  Proof of execution of any such instrument or of a writing appointing any such agent (either of which may be in electronic form) shall be sufficient for any purpose of this Indenture and conclusive in favor of the Trustee and the Company, if made in the manner provided in this Section.

 

ARTICLE 2.

 

THE NOTES

 

Section 2.01           Form, Dating and Denominations; Legends .

 

(a)           The Notes and the Trustee’s certificate of authentication will be substantially in the form attached as Exhibit A.  The terms and provisions contained in the form of the Note attached as Exhibit A constitute and are hereby expressly made a part of the Indenture.  The Notes may have notations, legends or endorsements required by law, rules of or agreements with national securities exchanges to which the Company is subject, or usage.  Each Note will be dated the date of its authentication.  The Notes will be issuable only in denominations of $2,000 in principal amount and any integral multiple of $1,000 in excess thereof.

 

(b)           Restricted Notes .  All of the Notes are initially being offered and sold pursuant to the Purchase Agreement to the Initial Purchasers, all of which are Institutional

 

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Accredited Investors, and are initially being issued in the form of an IAI Global Note (which will bear the Global Note Legend, the OID Legend and the IAI Note Legend set forth in Exhibit A hereto), which shall be duly executed by the Company and authenticated by the Trustee as hereinafter provided and deposited on behalf of the purchasers of the Notes represented thereby with the Trustee, as custodian for the Depositary, and registered in the name of the Depositary’s nominee, Cede & Co.  All Notes transferred by Initial Purchasers to qualified institutional buyers as defined in Rule 144A (collectively, “QIBs” or individually, each a “QIB”) in reliance on Rule 144A under the Securities Act and in accordance with the Purchase Agreement, shall be issued in the form of one or more Restricted Global Notes (which will bear the Global Note Legend, the OID Legend and the Restricted Note Legend set forth in Exhibit A hereto), which shall be duly executed by the Company and authenticated by the Trustee as hereinafter provided and deposited on behalf of the purchasers of the Notes represented thereby with the Trustee, as custodian for the Depositary, and registered in the name of its nominee, Cede & Co. The aggregate principal amount of each of the IAI Global Notes and the Restricted Global Notes may from time to time be increased or decreased by adjustments made on the records of the Trustee as hereinafter provided, subject in each case to compliance with the Applicable Procedures.

 

(c)           Global Notes in General .  Each Global Note shall represent such of the outstanding Notes as shall be specified therein and each 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 reduced or increased, as appropriate, to reflect exchanges, purchases or conversions of such Notes.  Any adjustment of the aggregate principal amount 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 in accordance with instructions given by the Holder thereof as required by Section 2.06 and shall be made on the records of the Trustee and the Depositary.

 

Agent Members shall have no rights under this Indenture with respect to any Global Note held on their behalf by the Depositary or under the Global Note, and the Depositary (including, for this purpose, its nominee) 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 (A) 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 (B) impair, as between the Depositary and its Agent Members, the operation of customary practices governing the exercise of the rights of a Holder of any Note.

 

(d)           Book Entry Provisions .  The Company shall use its reasonable efforts to execute and the Trustee shall, in accordance with this Section 2.01(d), authenticate and deliver one or more Global Notes that (i) shall be registered in the name of the Depositary, (ii) shall be delivered by the Trustee to the Depositary or pursuant to the Depositary’s instructions and (iii) shall bear the Global Note Legend and the OID Legend substantially to the effect set forth in Exhibit A.  This Section 2.01(d) shall only apply to Global Notes deposited with or on behalf of the Depositary.

 

Section 2.02           Execution and Authentication .  An Officer shall sign the Notes for the Company by manual or facsimile signature attested by the manual or facsimile signature of the Secretary or an Assistant Secretary of the Company.  Typographic and other minor errors or defects

 

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in any such facsimile signature shall not affect the validity or enforceability of any Note which has been authenticated and delivered by the Trustee.

 

If an Officer whose signature is on a Note no longer holds that office at the time the Trustee authenticates the Note, the Note shall be valid nevertheless.

 

A Note shall not be valid until an authorized signatory of the Trustee manually signs the certificate of authentication on the Note.  The signature shall be conclusive evidence that the Note has been authenticated under this Indenture.

 

The Trustee shall authenticate and make available for delivery Notes for original issue in the aggregate principal amount of $36,375,000 upon receipt of a written order or orders of the Company signed by an Officer of the Company (a “Company Order”).  The Company Order shall specify the amount of Notes to be authenticated, shall provide that all such Notes will be represented initially by a Global Note and the date on which each original issue of Notes is to be authenticated.  The initial aggregate principal amount of Notes outstanding at any time may not exceed $36,375,000 except as provided in Section 2.07 and except as provided in the next succeeding paragraph.

 

The Trustee shall act as the initial authenticating agent.  Thereafter, the Trustee may appoint an authenticating agent acceptable to the Company to authenticate Notes.  An authenticating agent may authenticate Notes whenever the Trustee may do so.  Each reference in this Indenture to authentication by the Trustee includes authentication by such agent.  An authenticating agent shall have the same rights as an Agent to deal with the Company or an Affiliate of the Company.

 

The Notes shall be issuable only in registered form without coupons and only in denominations of $2,000 principal amount and any integral multiple of $1,000 in excess thereof.

 

Section 2.03           Registrar, Paying Agent and Conversion Agent .  The Company shall maintain one or more offices or agencies where Notes may be presented for registration of transfer or for exchange (each, a “Registrar”), one or more offices or agencies where Notes may be presented for payment (each, a “Paying Agent”), one or more offices or agencies where Notes may be presented for conversion (each, a “Conversion Agent”) and one or more offices or agencies where notices and demands to or upon the Company in respect of the Notes and this Indenture may be served.  The Company will at all times maintain a Paying Agent, Conversion Agent, Registrar and an office or agency where notices and demands to or upon the Company in respect of the Notes and this Indenture may be served in the United States.  One of the Registrars (the “Primary Registrar”) shall keep a register of the Notes and of their transfer and exchange (the “Register”).  The entries in the Register shall be conclusive, absent manifest error, and the Company shall treat each Person whose name is recorded in the Register as the owner of such Note as the owner thereof for all purposes of this Indenture notwithstanding any notice to the contrary.

 

The Company shall enter into an appropriate agency agreement with any Agent not a party to this Indenture.  The agreement shall implement the provisions of this Indenture that relate to such Agent.  The Company shall notify the Trustee of the name and address of any Agent not a party to this Indenture.  If the Company fails to maintain a Registrar, Paying Agent, Conversion Agent or agent for service of notices and demands in any place required by this Indenture, or fails to give the

 

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foregoing notice, the Trustee shall act as such.  The Company or any Affiliate of the Company may act as Paying Agent (except for the purposes of Article 8).

 

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

 

Section 2.04           Paying Agent To Hold Money In Trust .  Prior to 11:00 a.m., New York City time, on each date on which the principal amount of or interest, if any, on any Notes is due and payable, the Company shall deposit with a Paying Agent a sum sufficient to pay such principal amount or interest, if any, so becoming due.  A Paying Agent shall hold in trust for the benefit of Noteholders or the Trustee all money held by the Paying Agent for the payment of principal amount of or interest, if any, on the Notes, and shall notify the Trustee of any default by the Company (or any other obligor on the Notes) in making any such payment.  If the Company or an Affiliate of the Company acts as Paying Agent, it shall, before 11:00 a.m., New York City time, on each date on which a payment of the principal amount of or interest on any Notes is due and payable, segregate the money and hold it as a separate trust fund.  The Company at any time may require a Paying Agent to pay all money held by it to the Trustee, and the Trustee may at any time during the continuance of any default, upon written request to a Paying Agent, require such Paying Agent to pay forthwith to the Trustee all sums so held in trust by such Paying Agent.  Upon doing so, the Paying Agent (other than the Company) shall have no further liability for the money.

 

Section 2.05           Noteholder Lists .  The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of Noteholders.  If the Trustee is not the Primary Registrar, the Company shall furnish to the Trustee on or before each semiannual interest payment date, and at such other times as the Trustee may request in writing, a list in such form and as of such date as the Trustee may reasonably require of the names and addresses of Noteholders.

 

Section 2.06           Transfer and Exchange .  Subject to compliance with any applicable additional requirements contained in Section 2.14, when a Note is presented to a Registrar with a request to register a transfer thereof or exchange such Note for an equal principal amount of Notes of other authorized denominations, the Registrar shall register the transfer or make the exchange as requested if its requirements for such transactions are met; provided, however, that every Note presented or surrendered for registration of transfer or exchange shall be duly endorsed or accompanied by an assignment form in the applicable form included in Exhibit A, and in form satisfactory to the Registrar duly executed by the Holder thereof or its attorney duly authorized in writing.  To permit registration of transfers and exchanges, upon surrender of any Note for registration of transfer or exchange at an office or agency maintained pursuant to Section 2.03, the Company shall execute and the Trustee shall authenticate Notes of a like aggregate principal amount at the Registrar’s request.  Any exchange or transfer shall be without charge, except that the Company or the Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto, and provided, that this sentence shall not apply to any exchange pursuant to Section 2.10, Section 3.11, Section 9.03(b) or Section 10.02(g) not involving any transfer.  No transfer shall be effective unless recorded in the Register.

 

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The Company, Registrar or the Trustee, as the case may be, shall not be required to register the transfer of or to exchange any Note (i) for a period of 20 calendar days before selecting, pursuant to Section 3.06, Notes to be redeemed or (ii) during a period beginning at the opening of business 20 calendar days before the mailing of a notice of redemption under Section 3.07 and ending at the close of business on the day of such mailing or (iii) that has been selected for redemption or for which a Fundamental Change Purchase Notice or Purchase Notice has been delivered pursuant to Section 3.01 or 3.10, and not withdrawn, in accordance with this Indenture, except, in the case of a partial redemption, purchase or repurchase, that portion of such Note not being redeemed or repurchased.

 

All Notes issued upon any registration of transfer or exchange of Notes shall be 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.

 

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

 

Each Holder of a Note agrees to indemnify the Company and the Trustee against any liability that may result from the transfer, exchange or assignment of such Holder’s Note in violation of any provision of this Indenture and/or applicable United States federal or state securities law.

 

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 or other beneficial owners of interests in any Global Note) other than to require delivery of such certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required by the terms of, this Indenture, and to examine the same to determine substantial compliance as to form with the express requirements hereof.

 

Section 2.07           Replacement Notes .  If any mutilated Note is surrendered to the Company, a Registrar or the Trustee, or the Company, a Registrar and the Trustee receive evidence to their satisfaction of the destruction, loss or theft of any Note, and there is delivered to the Company, the applicable Registrar and the Trustee such security or indemnity as will be required by them to save each of them harmless, then, in the absence of notice to the Company, such Registrar or the Trustee that such Note has been acquired by a protected purchaser, the Company shall execute, and upon its written request the Trustee shall authenticate and deliver, in exchange for any such mutilated Note or in lieu of any such destroyed, lost or stolen Note, a replacement Note of like tenor and principal amount, bearing a number not contemporaneously outstanding.

 

In case any such mutilated, destroyed, lost or stolen Note has become or is about to become due and payable, or is about to be purchased by the Company pursuant to Article 3, the Company in its discretion may, instead of issuing a replacement Note, pay or purchase such Note, as the case may be.

 

Upon the issuance of any replacement Notes under this Section 2.07, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be

 

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imposed in relation thereto and any other reasonable expenses (including the reasonable fees and expenses of the Trustee or the Registrar) in connection therewith.

 

Every replacement Note issued pursuant to this Section 2.07 in lieu of any mutilated, destroyed, lost or stolen Note shall constitute an original additional contractual obligation of the Company, whether or not the mutilated, destroyed, lost or stolen Note shall be at any time enforceable by anyone, and shall be entitled to all benefits of this Indenture equally and proportionately with any and all other Notes duly issued hereunder.

 

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

 

Section 2.08           Outstanding Notes .  Notes outstanding at any time are all Notes authenticated by the Trustee, except for those canceled by it, those converted pursuant to Article 10, those delivered to it for cancellation or surrendered for transfer or exchange and those described in this Section 2.08 as not outstanding.

 

If a Note is replaced pursuant to Section 2.07, it ceases to be outstanding unless the Company receives proof satisfactory to it that the replaced Note is held by a protected purchaser.

 

If a Paying Agent holds at 11:00 a.m., New York City time, on the Maturity Date Cash sufficient to pay the principal amount of the Notes payable on that date, then on and after the Maturity Date, such Notes shall cease to be outstanding and the principal amount thereof shall cease to bear interest.

 

Subject to the restrictions contained in Section 2.09, a Note does not cease to be outstanding because the Company or an Affiliate of the Company holds the Note.

 

Section 2.09           Treasury Notes .  In determining whether the Holders of the required principal amount of Notes have concurred in any notice, direction, waiver or consent, Notes owned by the Company or any other obligor on the Notes or by any Affiliate of the Company or of such other obligor shall be disregarded, except that, for purposes of determining whether the Trustee shall be protected in relying on any such notice, direction, waiver or consent, only Notes which a Responsible Officer of the Trustee actually knows are so owned shall be so disregarded.  Notes so owned which have been pledged in good faith shall not be disregarded if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to the Notes and that the pledgee is not the Company or any other obligor on the Notes or any Affiliate of the Company or of such other obligor.  Any Notes or shares of Common Stock issued upon the conversion of Notes that are purchased or owned by the Company or any Affiliate thereof may not be resold by the Company or such Affiliate unless registered under the Securities Act or resold pursuant to an exemption from the registration requirements of the Securities Act in a transaction that results in such Notes or shares of Common Stock, as the case may be, no longer being “restricted securities” (as defined under Rule 144).

 

Section 2.10           Temporary Notes .  Until definitive Notes are ready for delivery, the Company may prepare and execute, and, upon receipt of a Company Order, the Trustee shall authenticate and deliver, temporary Notes.  Temporary Notes shall be substantially in the form of definitive Notes but

 

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may have variations that the Company considers appropriate for temporary Notes and shall be reasonably acceptable to the Trustee.  Without unreasonable delay, the Company shall prepare and, upon receipt of a Company Order, the Trustee shall authenticate and deliver definitive Notes in exchange for temporary Notes.

 

Section 2.11           Cancellation .  The Company at any time may deliver Notes to the Trustee for cancellation.  The Registrar, the Paying Agent and the Conversion Agent shall forward to the Trustee or its agent any Notes surrendered to them for transfer, exchange, payment or conversion.  The Trustee and no one else shall cancel, in accordance with its standard procedures (subject to the record retention requirements of the Exchange Act), all Notes surrendered for transfer, exchange, payment, conversion, replacement or cancellation and upon written request of the Company shall deliver written certification of such cancellation of Notes to the Company.

 

Section 2.12           CUSIP Numbers .  The Company in issuing any Notes may use one or more “CUSIP” numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of purchase as a convenience to Holders; provided that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Notes or as contained in any notice of a purchase and that reliance may be placed only on the other identification numbers printed on the Notes, and any such purchase shall not be affected by any defect in or omission of such numbers.  The Company will promptly notify the Trustee of any change in the “CUSIP” numbers.

 

Section 2.13           Book-entry Provisions For Global Notes .

 

(a)           Transfers of Global Notes shall be limited to transfers in whole, but not in part, to the Depositary, its successors or their respective nominees.  In addition, Certificated Notes shall be transferred to all beneficial owners, as identified by the Depositary, in exchange for their beneficial interests in Global Notes only if (i) the Depositary notifies the Company that the Depositary is unwilling or unable to continue as depositary for any Global Note (or the Depositary ceases to be a “clearing agency” registered under Section 17A of the Exchange Act) and a successor Depositary is not appointed by the Company within 90 days of such notice or cessation or (ii) an Event of Default has occurred and is continuing and the Registrar has received a written request from the Depositary to issue Certificated Notes.

 

(b)           In connection with the transfer of a Global Note in its entirety to beneficial owners pursuant to Section 2.13(a), such Global Note shall be deemed to be surrendered to the Trustee for cancellation, and the Company shall execute, and the Trustee shall, upon receipt of a Company Order, authenticate and deliver, to each beneficial owner identified by the Depositary in exchange for its beneficial interest in such Global Note, an equal aggregate principal amount of Certificated Notes of authorized denominations.

 

(c)           Any Certificated Note constituting a Restricted Certificated Note or an IAI Certificated Note delivered in exchange for an interest in a Global Note pursuant to Section 2.13(a) shall, except as otherwise provided by Section 2.14, bear the OID Legend and the Restricted Note Legend or the IAI Note Legend, as applicable.

 

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(d)                                  The Holder of any Global Note may grant proxies and otherwise authorize any Person to take any action that a Holder is entitled to take under this Indenture or the Notes.

 

Section 2.14                                 Special Transfer Provisions .

 

(a)                                   The Initial Purchasers may only transfer Notes in accordance with the Purchase Agreement, provided that such transfers also comply with the transfer restrictions set forth in the IAI Note Legend.  Unless and until the Trustee receives written notice from the Company or a Holder that a transfer of a Note has not been made in compliance with the Purchase Agreement, the Trustee may assume without inquiry that such transfer was made in accordance with the Purchase Agreement.

 

(b)                                  Notwithstanding any other provisions of this Indenture, but except as provided in Section 2.14(c), a Global Note may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary.

 

(c)                                   Every Note that bears or is required under this Section 2.14(c) to bear the Restricted Note Legend or the IAI Note Legend, and any Common Stock that bears or is required under this Section 2.14(c) to bear the Restricted Common Stock Legend or the IAI Common Stock Legend (collectively, the “Restricted Securities”) shall be subject to the restrictions on transfer set forth in the Restricted Note Legend, the IAI Note Legend, the Restricted Common Stock Legend or the IAI Common Stock Legend, as the case may be, unless such restrictions on transfer shall be waived by written consent of the Company, and the holder of each such Restricted Security, by such Notes holder’s acceptance thereof, agrees to be bound by all such restrictions on transfer.  As used in this Section 2.14(c), the term “transfer” encompasses any sale, pledge, loan, transfer or other disposition whatsoever of any Restricted Security or any interest therein.

 

Any certificate evidencing such Note (and all securities issued in exchange therefor or substitution thereof), and any stock certificate representing shares of Common Stock issued upon conversion of any Note, shall bear a Restricted Note Legend, IAI Note Legend, Restricted Common Stock Legend or IAI Common Stock Legend, as the case may be, unless such Note or such shares of Common Stock have 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 pursuant to Rule 144 or any similar provision then in force, or such shares of Common Stock have been issued upon conversion of Notes that have been transferred pursuant to a registration statement that has been declared effective under the Securities Act or pursuant to Rule 144 under the Securities Act, or unless otherwise agreed by the Company in writing, with written notice thereof to the Trustee.

 

Any Note (or security issued in exchange or substitution therefor) as to which such restrictions on transfer shall have expired in accordance with their terms or as to which conditions for removal of the Restricted Note Legend or IAI Note Legend, as the case may be, set forth therein have been satisfied may, upon surrender of such Note for exchange to the Registrar in accordance with the provisions of Section 2.06, be exchanged for a new Note or Notes, of like tenor and aggregate principal amount, which shall not bear the Restricted Note Legend or IAI Note Legend, as

 

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the case may be.  If the Restricted Note surrendered for exchange is represented by a Global Note bearing the Restricted Note Legend or IAI Note Legend, as the case may be, the principal amount of the legended Global Note shall be reduced by the appropriate principal amount and the principal amount of a Global Note without the Restricted Note Legend or IAI Note Legend, as the case may be, shall be increased by an equal principal amount.  If a Global Note without the Restricted Note Legend is not then outstanding, the Company shall execute and the Trustee, upon receipt of a Company Order, shall authenticate and deliver an unlegended Global Note to the Depositary.

 

Any such shares of Common Stock as to which such restrictions on transfer shall have expired in accordance with their terms or as to which the conditions for removal of the Restricted Common Stock Legend set forth therein have been satisfied may, upon surrender of the certificates representing such shares of Common Stock for exchange in accordance with the procedures of the transfer agent for the Common Stock, be exchanged for a new certificate or certificates for a like number of shares of Common Stock, which shall not bear the Restricted Common Stock Legend required by this Section 2.14.

 

(d)                                  By its acceptance of any Note bearing the Restricted Note Legend or the IAI Note Legend, as the case may be, each Holder of such a Note acknowledges the restrictions on transfer of such Note set forth in this Indenture and in the Restricted Note Legend or the IAI Note Legend, as the case may be, and agrees that it will transfer such Note only as provided in this Indenture.

 

(e)                                   The Registrar shall retain copies of all letters, notices and other written communications received pursuant to Section 2.13 or this Section 2.14.  The Company shall have the right to inspect and make copies of all such letters, notices or other written communications at any reasonable time during normal hours of operation of the Registrar upon the giving of reasonable notice to the Registrar.

 

Section 2.15                                 Record Date.  The record date for purposes of determining the identity of Holders of the Notes entitled to vote or consent to any action by vote or consent authorized or permitted under this Indenture shall be determined as provided for in Section 316(c) of the Trust Indenture Act.

 

ARTICLE 3.

 

PURCHASES AND REDEMPTIONS

 

Section 3.01                                 Purchase At the Option of the Holder Upon a Fundamental Change .

 

(a)                                    If there shall have occurred a Fundamental Change, each Holder shall have the right, at such Holder’s option, to require the Company to purchase for Cash all or any portion of such Holder’s Notes in integral multiples of $1,000 principal amount on a date selected by the Company (the “Fundamental Change Purchase Date”), which Fundamental Change Purchase Date shall be no later than 35 Trading Days after the occurrence of such Fundamental Change, unless such 35 Trading Days would not provide Holders with at least 20 Trading Days’ notice, in which event the Fundamental Change Purchase Date shall be the day that provides the shortest period necessary to provide 20 Trading Days’ notice, at a purchase price equal to the sum of (x) 100% of

 

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the principal amount of the Notes to be purchased, plus (y) in the case of a Fundamental Change set forth in clause (i), (ii), (iii) or (iv) below only, the Make-Whole Amount, plus (z) accrued and unpaid interest to, but excluding, the Fundamental Change Purchase Date (the “Fundamental Change Purchase Price”), subject to satisfaction by or on behalf of the Holder of the requirements set forth in Section 3.01(c); provided that if the Fundamental Change Purchase Date is after a Regular Record Date and on or prior to the Interest Payment Date to which it relates, interest accrued to the Interest Payment Date will be paid to Holders of the Notes as of the preceding Regular Record Date. The Company shall determine the Make-Whole Amount.

 

A “Fundamental Change” shall be deemed to have occurred at such time as any of the following events shall occur:

 

(i)              any “person” or “group”, other than the Company, its Subsidiaries or any employee benefits plan of the Company or its Subsidiaries, files, or is required by applicable law to file, a Schedule 13D or Schedule TO (or any successor schedule, form or report) pursuant to the Exchange Act, disclosing that such person has become the direct or indirect beneficial owner of shares with a majority of the total voting power of the Company’s outstanding Voting Securities; unless such beneficial ownership arises solely as a result of a revocable proxy delivered in response to a proxy or consent solicitation made pursuant to the applicable rules and regulations under the Exchange Act;

 

(ii)           the Company consolidates with or merges with or into another Person (other than a Subsidiary of the Company), or sells, conveys, transfers, leases or otherwise disposes of all or substantially all of the consolidated properties and assets of the Company and its Subsidiaries to any Person (other than a Subsidiary of the Company) or any Person (other than a Subsidiary of the Company) consolidates with or merges with or into the Company, provided that none of the circumstances set forth in this clause (ii) will be a Fundamental Change if Persons that beneficially own the Voting Securities of the Company immediately prior to the transaction own, directly or indirectly, shares with a majority of the total voting power of all outstanding Voting Securities of the surviving or transferee person immediately after the transaction in substantially the same proportion as their ownership of the Company’s Voting Securities immediately prior to the transaction;

 

(iii)        Continuing Directors cease to constitute at least a majority of the Board of Directors;

 

(iv)       the Company’s stockholders or Board of Directors adopts a plan for the liquidation or dissolution of the Company; or

 

(v)          upon the occurrence of a Termination of Trading (other than in connection with an Unexpected Delisting).

 

For purposes of defining a Fundamental Change:

 

(x)                                    the term “person” and the term “group” have the meanings given by Section 13(d) and 14(d) of the Exchange Act or any successor provisions;

 

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(y)                                  the term “group” includes any group acting for the purpose of acquiring, holding or disposing of securities within the meaning of Rule 13d-5(b)(1) under the Exchange Act or any successor provision; and

 

(z)                                    the term “beneficial owner” is determined in accordance with Rules 13d-3 and 13d-5 under the Exchange Act or any successor provisions.

 

(b)                                  As promptly as practicable following the date the Company publicly announces the Fundamental Change transaction, but in no event less than 20 Trading Days prior to the anticipated effective date of a Fundamental Change in the case of a Fundamental Change within the control of the Company or of which the Company has at least 30 Trading Days prior notice, the Company shall mail a written notice of Fundamental Change by first-class mail to the Trustee and to each Holder at their addresses shown in the register of the Registrar (and to beneficial owners as required by applicable law).  The notice shall include a form of Fundamental Change Purchase Notice to be completed by the Noteholder and shall state:

 

(i)                                      briefly, the events causing such Fundamental Change;

 

(ii)                                   the anticipated effective date of such Fundamental Change;

 

(iii)                                the date by which the Fundamental Change Purchase Notice pursuant to this Section 3.01 must be given;

 

(iv)                               the Fundamental Change Purchase Price;

 

(v)                                  the Fundamental Change Purchase Date;

 

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

 

(vii)                            the then-current Conversion Rate and any adjustments thereto;

 

(viii)                         that Notes with respect to which a Fundamental Change Purchase Notice has been given by the Holder may be converted pursuant to Article 10 hereof only if the Fundamental Change Purchase Notice has been withdrawn in accordance with the terms of this Indenture;

 

(ix)                                 briefly, the procedures a Holder must follow to exercise rights under this Section 3.01;

 

(x)                                    that Notes must be surrendered to the Paying Agent to collect payment of the Fundamental Change Purchase Price;

 

(xi)                                 that the Fundamental Change Purchase Price for any Note as to which a Fundamental Change Purchase Notice has been duly given and not withdrawn, together with any accrued interest payable with respect thereto, will be paid on or prior to the third Trading Day following the later of the Fundamental Change Purchase Date and the time of surrender of such Note;

 

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(xii)                              briefly, the conversion rights of the Notes;

 

(xiii)                           the procedures for withdrawing a Fundamental Change Purchase Notice;

 

(xiv)                          that, unless the Company defaults in making payment of such Fundamental Change Purchase Price and interest due, if any, interest on Notes surrendered for purchase will cease to accrue on and after the Fundamental Change Purchase Date; and

 

(xv)                             the CUSIP number of the Notes.

 

(c)                                   A Holder may exercise its rights specified in Section 3.01(a) by delivery of a written notice of purchase (a “Fundamental Change Purchase Notice”) to the Paying Agent at any time prior to the Close of Business on the Fundamental Change Purchase Date, stating:

 

(i)                                      the certificate number of the Note which the Holder will deliver to be purchased, if Certificated Notes have been issued, or notice compliant with the relevant DTC procedures if the Notes are not certificated;

 

(ii)                                   the portion of the principal amount of the Note which the Holder will deliver to be purchased, which portion must be $1,000 or an integral multiple thereof; and

 

(iii)                                that such Note shall be purchased pursuant to the terms and conditions specified in this Section 3.01.

 

The delivery of such Note to the Paying Agent prior to, on or after the Fundamental Change Purchase Date (together with all necessary endorsements) at the offices of the Paying Agent shall be a condition to the receipt by the Holder of the Fundamental Change Purchase Price therefor; provided, however, that such Fundamental Change Purchase Price shall be so paid pursuant to this Section 3.01 only if the Note so delivered to the Paying Agent shall conform in all respects to the description thereof set forth in the related Fundamental Change Purchase Notice.

 

The Company shall purchase from the Holder thereof, pursuant to this Section 3.01, 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 purchase of all of a Note also apply to the purchase of such portion of such Note.

 

Any purchase by the Company contemplated pursuant to the provisions of this Section 3.01 shall be consummated by the delivery of the consideration to be received by the Holder (together with accrued and unpaid interest) on or prior to the third Business Day following the later of the Fundamental Change Purchase Date and the time of delivery of the Note to the Paying Agent in accordance with this Section 3.01.

 

Notwithstanding anything herein to the contrary, any Holder delivering to the Paying Agent the Fundamental Change Purchase Notice contemplated by this Section 3.01(c) shall have the right to withdraw such Fundamental Change Purchase Notice at any time prior to the Close of Business on the Fundamental Change Purchase Date by delivery of a written notice of withdrawal to the Paying Agent in accordance with Section 3.02.

 

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

 

There shall be no purchase of any Notes pursuant to this Section 3.01 if there has occurred (prior to, on or after, as the case may be, the giving, by the Holders of such Notes, of the required Fundamental Change Purchase Notice) and is continuing an Event of Default (other than a default in the payment of the Fundamental Change Purchase Price).  The Paying Agent will promptly return to the respective Holders thereof any Notes (x) with respect to which a Fundamental Change Purchase Notice has been withdrawn in compliance with this Indenture, or (y) held by it during the continuance of an Event of Default (other than a default in the payment of the Fundamental Change Purchase Price) in which case, upon such return, the Fundamental Change Purchase Notice with respect thereto shall be deemed to have been withdrawn.

 

Section 3.02                                 Effect of Fundamental Change Purchase Notice .

 

(a)                                   Upon receipt by the Paying Agent of the Fundamental Change Purchase Notice specified in Section 3.01(c), the Holder of the Note in respect of which such Fundamental Change Purchase Notice was given shall (unless such Fundamental Change Purchase Notice is withdrawn as specified in the following two paragraphs) thereafter be entitled to receive solely the Fundamental Change Purchase Price, with respect to such Note.  Such Fundamental Change Purchase Price shall be paid to such Holder, subject to receipt of funds by the Paying Agent, on or prior to the third Business Day following the later of (x) the Fundamental Change Purchase Date, with respect to such Note (provided the conditions in Section 3.01(c) have been satisfied) and (y) the time of delivery of such Note to the Paying Agent by the Holder thereof in the manner required by Section 3.01(c).  Notes in respect of which a Fundamental Change Purchase Notice has been given by the Holder thereof may not be converted pursuant to Article 10 hereof on or after the date of the delivery of such Fundamental Change Purchase Notice unless such Fundamental Change Purchase Notice has first been validly withdrawn as specified in the following two paragraphs.

 

(b)                                  A Fundamental Change Purchase 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 Purchase Notice at any time prior to the Close of Business on the Fundamental Change Purchase Date specifying:

 

(i)                                      the certificate number of the Note which the Holder will deliver to be purchased, if Certificated Notes have been issued, or notice compliant with the relevant DTC procedures, if the Notes are not certificated,

 

(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 Purchase Notice and which has been or will be delivered for purchase by the Company.

 

A written notice of withdrawal of a Fundamental Change Purchase Notice may be in the form set forth in the preceding paragraph.

 

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Section 3.03                                 Deposit of Fundamental Change Purchase Price .  Prior to 10:00 a.m. (New York City time) on or prior to the third Business Day following the Fundamental Change Purchase Date, the Company shall deposit with the Trustee or with the Paying Agent (or, if the Company or a Subsidiary or an Affiliate of either of them is acting as the Paying Agent, shall segregate and hold in trust as provided in Section 2.04) an amount of money (in immediately available funds if deposited on such Trading Day) sufficient to pay the aggregate Fundamental Change Purchase Price of all the Notes or portions thereof which are to be purchased as of the Fundamental Change Purchase Date.

 

If the Trustee or the Paying Agent holds money sufficient to pay the Fundamental Change Purchase Price of a Note on the third Business Day following the Fundamental Change Purchase Date in accordance with the terms hereof, then, immediately after the Fundamental Change Purchase Date, interest on such Note will cease to accrue, whether or not the Note is delivered to the Trustee or the Paying Agent, and all other rights of the holder shall terminate, other than the right to receive the Fundamental Change Purchase Price upon delivery of the Note.

 

Section 3.04                                 Right of Redemption .

 

(a)                                   Subject to Section 3.04(c), (d) and (e), the Company shall have the right, at the Company’s option, during the period beginning on November 8, 2011 and ending on May 8, 2014, at any time during such period, and from time to time during such period, to redeem all or any part of the Notes at a price payable in Cash equal to the Redemption Price plus accrued and unpaid interest, if any, to, but excluding, the Redemption Date in the event that the Closing Price for each of 20 or more Trading Days in a period of 30 consecutive Trading Days ending on the day prior to mailing of a notice of redemption to Holders of the Notes in accordance with Section 3.07 shall have exceeded 300% of the applicable Conversion Price, provided, however, that the Company shall have made at least five scheduled semi-annual interest payments (including the interest payments on November 8, 2011) in the full amount required by this Indenture with respect to the Notes prior to redeeming any Notes pursuant to this Section 3.04(a).

 

(b)                                  Subject to Section 3.04(c), (d) and (e), the Company shall have the right, at the Company’s option, after May 8, 2014, at any time, and from time to time, to redeem all or any part of Notes at a price payable in Cash equal to the Redemption Price plus accrued and unpaid interest, if any, to, but excluding, the Redemption Date.

 

(c)                                   In no event shall any Redemption Date be a Legal Holiday. Furthermore, if the Redemption Date with respect to a Note is after the close of business on a record date for the payment of an installment of interest and on or before the related interest payment date, then accrued and unpaid interest to, but excluding, such interest payment date shall be paid, on such interest payment date, to the Holder of record of such Note (without any surrender of such Note by such Holder) at the close of business on such record date, and the Holder surrendering such Note for redemption shall receive only the Redemption Price and shall not be entitled to any such interest unless such Holder was also the Holder of record of such Note at the close of business on such record date.

 

(d)                                  The Company shall not have the right to redeem any Note pursuant to this Section 3.04 unless at the time of the mailing of the applicable redemption notice either (x) the shelf registration statement referred to in Section 2.2 of the Registration Rights Agreement is effective and

 

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available for resales of the Common Stock issuable upon conversion of the Notes or (y) the shares of Common Stock into which the Notes are convertible into may be sold by all Holders and Beneficial Owners of the Notes under Rule 144 under the Securities Act without volume or other limitation.  Notwithstanding anything contained in the Registration Rights Agreement to the contrary, the Company also agrees to keep such shelf registration statement effective and available for resales of the Common Stock contemplated thereby without limitation until and including the Redemption Date specified in such redemption notice.

 

(e)                                   Notes in denominations larger than $1,000 principal amount may be redeemed pursuant to this Section 3.04 in part but only in integral multiples of $1,000 principal amount.

 

Section 3.05                                 Notices to Trustee .  If the Company elects to redeem Notes pursuant to Section 3.04 and paragraph 7 of the Notes, it shall notify the Trustee of the Redemption Date, the applicable provision of this Indenture pursuant to which the redemption is to be made and the aggregate principal amount of Notes to be redeemed, which notice shall be provided to the Trustee by the Company at least 15 days prior to the mailing, in accordance with Section 3.07, of the notice of redemption (unless a shorter notice period shall be satisfactory to the Trustee).

 

Section 3.06                                 Selection of Notes to be Redeemed .  If the Company has elected to redeem less than all the Notes pursuant to Section 3.04 and paragraph 7 of the Notes, the Trustee shall, within five Business Days after receiving the notice specified in Section 3.05, select the Notes to be redeemed by lot, on a pro rata basis or in accordance with any other method the Trustee considers fair and appropriate.  The Trustee shall make such selection from Notes then outstanding and not already to be redeemed by virtue of having been previously called for redemption.  The Trustee may select for redemption portions of the principal amount of Notes that have denominations larger than $1,000 principal amount.  Notes and portions of them the Trustee selects for redemption shall be in amounts of $1,000 principal amount or integral multiples of $1,000 principal amount.  The Trustee shall promptly notify the Company in writing of the Notes selected for redemption and the principal amount thereof to be redeemed.

 

The Registrar need not register the transfer of or exchange any Notes that have been selected for redemption, except the unredeemed portion of the Notes being redeemed in part.  As provided in Section 2.06, the Registrar need not register the transfer of or exchange any Security for a period of 20 days before selecting, pursuant to this Section 3.06, Notes to be redeemed.

 

Section 3.07                                 Notice of Redemption .  (A) At least 20 Business Days but not more than 30 Business Days before a Redemption Date with respect to a redemption pursuant to Section 3.04(a) and (B) at least 30 days but not more than 60 days before a Redemption Date with respect to a redemption pursuant to Section 3.04(b), the Company shall mail, or cause to be mailed, by first-class mail a notice of redemption to each Holder whose Notes are to be redeemed, at the address of such Holder appearing in the security register.

 

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

 

(i)                                      the Redemption Date;

 

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

 

(iii)                                the Conversion Rate;

 

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

 

(v)                                  that the right to convert the Notes called for Redemption will terminate at the close of business on the Business Day immediately preceding the Redemption Date, unless there shall be a Default in the payment of the Redemption Price or accrued and unpaid interest, if any, payable as provided in this Indenture upon redemption;

 

(vi)                               that Holders who want to convert Notes into shares of Common Stock or shares of Junior Convertible Preferred Stock must satisfy the requirements of Article 10;

 

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

 

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

 

(ix)                                 that, unless there shall be a Default in the payment of the Redemption Price or accrued and unpaid interest, if any, payable as herein provided upon redemption (including, where the Redemption Date is after a record date for the payment of an installment of interest and on or before the related interest payment date, the payment, on such interest payment date, of accrued and unpaid interest to, but excluding, such interest payment date to the Holder of record at the close of business on such record date), interest on Notes called for redemption ceases to accrue on and after the Redemption Date, except as otherwise provided herein, and all rights of the Holders of such Notes shall terminate on and after the Redemption Date, other than the right to receive, upon surrender of such Notes and in accordance with this Indenture, the amounts due hereunder on such Notes upon redemption (and the rights of the Holder(s) of record of such Notes to receive, on the applicable interest payment date, accrued and unpaid interest in accordance herewith in the event the Redemption Date is after a record date for the payment of an installment of interest and on or before the related interest payment date); and

 

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

 

The right, pursuant to Article 10, to convert Notes called for redemption shall terminate at the close of business on the Business Day immediately preceding the Redemption Date, unless there shall be a Default in the payment of the Redemption Price or accrued and unpaid interest, if any, payable as herein provided upon redemption.

 

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At the Company’s request, upon 5 days’ notice prior to the date of delivery of the notice of redemption, the Trustee shall mail the notice of redemption in the Company’s name and at the Company’s expense; provided, however, that the form and content of such notice shall be prepared by the Company.

 

Section 3.08                                 Effect of Notice of Redemption .  Once notice of redemption is mailed, Notes called for redemption become due and payable on the Redemption Date at the specified Redemption Price (together with accrued and unpaid interest, if any, payable as provided herein) and, on and after such Redemption Date (unless there shall be a Default in the payment of such consideration), except as otherwise provided herein, such Notes shall cease to bear interest, and all rights of the Holders of such Notes shall terminate, other than the right to receive such consideration upon surrender of such Notes to the Paying Agent.

 

If any Note shall not be fully and duly paid in accordance herewith upon redemption, the principal of, and accrued and unpaid interest on, such Note shall, until paid, bear interest at the rate borne by such Note on the principal amount of such Note, and such Note shall continue to be convertible pursuant to Article 10.

 

Notwithstanding anything herein to the contrary, there shall be no purchase of any Note pursuant to a redemption if there has occurred (prior to, on or after, as the case may be, the mailing of the notice of redemption specified in Section 3.07) and is continuing an Event of Default (other than a Default in the payment of the consideration payable as herein provided upon redemption).  The Paying Agent will promptly return to the respective Holders thereof any Notes held by it during the continuance of such an Event of Default.

 

Section 3.09                                 Deposit of Redemption Price .  Prior to 11:00 a.m. (New York City time) on or prior to the Business Day prior to the Redemption Date, the Company shall deposit with the Trustee or with the Paying Agent (or, if the Company or a Subsidiary or an Affiliate of either of them is acting as the Paying Agent, shall segregate and hold in trust as provided in Section 2.04) an amount of money (in immediately available funds if deposited on such Business Day) sufficient to pay the consideration payable as herein provided upon redemption with respect to all Notes to be redeemed on that date.  The Paying Agent shall return to the Company, as soon as practicable, any money not required for that purpose.

 

Section 3.10                                 Purchase of Notes at Option of the Holder .

 

(a)                                   At the option of the Holder thereof, Notes (or portions thereof that are integral multiples of $1,000 in principal amount) shall be purchased by the Company pursuant to this Section 3.10 and paragraph 9 of the Notes on May 8, 2014, May 8, 2015, May 8, 2016, May 8, 2017 and May 8, 2018 (each, an “Option Purchase Date”), at a purchase price, payable in Cash, equal to 100% of the principal amount of the Notes (or such portions thereof) to be so purchased (the “Option Purchase Price”), plus accrued and unpaid interest, if any, to, but excluding, the applicable Option Purchase Date (provided, that if such Option Purchase Date is after the close of business on a record date for the payment of an installment of interest and on or before the related interest payment date, then such accrued and unpaid interest shall be paid, on such interest payment date, to the Holder of record of such Notes (without any surrender of such Notes by such Holder) at the close of business

 

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on such record date and the Holder surrendering such Note for repurchase shall receive only the Option Purchase Price and shall not be entitled to any such interest unless such Holder was also the Holder of record of such Note at the close of business on such record date), upon:

 

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

 

(A)                               the certificate number of the Note which the Holder will deliver to be purchased, if Certificated Notes have been issued, or notice compliant with relevant DTC procedures if the Notes are not certificated;

 

(B)                                 the portion of the principal amount of Note which the Holder will deliver to be purchased, which portion must be $1,000 or an integral multiple thereof;

 

(C)                                 that such Note shall be purchased pursuant to the terms and conditions specified in Section 3.10 of this Indenture; and

 

(D)                                that the Beneficial Owner of the Notes attempted in good faith to obtain the price quotes referred to in clause (i) of the definition of Fair Market Value and the Fair Market Value was equal to or less than 110% of the sum of (x) the Option Purchase Price plus (y) accrued and unpaid interest, if any, on the Notes subject to redemption pursuant to this Section 3.10; and

 

(ii)                                   delivery to the Company (if it is acting as its own Paying Agent), or to a Paying Agent designated by the Company for such purpose in the Option Purchase Notice, at any time after delivery of such Option Purchase Notice, of such Notes (together with all necessary endorsements), such delivery being a condition to receipt by the Holder of the Option Purchase Price therefor plus accrued and unpaid interest, if any, payable as herein provided upon Purchase at Holder’s Option (provided, however, that the Holder of record of such Notes on the record date immediately preceding such Option Purchase Date need not surrender such Notes in order to be entitled to receive, on the Option Purchase Date, the accrued and unpaid interest due thereon).

 

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

 

Notwithstanding anything herein to the contrary, any Holder that has delivered the Option Purchase Notice contemplated by this Section 3.10(a) to the Company (if it is acting as its own Paying Agent) or to a Paying Agent designated by the Company for such purpose in the Option Purchase Notice shall have the right to withdraw such Option Purchase Notice by delivery, at any

 

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time prior to the close of business on the Business Day immediately preceding the applicable Option Purchase Date, of a written notice of withdrawal to the Company (if acting as its own Paying Agent) or the Paying Agent, which notice shall contain the information specified in Section 3.10(b)(viii).

 

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

 

(b)                                  The Company shall give notice (the “Option Purchase Notice”) on a date not more than 60 days nor less than 30 days prior to each Option Purchase Date to each Holder at its address shown in the register of the Registrar and to each beneficial owner as required by applicable law.  Such notice shall state:

 

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

 

(ii)                                   the Conversion Rate then applicable to the Notes;

 

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

 

(iv)                               that Notes with respect to which a Purchase Notice is given by a Holder may be converted pursuant to Article 10, if otherwise convertible in accordance with Article 10, only if such Purchase Notice has been withdrawn in accordance with this Section 3.10 or if there shall be a Default in the payment of such Option Purchase Price or in accrued and unpaid interest, if any, payable as herein provided upon Purchase at Holder’s Option;

 

(v)                                  that Notes (together with any necessary endorsements) must be surrendered to the Paying Agent to collect payment of the Option Purchase Price plus (if such Holder was the Holder of record of the applicable Note at the close of business on the record date immediately preceding the Option Purchase Date) accrued and unpaid interest, if any, payable as herein provided upon Purchase at Holder’s Option;

 

(vi)                               that the Option Purchase Price, plus accrued and unpaid interest, if any, to, but excluding, such Option Purchase Date, for any Note as to which a Purchase Notice has been given and not withdrawn will be paid as promptly as practicable, but in no event later than such Option Purchase Date or the time of delivery of the Note as described in clause (v) above; provided, however, that such accrued and unpaid interest shall be paid, on the applicable interest payment date, to the Holder of record of such Note at the close of business on the record date immediately preceding such Option Purchase Date;

 

(vii)                            the procedures the Holder must follow to exercise rights under this Section 3.10 (including the name and address of the Paying Agent) and a brief description of those rights;

 

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(viii)                         that a Holder will be entitled to withdraw its election in the Purchase Notice if the Company (if acting as its own Paying Agent) or the Paying Agent receives, at any time prior to the close of business on the Business Day immediately preceding the applicable Option Purchase Date, or such longer period as may be required by law, a letter, telegram or facsimile transmission (with confirmation of good transmission thereof) setting forth (I) the name of such Holder, (II) a statement that such Holder is withdrawing its election to have Notes purchased by the Company on such Option Purchase Date pursuant to a Purchase at Holder’s Option, (III) the certificate number(s) of such Notes to be so withdrawn, if such Notes are in certificated form, (IV) the principal amount of the Notes of such Holder to be so withdrawn, which amount must be $1,000 or an integral multiple thereof and (V) the principal amount, if any, of the Notes of such Holder that remain subject to the Purchase Notice delivered by such Holder in accordance with this Section 3.10, which amount must be $1,000 or an integral multiple thereof;

 

(ix)                                 that on and after the applicable Option Purchase Date (unless there shall be a Default in the payment of the consideration payable as herein provided upon a Purchase at Holder’s Option), interest on Notes subject to Purchase at Holder’s Option will cease to accrue, and all rights of the Holders of such Notes shall terminate, other than the right to receive, in accordance herewith, the consideration payable as herein provided upon a Purchase at Holder’s Option; and

 

(x)                                    the CUSIP number or numbers, as the case may be, of the Notes; and

 

(xi)                                 the names and telephonic contact information for no more than three registered broker-dealers affiliated with a reputable, nationally recognized brokerage house (collectively, the “Brokers”).

 

At the Company’s request, upon 5 days’ notice prior to the date of delivery of the notice of redemption, the Trustee shall mail such Option Purchase Notice in the Company’s name and at the Company’s expense; provided, however, that the form and content of such Option Purchase Notice shall be prepared by the Company.

 

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

 

(c)                                   Subject to the provisions of this Section 3.10, the Company shall pay, or cause to be paid, the Option Purchase Price, plus accrued and unpaid interest, if any, to, but excluding, the applicable Option Purchase Date, with respect to each Note subject to Purchase at Holder’s Option to the Holder thereof as promptly as practicable, but in no event later than the applicable Option Purchase Date and the time such Note (together with all necessary endorsements) is surrendered to the Paying Agent; provided, however, that such accrued and unpaid interest shall be paid, on the applicable interest payment date, to the Holder of record of such Note at the close of business on the record date immediately preceding such Option Purchase Date.

 

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(d)                                  Prior to 11:00 a.m. (New York City time) on or prior to the Business Day prior to the applicable Option Purchase Date, the Company shall deposit with the Trustee or with the Paying Agent (or, if the Company or a Subsidiary or an Affiliate of either of them is acting as the Paying Agent, shall segregate and hold in trust as provided for in Section 2.04) an amount of money in immediately available funds if deposited on such Business Day sufficient to pay the Option Purchase Price, plus accrued and unpaid interest, if any, to, but excluding, such Option Purchase Date, with respect to all of the Notes that are to be purchased by the Company on such Option Purchase Date pursuant to a Purchase at Holder’s Option.  The Paying Agent shall return to the Company, as soon as practicable, any money not required for that purpose.

 

(e)                                   Once the Purchase Notice has been duly delivered in accordance with this Section 3.10, the Notes to be purchased pursuant to the Purchase at Holder’s Option shall, on the applicable Option Purchase Date, become due and payable in accordance herewith, and, on and after such date (unless there shall be a Default in the payment of the consideration payable as herein provided upon a Purchase at Holder’s Option), such Notes shall cease to bear interest, and all rights of the Holders of such Notes shal