Document:

Exhibit 10.1

Execution Copy

 

PRICELINE.COM INCORPORATED

ISSUER

 

AMERICAN STOCK TRANSFER & TRUST COMPANY

TRUSTEE

 

INDENTURE

Dated as of September 27, 2006

 

$150,000,000

0.50% CONVERTIBLE SENIOR NOTES DUE 2011

$150,000,000

0.75% CONVERTIBLE SENIOR NOTES DUE 2013

 

 

 

 

TABLE OF CONTENTS

	
  

  	
   

  	
  Page

  	
   

  
	
  ARTICLE I DEFINITIONS
  AND OTHER PROVISIONS OF GENERAL APPLICATION

  	
   

  	
  1

  	
   

  
	
  Section 1.1
  Definitions

  	
   

  	
  1

  	
   

  
	
  Section 1.2
  Compliance Certificates and Opinions

  	
   

  	
  13

  	
   

  
	
  Section 1.3 Form
  of Documents Delivered to the Trustee

  	
   

  	
  14

  	
   

  
	
  Section 1.4 Acts
  of Holders of Securities

  	
   

  	
  14

  	
   

  
	
  Section 1.5
  Notices, Etc. to the Trustee and Company

  	
   

  	
  16

  	
   

  
	
  Section 1.6
  Notice to Holders of Securities; Waiver

  	
   

  	
  17

  	
   

  
	
  Section 1.7
  Effect of Headings and Table of Contents

  	
   

  	
  17

  	
   

  
	
  Section 1.8
  Successors and Assigns

  	
   

  	
  17

  	
   

  
	
  Section 1.9
  Separability Clause

  	
   

  	
  17

  	
   

  
	
  Section 1.10
  Benefits of Indenture

  	
   

  	
  17

  	
   

  
	
  Section 1.11
  Governing Law

  	
   

  	
  18

  	
   

  
	
  Section 1.12
  Legal Holidays

  	
   

  	
  18

  	
   

  
	
  Section 1.13
  Conflict With Trust Indenture Act

  	
   

  	
  18

  	
   

  
	
  ARTICLE II SECURITY
  FORMS

  	
   

  	
  18

  	
   

  
	
  Section 2.1 Form
  Generally

  	
   

  	
  18

  	
   

  
	
  Section 2.2 Form
  of Security

  	
   

  	
  20

  	
   

  
	
  Section 2.3 Form
  of Certificate of Authentication

  	
   

  	
  37

  	
   

  
	
  Section 2.4 Form
  of Notice of Conversion

  	
   

  	
  38

  	
   

  
	
  Section 2.5 Form
  of Assignment

  	
   

  	
  39

  	
   

  
	
  ARTICLE III THE
  SECURITIES

  	
   

  	
  40

  	
   

  
	
  Section 3.1
  Title and Terms

  	
   

  	
  40

  	
   

  
	
  Section 3.2
  Denominations

  	
   

  	
  41

  	
   

  
	
  Section 3.3
  Execution, Authentication, Delivery and Dating

  	
   

  	
  41

  	
   

  
	
  Section 3.4
  Global Securities; Non-global Securities; Book-entry Provisions

  	
   

  	
  41

  	
   

  
	
  Section 3.5
  Registration; Registration of Transfer and Exchange; Restrictions on Transfer

  	
   

  	
  43

  	
   

  
	
  Section 3.6
  Mutilated, Destroyed, Lost or Stolen Securities

  	
   

  	
  46

  	
   

  
	
  Section 3.7
  Payment of Interest; Interest Rights Preserved

  	
   

  	
  47

  	
   

  
	
  Section 3.8
  Persons Deemed Owners

  	
   

  	
  48

  	
   

  
	
  Section 3.9
  Cancellation

  	
   

  	
  48

  	
   

  
	
  Section 3.10
  Computation of Interest

  	
   

  	
  48

  	
   

  
	
  Section 3.11
  CUSIP Numbers

  	
   

  	
  49

  	
   

  
	
  ARTICLE IV SATISFACTION
  AND DISCHARGE

  	
   

  	
  49

  	
   

  
	
  Section 4.1
  Satisfaction and Discharge of Indenture

  	
   

  	
  49

  	
   

  
	
  Section 4.2
  Application of Trust Money

  	
   

  	
  50

  	
   

  

 

 ii
 

 

 

	
  ARTICLE V REMEDIES

  	
   

  	
  50

  	
   

  
	
  Section 5.1
  Events of Default

  	
   

  	
  50

  	
   

  
	
  Section 5.2
  Acceleration of Maturity; Rescission and Annulment

  	
   

  	
  52

  	
   

  
	
  Section 5.3
  Collection of Indebtedness and Suits for Enforcement by Trustee

  	
   

  	
  52

  	
   

  
	
  Section 5.4
  Trustee May File Proofs of Claim

  	
   

  	
  53

  	
   

  
	
  Section 5.5
  Trustee May Enforce Claims Without Possession of Securities

  	
   

  	
  54

  	
   

  
	
  Section 5.6
  Application of Money Collected

  	
   

  	
  54

  	
   

  
	
  Section 5.7
  Limitation on Suits

  	
   

  	
  55

  	
   

  
	
  Section 5.8
  Unconditional Right of Holders to Receive Principal and Interest and to
  Convert

  	
   

  	
  55

  	
   

  
	
  Section 5.9
  Restoration of Rights and Remedies

  	
   

  	
  55

  	
   

  
	
  Section 5.10
  Rights and Remedies Cumulative

  	
   

  	
  56

  	
   

  
	
  Section 5.11
  Delay or Omission Not Waiver

  	
   

  	
  56

  	
   

  
	
  Section 5.12
  Control by Holders of Securities

  	
   

  	
  56

  	
   

  
	
  Section 5.13
  Waiver of Past Defaults

  	
   

  	
  56

  	
   

  
	
  Section 5.14
  Undertaking for Costs

  	
   

  	
  57

  	
   

  
	
  Section 5.15
  Waiver of Stay, Usury or Extension Laws

  	
   

  	
  57

  	
   

  
	
  ARTICLE VI THE TRUSTEE

  	
   

  	
  57

  	
   

  
	
  Section 6.1
  Certain Duties and Responsibilities

  	
   

  	
  57

  	
   

  
	
  Section 6.2
  Notice of Defaults

  	
   

  	
  58

  	
   

  
	
  Section 6.3
  Certain Rights of Trustee

  	
   

  	
  59

  	
   

  
	
  Section 6.4 Not
  Responsible for Recitals or Issuance of Securities

  	
   

  	
  60

  	
   

  
	
  Section 6.5 May
  Hold Securities, Act as Trustee under Other Indentures

  	
   

  	
  60

  	
   

  
	
  Section 6.6
  Money Held in Trust

  	
   

  	
  60

  	
   

  
	
  Section 6.7
  Compensation and Reimbursement

  	
   

  	
  60

  	
   

  
	
  Section 6.8
  Corporate Trustee Required; Eligibility

  	
   

  	
  61

  	
   

  
	
  Section 6.9
  Resignation and Removal; Appointment of Successor

  	
   

  	
  61

  	
   

  
	
  Section 6.10
  Acceptance of Appointment by Successor

  	
   

  	
  63

  	
   

  
	
  Section 6.11
  Merger, Conversion, Consolidation or Succession to Business

  	
   

  	
  63

  	
   

  
	
  Section 6.12
  Authenticating Agents

  	
   

  	
  63

  	
   

  
	
  Section 6.13
  Disqualification; Conflicting Interests

  	
   

  	
  65

  	
   

  
	
  Section 6.14
  Preferential Collection of Claims Against Company

  	
   

  	
  65

  	
   

  
	
  ARTICLE VII
  CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

  	
   

  	
  65

  	
   

  
	
  Section 7.1
  Company May Consolidate, Etc. Only on Certain Terms

  	
   

  	
  65

  	
   

  
	
  Section 7.2
  Successor Substituted

  	
   

  	
  66

  	
   

  
	
  ARTICLE VIII
  SUPPLEMENTAL INDENTURES

  	
   

  	
  66

  	
   

  
	
  Section 8.1
  Supplemental Indentures Without Consent of Holders of Securities

  	
   

  	
  66

  	
   

  
	
  Section 8.2
  Supplemental Indentures with Consent of Holders of Securities

  	
   

  	
  68

  	
   

  
	
  Section 8.3
  Execution of Supplemental Indentures

  	
   

  	
  69

  	
   

  
	
  Section 8.4
  Effect of Supplemental Indentures

  	
   

  	
  69

  	
   

  

 

 iii
 

 

 

	
  Section 8.5 Reference in
  Securities to Supplemental Indentures

  	
   

  	
  69

  	
   

  
	
  Section 8.6
  Notice of Supplemental Indentures

  	
   

  	
  69

  	
   

  
	
  ARTICLE IX HOLDERS
  LISTS AND REPORTS BY TRUSTEE AND COMPANY

  	
   

  	
  70

  	
   

  
	
  Section 9.1
  Company to Furnish Trustee Names and Addresses of Holders.

  	
   

  	
  70

  	
   

  
	
  Section 9.2
  Preservation of Information

  	
   

  	
  70

  	
   

  
	
  Section 9.3
  Reports by Trustee

  	
   

  	
  70

  	
   

  
	
  Section 9.4
  Reports by Company

  	
   

  	
  71

  	
   

  
	
  ARTICLE X COVENANTS

  	
   

  	
  71

  	
   

  
	
  Section 10.1
  Payment of Principal and Interest

  	
   

  	
  71

  	
   

  
	
  Section 10.2
  Maintenance of Offices or Agencies

  	
   

  	
  71

  	
   

  
	
  Section 10.3
  Money for Security Payments to Be Held in Trust

  	
   

  	
  72

  	
   

  
	
  Section 10.4
  Existence

  	
   

  	
  73

  	
   

  
	
  Section 10.5
  Statement by Officers as to Default

  	
   

  	
  73

  	
   

  
	
  Section 10.6
  Delivery of Certain Information

  	
   

  	
  74

  	
   

  
	
  Section 10.7
  Resale of Certain Securities

  	
   

  	
  74

  	
   

  
	
  Section 10.8
  Registration Rights

  	
   

  	
  74

  	
   

  
	
  Section 10.9
  Waiver of Certain Covenants

  	
   

  	
  75

  	
   

  
	
  ARTICLE XI RESERVED

  	
   

  	
   

  	
   

  
	
  ARTICLE XII CONVERSION
  OF SECURITIES

  	
   

  	
  76

  	
   

  
	
  Section 12.1
  Conversion Privilege and Conversion Rate

  	
   

  	
  76

  	
   

  
	
  Section 12.2
  Exercise of Conversion Privilege

  	
   

  	
  79

  	
   

  
	
  Section 12.3
  Fractions of Shares

  	
   

  	
  83

  	
   

  
	
  Section 12.4
  Adjustment of Conversion Rate

  	
   

  	
  83

  	
   

  
	
  Section 12.5
  Notice of Adjustments of Conversion Rate

  	
   

  	
  91

  	
   

  
	
  Section 12.6
  Notice of Certain Corporate Action

  	
   

  	
  91

  	
   

  
	
  Section 12.7
  Company to Reserve Common Stock

  	
   

  	
  92

  	
   

  
	
  Section 12.8
  Taxes on Conversions

  	
   

  	
  92

  	
   

  
	
  Section 12.9
  Certain Covenants

  	
   

  	
  93

  	
   

  
	
  Section 12.10
  Cancellation of Converted Securities

  	
   

  	
  93

  	
   

  
	
  Section 12.11
  Provision in Case of Consolidation, Merger or Sale of Assets

  	
   

  	
  93

  	
   

  
	
  Section 12.12
  Responsibility of Trustee for Conversion Provisions

  	
   

  	
  95

  	
   

  
	
  ARTICLE XIII DEFEASANCE

  	
   

  	
  95

  	
   

  
	
  Section 13.1
  Company’s Option to Effect Defeasance.

  	
   

  	
  95

  	
   

  
	
  Section 13.2
  Defeasance and Discharge.

  	
   

  	
  95

  	
   

  
	
  Section 13.3
  Conditions to Defeasance.

  	
   

  	
  96

  	
   

  
	
  Section 13.4
  Deposited Money and U.S. Government Obligations to Be Held in Trust;
  Miscellaneous Provisions.

  	
   

  	
  97

  	
   

  
	
  Section 13.5
  Reinstatement.

  	
   

  	
  98

  	
   

  

 

 iv
 

 

 

	
  ARTICLE XIV REPURCHASE OF
  SECURITIES

  	
   

  	
  98

  	
   

  
	
  Section 14.1 Right to
  Require Repurchase Upon a Designated Event

  	
   

  	
  98

  	
   

  

 

 v

 

 

CROSS-REFERENCE
TABLE*

	
  Trust Indenture

    Act Section

  	
   

  	
   

  	
   

  	
  Indenture

  Section

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  310

  	
  (a)(1)

  	
   

  	
  6.8

  	
   

  
	
   

  	
  (a)(2)

  	
   

  	
  6.8

  	
   

  
	
   

  	
  (a)(3)

  	
   

  	
  n/a

  	
   

  
	
   

  	
  (a)(4)

  	
   

  	
  n/a

  	
   

  
	
   

  	
  (a)(5)

  	
   

  	
  6.8

  	
   

  
	
   

  	
  (b)

  	
   

  	
  6.13, 6.9

  	
   

  
	
   

  	
  (c)

  	
   

  	
  n/a

  	
   

  
	
  311

  	
  (a)

  	
   

  	
  6.14

  	
   

  
	
   

  	
  (b)

  	
   

  	
  6.14

  	
   

  
	
   

  	
  (c)

  	
   

  	
  n/a

  	
   

  
	
  312

  	
  (a)

  	
   

  	
  9.1

  	
   

  
	
   

  	
  (b)

  	
   

  	
  9.2

  	
   

  
	
   

  	
  (c)

  	
   

  	
  9.2

  	
   

  
	
  313

  	
  (a)

  	
   

  	
  9.3

  	
   

  
	
   

  	
  (b)(1)

  	
   

  	
  9.3

  	
   

  
	
   

  	
  (b)(2)

  	
   

  	
  9.3

  	
   

  
	
   

  	
  (c)

  	
   

  	
  9.3

  	
   

  
	
   

  	
  (d)

  	
   

  	
  9.4

  	
   

  
	
  314

  	
  (a)

  	
   

  	
  9.4

  	
   

  
	
   

  	
  (b)

  	
   

  	
  n/a

  	
   

  
	
   

  	
  (c)(1)

  	
   

  	
  1.2

  	
   

  
	
   

  	
  (c)(2)

  	
   

  	
  1.2

  	
   

  
	
   

  	
  (c)(3)

  	
   

  	
  n/a

  	
   

  
	
   

  	
  (d)

  	
   

  	
  n/a

  	
   

  
	
   

  	
  (e)

  	
   

  	
  1.2

  	
   

  
	
   

  	
  (f)

  	
   

  	
  n/a

  	
   

  
	
  315

  	
  (a)

  	
   

  	
  6.1

  	
   

  
	
   

  	
  (b)

  	
   

  	
  6.2, 10.5

  	
   

  
	
   

  	
  (c)

  	
   

  	
  6.3

  	
   

  
	
   

  	
  (d)

  	
   

  	
  6.1

  	
   

  
	
   

  	
  (e)

  	
   

  	
  5.14

  	
   

  
							

 

	
  316(a)(last sentence)

  	
   

  	
  12.4

  	
   

  
	
   

  	
  (a)(1)(A)

  	
   

  	
  5.12

  	
   

  
	
   

  	
  (a)(1)(B)

  	
   

  	
  5.13

  	
   

  
	
   

  	
  (a)(2)

  	
   

  	
  n/a

  	
   

  
	
   

  	
  (b)

  	
   

  	
  5.8

  	
   

  
	
   

  	
  (c)

  	
   

  	
  2.2

  	
   

  

 

 vi
 

 

 

	
  317

  	
  (a)(1)

  	
   

  	
  5.3

  
	
   

  	
  (a)(2)

  	
   

  	
  5.4

  
	
   

  	
  (b)

  	
   

  	
  6.2

  
	
  318

  	
  (a)

  	
   

  	
  1.13

  
	
   

  	
  (b)

  	
   

  	
  n/a

  
	
   

  	
  (c)

  	
   

  	
  1.13

  

_________________

“n/a” means not
applicable.

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

 

 vii

INDENTURE, dated as of September 27, 2006, between
PRICELINE.COM INCORPORATED, a corporation duly organized and existing under the
laws of the State of Delaware, having its principal office at 800 Connecticut
Avenue, Norwalk, Connecticut 06854 (herein called the “Company”), and AMERICAN
STOCK TRANSFER & TRUST COMPANY, a
New York corporation, as Trustee hereunder (herein called the
“Trustee”).

RECITALS OF THE COMPANY

The Company has duly authorized the creation of an issue of its 0.50%
Convertible Senior Notes due September 30, 2011 (herein called the “2011
Notes”) of substantially the tenor and amount hereinafter set forth, and to
provide therefor the Company has duly authorized the execution and delivery of
this Indenture.

The Company has duly authorized the creation of an issue of its 0.75%
Convertible Senior Notes due September 30, 2013 (herein called the “2013 Notes”
and, together with the 2011 Notes, the “Securities”) of substantially the tenor
and amount hereinafter set forth, and to provide therefor the Company has duly
authorized the execution and delivery of this Indenture.

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

                NOW,
THEREFORE, THIS INDENTURE WITNESSETH:

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

ARTICLE I

DEFINITIONS
AND OTHER PROVISIONS OF

GENERAL APPLICATION

Section 1.1             Definitions

 

For all purposes of this Indenture, except as
otherwise expressly provided or unless the context otherwise requires:

(1)           the
terms defined in this Article have the meanings assigned to them in this
Article and include the plural as well as the singular;

 

(2)           all
accounting terms not otherwise defined herein have the meanings assigned to
them in accordance with generally accepted accounting principles in the United
States, and, except as otherwise herein expressly provided, the term “generally
accepted accounting principles” with respect to any computation required or
permitted hereunder shall mean such accounting principles as are generally
accepted at the date of such computation; and

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

“Act,” when used with respect to any Holder of a
Security, has the meaning specified in Section 1.4. 

“Additional 2011 Notes” means an unlimited amount of
2011 Notes (other than the Initial 2011 Notes) issued under this Indenture in
accordance with Section 3.3, as part of the same series as the Initial 2011
Notes.

“Additional 2013 Notes” means an unlimited amount of
2013 Notes (other than the Initial 2013 Notes) issued under this Indenture in
accordance with Section 3.3, as part of the same series as the Initial 2013
Notes.

“Additional Securities” means the Additional 2011
Notes and the Additional 2013 Notes.

“Additional Shares” has the meaning specified in
Section 12.1.

“Adjustment Determination Date” has the meaning
specified in Section 12.4.

“Adjustment Event” has the meaning specified in
Section 12.4.

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

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

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

“Authenticating Agent” means any Person authorized
pursuant to Section 6.12 to act on behalf of the Trustee to authenticate
Securities.

 2
 

 

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

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

“Business Day,” when used with respect to any Place of
Payment, Place of Conversion or any other place, as the case may be, means each
Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which
banking institutions in such Place of Payment, Place of Conversion or other
place, as the case may be, are authorized or obligated by law or executive
order to close.

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

“Cash Settlement Notice Period” has the meaning
specified in Section 12.2.

“Closing Price Per Share” means, with respect to the
Common Stock, for any day, (i) the last reported sale price regular way on The
Nasdaq National Market or, (ii) if the Common Stock is not quoted on The Nasdaq
National Market, the last reported sale price regular way per share or, in case
no such reported sale takes place on such day, the average of the reported
closing bid and asked prices regular way, in either case, on the principal
national securities exchange on which the Common Stock is listed or admitted to
trading, or (iii) if the Common Stock is not quoted on The Nasdaq National
Market or listed or admitted to trading on any national securities exchange,
the average of the closing bid prices in the over-the-counter market as
furnished by any New York Stock Exchange member firm selected from time to time
by the Company for that purpose.

“Code” has the meaning specified in Section 2.1.

“Common Stock” means the Common Stock, par value
$0.008 per share, of the Company authorized at the date of this instrument as
originally executed or as such stock may be constituted from time to time.  Subject to the provisions of
Section 12.11, shares issuable upon conversion of Securities shall include
only shares of Common Stock or shares of any class or classes of common stock
resulting from any reclassification or reclassifications thereof; provided, however, that if at any time there shall be more
than one such resulting class, the shares so issuable on conversion of
Securities shall include shares of all such classes, and the shares of each such
class then so issuable 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.

“common stock” includes any stock of any class of
capital stock which has no preference in respect of dividends or of amounts
payable in the event of any voluntary or involuntary liquidation,

 3
 

 

dissolution or winding up of the issuer thereof and
which is not subject to redemption by the issuer thereof.

“Company” means the Person named as the “Company” in
the first paragraph of this instrument until a successor Person shall have
become such pursuant to the applicable provisions of this Indenture, and
thereafter “Company” shall mean such successor Person.

“Company Request” or “Company Order” means a written
request or order signed in the name of the Company by (i) its Chairman of
the Board, its Chief Executive Officer, its President or an Executive Vice
President, and by (ii) its Chief Financial Officer, Controller or its
Corporate Secretary and delivered to the Trustee.

“Conversion Agent” means any Person authorized by the
Company to convert Securities in accordance with Article XII. The Company has
initially appointed the Trustee as its Conversion Agent pursuant to
Section 10.2.

“Conversion Cap” has the meaning specified in Section
12.2.

“Conversion Date” has the meaning specified in Section
12.2.

“Conversion Obligation” has the meaning specified in
Section 12.1.

“Conversion Price” means at any time the amount equal
to $1,000 divided by the then current Conversion Rate.

“Conversion Rate” has the meaning specified in
Section 12.1.

“Conversion Retraction Period” has the meaning
specified in Section 12.2.

“Corporate Trust Office” means the office of the
Trustee at which at any particular time the trust created by this Indenture
shall be principally administered (which at the date of this Indenture is
located at 59 Maiden Lane, New York, NY 
10038, Attention:  (i) Corporate
Trust Administration (priceline.com Incorporated, 0.50% Convertible Senior Notes due 2011), or (ii) Corporate Trust Administration
(priceline.com Incorporated, 0.75% Convertible Senior Notes due 2013).

“corporation” means a corporation, company, association,
joint-stock company or business trust.

“Daily Settlement Amount” means, for each of the 20
Trading Days during the Observation Period, 

(i)            cash
equal to the lesser of (x) $50 and the Daily Conversion Value relating to such
day; and

 4
 

 

(ii)           if
such Daily Conversion Value exceeds $50, a number of shares of Common Stock
equal to (A) the difference between such Daily Conversion Value and $50,
divided by (B) the Daily VWAP of the Common Stock for such day.

“Daily
Conversion Value” means, for each of the 20 consecutive Trading Days
during the Observation Period, one-twentieth (1/20) of the product of
(a) the applicable Conversion Rate and (b) the Daily VWAP of the
Common Stock (or the Reference Property pursuant to Section 12.11) on such
day, as determined by the Company.  Any
such determination by the Company will be conclusive absent manifest error.

“Daily VWAP” means for each of the 20 consecutive
Trading Days during the Observation Period, the per share volume-weighted
average price as displayed under the heading “Bloomberg VWAP” on Bloomberg page
PCLN <equity> AQR in respect of the period from 9:30 a.m. to 4:00 p.m.
(New York City time) on such Trading Day (or if such volume-weighted average
price is unavailable, the market value of one share of Common Stock on such
Trading Day as the Board of Directors determines in good faith using a
volume-weighted method).

“Defaulted Interest” has the meaning specified in
Section 3.7.

“Depositary” means, with respect to any Securities
(including any Global Securities), a clearing agency that is registered as such
under the Exchange Act and is designated by the Company to act as Depositary
for such Securities (or any successor securities clearing agency so
registered).

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

“Designated Event Company Notice” has the meaning
specified in Section 14.1.

“Designated Event Expiration Time” has the meaning
specified in Section 14.1.

“Designated Event Repurchase Date” has the meaning
specified in Section 14.1.

“Designated Event Repurchase Notice” has the meaning
specified in Section 14.1.

“Designated Event Repurchase Price” has the meaning
specified in Section 14.1.

“Distributed Property” has the meaning specified in
Section 12.4.

“Dollar,” “U.S. $” or “$” means a dollar or other
equivalent unit in such coin or currency of the United States as at the time
shall be legal tender for the payment of public and private debts.

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

“Effective Date” has the meaning specified in Section
12.1.

“Elected Cash Value” has the meaning specified in
Section 12.2.

 5
 

 

“Event of Default” has the meaning specified in
Section 5.1.

“Exchange Act” means the United States Securities
Exchange Act of 1934 (or any successor statute), as amended from time to time.

“Ex-Dividend Date” means, (a) with respect to
Section 12.1(b), the first date upon which a sale of the Common Stock does
not automatically transfer the right to receive the relevant dividend from the
seller of the Common Stock to its buyer, and (b) in all other cases, with
respect to any issuance or distribution on the Common Stock or any other equity
security, the first date on which the shares of Common Stock or such other
equity security trade on the applicable exchange or in the applicable market,
regular way, without the right to receive such issuance or distribution.

“Fundamental Change” will
be deemed to have occurred at the time after the Securities are originally
issued that any of the following occurs: 

 

(1)           any Person acquires beneficial
ownership (as determined in accordance with Rule 13d-3 under the Exchange Act),
directly or indirectly, through a purchase, merger or other acquisition
transaction or series of transactions, of shares of the Company’s Capital Stock
entitling the person to exercise 50% or more of the total voting power of all
shares of the Company’s Capital Stock entitled to vote generally in elections
of directors, other than an acquisition by the Company, any of the Company’s
Subsidiaries or any of the Company’s employee benefit plans;

 

(2)           the Company merges, or consolidates
with or into any other Person (other than a Subsidiary), another Person merges
with or into the Company, or the Company conveys, sells, transfers or leases
all or substantially all of the Company’s assets to another Person, other than
any transaction:

 

(a)     that does
not result in a reclassification, conversion, exchange or cancellation of
Company’s outstanding Common Stock;

 

(b)     pursuant
to which the holders of the Company’s Common Stock immediately prior to the
transaction have the entitlement to exercise, directly or indirectly, 50% or
more of the voting power of all shares of Capital Stock entitled to vote
generally in the election of directors of the continuing or surviving
corporation immediately after the transaction; or

 

(c)     which is
effected solely to change the Company’s jurisdiction of incorporation and
results in a reclassification, conversion or exchange of outstanding shares of
the Company’s Common Stock solely into shares of common stock of the surviving
entity.

 

However, notwithstanding the foregoing, Holders will
not have the right to require the Company to repurchase any Securities under
clauses (1) or (2) above (and the Company will not be required to deliver
the Designated Event Repurchase Notice incidental thereto) if at least 90% of
the consideration paid for the Company’s Common Stock (excluding cash payments
for fractional shares and cash payments made pursuant to dissenters’ appraisal
rights) in a merger or consolidation or a conveyance, sale, transfer or lease
otherwise constituting a Fundamental Change under clause (2)

 6
 

 

above consists of shares of Capital Stock traded on
the New York Stock Exchange or another U.S. national securities exchange or
quoted on The Nasdaq National Market or another established automated
over-the-counter trading market in the United States (or will be so traded or
quoted immediately following the merger, consolidation, conveyance, sale,
transfer or lease) and, as a result of the merger, consolidation, conveyance,
sale, transfer or lease, the Securities become convertible into such shares of
such Capital Stock.

“Global Security” means a Security that is registered
in the Security Register in the name of a Depositary or a nominee thereof.

“Goldman Group” has the meaning specified in Section
12.1.

“Holder” means the Person in whose name the Security
is registered in the Security Register.

“Indenture” means this instrument as originally
executed or as it may from time to time be supplemented or amended by one or
more indentures supplemental hereto entered into pursuant to the applicable
provisions hereof, including, for all purposes of this instrument and any such
supplemental indenture, the provisions of the Trust Indenture Act that are
deemed to be a part of and govern this instrument and any such supplemental
indenture, respectively.

“Initial 2011 Notes” means the first $150,000,000
aggregate principal amount of 2011 Notes issued under this Indenture on the
date hereof.  The Initial 2011 Notes and
the Additional 2011 Notes shall be treated as a single class for all purposes
under this Indenture, and unless the context otherwise requires, all references
to the 2011 Notes shall include the Initial 2011 Notes and any Additional 2011
Notes.

“Initial 2013 Notes” means the first $150,000,000
aggregate principal amount of 2013 Notes issued under this Indenture on the
date hereof.  The Initial 2013 Notes and
the Additional 2013 Notes shall be treated as a single class for all purposes
under this Indenture, and unless the context otherwise requires, all references
to the 2013 Notes shall include the Initial 2013 Notes and any Additional 2013
Notes.

“Initial Purchasers” means Goldman, Sachs & Co.
and Merrill Lynch, Pierce, Fenner & Smith Incorporated, and any initial
purchasers of Additional Securities.

“Initial Securities” means the Initial 2011 Notes and
the Initial 2013 Notes.

“Interest Payment Date” means the Stated Maturity of
an installment of interest on the Securities.

“Issue Date” means September 27, 2006.

“Last Reported Sale Price” means, with respect to the
Common Stock or any other security for which a Last Reported Sale Price must be
determined, on any date, the closing sale price per share of the Common Stock
or unit of such other security (or, if no closing sale price is reported, the
average of the last bid and last ask prices or, if more than one in either
case, the average of the

 7
 

 

average last bid and the average last ask prices) on
such date as reported by The Nasdaq National Market, or if the Common Stock is
not then traded on The Nasdaq National Market, on the principal U.S. national
or regional securities exchange or automated quotation service on which it is
then traded or quoted, if any. If the Common Stock or such other security is
not listed for trading on a United States national or regional securities
exchange and not reported by The Nasdaq National Market on the relevant date,
the Last Reported Sale Price shall be the last quoted bid price per share of
Common Stock or such other security in the over-the-counter market on the
relevant date, as reported by the National Quotation Bureau or similar
organization. In absence of such quotation, the Last Reported Sale Price shall
be the average of the mid-point of the last bid and asked prices for the Common
Stock or such other security on the relevant date from each of at least three
nationally recognized independent investment banking firms selected from time
to time by the Board of Directors of the Company for that purpose. The Last
Reported Sale Price shall be determined without reference to extended or after
hours trading. Any such determination by the Company will be conclusive absent
manifest error.

“Maturity,” when used with respect to any Security,
means the date on which the principal of such Security becomes due and payable
as therein or herein provided, whether at the Stated Maturity or by declaration
of acceleration, exercise of the repurchase right set forth in Article XIV or
otherwise.

“Measurement Period” has the meaning specified in
Section 12.1.

“Merger Event” has the meaning specified in Section
12.11.

“Notice of Conversion” has the meaning specified in
Section 12.2.

“Observation Period” means the 20 consecutive Trading
Day period beginning on and including the second Trading Day after the related
Conversion Date in respect of such Security.

“Officers’ Certificate” means a certificate signed by
(i) the Chairman of the Board or the Chief Executive Officer, the President or
an Executive Vice President and by (ii) the Chief Financial Officer,
Controller or the Corporate Secretary and delivered to the Trustee. One of the
Officers signing an Officers’ Certificate given pursuant to Section 10.5
shall be the principal executive, financial or accounting officer of the
Company.

“Opinion of Counsel” means a written opinion of
counsel, who may be counsel for the Company and who shall be acceptable to the
Trustee.

“Outstanding,” when used with respect to Securities,
means, as of the date of determination, all Securities theretofore
authenticated and delivered under this Indenture, except:

                                                                                                             (i)        Securities
theretofore canceled by the Trustee or delivered to the Trustee for
cancellation;

                                                                                                          (ii)        Securities
for the payment of which money in the necessary amount has been theretofore
deposited with the Trustee or any Paying Agent (other than the

 8
 

 

 

Company) in trust or set
aside and segregated in trust by the Company (if the Company shall act as its
own Paying Agent) for the Holders of such Securities;

                                                                                                       (iii)        Securities
which have been paid pursuant to Section 3.6 or in exchange for or in lieu
of which other Securities have been authenticated and delivered pursuant to
this Indenture, other than any such Securities in respect of which there shall
have been presented to the Trustee proof satisfactory to it that such
Securities are held by a bona fide purchaser in whose hands such Securities are
valid obligations of the Company; and

                                                                                                      (iv)        Securities
converted into Common Stock pursuant to Article XII;

provided, however, that, in determining whether the Holders of the
requisite principal amount of Outstanding Securities are present at a meeting
of Holders of Securities for quorum purposes or have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, Securities owned
by the Company or any other obligor upon the Securities or any Affiliate of the
Company or such other obligor shall be disregarded and deemed not to be
Outstanding, except that, in determining whether the Trustee shall be protected
in relying upon any such determination as to the presence of a quorum or upon
any such request, demand, authorization, direction, notice, consent or waiver,
only Securities which a Responsible Officer of the Trustee has been notified in
writing to be so owned shall be so disregarded. Securities so owned which have
been pledged in good faith may be regarded as Outstanding if the pledgee is not
the Company or any other obligor upon the Securities or any Affiliate of the
Company or such other obligor, and the Trustee shall be protected in relying
upon an Officer’s Certificate to such effect.

“Paying Agent” means any Person authorized by the
Company to pay the principal of or interest on any Securities on behalf of the
Company and, except as otherwise specifically set forth herein, such term shall
include the Company if it shall act as its own Paying Agent. The Company has
initially appointed the Trustee as its Paying Agent pursuant to
Section 10.2.

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

“Place of Conversion” has the meaning specified in
Section 3.1.

“Place of Payment” has the meaning specified in Section 3.1.

“Predecessor Security” of any particular Security
means every previous Security evidencing all or a portion of the same debt as
that evidenced by such particular Security; and, for the purposes of this
definition, any Security authenticated and delivered under Section 3.6 in
exchange for or in lieu of a mutilated, destroyed, lost or stolen Security
shall be deemed to evidence the same debt as the mutilated, destroyed, lost or
stolen Security.

 

 9

 

 

“Purchase Agreement” means the Purchase Agreement,
dated as of September 21, 2006, between the Company and the Initial Purchasers,
as such agreement may be amended from time to time.

“Qualified Institutional Buyer” means a “qualified
institutional buyer” as defined in Rule 144A.

“Press Release” means any press release issued by the
Company and disseminated to Reuters Business News Services and Bloomberg News
Services.

“Record Date” means any Regular Record Date or Special
Record Date.

“Record Date Period” means the period from the close
of business of any Regular Record Date next preceding any Interest Payment Date
to the opening of business on such Interest Payment Date.

“Reference Property” has the meaning specified in
Section 12.11.

“Registrable Securities” has the meaning specified in
Section 10.8.

“Registration Rights Agreement” means the Registration
Rights Agreement, dated as of September 
27, 2006, between the Company and the Initial Purchasers, as such
agreement may be amended from time to time and, with respect to any Additional
Securities, one or more registration rights agreements among the Company and
the other parties thereto, as such agreement(s) may be amended, modified or
supplemented from time to time, relating to rights given by the Company to the
purchasers of Additional Securities to register such Additional Securities
under the Securities Act.

“Regular Record Date” for interest payable in respect
of any Security on any Interest Payment Date means the close of business on
September 15 or March 15 (whether or not a Business Day), as the case may be,
next preceding such Interest Payment Date.

“Responsible Officer,” when used with respect to the
Trustee, means any officer within the Corporate Trust Office of the Trustee
with direct responsibility for the administration of this Indenture and also
means, with respect to a particular corporate trust matter, any other officer
to whom such matter is referred because of his knowledge and familiarity with
the particular subject.

“Restricted Global Security” has the meaning specified
in Section 2.1.

“Restricted Securities” means all Securities required
pursuant to Section 3.5(3) to bear any Restricted Securities Legend. Such
term includes the Restricted Global Security.

“Restricted Securities Legend” means, collectively,
the legends substantially in the forms of the legends required in the form of
Security set forth in Section 2.2 to be placed upon each Restricted
Security.

 10
 

 

 

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

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

“Rule 144A Information” has the meaning specified in
Section 10.6.

“SEC” means the United States Securities and Exchange
Commission, as from time to time constituted, created under the Exchange Act,
or, if at any time after the execution of this instrument such SEC is not
existing and performing the duties now assigned to it under the Trust Indenture
Act, then the body performing such duties at such time.

“Securities” has the meaning ascribed to it in the
first paragraph under the caption “Recitals of the Company.”  Unless the context otherwise requires, all
references to the Securities shall include the Initial Securities and any
Additional Securities.

“Securities Act” means the United States Securities
Act of 1933 (or any successor statute), as amended from time to time.

“Security Register” and “Security Registrar” have the
respective meanings specified in Section 3.5.

“Shelf Registration Statement” has the meaning
specified in the Registration Rights Agreement.

“Significant Subsidiary” means, with respect to any
Person, a Subsidiary of such Person that would constitute a “significant
subsidiary” as such term is defined under Rule 1-02 of Regulation S-X under the
Securities Act and the Exchange Act.

“Special Interest” means all special interest then
owing pursuant to the Registration Rights Agreement.

“Special Record Date” for the payment of any Defaulted
Interest means a date fixed by the Company pursuant to Section 3.7.

“Stated Maturity,” when used with respect to any
Security or any installment of interest thereon, means the date specified in
such Security as the fixed date on which the principal of such Security or such
installment of interest is due and payable.

“Stock Price” means the
price paid per share of Common Stock in connection with a Fundamental Change
pursuant to which Additional Shares shall be added to the Conversion Rate as
set forth in Section 12.1(d), which shall be equal to (i) if holders
of Common Stock receive only cash in such Fundamental Change, the cash amount
paid per share of Common Stock and (ii) in all other cases, the average of
the Last Reported Sale Prices of the Common Stock over the five consecutive 

 11
 

 

 

Trading Day period ending on
the Trading Day preceding the Effective Date of the Fundamental Change.

“Stockholder Record Date” has the meaning specified in
Section 12.4.

“Spin-Off” has the meaning specified in Section 12.4.

“Subsidiary” means a corporation more than 50% of the
outstanding voting stock of which is owned, directly or indirectly, by the
Company or by one or more other Subsidiaries, or by the Company and one or more
other Subsidiaries. For the purposes of this definition, “voting stock” means
stock or other similar interests in the corporation which ordinarily has or
have voting power for the election of directors, or persons performing similar
functions, whether at all times or only so long as no senior class of stock or
other interests has or have such voting power by reason of any contingency.

“Successor Security” of any particular Security means
every Security issued after, and evidencing all or a portion of the same debt
as that evidenced by, such particular Security; and, for the purposes of this
definition, any Security authenticated and delivered under Section 3.6 in
exchange for or in lieu of a mutilated, destroyed, lost or stolen Security
shall be deemed to evidence the same debt as the mutilated, destroyed, lost or
stolen Security.

“Termination of Trading” means the occurrence whereby
the Common Stock is neither listed for trading on a U.S. national securities
exchange nor approved for trading on The Nasdaq National Market (at a time when
The Nasdaq National Market is not a U.S. national securities exchange).

“Trading Day” means a day
during which trading in securities generally occurs on The Nasdaq National
Market or, if the Common Stock is not then quoted on The Nasdaq National
Market, on another national or regional securities exchange on which the Common
Stock is then listed or quoted or, if the Common Stock is not quoted on The
Nasdaq National Market or listed on a national or regional securities exchange
or automated quotation service, on the principal other market on which the
Common Stock is then traded or quoted.

“Trading Price” with respect
to any series of Securities, on any date of determination, means the average of
the secondary market bid quotations obtained by the Trustee for
$2.0 million principal amount of such series of Securities at
approximately 3:30 p.m., New York City time, on such determination date from
three independent nationally recognized securities dealers selected by the
Company; provided that if three
such bids cannot reasonably be obtained by the Trustee, but two such bids are
obtained, then the average of the two bids shall be used, and if only one such
bid can reasonably be obtained by the Trustee, that one bid shall be used. If
the Trustee cannot reasonably obtain at least one bid for $2.0 million
principal amount of such series of Securities from a nationally recognized
securities dealer, then the Trading Price per $1,000 principal amount of such
series of Securities will be deemed to be equal to the product of the Last
Reported Sale Price of the Common Stock (as provided to the Trustee by the
Company) and the Conversion Rate. Any such determination by the Trustee will be
conclusive absent manifest error.

 12
 

 

 

“Trigger Event” has the meaning specified in Section
12.4.

“Trust Indenture Act” means the Trust Indenture Act of
1939, and the rules and regulations thereunder, as in force at the date as of
which this instrument was executed, provided,
however, that in the event the
Trust Indenture Act of 1939 is amended after such date, “Trust Indenture Act”
means, to the extent required by any such amendment, the Trust Indenture Act of
1939, and the rules and regulations thereunder, as so amended.

“Trustee” means the Person named as the “Trustee” in
the first paragraph of this instrument until a successor Trustee shall have
become such pursuant to the applicable provisions of this Indenture, and
thereafter “Trustee” shall mean such successor Trustee.

“United States” means the United States of America
(including the States and the District of Columbia), its territories, its
possessions and other areas subject to its jurisdiction (its “possessions”
including Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake
Island and the Northern Mariana Islands).

“Unrestricted Securities Certificate” means a
certificate substantially in the form set forth in Annex A.

“U.S. Government Obligation” has the meaning specified
in Section 13.3.

Section 1.2             Compliance
Certificates and Opinions.

Upon any application or request by the Company to the
Trustee to take any action under any provision of this Indenture, the Company
shall furnish to the Trustee an Officers’ Certificate stating that all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with and an Opinion of Counsel stating that
in the opinion of such counsel all such conditions precedent, if any, have been
complied with, except that in the case of any such application or request as to
which the furnishing of such documents is specifically required by any
provision of this Indenture relating to such particular application or request,
no additional certificate or opinion need be furnished.

Every certificate or opinion with respect to
compliance with a condition or covenant provided for in this Indenture
(including certificates provided for in Section 10.5) shall include:

(1)         a statement that each
individual signing such certificate or opinion has read such covenant or
condition and the definitions herein relating thereto;

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

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

 13
 

 

 

(4)         a statement as to
whether, in the opinion of each such individual, such condition or covenant has
been complied with.

Section 1.3             Form
of Documents Delivered to the Trustee.

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

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

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

Section 1.4             Acts
of Holders of Securities.

(1)         Any request, demand,
authorization, direction, notice, consent, waiver or other action provided or
permitted by this Indenture to be given or taken by Holders of Securities may
be embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Holders in person or by an agent or proxy duly appointed
in writing; 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. The Trustee
shall promptly deliver to the Company copies of all such instruments and
records delivered to the Trustee. Such instrument or instruments (and the
action embodied therein and evidenced thereby) are herein sometimes referred to
as the “Act” of the Holders of Securities signing such instrument or
instruments. Proof of execution of any such instrument or of a writing
appointing any such agent or proxy, or of the holding by any Person of a
Security, shall be sufficient for any purpose of this Indenture and (subject to
Section 6.1) conclusive in favor of the Trustee and the Company if made in
the manner provided in this Section.

(2)         The fact and date of
the execution by any Person of any such instrument or writing may be proved by
the affidavit of a witness of such execution or by a certificate of a notary
public 

 14
 

 

 

or other
officer authorized by law to take acknowledgments of deeds, certifying that the
individual signing such instrument or writing acknowledged to him the execution
thereof. Where such execution is by a signer acting in a capacity other than
his individual capacity, such certificate or affidavit shall also constitute
sufficient proof of his authority.

(3)         The principal amount
and serial number of any Security held by any Person, and the date of his
holding the same, shall be proved by the Security Register.

(4)         The fact and date of
execution of any such instrument or writing and the authority of the Person
executing the same may also be proved in any other manner which the Trustee
deems sufficient; and the Trustee may in any instance require further proof
with respect to any of the matters referred to in this Section.

(5)         The Company may set
any day as the record date for the purpose of determining the Holders entitled
to give or take any request, demand, authorization, direction, notice, consent,
waiver or other action, or to vote on any action, authorized or permitted by
this Indenture to be given or taken by Holders. Promptly and in any case not
later than ten days after setting a record date, the Company shall notify the
Trustee and the Holders of such record date. If not set by the Company prior to
the first solicitation of a Holder made by any Person in respect of any such
action, or, in the case of any such vote, prior to such vote, the record date
for any such action or vote shall be the 30th day (or, if later, the date of
the most recent list of Holders required to be provided pursuant to
Section 9.1) prior to such first solicitation or vote, as the case may be.
With regard to any record date, the Holders on such date (or their duly
appointed agents or proxies), and only such Persons, shall be entitled to give
or take, or vote on, the relevant action, whether or not such Holders remain
Holders after such record date. Notwithstanding the foregoing, the Company
shall not set a record date for, and the provisions of this paragraph shall not
apply with respect to, any notice, declaration or direction referred to in the
next paragraph.

Upon receipt by the Trustee from any Holder of (i) any
notice of default or breach referred to in Section 5.1(5), if such default
or breach has occurred and is continuing and the Trustee shall not have given
such a notice to the Company, (ii) any declaration of acceleration referred to
in Section 5.2, if an Event of Default has occurred and is continuing and the
Trustee shall not have given such a declaration to the Company, or (iii) any
direction referred to in Section 5.12, if the Trustee shall not have taken
the action specified in such direction, then, with respect to clauses (ii) and
(iii), a record date shall automatically and without any action by the Company
or the Trustee be set for determining the Holders entitled to join in such
declaration or direction, which record date shall be the close of business on
the tenth day (or, if such day is not a Business Day, the first Business Day
thereafter) following the day on which the Trustee receives such declaration or
direction, and, with respect to clause (i), the Trustee may set any day as a
record date for the purpose of determining the Holders entitled to join in such
notice of default. Promptly after such receipt by the Trustee of any such
declaration or direction referred to in clause (ii) or (iii), and promptly
after setting any record date with respect to clause (i), and as soon as
practicable  thereafter, the Trustee
shall notify the Company and the Holders of any such record date so fixed. The
Holders on such record date (or their duly appointed agents or proxies), and
only such Persons, shall be entitled to join in such notice, declaration or
direction, whether or not such Holders remain Holders after such record date;

 15
 

 

 

provided
that, unless such notice, declaration or direction shall have become effective
by virtue of Holders of the requisite principal amount of Securities on such
record date (or their duly appointed agents or proxies) having joined therein
on or prior to the 90th day after such record date, such notice, declaration or
direction shall automatically and without any action by any Person be canceled
and of no further effect. Nothing in this paragraph shall be construed to
prevent a Holder (or a duly appointed agent or proxy thereof) from giving,
before or after the expiration of such 90-day period, a notice, declaration or
direction contrary to or different from, or, after the expiration of such
period, identical to, the notice, declaration or direction to which such record
date relates, in which event a new record date in respect thereof shall be set
pursuant to this paragraph. In addition, nothing in this paragraph shall be
construed to render ineffective any notice, declaration or direction of the
type referred to in this paragraph given at any time to the Trustee and the
Company by Holders (or their duly appointed agents or proxies) of the requisite
principal amount of Securities on the date such notice, declaration or
direction is so given.

(6)         Except as provided in
Section 5.12 and Section 5.13, any request, demand, authorization,
direction, notice, consent, election, waiver or other Act of the Holder of any
Security shall bind every future Holder of the same Security and the Holder of
every Security issued upon the registration of transfer thereof or in exchange
therefor or in lieu thereof in respect of anything done, omitted or suffered to
be done by the Trustee or the Company in reliance thereon, whether or not
notation of such action is made upon such Security.

Section 1.5             Notices,
Etc. to the Trustee and Company.

Any request, demand, authorization, direction, notice,
consent, election, waiver or other Act of Holders of Securities or other
document provided or permitted by this Indenture to be made upon, given or
furnished to, or filed with,

(1)         the Trustee by any Holder of Securities
or by the Company shall be sufficient for every purpose hereunder if made,
given, furnished or filed in writing (which may be via facsimile) to or with a
Responsible Officer of the Trustee and received at its Corporate Trust Office,
Attention: (a) Corporate Trust Administration, priceline.com Incorporated,
0.50% Convertible Senior Notes due 2011, with respect to the 2011 Notes, or (b)
Corporate Trust Administration, priceline.com Incorporated, 0.75% Convertible
Senior Notes due 2013, with respect to the 2013 Notes.

(2)         the Company by the
Trustee or by any Holder of Securities shall be sufficient for every purpose
hereunder (unless otherwise herein expressly provided) if in writing, mailed,
first-class postage prepaid, or telecopied and confirmed by mail, first-class
postage prepaid, or delivered by hand or overnight courier, addressed to the
Company at 800 Connecticut Avenue, Norwalk, Connecticut 06854, Attention:  Corporate Secretary, or at any other address
previously furnished in writing to the Trustee by the Company.

 16
 

 

 

Section 1.6             Notice
to Holders of Securities; Waiver.

 

Except as otherwise expressly provided herein, where
this Indenture provides for notice to Holders of Securities of any event, such
notice shall be sufficiently given to Holders if in writing and mailed,
first-class postage prepaid or delivered by an overnight delivery service, to
each Holder of a Security affected by such event, at the address of such Holder
as it appears in the Security Register, not earlier than the earliest date and
not later than the latest date prescribed for the giving of such notice.

Neither the failure to mail such notice, nor any
defect in any notice so mailed, to any particular Holder of a Security shall
affect the sufficiency of such notice with respect to other Holders of
Securities. In case by reason of the suspension of regular mail service or by
reason of any other cause it shall be impracticable to give such notice by
mail, then such notification to Holders of Securities as shall be made with the
approval of the Trustee, which approval shall not be unreasonably withheld,
shall constitute a sufficient notification to such Holders for every purpose
hereunder.

Such notice shall be deemed to have been given when
such notice is mailed.

Where this Indenture provides for notice in any
manner, such notice may be waived in writing by the Person entitled to receive
such notice, either before or after the event, and such waiver shall be the
equivalent of such notice. Waivers of notice by Holders of Securities shall be
filed with the Trustee, but such filing shall not be a condition precedent to
the validity of any action taken in reliance upon such waiver.

Section 1.7             Effect
of Headings and Table of Contents.

The Article and Section headings herein and the Table
of Contents are for convenience only and shall not affect the construction
hereof.

Section 1.8             Successors
and Assigns.

All covenants and agreements in this Indenture by the
Company shall bind its successors and assigns, whether so expressed or not.

Section 1.9             Separability
Clause.

In case any provision in this Indenture or the
Securities shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

Section 1.10           Benefits
of Indenture.

Nothing in this Indenture or in the Securities,
express or implied, shall give to any Person, other than the parties hereto and
their successors and assigns hereunder and the Holders of Securities, any
benefit or legal or equitable right, remedy or claim under this Indenture.

 17
 

 

 

Section 1.11           Governing
Law.

THIS INDENTURE AND THE SECURITIES SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
THE UNITED STATES OF AMERICA.

Section 1.12           Legal
Holidays.

In any case where any Interest Payment Date,
Designated Event Repurchase Date or Stated Maturity of any Security or the last
day on which a Holder of a Security has a right to convert his Security shall
not be a Business Day at a Place of Payment or Place of Conversion, as the case
may be, then (notwithstanding any other provision of this Indenture or of the
Securities) payment of principal of, or interest on, or the payment of the
Designated Event Repurchase Price with respect to, or delivery for conversion
of, such Security need not be made at such Place of Payment or Place of
Conversion, as the case may be, on or by such day, but may be made on or by the
next succeeding Business Day at such Place of Payment or Place of Conversion,
as the case may be, with the same force and effect as if made on the Interest
Payment Date or Designated Event Repurchase Date, or at the Stated Maturity or
by such last day for conversion; provided,
however, that in the case that
payment is made on such succeeding Business Day, no interest shall accrue on
the amount so payable for the period from and after such Interest Payment Date,
Designated Event Repurchase Date, Stated Maturity or last day for conversion,
as the case may be.

Section 1.13           Conflict
With Trust Indenture Act.

If any provision hereof limits, qualifies or conflicts
with a provision of the Trust Indenture Act that is required under such Act to
be a part of and govern this Indenture, the latter provision shall control. If
any provision of this Indenture modifies or excludes any provision of the Trust
Indenture Act that may be so modified or excluded, the latter provision shall
be deemed to apply to this Indenture as so modified or to be excluded, as the
case may be. Until such time as this Indenture shall be qualified under the
Trust Indenture Act, this Indenture, the Company and the Trustee shall be
deemed for all purposes hereof to be subject to and governed by the Trust
Indenture Act to the same extent as would be the case if this Indenture were so
qualified on the date hereof.

ARTICLE
II

SECURITY FORMS

Section 2.1             Form
Generally.

The Securities shall be in substantially the form set
forth in this Article, with such appropriate insertions, omissions,
substitutions and other  variations as
are required or permitted by this Indenture, and may have such letters, numbers
or other marks of identification and such legends or endorsements placed
thereon as may be required to comply with the rules of any securities exchange,
the Internal Revenue Code of 1986, as amended, and regulations thereunder (the “Code”),
or as may, consistent herewith, be determined by the officers executing such
Securities, as evidenced 

 18
 

 

 

by their execution thereof.  The Company shall furnish any such legends
and endorsements to the Trustee in writing. 
All Securities shall be in fully registered form.

The Trustee’s certificates of authentication shall be
in substantially the form set forth in Section 2.3.

Notices of Conversion shall be in substantially the
form set forth in Section 2.4.

The Securities shall be printed, lithographed,
typewritten or engraved or produced by any combination of these methods or may
be produced in any other manner permitted by the rules of any automated
quotation system or securities exchange (including on steel engraved borders if
so required by any securities exchange upon which the Securities may be listed)
on which the Securities may be quoted or listed, as the case may be, all as
determined by the officers executing such Securities, as evidenced by their
execution thereof.

Upon their original issuance, Securities issued as
contemplated by the Purchase Agreement to Qualified Institutional Buyers in
reliance on Rule 144A shall be issued in the form of one or more Global
Securities in definitive, fully registered form without interest coupons and
bearing the Restricted Securities Legend. 
Such Global Security shall be registered in the name of DTC, as
Depositary, or its nominee and deposited with the Trustee, as custodian for
DTC, for credit by DTC to the respective accounts of beneficial owners of the
Securities represented thereby (or such other accounts as they may direct).
Such Global Security, together with its Successor Securities which are Global
Securities, are collectively herein called the “Restricted Global Security.”

 

 19

 

 

Section 2.2                                                              Form
of Security

(1)         Form of 2011 Note

[FORM OF FACE OF NOTE]

[THE FOLLOWING LEGEND SHALL
APPEAR ON THE FACE OF EACH RESTRICTED SECURITY:

THIS
SECURITY AND ANY COMMON STOCK ISSUABLE UPON THE CONVERSION OF THIS SECURITY
HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE
OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF
THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE
RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT
PROVIDED BY RULE 144A THEREUNDER.

THIS
SECURITY AND ANY COMMON STOCK ISSUABLE UPON CONVERSION OF THIS SECURITY MAY NOT
BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A) (1) TO A PERSON
WHO THE TRANSFEROR REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER
WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT ACQUIRING FOR ITS OWN
ACCOUNT OR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION
MEETING THE REQUIREMENTS OF RULE 144A, (2) PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF
AVAILABLE), (3) TO AN INSTITUTIONAL INVESTOR THAT IS AN ACCREDITED INVESTOR
WITHIN THE MEANING OF RULE 501 (A)(1), (2), (3) OR (7) OF REGULATION D UNDER
THE SECURITIES ACT PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT (IF AVAILABLE) OR (4) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT, AND (B) IN ACCORDANCE WITH ALL APPLICABLE
SECURITIES LAWS OF THE STATES OF THE UNITED STATES AND OTHER JURISDICTIONS.

THIS SECURITY, ANY SHARES OF COMMON STOCK ISSUABLE
UPON ITS CONVERSION AND ANY RELATED DOCUMENTATION MAY BE AMENDED OR
SUPPLEMENTED FROM TIME TO TIME TO MODIFY THE RESTRICTIONS ON RESALES AND OTHER
TRANSFERS OF THIS SECURITY AND ANY SUCH SHARES TO REFLECT ANY CHANGE IN
APPLICABLE LAW OR REGULATION (OR THE INTERPRETATION THEREOF) OR IN PRACTICES
RELATING TO THE RESALE OR TRANSFER OF RESTRICTED SECURITIES GENERALLY. THE
HOLDER OF THIS SECURITY AND SUCH SHARES SHALL BE DEEMED BY THE ACCEPTANCE OF
THIS 

 20
 

 

 

SECURITY AND ANY SUCH SHARES TO HAVE AGREED TO ANY
SUCH AMENDMENT OR SUPPLEMENT.]

[THE FOLLOWING LEGEND SHALL APPEAR ON THE FACE OF
EACH GLOBAL SECURITY:

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE
MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME
OF THE DEPOSITARY OR A NOMINEE OF THE DEPOSITARY, WHICH MAY BE TREATED BY THE
COMPANY, THE TRUSTEE AND ANY AGENT THEREOF AS OWNER AND HOLDER OF THIS SECURITY
FOR ALL PURPOSES.

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

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN
PART FOR SECURITIES IN DEFINITIVE REGISTERED FORM IN THE LIMITED CIRCUMSTANCES
REFERRED TO IN THE INDENTURE, THIS GLOBAL SECURITY MAY NOT BE TRANSFERRED
EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A
NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE
DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY
OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.]

 21
 

 

 

PRICELINE.COM
INCORPORATED

0.50% Convertible Senior Notes due 2011 

	
  

  	
   

  
	
  No.

  	
  $

  

CUSIP No.             741503AF3

PRICELINE.COM
INCORPORATED, a corporation duly organized and existing under the laws of the
State of Delaware (herein called the “Company,” which term includes any
successor Person under the Indenture referred to on the reverse hereof), for
value received, hereby promises to pay to _________________, or registered
assigns, the principal sum of ________ United States Dollars (U.S. $______ ) [if this Security is a Global Security, then insert — (which
principal amount may from time to time be decreased to such other principal
amounts by adjustments made on the records of the Trustee hereinafter referred
to in accordance with the Indenture)] on September
30, 2011, and to pay interest thereon, from September 27, 2006, or from the
most recent Interest Payment Date (as defined below) to which interest has been
paid or duly provided for, semi-annually in arrears on March 30 and September
30 in each year (each, an “Interest Payment Date”), commencing March 30, 2007,
at the rate of 0.50% per annum, until the principal hereof is due, and at the
same rate on any overdue principal and, to the extent permitted by law, on any
overdue interest. The interest so payable, and punctually paid or duly provided
for, on any Interest Payment Date will, as provided in the Indenture, be paid
to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest, which shall be the March 15 or September 15 (whether or not
a Business Day), as the case may be, next preceding such Interest Payment
Date.  Except as otherwise provided in
the Indenture, any such interest not so punctually paid or duly provided for
will forthwith cease to be payable to the Holder on such Regular Record Date
and may either be paid to the Person in whose name this Security (or one or
more Predecessor Securities) is registered at the close of business on a
Special Record Date for the payment of such Defaulted Interest to be fixed by
the Company, notice whereof shall be given to Holders of Securities not less
than 10 days prior to the Special Record Date, or be paid at any time in any
other lawful manner not inconsistent with the requirements of any automated
quotation system or securities exchange on which the Securities may be quoted
or listed, and upon such notice as may be required by such exchange, all as
more fully provided in the Indenture. Payments of principal shall be made upon
the surrender of  this Security at the
option of the Holder at the Corporate Trust Office of the Trustee, or at such
other office or agency of the Company as may be designated by it for such
purpose in the Borough of Manhattan, The City of  New York, in such lawful monies of the United
States of America as at the time of payment shall be legal tender for the
payment of public and private debts, or at such other offices or agencies as
the Company may designate, by United States Dollar check drawn on, or wire
transfer to, a United States Dollar account (such a transfer to be made only to
a Holder of an aggregate principal amount of Securities in excess of U.S.
$2,000,000 and only if such Holder shall have furnished wire instructions in
writing to the Trustee no later than 15 days prior to the relevant payment
date). Payment of interest on this Security may be made by United States Dollar
check mailed to the address of the Person entitled thereto as such address
shall appear in the Security Register, or, upon written application by 

 

 22
 

 

the Holder to the
Security Registrar setting forth wire instructions not later than the relevant
Record Date, by transfer to a United States Dollar account (such a transfer to
be made only to a Holder of an aggregate principal amount of Securities in
excess of U.S. $2,000,000 and only if such Holder shall have furnished wire
instructions in writing to the Trustee no later than 15 days prior to the
relevant payment date).

Except as specifically provided herein and in the
Indenture, the Company shall not be required to make any payment with respect
to any tax, assessment or other governmental charge imposed by any government
or any political subdivision or taxing authority thereof or therein.

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

Unless the certificate of authentication hereon has
been executed by the Trustee referred to on the reverse hereof or an
Authenticating Agent by the manual signature of one of their respective
authorized signatories, this Security shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose.

[Remainder of page
intentionally left blank]

 23
 

 

 

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

	
  

  	
  PRICELINE.COM INCORPORATED

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Securities referred to in the
within-mentioned Indenture.

	
  Dated:

  	
   

  	
   

  

 

AMERICAN STOCK TRANSFER & TRUST COMPANY,

as Trustee

	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  

 

 24
 

 

 

[FORM OF REVERSE OF NOTE]

PRICELINE.COM INCORPORATED

0.50% Convertible Senior Notes due 2011

This Security is one of a duly authorized issue of securities of the
Company designated as its “0.50% Convertible Senior Notes due 2011” (herein
called the “Securities”) issued and to be issued under an Indenture, dated as
of September 27, 2006 (herein called the “Indenture,” which term shall have the
meaning assigned to it in such instrument), between the Company and American
Stock Transfer & Trust Company, as Trustee (herein called the “Trustee,”
which term includes any successor trustee under the Indenture), to which
Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and the Holders of the
Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered.  As provided
in the Indenture and subject to certain limitations therein set forth,
Securities are exchangeable for a like aggregate principal amount of Securities
of any authorized denominations as requested by the Holder surrendering the
same upon surrender of the Security or Securities to be exchanged, at the
Corporate Trust Office of the Trustee. 
The Trustee upon such surrender by the Holder will issue the new
Securities in the requested denominations. Additional Securities may be issued
in an unlimited aggregate principal amount, subject to certain conditions
specified in the Indenture.

No sinking fund is provided for the Securities and the Securities are
not subject to redemption at the option of the Company.

In any case where the due date for the payment of the principal of or
interest or Special Interest on any Security or the last day on which a Holder
of a Security has a right to convert his Security shall be, at any Place of
Payment or Place of Conversion, as the case may be, a day on which banking
institutions at such Place of Payment or Place of Conversion are authorized or
obligated by law or executive order to close, then payment of principal,
interest, or Special Interest, or delivery for conversion of such Security need
not be made on or by such date at such place but may be made on or by the next
succeeding day at such place which is not a day on which banking institutions
are authorized or obligated by law or executive order to close, with the same
force and effect as if made on the date for such payment or the date fixed for
redemption or repurchase, or by such last day for conversion, and no interest
shall accrue on the amount so payable for the period after such date.

The Indenture contains provisions permitting the Company and the
Trustee in certain circumstances, without the consent of the Holders of the
Securities, and in other circumstances, with the consent of the Holders of not
less than a majority in aggregate principal amount of the Securities at the
time outstanding, evidenced as in the Indenture provided, to execute
supplemental indentures adding any provisions to or changing in any manner or
eliminating any of the provisions of the Indenture or of any supplemental
indenture or modifying in any manner the rights of the Holders of the
Securities; provided, however, that
no such supplemental indenture shall make any of the changes set forth in
Section 8.2 of the Indenture, without the consent of each Holder of an
outstanding Security affected thereby. It is also provided in the Indenture
that, prior to any declaration accelerating the maturity of the Securities, the
Holders of a majority in aggregate principal amount of the Securities at the
time 

 25
 

 

outstanding may on behalf of the Holders of all of the Securities waive
any past default or Event of Default under the Indenture and its consequences
except as provided in the Indenture. Any such consent or waiver by the Holder
of this Security (unless revoked as provided in the Indenture) shall be
conclusive and binding upon such Holder and upon all future holders and owners
of this Security and any Securities which may be issued in exchange or
substitution hereof, irrespective of whether or not any notation thereof is
made upon this Security or such other Securities.

No reference herein to the Indenture and no provision of this Security
or of the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the principal of, and accrued and unpaid
interest on, this Security, at the place, at the respective times, at the rate
and in the lawful money herein prescribed.

Upon the occurrence of a Designated Event, the Holder has the right, at
such Holder’s option, to require the Company to repurchase all of such Holder’s
Securities or any portion thereof (in principal amounts of $1,000 or integral
multiples thereof) on the Designated Event Repurchase Date at a price equal to
100% of the principal amount of the Securities such Holder elects to require
the Company to repurchase, together with accrued and unpaid interest to but
excluding the Designated Event Repurchase Date. The Company or, at the written
request of the Company, the Trustee shall mail to all Holders of record of the
Securities a notice of the occurrence of a Designated Event and of the
repurchase right arising as a result thereof on or before the twentieth day
after the occurrence of any Designated Event.

Subject to the provisions of the Indenture, the Holder hereof has the
right, at its option, on and after June 30, 2011, or earlier upon the
occurrence of certain conditions specified in the Indenture and prior to the
close of business on the Trading Day immediately preceding the Stated Maturity,
to convert any Securities or portion thereof which is $1,000 or an integral
multiple thereof, into cash and, if applicable, shares of Common Stock, in each
case at the Conversion Rate specified in the Indenture, as adjusted from time
to time as provided in the Indenture, upon surrender of this Security, together
with a Notice of Conversion, a form of which is contained under Section 2.4 of
the Indenture, as provided in the Indenture and this Security, to the Company
at the office or agency of the Company maintained for that purpose in the
Borough of Manhattan, The City of New York, or at the option of such Holder,
the Corporate Trust Office, and, unless the shares issuable on conversion are
to be issued in the same name as this Security, duly endorsed by, or
accompanied by instruments of transfer in form satisfactory to the Company duly
executed by, the Holder or by his duly authorized attorney. The initial
Conversion Rate shall be 24.7647 shares for each $1,000 principal amount of
Securities. No fractional shares of Common Stock will be issued upon any
conversion, but an adjustment in cash will be paid to the Holder, as provided
in the Indenture, in respect of any fraction of a share which would otherwise
be issuable upon the surrender of any Security or Securities for conversion. No
adjustment shall be made for dividends or any shares issued upon conversion of
such Security except as provided in the Indenture.

Upon due presentment for registration of transfer of this Security at
the office or agency of the Company in the Borough of Manhattan, The City of
New York, a new Security or Securities of authorized denominations for an equal
aggregate principal amount will be issued to the transferee in exchange
thereof, subject to the limitations provided in the Indenture, without charge
except for any tax, assessments or other governmental charge imposed in
connection therewith.

 26
 

 

 

The Company, the Trustee, any authenticating agent, any Paying Agent,
any Conversion Agent and any Security Registrar may deem and treat the
registered Holder hereof as the absolute owner of this Security (whether or not
this Security shall be overdue and notwithstanding any notation of ownership or
other writing hereon), for the purpose of receiving payment hereof, or on
account hereof, for the conversion hereof and for all other purposes, and
neither the Company nor the Trustee nor any other authenticating agent nor any
Paying Agent nor any other Conversion Agent nor any Security Registrar shall be
affected by any notice to the contrary. All payments made to or upon the order
of such registered Holder shall, to the extent of the sum or sums paid, satisfy
and discharge liability for monies payable on this Security.

No recourse for the payment of the principal of, or accrued and unpaid
interest or Special Interest on, this Security, or for any claim based hereon
or otherwise in respect hereof, and no recourse under or upon any obligation,
covenant or agreement of the Company in the Indenture or any indenture supplemental
thereto or in any Security, or because of the creation of any Indebtedness
represented thereby, shall be had against any incorporator, stockholder,
employee, agent, officer, director or subsidiary, as such, past, present or
future, of the Company or of any successor corporation, either directly or
through the Company or any successor corporation, whether by virtue of any
constitution, statute or rule of law or by the enforcement of any assessment or
penalty or otherwise, all such liability being, by the acceptance hereof and as
part of the consideration for the issue hereof, expressly waived and released.

Terms used in this Security and defined in the Indenture are used
herein as therein defined.

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

 27

 

FORM OF DESIGNATED EVENT
REPURCHASE NOTICE

To: priceline.com Incorporated

The undersigned registered owner of this Security
hereby acknowledges receipt of a notice from priceline.com Incorporated (the “Company”)
as to the occurrence of a Designated Event with respect to the Company and
hereby directs the Trustee or the Company to pay it or ______________ an amount
in cash equal to 100% of the entire principal amount, or the portion thereof
(which is $1,000 principal amount or an integral multiple thereof) below
designated, to be repurchased plus interest accrued to, but excluding, the
Designated Event Repurchase Date, as provided in the Indenture.

 

	
  Dated:

  	
   

  
	
   

  	
   

  
	
  

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature(s)

  	
   

  

 

	
  Signature(s) must be
  guaranteed by an Eligible

  Guarantor Institution with membership in an 

  approved signature guarantee program pursuant

  to Rule 17Ad-15 under the Securities Exchange

  Act of 1934.

  	
   

  
	
   

  	
   

  
	
  

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature Guaranteed

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Principal amount to be
  repurchased (at least

  U.S. $1,000 or an integral multiple of $1,000

  in excess thereof): 
  ___________________

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Remaining principal
  amount following such

  repurchase (not less than U.S. $1,000):

  ______________

  	
   

  

 

 28
 

 

 

(2)         Form of 2013 Note

[FORM OF FACE OF
NOTE]

[THE FOLLOWING LEGEND SHALL APPEAR ON THE FACE OF
EACH RESTRICTED SECURITY:

THIS
SECURITY AND ANY COMMON STOCK ISSUABLE UPON THE CONVERSION OF THIS SECURITY
HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE
OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF
THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING
ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT
PROVIDED BY RULE 144A THEREUNDER.

THIS
SECURITY AND ANY COMMON STOCK ISSUABLE UPON CONVERSION OF THIS SECURITY MAY NOT
BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A) (1) TO A PERSON
WHO THE TRANSFEROR REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER
WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT ACQUIRING FOR ITS OWN
ACCOUNT OR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION
MEETING THE REQUIREMENTS OF RULE 144A, (2) PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF
AVAILABLE), (3) TO AN INSTITUTIONAL INVESTOR THAT IS AN ACCREDITED INVESTOR
WITHIN THE MEANING OF RULE 501 (A)(1), (2), (3) OR (7) OF REGULATION D UNDER
THE SECURITIES ACT PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT (IF AVAILABLE) OR (4) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT, AND (B) IN ACCORDANCE WITH ALL APPLICABLE
SECURITIES LAWS OF THE STATES OF THE UNITED STATES AND OTHER JURISDICTIONS.

THIS SECURITY, ANY SHARES OF COMMON STOCK ISSUABLE
UPON ITS CONVERSION AND ANY RELATED DOCUMENTATION MAY BE AMENDED OR
SUPPLEMENTED FROM TIME TO TIME TO MODIFY THE RESTRICTIONS ON RESALES AND OTHER
TRANSFERS OF THIS SECURITY AND ANY SUCH SHARES TO REFLECT ANY CHANGE IN
APPLICABLE LAW OR REGULATION (OR THE INTERPRETATION THEREOF) OR IN PRACTICES
RELATING TO THE RESALE OR TRANSFER OF RESTRICTED SECURITIES GENERALLY. THE
HOLDER OF THIS SECURITY AND SUCH SHARES SHALL BE DEEMED BY THE ACCEPTANCE OF
THIS SECURITY AND ANY SUCH SHARES TO HAVE AGREED TO ANY SUCH AMENDMENT OR
SUPPLEMENT.]

 29
 

 

 

[THE FOLLOWING LEGEND SHALL APPEAR ON THE FACE OF
EACH GLOBAL SECURITY:

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE
MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME
OF THE DEPOSITARY OR A NOMINEE OF THE DEPOSITARY, WHICH MAY BE TREATED BY THE
COMPANY, THE TRUSTEE AND ANY AGENT THEREOF AS OWNER AND HOLDER OF THIS SECURITY
FOR ALL PURPOSES.

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

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN
PART FOR SECURITIES IN DEFINITIVE REGISTERED FORM IN THE LIMITED CIRCUMSTANCES
REFERRED TO IN THE INDENTURE, THIS GLOBAL SECURITY MAY NOT BE TRANSFERRED
EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A
NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY
OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE
OF SUCH SUCCESSOR DEPOSITARY.]

 30
 

 

 

PRICELINE.COM
INCORPORATED

0.75% Convertible Senior Notes due 2013

	
  

  	
   

  
	
  No.

  	
  $

  

CUSIP No.             741503AG1

PRICELINE.COM INCORPORATED,
a corporation duly organized and existing under the laws of the State of
Delaware (herein called the “Company,” which term includes any successor Person
under the Indenture referred to on the reverse hereof), for value received,
hereby promises to pay to _________________, or registered assigns, the
principal sum of ________ United States Dollars (U.S. $______ ) [if this Security is a Global Security, then insert — (which
principal amount may from time to time be decreased to such other principal amounts
by adjustments made on the records of the Trustee hereinafter referred to in
accordance with the Indenture)] on September
30, 2013, and to pay interest thereon, from September 27, 2006, or from the
most recent Interest Payment Date (as defined below) to which interest has been
paid or duly provided for, semi-annually in arrears on March 30 and September
30 in each year (each, an “Interest Payment Date”), commencing March 30, 2007,
at the rate of 0.75% per annum, until the principal hereof is due, and at the
same rate on any overdue principal and, to the extent permitted by law, on any
overdue interest. The interest so payable, and punctually paid or duly provided
for, on any Interest Payment Date will, as provided in the Indenture, be paid
to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest, which shall be the March 15 or September 15 (whether or not
a Business Day), as the case may be, next preceding such Interest Payment
Date.  Except as otherwise provided in
the Indenture, any such interest not so punctually paid or duly provided for
will forthwith cease to be payable to the Holder on such Regular Record Date
and may either be paid to the Person in whose name this Security (or one or
more Predecessor Securities) is registered at the close of business on a
Special Record Date for the payment of such Defaulted Interest to be fixed by
the Company, notice whereof shall be given to Holders of Securities not less
than 10 days prior to the Special Record Date, or be paid at any time in any
other lawful manner not inconsistent with the requirements of any automated
quotation system or securities exchange on which the Securities may be quoted
or listed, and upon such notice as may be required by such exchange, all as
more fully provided in the Indenture. Payments of principal shall be made upon
the surrender of  this Security at the
option of the Holder at the Corporate Trust Office of the Trustee, or at such
other office or agency of the Company as may be designated by it for such
purpose in the Borough of Manhattan, The City of  New York, in such lawful monies of the United
States of America as at the time of payment shall be legal tender for the payment
of public and private debts, or at such other offices or agencies as the
Company may designate, by United States Dollar check drawn on, or wire transfer
to, a United States Dollar account (such a transfer to be made only to a Holder
of an aggregate principal amount of Securities in excess of U.S. $2,000,000 and
only if such Holder shall have furnished wire instructions in writing to the
Trustee no later than 15 days prior to the relevant payment date). Payment of
interest on this Security may be made by United States Dollar check mailed to
the address of the Person entitled thereto as such address shall appear in the
Security Register, or, upon written application by 

 31
 

 

the Holder to the
Security Registrar setting forth wire instructions not later than the relevant
Record Date, by transfer to a United States Dollar account (such a transfer to
be made only to a Holder of an aggregate principal amount of Securities in
excess of U.S. $2,000,000 and only if such Holder shall have furnished wire
instructions in writing to the Trustee no later than 15 days prior to the
relevant payment date).

Except as specifically provided herein and in the
Indenture, the Company shall not be required to make any payment with respect
to any tax, assessment or other governmental charge imposed by any government
or any political subdivision or taxing authority thereof or therein.

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

Unless the certificate of authentication hereon has
been executed by the Trustee referred to on the reverse hereof or an
Authenticating Agent by the manual signature of one of their respective
authorized signatories, this Security shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose.

[Remainder of page
intentionally left blank]

 32
 

 

 

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

	
   

  	
  PRICELINE.COM
  INCORPORATED

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Securities referred to in the
within-mentioned Indenture.

	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

AMERICAN STOCK TRANSFER & TRUST COMPANY,

as Trustee

	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  	
   

  

 

 33
 

 

 

[FORM OF REVERSE OF NOTE]

PRICELINE.COM
INCORPORATED 

0.75% Convertible Senior Notes due 2013

This Security is one of a duly authorized issue of securities of the
Company designated as its “0.75% Convertible Senior Notes due 2013” (herein
called the “Securities”) issued and to be issued under an Indenture, dated as
of September 27, 2006 (herein called the “Indenture,” which term shall have the
meaning assigned to it in such instrument), between the Company and American
Stock Transfer & Trust Company, as Trustee (herein called the “Trustee,”
which term includes any successor trustee under the Indenture), to which
Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and the Holders of the
Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered.  As provided
in the Indenture and subject to certain limitations therein set forth,
Securities are exchangeable for a like aggregate principal amount of Securities
of any authorized denominations as requested by the Holder surrendering the
same upon surrender of the Security or Securities to be exchanged, at the
Corporate Trust Office of the Trustee. 
The Trustee upon such surrender by the Holder will issue the new Securities
in the requested denominations. Additional Securities may be issued in an
unlimited aggregate principal amount, subject to certain conditions specified
in the Indenture.

No sinking fund is provided for the Securities and the Securities are
not subject to redemption at the option of the Company.

In any case where the due date for the payment of the principal of or
interest or Special Interest on any Security or the last day on which a Holder
of a Security has a right to convert his Security shall be, at any Place of
Payment or Place of Conversion, as the case may be, a day on which banking
institutions at such Place of Payment or Place of Conversion are authorized or
obligated by law or executive order to close, then payment of principal,
interest, or Special Interest, or delivery for conversion of such Security need
not be made on or by such date at such place but may be made on or by the next
succeeding day at such place which is not a day on which banking institutions
are authorized or obligated by law or executive order to close, with the same
force and effect as if made on the date for such payment or the date fixed for
redemption or repurchase, or by such last day for conversion, and no interest
shall accrue on the amount so payable for the period after such date.

The Indenture contains provisions permitting the Company and the
Trustee in certain circumstances, without the consent of the Holders of the
Securities, and in other circumstances, with the consent of the Holders of not
less than a majority in aggregate principal amount of the Securities at the
time outstanding, evidenced as in the Indenture provided, to execute
supplemental indentures adding any provisions to or changing in any manner or
eliminating any of the provisions of the Indenture or of any supplemental
indenture or modifying in any manner the rights of the Holders of the
Securities; provided, however, that
no such supplemental indenture shall make any of the changes set forth in
Section 8.2 of the Indenture, without the consent of each Holder of an
outstanding Security affected thereby. It is also provided in the Indenture
that, prior to any declaration accelerating the maturity of the Securities, the
Holders of a majority in aggregate principal amount of the Securities at the
time 

 34
 

 

 

outstanding may on behalf of the Holders of all of the Securities waive
any past default or Event of Default under the Indenture and its consequences
except as provided in the Indenture. Any such consent or waiver by the Holder
of this Security (unless revoked as provided in the Indenture) shall be
conclusive and binding upon such Holder and upon all future holders and owners
of this Security and any Securities which may be issued in exchange or
substitution hereof, irrespective of whether or not any notation thereof is
made upon this Security or such other Securities.

No reference herein to the Indenture and no provision of this Security
or of the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the principal of, and accrued and unpaid
interest on, this Security, at the place, at the respective times, at the rate
and in the lawful money herein prescribed.

Upon the occurrence of a Designated Event, the Holder has the right, at
such Holder’s option, to require the Company to repurchase all of such Holder’s
Securities or any portion thereof (in principal amounts of $1,000 or integral
multiples thereof) on the Designated Event Repurchase Date at a price equal to
100% of the principal amount of the Securities such Holder elects to require
the Company to repurchase, together with accrued and unpaid interest to but
excluding the Designated Event Repurchase Date. The Company or, at the written
request of the Company, the Trustee shall mail to all Holders of record of the
Securities a notice of the occurrence of a Designated Event and of the
repurchase right arising as a result thereof on or before the twentieth day
after the occurrence of any Designated Event.

Subject to the provisions of the Indenture, the Holder hereof has the
right, at its option, on and after June 30, 2013, or earlier upon the
occurrence of certain conditions specified in the Indenture and prior to the
close of business on the Trading Day immediately preceding the Stated Maturity,
to convert any Securities or portion thereof which is $1,000 or an integral
multiple thereof, into cash and, if applicable, shares of Common Stock, in each
case at the Conversion Rate specified in the Indenture, as adjusted from time
to time as provided in the Indenture, upon surrender of this Security, together
with a Notice of Conversion, a form of which is contained under Section 2.4 of
the Indenture, as provided in the Indenture and this Security, to the Company
at the office or agency of the Company maintained for that purpose in the
Borough of Manhattan, The City of New York, or at the option of such Holder,
the Corporate Trust Office, and, unless the shares issuable on conversion are
to be issued in the same name as this Security, duly endorsed by, or accompanied
by instruments of transfer in form satisfactory to the Company duly executed
by, the Holder or by his duly authorized attorney. The initial Conversion Rate
shall be 24.7647 shares for each $1,000 principal amount of Securities. No
fractional shares of Common Stock will be issued upon any conversion, but an
adjustment in cash will be paid to the Holder, as provided in the Indenture, in
respect of any fraction of a share which would otherwise be issuable upon the
surrender of any Security or Securities for conversion. No adjustment shall be
made for dividends or any shares issued upon conversion of such Security except
as provided in the Indenture.

Upon due presentment for registration of transfer of this Security at
the office or agency of the Company in the Borough of Manhattan, The City of
New York, a new Security or Securities of authorized denominations for an equal
aggregate principal amount will be issued to the transferee in exchange
thereof, subject to the limitations provided in the Indenture, without charge
except for any tax, assessments or other governmental charge imposed in
connection therewith.

 35
 

 

 

The Company, the Trustee, any authenticating agent, any Paying Agent,
any Conversion Agent and any Security Registrar may deem and treat the
registered Holder hereof as the absolute owner of this Security (whether or not
this Security shall be overdue and notwithstanding any notation of ownership or
other writing hereon), for the purpose of receiving payment hereof, or on
account hereof, for the conversion hereof and for all other purposes, and
neither the Company nor the Trustee nor any other authenticating agent nor any
Paying Agent nor any other Conversion Agent nor any Security Registrar shall be
affected by any notice to the contrary. All payments made to or upon the order
of such registered Holder shall, to the extent of the sum or sums paid, satisfy
and discharge liability for monies payable on this Security.

No recourse for the payment of the principal of, or accrued and unpaid
interest or Special Interest on, this Security, or for any claim based hereon
or otherwise in respect hereof, and no recourse under or upon any obligation,
covenant or agreement of the Company in the Indenture or any indenture
supplemental thereto or in any Security, or because of the creation of any
Indebtedness represented thereby, shall be had against any incorporator,
stockholder, employee, agent, officer, director or subsidiary, as such, past,
present or future, of the Company or of any successor corporation, either directly
or through the Company or any successor corporation, whether by virtue of any
constitution, statute or rule of law or by the enforcement of any assessment or
penalty or otherwise, all such liability being, by the acceptance hereof and as
part of the consideration for the issue hereof, expressly waived and released.

Terms used in this Security and defined in the Indenture are used
herein as therein defined.

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

 36

 

 

FORM OF DESIGNATED EVENT
REPURCHASE NOTICE

To: priceline.com Incorporated

The undersigned registered owner of this Security
hereby acknowledges receipt of a notice from priceline.com Incorporated (the “Company”)
as to the occurrence of a Designated Event with respect to the Company and
hereby directs the Trustee or the Company to pay it or ______________ an amount
in cash equal to 100% of the entire principal amount, or the portion thereof
(which is $1,000 principal amount or an integral multiple thereof) below
designated, to be repurchased plus interest accrued to, but excluding, the
Designated Event Repurchase Date, as provided in the Indenture.

Dated:

	
  

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature(s)

  	
   

  

 

Signature(s) must be guaranteed by an Eligible

Guarantor Institution with membership in an 

approved signature guarantee program pursuant

to Rule 17Ad-15 under the Securities Exchange

Act of 1934.

 

	
  

  	
   

  
	
  Signature Guaranteed

  	
   

  

 

Principal amount to be repurchased (at least

U.S. $1,000 or an integral multiple of $1,000

in excess thereof):  ___________________

Remaining principal amount following such

repurchase (not less than U.S. $1,000):

______________

Section 2.3             Form
of Certificate of Authentication.

The Trustee’s certificate of authentication shall be
in substantially the following form:

This is one of the Securities referred to in the
within-mentioned Indenture.

 

 37
 

 

 

	
  Dated:

  	
   

  	
   

  

 

	
  

  	
  AMERICAN STOCK TRANSFER &

  	
   

  
	
   

  	
       TRUST COMPANY

  	
   

  
	
   

  	
  as Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  	
   

  

 

 

Section 2.4             Form
of Notice of Conversion.

NOTICE OF CONVERSION

The undersigned Holder of this Security hereby
irrevocably exercises the option to convert this Security, or any portion of the
principal amount hereof (which is U.S. $1,000 or an integral multiple of U.S.
$1,000 in excess thereof, provided
that the unconverted portion of such principal amount is U.S. $1,000 or any
integral multiple of U.S. $1,000 in excess thereof) below designated, into
shares of Common Stock in accordance with the terms of the Indenture referred
to in this Security, and directs that such shares, together with a check in
payment for any fractional share and any Securities representing any
unconverted principal amount hereof, be delivered to and be registered in the
name of the undersigned unless a different name has been indicated below. If
shares of Common Stock or Securities are to be registered in the name of a
Person other than the undersigned, (a) the undersigned will pay all transfer
taxes payable with respect thereto and (b) signature(s) must be guaranteed by
an Eligible Guarantor Institution with membership in an approved signature
guarantee program pursuant to Rule 17Ad-15 under the Securities Exchange Act of
1934. Any amount required to be paid by the undersigned on account of interest
accompanies this Security.

	
  Dated:

  	
   

  	
   

  	
   

  
	
  Signature(s)

  

 

If shares or Securities are to be registered in the

name of a Person other than the Holder, please

print such Person’s name and address:

 

	
  

  	
   

  
	
  (Name)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Address)

  	
   

  

 

 38
 

 

 

 

	
  

  	
   

  
	
  Social Security
  or other Identification

  	
   

  
	
  Number, if any

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  [Signature
  Guaranteed]

  	
   

  

 

If only a portion of the Securities is to be
converted, please indicate:

1.                                       Principal
amount to be converted: U.S. $ ___________

2.                                       Principal
amount and denomination of Securities

representing unconverted principal amount to be issued:

Amount: U.S. $___________                  Denominations: U.S. $____________

(U.S. $1,000 or any integral multiple of U.S. $1,000
in excess thereof, provided that
the unconverted portion of such principal amount is U.S. $1,000 or any integral
multiple of U.S. $1,000 in excess thereof)

Section 2.5             Form of Assignment.

ASSIGNMENT

For value received, ________________ hereby sell(s),
assign(s) and transfer(s) unto ________________ (Please insert Social Security
or other identifying number of assignee) the within Security, and hereby
irrevocably constitutes and appoints ____________________ as attorney to
transfer the said Security on the books of the Company, with full power of
substitution in the premises.

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  

  	
   

  
	
   

  	
  Signature(s)

  
	
   

  	
   

  
	
   

  	
  Signature(s)
  must be guaranteed by an Eligible Guarantor Institution with membership in an
  approved signature guarantee program pursuant to Rule 17Ad-15 under the
  Securities Exchange Act of 1934.

  
	
   

  	
   

  
	
  Signature
  Guaranteed

  	
   

  	
   

  

 

 39
 

 

 

 

ARTICLE III

THE
SECURITIES

Section 3.1             Title
and Terms.

The 2011 Notes shall be known and designated as the “0.50%
Convertible Senior Notes due 2011” of the Company.  Their Stated Maturity shall be September 30,
2011, and they shall bear interest on their principal amount from September 27,
2006, payable semi-annually in arrears on September 30 and March 30 in each
year, commencing March 30, 2007, at the rate of 0.50% per annum until the
principal thereof is due; provided,
however, that payments shall only
be made on a Business Day as provided in Section 1.12.

The 2013 Notes shall be known and designated as the “0.75%
Convertible Senior Notes due 2013” of the Company.  Their Stated Maturity shall be September 30,
2013, and they shall bear interest on their principal amount from September 27,
2006, payable semi-annually in arrears on September 30 and March 30 in each
year, commencing March 30, 2007, at the rate of 0.75% per annum until the
principal thereof is due; provided,
however, that payments shall only
be made on a Business Day as provided in Section 1.12.

The Company shall pay interest on overdue principal at
the rate borne by the Securities, and it shall pay interest on overdue
installments of interest at the same rate to the extent lawful.

The principal of and interest on the Securities shall
be payable as provided in the form of Securities set forth in Section 2.2,
and the Designated Event Repurchase Price, as the case may be, shall be payable
at such places as are identified in the Designated Event Company Notice given
pursuant to Section 14.1(b) (any city in which any Paying Agent is located
being herein called a “Place of Payment”).

The Securities shall be senior unsecured obligations
of the Company and shall rank pari passu
with all of the Company’s other senior unsecured obligations, including,
without limitation, the Company’s 1.00% Convertible Senior Notes due 2010,
issued pursuant to an indenture dated as of August 1, 2003, between the Company
and the Trustee, as amended or supplemented, and the Company’s 2.25%
Convertible Senior Notes due 2025, issued pursuant to an indenture dated as of
June 24, 2004, between the Company and the Trustee, as amended or supplemented.

The Registrable Securities are entitled to the
benefits of a Registration Rights Agreement as provided by Section 10.8
and in the form of Security set forth in Section 2.2. The Securities are
entitled to the payment of Special Interest as provided by Section 10.8.

The Securities may not be redeemed at the option of
the Company prior to Maturity.

The Securities shall be convertible as provided in
Article XII (any city in which any Conversion Agent is located being herein
called a “Place of Conversion”).

The Securities shall be subject to repurchase by the
Company at the option of the Holders as provided in Article XIV.

 40
 

 

 

Section 3.2             Denominations.

The Securities shall be issuable only in registered
form, without coupons, in denominations of U.S. $1,000 and integral multiples
of U.S. $1,000 in excess thereof.

Section 3.3             Execution,
Authentication, Delivery and Dating.

The Securities shall be executed on behalf of the
Company by its Chairman of the Board, its Chief Executive Officer, its
President, its Chief Financial Officer, or one of its Executive Vice
Presidents, and attested by its Chief Operating Officer, Controller or
Secretary.  Any such signature may be
manual or facsimile.

Securities bearing the manual or facsimile signature
of individuals who were at any time the proper officers of the Company shall
bind the Company, notwithstanding that such individuals or any of them have
ceased to hold such offices prior to the authentication and delivery of such
Securities or did not hold such offices at the date of such Securities.

At any time and from time to time after the execution
and delivery of this Indenture, the Company may deliver Securities executed by
the Company to the Trustee or to its order for authentication, including any
Additional Notes, together with a Company Order for the authentication and
delivery of such Securities, and the Trustee in accordance with such Company
Order shall authenticate and make available for delivery such Securities as in
this Indenture provided.

Each Security shall be dated the date of its
authentication.

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

Section 3.4             Global
Securities; Non-global Securities; Book-entry Provisions.

(1)         Global Securities

(A)          Each
Global Security authenticated under this Indenture shall be registered in the
name of the Depositary designated by the Company for such Global Security or a
nominee thereof and delivered to such Depositary or a nominee thereof or
custodian therefor, and each such Global Security shall constitute a single Security
for all purposes of this Indenture. The Company hereby appoints DTC as the
Depositary.

(B)           Except
for exchanges of Global Securities for definitive, Non-global Securities at the
sole discretion of the Company, no Global Security may be exchanged in whole or
in part for Securities registered, and no transfer of a Global Security in
whole or in part may be registered, in the name of any Person other than the
Depositary for such Global Security or a

 41
 

 

 

nominee thereof unless (A) such Depositary (i) has notified the Company
that it is unwilling or unable to continue as Depositary for such Global
Security or (ii) has ceased to be a clearing agency registered as such under
the Exchange Act or announces an intention permanently to cease business or
does in fact do so or (B) there shall have occurred and be continuing an Event
of Default with respect to such Global Security.  In such event, if a successor Depositary for
such Global Security is not appointed by the Company within 90 days after the
Company receives such notice or becomes aware of such ineligibility, the
Company will execute, and the Trustee, upon receipt of an Officers’ Certificate
directing the authentication and delivery of Securities, will authenticate and
deliver, Securities, in any authorized denominations in an aggregate principal
amount equal to the principal amount of such Global Security in exchange for
such Global Security.

(C)           If
any Global Security is to be exchanged for other Securities or canceled in
whole, it shall be surrendered by or on behalf of the Depositary or its nominee
to the Trustee, as Security Registrar, for exchange or cancellation, as
provided in this Article III. If any Global Security is to be exchanged for
other Securities or canceled in part, or if another Security is to be exchanged
in whole or in part for a beneficial interest in any Global Security, in each
case, as provided in Section 3.5, then either (A) such Global Security
shall be so surrendered for exchange or cancellation, as provided in this
Article, or (B) the principal amount thereof shall be reduced or increased by
an amount equal to the portion thereof to be so exchanged or canceled, or equal
to the principal amount of such other Security to be so exchanged for a
beneficial interest therein, as the case may be, by means of an appropriate
adjustment made on the records of the Trustee, as Security Registrar, whereupon
the Trustee, in accordance with the Applicable Procedures, shall instruct the
Depositary or its authorized representative to make a corresponding adjustment
to its records. Upon any such surrender or adjustment of a Global Security, the
Trustee shall, subject to Section 3.5(3) and as otherwise provided in this
Article III, authenticate and deliver any Securities issuable in exchange for such
Global Security (or any portion thereof) to or upon the order of, and
registered in such names as may be directed by, the Depositary or its
authorized representative. Upon the request of the Trustee in connection with
the occurrence of any of the events specified in the preceding paragraph, the
Company shall promptly make available to the Trustee a reasonable supply of
Securities that are not in the form of Global Securities. The Trustee shall be
entitled to rely upon any order, direction or request of the Depositary or its
authorized representative which is given or made pursuant to this Article if
such order, direction or request is given or made in accordance with the
Applicable Procedures.

(D)          Every
Security authenticated and delivered upon registration of transfer of, or in
exchange for or in lieu of, a Global Security or any portion thereof, whether
pursuant to this Article or otherwise, shall be authenticated and delivered in
the form of, and shall be, a registered Global Security, unless such Security is
registered in the name of a Person other than the Depositary for such Global
Security or a nominee thereof, in which case such Security shall be
authenticated and delivered in definitive, fully registered form, without
interest coupons.

(E)           The
Depositary or its nominee, as registered owner of a Global Security, shall be
the Holder of such Global Security for all purposes under the Indenture and the
Securities, and owners of beneficial interests in a Global Security shall hold
such interests pursuant to the Applicable Procedures.  Accordingly, any such owner’s beneficial
interest in a Global Security will

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be shown only on, and the transfer of such interest shall be effected
only through, records maintained by the Depositary or its nominee or its Agent
Members and such owners of beneficial interests in a Global Security will not
be considered the owners or holders thereof.

(2)         Non-global Securities.  Securities issued upon the events described
in Section 3.4(1)(B) shall be in definitive, fully registered form,
without interest coupons, and shall bear the Restricted Securities Legend if
and as required by this Indenture.

Section 3.5             Registration;
Registration of Transfer and Exchange; Restrictions on Transfer.

(1)         The Company shall cause to be kept at
the Corporate Trust Office of the Trustee a register (the register maintained
in such office referred to as the “Security Register”) in which, subject to
such reasonable regulations as it may prescribe, the Company shall provide for
the registration of Securities and of transfers of Securities. The Trustee is
hereby appointed “Security Registrar” for the purpose of registering Securities
and transfers and exchanges of Securities as herein provided.

Upon surrender for registration of transfer of any
Security at an office or agency of the Company designated pursuant to
Section 10.2 for such purpose, the Company shall execute, and the Trustee
shall authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Securities of any authorized denominations and of
a like aggregate principal amount and bearing such restrictive legends as may
be required by this Indenture.

At the option of the Holder, and subject to the other
provisions of this Section 3.5, Securities may be exchanged for other
Securities of any authorized denomination and of a like aggregate principal
amount, upon surrender of the Securities to be exchanged at any such office or
agency. Whenever any Securities are so surrendered for exchange, and subject to
the other provisions of this Section 3.5, the Company shall execute, and
the Trustee shall authenticate and deliver, the Securities that the Holder
making the exchange is entitled to receive. Every Security presented or
surrendered for registration of transfer or for exchange shall (if so required
by the Company or the Security Registrar) be duly endorsed, or be accompanied
by a written instrument of transfer in form satisfactory to the Company, the
Trustee and the Security Registrar duly executed, by the Holder thereof or his
attorney duly authorized in writing.

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

No service charge shall be made to a Holder for any
registration of transfer or exchange of Securities except as provided in
Section 3.6, but the Company may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any registration of transfer or exchange of Securities, other than
exchanges pursuant to Section 3.4, Section 8.5, or Section 12.2
(other than where the shares of Common Stock are to be issued or delivered in a
name other than that of the Holder of the Security) not involving any transfer
and other than any stamp and other duties, if any, which may be imposed in
connection with any such 

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transfer or exchange by the United States or any
political subdivision thereof or therein, which shall be paid by the Company.

(2)         Certain Transfers and Exchanges.
Notwithstanding any other provision of this Indenture or the Securities,
transfers and exchanges of Securities and beneficial interests in a Global
Security of the kinds specified in this Section 3.5(2) shall be made only
in accordance with this Section 3.5(2).

(A)          Restricted
Global Security to Restricted Non-global Security.  In the event that Non-global Securities are
to be issued pursuant to Section 3.4(1)(B) in connection with any transfer
of Securities, such transfer may be effected only in accordance with the
provisions of this Clause (2)(A) and subject to the Applicable Procedures.  Upon receipt by the Trustee, as Security
Registrar, of (a) a Company Order from the Company directing the Trustee, as
Security Registrar, to (i) authenticate and deliver one or more Securities of
the same aggregate principal amount as the beneficial interest in the
Restricted Global Security to be transferred, such instructions to contain the
name or names of the designated transferee or transferees, the authorized
denomination or denominations of the Securities to be so issued and appropriate
delivery instructions and (ii) decrease the beneficial interest of a specified
Agent Member’s account in a Restricted Global Security by a specified principal
amount not greater than the principal amount of such Restricted Global
Security, and (b) such other certifications, legal opinions or other information
as the Company or the Trustee may reasonably require to confirm that such
transfer is being made pursuant to an exemption from, or in a transaction not
subject to, the registration requirements of the Securities Act, then the
Trustee, as Security Registrar, shall decrease the principal amount of the
Restricted Global Security by the specified amount and authenticate and deliver
Securities in accordance with such instructions from the Company as provided in
Section 3.4(1)(C).

(B)           Restricted
Non-global Security to Restricted Global Security.  If the Holder of a Restricted Security (other
than a Global Security) wishes at any time to transfer all or any portion of
such Restricted Security to a Person who wishes to take delivery thereof in the
form of a beneficial interest in the Restricted Global Security, such transfer
may be effected only in accordance with the provisions of this Clause (2)(B)
and subject to the Applicable Procedures. Upon receipt by the Trustee, as
Security Registrar, of such Restricted Security as provided in
Section 3.5(1) and instructions from the Company directing that a
beneficial interest in the Restricted Global Security in a specified principal
amount not greater than the principal amount of such Security be credited to a
specified Agent Member’s account, then the Trustee, as Security Registrar,
shall cancel such Restricted Security (and issue a new Restricted Security in
respect of any untransferred portion thereof) as provided in
Section 3.5(1) and increase the principal amount of the Restricted Global
Security by the specified principal amount as provided in
Section 3.4(1)(C).

(C)           Exchanges
Between Global Security and Non-global Security.  A beneficial interest in a Global Security
may be exchanged for a Security that is not a Global Security only as provided
in Section 3.4 or only if such exchange occurs in connection with a
transfer effected in accordance with Clause 2(A) above, provided that, if such interest is a
beneficial interest in the Restricted Global Security, then such interest shall
be exchanged for a Restricted Security (subject in each case to
Section 3.5(3)). A Security that is not a Global Security may be exchanged
for a

 44
 

 

 

beneficial interest in a Global Security only if such exchange occurs
in connection with a transfer effected in accordance with Clause (2)(B) above.

(3)         Securities Act Legends. All
Securities issued pursuant to this Indenture, and all Successor Securities,
shall bear the Restricted Securities Legend and shall be subject to the
restrictions on transfer specified therein, subject to the following:

(A)          subject
to the following Clauses of this Section 3.5(3), a Security or any portion
thereof which is exchanged, upon transfer or otherwise, for a Global Security
or any portion thereof shall bear the Restricted Securities Legend borne by
such Global Security for which the Security was exchanged;

(B)           subject
to the following Clauses of this Section 3.5(3), a new Security that is
not a Global Security and is issued in exchange for another Security (including
a Global Security) or any portion thereof, upon transfer or otherwise, shall
bear the Restricted Securities Legend borne by the Security for which the new
Security was exchanged;

(C)           any
Securities that are sold or otherwise disposed of pursuant to an effective
registration statement under the Securities Act (including the Shelf
Registration Statement), together with their Successor Securities shall not
bear a Restricted Securities Legend; the Company shall inform the Trustee in
writing of the effective date of any such registration statement registering
the Securities under the Securities Act and shall notify the Trustee at any
time when prospectuses must be delivered with respect to Securities to be sold
pursuant to such registration statement. The Trustee shall not be liable for
any action taken or omitted to be taken by it in good faith in accordance with
the aforementioned registration statement;

(D)          at
any time after the Securities may be freely transferred without registration
under the Securities Act or without being subject to transfer restrictions
pursuant to the Securities Act, a new Security that does not bear a Restricted
Securities Legend may be issued in exchange for or in lieu of a Security (other
than a Global Security) or any portion thereof that bears such a legend if the
Trustee has received an Unrestricted Securities Certificate, satisfactory to
the Trustee and duly executed by the Holder of such Security bearing a
Restricted Securities Legend or his attorney duly authorized in writing, and
after such date and receipt of such certificate, the Trustee shall authenticate
and deliver such new Security in exchange for or in lieu of such other Security
as provided in this Article III;

(E)           a
new Security that does not bear a Restricted Securities Legend may be issued in
exchange for or in lieu of a Security or any portion thereof that bears such a
legend if, in the Company’s judgment, placing such a legend upon such new
Security is not necessary to ensure compliance with the registration requirements
of the Securities Act, and the Trustee, at the direction of the Company, shall
authenticate and deliver such a new Security as provided in this Article III;
and

(F)           notwithstanding
the foregoing provisions of this Section 3.5(3), a Successor Security of a
Security that does not bear a Restricted Securities Legend shall not bear such
legend

 45
 

 

unless the Company has reasonable cause to believe that such Successor
Security is a “restricted security” within the meaning of Rule 144, in which
case the Trustee, at the direction of the Company, shall authenticate and
deliver a new Security bearing a Restricted Securities Legend in exchange for
such Successor Security as provided in this Article.

(4)         Any stock certificate representing
shares of Common Stock issued upon conversion of the Securities shall bear the
Restricted Securities Legend borne by such Securities, to the extent required
by this Indenture, unless such shares of Common Stock have been sold pursuant
to a registration statement that has been declared effective under the
Securities Act (and that continues to be effective at the time of such
transfer) or sold pursuant to Rule 144(k) of the Securities Act, or unless
otherwise agreed by the Company in writing with written notice thereof to the transfer
agent for the Common Stock.  With respect
to the transfer of shares of Common Stock issued upon conversion of the
Securities that are restricted hereunder, any deliveries of certificates, legal
opinions or other instruments that would be required to be made to the Security
Registrar in the case of a transfer of Securities, as described above, shall
instead be made to the transfer agent for the Common Stock.

(5)         Neither the Trustee, the Paying Agent
nor any of their agents shall (i) have any duty to monitor compliance with or
with respect to any federal or state or other securities or tax laws or (ii)
have any duty to obtain documentation on any transfers or exchanges other than
as specifically required hereunder.

Section 3.6             Mutilated,
Destroyed, Lost or Stolen Securities.

If any mutilated Security is surrendered to the
Trustee, the Company shall execute and the Trustee shall authenticate and
deliver in exchange therefor a new Security of like tenor and principal amount
and bearing a number not contemporaneously outstanding.

If there be delivered to the Company and to the
Trustee:

(1)         evidence to their satisfaction of the
destruction, loss or theft of any Security, and

(2)         such security or indemnity as may be
satisfactory to the Company and the Trustee to save each of them and any agent
of either of them harmless, then, in the absence of actual notice to the
Company or the Trustee that such Security has been acquired by a bona fide
purchaser, the Company shall execute and the Trustee shall authenticate and
deliver, in lieu of any such destroyed, lost or stolen Security, a new Security
of like tenor and principal amount and bearing a number not contemporaneously
outstanding.

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

 

 46

 

Upon the issuance of any new Security under this
Section, the Company may require the payment of a sum sufficient to cover any
tax or other governmental charge that may be imposed in relation thereto (other
than any stamp and other duties, if any, which may be imposed in connection
therewith by the United States or any political subdivision thereof or therein,
which shall be paid by the Company) and any other expenses (including the fees
and expenses of the Trustee) connected therewith.

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

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

Section 3.7             Payment
of Interest; Interest Rights Preserved.

Subject to the last paragraph of this Section,
interest or Special Interest on any Security that is payable, and is punctually
paid or duly provided for, on any Interest Payment Date shall be paid to the
Person in whose name that Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such
interest.

Any interest or Special Interest on any Security that
is payable, but is not punctually paid or duly provided for, on any Interest
Payment Date (herein called “Defaulted Interest”) shall forthwith cease to be
payable to the Holder on the relevant Regular Record Date by virtue of having
been such Holder, and such Defaulted Interest may be paid by the Company, at
its election in each case, as provided in Clause (1) or (2) below:

(1)         The Company may elect to make payment
of any Defaulted Interest to the Persons in whose names the Securities (or
their respective Predecessor Securities) are registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest, which
shall be fixed in the following manner. 
The Company shall notify the Trustee in writing of the amount of
Defaulted Interest proposed to be paid on each Security, the date of the
proposed payment and the Special Record Date, and at the same time the Company
shall deposit with the Trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such Defaulted Interest or shall make
arrangements satisfactory to the Trustee for such deposit prior to the date of
the proposed payment, such money when deposited to be held in trust for the
benefit of the Persons entitled to such Defaulted Interest as in this Clause
provided. The Special Record Date for the payment of such Defaulted Interest
shall be not more than 15 days and not less than 10 days prior to the date of
the proposed payment and not less than 10 days after the receipt by the Trustee
of the notice of the proposed payment. The Trustee, in the name and at the
expense of the Company, shall cause notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor to be mailed,
first-class postage prepaid, to each Holder at such Holder’s address as it 

 47
 

 

 

appears in the
Security Register, not less than 10 days prior to such Special Record Date.
Notice of the proposed payment of such Defaulted Interest and the Special
Record Date therefor having been so mailed, such Defaulted Interest shall be
paid to the Persons in whose names the Securities (or their respective
Predecessor Securities) are registered at the close of business on such Special
Record Date and shall no longer be payable pursuant to the following Clause
(2).

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

Subject to the foregoing and following provisions of
this Section and Section 3.5, each Security delivered under this Indenture
upon registration of transfer of or in exchange for or in lieu of any other
Security shall carry the rights to interest accrued and unpaid, and to accrue,
which were carried by such other Security.

Interest on any Security that is converted in
accordance with Section 12.2 during a Record Date Period shall be payable
in accordance with the provisions of Section 12.2.

Section 3.8             Persons
Deemed Owners.

Prior to due presentment of a Security for
registration of transfer, the Company, the Trustee, any Paying Agent and any
agent of the Company, the Trustee or any Paying Agent may treat the Person in
whose name such Security is registered as the owner of such Security for the
purpose of receiving payment of principal of and (subject to Section 3.7)
interest on such Security and for all other purposes whatsoever, whether or not
such Security be overdue, and neither the Company, the Trustee, any Paying
Agent nor any agent of the Company, the Trustee or any Paying Agent shall be
affected by notice to the contrary.

Section 3.9             Cancellation.

All Securities surrendered for payment, repurchase,
registration of transfer or exchange or conversion shall, if surrendered to any
Person other than the Trustee, be delivered to the Trustee. All Securities so
delivered to the Trustee shall be canceled promptly by the Trustee (or its
agent) and may not be re-issued or resold. No Securities shall be authenticated
in lieu of or in exchange for any Securities canceled as provided in this
Section. The Trustee shall dispose of all canceled Securities in accordance
with applicable law and its customary practices in effect from time to time.

Section 3.10           Computation
of Interest.

Interest on the Securities (including any Special
Interest) shall be computed on the basis of a 360-day year of twelve 30-day
months.

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Section 3.11           CUSIP
Numbers.

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

ARTICLE IV

SATISFACTION AND DISCHARGE

Section 4.1             Satisfaction
and Discharge of Indenture.

This Indenture shall upon Company Request cease to be
of further effect (except as to any surviving rights of conversion, or
registration of transfer or exchange, or replacement of Securities herein
expressly provided for and any right to receive Special Interest as provided in
the Registration Rights Agreement and in the form of Securities set forth in Section 2.2
and the Company’s obligations to the Trustee pursuant to Section 6.7), and
the Trustee, at the expense of the Company, shall execute proper instruments in
form and substance satisfactory to the Trustee acknowledging satisfaction and
discharge of this Indenture, when

(1)         either

(A)          all
Securities theretofore authenticated and delivered (other than (a) Securities
which have been destroyed, lost or stolen and that have been replaced or paid
as provided in Section 3.6 and (b) Securities for whose payment money has
theretofore been deposited in trust or segregated and held in trust by the
Company and thereafter repaid to the Company or discharged from such trust, as
provided in Section 10.3) have been delivered to the Trustee for
cancellation; or

(B)           all
such Securities not theretofore delivered to the Trustee or its agent for
cancellation (other than Securities referred to in clauses (a) and (b) of
clause (1)(A) above)

(a)   have
become due and payable, or

(b)   will
have become due and payable at their Stated Maturity within one year,

and the Company, in the case of clause (a) or (b)
above, has deposited or caused to be deposited with the Trustee as trust funds
(immediately available to the Holders in the case of clause (a)) in trust for
the purpose an amount in cash sufficient to pay and discharge the entire
indebtedness on such Securities not theretofore delivered to the Trustee for
cancellation, for principal and interest (including any Special Interest) to
the date of such deposit (in the case of Securities which have become due and
payable) or to the Stated Maturity;

 49
 

 

 

(2)         the Company has paid or caused to be
paid all other sums payable hereunder by the Company; and

(3)         the Company has delivered to the
Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that
all conditions precedent herein provided for relating to the satisfaction and
discharge of this Indenture have been complied with.

Notwithstanding the satisfaction and discharge of this
Indenture, the obligations of the Company to the Trustee under
Section 6.7, the obligations of the Company to any Authenticating Agent
under Section 6.12, the obligation of the Company to pay Special Interest,
if money shall have been deposited with the Trustee pursuant to clause (1)(B) of
this Section, the obligations of the Trustee under Section 4.2 and the
last paragraph of Section 10.3 and the obligations of the Company and the
Trustee under Section 3.5 and Article XII shall survive.

Section 4.2             Application
of Trust Money.

Subject to the provisions of the last paragraph of
Section 10.3, all money deposited with the Trustee pursuant to
Section 4.1 shall be held in trust for the sole benefit of the Holders,
and such monies shall be applied by the Trustee, in accordance with the
provisions of the Securities and this Indenture, to the payment, either
directly or through any Paying Agent (including the Company acting as its own
Paying Agent), to the Persons entitled thereto, of the principal and interest
(including Special Interest, if any) for whose payment such money has been
deposited with the Trustee.

All moneys deposited with the Trustee pursuant to
Section 4.1 (and held by it or any Paying Agent) for the payment of
Securities subsequently converted shall be returned to the Company upon Company
Request.

The Company shall pay and indemnify the Trustee
against any tax, fee or other charge imposed or assessed against all money
deposited with the Trustee pursuant to Section 4.1 (other than income
taxes and franchise taxes incurred or payable by the Trustee and such other
taxes, fees or charges incurred or payable by the Trustee that are not directly
the result of the deposit of such money with the Trustee).

ARTICLE V

REMEDIES

Section 5.1             Events
of Default.

“Event of Default,” wherever used herein, means any
one of the following events with respect to the 2011 Notes or the 2013 Notes
(whatever the reason for such Event of Default or whether it shall be voluntary
or involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any
court or any order, rule or regulation of any administrative or governmental
body):

 50
 

 

 

(1)         default in any payment of interest (including any Special
Interest) on any Security when due and payable and the default continues for a
period of 30 days; or

(2)         default in the payment of principal of any Security when due
and payable at Maturity, upon required repurchase, upon declaration or
otherwise; or

(3)         failure by the Company to comply with its obligation to
convert the Securities into cash or a combination of cash and Common Stock, as
applicable, upon exercise of a Holder’s conversion right; or

(4)         failure by the Company to comply with its obligations under
Article VII; or

(5)         failure by the Company to issue a Designated Event Company
Notice in accordance with Section 14.1 when due; or

(6)         failure by the Company for 60 days to comply with any
of its other agreements (other than a covenant or warranty or default in whose
performance or whose breach is elsewhere in this Section specifically provided
for) contained in the applicable series of Securities or the Indenture after
written notice of such default from the Trustee or the Holders of at least 25%
in principal amount of the applicable series of Outstanding Securities has been
received by the Company; or

(7)         default by the Company or any Subsidiary of the Company in
the payment of the principal or interest on any mortgage, agreement or other
instrument under which there may be outstanding, or by which there may be
secured or evidenced, any debt for money borrowed in excess of $30 million
in the aggregate of the Company and/or any such Subsidiary, whether such debt
now exists or shall hereafter be created, which default results in such debt
becoming or being declared due and payable, and such acceleration shall not
have been rescinded or annulled within 30 days after written notice of
such acceleration has been received by the Company or such Subsidiary;

(8)         the Company shall commence a voluntary case or other
proceeding seeking liquidation, reorganization or other relief with respect to
the Company or any of its Significant Subsidiaries or its debts under any
bankruptcy, insolvency or other similar law now or hereafter in effect or
seeking the appointment of a trustee, receiver, liquidator, custodian or other
similar official of the Company or any of its Significant Subsidiaries or any
substantial part of its property, or shall consent to any such relief or to the
appointment of or taking possession by any such official in an involuntary case
or other proceeding commenced against it, or shall make a general assignment
for the benefit of creditors, or shall fail generally to pay its debts as they
become due; or

(9)         an involuntary case or other proceeding shall be commenced
against the Company or any of its Significant Subsidiaries seeking liquidation,
reorganization or other relief with respect to the Company or its debts under
any bankruptcy, insolvency or other similar law now or hereafter in effect or
seeking the appointment of a trustee, receiver, liquidator, custodian or other
similar official of the Company or any of its Significant Subsidiaries or any
substantial part of its property, 

 51
 

 

 

and such involuntary case or
other proceeding shall remain undismissed and unstayed for a period of ninety
(90) consecutive days.

Section 5.2             Acceleration
of Maturity; Rescission and Annulment.

If an Event of Default (other than an Event of Default
specified in Section 5.1(8) or Section 5.1(9)) occurs and is continuing, then
in every such case the Trustee or the Holders of not less than 25% in principal
amount of the applicable series of Outstanding Securities may declare the
principal of and accrued and unpaid interest on all such Securities of the
applicable series to be due and payable immediately, by a notice in writing to
the Company (and to the Trustee if given by the Holders), and upon any such
declaration such principal and all accrued interest thereon shall become
immediately due and payable. If an Event of Default specified in Section 5.1(8)
or Section 5.1(9) with respect to the Company occurs, the principal of, and
accrued interest on, all of the Securities shall become immediately due and
payable without any declaration or other Act of the Holders or any act on the
part of the Trustee.

This provision, however, is
subject to the conditions that if, at any time after the principal of the
Securities shall have been so declared due and payable, and before any judgment
or decree for the payment of the monies due shall have been obtained or entered
as hereinafter provided, the Company shall pay or shall deposit with the
Trustee a sum sufficient to pay installments of accrued and unpaid interest
upon all Securities of such series and the principal of any and all Securities
if such series that shall have become due otherwise than by acceleration (with
interest on overdue installments of accrued and unpaid interest (to the extent
that payment of such interest is enforceable under applicable law) and on such
principal at the rate borne by the Securities during the period of such
default) and amounts due to the Trustee pursuant to Section 6.7, and if
(1) rescission would not conflict with any judgment or decree of a court
of competent jurisdiction and (2) any and all Events of Defaults under
this Indenture with respect to such series, other than the nonpayment of
principal of and accrued and unpaid interest on such Securities that shall have
become due solely by such acceleration, shall have been cured or waived
pursuant to Section 5.13, then and in every such case the holders of a
majority in aggregate principal amount of the applicable series of
Outstanding Securities, by
written notice to the Company and to the Trustee, may waive all defaults or
Events of Default with respect to the Securities and rescind and annul such
declaration and its consequences and such default shall cease to exist, and any
Event of Default arising therefrom shall be deemed to have been cured for every
purpose of this Indenture; but no such waiver or rescission and annulment shall
extend to or shall affect any subsequent default or Event of Default, or shall
impair any right consequent thereon. The Company shall notify the Trustee in
writing, promptly upon becoming aware thereof, of any Event of Default by
delivering to the Trustee a statement specifying such Event of Default and any
action the Company has taken, is taking or proposes to take with respect
thereto.  No rescission or
annulment referred to above shall affect any subsequent default or impair any
right consequent thereon.

Section 5.3             Collection
of Indebtedness and Suits for Enforcement by Trustee.

The Company covenants that if:

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

(2)         default is made in the payment of the
principal of any Security at the Maturity thereof,

the Company will, upon demand of the Trustee, pay to
it, for the benefit of the Holders of such Securities the whole amount then due
and payable on such Securities for principal and interest (including any
Special Interest) and interest on any overdue principal and, to the extent
permitted by applicable law, on any overdue interest (including any Special
Interest), at the rate borne by the Securities, and in addition thereto, such
further amount as shall be sufficient to cover the reasonable costs and
expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel.

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

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

Section 5.4             Trustee
May File Proofs of Claim.

In case of the pendency of any receivership,
insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial proceeding relative to the Company or any other
obligor upon the Securities or the property of the Company or of such other
obligor or the creditors of either, the Trustee (irrespective of whether the
principal of, and any interest on, the Securities shall then be due and payable
as therein expressed or by declaration or otherwise and irrespective of whether
the Trustee shall have made any demand on the Company for the payment of
overdue principal or interest) shall be entitled and empowered, by intervention
in such proceeding or otherwise,

(1)         to file and prove a claim for the whole
amount of principal and interest owing and unpaid in respect of the Securities
and take such other actions, including participating as a member, voting or
otherwise, of any official committee of creditors appointed in such matter, and
to file such other papers or documents, in each of the foregoing cases, as may
be necessary or advisable in order to have the claims of the Trustee (including
any claim for the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel) and of the Holders of Securities
allowed in such judicial proceeding, and

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(2)         to collect and receive any moneys or
other property payable or deliverable on any such claim and to distribute the
same; and any custodian, receiver, assignee, trustee, liquidator, sequestrator
or other similar official in any such judicial proceeding is hereby authorized
by each Holder of Securities to make such payments to the Trustee and, in the
event that the Trustee shall consent to the making of such payments directly to
the Holders of Securities to pay to the Trustee any amount due to it for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel and any other amounts due the Trustee under
Section 6.7.

Nothing herein contained shall be deemed to authorize
the Trustee to authorize or consent to or accept or adopt on behalf of any
Holder of a Security any plan of reorganization, arrangement, adjustment or
composition affecting the Securities or the rights of any Holder thereof or to
authorize the Trustee to vote in respect of the claim of any Holder of a
Security in any such proceeding; provided,
however, that the Trustee may, on
behalf of such Holders, vote for the election of a trustee in bankruptcy or
similar official.

Section 5.5             Trustee
May Enforce Claims Without Possession of Securities.

All rights of action and claims under this Indenture
or the Securities may be prosecuted and enforced by the Trustee without the
possession of any of the Securities or the production thereof in any proceeding
relating thereto, and any such proceeding instituted by the Trustee shall be
brought in its own name as trustee of an express trust, and any recovery of
judgment shall, after provision for the payment of the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, be
for the ratable benefit of the Holders of the Securities in respect of which
judgment has been recovered.

Section 5.6             Application
of Money Collected.

Any money collected by the Trustee pursuant to this
Article shall be applied in the following order, at the date or dates fixed by
the Trustee and, in case of the distribution of such money on account of
principal or interest, upon presentation of the Securities and the notation thereon
of the payment if only partially paid and upon surrender thereof if fully paid:

FIRST:  To the
payment of all amounts due the Trustee under Section 6.7;

SECOND:  To the
payment of the amounts then due and unpaid for principal of or interest (including
Special Interest, if any) on, the Securities in respect of which or for the
benefit of which such money has been collected, ratably, without preference or
priority of any kind, according to the amounts due and payable on such
Securities for principal and interest (including Special Interest, if any),
respectively; and

THIRD:  Any
remaining amounts shall be repaid to the Company.

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Section 5.7             Limitation
on Suits.

No Holder of any Security shall have any right to
institute any proceeding, judicial or otherwise, with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless:

(1)         such Holder has previously given
written notice to the Trustee of an Event of Default that is continuing at the
time of such institution;

(2)         the Holders of not less than 25% in
principal amount of the Outstanding Securities shall have made written request
to the Trustee to institute proceedings in respect of such Event of Default in
its own name as Trustee hereunder;

(3)         such Holder or Holders have offered to
the Trustee, and if requested, shall have provided, reasonable indemnity
against the costs, expenses and liabilities to be incurred in compliance with
such request;

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

(5)         no direction inconsistent with such
written request has been given to the Trustee during such 60-day period by the
Holders of a majority in principal amount of the Outstanding Securities, it
being understood and intended that no one or more of such Holders shall have
any right in any manner whatever by virtue of, or by availing of, any provision
of this Indenture to affect, disturb or prejudice the rights of any other of
such Holders, or to obtain or seek to obtain priority or preference over any
other of such Holders or to enforce any right under this Indenture, except in
the manner herein provided and for the equal and ratable benefit of all such
Holders.

Section 5.8                                      Unconditional
Right of Holders to Receive Principal and Interest and

to Convert.

Notwithstanding any other provision in this Indenture,
the Holder of any Security shall have the right, which is absolute and unconditional,
to receive payment of the principal of and (subject to Section 3.7)
interest (including Special Interest, if any) on such Security on the
respective Stated Maturities expressed in such Security, and to convert such
Security in accordance with Article XII, and to institute suit for the
enforcement of any such payment and right to convert, and such rights shall not
be impaired without the consent of such Holder.

Section 5.9             Restoration
of Rights and Remedies.

If the Trustee or any Holder of a Security has
instituted any proceeding to enforce any right or remedy under this Indenture
and such proceeding has been discontinued or abandoned for any reason, or has
been determined adversely to the Trustee or to such Holder, then and in every
such case, subject to any determination in such proceeding, the Company, the
Trustee and the Holders of Securities shall be restored severally and
respectively to their former positions hereunder and 

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thereafter all rights and remedies of the Trustee and
such Holders shall continue as though no such proceeding had been instituted.

Section 5.10           Rights
and Remedies Cumulative.

Except as otherwise provided with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Securities in
the last paragraph of Section 3.6, no right or remedy herein conferred
upon or reserved to the Trustee or to the Holders of Securities is intended to
be exclusive of any other right or remedy, and every right and remedy shall, to
the extent permitted by law, be cumulative and in addition to every other right
and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any
other appropriate right or remedy.

Section 5.11           Delay
or Omission Not Waiver.

No delay or omission of the Trustee or of any Holder
of any Security to exercise any right or remedy accruing upon any Event of
Default shall impair any such right or remedy or constitute a waiver of any
such Event of Default or any acquiescence therein. Every right and remedy given
by this Article V or by law to the Trustee or to the Holders of Securities may
be exercised from time to time, and as often as may be deemed expedient, by the
Trustee or (subject to the limitations contained in this Indenture) by the
Holders of Securities, as the case may be.

Section 5.12           Control
by Holders of Securities.

Subject to Section 6.3, the Holders of a majority
in principal amount of the Outstanding Securities shall have the right to
direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee or exercising any trust or power conferred on the
Trustee, provided that

(1)         such direction shall not be in conflict
with any rule of law or with this Indenture, and

(2)         the Trustee may take any other action
deemed proper by the Trustee which is not inconsistent with such direction, and

(3)         the Trustee need not take any action
that might be unjustly prejudicial to the Holders of Securities not consenting.

Section 5.13           Waiver
of Past Defaults.

The Holders of not less than a majority in principal
amount of the Outstanding Securities of a series may on behalf of the Holders
of all the Securities of such series waive any past default hereunder and its
consequences, except a default (A) in the payment of the principal of or
interest (including Special Interest) on any Security, or (B) in respect of a
covenant or provision hereof which under Article VIII cannot be modified or
amended without the consent of the Holder of each Outstanding Security
affected.

 

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Upon any such waiver, such default shall cease to
exist, and any Event of Default arising therefrom shall be deemed to have been
cured, for every purpose of this Indenture; but no such waiver shall extend to
any subsequent or other default or impair any right consequent thereon.

Section 5.14           Undertaking
for Costs.

All parties to this Indenture agree, and each Holder
of any Security by his acceptance thereof shall be deemed to have agreed, that
any court may in its discretion require, in any suit for the enforcement of any
right or remedy under this Indenture, or any suit against the Trustee for any
action taken, suffered or omitted by it as Trustee, the filing by any party
litigant in such suit of an undertaking to pay the costs of such suit, and that
such court may in its discretion assess reasonable costs, including reasonable
attorneys’ fees, against any party litigant in such suit, having due regard to
the merits and good faith of the claims or defenses made by such party
litigant; but the provisions of this Section shall not apply to any suit
instituted by the Company, to any suit instituted by the Trustee, to any suit
instituted by any Holder, or group of Holders, holding in the aggregate more
than 10% in principal amount of the Outstanding Securities of a series, or to
any suit instituted by any Holder of any Security for the enforcement of the
payment of the principal of or interest (including Special Interest, if any) on
any Security on or after the respective Stated Maturity or Maturities expressed
in such Security or for the enforcement of the right to convert any Security in
accordance with Article XII.

Section 5.15           Waiver
of Stay, Usury or Extension Laws.

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

ARTICLE VI

THE TRUSTEE

Section 6.1             Certain
Duties and Responsibilities.

(1)           Except
during the continuance of an Event of Default,

(A)          the Trustee undertakes to perform such
duties and only such duties as are specifically set forth in this Indenture,
and no implied covenants or obligations shall be read into this Indenture
against the Trustee; and

(B)           in the absence of bad faith on its
part, the Trustee may conclusively rely, as to the truth of the statements and
the correctness of the opinions expressed therein, upon certificates or

 

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opinions furnished to the Trustee and conforming to
the requirements of this Indenture, but in the case of any such certificates or
opinions which by any provision hereof are specifically required to be
furnished to the Trustee, the Trustee shall be under a duty to examine the same
to determine whether or not they conform to the requirements of this Indenture,
but not to verify the contents thereof. 

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

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

(A)          this paragraph (3) shall not be
construed to limit the effect of paragraph (1) of this Section; 

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

(C)           the Trustee shall not be liable with
respect to any action taken or omitted to be taken by it in good faith in
accordance with the direction of the Holders of a majority in principal amount
of the Outstanding Securities of a series relating to the time, method and
place of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred upon the Trustee, under this Indenture;
and

(D)          no provision of this Indenture shall
require the Trustee to expend or risk its own funds or otherwise incur any
financial liability in the performance of any of its duties hereunder, or in
the exercise of any of its rights or powers, if it shall have reasonable grounds
for believing that repayment of such funds or adequate indemnity against such
risk or liability is not reasonably assured to it. 

(4)           Whether
or not therein expressly so provided, every provision of this Indenture
relating to the conduct or affecting the liability of or affording protection
to the Trustee shall be subject to the provisions of this Section and the Trust
Indenture Act.

Section 6.2             Notice
of Defaults.

Within 90 days after the occurrence of any default
hereunder as to which the Trustee has received written notice, the Trustee
shall give to all Holders of Securities, in the manner provided in Section 1.6,
notice of such default, unless such default shall have been cured or waived; provided, however, that,
except in the case of a default in the payment of the principal of or interest
(including Special Interest, if any) on any Security, the Trustee shall be
protected in withholding such notice if

 

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and so long as the board of directors, the executive
committee or a trust committee of directors or Responsible Officers of the
Trustee in good faith determines that the withholding of such notice is in the
interest of the Holders; and provided, further, that in the case of any default of the character
specified in Section 5.1(6), no such notice to Holders of Securities shall be
given until at least 60 days after the occurrence thereof or, if applicable,
the cure period specified therein. For the purpose of this Section, the term
“default” means any event which is, or after notice or lapse of time or both
would become, an Event of Default.

Section 6.3             Certain
Rights of Trustee.

Subject to the provisions of Section 6.1:

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

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

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

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

(5)           the
Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request or direction of any of the
Holders of Securities pursuant to this Indenture, unless such Holders shall
have offered, and, if requested by the Trustee, delivered to the Trustee
reasonable security or indemnity against the costs, expenses and liabilities
which might be incurred by it in compliance with such request or direction;

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

 

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

Section 6.4             Not
Responsible for Recitals or Issuance of Securities.

The recitals contained herein and in the Securities
(except the Trustee’s certificates of authentication) shall be taken as the
statements of the Company, and the Trustee assumes no responsibility for their
correctness.  The Trustee makes no
representations as to the validity or sufficiency of this Indenture, of the
Securities or of the Common Stock issuable upon the conversion of the
Securities. The Trustee shall not be accountable for the use or application by
the Company of Securities or the proceeds thereof.

Section 6.5             May
Hold Securities, Act as Trustee under Other Indentures.

The Trustee, any Authenticating Agent, any Paying
Agent, any Conversion Agent or any other agent of the Company or the Trustee,
in its individual or any other capacity, may become the owner or pledgee of
Securities and may otherwise deal with the Company with the same rights it
would have if it were not Trustee, Authenticating Agent, Paying Agent,
Conversion Agent or such other agent.

The Trustee may become and act as trustee under other
indentures under which other securities, or certificates of interest or
participation in other securities, of the Company are outstanding in the same
manner as if it were not Trustee hereunder.

Section 6.6             Money
Held in Trust.

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

Section 6.7             Compensation
and Reimbursement.

The Company agrees: 

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

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

 

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(3)           to
indemnify the Trustee for, and to hold it harmless against, any loss, liability
or expense incurred without negligence or bad faith on its part, arising out of
or in connection with the acceptance or administration of this trust, including
the reasonable costs, expenses and reasonable attorneys’ fees of defending
itself against any claim or liability in connection with the exercise or
performance of any of its powers or duties hereunder.

The Trustee shall have a lien prior to the Securities
on all money or property held or controlled by the Trustee to secure the
Company’s payment obligations in this Section 6.7, except that held in trust to
pay principal and interest (including Special Interest) on the Securities.

When the Trustee incurs expenses or renders services
in connection with an Event of Default specified in Section 5.1(8) and Section
5.1(9), the expenses (including the reasonable charges of its counsel) and the
compensation for the services are intended to constitute expenses of the
administration under any applicable Federal or state bankruptcy, insolvency or
other similar law.

The provisions of this Section shall survive the
termination of this Indenture or the earlier resignation or removal of the
Trustee.

Section 6.8             Corporate
Trustee Required; Eligibility.

There shall at all times be a Trustee hereunder which
shall be a Person that is eligible pursuant to the Trust Indenture Act to act
as such, having (or be part of a holding company group with) a combined capital
and surplus of at least U.S. $10,000,000, subject to supervision or examination
by federal or state authority, and in good standing. The Trustee or an
Affiliate of the Trustee shall maintain an established place of business in the
Borough of Manhattan, The City of New York. If such corporation publishes
reports of condition at least annually, pursuant to law or to the requirements
of said supervising or examining authority, then for the purposes of this
Section, the combined capital and surplus of such corporation shall be deemed
to be its combined capital and surplus as set forth in its most recent report
of condition so published. If at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section, it shall resign
immediately in the manner and with the effect hereinafter specified in this
Article and a successor shall be appointed pursuant to Section 6.9.

Section 6.9             Resignation
and Removal; Appointment of Successor.

(1)           No
resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article shall become effective until the acceptance of
appointment by the successor Trustee in accordance with the applicable
requirements of Section 6.10.

(2)           The
Trustee may resign at any time by giving written notice thereof to the Company.
If the instrument of acceptance by a successor Trustee required by Section 6.10
shall not have been delivered to the Trustee within 30 days after the giving of
such notice of resignation, the resigning Trustee may petition any court of
competent jurisdiction for the appointment of a successor Trustee.

 

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(3)           The
Trustee may be removed at any time by an Act of the Holders of a majority in
principal amount of the Outstanding Securities, delivered to the Trustee and
the Company. If the instrument of acceptance by a successor Trustee required by
Section 6.10 shall not have been delivered to the Trustee within 30 days after
the giving of such notice of removal, the removed Trustee may petition any
court of competent jurisdiction for the appointment of a successor Trustee.

(4)           The
Trustee may be removed at any time by the Company and the Company may appoint a
successor Trustee pursuant to this Article, provided that
(i) there is not an Event of Default that is continuing at the time of removal,
(ii) the successor Trustee appointed by the Company meets the eligibility
requirements of Section 6.8, and (iii) such removal and resignation shall not
become effective until the acceptance of appointment by the successor Trustee
in accordance with the applicable requirements of Section 6.10.  

(5)           If
at any time:

(A)          the Trustee shall cease to be eligible
under Section 6.8 and shall fail to resign after written request therefor by
the Company or by any Holder of a Security who has been a bona fide Holder of a
Security for at least six months, or

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

then, in any such case (i) the Company, by a Board
Resolution, may remove the Trustee, or (ii) subject to Section 5.14, any Holder
of a Security who has been a bona fide Holder of a Security for at least six
months may, on behalf of himself and all others similarly situated, petition
any court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor Trustee.

(6)           If
the Trustee shall resign, be removed or become incapable of acting, or if a
vacancy shall occur in the office of Trustee for any cause, the Company, by a
Board Resolution, shall promptly appoint a successor Trustee and shall comply
with the applicable requirements of this Section and Section 6.10. If, within
one year after such resignation, removal or incapability, or the occurrence of
such vacancy, a successor Trustee shall be appointed by Act of the Holders of a
majority in principal amount of the Outstanding Securities delivered to the
Company and the retiring Trustee, the successor Trustee so appointed shall, forthwith
upon its acceptance of such appointment in accordance with the applicable
requirements of Section 6.10, become the successor Trustee and supersede the
successor Trustee appointed by the Company. If no successor Trustee shall have
been so appointed by the Company or the Holders of Securities and accepted
appointment in the manner required by this Section and Section 6.10, any Holder
of a Security who has been a bona fide Holder of a Security for at least six
months may, on behalf of himself and all others similarly situated, petition
any court of competent jurisdiction for the appointment of a successor Trustee.

 

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(7)           The
Company shall give notice of each resignation and each removal of the Trustee
and each appointment of a successor Trustee to all Holders of Securities in the
manner provided in Section 1.6. Each notice shall include the name of the
successor Trustee and the address of its Corporate Trust Office.

Section 6.10           Acceptance
of Appointment by Successor.

Every successor Trustee appointed hereunder shall
execute, acknowledge and deliver to the Company and to the retiring Trustee an
instrument accepting such appointment, and thereupon the resignation or removal
of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee; but, on the request
of the Company or the successor Trustee, such retiring Trustee shall, upon
payment of its charges, execute and deliver an instrument transferring to such
successor Trustee all the rights, powers and trusts of the retiring Trustee and
shall duly assign, transfer and deliver to such successor Trustee all property
and money held by such retiring Trustee hereunder. Upon request of any such
successor Trustee, the Company shall execute any and all instruments for more
fully and certainly vesting in and confirming to such successor Trustee all
such rights, powers and trusts.

No successor Trustee shall accept its appointment
unless at the time of such acceptance such successor Trustee shall be eligible
under this Article.

Section 6.11           Merger,
Conversion, Consolidation or Succession to Business.

Any corporation into which the Trustee may be merged
or converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which the Trustee shall be a
party, or any corporation succeeding to all or substantially all of the
corporate trust business of the Trustee (including the trust created by this
Indenture), shall be the successor of the Trustee hereunder, provided that such corporation shall be otherwise eligible
under this Article, without the execution or filing of any paper or any further
act on the part of any of the parties hereto. In case any Securities shall have
been authenticated, but not delivered, by the Trustee then in office, any
successor by merger, conversion or consolidation to such authenticating Trustee
may adopt such authentication and deliver the Securities so authenticated with
the same effect as if such successor Trustee had itself authenticated such
Securities.

Section 6.12           Authenticating
Agents.

The Trustee may, with the consent of the Company,
appoint an Authenticating Agent or Agents acceptable to the Company with
respect to the Securities, which Authenticating Agent shall be authorized to
act on behalf of the Trustee to authenticate Securities issued upon exchange or
substitution pursuant to this Indenture.

Securities authenticated by an Authenticating Agent
shall be entitled to the benefits of this Indenture and shall be valid and
obligatory for all purposes as if authenticated by the Trustee hereunder, and
every reference in this Indenture to the authentication and delivery of
Securities by

 

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the Trustee or the Trustee’s certificate of
authentication shall be deemed to include authentication and delivery on behalf
of the Trustee by an Authenticating Agent and a certificate of authentication
executed on behalf of the Trustee by an Authenticating Agent. Each
Authenticating Agent shall be subject to acceptance by the Company and shall at
all times be a corporation organized and doing business under the laws of the
United States of America, any State thereof or the District of Columbia,
authorized under such laws to act as Authenticating Agent and subject to
supervision or examination by government or other fiscal authority. If at any
time an Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section 6.12, such Authenticating Agent shall resign
immediately in the manner and with the effect specified in this Section 6.12.

Any corporation into which an Authenticating Agent may
be merged or converted or with which it may be consolidated, or any corporation
resulting from any merger, conversion or consolidation to which such
Authenticating Agent shall be a party, or any corporation succeeding to the
corporate agency or corporate trust business of an Authenticating Agent, shall
continue to be an Authenticating Agent, provided that
such corporation shall be otherwise eligible under this Section, without the
execution or filing of any paper or any further act on the part of the Trustee
or the Authenticating Agent.

An Authenticating Agent may resign at any time by
giving written notice thereof to the Trustee and to the Company. The Trustee
may at any time terminate the agency of an Authenticating Agent by giving
written notice thereof to such Authenticating Agent and to the Company. Upon
receiving such a notice of resignation or upon such a termination, or in case
at any time such Authenticating Agent shall cease to be eligible in accordance
with the provisions of this Section, the Trustee may appoint a successor
Authenticating Agent which shall be subject to acceptance by the Company. Any
successor Authenticating Agent, upon acceptance of its appointment hereunder,
shall become vested with all the rights, powers and duties of its predecessor
hereunder, with like effect as if originally named as an Authenticating Agent.
No successor Authenticating Agent shall be appointed unless eligible under the
provisions of this Section.

The Company agrees to pay to each Authenticating
Agent, from time to time, reasonable compensation for its services under this
Section.

 

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If an Authenticating Agent is appointed with respect
to the Securities pursuant to this Section, the Securities may have endorsed
thereon, in addition to or in lieu of the Trustee’s certification of
authentication, an alternative certificate of authentication in the following
form:

This is one of the Securities referred to in the
within-mentioned Indenture.

	
  

  	
  AMERICAN STOCK
  TRANSFER &

  
	
   

  	
  TRUST COMPANY

  
	
   

  	
  as Trustee

  
	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  As
  Authenticating Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  
					

Section 6.13           Disqualification; Conflicting
Interests.

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

Section 6.14           Preferential
Collection of Claims Against Company.

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

ARTICLE VII

CONSOLIDATION, MERGER, CONVEYANCE,

TRANSFER OR LEASE

Section 7.1             Company
May Consolidate, Etc. Only on Certain Terms.

The Company shall not consolidate with or merge with
or into any other Person or convey, transfer, lease or otherwise dispose of all
or substantially all of its properties and assets to any Person unless:

(1)           the
Person formed by such consolidation or into or with which the Company is merged
or the Person to which the properties and assets of the Company are so
conveyed, transferred, sold or leased shall be a corporation, limited liability
company, partnership or trust organized and validly existing under the laws of
the United States of America, any State thereof or the District of Columbia
and, if other than the Company, shall expressly assume, by an indenture
supplemental hereto, executed and delivered to the Trustee, in form satisfactory
to the Trustee, the

 

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due and punctual payment of the principal of and
interest (including Special Interest, if any) on all of the Securities as
applicable, and the performance or observance of every covenant of this
Indenture on the part of the Company to be performed or observed and shall have
provided for conversion rights in all material respects in accordance with
Article XII;

(2)           immediately
after giving effect to such transaction, no Event of Default, and no event that
after notice or lapse of time or both, would become an Event of Default, shall
have occurred and be continuing; and

(3)           the
Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that such consolidation, merger, conveyance, transfer,
lease or other disposal and, if a supplemental indenture is required in
connection with such transaction, such supplemental indenture comply with this
Article and that all conditions precedent herein provided for relating to such
transaction have been complied with, together with any documents required under
Section 8.3.

For purposes of this Section, the sale, lease,
conveyance assignment, transfer, or other disposition of all or substantially
all of the properties and assets of one or more Subsidiaries of the Company,
which properties and assets, if held by the Company instead of such
Subsidiaries, would constitute all or substantially all of the properties and
assets of the Company on a consolidated basis, shall be deemed to be the
transfer of all or substantially all of the properties and assets of the
Company.

Section 7.2             Successor
Substituted.

Upon any consolidation of the Company with, or merger
of the Company with or into any other Person or any conveyance, transfer, lease
or other disposal of all or substantially all the properties and assets of the
Company in accordance with Section 7.1, the successor Person formed by such
consolidation or into or with which the Company is merged or to which such
conveyance, transfer or lease is made shall succeed to, and be substituted for,
and may exercise every right and power of, the Company under this Indenture
with the same effect as if such successor Person had been named as the Company
herein, and thereafter, except in the case of a lease, the predecessor Person
shall not be relieved of all obligations and covenants under this Indenture and
the Securities.

ARTICLE VIII

SUPPLEMENTAL
INDENTURES

Section 8.1             Supplemental
Indentures Without Consent of Holders of Securities.

Without the consent of any Holders of Securities, the
Company, when authorized by a Board Resolution, and the Trustee, at any time
and from time to time, may enter into one or more indentures supplemental
hereto for any of the following purposes:

(1)           to
cure any ambiguity, to correct or supplement any provision herein that may be
inconsistent with any other provision herein or that is otherwise defective; or

 

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(2)           to
evidence the succession of another Person to the Company and the assumption by
any such successor of the covenants and obligations of the Company herein and
in the Securities as permitted by Article VII; or

(3)           to
provide for uncertificated Securites in addition to or in place of certificated
Securities (provided that the uncertificated
Securities are issued in registered form for purposes of Section 163(f) of the
Code, or in a manner such that the uncertificated Securities are described in
Section 163(f)(2)(B) of the Code); or

(4)           to
add guarantees with respect to the Securities; or

(5)           to
secure the Securities; or

(6)           to
add to the covenants of the Company or Events of Default for the benefit of the
Holders of Securities or to surrender any right or power herein conferred upon
the Company; or

(7)           to
make provision with respect to the conversion rights of Holders of Securities
pursuant to Section 12.11 or to make provision with respect to the repurchase
rights of Holders of Securities pursuant to Section 12.11; or

(8)           to
make any changes or modifications to this Indenture necessary in connection
with the registration of any Registrable Securities under the Securities Act as
contemplated by Section 10.8, provided that
such action pursuant to this clause (8) shall not adversely affect the
interests of the Holders of Securities in any material respect; or

(9)           to
comply with the requirements of the Trust Indenture Act or the rules and
regulations of the SEC thereunder in order to effect or maintain the
qualification of this Indenture under the Trust Indenture Act, as contemplated
by this Indenture or otherwise; or

(10)         to
evidence and provide for the acceptance of appointment hereunder by a successor
Trustee; or

(11)         to
provide for the issuance of Additional Securities in accordance with the terms
and conditions of this Indenture; or

(12)         to
make any other provisions with respect to matters or questions arising under
this Indenture as the Company and the Trustee may deem necessary or desirable, provided that such action pursuant to this clause (12) shall
not adversely affect the interests of the Holders of Securities in any material
respect.

Upon Company Request, accompanied by a Board
Resolution authorizing the execution of any such supplemental indenture, and
subject to and upon receipt by the Trustee of the documents described in
Section 8.3, the Trustee shall join with the Company in the execution of any
supplemental indenture authorized or permitted by the terms of this Indenture
and to make any further appropriate agreements and stipulations that may be
therein contained.

 

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Notwithstanding any other provision of the Indenture
or the Securities, the Registration Rights Agreement and the obligation to pay
Special Interest thereunder may be amended, modified or waived in accordance
with the provisions of the Registration Rights Agreement.  

Section 8.2             Supplemental
Indentures with Consent of Holders of Securities.

With the written consent of the Holders of not less
than a majority in principal amount of the Outstanding Securities of each
series affected by such supplemental indenture, by the Act of said Holders
delivered to the Company and the Trustee, the Company, when authorized by a
Board Resolution, and the Trustee may enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Indenture or of
modifying in any manner the rights of the Holders of Securities of such series
under this Indenture; provided, however, that no such supplemental indenture shall, without
the consent of the Holder of each Outstanding Security affected thereby:

(1)           reduce
the percentage in aggregate principal amount of Securities of a series the
Holders of which must consent to an amendment; or

(2)           reduce
the rate, or extend the stated time of payment, of interest on any Security; or

(3)           reduce
the principal, or extend the Stated Maturity, of any Security; or 

(4)           make
any change that adversely affects the conversion rights of any Securities; or

(5)           reduce
the Designated Event Repurchase Price of any Security or amend or modify in any
manner adverse to the Holders of the Securities the Company’s obligations to
make such payments, whether through an amendment or waiver of provisions in the
covenants, definitions or otherwise; or

(6)           change
the place or currency of payment of principal or interest in respect of any
Security; or 

(7)           impair
the right of any Holder to receive payment of principal of, and interest on,
such Holder’s Securities on or after the due dates therfor or to institute suit
for the enforcement of any payment on or with respect to such Holder’s Security;
or

(8)           make
any change in the provisions of this Article that require each Holder’s consent
or in the waiver provisions in Section 5.2 and Section 5.13.

It shall not be necessary for any Act of Holders of
Securities under this Section to approve the particular form of any proposed
supplemental indenture, but it shall be sufficient if such Act shall approve
the substance thereof.

 

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Section 8.3             Execution
of Supplemental Indentures.

In executing, or accepting the additional trusts
created by, any supplemental indenture permitted by this Article or the
modifications thereby of the trusts created by this Indenture, the Trustee
shall be entitled to receive, and (subject to Section 6.1 and
Section 6.3) shall be fully protected in relying upon, an Opinion of
Counsel stating that the execution of such supplemental indenture is authorized
or permitted by this Indenture, and that such supplemental indenture has been
duly authorized, executed and delivered by the Company and constitutes a valid
and legally binding obligation of the Company enforceable against the Company
in accordance with its terms subject to general equity principles and applicable
bankruptcy, insolvency, fraudulent transfer or conveyance, reorganization,
arrangement, dissolution, moratorium or other similar laws relating to or
affecting creditors’ rights generally. The Trustee may, but shall not be
obligated to, enter into any such supplemental indenture which affects the
Trustee’s own rights, duties or immunities under this Indenture or otherwise.

Section 8.4             Effect
of Supplemental Indentures.

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

Section 8.5             Reference
in Securities to Supplemental Indentures.

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

Section 8.6             Notice
of Supplemental Indentures.

Promptly after the execution by the Company and the
Trustee of any supplemental indenture pursuant to the provisions of
Section 8.2, the Company shall give notice to all Holders of Securities of
such fact, setting forth in general terms the substance of such supplemental
indenture, in the manner provided in Section 1.6. Any failure of the Company
to give such notice, or any defect therein, shall not in any way impair or
affect the validity of any such supplemental indenture.

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ARTICLE IX

HOLDERS LISTS AND BY TRUSTEE
AND COMPANY

Section 9.1             Company
to Furnish Trustee Names and Addresses of Holders.

The Company will furnish or cause to be furnished to
the Trustee:

(1)         semi-annually, not more than 15 days
after the Regular Record Date, a list, in such form as the Trustee may
reasonably require, of the names and addresses of the Holders of Securities as
of such Regular Record Date, and

(2)         at such other times as the Trustee may
reasonably request in writing, within 30 days after the receipt by the Company
of any such request, a list of similar form and content as of a date not more
than 15 days prior to the time such list is furnished;

provided,
however, that no such list need
be furnished so long as the Trustee is acting as Security Registrar.

Section 9.2             Preservation
of Information.

(1)         The Trustee shall preserve, in as
current a form as is reasonably practicable, the names and addresses of Holders
contained in the most recent list furnished to the Trustee as provided in
Section 9.1 and the names and addresses of Holders received by the Trustee
in its capacity as Security Registrar. The Trustee may destroy any list, if
any, furnished to it as provided in Section 9.1 upon receipt of a new list
so furnished.

(2)         After this Indenture has been qualified
under the Trust Indenture Act, the rights of Holders to communicate with other
Holders with respect to their rights under this Indenture or under the
Securities, and the corresponding rights, and duties of the Trustee, shall be
as provided by the Trust Indenture Act.

(3)         Every Holder of Securities, by
receiving and holding the same, agrees with the Company and the Trustee that
neither the Company nor the Trustee nor any agent of either of them shall be
held accountable by reason of any disclosure of information as to names and
addresses of Holders made pursuant to the Trust Indenture Act.

Section 9.3             Reports
by Trustee.

(1)         After this Indenture has been qualified
under the Trust Indenture Act, the Trustee shall transmit to Holders such
reports concerning the Trustee and its actions under this Indenture as may be
required pursuant to the Trust Indenture Act at the times and in the manner
provided pursuant thereto.

(2)         After this Indenture has been qualified
under the Trust Indenture Act, a copy of each such report shall, at the time of
such transmission to Holders, be filed by the Trustee with each 

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stock exchange
upon which the Securities are listed, with the SEC and with the Company. The
Company will notify the Trustee when the Securities are listed on any stock
exchange.

Section 9.4             Reports
by Company.

(1)           The
Company shall file any documents that it is required to file with the SEC
pursuant to Section 13 or 15(d) of the Exchange Act with the Trustee within 30
days after the same are required to be filed with the SEC.

(2)           Delivery
of such reports, information and documents to the Trustee is for informational
purposes only, and the Trustee’s receipt of such shall not constitute
constructive notice of any information contained therein or determinable from
information contained therein, including the Company’s compliance with any of
its covenants hereunder (as to which the Trustee is entitled to conclusively
rely exclusively on an Officers’ Certificate).

ARTICLE X

COVENANTS

Section 10.1           Payment
of Principal and Interest.

The Company covenants and agrees that it will duly and
punctually pay the principal of and interest (including Special Interest, if
any) on the Securities in accordance with the terms of the Securities and this
Indenture. The Company will deposit or cause to be deposited with the Trustee
or its nominee, no later than the opening of business on the date of the Stated
Maturity of any Security or no later than the opening of business on the due
date for any installment of interest, all payments so due, which payments shall
be in immediately available funds on the date of such Stated Maturity or due date,
as the case may be.

Section 10.2           Maintenance
of Offices or Agencies.

The Company will maintain in the Borough of Manhattan,
The City of New York, an office or agency where the Securities may be
surrendered for registration of transfer or exchange or for presentation for
payment or for conversion or repurchase and where notices and demands to or
upon the Company in respect of the Securities and this Indenture may be served.
The Company will give prompt written notice to the Trustee of the location, and
any change in the location, of such office or agency not designated or
appointed by the Trustee. If at any time the Company shall fail to maintain any
such required office or agency or shall fail to furnish the Trustee with the
address thereof, such presentations, surrenders, notices and demands may be
made or served at the Corporate Trust Office or the office or agency of the
Trustee in the Borough of Manhattan, The City of New York.

The Company may at any time and from time to time vary
or terminate the appointment of any such agent or appoint any additional agents
for any or all of such purposes; provided,
however, that until all of the
Securities have been delivered to the Trustee for cancellation, or moneys
sufficient to pay the principal of and interest (including Special Interest, if
any) on the Securities 

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have been made available for payment and either paid
or returned to the Company pursuant to the provisions of Section 10.3, the
Company will maintain in the Borough of Manhattan, The City of New York, an
office or agency where Securities may be presented or surrendered for payment
and conversion, which shall initially be the Corporate Trust Office where
Securities may be surrendered for registration of transfer or exchange and
where notices and demands to or upon the Company in respect of the Securities
and this Indenture may be served. The Company will give prompt written notice
to the Trustee, and notice to the Holders in accordance with Section 1.6,
of the appointment or termination of any such agents and of the location and
any change in the location of any such office or agency.

The Company hereby initially designates the Trustee as
Paying Agent, Security Registrar, and Conversion Agent, and each of the
Corporate Trust Office of the Trustee and the office or agency of the Trustee
in the Borough of Manhattan, The City of New York, located at 59 Maiden Lane,
New York, New York 10038, attention: (i) Corporate Trust Administration
(priceline.com Incorporated 0.50% Convertible Senior Notes due 2011) or (ii)
Corporate Trust Administration (priceline.com Incorporated 0.75% Convertible
Senior Notes due 2013), as one such office or agency of the Company for each of
the aforesaid purposes.

Section 10.3           Money
for Security Payments to Be Held in Trust.

If the Company shall act as its own Paying Agent, it
will, on or before each due date of the principal of or interest (including
Special Interest, if any) on any of the Securities, segregate and hold in trust
for the benefit of the Persons entitled thereto a sum sufficient to pay the
principal or interest so becoming due until such sums shall be paid to such
Persons or otherwise disposed of as herein provided and the Company will
promptly notify the Trustee of its action or failure so to act.

Whenever the Company shall have one or more Paying
Agents, it will, no later than the opening of business on each due date of the
principal of or interest on any Securities, deposit with the Trustee a sum in
funds immediately payable on the payment date sufficient to pay the principal
or interest so becoming due, such sum to be held for the benefit of the Persons
entitled to such principal or interest, and (unless such Paying Agent is the
Trustee) the Company will promptly notify the Trustee of any failure so to act.

The Company will cause each Paying Agent other than
the Trustee to execute and deliver to the Trustee an instrument in which such
Paying Agent shall agree with the Trustee, subject to the provisions of this
Section, that such Paying Agent will:

(1)         hold all sums held by it for the
payment of the principal of or interest on Securities for the benefit of the
Persons entitled thereto until such sums shall be paid to such Persons or
otherwise disposed of as herein provided;

(2)         give the Trustee notice of any default
by the Company (or any other obligor upon the Securities) in the making of any
payment of principal or interest; and

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(3)         at any time during the continuance of
any such default, upon the written request of the Trustee, forthwith pay to the
Trustee all sums so held by such Paying Agent.

The Company may at any time, for the purpose of
obtaining the satisfaction and discharge of this Indenture or for any other
purpose, pay, or by Company Order direct any Paying Agent to pay, to the
Trustee all sums held in trust by the Company or such Paying Agent, such sums
to be held by the Trustee upon the same trusts as those upon which such sums
were held by the Company or such Paying Agent; and, upon such payment by any
Paying Agent to the Trustee, such Paying Agent shall be released from all
further liability with respect to such money.

Any money deposited with the Trustee or any Paying
Agent, or then held by the Company, in trust for the payment of the principal
of or interest on any Security and remaining unclaimed for two years after such
principal or interest has become due and payable shall be paid within 60 days
of such date by the Trustee to the Company on Company Request as its property
free from trust, or (if then held by the Company) shall be discharged from such
trust; and the Holder of such Security shall thereafter, as an unsecured
general creditor, look only to the Company for payment thereof, and all
liability of the Trustee or such Paying Agent with respect to such trust money,
and all liability of the Company as trustee thereof, shall thereupon cease.

Section 10.4           Existence.

Subject to Article VII, the Company will do or cause
to be done all things necessary to preserve and keep in full force and effect
its existence, rights (charter and statutory) and franchises; provided, however,
that the Company shall not be required to preserve any such right or franchise
if the Company shall determine that the preservation thereof is no longer
desirable in the conduct of the business of the Company and that the loss thereof
is not disadvantageous in any material respect to the Holders.

Section 10.5           Statement
by Officers as to Default.

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

The Company will deliver to the Trustee, forthwith
upon becoming aware of any default or any Event of Default under the Indenture,
an Officers’ Certificate specifying with particularity such default or Event of
Default and further stating what action the Company has taken, is taking or
proposes to take with respect thereto. 
For the purpose of this Section, the term “default” means any event
which is, or after notice or lapse of time or both would become, an Event of
Default.

Any notice required to be given under this Section
shall be delivered to the Trustee at its Corporate Trust Office.

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Section 10.6           Delivery
of Certain Information.

At any time when the Company is not subject to Section
13 or 15(d) of the Exchange Act, upon the request of a Holder of a Restricted
Security or the holder of shares of Common Stock issued upon conversion
thereof, the Company will promptly furnish or cause to be furnished Rule 144A
Information (as defined below) to such Holder of Restricted Securities or such
holder of shares of Common Stock issued upon conversion of Restricted
Securities, or to a prospective purchaser of any such security designated by
any such Holder or holder, as the case may be, to the extent required to permit
compliance by such Holder or holder with Rule 144A under the Securities Act (or
any successor provision thereto) in connection with the resale of any such
security; provided, however, that the Company shall not be
required to furnish such information in connection with any request made on or
after the date that is two years from the later of (i) the date such a security
(or any such predecessor security) was last acquired from the Company or (ii)
the date such a security (or any such predecessor security) was last acquired
from an “affiliate” of the Company within the meaning of Rule 144 under the
Securities Act (or any successor provision thereto). “Rule 144A Information”
shall be such information as is specified pursuant to Rule 144A(d)(4) under the
Securities Act (or any successor provision thereto).

Section 10.7           Resale
of Certain Securities.

During the period beginning on the last date of
original issuance of the Securities and ending on the date that is two years
from such date (or such shortened period under Rule 144(k) under the Securities
Act or any successor rule), the Company will not, and will not permit any of its
subsidiaries or other “affiliates” (as defined under Rule 144 under the
Securities Act or any successor provision thereto) to, resell (i) any
Securities that constitute “restricted securities” under Rule 144 or (ii) any
securities into which the Securities have been converted under this Indenture
that constitute “restricted securities” under Rule 144, that in either case
have been reacquired by any of them.  The
Trustee shall have no responsibility in respect of the Company’s performance of
its agreement in the preceding sentence.

Section 10.8           Registration
Rights.

The Company agrees that the Holders from time to time
of Registrable Securities (as defined below) are entitled to the benefits of a
Registration Rights Agreement, dated as of September 27, 2006 (the “Registration
Rights Agreement”), executed by the Company as it may be amended from time to
time in accordance with its terms.

Whenever in this Indenture there is mentioned, in any
context, the payment of the principal of or interest on, or in respect of, any
Security, such mention shall be deemed to include mention of the payment of
Special Interest provided for in this Section to the extent that, in such
context, Special Interest are, were or would be payable in respect thereof
pursuant to the provisions of this Section and express mention of the payment
of Special Interest (if applicable) in any provisions hereof shall not be
construed as excluding Special Interest in those provisions hereof where such
express mention is not made.

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For the purposes of the Registration Rights Agreement,
“Registrable Securities” means all or any portion of the Securities issued from
time to time under this Indenture in registered form and the shares of Common
Stock issuable upon conversion of such Securities; provided, however,
that a security ceases to be a Registrable Security when it is no longer a
Restricted Security.

If a Security, or the shares of Common Stock issuable
upon conversion of a Security, is a Registrable Security, and the Holder
thereof elects to sell such Registrable Security pursuant to the Shelf
Registration Statement then, by its acceptance thereof, the Holder of such
Registrable Security will have agreed to be bound by the terms of the
Registration Rights Agreement relating to the Registrable Securities which are
the subject of such election.

For the purposes of the Registration Rights Agreement,
the term “Holder” includes any Person that has a beneficial interest in any
Restricted Global Security or any beneficial interest in a global security
representing shares of Common Stock issuable upon conversion of a Security.

If Special Interest is payable under the Registration
Rights Agreement, the Company shall deliver to the Trustee a certificate to
that effect stating (i) the amount of Special Interest that is payable and (ii)
the date on which Special Interest is payable. 
Unless and until a Responsible Officer of the Trustee receives at the
Corporate Trust Office such a certificate, the Trustee may assume without
inquiry that no Special Interest is payable. 
If Special Interest has been paid by the Company directly to the persons
entitled to them, the Company shall deliver to the Trustee a certificate
setting forth the particulars of such payment.

Section 10.9           Waiver
of Certain Covenants.

The Company may omit, with respect to the Securities
of any series, in any particular instance to comply with any covenant or
condition set forth in Section 10.4 (other than with respect to the
existence of the Company (subject to Article VII)) and Section 10.7, if
before the time for such compliance the Holders of not less than a majority in
principal amount of the Outstanding Securities of such series, by Act of such
Holders, either waive such compliance in such instance or generally waive
compliance with such covenant or condition, but no such waiver shall extend to
or affect such covenant or condition except to the extent so expressly waived,
and, until such waiver shall become effective, the obligations of the Company
and the duties of the Trustee or any Paying or Conversion Agent in respect of
any such covenant or condition shall remain in full force and effect.

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ARTICLE XI

[Reserved]

ARTICLE XII

CONVERSION OF SECURITIES

Section 12.1           Conversion
Privilege and Conversion Rate.

(a)           Subject to the conditions described in clause (1), (2),
and (3) below, and upon compliance with the provisions of this Article, a
Holder shall have the right, at such Holder’s option, to convert all or any
portion (if the portion to be converted is $1,000 principal amount or an
integral multiple thereof) of such Security at any time prior to the close of
business on the scheduled Trading Day immediately preceding June 30, 2011, with
respect to the 2011 Notes, and at any time prior to the close of business on
the scheduled Trading Day immediately preceding June 30, 2013, with respect to
the 2013 Notes, at a rate (the “Conversion
Rate”) of 24.7647 shares of Common Stock (subject to adjustment by the
Company as provided in Section 12.04) per $1,000 principal amount of the
Security (the “Conversion Obligation”)
under the circumstances and during the periods set forth below. On and after
June 30, 2011, with respect to the 2011 Notes, and on and after June 30, 2013,
with respect to the 2013 Notes, regardless of the conditions described in
clause (1), (2) and (3) below, and upon compliance with the
provisions of this Article, a Holders shall have the right, at such Holder’s
option, to convert all or any portion (if the portion to be converted is $1,000
principal amount or an integral multiple thereof) of such Security at any time
prior to the close of business on the scheduled Trading Day immediately
preceding the Stated Maturity.

(1)         The 2011 Notes shall be convertible
prior to June 30, 2011, and the 2013 Notes shall be convertible prior to June
30, 2013, during the five Business Day period immediately after any five
consecutive Trading Day period (the “Measurement Period”) in which the Trading Price per $1,000
principal amount of the applicable series of Securities for each day of such
Measurement Period was less than 98% of the product of the Last Reported Sale
Price of the Common Stock on such date and the Conversion Rate on such date,
all as determined by the Trustee. The Trustee shall have no obligation to
determine the Trading Price of the Securities unless requested by the Company
to do so in writing, and the Company shall have no obligation to make such
request unless a Holder provides the Company with reasonable evidence that the
Trading Price of the applicable series of Securities would be less than 98% of
the product of (a) the then-applicable Conversion Rate of the Securities
and (b) the Last Reported Sale Price at such time, at which time the
Company shall instruct the Trustee to determine the Trading Price of the
applicable series of Securities beginning on the next Trading Day and on each
successive Trading Day until the Trading Price per Security of such series is
greater than or equal to 98% of the product of (a) the then-applicable
Conversion Rate of the Securities and (b) the Last Reported Sale Price on
such date. If the Trading Price condition set forth above has been met, the
Company shall so notify the Holders of the applicable series of Securities. If,
at any time after the Trading Price condition set forth above has been met, the
Trading Price per $1,000 principal amount of the applicable series of
Securities is greater than 98% of the product of (a) the then-applicable
Conversion Rate of the Securities and (b) the Last Reported Sale Price on
such date, the Company shall so notify the Holders of the applicable series of
Securities, and the Trustee shall have no further obligation to 

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determine the
Trading Price of the Securities unless requested by the Company to do so again
in writing pursuant to this Section 12.1(a)(1).

(2)         The 2011 Notes shall be convertible prior to June 30, 2011,
and the 2013 Notes shall be convertible prior to June 30, 2013, during any
calendar quarter after the calendar quarter ending December 31, 2006, if the
Last Reported Sale Price of the Common Stock for twenty (20) or more
Trading Days in a period of thirty (30) consecutive Trading Days ending on
the last Trading Day of the immediately preceding calendar quarter exceeds 120%
of the applicable Conversion Price in effect on the last Trading Day of the
immediately preceding calendar quarter.

(3)         The 2011 Notes shall be convertible
prior to June 30, 2011, and the 2013 Notes shall be convertible prior to June
30, 2013, as provided in subsections (b), (c) and (d) of this Section.

(b)                                 In the event that the Company elects to:

(1)           distribute to all or substantially
all holders of Common Stock rights entitling them to purchase, for a period
expiring within 60 days after the record date for such distribution,
Common Stock at a price less than the Last Reported Sale Price of the Common
Stock for the Trading Day immediately preceding the declaration date of such
distribution; or

(2)           distribute to all or
substantially all holders of Common Stock, assets or debt securities of the
Company or rights to purchase the Company’s securities, which distribution has
a per share value (as determined by the Board of Directors) exceeding 10% of
the Last Reported Sale Price of the Common Stock on the day immediately
preceding the date of declaration of such distribution,

then, in
either case, Holders may surrender the Securities for conversion at any time on
and after the date that the Company provides notice to Holders referred to in
the next sentence until the earlier of the close of business on the Business
Day immediately preceding the Ex-Dividend Date for such distribution or the
date the Company announces that such distribution will not take place. The
Company shall notify Holders of any distribution referred to in either clause
(1) or clause (2) above and of the resulting conversion right no later
than the 20th Business Day prior to the Ex-Dividend Date for
such distribution. A Holder may not exercise this right if such Holder is
permitted to participate in the distribution on an as-converted basis without
having to convert its Securities.

(c)           If the Company consolidates with or merges with or into
another Person or is a party to a binding share exchange or conveys, transfers,
sells, leases or otherwise disposes of all or substantially all of its
properties and assets in each case pursuant to which the Common Stock would be
converted into cash, securities and/or other property, then the Holders shall
have the right to convert Securities at any time beginning 15 calendar days
prior to the date announced by the Company as the anticipated effective date of
the transaction and until and including the date that is 15 calendar days after
the date that is the effective date of such transaction; provided such transaction does not
otherwise constitute a Designated Event to which the provisions of subsection
(d) of this Section shall apply. The Company will notify Holders at least 20
calendar days prior to the anticipated effective date of such transaction. The
Board of Directors shall determine the 

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anticipated effective date
of the transaction, and such determination shall be conclusive and binding on
the Holders and shall be publicly announced by the Company and posted on its
web site not later than two Business Day prior to such 15th calendar day prior
to such  anticipated effective date.

(d)           If the Company is a party to any transaction or event that
constitutes a Designated Event, a Holder may surrender Securities for
conversion at any time from and after the 30th scheduled Trading Day prior to
the anticipated effective date of such transaction or event until the related
Designated Event Repurchase Date and, upon such surrender, if such Designated
Event also constitutes a Fundamental Change, the Holder shall be entitled to
the increase in the Conversion Rate, if any, specified in subsection (e) of
this Section; provided, however that no increase will be made in the case of
Fundamental Change if at least 90% of the consideration paid for the Company’s
Common Stock (excluding cash payments for fractional shares and cash payments
made pursuant to dissenters’ appraisal rights) in such Fundamental Change
transaction consists of shares of capital stock traded on the New York Stock
Exchange or another U.S. national securities exchange or quoted on The Nasdaq
National Market or another established automated over-the-counter trading
market in the United States (or that will be so traded or quoted immediately
following the transaction) and as a result of such transaction or transactions
the Securities become convertible into such shares of such capital stock. The
Company shall give notice in writing to all record Holders and the Trustee of
the Designated Event no later than 30 scheduled Trading Days prior to the
anticipated effective date of the Designated Event.

(e)           (1) If a Holder elects to convert Securities in
connection with a Fundamental Change that occurs prior to Stated Maturity, the
Conversion Rate applicable to each $1,000 principal amount of Securities so
converted shall be increased by an additional number of shares of Common Stock
(the “Additional Shares”) as
described below. Settlement of Securities tendered for conversion to which
Additional Shares shall be added to the Conversion Rate as provided in this
subsection shall be settled pursuant to Section 12. 2(d). For purposes of
this subsection (e), a conversion shall be deemed to be “in connection with” a
Fundamental Change to the extent that such conversion is effected during the
time period specified in subsection (d) of this Section (regardless of whether
the provisions of clause (a)(1), (a)(2), (b) or (c) of this Section
shall apply to such conversion).

(2)           The number of Additional Shares by which the Conversion
Rate will be increased shall be determined by reference to the tables attached
as Schedule A hereto, based on the date on which the Fundamental Change
occurs or becomes effective (the “Effective
Date”), and the Stock Price; provided
that if the actual Stock Price is between two Stock Price amounts in
the table or the Effective Date is between two Effective Dates in the table,
the number of Additional Shares shall be determined by a straight-line
interpolation between the number of Additional Shares set forth for the next
higher and next lower Stock Price amounts and the two nearest Effective Dates,
as applicable, based on a 365-day year; provided
further that if (1) the Stock Price is greater than $100.00 per
share of Common Stock (subject to adjustment in the same manner as set forth in
Section 12.4), no Additional Shares will be added to the Conversion Rate,
and (2) the Stock Price is less than $33.65 per share (subject to
adjustment in the same manner as set forth in Section 12.4), no Additional
Shares will be added to the Conversion Rate. Notwithstanding the foregoing, in
no event will the total number of shares of Common Stock issuable upon
conversion exceed 29.7177 per $1,000 

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principal amount of
Securities (subject to adjustment in the same manner as set forth in
Section 12.4).

(3)           The Stock Prices set forth in the first row of the tables
in Schedule A hereto shall be adjusted by the Company as of any date on
which the Conversion Rate of the Securities is adjusted. The adjusted Stock
Prices shall equal the Stock Prices applicable immediately prior to such
adjustment, multiplied by a fraction, the numerator of which is the Conversion
Rate in effect immediately prior to the adjustment giving rise to the Stock
Price adjustment and the denominator of which is the Conversion Rate as so
adjusted. The number of Additional Shares within the table shall be adjusted in
the same manner as the Conversion Rate as set forth in Section 12.4 (other
than by operation of an adjustment to the Conversion Rate by adding Additional
Shares).

(f)            Notwithstanding anything to the contrary contained in
this Indenture, in no event shall Goldman, Sachs & Co. be entitled to
receive, or shall be deemed to receive, any shares of Common Stock if, upon
such receipt of such shares of Common Stock, the “beneficial ownership” (within
the meaning of Section 13 of the Exchange Act and the rules promulgated
therunder) of shares of Common Stock by Goldman, Sachs & Co. or any of its
affiliates that are subject to aggregation with Goldman, Sachs & Co.
(collectively, the “Goldman Group”) would be equal to or greater than 9.5% or
more of the outstanding shares of Common Stock. 
If any delivery owed to Goldman, Sachs & Co. hereunder is not made,
in whole or in part, as a result of this provision, the Company’s obligation to
make such a delivery shall not be extinguished and the Company shall make such
delivery as promptly as practicable after, but in no event later than one
Business Day after, Goldman, Sachs & Co. gives notice to the Company that
such delivery would not result in the Goldman Group directly or indirectly so
beneficially owning in excess of 9.5% of the outstanding shares of Common
Stock.

Section 12.2           Exercise
of Conversion Privilege.

(a)           (1)           Subject
to subsection (b) of this Section, the Company will satisfy the Conversion
Obligation with respect to each $1,000 principal amount of Securities tendered
for conversion in cash and shares of fully paid Common Stock, if applicable, by
delivering, on the third Trading Day immediately following the last day of the
related Observation Period, cash and shares of Common Stock, if any, equal to
the sum of the Daily Settlement Amounts for each of the 20 Trading Days during
the related Observation Period; provided that the
Company will deliver cash in lieu of fractional shares of Common Stock as
provided in Section 12.3. The Daily Settlement Amounts shall be determined by
the Company promptly following the last day of the Observation Period.  Notwithstanding any contained to the contrary
in this Indenture, in no event shall the number of shares of Common Stock
issued upon conversion of the Securities exceed 23.3024 shares of Common Stock per
$1,000 (the “Conversion Cap”) principal amount of Securities, except as a
result of the adjustments to the Conversion Rate pursuant to Section 12.4, and
the Company shall not be required to make any additional cash payment in lieu
of delivering any shares of Common Stock in excess of the Conversion Cap.

(2)           The Company may elect to pay cash to
Holders of Securities surrendered for conversion in lieu of all or a portion of
the shares of Common Stock issuable upon conversion of the

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Securities in
satisfaction of the Conversion Obligation. 
If the Company elects to pay cash in lieu of delivering shares of Common
Stock, the Company shall notify, in the manner provided for in Section 1.6, the
Holder tendering a Notice of Conversion of the dollar amount to be satisfied in
cash (as a percentage of each share of Common Stock issuable upon conversion
that will be paid in cash in lieu of shares of Common Stock) at any time on or
before the date that is three Business Days following the Company’s receipt of
the Notice of Conversion tendered by such Holder (the “Cash Settlement Notice
Period”).  If the Company timely elects
to pay cash for any portion of shares of Common Stock to be issued upon
conversion of Securities, such Holder may retract its Notice of Conversion at
any time during the two Business Day period immediately following the Cash
Settlement Notice Period (the “Conversion Retraction Period”). If the Company
does not elect to pay cash in lieu of issuing shares of Common Stock upon conversion
of Securities, no such retraction can be made and the Notice of Conversion is
irrevocable.  In the event the Company
elects to settle in cash all or any portion of the shares of Common Stock
issuable upon conversion in connection with conversions of a series of
Securities within 30 days prior to the Stated Maturity of such series of
Securities, the Company shall send, on or prior to the applicable Stated
Maturity, a single notice for all such conversions to the Trustee with respect
to the dollar amount to be satisfied in cash (as a percentage of each share of
Common Stock issuable upon conversion that will be paid in cash in lieu of
shares of Common Stock). The amount of cash payable in respect of each share of
Common Stock otherwise issuable upon conversion of Securities shall equal the
sum of the Elected Cash Values for shares of Common Stock issuable upon
conversion of Securities for each Trading Day of the applicable Observation
Period.  The “Elected Cash Value” for
shares of Common Stock issuable upon conversion of Securities for a Trading Day
shall be the product of (1) the percentage of each share of Common Stock
issuable upon conversion of Securities which the Company elects to pay in cash
and (2) the difference between the Daily Conversion Value for such Trading Day
and $50.

(b)           Notwithstanding subsection (a) of this Section, the
Company shall satisfy the Conversion Obligation with respect to each $1,000
principal amount of Securities tendered for conversion to which Additional
Shares shall be added to the Conversion Rate as set forth in
Section 12.1(e) pursuant to this clause (b); provided,
the Company may elect to pay cash to Holders of Securities surrendered
for conversion in lieu of all or a portion of the shares of Common Stock
issuable upon conversion of the Securities in satisfaction of the Conversion
Obligation pursuant to clause (2) of subsection (a) of this Section.

(1)           If
the last day of the applicable Observation Period related to Securities
surrendered for conversion is prior to the third Trading Day preceding the
Effective Date of the Fundamental Change, the Company will satisfy the related
Conversion Obligation with respect to each $1,000 principal amount of
Securities tendered for conversion as described in this subsection (b) by
delivering the cash and shares of Common Stock (based on the Conversion Rate,
but without regard to the number of Additional Shares to be added to the
Conversion Rate pursuant to Section 12.01(e)) on the third Trading Day
immediately following the last day of the applicable Observation Period. As
soon as practicable following the Effective Date of the Fundamental Change, the
Company will deliver the increase in such amount of cash and Reference Property
in lieu of shares of Common Stock, if any, as if the Conversion Rate had been
increased by such number of Additional Shares during the related Observation
Period (and based upon the related Daily VWAP prices during such

 80
 

 

 

Observation Period). If such increased amount of cash and shares, if
any, results in an increase to the amount of cash to be paid to Holders, the
Company will pay such increase in cash, and if such increased amount results in
an increase to the number of shares of Common Stock, the Company will deliver
such increase by delivering Reference Property based on such increased number
of shares.

(2)           If
the last day of the applicable Observation Period related to Securities
surrendered for conversion is on or following the third scheduled Trading Day
preceding the Effective Date of such Fundamental Change, the Company will
satisfy the Conversion Obligation with respect to each $1,000 principal amount
of Securities tendered for conversion as described in Section 12.1(b)
(based on the Conversion Rate as increased by the Additional Shares pursuant to
Section 12.1(e)) on the later to occur of (1) the Effective Date of
the Fundamental Change and (2) the third Trading Day immediately following
the last day of the applicable Observation Period.

(c)           Before
any Holder of a Security shall be entitled to convert the same as set forth
above, such holder shall (1) in the case of a Global Note, comply with the
procedures of the Depositary in effect at that time and, if required, pay funds
equal to interest payable on the next Interest Payment Date to which such Holder
is not entitled as set forth in subsection (i) of this Section and, if
required, pay all taxes or duties, if any, and (2) in the case of a
Security issued in certificated form, (A) complete and manually sign and
deliver an irrevocable written notice to the Conversion Agent in the form set
forth under Section 2.4 (or a facsimile thereof) (a “Notice of Conversion”) at the office of the Conversion Agent and
shall state in writing therein the principal amount of Securities to be
converted and the name or names (with addresses) in which such Holder wishes
the certificate or certificates for any shares of Common Stock, if any, to be
delivered upon settlement of the Conversion Obligation to be registered,
(B) surrender such Securities, duly endorsed to the Company or in blank
(and accompanied by appropriate endorsement and transfer documents), at the
office of the Conversion Agent, (C) if required, pay funds equal to
interest payable on the next Interest Payment Date to which such Holder is not
entitled as set forth in subsection (i) of this Section, and (D) if
required, pay all taxes or duties, if any. A Security shall be deemed to have
been converted immediately prior to the close of business on the date (the “Conversion Date”) that the Holder has
complied with the requirements set forth in this subsection (c).

No Notice of Conversion with respect to any Securities
may be tendered by a Holder thereof if such Holder has also tendered a
Designated Event Repurchase Notice and not validly withdrawn such Designated Event
Repurchase Notice in accordance with the applicable provisions of
Section 14.1.

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

(d)           Delivery
of the amounts owing in satisfaction of the Conversion Obligation shall be made
by the Company in no event later than the date specified in subsection (a) of
this Section, except to the extent specified in subsection (b) of this Section.
The Company shall make such delivery by paying the cash amount owed to the
Conversion Agent or to the Holder of the Security

 81
 

 

 

surrendered for conversion, or such Holder’s nominee or nominees, and
by issuing, or causing to be issued, and delivering to such Holder, or such
Holder’s nominee or nominees, certificates or a book-entry transfer through the
Depositary for the number of full shares of Common Stock, if any, to which such
holder shall be entitled as part of such Conversion Obligation (together with
any cash in lieu of fractional shares).

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

(f)            If
a Holder submits a Security for conversion, the Company shall pay all stamp and
other duties, if any, which may be imposed by the United States or any
political subdivision thereof or taxing authority thereof or therein with
respect to the issuance of shares of Common Stock, if any, upon the conversion.
However, the Holder shall pay any such tax which is due because the Holder
requests any shares of Common Stock to be issued in a name other than the
Holder’s name. The Conversion Agent may refuse to deliver the certificates
representing the shares of Common Stock being issued in a name other than the
Holder’s name until the Trustee receives a sum sufficient to pay any tax which
will be due because the shares are to be issued in a name other than the Holder’s
name. Nothing herein shall preclude any tax withholding required by law or
regulations.

(g)           Except
as provided in Section 12.4, no adjustment shall be made for dividends on
any shares issued upon the conversion of any Security as provided in this
Article.

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

(i)            Upon
conversion, a Holder will not receive any separate cash payment for accrued and
unpaid interest except as set forth below. The Company’s settlement of the
Conversion Obligations as described above shall be deemed to satisfy its
obligation to pay the principal amount of the Security and accrued and unpaid
interest to, but not including, the Conversion Date. As a result, accrued and
unpaid interest to, but not including, the Conversion Date shall be deemed to
be paid in full rather than cancelled, extinguished or forfeited.
Notwithstanding the preceding sentence, if Securities are converted after the
close of business on a record date, Holders of such Securities as of the close
of business on the record date will receive the interest payable on such
Securities on the corresponding Interest Payment Date notwithstanding the
conversion. Securities surrendered for conversion during the period from the
close of business on any Regular Record Date to the opening of business on the
corresponding Interest Payment Date must be accompanied by payment of an amount
equal to the interest payable on the Securities so converted; provided, however, that no such payment
need be made (i) if the Company has specified a Designated Event Purchase
Date that is after a Record Date and on or prior to the corresponding Interest
Payment Date; (ii) to the extent of any overdue interest existing at the
time of conversion with respect to such Security; or (iii) in respect of any
conversion that occurs during the period from the close of business on the Regular

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Record Date immediately preceding Stated Maturity to Stated Maturity.
Except as described above, no payment or adjustment will be made for accrued
interest on converted Securities.

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

(k)           All
shares of Common Stock delivered upon such conversion of Restricted Securities
shall bear restrictive legends substantially in the form of the legends
required to be set forth on the Restricted Securities pursuant to Section 3.5
and shall be subject to the restrictions on transfer provided in such legends.
Neither the Trustee nor any agent maintained for the purpose of such conversion
shall have any responsibility for the inclusion or content of any such
restrictive legends on such Common Stock; provided,
however, that the Trustee or any
agent maintained for the purpose of such conversion shall have provided, to the
Company or to the Company’s transfer agent for such Common Stock, prior to or
concurrently with a request to the Company to deliver such Common Stock,
written notice that the Securities delivered for conversion are Restricted
Securities.

Section 12.3                                                        Fractions
of Shares.

No fractional shares of
Common Stock shall be issued upon conversion of any Security or Securities. If more
than one Security shall be surrendered for conversion at one time by the same
Holder, the number of full shares which shall be issuable upon conversion
thereof shall be computed on the basis of the aggregate principal amount of the
Securities (or specified portions thereof) so surrendered. Instead of any
fractional share of Common Stock that would otherwise be issuable upon
conversion of any Security or Securities (or specified portions thereof), the
Company shall calculate and pay a cash adjustment in respect of such fraction
(calculated to the nearest 1/100th of a share) in an amount equal to the same
fraction of the Closing Price Per Share at the close of business on the day of
conversion.

Section 12.4                                                        Adjustment
of Conversion Rate.

The
Conversion Rate shall be adjusted from time to time by the Company as follows:

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(a)           In case the Company shall issue shares of Common Stock as
a dividend or distribution to holders of all or substantially all of the
outstanding Common Stock, or shall effect a subdivision into a greater number
of shares of Common Stock or combination into a lesser number of shares of
Common Stock, the Conversion Rate shall be adjusted based on the following
formula:

where,

CR0 = the Conversion Rate in effect immediately
prior to the Ex-Dividend Date for such event;

CR¢ = the
Conversion Rate in effect immediately after the Ex-Dividend Date for such
event;

OS0 = the number of shares of Common Stock
outstanding immediately prior to the Ex-Dividend Date for such event; and

OS¢ = the number of
shares of Common Stock outstanding immediately after the Ex-Dividend Date for
such event.

Such adjustment shall become effective immediately after 9:00 a.m., New
York City time, on the Business Day following the Stockholder Record Date fixed
for such determination. If any dividend or distribution of the type described
in this Section 12.4(a) is declared but not so paid or made, or the
outstanding shares of Common Stock are not subdivided or combined, as the case
may be, the Conversion Rate shall be immediately readjusted, effective as of
the date the Board of Directors determines not to pay such dividend or
distribution, or subdivide or combine the outstanding shares of Common Stock,
as the case may be, to the Conversion Rate that would then be in effect if such
dividend, distribution, subdivision or combination had not been declared.

(b)           In case the Company shall issue to all or substantially
all holders of its outstanding shares of Common Stock rights or warrants
entitling them (for a period expiring within sixty (60) calendar days after the
issuance thereof) to subscribe for or purchase shares of Common Stock at a
price per share less than the Last Reported Sale Price of the Common Stock on
the Business Day immediately preceding the date of announcement of such
issuance, the Conversion Rate shall be adjusted based on the following formula:

where,

CR0 = the Conversion Rate in effect immediately
prior to the Ex-Dividend Date for such event;

CR¢ = the
Conversion Rate in effect immediately after the Ex-Dividend Date for such
event;

OS0 = the number of shares of Common Stock
outstanding immediately prior to the Ex-Dividend Date” for such event;

X
= the total number of shares of Common Stock issuable pursuant to such rights;
and

 84
 

 

 

Y
= the number of shares of Common Stock equal to the aggregate price payable to
exercise such rights, warrants or convertible securities divided by the average
of the Last Reported Sale Prices of Common Stock over the 10 consecutive
Trading Day period ending on the Business Day immediately preceding the
Ex-Dividend Date relating to such distribution for the issuance of such rights
or warrants.

Such adjustment shall be successively made whenever any such rights,
warrants or convertible securities are issued and shall become effective immediately
after 9:00 a.m., New York City time, on the Business Day following the date
fixed for such determination. If such rights, warrants or convertible
securities are not so issued, the Conversion Rate shall again be adjusted to be
the Conversion Rate that would then be in effect if such Stockholder Record
Date for such distribution had not been fixed. To the extent that shares of
Common Stock are not delivered after the expiration of such rights, warrants or
convertible securities, the Conversion Rate shall be readjusted to the
Conversion Rate that would then be in effect had the adjustments made upon the
issuance of such rights or warrants been made on the basis of delivery of only
the number of shares of Common Stock actually delivered.

In determining whether any rights, warrants or convertible securities
entitle the holders to subscribe for or purchase shares of Common Stock at less
than such Last Reported Sale Price, and in determining the aggregate offering
price of such shares of Common Stock, there shall be taken into account any
consideration received by the Company for such rights or warrants and any
amount payable on exercise or conversion thereof, the value of such
consideration, if other than cash, to be determined by the Board of Directors.

(c)           In case the Company shall, by dividend or otherwise,
distribute to all or substantially all holders of its Common Stock shares of
any class of Capital Stock of the Company (other than Common Stock as covered
by subsection (a) of this Section), evidences of its Indebtedness or other
assets or property of the Company (including securities, but excluding
dividends and distributions covered by subsection (b) or (d) of this Section
and distributions described below in this subsection (c) with respect to
Spin-Offs) (any of such shares of Capital Stock, Indebtedness, or other asset
or property hereinafter in this subsection (c) called the “Distributed Property”), then, in each
such case the Conversion Rate shall be adjusted based on the following formula:

where,

CR0 = the Conversion Rate in effect
immediately prior to the Ex-Dividend Date for such distribution;

CR¢ = the Conversion Rate in effect immediately
after the Ex-Dividend Date for such distribution;

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SP0 = the average of the Last
Reported Sale Prices of Common Stock over the 10 consecutive Trading Day period
ending on the Business Day immediately preceding the Ex-Dividend Date relating
to such distribution; and

FMV = the fair market value
as determined by the Board of Directors of the shares of capital stock,
evidences of indebtedness, assets or property distributed with respect to each
outstanding share of Common Stock on the Ex-Dividend Date relating to such
distribution.

Such adjustment shall
become effective immediately prior to 4:00 a.m., New York City time, on the
Business Day following the date fixed for the determination of stockholders
entitled to receive such distribution; provided
that if the then fair market value (as so determined) of the portion
of the Distributed Property so distributed applicable to one share of Common
Stock is equal to or greater than SP0 as
set forth above, in lieu of the foregoing adjustment, adequate provision shall
be made so that each Holder shall have the right to receive, for each $1,000
principal amount of Securities upon conversion, the amount of Distributed
Property such Holder would have received had such Holder owned a number of
shares of Common Stock equal to the Conversion Rate on the Stockholder Record
Date. If such dividend or distribution is not so paid or made, the Conversion
Rate shall again be adjusted to be the Conversion Rate that would then be in
effect if such dividend or distribution had not been declared. If the Board of
Directors determines the fair market value of any distribution for purposes of
this subsection (c) by reference to the actual or when issued trading market
for any securities, it must in doing so consider the prices in such market over
the same period used in determining SP0 above.

 

With respect to an
adjustment pursuant to this subsection (c) where there has been a payment of a
dividend or other distribution on the Common Stock or shares of Capital Stock
of any class or series, or similar equity interest, of or relating to a
Subsidiary or other business unit (a “Spin-Off”),
the Conversion Rate in effect immediately before 5:00 p.m., New York City time,
on the Stockholder Record Date fixed for determination of stockholders entitled
to receive the distribution will be increased based on the following formula:

Where,

CR0 = the Conversion Rate in effect
immediately prior to such distribution;

CR¢ = the Conversion Rate in effect immediately
after such distribution;

FMV0 = the average of the Last
Reported Sale Prices of the capital stock or similar equity interest
distributed to holders of Common Stock applicable to one share of Common Stock
over the first 10 consecutive Trading Day period after the effective date of
the spin-off; and

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MP0 = the average of the last
reported sale prices of our common stock over the first ten consecutive trading-day
period after the effective date of the Spin-Off.

Such adjustment shall occur on the tenth Trading Day
from, and including, the effective date of the Spin-Off; provided that in respect of any conversion
within the ten Trading Days following any Spin-Off, references within this
subsection (c) to 10 days shall be deemed replaced with such lesser number
of trading days as have elapsed between such Spin-Off and the conversion date
in determining the applicable Conversion Rate.

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

For purposes of this subsection (c), and subsections
(a) and (b) of this Section, any dividend or distribution to which this
subsection (c) is applicable that also includes shares of Common Stock to which
subsection (a) of this Section applies or rights or warrants to subscribe for
or purchase shares of Common Stock to which subsection (a) or (b) of this
Section applies (or both), shall be deemed instead to be (1) a dividend or
distribution of the evidences of Indebtedness, assets or shares of capital
stock other than such shares of Common Stock or rights or warrants to which
this subsection (c) applies (and any Conversion Rate adjustment required by
this subsection (c) with respect to such dividend or distribution shall then be
made) immediately followed by (2) a dividend or distribution of such
shares of Common Stock or such rights or warrants (and any further

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Conversion Rate adjustment required by subsections (a) and (b) of this
Section with respect to such dividend or distribution shall then be made),
except (A) the record date of such dividend or distribution shall be
substituted as “the Stockholder Record Date” and “the date fixed for such
determination” within the meaning of subsections (a) and (b) of this Section
and (B) any shares of Common Stock included in such dividend or
distribution shall not be deemed “outstanding immediately prior to such event”
within the meaning of subsection (a) of this Section.

(d)           In case the Company shall pay a dividend or make a
distribution consisting exclusively of cash to all or substantially all holders
of its Common Stock, the Conversion Rate shall be adjusted based on the
following formula:

where,

CR0 = the Conversion Rate in effect
immediately prior to the Ex-Dividend Date for such distribution;

CR¢ = the Conversion Rate in effect immediately
after the Ex-Dividend Date for such distribution;

SP0 = the Last Reported Sale Price
of Common Stock on the Trading Day immediately preceding the Ex-Dividend Date
relating to such distribution; and

C = the amount in cash per
share we distribute to holders of Common Stock.

Such adjustment shall become effective immediately
after 5:00 p.m., New York City time, on the Stockholder Record Date for such
dividend or distribution; provided that
if the portion of the cash so distributed applicable to one share of Common
Stock is equal to or greater than SP0 as
above, in lieu of the foregoing adjustment, adequate provision shall be made so
that each Holder shall have the right to receive upon conversion of a Security
(or any portion thereof) the amount of cash such Holder would have received had
such Holder owned a number of shares equal to the Conversion Rate on the
Stockholder Record Date. If such dividend or distribution is not so paid or
made, the Conversion Rate shall again be adjusted to be the Conversion Rate
that would then be in effect if such dividend or distribution had not been
declared.

For the avoidance of doubt, for purposes of this
subsection (d), in the event of any reclassification of the Common Stock, as a
result of which the Securities become convertible into more than one class of
Common Stock, if an adjustment to the Conversion Rate is required pursuant to
this subsection (d), references in this Section to one share of Common Stock or
Last Reported Sale Price of one share of Common Stock shall be deemed to refer
to a unit or to the price of a unit consisting of the number of shares of each
class of Common Stock into which the Securities are then convertible equal to
the numbers of shares of such class issued in respect of one share of Common

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Stock in such reclassification. The above provisions of this paragraph
shall similarly apply to successive reclassifications.

(e)           In case the Company or any of its Subsidiaries makes a
payment in respect of a tender offer or exchange offer for all or any portion
of the Common Stock, to the extent that the cash and value of any other
consideration included in the payment per share of Common Stock exceeds the
Last Reported Sale Price of the Common Stock on the Trading Day next succeeding
the last date on which tenders or exchanges may be made pursuant to such tender
or exchange offer (as it may be amended), the Conversion Rate shall be
increased based on the following formula:

where,

CR0 = the Conversion Rate in effect
on the date such tender or exchange offer expires;

CR¢ = the Conversion Rate in effect on the day
next succeeding the date such tender or exchange offer expires;

AC = the aggregate value of
all cash and any other consideration as determined by the Board of Directors
paid or payable for shares purchased in such tender or exchange offer;

OS0 = the number of shares of Common
Stock outstanding immediately prior to the date such tender or exchange offer
expires;

OS¢ = the number of shares of Common Stock
outstanding immediately after the date such tender or exchange offer expires;
and

SP¢ = the average of the Last Reported Sale
Prices of Common Stock on the Trading Day next succeeding the date such tender
or exchange offer expires.

Such adjustment to become
effective immediately prior to the opening of business on the day following the
last date on which tenders or exchanges may be made pursuant to such tender or
exchange offer. If the Company is obligated to purchase shares pursuant to any
such tender or exchange offer, but the Company is permanently prevented by
applicable law from effecting all or any such purchases or all or any portion
of such purchases are rescinded, the Conversion Rate shall again be adjusted to
be the Conversion Rate that would then be in effect if such tender or exchange
offer had not been made or had only been made in respect of the purchases that
had been effected. No adjustment to the Conversion Rate will be made if the
application of the foregoing formulae would result in a decrease in the
Conversion Rate.

For purposes of this Section the term “Stockholder Record Date” shall mean, with respect
to any dividend, distribution or other transaction or event in which the
holders of Common Stock have the right to receive any cash, securities or other
property or in which the Common Stock (or other 

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applicable security) is exchanged for or converted into any combination
of cash, securities or other property, the date fixed for determination of
stockholders entitled to receive such cash, securities or other property
(whether such date is fixed by the Board of Directors or by statute, contract
or otherwise).

(g)           In
addition to those required by subsections (a), (b), (c), (d) and (e) of
this Section, and to the extent permitted by applicable law, the Company from
time to time may increase the Conversion Rate by any amount for a period of at
least 20 calendar days if the Board of Directors determines that such increase
would be in the Company’s best interest. In addition, the Company may also (but
is not required to) increase the Conversion Rate to avoid or diminish any
income tax to holders of Common Stock or rights to purchase Common Stock in
connection with any dividend or distribution of shares (or rights to acquire
shares) or similar event. Whenever the Conversion Rate is increased pursuant to
the preceding sentence, the Company shall mail to the Holder of each Security
at his last address appearing on the Security Register provided for in
Section 1.6 a notice of the increase at least 15 days prior to the date
the increased Conversion Rate takes effect, and such notice shall state the
increased Conversion Rate and the period during which it will be in effect.

(h)           All
calculations and other determinations under this Article shall be made by the
Company and shall be made to the nearest cent or to the nearest one-ten
thousandth (1/10,000) of a share, as the case may be. No adjustment shall be
made for the Company’s issuance of Common Stock or convertible or exchangeable
securities or rights to purchase Common Stock or convertible or exchangeable
securities, other than as provided in this Section. No adjustment shall be made
to the Conversion Rate unless such adjustment would require a change of at
least 1% in the Conversion Rate then in effect at such time. The Company shall
carry forward any adjustments that are less than 1% of the Conversion Rate and
make such carried forward adjustments, regardless of whether the aggregate
adjustment is less than 1% within one year of the first such adjustment carried
forward, upon a Fundamental Change, or upon maturity.

(i)            In
any case in which this Section provides that an adjustment shall become
effective immediately after (1) a record date or Record Date for an event,
(2) the date fixed for the determination of stockholders entitled to
receive a dividend or distribution pursuant to subsection (a) of this Section,
(3) a date fixed for the determination of stockholders entitled to receive
rights or warrants pursuant to subsection (b) of this Section, or (4) the
last date on which tenders or exchanges may be made pursuant to any tender or
exchange offer pursuant to subsection (e) of this Section (each an “Adjustment Determination Date”), the
Company may elect to defer until the occurrence of the applicable Adjustment
Event (as hereinafter defined) (x) issuing to the Holder of any Security
converted after such Adjustment Determination Date and before the occurrence of
such Adjustment Event, the additional cash and, if applicable, shares of Common
Stock or other securities issuable upon such conversion by reason of the
adjustment required by such Adjustment Event over and above the amounts
deliverable upon such conversion before giving effect to such adjustment and
(y) paying to such Holder any amount in cash in lieu of any fraction
pursuant to Section 12.3. For purposes of this subsection (i), the term “Adjustment Event” shall mean:

(i)            in any case
referred to in clause (1) hereof, the occurrence of such event,

(ii)           in any case
referred to in clause (2) hereof, the date any such dividend or
distribution is paid or made,

 

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(iii)          in any case
referred to in clause (3) hereof, the date of expiration of such rights or
warrants, and

(iv)          in any case referred
to in clause (4) hereof, the date a sale or exchange of Common Stock
pursuant to such tender or exchange offer is consummated and becomes
irrevocable.

(j)            For
purposes of this Section, the number of shares of Common Stock at any time
outstanding shall not include shares held in the treasury of the Company but
shall include shares issuable in respect of scrip certificates issued in lieu
of fractions of shares of Common Stock.

(k)           For the avoidance of doubt, if a holder converts
Securities prior to the effective date of a Fundamental Change, and the
Fundamental Change does not occur, the Holder will not be entitled to an
increased Conversion Rate in connection with such conversion.

Section 12.5           Notice
of Adjustments of Conversion Rate.

Whenever the Conversion Rate
is adjusted as herein provided:

(1)         the Company shall compute the adjusted Conversion Rate in
accordance with Section 12.4 and shall prepare a certificate signed by the
Chief Financial Officer of the Company setting forth the adjusted Conversion
Rate and showing in reasonable detail the facts upon which such adjustment is
based, and such certificate shall promptly be filed with the Trustee and with
each Conversion Agent; and

(2)         upon each such adjustment, a notice stating that the
Conversion Rate has been adjusted and setting forth the adjusted Conversion
Rate shall be required, and as soon as practicable after it is required, such
notice shall be provided by the Company to all Holders in accordance with
Section 1.6

Neither the Trustee nor any
Conversion Agent shall be under any duty or responsibility with respect to any
such certificate or the information and calculations contained therein, except
to exhibit the same to any Holder of Securities desiring inspection thereof at
its office during normal business hours.

Section 12.6           Notice of Certain Corporate Action.

In case:

(a)           the Company shall
declare a dividend (or any other distribution) on its Common Stock that would
require an adjustment in the Conversion Rate pursuant to Section 12.4; or

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

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

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

the Company shall cause to be filed with the Trustee and to be mailed to each
Holder at his address appearing on the Security Register, provided for in
Section 1.6, as promptly as possible but in any event at least 20 days
prior to the applicable date specified in clause (x) or (y) below, as
the case may be, a notice stating (x) the date on which a record is to be
taken for the purpose of such dividend, distribution or rights or warrants, or,
if a record is not to be taken, the date as of which the holders of Common
Stock of record to be entitled to such dividend, distribution or rights are to
be determined, or (y) the date on which such reclassification,
consolidation, merger, sale, transfer, dissolution, liquidation or winding-up
is expected to become effective or occur, and the date as of which it is
expected that holders of Common Stock of record shall be entitled to exchange
their Common Stock for securities or other property deliverable upon such
reclassification, consolidation, merger, sale, transfer, dissolution,
liquidation or winding-up. Failure to give such notice, or any defect therein,
shall not affect the legality or validity of such dividend, distribution,
reclassification, consolidation, merger, sale, transfer, dissolution,
liquidation or winding-up.

Section 12.7           Company
to Reserve Common Stock.

The Company shall at all
times reserve and keep available, free from preemptive rights, out of its
authorized but unissued Common Stock, for the purpose of effecting the
conversion of Securities, the full number of shares of Common Stock then
issuable upon the conversion of all Outstanding Securities.

Section 12.8           Taxes
on Conversions.

Except as provided in the
next sentence, the Company will pay any and all taxes and duties that may be
payable in respect of the issue or delivery of shares of Common Stock on
conversion of Securities pursuant hereto. The Company shall not, however, be
required to pay any tax or duty that may be payable in respect of
(i) income of the Holder, or (ii) any transfer involved in the issue
and delivery of shares of Common Stock in a name other than that of the Holder
of the Security or Securities to be converted, and no such issue or delivery
shall be made unless and until the Person requesting such issue has paid to the
Company the amount of any such tax or duty, or has established to the
satisfaction of the Company that such tax or duty has been paid.

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Section 12.9                                                        Certain
Covenants.

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

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

(b)        The
Company covenants that, if any shares of Common Stock to be provided for the
purpose of conversion of Securities hereunder require registration with or
approval of any governmental authority under any federal or state law before
such shares may be validly issued upon conversion, the Company will in good
faith and as expeditiously as possible, to the extent then permitted by the
rules and interpretations of the SEC (or any successor thereto), endeavor to
secure such registration or approval, as the case may be.

(c)         The Company further covenants that if
at any time the Common Stock shall be listed on any other national securities
exchange or automated quotation system the Company will, if permitted and
required by the rules of such exchange or automated quotation system, list and
keep listed, so long as the Common Stock shall be so listed on such exchange or
automated quotation system, all Common Stock issuable upon conversion of the
Securities.

Section 12.10         Cancellation
of Converted Securities.

All Securities delivered for
conversion shall be delivered to the Trustee or its agent to be canceled by or
at the direction of the Trustee, which shall dispose of the same as provided in
Section 3.9.

Section 12.11         Provision
in Case of Effect of Reclassification, Consolidation, Merger or Sale.

If any of the following events occur, namely
(i) any reclassification or change of the outstanding shares of Common
Stock (other than a change in par value, or from par value to no par value, or
from no par value to par value, or as a result of a split, subdivision or
combination), (ii) any consolidation, merger or combination of the Company
with another Person, or (iii) any sale or conveyance of all or
substantially all of the property and assets of the Company to any other
Person, in either case as a result of which holders of Common Stock shall be
entitled to receive cash, securities or other property or assets with respect
to or in exchange for such Common Stock (any such event a “Merger Event”), then:

(a)           the
Company or the successor or purchasing Person, as the case may be, shall
execute with the Trustee a supplemental indenture (which shall comply with the
Trust Indenture Act as in force at the date of execution of such supplemental
indenture if such supplemental indenture is then required to so comply)
permitted under Section 8.1(7) providing for the conversion and settlement
of the Securities as set forth in this Indenture. Such supplemental indenture
shall provide for 

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adjustments which shall be as nearly equivalent as may be practicable
to the adjustments provided for in this Article and the Trustee may
conclusively rely on the determination by the Company of the equivalency of
such adjustments. If, in the case of any Merger Event, the Reference Property
includes shares of stock or other securities and assets of a corporation other
than the successor or purchasing corporation, as the case may be, in such
reclassification, change, consolidation, merger, combination, sale or
conveyance, then such supplemental indenture shall also be executed by such
other corporation and shall contain such additional provisions to protect the
interests of the Holders of the Securities as the Board of Directors shall
reasonably consider necessary by reason of the foregoing, including to the
extent required by the Board of Directors and practicable the provisions
providing for the repurchase rights set forth in Article XIV.

In the event the
Company shall execute a supplemental indenture pursuant to this Section, the
Company shall promptly file with the Trustee an Officers’ Certificate briefly
stating the reasons therefore, the kind or amount of cash, securities or
property or asset that will constitute the Reference Property after any such
Merger Event, any adjustment to be made with respect thereto and that all
conditions precedent have been complied with, and shall promptly mail notice
thereof to all Holders.

(b)           Notwithstanding
the provisions of Section 12.2(a) and Section 12.2(b), and subject to
the provisions of Section 12.1, at the effective time of such Merger
Event, the right to convert each $1,000 principal amount of Securities will be
changed to a right to convert such Security by reference to the kind and amount
of cash, securities or other property or assets that a holder of a number of
shares of Common Stock equal to the Conversion Rate immediately prior to such
transaction would have owned or been entitled to receive (the “Reference Property”) such that from
and after the effective time of such transaction, a Holder will be entitled
thereafter to convert its Securities into cash and the same type (and in the
same proportion) of Reference Property, based on the Daily Settlement Amounts
of Reference Property in an amount equal to the applicable Conversion Rate, as
described under Section 12.2(b). For purposes of determining the
constitution of Reference Property, the type and amount of consideration that a
holder of Common Stock would have been entitled to in the case of
reclassifications, consolidations, mergers, sales or conveyance of assets or
other transactions that cause the Common Stock to be converted into the right
to receive more than a single type of consideration (determined based in part
upon any form of stockholder election) will be deemed to be the weighted
average of the types and amounts of consideration received by the holders of
Common Stock that affirmatively make such an election. The Company shall not
become a party to any such transaction unless its terms are consistent with the
preceding. None of the foregoing provisions shall affect the right of a holder
of Securities to convert its Securities in accordance with the provisions of this
Article prior to the effective date.

(c)           The
Company shall cause notice of the execution of such supplemental indenture to
be mailed to each Holder, at his address appearing on the Security Register
provided for in this Indenture, within 20 days after execution
thereof.  Failure to deliver such notice
shall not affect the legality or validity of such supplemental indenture.

(d)           The
above provisions of this Section shall similarly apply to successive Merger
Events.

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Section 12.12         Responsibility
of Trustee for Conversion Provisions.

The Trustee, subject to the
provisions of Section 6.1, and any Conversion Agent shall not at any time
be under any duty or responsibility to any Holder of Securities to determine
whether any facts exist which may require any adjustment of the Conversion
Rate, or with respect to the nature or extent of any such adjustment when made,
or with respect to the method employed, herein or in any supplemental indenture
provided to be employed, in making the same, or whether a supplemental
indenture need be entered into. Neither the Trustee, subject to the provisions
of Section 6.1, nor any Conversion Agent shall be accountable with respect
to the validity or value (or the kind or amount) of any Common Stock, or of any
other securities or property or cash, which may at any time be issued or
delivered upon the conversion of any Security; and it or they do not make any
representation with respect thereto. Neither the Trustee, subject to the
provisions of Section 6.1, nor any Conversion Agent shall be responsible
for any failure of the Company to make or calculate any cash payment or to
issue, transfer or deliver any shares of Common Stock or share certificates or
other securities or property or cash upon the surrender of any Security for the
purpose of conversion; and the Trustee, subject to the provisions of
Section 6.1, and any Conversion Agent shall not be responsible for any
failure of the Company to comply with any of the covenants of the Company
contained in this Article.

ARTICLE
XIII
DEFEASANCE

Section 13.1                                                        Company’s
Option to Effect Defeasance.

The Company may elect, at its option at any time, to
have Section 13.2 applied to any Securities upon compliance with the
conditions set forth below in this Article. Any such election shall be evidenced
by a Board Resolution.

Section 13.2                                                        Defeasance
and Discharge.

Upon the Company’s exercise of its option (if any) to
have this Section applied to any Securities, the Company shall be deemed to
have been discharged from its obligations with respect to such Securities as
provided in this Section on and after the date the conditions set forth in
Section 13.3 are satisfied (hereinafter called “Defeasance”). For this
purpose, such Defeasance means that the Company shall be deemed to have paid
and discharged the entire indebtedness represented by such Securities and to
have satisfied all its other obligations under such Securities and this
Indenture insofar as such Securities are concerned (and the Trustee, at the
expense of the Company, shall execute proper instruments acknowledging the
same), subject to the following which shall survive until otherwise terminated
or discharged hereunder: (1) the rights of Holders of such Securities to
receive, solely from the trust fund described in Section 13.3 and as more
fully set forth in such Section, payments in respect of the principal of and
interest on such Securities when payments are due, (2) the Company’s
obligations with respect to such Securities under Section 3.4,
Section 3.5, Section 3.6, Section 10.2, Section 10.3 and
Article XII, (3) the rights, powers, trusts, 

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duties and immunities of the Trustee hereunder and (4)
this Article. Subject to compliance with this Article, the Company may exercise
its option (if any) to have this Section applied to any Securities.

Section 13.3                                                        Conditions
to Defeasance.

The following shall be the conditions to the
application of Section 13.2 to any Securities:

(1)         The Company shall irrevocably have
deposited or caused to be deposited with the Trustee (or another trustee which
satisfies the requirements contemplated by Section 6.8 and agrees to
comply with the provisions of this Article applicable to it) as trust funds in
trust for the purpose of making the following payments, specifically pledged as
security for, and dedicated solely to, the benefits of the Holders of such
Securities, (A) money in an amount, or (B) U.S. Government Obligations which
through the scheduled payment of principal and interest in respect thereof in
accordance with their terms will provide, not later than one day before the due
date of any payment, money in an amount, or (C) a combination thereof, in each
case sufficient, in the opinion of a nationally recognized firm of independent
public accountants expressed in a written certification thereof delivered to
the Trustee, to pay and discharge, and which shall be applied by the Trustee
(or any such other qualifying trustee) to pay and discharge, the principal of
and interest (including any Special Interest) on such Securities on the
respective Stated Maturities, in accordance with the terms of this Indenture
and such Securities. As used herein, “U.S. Government Obligation” means (x) any
security which is (i) a direct obligation of the United States of America for
the payment of which the full faith and credit of the United States of America
is pledged or (ii) an obligation of a Person controlled or supervised by and
acting as an agency or instrumentality of the United States of America the
payment of which is unconditionally guaranteed as a full faith and credit
obligation by the United States of America, which, in either case (i) or (ii),
is not callable or redeemable at the option of the issuer thereof, and (y) any
depositary receipt issued by a bank (as defined in Section 3(a)(2) of the
Securities Act) as custodian with respect to any U.S. Government Obligation
which is specified in Clause (x) above and held by such bank for the account of
the holder of such depositary receipt, or with respect to any specific payment
of principal of or interest on any U.S. Government Obligation which is so
specified and held, provided that (except as required by law) such custodian is
not authorized to make any deduction from the amount payable to the holder of
such depositary receipt from any amount received by the custodian in respect of
the U.S. Government Obligation or the specific payment of principal or interest
evidenced by such depositary receipt.

(2)         In the event of an election to have
Section 13.2 apply to any Securities, the Company shall have delivered to
the Trustee an Opinion of Counsel stating that (A) the Company has received
from, or there has been published by, the Internal Revenue Service a ruling or
(B) since the date of this instrument, there has been a change in the
applicable Federal income tax law, in either case (A) or (B) to the effect
that, and based thereon such opinion shall confirm that, the Holders of such
Securities will not recognize gain or loss for Federal income tax purposes as a
result of the deposit, Defeasance and discharge to be effected with respect to
such Securities and will be subject to Federal income tax on the same amount,
in the same manner and at the same times as would be the case if such deposit,
Defeasance and discharge were not to occur.

 96
 

 

 

(3)         The Company shall have delivered to the
Trustee an Officers’ Certificate to the effect that such Securities, if then
listed on any securities exchange, will be delisted as a result of such
deposit.

(4)         No event which is, or after notice or
lapse of time or both would become, an Event of Default with respect to such
Securities or any other Securities shall have occurred and be continuing at the
time of such deposit or, with regard to any such event specified in
Section 5.1(7) and (8), at any time on or prior to the 90th day after the
date of such deposit (it being understood that this condition shall not be
deemed satisfied until after such 90th day).

(5)         Such Defeasance shall not cause the
Trustee to have a conflicting interest within the meaning of the Trust
Indenture Act (assuming all Securities are in default within the meaning of
such Act).

(6)         Such Defeasance shall not result in a
breach or violation of, or constitute a default under, any other agreement or
instrument to which the Company is a party or by which it is bound.

(7)         Such Defeasance shall not result in the
trust arising from such deposit constituting an investment company within the
meaning of the Investment Company Act unless such trust shall be registered
under the Investment Company Act or exempt from registration thereunder.

(8)         The Company shall have delivered to the
Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that
all conditions precedent with respect to such Defeasance have been complied
with.

Section 13.4                                                        Deposited
Money and U.S. Government Obligations to Be Held in Trust; Miscellaneous
Provisions.

Subject to the provisions of the last paragraph of
Section 10.3, all money and U.S. Government Obligations (including the
proceeds thereof) deposited with the Trustee or other qualifying trustee (solely
for purposes of this Section and Section 13.5, the Trustee and any such
other trustee are referred to collectively as the “Trustee”) pursuant to
Section 13.3 in respect of any Securities shall be held in trust and
applied by the Trustee, in accordance with the provisions of such Securities
and this Indenture, to the payment, either directly or through any such Paying
Agent (including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Holders of such Securities, of all sums due and to become due
thereon in respect of principal and interest, but money so held in trust need
not be segregated from other funds except to the extent required by law.

The Company shall pay and indemnify the Trustee
against any tax, fee or other charge imposed on or assessed against the U.S.
Government Obligations deposited pursuant to Section 13.3 or the principal
and interest received in respect thereof other than any such tax, fee or other
charge which by law is for the account of the Holders of Outstanding
Securities.

 97
 

 

 

Anything in this Article to the contrary
notwithstanding, the Trustee shall deliver or pay to the Company from time to
time upon Company Request any money or U.S. Government Obligations held by it
as provided in Section 13.3 with respect to any Securities which, in the
opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, are in
excess of the amount thereof which would then be required to be deposited to
effect the Defeasance with respect to such Securities.

Section 13.5                                                        Reinstatement.

If the Trustee or the Paying Agent is unable to apply
any money in accordance with this Article with respect to any Securities by
reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, then the
obligations under this Indenture and such Securities from which the Company has
been discharged or released pursuant to Section 13.2 shall be revived and
reinstated as though no deposit had occurred pursuant to this Article with
respect to such Securities, until such time as the Trustee or Paying Agent is
permitted to apply all money held in trust pursuant to Section 13.4 with
respect to such Securities in accordance with this Article; provided, however,
that if the Company makes any payment of principal of or interest on any such
Security following such reinstatement of its obligations, the Company shall be
subrogated to the rights (if any) of the Holders of such Securities to receive
such payment from the money so held in trust.

ARTICLE XIV

REPURCHASE OF SECURITIES

Section 14.1                                                        Right
to Require Repurchase Upon a Designated Event.

(a)           If a Designated Event occurs at any time, then each Holder
shall have the right, at such Holder’s option, to require the Company to
repurchase all of such Holder’s Securities or any portion thereof that is a
multiple of $1,000 principal amount, for cash on the date (the “Designated Event Repurchase Date”)
specified by the Company that is not less than twenty (20) days and not
more than thirty five (35) calendar days after the date of the Designated
Event Company Notice (as defined below) at a repurchase price equal to 100% of
the principal amount thereof, together with accrued and unpaid interest thereon
to, but excluding, the Designated Event Repurchase Date (unless the Designated
Event Repurchase Date is between a regular Record Date and the corresponding
Interest Payment Date) (the “Designated Event Repurchase Price”).

Repurchases of Securities under this
Section shall be made, at the option of the Holder thereof, upon:

(i)            delivery to the
Trustee (or other Paying Agent appointed by the Company) by a Holder of a duly
completed notice (the “Designated Event
Repurchase Notice”) in the form set forth on the reverse of the Security
prior to the close of business on the third Business Day immediately preceding
the Designated Event Repurchase Date; and

 98
 

 

 

(ii)           delivery or
book-entry transfer of the Securities to the Trustee (or other Paying Agent
appointed by the Company) at any time after delivery of the Designated Event
Repurchase Notice (together with all necessary endorsements) at the Corporate
Trust Office of the Trustee (or other Paying Agent appointed by the Company) in
the Borough of Manhattan, such delivery being a condition to receipt by the
Holder of the Designated Event Repurchase Price therefor; provided that such Designated Event
Repurchase Price shall be so paid pursuant to this Section only if the Security
so delivered to the Trustee (or other Paying Agent appointed by the Company)
shall conform in all respects to the description thereof in the related
Designated Event Repurchase Notice.

The Designated Event Repurchase Notice shall state:

(A)          if certificated, the
certificate numbers of Securities to be delivered for repurchase;

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

(C)           that the Securities
are to be repurchased by the Company pursuant to the applicable provisions of
the Securities and the Indenture.

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

The Trustee (or other Paying Agent appointed by the
Company) shall promptly notify the Company of the receipt by it of any Designated
Event Repurchase Notice or written notice of withdrawal thereof in accordance
with the provisions of subsection (c) of this Section.

Any Security that is to be repurchased only in part
shall be surrendered to the Trustee (with, if the Company or the Trustee so
requires, due endorsement by, or a written instrument of transfer in form
satisfactory to the Company and the Trustee duly executed by the Holder thereof
or his attorney duly authorized in writing), and the Company shall execute, and
the Trustee shall authenticate and make available for delivery to the Holder of
such Security without service charge, a new Security or Securities, containing
identical terms and conditions, each in an authorized denomination in aggregate
principal amount equal to and in exchange for the unrepurchased portion of the
principal of the Security so surrendered.

(b)           On
or before the tenth day after the Effective Date of any Designated Event, the
Company shall provide to all Holders of record of the Securities and the Trustee
and Paying Agent a notice (the “Designated
Event Company Notice”) of the occurrence of such Designated Event and of
the repurchase right at the option of the Holders arising as a result thereof.
Such mailing shall be by first class mail. Simultaneously with providing such
Designated Event Company Notice, the Company shall publish a notice containing
the information included therein on the Company’s website or through such other
public medium as the Company may use at such time.

Each Designated Event Company Notice shall specify:

(i)            the events causing
the Designated Event and whether such Designated Event also constituted a
Fundamental Change;

 99
 

 

 

(ii)           the date of the
Designated Event;

(iii)          the Designated
Event Repurchase Date and the last date on which a Holder may exercise the
repurchase right;

(iv)          the Designated Event
Repurchase Price;

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

(vi)          the applicable
Conversion Rate and any adjustments to the applicable Conversion Rate;

(vii)         that the Securities
with respect to which a Designated Event Repurchase Notice has been delivered
by a Holder may be converted only if the Holder withdraws the Designated Event
Repurchase Notice in accordance with the terms of the Indenture;

(viii)        that the Holder must
exercise the repurchase right on or prior to the close of business on the third
Business Day immediately preceding the Designated Event Repurchase Date (the “Designated Event Expiration Time”);

(ix)           that the Holder
shall have the right to withdraw any Securities surrendered prior to the
Designated Event Expiration Time, and

(x)            the procedures that
Holders must follow to require the Company to repurchase their Securities.

No failure of the Company to give the foregoing
notices and no defect therein shall limit the Holders’ repurchase rights or
affect the validity of the proceedings for the repurchase of the Securities
pursuant to this Section.

(c)           A
Designated Event Repurchase Notice may be withdrawn by means of a written
notice of withdrawal delivered to the Paying Agent in accordance with the
Designated Event Company Notice at any time prior to the close of business on
the Business Day prior to the Designated Event Repurchase Date, specifying:

(i)            if certificated
Securities have been issued, the certificate numbers of the withdrawn
Securities,

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

(iii)          the principal
amount, if any, of such Security that remains subject to the original Designated
Event Repurchase Notice, which portion must be in principal amounts of $1,000
or an integral multiple of $1,000;

provided, however, that if the
Securities are not in certificated form, the notice must comply with
appropriate procedures of the Depositary.

(d)           On
or prior to 11:00 a.m. (New York City time) on the Business Day following
the Designated Event Repurchase Date, the Company will deposit with the Trustee
(or other Paying Agent appointed by the Company or if the Company is acting as
its own Paying Agent, set aside, segregate and hold in trust as provided in
Section 10.3) an amount of money sufficient to repurchase on the
Designated Event Repurchase Date all of the Securities to be repurchased on
such date at the 

 100
 

 

 

Designated Event Repurchase Price. Subject to receipt of funds and/or
Securities by the Trustee (or other Paying Agent appointed by the Company),
payment for Securities surrendered for repurchase (and not withdrawn) prior to
the Designated Event Expiration Time will be made promptly after the later of
(x) the Designated Event Repurchase Date with respect to such Security (provided the Holder has satisfied the
conditions to the payment of the Designated Event Repurchase Price in this
Section), and (y) the time of book-entry transfer or the delivery of such
Security to the Trustee (or other Paying Agent appointed by the Company) by the
Holder thereof in the manner required by this Section by mailing checks for the
amount payable to the Holders of such Securities entitled thereto as they shall
appear in the Security Register, provided,
however, that payments to the Depositary shall be made by wire
transfer of immediately available funds to the account of the Depositary or its
nominee. The Trustee shall, promptly after such payment and upon written demand
by the Company, return to the Company any funds in excess of the Designated
Event Repurchase Price.

(e)           If
the Trustee (or other Paying Agent appointed by the Company) holds money
sufficient to repurchase on the Designated Event Repurchase Date all the
Securities or portions thereof that are to be purchased as of the Business Day
following the Designated Event Repurchase Date, then on and after the
Designated Event Repurchase Date (i) such Securities will cease to be
outstanding, (ii) interest will cease to accrue on such Securities, and
(iii) all other rights of the Holders of such Securities will terminate,
whether or not book-entry transfer of the Securities has been made or the
Securities have been delivered to the Trustee or Paying Agent, other than the
right to receive the Designated Event Repurchase Price upon delivery of the
Securities.

 

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

 101
 

 

 

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

	
  

  	
  PRICELINE.COM INCORPORATED

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert J. Mylod, Jr.

  
	
   

  	
  Name:

  	
  Robert J. Mylod, Jr.

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AMERICAN STOCK
  TRANSFER & TRUST

  
	
   

  	
       COMPANY,

  
	
   

  	
  as Trustee

  
	
   

  	
  By:

  	
  /s/ Herbert J. Lemmer

  
	
   

  	
  Name:

  	
  Herbert J. Lemmer

  
	
   

  	
  Title:

  	
  Vice President

  
						

 

 102

 

 

SCHEDULE A

1.             The following table
sets forth the “Stock Price,” “Effective Date” and number of Additional Shares
by which the Conversion Rate for the 0.50% Convertible Senior Notes due 2011
will be increased in the event of a Fundamental Change:

	
   

  	
   

  	
  Stock Price

  	
   

  
	
  Effective Date

  	
   

  	
  $

  	
  33.65

  	
   

  	
  $

  	
  35.00

  	
   

  	
  $

  	
  40.00

  	
   

  	
  $

  	
  45.00

  	
   

  	
  $

  	
  50.00

  	
   

  	
  $

  	
  55.00

  	
   

  	
  $

  	
  60.00

  	
   

  	
  $

  	
  65.00

  	
   

  	
  $

  	
  70.00

  	
   

  	
  $

  	
  75.00

  	
   

  	
  $

  	
  100.00

  	
   

  
	
  September 27, 2006

  	
   

  	
  4.95

  	
   

  	
  4.49

  	
   

  	
  3.20

  	
   

  	
  2.33

  	
   

  	
  1.73

  	
   

  	
  1.30

  	
   

  	
  0.99

  	
   

  	
  0.75

  	
   

  	
  0.59

  	
   

  	
  0.45

  	
   

  	
  0.13

  	
   

  
	
  September 30, 2007

  	
   

  	
  4.95

  	
   

  	
  4.66

  	
   

  	
  3.25

  	
   

  	
  2.31

  	
   

  	
  1.68

  	
   

  	
  1.23

  	
   

  	
  0.91

  	
   

  	
  0.68

  	
   

  	
  0.51

  	
   

  	
  0.39

  	
   

  	
  0.09

  	
   

  
	
  September 30, 2008

  	
   

  	
  4.95

  	
   

  	
  4.70

  	
   

  	
  3.19

  	
   

  	
  2.19

  	
   

  	
  1.53

  	
   

  	
  1.08

  	
   

  	
  0.77

  	
   

  	
  0.56

  	
   

  	
  0.40

  	
   

  	
  0.29

  	
   

  	
  0.05

  	
   

  
	
  September 30, 2009

  	
   

  	
  4.95

  	
   

  	
  4.67

  	
   

  	
  2.98

  	
   

  	
  1.93

  	
   

  	
  1.26

  	
   

  	
  0.83

  	
   

  	
  0.56

  	
   

  	
  0.37

  	
   

  	
  0.25

  	
   

  	
  0.17

  	
   

  	
  0.02

  	
   

  
	
  September 30, 2010

  	
   

  	
  4.95

  	
   

  	
  4.41

  	
   

  	
  2.50

  	
   

  	
  1.40

  	
   

  	
  0.78

  	
   

  	
  0.43

  	
   

  	
  0.24

  	
   

  	
  0.13

  	
   

  	
  0.07

  	
   

  	
  0.04

  	
   

  	
  0.00

  	
   

  
	
  September 30,
  2011

  	
   

  	
  4.95

  	
   

  	
  3.81

  	
   

  	
  0.24

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  
																																			

 

2.             The following table
sets forth the “Stock Price,” “Effective Date” and number of Additional Shares
by which the Conversion Rate for the 0.75% Convertible Senior Notes due 2013
will be increased in the event of a Fundamental Change:

 

	
   

  	
   

  	
  Stock Price

  	
   

  
	
  Effective Date

  	
   

  	
  $

  	
  33.65

  	
   

  	
  $

  	
  35.00

  	
   

  	
  $

  	
  40.00

  	
   

  	
  $

  	
  45.00

  	
   

  	
  $

  	
  50.00

  	
   

  	
  $

  	
  55.00

  	
   

  	
  $

  	
  60.00

  	
   

  	
  $

  	
  65.00

  	
   

  	
  $

  	
  70.00

  	
   

  	
  $

  	
  75.00

  	
   

  	
  $

  	
  100.00

  	
   

  
	
  September 27, 2006

  	
   

  	
  4.95

  	
   

  	
  4.57

  	
   

  	
  3.40

  	
   

  	
  2.59

  	
   

  	
  2.02

  	
   

  	
  1.60

  	
   

  	
  1.27

  	
   

  	
  1.03

  	
   

  	
  0.83

  	
   

  	
  0.69

  	
   

  	
  0.27

  	
   

  
	
  September 30, 2007

  	
   

  	
  4.95

  	
   

  	
  4.72

  	
   

  	
  3.47

  	
   

  	
  2.61

  	
   

  	
  2.01

  	
   

  	
  1.57

  	
   

  	
  1.24

  	
   

  	
  0.99

  	
   

  	
  0.80

  	
   

  	
  0.65

  	
   

  	
  0.24

  	
   

  
	
  September 30, 2008

  	
   

  	
  4.95

  	
   

  	
  4.83

  	
   

  	
  3.49

  	
   

  	
  2.59

  	
   

  	
  1.96

  	
   

  	
  1.50

  	
   

  	
  1.17

  	
   

  	
  0.91

  	
   

  	
  0.73

  	
   

  	
  0.58

  	
   

  	
  0.21

  	
   

  
	
  September 30, 2009

  	
   

  	
  4.95

  	
   

  	
  4.90

  	
   

  	
  3.47

  	
   

  	
  2.51

  	
   

  	
  1.85

  	
   

  	
  1.39

  	
   

  	
  1.06

  	
   

  	
  0.81

  	
   

  	
  0.63

  	
   

  	
  0.49

  	
   

  	
  0.15

  	
   

  
	
  September 30, 2010

  	
   

  	
  4.95

  	
   

  	
  4.90

  	
   

  	
  3.37

  	
   

  	
  2.35

  	
   

  	
  1.67

  	
   

  	
  1.21

  	
   

  	
  0.89

  	
   

  	
  0.66

  	
   

  	
  0.50

  	
   

  	
  0.37

  	
   

  	
  0.10

  	
   

  
	
  September 30, 2011

  	
   

  	
  4.95

  	
   

  	
  4.83

  	
   

  	
  3.12

  	
   

  	
  2.06

  	
   

  	
  1.37

  	
   

  	
  0.93

  	
   

  	
  0.65

  	
   

  	
  0.45

  	
   

  	
  0.32

  	
   

  	
  0.23

  	
   

  	
  0.05

  	
   

  
	
  September 30, 2012

  	
   

  	
  4.95

  	
   

  	
  4.51

  	
   

  	
  2.59

  	
   

  	
  1.48

  	
   

  	
  0.85

  	
   

  	
  0.49

  	
   

  	
  0.29

  	
   

  	
  0.18

  	
   

  	
  0.11

  	
   

  	
  0.07

  	
   

  	
  0.01

  	
   

  
	
  September 30,
  2013

  	
   

  	
  4.95

  	
   

  	
  3.81

  	
   

  	
  0.24

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00Exhibit
10.2

Execution
Copy

priceline.com Incorporated

0.50%
Convertible Senior Notes due 2011

0.75% Convertible Senior Notes due 2013

Registration
Rights Agreement

September 27, 2006       

Goldman, Sachs & Co.,

As representative of the several Purchasers

    named in Schedule I to the Purchase Agreement

85 Broad Street

New York, New York 10004

Ladies and Gentlemen:

Priceline.com Incorporated, a Delaware
corporation (the “Company”), proposes to issue and sell to the Purchasers (as
defined herein) upon the terms set forth in the Purchase Agreement (as defined
herein) its 0.50% Convertible Senior Notes due 2011 (the “2011 Notes”) and its
0.75% Convertible Senior Notes due 2013 (the “2013 Notes” and, together with
the 2011 Notes, the “Securities”).  As an
inducement to the Purchasers to enter into the Purchase Agreement and in
satisfaction of a condition to the obligations of the Purchasers thereunder,
the Company agrees with the Purchasers for the benefit of Holders (as defined
herein) from time to time of the Registrable Securities (as defined herein) as
follows:

1.    Definitions.

(a)           Capitalized
terms used herein without definition shall have the meanings ascribed to them
in the Purchase Agreement.  As used in
this Agreement, the following defined terms shall have the following meanings:

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

“Closing Date”
means the First Time of Delivery as defined in the Purchase Agreement.

“Commission”
means the United States Securities and Exchange Commission, or any other
federal agency at the time administering the Exchange Act or the Securities
Act, whichever is the relevant statute for the particular purpose.

 

 

 

“Common Stock”
means the Company’s common stock, par value $0.008 per share.

“DTC” means
The Depository Trust Company.

“Effective Date”
has the meaning assigned thereto in Section 2(b)(i) hereof..

“Effective Failure”
has the meaning assigned thereto in Section 7(b) hereof.

“Effectiveness Period”
has the meaning assigned thereto in Section 2(b)(i) hereof.

“Effective Time” means
the time at which the Commission declares the Shelf Registration Statement effec­tive
or at which the Shelf Registration Statement otherwise becomes effective.

“Electing Holder”
has the meaning assigned thereto in Section 3(a)(iii) hereof.

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

“Holder”
means any person that is the record owner of Registrable Securities (and
includes any person that has a beneficial interest in any Registrable Security
in book-entry form).

“Indenture” means
the Indenture, dated as of September 27, 2006, between the Company and American
Stock Transfer and Trust Company, as amended and supplemented from time to time
in accordance with its terms.

“Liquidated Damages”
has the meaning assigned thereto in Section 7(a) hereof.

“Managing Underwriters” means
the investment banker or investment bankers and manager or managers that shall
administer an underwritten offering, if any, conducted pursuant to Section 6
hereof.

“NASD Rules”
means the Rules of the National Association of Securities Dealers, Inc., as
amended from time to time.

“Notice and Questionnaire”
means a Notice of Registration Statement and Selling Securityholder
Questionnaire substantially in the form of Appendix A hereto.

The term “person” means
an individual, partnership, corporation, trust or unincorporated organization,
or a government or agency or political subdivision thereof.

“Prospectus”
means the prospectus (including, without limitation, any preliminary
prospectus, any final prospectus and any prospectus that discloses information
previously omitted from a prospectus filed as part of an effective registration
statement in reliance upon Rule 430A under the Securities Act) included in
the Shelf Registration Statement, as amended or supplemented by any prospectus
supplement with respect to the terms of the offering of any portion of the
Registrable Securities covered by the Shelf Registration Statement and by all
other amendments and supplements to such prospectus, including all material
incorporated by 

 2
 

 

 

reference
in such prospectus and all documents filed after the date of such prospectus by
the Company under the Exchange Act and incorporated by reference therein.

“Purchase Agreement”
means the purchase agreement, dated as of September 21, 2006, between
the Purchasers and the Company relating to the Securities.

“Purchasers” means
the Purchasers named in Schedule I to the Purchase Agreement.

“Registrable Securities”
means all or any portion of the Securities issued from time to time under the
Indenture in registered form and the shares of Common Stock issuable upon conversion,
repurchase or redemption of such Securities; provided, however,
that a security ceases to be a Registrable Security when it is no longer a
Restricted Security.

“Registration Default”
has the meaning assigned thereto in Section 7(a) hereof.

“Restricted Security”
means any Security or share of Common Stock issuable upon conversion thereof
except any such Security or share of Common Stock that (i) has been
effectively registered under the Securities Act and sold in a manner
contemplated by the Shelf Registration Statement, (ii) has been
transferred in compliance with Rule 144 under the Securities Act (or any
successor provision thereto) or is transferable pursuant to paragraph (k)
of such Rule 144 (or any successor provision thereto) or (iii) has otherwise
been transferred and a new Security or share of Common Stock not subject to
transfer restrictions under the Securities Act has been delivered by or on
behalf of the Company in accordance with Section 3.5 of the Indenture.

“Rules and Regulations”
means the published rules and regulations of the Commission promulgated under
the Securities Act or the Exchange Act, as in effect at any relevant time.

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

“Shelf Registration”
means a registration effected pursuant to Section 2 hereof.

“Shelf Registration Statement”
means a “shelf” registration statement filed under the Securities Act providing
for the registration of, and the sale on a continuous or delayed basis by the
Holders of, all of the Registrable Securities pursuant to Rule 415 under the
Securities Act and/or any similar rule that may be adopted by the Commission,
filed by the Company pursuant to the provisions of Section 2 of this
Agreement, including the Prospectus contained therein, any amendments and
supplements to such registration statement, including post-effective
amendments, and all exhibits and all material incorporated by reference in such
registration statement.

“Trust Indenture Act”
means the Trust Indenture Act of 1939, or any successor thereto, and the rules,
regulations and forms promulgated thereunder, as the same shall be amended from
time to time.

The term “underwriter”
means any underwriter of Registrable Securities in connection with an offering
thereof under a Shelf Registration Statement.

 3
 

 

 

(b)  Wherever
there is a reference in this Agreement to a percentage of the “principal amount”
of Registrable Securities or to a percentage of Registrable Securities, Common
Stock shall be treated as representing the principal amount of Securities that
was surrendered for conversion or exchange in order to receive such number of
shares of Common Stock.

2.    Shelf Registration.

(a)  The
Company shall, no later than 90 calendar days following the Closing Date, file
with the Commission a Shelf Registration Statement relating to the offer and
sale of the Registrable Securities by the Holders from time to time in
accordance with the methods of distribution elected by such Holders and set
forth in such Shelf Registration Statement and, there­after, shall use its best
efforts to cause such Shelf Registration Statement to be declared effective
under the Securities Act no later than 180 calendar days following the Closing
Date; provided,
however, that the Company may, upon
written notice to all Holders, postpone having the Shelf Registration Statement
declared effective for a reasonable period not to exceed 90 days if the Company
possesses material non-public information, the disclosure of which would have a
material adverse effect on the Company and its subsidiaries taken as a whole;
provided, further, however, that no Holder shall be entitled to be named as a
selling securityholder in the Shelf Registration Statement or to use the
Prospectus forming a part thereof for resales of Registrable Securities unless
such Holder is an Electing Holder.

(b)  The
Company shall use its best efforts:

(i)            to keep the Shelf Registration
Statement con­tinuously effective under the Securities Act in order to permit
the Prospectus forming a part thereof to be usable by Holders until the
earliest of (1) the sale of all Registrable Securities registered under the
Shelf Registration Statement; (2) the expiration of the period referred to in
Rule 144(k) of the Securities with respect to all Registrable Securities held
by Persons that are not Affiliates of the Company; and (3) two years from the
date (the “Effective Date”) such Shelf Registration Statement is declared
effective (such period being referred to herein as the “Effectiveness Period”);

 (ii)          after
the Effective Time of the Shelf Registration Statement, promptly upon the
request of any Holder of Registrable Securities that is not then an Electing
Holder, to take any action reasonably necessary to enable such Holder to use
the Prospectus forming a part thereof for resales of Registrable Securities,
including, without limitation, any action necessary to identify such Holder as
a selling securityholder in the Shelf Registration Statement; provided, however, that nothing in this subparagraph shall
relieve such Holder of the obligation to return a completed and signed Notice
and Questionnaire to the Company in accordance with Section 3(a)(ii) hereof;
and

(iii)          if at any time the Securities,
pursuant to Article XII of the Indenture, are convertible into securities other
than Common Stock, to cause, or to cause any successor under the Indenture to
cause, such securities to be included in the Shelf Registration Statement no
later than the date on which the Securities may then be convertible into such
securities.

 4
 

 

 

The
Company shall be deemed not to have used its best efforts to keep the Shelf
Registration Statement effective during the requisite period if the Company
voluntarily takes any action that would result in Holders of Registrable
Securities covered thereby not being able to offer and sell any of such
Registrable Securities during that period, unless such action is (A)
required by applicable law and the Company there­after promptly complies with
the requirements of paragraph 3(j) below or (B) permitted pursuant to Section
2(c) below.

(c)  The
Company may suspend the use of the Prospectus for a period not to exceed 30
days in any 90-day period or an aggregate of 90 days in any 12-month period if
the Board of Directors of the Company shall have determined in good faith that
because of valid business reasons (not including avoidance of the Company’s
obligations hereunder), including the acquisition or divestiture of assets,
pending corporate developments, public filings with the Commission and similar
events, it is in the best interests of the Company to suspend such use, and
prior to suspending such use the Company provides the Holders with written
notice of such suspension, which notice need not specify the nature of the
event giving rise to such suspension.

3.    Registration Procedures. 
In connection with the Shelf Registration Statement, the following
provisions shall apply:

(a) (i)              Not
less than 30 calendar days prior to the Effective Time of the Shelf
Registration Statement, the Company shall mail the Notice and Questionnaire to
the Holders of Registrable Securities. 
No Holder shall be entitled to be named as a selling securityholder in
the Shelf Registration Statement as of the Effective Time, and no Holder shall
be entitled to use the Prospectus forming a part thereof for resales of
Registrable Securities at any time, unless such Holder has returned a completed
and signed Notice and Questionnaire to the Company by the deadline for response
set forth therein; provided, however,
Holders of Registrable Securities shall have at least 28 calendar days from the
date on which the Notice and Questionnaire is first mailed to such Holders to
return a completed and signed Notice and Questionnaire to the Company.

(ii)  After the Effective Time of the Shelf
Registration Statement, the Company shall, upon the request of any Holder of
Registrable Securities that is not then an Electing Holder, promptly send a
Notice and Questionnaire to such Holder. 
The Company shall not be required to take any action to name such Holder
as a selling securityholder in the Shelf Registration Statement or to enable
such Holder to use the Prospectus forming a part thereof for resales of
Registrable Securities until such Holder has returned a completed and signed
Notice and Questionnaire to the Company.

(iii) The term “Electing Holder” shall mean any
Holder of Registrable Securities that has returned a completed and signed
Notice and Questionnaire to the Company in accordance with Section 3(a)(i) or
3(a)(ii) hereof.

(b)  The
Company shall furnish to each Electing Holder, prior to the Effective Time, a
copy of the Shelf Registration Statement initially filed with the Commission,
and shall furnish to such Holders, promptly after the filing thereof with the
Commission, copies of each amendment thereto and each amend­ment or supplement,
if any, to the Prospectus included therein.

 5
 

 

 

(c)  The
Company shall promptly take such action as may be necessary so that (i) each of
the Shelf Registration Statement and any amendment thereto and the Prospectus
forming a part thereof and any amendment or supplement thereto (and each report
or other docu­ment incorporated therein by reference in each case) complies in
all material respects with the Securities Act and the Exchange Act and the
respective rules and regulations thereunder, (ii) each of the Shelf
Registration Statement and any amendment thereto does not, when it becomes
effective, contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the state­ments
therein not misleading and (iii) each of the Prospectus forming a part of the
Shelf Registration Statement, and any amendment or supplement to such
Prospectus, does not at any time during the Effectiveness Period include an
untrue statement of a material fact or omit to state a material fact necessary
in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading; provided, however,
that the Company shall not be required to take such action in respect of the
Shelf Registration Statement or any amendment thereto or of the Prospectus or
any amendment or supplement to the Prospectus if the Board of Directors of the
Company has made a determination pursuant to Section 2(c) for so long as such
suspension is continuing.

(d)   
The Company shall promptly advise each Electing Holder, and shall confirm
such advice in writing if so requested by any such Electing Holder:

(i)          when
a Shelf Registration Statement and any amendment thereto has been filed with the
Commission and when a Shelf Registration State­ment or any post-effective
amendment thereto has become effective, and in the case of the filing of and
the effectiveness of the initial Shelf Registration Statement (not including
any post-effective amendments thereto) making a public announcement thereof by
release made to Reuters Economic Services and Bloomberg Business News;

(ii)       of
any request by the Commission for amendments or supplements to the Shelf
Registra­tion Statement or the Prospectus included therein or for additional
information;

(iii)    of
the issuance by the Commission of any stop order suspending the effectiveness
of the Shelf Registration Statement or the initiation of any proceedings for
such purpose;

(iv)   of
the receipt by the Company of any notification with respect to the suspension
of the qualification of the securities included in the Shelf Registration
Statement for sale in any jurisdiction or the initi­a­tion of any proceeding
for such purpose; and

(v)      of
the occurrence of any event or the existence of any state of facts that
requires the making of any changes in the Shelf Registra­tion Statement or the
Prospectus included therein so that, as of such date, such Shelf Registration
Statement and Prospectus do not contain an untrue statement of a material fact
and do not omit to state a material fact required to be stated therein or
necessary to make the statements therein (in the case of the Prospectus, in
light of the circum­stances under which they 

 6
 

 

 

were
made) not misleading (which advice shall be accompanied by an instruc­tion to
such Holders to suspend the use of the Prospectus until the requisite changes
have been made).

(e)  The
Company shall use its best efforts to prevent the issuance, and if issued to
obtain the withdrawal at the earliest possible time, of any order suspending
the effectiveness of the Shelf Registration Statement.

(f)   The
Company shall furnish to each Electing Holder, with­out charge, at least one
copy of the Shelf Registra­tion Statement and all post-effective amendments
thereto, including financial statements and schedules, and, if such Electing
Holder so requests in writing, all reports, other documents and exhibits that
are filed with or incorpor­ated by reference in the Shelf Registration
Statement.

(g)  The
Company shall, during the Effectiveness Period, deliver to each Electing
Holder, without charge, as many copies of the Prospectus (including each prelim­inary
Prospectus) included in the Shelf Registration Statement and any amendment or
supplement thereto as such Electing Holder may reasonably request; and the
Company consents (except during the periods specified in Section 2(c) above or
during the continuance of any event or the existence of any state of facts
described in Section 3(d)(v) above) to the use of the Prospec­tus and any amend­ment
or supplement thereto by each of the Electing Holders in connection with the
offering and sale of the Registrable Securities covered by the Prospectus and
any amendment or supple­ment thereto during the Effectiveness Period.

(h)  Prior
to any offering of Registrable Securities pursuant to the Shelf Registration
Statement, the Company shall (i) register or qualify or cooperate with the
Electing Holders and their respective counsel in connection with the
registration or quali­fication of such Registrable Securities for offer and
sale under the securities or “blue sky” laws of such jurisdictions within the
United States as any Electing Holder may reasonably request, (ii) keep such
registrations or qualifications in effect and comply with such laws so as to
permit the continuance of offers and sales in such jurisdictions for so long as
may be necessary to enable any Electing Holder or underwriter, if any, to
complete its distribution of Registrable Securities pursuant to the Shelf
Registration Statement, and (iii) take any and all other actions necessary or
advisable to enable the  disposition in
such jurisdictions of such Registrable Securities; provided,
however, that in no event shall the
Company be obligated to (A) qualify as a foreign corporation or as a dealer in
securities in any jurisdiction where it would not otherwise be required to so
qualify but for this Sec­tion 3(h) or (B) file any general consent to service
of process in any jurisdiction where it is not as of the date hereof so
subject.

(i)   Unless
any Registrable Securities shall be in book-entry only form, the Company shall
cooperate with the Electing Holders to facilitate the timely preparation and
delivery of certificates representing Registrable Securities to be sold
pursuant to the Shelf Registration Statement, which certificates, if so
required by any securities exchange upon which any Registrable Securities are
listed, shall be penned, lithographed or engraved, or produced by any
combination of such methods, on steel engraved borders, and which certificates
shall be free of any restrictive legends and in such permitted denominations
and registered in such names as 

 7
 

 

 

 

Electing
Holders may request in connection with the sale of Registrable Securities
pursuant to the Shelf Registration Statement.

(j)   Upon
the occurrence of any event or the existence of any state of facts contemplated
by paragraph 3(d)(v) above, the C­ompany shall promptly prepare a
post-effective amend­ment to any Shelf Registration Statement or an amendment
or supplement to the related Prospectus or file any other required document so
that, as thereafter delivered to Purchasers of the Registrable Securities
included therein, the Prospectus will not include an untrue statement of a
material fact or omit to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading; provided, however,
that the Company shall not be required to file such amendment, supplement or
document if the Board of Directors of the Company has made a determination
pursuant to Section 2(c) for so long as such suspension is continuing.  If the Company notifies the Electing Holders
of the occurrence of any event or the existence of any state of facts contemplated
by Section 2(c) or paragraph 3(d)(v) above, the Electing Holder shall suspend
the use of the Prospectus until the requisite changes to the Prospectus have
been made.

(k)  Not
later than the Effective Time of the Shelf Registration Statement, the Company
shall provide a CUSIP number for the Registrable Securi­ties that are debt
securities.

(l)   The
Company shall use its best efforts to comply with all applicable Rules and
Regulations, and to make generally available to its secu­rityholders as soon as
practicable, but in any event not later than eighteen months after (i) the
effective date (as defined in Rule 158(c) under the Securities Act) of the
Shelf Registration Statement, (ii) the effective date of each
post-effective amendment to the Shelf Regis­tration Statement, and (iii) the
date of each filing by the Company with the Commission of an Annual Report on
Form 10-K that is incor­porated by reference in the Shelf Registration
Statement, an earning statement of the Company and its sub­sid­iaries complying
with Section 11(a) of the Securities Act and the rules and regulations of
the Commission thereunder (including, at the option of the Company, Rule 158).

(m) Not
later than the Effective Time of the Shelf Registration Statement, the Company
shall cause the Indenture to be qualified under the Trust Indenture Act; in
connection with such qualification, the Company shall cooperate with the
Trustee under the Indenture and the Holders (as defined in the Indenture) to
effect such changes to the Indenture as may be required for such Indenture to
be so qualified in accordance with the terms of the Trust Indenture Act; and
the Company shall execute, and shall use all reasonable efforts to cause the
Trustee to execute, all documents that may be required to effect such changes
and all other forms and documents required to be filed with the Commission to
enable such Indenture to be so qualified in a timely manner.  In the event that any such amendment or
modification referred to in this Section 3(m) involves the appointment of
a new trustee under the Indenture, the Company shall appoint a new trustee
thereunder pursuant to the applicable provisions of the Indenture.

(n)  In
the event of an underwritten offering conducted pursuant to Section 6 hereof,
the Company shall, if requested, promptly include or incorporate in a
Prospectus supplement or post-effective amendment to the Shelf Registration
Statement such information as the Managing Underwriters reasonably agree should
be included therein and to which the Company does not reasonably object and
shall make all required filings of such Prospectus supplement or post-

 8
 

 

 

 

effective
amendment as soon as practicable after it is notified of the matters to be
included or incorporated in such Prospectus supplement or post-effective
amendment.

(o)           The
Company shall enter into such customary agreements (including an underwriting
agreement in customary form in the event of an underwritten offering conducted
pursuant to Section 6 hereof) and take all other appropriate action in order to
expedite and facilitate the registration and disposition of the Registrable
Securities, and in connection therewith, if an under­writing agreement is
entered into, cause the same to contain indemnification provisions and
procedures substantially identical to those set forth in Section 5 hereof with
respect to all parties to be indemnified pursuant to Section 5 hereof.

(p)           The
Company shall:

(i)(A)  make reasonably available for inspection by
the Electing Holders, any underwriter participating in any disposition pursuant
to the Shelf Registration Statement, and any attorney, accountant or other
agent retained by such Electing Holders or any such underwriter all relevant
financial and other records, pertinent corporate documents and properties of
the Company and its subsidiaries, and (B) cause the Company’s officers,
directors and employees to supply all information reasonably requested by such
Electing Holders or any such underwriter, attorney, accountant or agent in
connection with the Shelf Registration Statement, in each case, as is customary
for similar due diligence exam­inations; provided, however, that all records, information and documents that
are designated in writing by the Company, in good faith, as confidential shall
be kept confi­dential by such Electing Holders and any such underwriter,
attorney, accountant or agent, unless such disclosure is made in connection
with a court proceeding or required by law, or such records, information or
documents become available to the public generally or through a third party
without an accompanying obligation of confidentiality; and provided
further that, if the foregoing inspection and information gathering
would otherwise disrupt the Company’s conduct of its business, such inspection
and information gathering shall, to the great­est extent possible, be
coordinated on behalf of the Electing Holders and the other parties entitled
thereto by one counsel designated by and on behalf of the Electing Holders and
other parties;

(ii)  in connection with any underwritten offering
conducted pursuant to Section 6 hereof, make such repre­sen­tations and
warranties to the Electing Holders participating in such underwritten offering
and to the Managing Underwriters, in form, substance and scope as are
customarily made by the Company to underwriters in primary underwritten
offerings of equity and convertible debt securities and cov­ering matters
including, but not limited to, those set forth in the Purchase Agreement;

(iii) in connection with any underwritten offering
conducted pursuant to Section 6 hereof, obtain opinions of counsel to the
Company (which counsel and opinions (in form, scope and substance) shall be
reasonably satisfactory to the Managing Underwriters) addressed to each
Electing Holder participating in such under­written offering and the
underwriters, covering such matters as are customarily covered in opinions
requested in primary under­written offerings of equity and convertible debt
securities and such other matters as may be reasonably requested by such Electing

 9
 

 

 

Holders and underwriters
(it being agreed that the matters to be covered by such opinions shall include,
without limitation a statement by such counsel that nothing came to the
attention of such counsel in the course of their review that the Shelf
Registration Statement and the Prospectus, including the documents incorporated
by reference therein (other than the financial statements or other financial
data therein, as to which such counsel need express no opinion or belief), as
of the Effective Time of the Shelf Registration Statement or most recent
post-effective amendment thereto, as the case may be, contained any untrue
statement of a material fact or omitted to state any material fact required to
be stated therein necessary in order to make the statements therein not
misleading;

(iv) in connection with any underwritten offering
conducted pursuant to Section 6 hereof, obtain “cold comfort” letters and
updates thereof from the independent public accountants of the Company (and, if
necessary, from the independent pub­lic accountants of any subsidiary of the
Company or of any business acquired by the C­ompany for which financial
statements and finan­cial data are, or are required to be, included in the
Shelf Registration Statement), addressed to each Electing Holder participating
in such underwritten offering (if such Electing Holder has provided such
letter, representations or documentation, if any, required for such cold
comfort letter to be so addressed) and the underwriters, in customary form and
covering matters of the type customarily covered in “cold comfort” letters in
connection with primary under­written offerings;

(v)  in connection with any underwritten offering
conducted pursuant to Section 6 hereof, deliver such documents and
certificates as may be reasonably requested by any Electing Holders
participating in such underwritten offering and the Managing Underwriters, if
any, including, without limitation, certificates to evidence compliance with
Section 3(j) hereof and with any conditions contained in the underwriting
agreement or other agreements entered into by the Company.

(q)  The
Company will use its best efforts to cause the Common Stock issuable upon
conversion of the Securities to be quoted on the Nasdaq National Market System
or other stock exchange or trading system on which the Common Stock primarily
trades on or prior to the Effective Time of the Shelf Registration State­ment
hereunder.

(r)   In
the event that any broker-dealer registered under the Exchange Act shall
be an “affiliate” (as defined in Rule 2720(b)(1) of the NASD Rules (or any
successor provision thereto)) of the Company or has a “conflict of interest”
(as defined in Rule 2720(b)(7) of the NASD Rules (or any successor
provision thereto)) and such broker-dealer shall underwrite, participate
as a member of an underwriting syndicate or selling group or assist in the
distribution of any Registrable Securities covered by the Shelf Registration
Statement, whether as a Holder of such Registrable Securities or as an
underwriter, a placement or sales agent or a broker or dealer in respect
thereof, or otherwise, the Company shall assist such broker-dealer in
complying with the requirements of the NASD Rules, including, without
limitation, by (A) engaging a “qualified independent underwriter” (as defined
in Rule 2720(b)(15) of the NASD Rules (or any successor provision
thereto)) to participate in the preparation of the registration statement
relating to such Registrable Securities, to exercise usual standards of due
diligence in 

 10
 

 

 

 

respect
thereto and to recommend the public offering price of such Registrable
Securities, (B) indemnifying such qualified independent underwriter to the
extent of the indemnification of underwriters provided in Section 5 hereof, and
(C) providing such information to such broker-dealer as may be required
in order for such broker-dealer to comply with the requirements of the NASD
Rules.

(s)  The
Company shall use its best efforts to take all other steps necessary to effect
the registration, offering and sale of the Registrable Securities covered by
the Shelf Registra­tion Statement contem­plated hereby.

4.    Registration Expenses. 
Except as otherwise provided in Section 3, the Company shall bear all
fees and expenses incurred in connection with the performance of its
obligations under Sections 2, 3 and 6 hereof and shall bear or reimburse the
Electing Holders for the reasonable fees and disbursements of a single counsel
selected by a plurality of all Electing Holders who own an aggregate of not
less than 25% of the Registrable Securities covered by the Shelf Registration
Statement to act as counsel therefore in connection therewith.  Each Electing Holder shall pay all
underwriting discounts and commissions and transfer taxes, if any, relating to
the sale or disposition of such Electing Holder’s Registrable Securities
pursuant to the Shelf Registration Statement.

5.    Indemnification and Contribution.

(a)  Indemnification by the Company. Upon the registration of the
Registrable Securities pursuant to Section 2 hereof, the Company shall 
indemnify and hold harmless each Electing Holder and each underwriter, selling
agent or other securities professional, if any, which facilitates the
disposition of Registrable Securities, and each of their respective officers
and directors and each person who controls such Electing Holder, underwriter,
selling agent or other securities professional within the meaning of Section 15
of the Securities Act or Section 20 of the Exchange Act (each such person being
sometimes referred to as an “Indemnified Person”) against any losses, claims,
damages or liabilities, joint or several, to which such Indemnified Person may
become subject under the Securities Act or otherwise, insofar as such losses,
claims, damages or liabilities (or actions in respect thereof) arise out of or
are based upon an untrue statement or alleged untrue statement of a material
fact contained in any Shelf Registration Statement under which such Registrable
Securities are to be registered under the Securities Act, or any Prospectus
contained therein or furnished by the Company to any Indemnified Person, or any
amendment or supplement thereto, or arise out of or are based upon the omission
or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, and the
Company hereby agrees to reimburse such Indemnified Person for any legal or
other expenses reasonably incurred by them in connection with investigating or
defending any such action or claim as such expenses are incurred; provided, however, that
the Company shall not be liable to any such Indemnified Person in any such case
to the extent that any such loss, claim, damage or liability arises out of or
is based upon an untrue statement or alleged untrue statement or omission or
alleged omission made in such Shelf Registration Statement or Prospectus, or
amendment or supplement, in reliance upon and in conformity with written
information furnished to the Company by such Indemnified Person expressly for
use therein.

 

 11

 

 

(b)           Indemnification by the
Electing Holders and any Agents and Underwriters.  Each Electing Holder agrees, as a consequence
of the inclusion of any of such Electing Holder’s Registrable Securities in
such Shelf Registration Statement, and each underwriter, selling agent or other
securities professional, if any, which facilitates the disposition of
Registrable Securities shall agree, as a consequence of facilitating such
disposition of Registrable Securities, severally and not jointly, to (i)
indemnify and hold harmless the Company, its directors, officers who sign any
Shelf Registration Statement and each person, if any, who controls the Company
within the meaning of either Section 15 of the Securities Act or Section 20 of
the Exchange Act, against any losses, claims, damages or liabilities to which
the Company or such other persons may become subject, under the Securities Act
or otherwise, insofar as such losses, claims, damages or liabilities (or
actions in respect thereof) arise out of or are based upon an untrue statement
or alleged untrue statement of a material fact contained in such Shelf
Registration Statement or Prospectus, or any amendment or supplement, or arise
out of or are based upon the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, in each case to the extent, but only to the extent,
that such untrue statement or alleged untrue statement or omission or alleged
omission was made in reliance upon and in conformity with written information
furnished to the Company by such Electing Holder, underwriter, selling agent or
other securities professional expressly for use therein, and (ii) reimburse the
Company for any legal or other expenses reasonably incurred by the Company in
connection with investigating or defending any such action or claim as such
expenses are incurred.

(c)           Notices of Claims, Etc.  Promptly after receipt by an indemnified
party under subsection (a) or (b) above of notice of the commencement of any
action, such indemnified party shall, if a claim in respect thereof is to be
made against an indemnifying party under this Section 5, notify such
indemnifying party in writing of the commencement thereof; but the omission so
to notify the indemnifying party shall not relieve it from any liability which
it may have to any indemnified party otherwise than under the indemnification
provisions of or contemplated by subsection (a) or (b) above.  In case any such action shall be brought
against any indemnified party and it shall notify an indemnifying party of the
commencement thereof, such indemnifying party shall be entitled to participate
therein and, to the extent that it shall wish, jointly with any other
indemnifying party similarly notified, to assume the defense thereof, with
counsel satisfactory to such indemnified party (who shall not, except with the
consent of the indemnified party, be counsel to the indemnifying party), and,
after notice from the indemnifying party to such indemnified party of its
election so to assume the defense thereof, such indemnifying party shall not be
liable to such indemnified party under this Section 5 for any legal expenses of
other counsel or any other expenses, in each case subsequently incurred by such
indemnified party, in connection with the defense thereof other than reasonable
costs of investigation. No indemnifying party shall, without the written
consent of the indemnified party, effect the settlement or compromise of, or
consent to the entry of any judgment with respect to, any pending or threatened
action or claim in respect of which indemnification or contribution may be
sought hereunder (whether or not the indemnified party is an actual or
potential party to such action or claim) unless such settlement, compromise or
judgment (i) includes an unconditional release of the indemnified party from
all liability arising out of such action or claim and (ii) does not include a
statement as to, or an admission of, fault, culpability or a failure to act, by
or on behalf of any indemnified party.

 12
 

 

 

(d)           Contribution.  If the indemnification provided for in this
Section 5 is unavailable to or insufficient to hold harmless an indemnified
party under subsection (a) or (b) above in respect of any losses, claims,
damages or liabilities (or actions in respect thereof) referred to therein,
then each indemnifying party shall contribute to the amount paid or payable by
such indemnified party as a result of such losses, claims, damages or
liabilities (or actions in respect thereof) in such proportion as is
appropriate to reflect the relative fault of the indemnifying party and the
indemnified party in connection with the statements or omissions which resulted
in such losses, claims, damages or liabilities (or actions in respect thereof),
as well as any other relevant equitable considerations.  The relative fault of such indemnifying party
and indemnified party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or omission
or alleged omission to state a material fact relates to information supplied by
such indemnifying party or by such indemnified party, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.  The parties
hereto agree that it would not be just and equitable if contribution pursuant
to this Section 5(d) were determined by pro rata allocation (even if the
Electing Holders or any underwriters, selling agents or other securities
professionals or all of them were treated as one entity for such purpose) or by
any other method of allocation which does not take account of the equitable
considerations re­ferred to in this Section 5(d).  The amount paid or payable by an indemnified
party as a result of the losses, claims, damages or liabilities (or actions in
respect thereof) referred to above shall be deemed to include any legal or
other fees or expenses reasonably incurred by such indemni­fied party in
connection with investigating or defending any such action or claim.  No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation.  The
obligations of the Electing Holders and any underwriters, selling agents or
other securities professionals in this Section 5(d) to contribute shall be
several in proportion to the percentage of principal amount of Registrable
Securities registered or underwritten, as the case may be, by them and not
joint.

(e)           Notwithstanding any other provision
of this Section 5, in no event will any (i) Electing Holder be required to
undertake liability to any person under this Section 5 for any amounts in excess
of the dollar amount of the proceeds to be received by such Holder from the
sale of such Holder’s Registrable Securities (after deducting any fees,
discounts and commissions applicable thereto) pursuant to any Shelf
Registration Statement under which such Registrable Securities are to be
registered under the Securities Act and (ii) underwriter, selling agent or
other securities professional be required to undertake liability to any person
hereunder for any amounts in excess of the discount, commission or other
compensation payable to such underwriter, selling agent or other securities
professional with respect to the Registrable Securities underwritten by it and
distributed to the public.

(f)            The obligations of the Company under
this Section 5 shall be in addition to any liability which the Company may
otherwise have to any Indemnified Person and the obligations of any Indemnified
Person under this Section 5 shall be in addition to any liability which
such Indemnified Person may otherwise have to the Company.  The remedies provided in this Section 5
are not exclusive and shall not limit any rights or remedies which may
otherwise be available to an indemnified party at law or in equity.

 13
 

 

 

6.             Underwritten Offering.  Any Holder of Registrable Securities who
desires to do so may sell Registrable Securities (in whole or in part) in an
underwritten offering; provided
that  (i) the Electing Holders of at
least 33-1/3% in aggregate principal amount of the Registrable Securities then
covered by the Shelf Registration Statement shall request such an offering and
(ii) at least such aggregate principal amount of such Registrable Securities
shall be included in such offering; and provided further
that the Company shall not be obligated to cooperate with more than one underwritten
offering during the Effectiveness Period. 
Upon receipt of such a request, the Company shall provide all Holders of
Registrable Securities written notice of the request, which notice shall inform
such Holders that they have the opportunity to participate in the
offering.  In any such under­written
offering, the investment banker or bankers and manager or managers that will
administer the offering will be selected by, and the underwriting arrangements
with respect thereto (including the size of the offering) will be approved by,
the holders of a majority of the Registrable Securities to be included in such
offering; provided, however,
that such investment bankers and managers and underwriting arrangements must be
reasonably satisfactory to the Company. 
No Holder may participate in any underwritten offering contemplated
hereby unless (a) such Holder agrees to sell such Holder’s Registrable
Securities to be included in the underwritten offering in accordance with any
approved underwriting arrangements, (b) such Holder completes and executes all
reasonable questionnaires, powers of attorney, indemnities, underwriting
agreements, lock-up letters and other documents required under the terms of
such approved underwriting arrangements, and (c) if such Holder is not then an
Electing Holder, such Holder returns a completed and signed Notice and
Questionnaire to the Company in accordance with Section 3(a)(ii) hereof within
a reasonable amount of time before such underwritten offering.  The Holders participating in any underwritten
offering shall be responsible for any underwriting discounts and commissions
and fees and, subject to Section 4 hereof, expenses of their own counsel.  The Company shall pay all expenses customarily
borne by issuers in an underwritten offering, including but not limited to
filing fees, the fees and disburse­ments of its counsel and independent public
accountants and any printing expenses incurred in connection with such
underwritten offering.  Notwithstanding
the foregoing or the provisions of Section 3(n) hereof, upon receipt of a
request from the Managing Underwriter or a representative of holders of a
majority of the Registrable Securities to be included in an underwritten
offering to prepare and file an amendment or supplement to the Shelf
Registration Statement and Prospectus in connec­tion with an underwritten
offering, the Company may delay the filing of any such amend­ment or supplement
for up to 90 days if the Board of Directors of the Company shall have
determined in good faith that the Company has a bona fide business reason for
such delay.

7.                                      Liquidated Damages.

(a)           Notwithstanding any postponement of
effectiveness permitted by Section 2(a) hereof, if (i) on or prior to the 90th
day following the Closing Date, a Shelf Registration Statement has not been
filed with the Commission or (ii) on or prior to the 180th day following the
Closing Date, such Shelf Registration Statement is not declared effective by
the Commission (each, a “Registration Default”), the Company shall be required
to pay liquidated damages (“Liquidated Damages”), from and including the day
following such Registration Default until such Shelf Registration Statement is
either so filed or so filed and subsequently declared effective, as applicable,
at a rate per annum equal to an additional one-quarter of one percent (0.25%)
of the principal amount of Registrable Securities, to and including the 90th
day following 

 14
 

 

 

 

such
Registration Default and one-half of one percent (0.50%) thereof from and after
the 91st day following such Registration Default.

(b)           In the event that (i) the Shelf
Registration Statement ceases to be effective, (ii) the Company suspends the
use of the Prospectus pursuant to Section 2(c) or 3(j) hereof, (iii) the
Holders are not authorized to use the Prospectus pursuant to Section 3(g)
hereto or (iv) the Holders are otherwise prevented or restricted by the Company
from effecting sales pursuant to the Shelf Registration Statement (an “Effective
Failure”) for more than 30 days, whether or not consecutive, in any 90-day
period, or for more than 90 days, whether or not consecutive, during any
12-month period, then the Company shall pay Liquidated Damages at a rate per
annum equal to an additional one-half of one percent (0.50%) of the principal
amount of Registrable Securities from the 31st day of the applicable 90-day period or the
91st day of the applicable 12-month period, as the case may be, that any such
Effective Failure has existed until the earlier of (1) the time the Shelf
Registration again becomes effective or the Holders of Registrable Securities
are again able to make sales under the Shelf Registration Statement or (2) the
expiration of the Effectiveness Period.

(c)           Any amounts to be paid as Liquidated
Damages pursuant to paragraphs (a) or (b) of this Section 7 shall be paid in
cash semi-annually in arrears, with the first semi-annual payment due on the
first interest payment date following the date on which the liquidated damages
began to accrue (as defined in the Indenture), as applicable, following the
date of such Registration Default or Effective Failure, as applicable.  Such Liquidated Damages will accrue
(1) in respect of the Securities at the rates set forth in paragraphs (a)
or (b) of this Section 7, as applicable, on the principal amount of the
Securities and (2) in respect of the Common Stock issued upon conversion
of the Securities, at the rates set forth in paragraphs (a) or (b) of this
Section 7, as applicable, applied to the Conversion Price (as defined in the
Indenture) at that time.

(d)           Except as provided in
Section 8(b) hereof, the Liquidated Damages as set forth in this Section 7
shall be the exclusive monetary remedy available to the Holders of Registrable
Securities for such Registration Default or Effective Failure. In no event
shall the Company be required to pay Liquidated Damages in excess of the
applicable maximum amount of one-half of one percent (0.50%) set forth above,
regardless of whether one or multiple Registration Defaults or Effective
Failures exist.

8.                                       Miscellaneous.

(a)           Other Registration Rights.  The Company may grant registration rights
that would permit any person that is a third party the right to piggy-back
on any Shelf Registration  Statement, provided that if the Managing Underwriter of any
underwritten offering conducted pursuant to Section 6 hereof notifies the
Company and the Electing Holders that the total amount of securities which the
Electing Holders and the holders of such piggy-back rights intend to
include in any Shelf Regis­tration Statement is so large as to materially
threaten the success of such offering (including the price at which such
securities can be sold), then the amount, number or kind of securities to be
offered for the account of holders of such piggy-back rights will be
reduced to the extent necessary to reduce the total amount of securities to be
included in such offering to the amount, number and kind recommended by the Man­aging
Underwriter prior 

 15
 

 

 

 

to
any reduction in the amount of Registrable Securities to be included in such
Shelf Registration Statement.

(b)           Specific Performance.  The parties hereto acknowledge that there
would be no adequate remedy at law if the Company fails to perform any of its
obligations hereunder and that the Purchasers and the Holders from time to time
may be irreparably harmed by any such failure, and accordingly agree that the
Purchasers and such Holders, in addition to any other remedy to which they may
be entitled at law or in equity and without limiting the remedies available to
the Electing Holders under Section 7 hereof, shall be entitled to compel
specific performance of the obligations of the Company under this Registration
Rights Agreement in accordance with the terms and conditions of this
Registration Rights Agreement, in any court of the United States or any State
thereof having jurisdiction.

(c)           Amendments and Waivers.  This Agreement, including this Section 8(c),
may be amended, and waivers or consents to departures from the provisions
hereof may be given, only by a written instrument duly executed by the Company
and the holders of a majority in aggregate principal amount of Registrable
Securities then outstanding.  Each Holder
of Registrable Securities outstanding at the time of any such amendment, waiver
or consent or thereafter shall be bound by any amendment, waiver or consent
effected pursuant to this Section 8(c), whether or not any notice, writing or
marking indicating such amendment, waiver or consent appears on the Registrable
Securities or is delivered to such Holder.

(d)           Notices.  All notices and other communications provided
for or permitted hereunder shall be given as provided in the Indenture.

(e)           Parties in Interest.  The parties to this Agreement intend that all
Holders of Registrable Securities shall be entitled to receive the benefits of
this Agreement and that any Electing Holder shall be bound by the terms and
provisions of this Agreement by reason of such election with respect to the
Registrable Securities which are included in a Shelf Registration Statement.  All the terms and provisions of this
Agreement shall be binding upon, shall inure to the benefit of and shall be
enforceable by the respective successors and assigns of the parties hereto and
any Holder from time to time of the Registrable Securities to the aforesaid
extent.  In the event that any transferee
of any Holder of Registrable Securities shall acquire Registrable Securities,
in any manner, whether by gift, bequest, purchase, operation of law or
otherwise, such transferee shall, without any further writing or action of any
kind, be entitled to receive the benefits of and, if an Electing Holder, be
conclusively deemed to have agreed to be bound by and to perform all of the
terms and provisions of this Agreement to the aforesaid extent.

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

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

(h)           Governing Law.  This
Agreement shall be governed by and construed in accordance with the laws of the
State of New York.

 16
 

 

 

 

(i)            Severability.  In the event that any one or more of the
provisions contained herein, or the application thereof in any circumstances,
is held invalid, illegal or unenforceable in any respect for any reason, the
validity, legality and enforceability of any such provision in every other
respect and of the remaining provisions hereof shall not be in any way impaired
or affected thereby, it being intended that all of the rights and privileges of
the parties hereto shall be enforceable to the fullest extent permitted by law.

(j)            Survival.  The respective indemnities, agreements,
representations, warranties and other provisions set forth in this Agreement or
made pursuant hereto shall remain in full force and effect, regardless of any
investigation (or any statement as to the results thereof) made by or on behalf
of any Electing Holder, any director, officer or partner of such Holder, any
agent or underwriter, any director, officer or partner of such agent or
underwriter, or any controlling person of any of the foregoing, and shall
survive the transfer and registration of the Registrable Securities of such
Holder.

 17
 

 

 

 

Please
confirm that the foregoing correctly sets forth the agreement between the
Company and you.

	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
  priceline.com
  Incorporated

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffery H. Boyd

  	
   

  
	
   

  	
   

  	
  Name: Jeffery H. Boyd

  
	
   

  	
   

  	
  Title: Chief Executive Officer

  

 

	
  Accepted as of the date
  hereof:

  	
   

  
	
   

  	
   

  	
   

  
	
  Goldman,
  Sachs & Co.

  	
   

  
	
   

  	
   

  	
   

  
	
   By:

  	
  /s/  Goldman,
  Sachs & Co.

  	
   

  
	
   

  	
      (Goldman,
  Sachs & Co.)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  On behalf of
  each of the Purchasers

  	
   

  
				

 

 18

 

 

Appendix
A

PRICELINE.COM
INCORPORATED

INSTRUCTION TO DTC
PARTICIPANTS

(Date of
Mailing)

URGENT -
IMMEDIATE ATTENTION REQUESTED

DEADLINE
FOR RESPONSE: 

The Depository Trust Company (“DTC”) has
identified you as a DTC Participant through which beneficial interests in the
priceline.com Incorporated (the “Company”) 0.50% Convertible Senior Notes due
2011 (the “2011 Notes”) and 0.75% Convertible Senior Notes due 2013 (the “2013
Notes” and, together with the 2011 Notes, the “Securities”) are held.

The Company is in the process of
registering the Securities under the Securities Act of 1933 for resale by the
beneficial owners thereof.  In order to
have their Securities included in the registration statement, beneficial owners
must complete and return the enclosed Notice of Registration Statement and
Selling Securityholder Questionnaire.

It is important that beneficial owners of
the Securities receive a copy of the enclosed materials as soon as possible
as their rights to have the Securities included in the registration statement
depend upon their returning the Notice and Questionnaire by ____________.  Please forward a copy of the enclosed
documents to each beneficial owner that holds interests in the Securities
through you.  If you require more copies
of the enclosed materials or have any questions pertaining to this matter,
please contact:  priceline.com
Incorporated, General Counsel’s Office, 800 Connecticut Avenue, Norwalk,
CT  06854.

 19
 

 

 

PRICELINE.COM
INCORPORATED

NOTICE OF
REGISTRATION STATEMENT

AND

SELLING SECURITYHOLDER QUESTIONNAIRE

Priceline.com Incorporated (the “Company”) has filed with the United States Securities and
Exchange Commission (the “Commission”) a registration statement on
Form S-3 (the “Shelf Registration
Statement”) for the registration and resale pursuant to
Rule 415 under the United States Securities Act of 1933, as amended (the “Securities Act”), of the Company’s 0.50% Convertible Senior
Notes due 2011 (the “2011 Notes”)
and its 0.75% Convertible Senior Notes due 2013 (the “2013 Notes”
and, together with the 2011 Notes, the “Notes”), and
common stock issuable upon conversion thereof, in accordance with the terms of
the Registration Rights Agreement, dated as of September 27, 2006 (the “Registration Rights Agreement”), between the Company and the
purchasers named therein (the “Purchasers”).  A copy of the Registration Rights Agreement
is attached hereto.  All capitalized
terms not otherwise defined herein shall have the meanings ascribed thereto in
the Registration Rights Agreement.

In order to have Registrable Securities included
in the Shelf Registration Statement (or a prospectus supplement or amendment
thereto), this Notice of Registration Statement and Selling Securityholder
Questionnaire (“Notice and Questionnaire”) must
be completed, executed and delivered to the Company at the address set forth
herein.  Unless the Company otherwise
consents, beneficial owners of the Registrable Securities who do not complete,
execute and return this Notice and Questionnaire (i) will not be named as
selling securityholders in the Shelf Registration Statement and related
Prospectus and (ii) may not sell their Registrable Securities pursuant
thereto.  Following the Company’s receipt
of a completed and signed Notice and Questionnaire, the Company will include the
Registrable Securities covered thereby in the Shelf Registration Statement,
subject to certain restrictions described in the Registration Rights Agreement.

Certain legal consequences arise from being
named as a selling securityholder in the Shelf Registration Statement and
related Prospectus.  Accordingly, holders
and beneficial owners of Registrable Securities are advised to consult their
own securities law counsel regarding the consequences of being named or not being
named as a selling securityholder in the Shelf Registration Statement and
related Prospectus.

 20
 

 

 

ELECTION

The
undersigned holder (the “Selling Securityholder”) of Registrable Securities
hereby elects to include in the Shelf Registration Statement the Registrable
Securities beneficially owned by it and listed below in Item (3) (unless
otherwise specified under Item 3).  The
undersigned, by signing and returning this Notice and Questionnaire, agrees to
be bound with respect to such Registrable Securities by the terms and
conditions of this Notice and Questionnaire and the Registration Rights
Agreement, including, without limitation, Section 5 of the Registration Rights
Agreement, as if the undersigned Selling Securityholder were an original party
thereto.

Upon any sale of Registrable Securities pursuant
to the Shelf Registration Statement, the Selling Securityholder will be
required to deliver to the Company and the Trustee the Notice of Transfer
(completed and signed) set forth in Exhibit 1 attached to this Notice and
Questionnaire.

The Selling Securityholder hereby provides the
following information to the Company and represents and warrants that such
information is accurate and complete:

 

 21

 

 

QUESTIONNAIRE

(1)          (a) Full Legal Name of Selling Securityholder:

 

(b) Full
Legal Name of Registered Holder (if not the same as in (a) above) of
Registrable Securities Listed in Item (3) Below:

(c) Full
Legal Name of DTC Participant (if applicable and if not the same as (b) above)
Through Which Registrable Securities Listed in Item (3) Below are Held:

 

(2)                  Address for Notices to Selling
Securityholder:

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Telephone:

  	
   

  	
   

  
	
   

  	
  Fax:

  	
   

  	
   

  
	
   

  	
  Contact Person:

  	
   

  	
   

  

 

(3)                                  Beneficial
Ownership of Registrable Securities:

                                                Except
as set forth below, the undersigned Selling Securityholder does not
beneficially own any Notes or common stock previously issued upon conversion,
repurchase or redemption of any Note.

                                                Principal
amount of Notes beneficially owned and to be included in the Shelf Registration
Statement (including any shares of common stock issuable upon conversion,
repurchase or redemption of Notes):

 

Number of shares of common stock beneficially owned
and issued to date upon conversion, repurchase or redemption of Notes (if any):

 

 

Number
of shares of common stock (if any) issued to date upon conversion, repurchase
or redemption of Notes which are to be included in the Shelf Registration
Statement:

 

(4)                                  Other
shares of common stock or other Securities of the Company owned by the Selling
Securityholder:

 22
 

 

 

Except as set forth below in this
Item (4), and under Item (3) above, the undersigned Selling Securityholder
is not the beneficial or registered owner of any shares of common stock or any
other securities of the Company.

State any exceptions
here:

(5)                  Relationships with the Company:

Except as set forth below,
neither the Selling Securityholder nor any of its affiliates, officers,
directors or principal equity holders (5% or more) has held any position or
office or has had any other material relationship with the Company (or its
predecessors or affiliates) during the past three years.

State any exceptions
here:

(6)                                  Additional
ownership information:

State the names of any
natural persons who exercise sole or shared voting or investment power over the
Notes or any other securities identified in Items (3) or (4) above that the
undersigned Selling Securityholder owns, specifying whether such powers are
sole or shared (See Rule 13d-3 under the Securities Exchange Act of 1934 for
guidance in making this determination):

 

State the name of the
general partner, if any, of the undersigned Selling Securityholder:

 

(7)                                  Broker-dealer
information:

State whether the
undersigned Selling Securityholder is a registered broker-dealer:

 

If affirmative, state
whether the Notes owned were received as compensation for investment banking
services or were purchased as investment securities:

 

(8)                                  Broker-dealer
affiliate information:

State whether the
undersigned Selling Securityholder is an affiliate of a registered
brokerdealer:

If affirmative, state
whether

 23
 

 

 

(a)                                  the
Notes were purchased in the ordinary course of business:

 

and

(b)                                 at
the time of the purchase of the Notes (including the shares of common stock
issuable upon conversion of the Notes) to be resold, the undersigned Selling
Securityholder had any agreements or understandings, directly or indirectly,
with any person to distribute the Notes (including the shares of common stock
issuable upon conversion of the Notes):

 

(9)                                  Short
sales and plan of distribution:

The Commission has
published the following guidance in connection with short sales (Telephone
Interp. A. 65 (July 1997)):

“An issuer filed a Form
S-3 registration statement for a secondary offering of common stock which is
not yet effective.  One of the selling
shareholders wanted to do a short sale of common stock “against the box” and
cover the short sale with registered shares after the effective date.  The issuer was advised that the short sale
could not be made before the registration statement becomes effective, because
the shares underlying the short sale are deemed to be sold at the time such
sale is made.  There would, therefore, be
a violation of Section 5 if the shares were effectively sold prior to the
effective date.”

The undersigned Selling
Securityholder represents and agrees that the distribution of Notes and shares
of common stock issuable upon conversion of the Notes pursuant to the Shelf
Registration Statement will conform with this interpretative guidance.

State whether the
undersigned Selling Securityholder has taken short positions in respect of
shares of the Company’s common stock after September [  ], 2006 and prior to _________, _____, and if
so, state the date(s) on which such short positions were taken and for each
date, the number of shares of common stock made subject to such short
positions.

The undersigned Selling
Securityholder represents and agrees that short positions taken prior to the
effective date of the Shelf Registration Statement will only be covered with
shares of the Company’s common stock purchased in the open market and will not
be covered with shares of the Company’s common stock obtained upon conversion
of the Notes.

(10)            Plan of Distribution:

Except as set forth below, the
undersigned Selling Securityholder intends to distribute the Registrable
Securities listed above in Item (3) only as follows (if at all):  Such Registrable Securities may be sold from
time to time directly by the undersigned

 24
 

 

 Selling Securityholder or, alternatively,
through underwriters, broker-dealers or agents. 
Such Registrable Securities may be sold in one or more transactions at
fixed prices, at prevailing market prices at the time of sale, at varying
prices determined at the time of sale, or at negotiated prices.  Such sales may be effected in transactions
(which may involve crosses or block transactions) (i) on any national
securities exchanges or U.S. inter-dealer quotation system of a registered
national securities association on which the Registrable Securities may be
listed or quoted at the time of sale, (ii) in the over-the-counter market,
(iii) in transactions otherwise than on such exchanges or services or in the
over-the-counter market, or (iv) through the writing of options.  In connection with sales of the Registrable
Securities or otherwise, the Selling Securityholder may enter into hedging
transactions with broker-dealers, which may in turn engage in short sales of
the Registrable Securities in the course of hedging the positions they
assume.  The Selling Securityholders may
also sell Registrable Securities short and deliver Registrable Securities to
close out such short positions, or loan or pledge Registrable Securities to
broker-dealers that in turn may sell such securities.

State
any exceptions here:

Note:  In
no event may such method(s) of distribution take the form of an underwritten
offering of the Registrable Securities without the prior agreement of the
Company.

The Company shall
promptly furnish to the Selling Securityholder copies of the Shelf Registration
Statement, including each amendment thereto, the Prospectus and any amendments
or supplements to the Prospectus, in each case promptly after filing with the
Commission.  The Selling Securityholder
agrees that the provisions of this paragraph shall apply in lieu of Section
3(b) of the Registration Rights Agreement.

By signing below, the Selling Securityholder
acknowledges that it understands its obligation to comply, and agrees that it
will comply, with the prospectus delivery and other provisions of the
Securities Act and the Exchange Act and the respective rules and regulations
thereunder, particularly Regulation M.

In the event that the Selling Securityholder
transfers all or any portion of the Registrable Securities listed in
Item (3) above after the date on which such information is provided to the
Company, the Selling Securityholder agrees to notify the transferee(s) at the
time of the transfer of its rights and obligations under this Notice and
Questionnaire and the Registration Rights Agreement.

By signing below, the Selling Securityholder
consents to the disclosure of the information contained herein in its answers
to Items (1) through (10) above and the inclusion of such information in the
Shelf Registration Statement and related Prospectus.  The Selling Securityholder understands that
such information will be relied upon by the Company in connection with the
preparation of the Shelf Registration Statement and related Prospectus.

In accordance with the Selling Securityholder’s
obligation under the Registration Rights Agreement to provide such information
as may be required by law for inclusion in the Shelf Registration Statement,
the Selling Securityholder agrees to promptly notify the Company of any
inaccuracies or changes in the information provided herein which may occur
subsequent to the date hereof at any time while the Shelf Registration
Statement remains in effect.  All

 25
 

 

notices
hereunder and pursuant to the Registration Rights Agreement shall be made in
writing, by hand-delivery, first-class mail, or air courier guaranteeing
overnight delivery as follows:

To the Company:

	
  

  	
   

  	
  priceline.com Incorporated

  
	
   

  	
   

  	
  800 Connecticut Avenue

  
	
   

  	
   

  	
  Norwalk, Connecticut 06854

  
	
   

  	
   

  	
  Attention: General Counsel

  
	
   

  	
   

  	
  Fax: (203) 299-8915

  
	
   

  	
   

  	
   

  

Once this Notice and Questionnaire is executed
by the Selling Securityholder and received by the Company, the terms of this
Notice and Questionnaire, and the representations and warranties contained herein,
shall be binding on, shall inure to the benefit of and shall be enforceable by
the respective successors, heirs, personal representatives, and assigns of the
Company and the Selling Securityholder with respect to the Registrable
Securities beneficially owned by such Selling Securityholder and listed in Item
(3) above.  This Agreement shall be
governed in all respects by the laws of the State of New York.

 

 26

 

 

IN WITNESS WHEREOF, the undersigned, by
authority duly given, has caused this Notice and Questionnaire to be executed
and delivered either in person or by its duly authorized agent.

	
  Dated:

  	
  

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Selling Securityholder

  
	
   

  	
  (Print/type full legal name of beneficial owner of
  Registrable Securities)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
					

PLEASE
RETURN THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE TO THE COMPANY AT:

priceline.com Incorporated

800 Connecticut Avenue

Norwalk, Connecticut 06854

Attention: General Counsel

Fax: (203) 299-8915

WITH A COPY TO:

Diane Heath, Esq.

Sullivan & Cromwell LLP

125 Broad Street

New York, New York 10004

Fax: (212) 558-3260

 

 27
 

 

 

Exhibit 1

to Appendix A

NOTICE
TO TRANSFER PURSUANT TO REGISTRATION STATEMENT

American Stock Transfer & Trust Company

59 Maiden Lane

New York, New York 10038

Attention: Herbert Lemmer

priceline.com Incorporated

800 Connecticut Avenue

Norwalk, Connecticut 06854

Attention: General Counsel

Re:             0.50%
Convertible Senior Notes due 2011 (the “2011 Notes”)

0.75% Convertible Senior Notes due 2013 (the “2013 Notes” and, together with
the 2011 Notes, the “Securities”) (the “Notes”)

    CUSIP # 741503AF3

                   741503AG1

Ladies
and Gentlemen:

Please
be advised that _____________________ has transferred $___________ aggregate
principal amount of the above-referenced Notes or shares of the Company’s
common stock, issued on conversion, repurchase or redemption of Notes, pursuant
to the Registration Statement on Form S-3 (File No. 333-____) filed by the
Company.

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

Dated:

	
   

  	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Name)

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  (Authorized Signature)

  

p

 28

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