Document:

Exhibit 10.2

 

 

PRICELINE.COM
INCORPORATED

 

ISSUER

 

 

AMERICAN STOCK TRANSFER &
TRUST COMPANY, LLC

 

TRUSTEE

 

 

INDENTURE

 

Dated as of March 10,
2010

 

 

1.25% CONVERTIBLE SENIOR
NOTES DUE 2015

 

 

 

TABLE OF CONTENTS

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE I DEFINITIONS AND OTHER PROVISIONS OF GENERAL
  APPLICATION

  	
  6

  
	
   

  	
   

  
	
  Section 1.1
  Definitions

  	
  6

  
	
  Section 1.2
  Compliance Certificates and Opinions

  	
  17

  
	
  Section 1.3
  Form of Documents Delivered to the Trustee

  	
  18

  
	
  Section 1.4
  Acts of Holders of Securities

  	
  18

  
	
  Section 1.5
  Notices, Etc. to the Trustee and Company

  	
  20

  
	
  Section 1.6
  Notice to Holders of Securities; Waiver

  	
  21

  
	
  Section 1.7
  Effect of Headings and Table of Contents

  	
  21

  
	
  Section 1.8
  Successors and Assigns

  	
  22

  
	
  Section 1.9
  Separability Clause

  	
  22

  
	
  Section 1.10
  Benefits of Indenture

  	
  22

  
	
  Section 1.11
  Governing Law

  	
  22

  
	
  Section 1.12
  Legal Holidays

  	
  22

  
	
  Section 1.13
  Conflict With Trust Indenture Act

  	
  22

  
	
   

  	
   

  
	
  ARTICLE II SECURITY FORMS

  	
  23

  
	
   

  	
   

  
	
  Section 2.1
  Form Generally

  	
  23

  
	
  Section 2.2
  Form of Security

  	
  23

  
	
  Section 2.3
  Form of Certificate of Authentication

  	
  33

  
	
  Section 2.4
  Form of Notice of Conversion

  	
  33

  
	
  Section 2.5
  Form of Assignment

  	
  34

  
	
   

  	
   

  
	
  ARTICLE III THE SECURITIES

  	
  36

  
	
   

  	
   

  
	
  Section 3.1
  Title and Terms

  	
  36

  
	
  Section 3.2
  Denominations

  	
  36

  
	
  Section 3.3
  Execution, Authentication, Delivery and Dating

  	
  36

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

  	
  37

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

  	
  39

  
	
  Section 3.6
  Mutilated, Destroyed, Lost or Stolen Securities

  	
  42

  
	
  Section 3.7
  Payment of Interest; Interest Rights Preserved

  	
  43

  
	
  Section 3.8
  Persons Deemed Owners

  	
  44

  
	
  Section 3.9
  Cancellation

  	
  44

  
	
  Section 3.10
  Computation of Interest

  	
  44

  
	
  Section 3.11
  CUSIP Numbers

  	
  44

  
	
   

  	
   

  
	
  ARTICLE IV SATISFACTION AND
  DISCHARGE

  	
  45

  
	
   

  	
   

  
	
  Section 4.1
  Satisfaction and Discharge of Indenture

  	
  45

  

 

2

 

	
  Section 4.2
  Application of Trust Money

  	
  46

  
	
   

  	
   

  
	
  ARTICLE V REMEDIES

  	
  46

  
	
   

  	
   

  
	
  Section 5.1
  Events of Default

  	
  46

  
	
  Section 5.2
  Acceleration of Maturity; Rescission and Annulment

  	
  47

  
	
  Section 5.3
  Collection of Indebtedness and Suits for Enforcement by Trustee

  	
  48

  
	
  Section 5.4
  Trustee May File Proofs of Claim

  	
  49

  
	
  Section 5.5
  Trustee May Enforce Claims Without Possession of Securities

  	
  50

  
	
  Section 5.6
  Application of Money Collected

  	
  50

  
	
  Section 5.7
  Limitation on Suits

  	
  50

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

  	
  51

  
	
  Section 5.9
  Restoration of Rights and Remedies

  	
  51

  
	
  Section 5.10
  Rights and Remedies Cumulative

  	
  51

  
	
  Section 5.11
  Delay or Omission Not Waiver

  	
  51

  
	
  Section 5.12
  Control by Holders of Securities

  	
  52

  
	
  Section 5.13
  Waiver of Past Defaults

  	
  52

  
	
  Section 5.14
  Undertaking for Costs

  	
  52

  
	
  Section 5.15
  Waiver of Stay, Usury or Extension Laws

  	
  53

  
	
  Section 5.16
  Failure to Comply with Reporting Covenant

  	
  53

  
	
   

  	
   

  
	
  ARTICLE VI THE TRUSTEE

  	
  54

  
	
   

  	
   

  
	
  Section 6.1
  Certain Duties and Responsibilities

  	
  54

  
	
  Section 6.2
  Notice of Defaults

  	
  55

  
	
  Section 6.3
  Certain Rights of Trustee

  	
  55

  
	
  Section 6.4
  Not Responsible for Recitals or Issuance of Securities

  	
  56

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

  	
  56

  
	
  Section 6.6
  Money Held in Trust

  	
  57

  
	
  Section 6.7
  Compensation and Reimbursement

  	
  57

  
	
  Section 6.8
  Corporate Trustee Required; Eligibility

  	
  57

  
	
  Section 6.9
  Resignation and Removal; Appointment of Successor

  	
  58

  
	
  Section 6.10
  Acceptance of Appointment by Successor

  	
  59

  
	
  Section 6.11
  Merger, Conversion, Consolidation or Succession to Business

  	
  60

  
	
  Section 6.12
  Authenticating Agents

  	
  60

  
	
  Section 6.13
  Disqualification; Conflicting Interests

  	
  61

  
	
  Section 6.14
  Preferential Collection of Claims Against Company

  	
  61

  
	
   

  	
   

  
	
  ARTICLE VII CONSOLIDATION,
  MERGER, CONVEYANCE, TRANSFER OR LEASE

  	
  62

  
	
   

  	
   

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

  	
  62

  
	
  Section 7.2
  Successor Substituted

  	
  62

  
	
   

  	
   

  
	
  ARTICLE VIII SUPPLEMENTAL
  INDENTURES

  	
  63

  

 

3

 

	
  Section 8.1
  Supplemental Indentures Without Consent of Holders of Securities

  	
  63

  
	
  Section 8.2
  Supplemental Indentures with Consent of Holders of Securities

  	
  64

  
	
  Section 8.3
  Execution of Supplemental Indentures

  	
  65

  
	
  Section 8.4
  Effect of Supplemental Indentures

  	
  65

  
	
  Section 8.5
  Reference in Securities to Supplemental Indentures

  	
  65

  
	
  Section 8.6
  Notice of Supplemental Indentures

  	
  65

  
	
   

  	
   

  
	
  ARTICLE IX HOLDERS LISTS AND
  REPORTS BY TRUSTEE AND COMPANY

  	
  66

  
	
   

  	
   

  
	
  Section 9.1
  Company to Furnish Trustee Names and Addresses of Holders

  	
  66

  
	
  Section 9.2
  Preservation of Information

  	
  66

  
	
  Section 9.3
  Reports by Trustee

  	
  66

  
	
  Section 9.4
  Reports by Company

  	
  67

  
	
   

  	
   

  
	
  ARTICLE X COVENANTS

  	
  67

  
	
   

  	
   

  
	
  Section 10.1
  Payment of Principal and Interest

  	
  67

  
	
  Section 10.2
  Maintenance of Offices or Agencies

  	
  67

  
	
  Section 10.3
  Money for Security Payments to Be Held in Trust

  	
  68

  
	
  Section 10.4
  Existence

  	
  69

  
	
  Section 10.5
  Statement by Officers as to Default

  	
  69

  
	
  Section 10.6
  Delivery of Certain Information

  	
  70

  
	
  Section 10.7
  Resale of Certain Securities

  	
  70

  
	
  Section 10.8
  Additional Interest

  	
  70

  
	
  Section 10.9
  Waiver of Certain Covenants

  	
  71

  
	
  Section 10.10
  Special Interest and Reporting Additional Interest Notification

  	
  71

  
	
   

  	
   

  
	
  ARTICLE XI [Reserved]

  	
  72

  
	
   

  	
   

  
	
  ARTICLE XII CONVERSION OF
  SECURITIES

  	
  72

  
	
   

  	
   

  
	
  Section 12.1
  Conversion Privilege and Conversion Rate

  	
  72

  
	
  Section 12.2
  Exercise of Conversion Privilege

  	
  76

  
	
  Section 12.3
  Fractions of Shares

  	
  80

  
	
  Section 12.4
  Adjustment of Conversion Rate

  	
  80

  
	
  Section 12.5
  Notice of Adjustments of Conversion Rate

  	
  88

  
	
  Section 12.6
  Notice of Certain Corporate Actions

  	
  88

  
	
  Section 12.7
  Company to Reserve Common Stock

  	
  89

  
	
  Section 12.8
  Taxes on Conversions

  	
  89

  
	
  Section 12.9
  Certain Covenants

  	
  89

  
	
  Section 12.10
  Cancellation of Converted Securities

  	
  90

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

  	
  90

  
	
  Section 12.12
  Responsibility of Trustee for Conversion Provisions

  	
  91

  
	
   

  	
   

  
	
  ARTICLE XIII [Reserved]

  	
  92

  
	
   

  	
   

  
	
  ARTICLE XIV REPURCHASE OF
  SECURITIES

  	
  92

  

 

4

 

	
  Section 14.1 Right to Require Repurchase Upon a
  Designated Event

  	
  92

  

 

5

 

INDENTURE, dated as of March 10,
2010, 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, LLC, a New York limited liability corporation, as Trustee
hereunder (herein called the “Trustee”).

 

RECITALS OF THE COMPANY

 

The
Company has duly authorized the creation
of an issue of its 1.25% Convertible Senior Notes due 2015 (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

 

6

 

(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
Interest” means all amounts, if any, payable pursuant to Section 10.8.

 

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

 

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

 

“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.

 

“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,” means any day other than a Saturday, a Sunday or a day on which the
Federal Reserve Bank of New York is authorized or required by law or executive
order to close.

 

7

 

“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
Percentage” has the meaning specified in Section 12.2.

 

“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 Indenture 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.  Pursuant to Section 12.11, following a
Merger Event, references to Common Stock in this Indenture shall be deemed
references to Reference Property for purposes of determining the Conversion
Obligation.

 

“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, 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 Consideration” has the meaning
specified in Section 12.1.

 

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

 

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

 

8

 

“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.

 

“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,
1.25% Convertible Senior Notes due 2015)]).

 

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

 

“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 shall be conclusive absent manifest error.

 

“Daily
Settlement Amount” means, for each of the 20 Trading Days during the
Observation Period, (i) cash equal to the lesser of (x) $50 (which
constitutes the principal portion of a Security for such Trading Day) and (y) the
Daily Conversion Value relating to such day; plus (ii) if such Daily
Conversion Value exceeds $50, a number of shares of Common Stock (the “Deliverable
Shares”) 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 VWAP” for the Common Stock 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.UQ <equity> AQR (or any successor page)
in respect of the period from the scheduled open of trading until the scheduled
close of trading of the primary trading session on such Trading Day (or if such
volume-weighted average price is unavailable, the market value of one share of
Common Stock on such Trading Day determined, using a volume-weighted average
method, by a nationally recognized independent investment banking firm retained
for this purpose).  The Daily VWAP shall
be determined without regard to after hours trading or any other trading
outside of the regular trading session trading hours.

 

“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.

 

9

 

“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.

 

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

 

“Ex-Date” means, 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.

 

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

 

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

 

(1)                                  any Person
(including any syndicate or group deemed to be a “person” under Section 13(d)(3) of
the Exchange Act) 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,

 

10

 

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
(other than a conveyance, sale, transfer or lease of all or substantially all
of the Company’s assets);

 

(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.

 

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

 

“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
Purchasers” means J.P. Morgan Securities Inc., Merrill Lynch, Pierce,
Fenner & Smith Incorporated, Morgan Stanley & Co.
Incorporated, Citigroup Global Markets Inc., RBS Securities Inc. and Wells
Fargo Securities, LLC.

 

“Initial
Securities” means the first $575,000,000 aggregate principal amount of
Securities issued under this Indenture on the date hereof.  The Initial Securities and the Additional
Securities shall be treated as a single class for all purposes under this
Indenture, and unless the context otherwise requires, all references to the
Securities shall include the Initial Securities and any Additional Securities.

 

“Interest
Payment Date” has the meaning set forth in the form of Security set forth
in Section 2.2.

 

“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

 

11

 

average of the bid and ask
prices or, if more than one in either case, the average of the average bid and
the average ask prices) on such date as reported by The NASDAQ Global Select
Market, or if the Common Stock or such other security is not then traded on The
NASDAQ Global Select Market, on the principal U.S. national or regional
securities exchange or automated quotation service on which the Common Stock or
such other security 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 or automated quotation service and not reported by
The NASDAQ Global Select 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 Pink OTC Markets Inc. or a 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 ask 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 shall be conclusive absent manifest error.

 

“Market Disruption Event” means, for the
purposes of determining amounts due upon conversion, (i) a failure by the
primary United States national or regional securities exchange or market on
which the Common Stock is listed or admitted for trading to open for trading
during its regular trading session or (ii) the occurrence or existence
prior to 1:00 p.m., New York City time, on any Scheduled Trading Day for
the Common Stock for more than one half-hour period in the aggregate during
regular trading hours of any suspension or limitation imposed on trading (by
reason of movements in price exceeding limits permitted by the relevant stock
exchange or otherwise) in the Common Stock or in any options, contracts or
future contracts relating to the Common Stock.

 

“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, with respect to any Security surrendered for conversion, (i) if
the relevant Conversion Date occurs prior to December 15, 2014, the 20
consecutive Trading Day period beginning on and including the third Trading Day
after such Conversion Date; and (ii) if the relevant Conversion Date
occurs on or after December 15, 2014, the 20 consecutive Trading Days
beginning on and including the 22nd Scheduled Trading Day immediately preceding
March 15, 2015.

 

12

 

“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 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.

 

13

 

“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.

 

“Purchase
Agreement” means the Purchase Agreement, dated as of March 4, 2010,
among the Company and J.P. Morgan Securities Inc. and Merrill Lynch, Pierce,
Fenner & Smith Incorporated, as representatives of the Initial
Purchasers.

 

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

 

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

 

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

 

“Regular
Record Date” for interest payable in respect of any Security on any
Interest Payment Date means the close of business on September 1 or March 1
(whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date.

 

“Reporting
Additional Interest” has the meaning Specified in Section 5.16.

 

“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.

 

14

 

“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.

 

“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.

 

“Scheduled
Trading Day” means (i) a day that is scheduled to be a Trading Day on
the primary United States national securities exchange or market on which the
Common Stock is listed or admitted for trading or (ii) if the Common Stock
is not so listed or admitted for trading, “Scheduled Trading Day” shall mean a
Business Day.

 

“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.

 

“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 Additional Interest and Reporting Additional Interest,
if any, payable under the terms of the Securities.  Unless the context otherwise requires, all
references to Interest in this Indenture shall include Special Interest.

 

15

 

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

 

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

 

“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 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.

 

“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 not listed for
trading on a U.S. national securities exchange.

 

“Trading Day” means a day during which
trading in securities generally occurs on The NASDAQ Global Select Market or,
if the Common Stock is not then quoted on The NASDAQ Global Select Market, on
the principal other 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 Global Select 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; and, for the purposes of determining
amounts due upon conversion only, a day on which there is no Market

 

16

 

Disruption Event.  If the Common Stock (or other security for
which a Daily VWAP must be determined) is not so listed or traded, “Trading Day”
means a Business Day.

 

“Trading Price” of the Securities, on any
date of determination, means the average of the secondary market bid quotations
obtained by the Trustee for $2.0 million principal amount of the
Securities at approximately 3:30 p.m., New York City time, on such
determination date from three independent nationally recognized securities
dealers selected by the Company; provided that
if three such bids cannot reasonably be obtained by the Trustee, but two such
bids are obtained, then the average of the two bids shall be used, and if only
one such bid can reasonably be obtained by the Trustee, that one bid shall be
used. If the Trustee cannot reasonably obtain at least one bid for $2.0 million
principal amount of the Securities from a nationally recognized securities
dealer, then the Trading Price per $1,000 principal amount of the Securities
shall be deemed to be less than 98% of 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 shall be conclusive
absent manifest error.

 

“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).

 

“valuation
period” has the meaning specified in Section 12.4.

 

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.

 

17

 

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

 

(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

 

18

 

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 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.

 

19

 

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; 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,

 

20

 

(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, 1.25% Convertible Senior Notes due 2015].

 

(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.

 

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.

 

21

 

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.

 

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 at any time after this Indenture has been qualified thereunder, if
any, the latter provision shall control. If any provision of

 

22

 

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.

 

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 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.”

 

Section 2.2                                                              Form of Security

 

[FORM OF FACE
OF NOTE]

 

23

 

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

 

THIS
SECURITY AND THE COMMON STOCK, IF ANY, ISSUABLE UPON 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 OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH THE FOLLOWING SENTENCE.  BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL
INTEREST HEREIN, THE ACQUIRER:

 

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

 

(2)                                 AGREES FOR THE BENEFIT OF THE COMPANY
THAT IT WILL NOT OFFER, SELL, PLEDGE OR OTHERWISE TRANSFER THIS SECURITY OR ANY
BENEFICIAL INTEREST HEREIN PRIOR TO THE DATE THAT IS THE LATER OF (X) ONE
YEAR AFTER THE LAST ORIGINAL ISSUE DATE HEREOF OR SUCH SHORTER PERIOD OF TIME
AS PERMITTED BY RULE 144 UNDER THE SECURITIES ACT OR ANY SUCCESSOR PROVISION
THERETO AND (Y) SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED BY
APPLICABLE LAW, EXCEPT:

 

(A)                               TO PRICELINE.COM INCORPORATED (THE “COMPANY”)
OR ANY SUBSIDIARY THEREOF, OR

 

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

 

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

 

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

 

PRIOR TO THE REGISTRATION OF ANY TRANSFER IN
ACCORDANCE WITH (2)(D) ABOVE, THE COMPANY AND THE TRUSTEE RESERVE THE
RIGHT TO REQUIRE THE DELIVERY OF SUCH LEGAL OPINIONS, CERTIFICATIONS OR OTHER
EVIDENCE AS MAY REASONABLY BE REQUIRED IN ORDER TO DETERMINE THAT THE
PROPOSED TRANSFER IS BEING MADE IN COMPLIANCE WITH THE

 

24

 

SECURITIES ACT AND APPLICABLE STATE SECURITIES
LAWS.  NO REPRESENTATION IS MADE AS TO
THE AVAILABILITY OF ANY EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT.

 

DURING THE PERIOD ENDING ONE YEAR AFTER THE LAST
DATE OF ORIGINAL ISSUANCE OF THE NOTES, NO “AFFILIATE” (AS DEFINED IN RULE 144)
WILL BE PERMITTED TO RESELL ANY OF THE NOTES THAT CONSTITUTE “RESTRICTED
SECURITIES” UNDER RULE 144 THAT HAVE BEEN REACQUIRED BY ANY OF THEM.

 

[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.

 

25

 

PRICELINE.COM
INCORPORATED

1.25% Convertible Senior Notes due 2015

 

	
  No.

  	
  $                  

  

 

CUSIP
No.        [   ]

 

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 March 15,
2015, and to pay interest thereon, from
                ,
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 15
and September 15 in each year (each, an “Interest Payment Date”),
commencing
                ,
at the rate of 1.25% 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 shall, 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 1 or September 1 (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 shall 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. $1,000,000 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

 

26

 

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 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. $1,000,000 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]

 

27

 

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,
  LLC

  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  
									

 

28

 

[FORM OF
REVERSE OF NOTE]

 

PRICELINE.COM
INCORPORATED 

1.25% Convertible Senior Notes due 2015

 

This Security is one of a
duly authorized issue of securities of the Company designated as its “1.25%
Convertible Senior Notes due 2015” (herein called the “Securities”)
issued and to be issued under an Indenture, dated as of March 10, 2010
(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, LLC, 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 shall 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

 

29

 

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 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 December 15,
2014, 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 3.2997 shares for
each $1,000 principal amount of Securities. No fractional shares of Common
Stock shall be issued upon any conversion, but an adjustment in cash shall 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

 

30

 

authorized denominations
for an equal aggregate principal amount shall 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.

 

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).

 

31

 

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):

  	
   

  	
   

  

 

32

 

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.

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AMERICAN STOCK
  TRANSFER &

  TRUST COMPANY, LLC

  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 cash and shares of Common Stock, if any,
in accordance with the terms of the Indenture referred to in this Security, and
directs that such cash and 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:

  	
   

  

 

33

 

	
   

  	
   

  
	
  (Name)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Address)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  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)

  
							

 

34

 

	
   

  	
  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

  	
   

  

 

35

 

ARTICLE III

THE SECURITIES

 

Section 3.1                                                              Title and Terms

 

The
Securities shall be known and designated as the “1.25% Convertible Senior Notes
due 2015” of the Company.  Their Stated
Maturity shall be March 15, 2015, unless earlier converted or repurchased,
and they shall bear interest on their principal amount from March 10,
2010, payable semi-annually in arrears on September 15 and March 15
in each year, commencing September 15, 2010, at the rate of 1.25% 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 are entitled to the payment of Additional Interest as provided by Section 10.8
and Reporting Additional Interested as provided by Section 5.16.

 

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.

 

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 or one of its Executive Vice
Presidents, and attested by its Chief Financial Officer, Chief Operating
Officer, Controller or Secretary.  Any
such signature may be manual or facsimile.

 

36

 

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 Securities, 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
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 shall execute, and the Trustee, upon receipt of an Officers’
Certificate directing the authentication and delivery of Securities, shall
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.

 

37

 

(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 this 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
shall 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 shall 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.

 

38

 

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 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).

 

39

 

(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 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:

 

40

 

(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, 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 evidence
satisfactory to the Trustee that such securities may be safely transferred
without registration under the Securities Act, and after such date and receipt
of such evidence, 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;

 

(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 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; and

 

(G)           as set forth in Section 10.8.

 

(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

 

41

 

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 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.

 

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.

 

42

 

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 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).

 

43

 

(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 after
5:00 p.m., New York City time, 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.

 

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

 

44

 

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 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) have
become due and payable,

 

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 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, together with an amount of shares of Common Stock to satisfy any conversions;

 

(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.

 

45

 

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 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 and
shares of Common Stock deposited with the Trustee pursuant to Section 4.1
shall be held in trust for the sole benefit of the Holders, and such monies and
shares shall be applied by the Trustee, in accordance with the provisions of
the Securities and this Indenture, delivered, either directly or through any
Paying Agent (including the Company acting as its own Paying Agent), to the
Persons entitled thereto.

 

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 Securities (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):

 

(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

 

46

 

(5)                                  failure by the
Company to issue a Designated Event Company Notice or notice required under Section 12.1(b),
(c) or (d) 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
Outstanding Securities or this Indenture after written notice of such default
from the Trustee or the Holders of at least 25% in principal amount of the
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; or

 

(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, 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
Outstanding Securities may declare the principal of and accrued and unpaid
interest on all Securities 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, 

 

47

 

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 and the principal of any and all Securities 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, 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 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:

 

(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 shall, 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.

 

48

 

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

 

(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; 

 

49

 

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.

 

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;

 

50

 

(3)                                  such Holder or Holders have offered the
Trustee security or indemnity reasonably satisfactory to it against any loss,
liability or expense;

 

(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.

 

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 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 

 

51

 

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 or
that would involve in the Trustee in personal liability.

 

Section 5.13                                                        Waiver of Past Defaults

 

The Holders of a majority in principal amount of the Outstanding Securities
may on behalf of the Holders of the Securities waive any past default
hereunder, except a default with respect to nonpayment of principal or
interest, and rescind any such acceleration hereunder with respect to the Securities
and its consequences if (A) rescission would not conflict with any
judgment or decree of a court of competent jurisdiction and (B) all
existing Events of Default, other than the nonpayment of the principal of and
interest on the Securities that have become due solely by such declaration of
acceleration, have been cured or waived.

 

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 

 

52

 

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, 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 shall 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 shall not hinder, delay or impede by reason of such
law the execution of any power herein granted to the Trustee, but shall suffer
and permit the execution of every such power as though no such law had been
enacted.

 

Section 5.16                                                        Failure to Comply with Reporting Covenant

 

Notwithstanding
Section 5.1, to the extent the Company elects, the sole remedy for an
Event of Default relating to (i) the Company’s failure to file with the
Trustee pursuant to Section 314(a)(1) of the Trust Indenture Act any documents
or reports that the Company is required to file with the SEC pursuant to Section 13
or 15(d) of the Exchange Act, if applicable, or (ii) the Company’s
failure to comply with Sections 9.4 or 10.6, shall after the occurrence of such
an Event of Default consist exclusively of the right to receive additional
interest (“Reporting Additional Interest”) on the Securities at a rate
equal to 0.25% per annum of the principal amount of the Outstanding Securities
for each day during the 270-day period beginning on, and including, the
occurrence of such an Event of Default during which such Event of Default is
continuing (in addition to any Additional Interest that may accrue under Section 10.8
hereof).

 

If the
Company so elects, such Reporting Additional Interest shall be payable in the
same manner and on the same Interest Payment Dates as the stated interest
payable on the Securities and shall be in additional to any Additional
Interest. On the 271st day after such Event of Default (if the Event of Default
relating to the reporting obligations is not cured or waived prior to such
271st day), the Securities shall be subject to acceleration as provided above.
The provisions of this paragraph shall not affect the rights of Holders of the
Securities in the event of the occurrence of any other Event of Default. In the
event the Company does not elect to pay the Reporting Additional Interest
following an Event of Default in accordance with this Section, the Securities
shall be subject to acceleration as provided in Section 5.2 hereof.

 

In
order for the Company to elect to pay the Reporting Additional Interest as the
sole remedy during the first 270 days after the occurrence of an Event of
Default relating to the failure of the Company to comply with the reporting
obligations under Section 5.13 and Section 9.14 hereof, the Company
shall notify all Holders of Securities, the Trustee and the Paying Agent of
such election 

 

53

 

prior to the beginning of such 270-day period. Upon
the Company’s failure to timely give such notice, the Securities shall be
immediately subject to acceleration as provided in Section 5.2 hereof.

 

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 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 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

 

54

 

(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 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;

 

55

 

(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

 

(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.

 

56

 

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

 

(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 

 

57

 

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.

 

(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,

 

58

 

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.

 

(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.

 

59

 

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 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 

 

60

 

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.

 

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,
  LLC

  
	
   

  	
  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).

 

61

 

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 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, 

 

62

 

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, omission, defect
or inconsistency; or

 

(2)                                  to provide for the assumption by a
successor corporation, partnership, trust or limited liability company of the
Company’s obligations under the Indenture; or

 

(3)                                  to provide for
uncertificated Securities 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
for the benefit of the Holders of Securities or to surrender any right or power
herein conferred upon the Company; or

 

(7)                                  to make any change that does not
adversely affect the rights of any Holder in any material respect; or

 

(8)                                  to comply with any requirement of the SEC
in connection with any qualification of this Indenture under the Trust
Indenture Act; or

 

(9)                                  to conform the provisions of this
Indenture to the caption “Description of notes” in the Company’s offering
memorandum, dated March 4, 2010; 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

 

63

 

(12)                            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 14.1.

 

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.

 

Section 8.2                                                              Supplemental Indentures with Consent of
Holders of Securities

 

With
the written consent of the Holders of at least a majority in principal amount
of the Outstanding Securities, including without limitation, consents obtained
in connection with a connection with a purchase of, or tender offer or exchange
offer for, Securities, 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 under this Indenture; provided, however,
that no such supplemental indenture shall, without the consent of each Holder
of each Outstanding Security affected thereby:

 

(1)                                  reduce the amount of Securities whose
Holders 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 therefore 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.

 

64

 

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.

 

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.

 

65

 

ARTICLE IX

HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY

 

Section 9.1                     Company to Furnish Trustee Names and
Addresses of Holders

 

The
Company shall 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.

 

66

 

(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 stock exchange upon
which the Securities are listed, with the SEC and with the Company. The Company
shall 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 shall 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
shall 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 shall 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 shall 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, 

 

67

 

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 have been
made available for payment and either paid or returned to the Company pursuant
to the provisions of Section 10.3, the Company shall 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 shall 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: Corporate Trust Administration (priceline.com Incorporated 1.25%
Convertible Senior Notes due 2015)], 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 shall, 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 shall promptly notify the Trustee of its action
or failure so to act.

 

Whenever
the Company shall have one or more Paying Agents, it shall, 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 shall
promptly notify the Trustee of any failure so to act.

 

The
Company shall 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 shall:

 

(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

 

68

 

(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 shall 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 shall deliver to the Trustee, forthwith upon becoming aware of any
default or any Event of Default under this 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.

 

69

 

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

 

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, the Company shall promptly furnish or cause to be furnished Rule 144A
Information (as defined below) to Holders of Securities or such holder of
shares of Common Stock issued upon conversion of Securities which continue to
be Restricted Securities, and to securities analysts and prospective investors,
upon their request. “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 ending one year after the last date of original issuance of the
Securities, the Company shall not, and shall not permit any of its “affiliates”
(as defined in Rule 144) to, resell any of the Securities that constitute “restricted
securities” under Rule 144 that 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                   Additional Interest

 

If, at
any time during the six-month period beginning on, and including, the date
which is six months after the last date of any original issuance of the
Securities, the Company fails to timely file any document or report that the
Company is required to file with the SEC pursuant to Section 13 or 15(d) of
the Exchange Act, as applicable (after giving effect to all applicable grace
periods thereunder and other than reports on Form 8-K), or the Securities
are not otherwise freely tradable by Holders other than the Company’s
Affiliates (as a result of restrictions pursuant to U.S. securities law or the
terms of this Indenture or the Securities), the Company shall pay Additional
Interest on the Securities.  Additional
Interest shall accrue on the Securities at the rate of 0.25% per annum of the
principal amount of Securities outstanding for the first 90 days during such
period for which the Company’s failure to file has occurred and is continuing
and 0.50% per annum of the principal amount of Securities outstanding
thereafter during such period for which the Company’s failure to file has
occurred and is continuing.

 

If,
and for so long as, the Restricted Securities Legend on the Securities has not
been removed or the Securities are not otherwise freely tradable by Holders
other than the Company’s affiliates (without restrictions pursuant to U.S.
securities law or the terms of this Indenture or the Securities) as of the
365th day after the last date of original issuance of the Securities, the
Company shall pay Additional Interest on the Securities at a rate equal to
0.25% per annum of the principal amount of Securities outstanding for the first
90 days, increasing to 0.50% per annum of the principal amount of Securities
outstanding thereafter until the Securities are freely tradable.

 

70

 

Until
such time as the Company notifies the Trustee to remove the Restricted
Securities Legend from the Securities, the restricted CUSIP shall be the CUSIP
number for the Securities.  At such time
as the Company notifies the Trustee to remove the Restricted Securities Legend
from the Securities, such legend shall be deemed removed from any Global Note
and an unrestricted CUSIP number for the Securities shall be deemed to be the
CUSIP number for the Securities.

 

Additional
Interest shall be payable in arrears on each Interest Payment Date following
accrual in the same manner as the stated interest payable on the Securities and
shall be in addition to any Reporting Additional Interest that may accrue.

 

Section 10.9                   Waiver of Certain Covenants

 

The
Company may omit, with respect to the Securities, 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, 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.

 

Section 10.10                 Special Interest and Reporting Additional Interest
Notification

 

In order for the Company to elect to pay the
Reporting Additional Interest as the sole remedy during the first 270 days
after the occurrence of an Event of Default relating to the failure of the
Company to comply with the reporting obligations under Section 5.13 and Section 9.14
hereof, the Company shall notify all Holders of Securities, the Trustee and the
Paying Agent of such election prior to the beginning of such 270-day period.
Upon the Company’s failure to timely give such notice, the Securities shall be
immediately subject to acceleration as provided in Section 5.2 hereof.

 

If
Special Interest is payable on the Securities, the Company shall deliver to the
Trustee an Officers’ 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.

 

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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 clauses (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 Holder’s Securities at any time prior to the
close of business on the Scheduled Trading Day immediately preceding December 15,
2014 at a rate (the “Conversion Rate”)
of 3.2997 shares of Common Stock (subject to adjustment by the Company as provided
in Section 12.4) per $1,000 principal amount of the Security (the “Conversion Obligation”). On and
after December 15, 2014, regardless of the conditions described in clauses
(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 the applicable
Conversion Rate at any time prior to the close of business on the Scheduled
Trading Day immediately preceding the Stated Maturity.

 

(1)           Prior
to December 15, 2014, the Securities shall be convertible 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 Securities for each
day of such Measurement Period was less than 98% of the product of (a) the
applicable Conversion Rate on each such day the (b) Last Reported Sale Price
of the Common Stock 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 per $1,000 in principal amount of
the Securities would be less than 98% of the product of (a) the applicable
Conversion Rate of the Securities and (b) the Last Reported Sale Price of
the Common Stock at such time, at which time the Company shall instruct the
Trustee to determine the Trading Price of the Securities beginning on the next
Trading Day and on each successive Trading Day until the Trading Price per
$1,000 in principal amount of the Securities is greater than or equal to 98% of
the product of (a) the applicable Conversion Rate of the Securities and (b) the
Last Reported Sale Price of the Common Stock on such date. If the Company does
not instruct the Trustee to obtain bids when required, the Trading Day Price
per $1,000 in principal amount of Securities shall be determined to be less
than 98% of the product of (a) the applicable Conversion Rate of the
Securities and (b) the Last Reported Sale Price of the Common Stock on
each day the Company fails to instruct the Trustee.  If the Trading Price condition set forth above has
been met, the Company shall so notify the Holders of the 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 

 

72

 

Securities is
greater than 98% of the product of (a) the applicable Conversion Rate of
the Securities and (b) the Last Reported Sale Price of the Common Stock on
such date, the Company shall so notify the Holders of the Securities, and the
Trustee shall have no further obligation to determine the Trading Price of the
Securities unless requested by the Company to do so again in writing pursuant
to this Section.

 

(2)           Prior to December 15, 2014, the Securities
shall be convertible during any calendar quarter after the calendar quarter
ending June 30, 2010 (and only during such quarter) if the Last Reported
Sale Price of the Common Stock for twenty (20) or more Trading Days
(whether or not consecutive) in a period of thirty (30) consecutive
Trading Days ending on the last Trading Day of the immediately preceding
calendar quarter exceeds 150% of the applicable Conversion Price for the Securities
in effect on the last Trading Day of the immediately preceding calendar
quarter.

 

(3)           The Securities shall be convertible prior to December 15,
2014 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 any rights or warrants 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 date of announcement of
such distribution; or

 

(2)           distribute to all or substantially all Holders of
Common Stock, assets (including cash) 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 announcement of such distribution,

 

then, the Company
shall notify Holders of the Securities at least 25 Scheduled Trading Days prior
to the Ex-Date for such distribution. Upon such notice, Holders may surrender
the Securities for conversion at any time until the earlier of 5:00 p.m.,
New York City time, on the Business Day immediately prior to the Ex-Date for
such distribution or the date the Company announces that such distribution will
not take place, even if the Securities are not otherwise convertible at such
time.  Holders may not exercise such
right if they are permitted to participate in such distribution, at the same
time and upon the same terms as Holders of the Common Stock and solely as a
result of holding the Securities, without having to convert such Securities as
if such Holders held a number of shares of Common Stock equal to the applicable
Conversion Rate, multiplied by the principal
amount (expressed in thousands) of Securities held by such Holder.

 

(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 that does not
constitute a Designated 

 

73

 

Event, then the Holders
shall have the right to convert Securities at any time beginning 25 Scheduled
Trading 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 15th
calendar day after the date that is the Effective Date of such transaction. The
Company shall notify Holders at least 25 Scheduled Trading Days prior to the
anticipated Effective Date of such transaction. The Board of Directors shall
determine the 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 25th Scheduled Trading Day prior
to the anticipated effective date of such transaction or event until the
related Designated Event Repurchase Date corresponding to such Designated Event
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.  The Company shall notify Holders at least 25
Scheduled Trading Days prior to the anticipated effective date of such
transaction.

 

(e)           (1) If a Holder elects to convert Securities at
any time on or after the 30th Scheduled Trading Day prior to the anticipated
Effective Date of a Fundamental Change, until the related Designated Event
Repurchase Date, 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 in clauses (2) and (3) below; provided, however, that
no such increase shall be made in the case of a Fundamental Change if at least
90% of the consideration paid for the 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 a U.S. national securities exchange or an established automated
over-the-counter trading market in the United States (or that shall 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 notify Holders of the occurrence of
any such Fundamental Change and issue a press release no later than 30
Scheduled Trading Days prior to the anticipated Effective Date of such
transaction. 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 shall be increased shall be determined by reference to the
table attached as Schedule A hereto, based on the date on which the
Fundamental Change occurs or becomes effective (the “Effective Date”), and the Stock 

 

74

 

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 $800.00 per share of Common
Stock (subject to adjustment in the same manner as set forth in Section 12.4),
no Additional Shares shall be added to the Conversion Rate, and (2) the
Stock Price is less than $233.12 per share (subject to adjustment in the same
manner as set forth in Section 12.4), no Additional Shares shall be added
to the Conversion Rate. Notwithstanding the foregoing, in no event shall the
total number of shares of Common Stock issuable upon conversion exceed 4.2896
per $1,000 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
table 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 in Schedule A 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)            If
a Holder shall surrender a Security for conversion, the Company may direct the
Conversion Agent to surrender, on or prior to the commencement of the
Observation Period, such Securities to a financial institution designated by
the Company for transfer in lieu of conversion. In order to accept any
Securities surrendered for conversion, the designated institution must agree to
deliver, in exchange for such Securities, all cash and shares of the Common
Stock equal to the consideration due under this Section (the “Conversion
Consideration”). By the close of business on the Trading Day immediately
preceding the start of the applicable Observation Period, the Company shall
notify the Holder surrendering Securities for conversion that the Company has
directed the designated financial institution to accept the Securities in lieu
of conversion and such financial institution will be required to notify the
Conversion Agent that it has agreed to deliver the Conversion Consideration, if
any, due upon such conversion.

 

If the
designated institution accepts any such Securities, it shall deliver the
Conversion Consideration to the Conversion Agent and the Conversion Agent shall
deliver such Conversion Consideration to the Holder in lieu of actual
conversion. Any Securities accepted by the designated institution shall remain
outstanding. If the designated institution agrees to accept any notes but does
not timely deliver the related Conversion Consideration, or if such designated
financial institution does not accept the Securities, the Company shall, on the
third Trading Day immediately following the last day of the related Observation
Period, convert the Securities into the Conversion Consideration pursuant to
this Section.

 

75

 

Section 12.2                   Exercise of Conversion Privilege

 

(a)           (1)           Subject to subsection (b) of this Section, the
Company shall 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 Business Day
immediately following the last day Trading 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 shall 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.  Each conversion shall be deemed to have been
effected as to any Securities surrendered for conversion on the Conversion
Date; provided, however,
that the Person in whose name any shares of the Common Stock shall be issuable
upon such conversion shall become the holder of record of such shares as of the
close of business on the last Trading Day of the relevant Observation Period.

 

(2)           The Company may elect to pay cash to Holders of
Securities surrendered for conversion in lieu of all or a portion of the
Deliverable Shares issuable upon conversion of the Securities in satisfaction
of the Conversion Obligation.  If the
Company elects to pay cash in lieu of delivering the Deliverable Shares, the
Company shall notify, in the manner provided for in Section 1.6, the
Holder tendering a Notice of Conversion of the percentage of Deliverable Shares
that shall be paid in cash in lieu of shares of Common Stock (the “Cash
Percentage”).  In the event the
Company elects to settle in cash all or any portion of the Deliverable Shares
in connection with conversions of Securities on or after December 15,
2014, the Company shall send, on or prior to the 25th Scheduled Trading Day
prior to the Maturity Date, a single notice for all such conversions to the
Trustee with respect to the Cash Percentage for all conversions during such
period and shall issue a press release with the same information. The amount of
cash payable in respect of the Deliverable Shares otherwise issuable upon
conversion of Securities shall equal the sum of the Elected Cash Values for
Deliverable Shares for each Trading Day of the applicable Observation
Period.  The “Elected Cash Value”
of a Deliverable Share for a Trading Day shall be the product of (A) the percentage
of Deliverable Shares otherwise issuable upon conversion which the Company
elects to pay in cash and (B) the difference between the Daily Conversion
Value for such Trading Day and $50.  The
remainder of the Deliverable Shares shall be paid in shares of Common Stock.

 

(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.

 

76

 

(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 shall
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
then in effect, but without regard to the number of Additional Shares to be
added to the Conversion Rate pursuant to Section 12.1(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 shall 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 Observation Period). If such increased amount of cash and shares,
results in an increase to the amount of cash to be paid to Holders, the Company
shall pay such increase in cash, and if such increased settlement amount
results in an increase to the number of shares of Common Stock, the Company
shall 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 shall 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.

 

Notwithstanding Section 12.2(a) and
clauses (1) or (2) of this Section 12.2(b), if the consideration
for the Common Stock in any Fundamental Change described in clause (2) of
the definition thereof is comprised entirely of cash, for any conversion of Securities
following the effective date of such Fundamental Change, the Conversion
Obligation will be calculated based solely on the stock price for the
transaction and will be deemed to be an amount equal to the applicable
Conversion Rate (including any adjustment described under Section 12.1(e),
multiplied by such stock price.  In such
event, the Conversion Obligation will be determined and paid to Holders in cash
on the third Business Day following the Conversion Date (notwithstanding Section 12.2(a)).

 

(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 Applicable Procedures 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 

 

77

 

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 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 documentary, stamp or
similar issue or transfer tax due, 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.

 

78

 

(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
shall 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, if Securities are converted after 5:00 p.m., New York City
time, on a Record Date, Holders of such Securities as of 5:00 p.m., New
York City time, on the Record Date shall receive the interest payable on such
Securities on the corresponding Interest Payment Date notwithstanding the
conversion. Securities surrendered for conversion during the period from 5:00 p.m.,
New York City time, on any Regular Record Date, to 9:00 a.m., New York
City time, on the immediately following 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 5:00 p.m.,
New York City time, after the Record Date immediately preceding Stated
Maturity. Except as described above, no payment or adjustment shall 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 

 

79

 

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 Daily VWAP
on the last Trading Day of the applicable Observation Period.

 

Section 12.4                   Adjustment of Conversion Rate.

 

The Conversion Rate shall be
adjusted from time to time by the Company as follows, except that the Company
will not make any adjustments to the Conversion Rate if Holders of the
Securities participate (other than in the case of a share split or share
combination), at the same time and upon the same terms as holders of the Common
Stock and solely as a result of Holding the notes, in any of the transactions
described below without having to convert their Securities as if they held a
number of shares of Common Stock equal to the applicable Conversion Rate, multiplied by the principal amount (expressed in thousands)
of Securities held by such Holder.

 

(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 share split or share
combination, the Conversion Rate shall be adjusted based on the following
formula:

 

 

where,

 

CR0 = the Conversion Rate in effect immediately
prior to the Ex-Date of such dividend or distribution, or immediately prior to
the effective date of such share split or combination, as applicable;

 

80

 

CR¢ = the
Conversion Rate in effect immediately after the Ex-Date of such dividend or
distribution or effective date or immediately after the effective date of such
share split or combination, as applicable;

 

OS0 = the number of shares of Common Stock
outstanding immediately prior to the open of business on such Ex-Date or
effective date; and

 

OS¢ = the number
of shares of Common Stock outstanding immediately after giving effect to such
dividend, distribution, share spit or share combination.

 

Any adjustment made under
this Section 12.4(a) shall become effective immediately after the
open of business on the Ex-Date for such dividend or distribution, or
immediately after the open of business on the effective date for such share
split or share combination. If any dividend or distribution of the type
described in this Section 12.4(a) is declared but not so paid or
made, or any share split or combination of the type described in this Section 12.4(a) is
announced but the outstanding shares of the Common Stock are not split 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 not to split or combine the outstanding
shares of the Common Stock, as the case may be, to the Conversion Rate that
would then be in effect if such dividend, distribution, share split or share
combination had not been declared or announced.

 

(b)           In case the Company shall issue to all or
substantially all Holders of its outstanding shares of Common Stock rights,
options or warrants entitling them (for a period of not more than sixty (60)
calendar days after the record date of the distribution) 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 Trading Day immediately preceding
the date of announcement of such issuance, the Conversion Rate shall be
adjusted based on the following formula; provided that the Conversion Rate
shall be readjusted to the extent that such rights or warrants are not
exercised prior to their expiration:

 

where,

 

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

 

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

 

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

 

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

 

Y = the number of shares of
Common Stock equal to the aggregate price payable to exercise such rights,
options or warrants divided by the average of the Last Reported Sale Prices of
Common 

 

81

 

Stock over the 10
consecutive Trading Day period ending on the Business Day immediately preceding
the date of announcement of such distribution of such rights or warrants.

 

Any adjustment made under
this Section 12.4(b) shall be successively made whenever any such
rights, options or warrants are issued and shall become effective immediately
after the open of business on the Ex-Date for such issuance. To the extent that
shares of Common Stock are not delivered after the expiration of such rights,
options or warrants, the Conversion Rate shall be decreased to the Conversion
Rate that would then be in effect had the increase with respect to the issuance
of such rights, options or warrants been made on the basis of delivery of only
the number of shares of Common Stock actually delivered.  If such rights, options or warrants are not
so issued, the Conversion Rate shall be decreased to be the Conversion Rate
that would then be in effect if such Ex-Date for such issuance had not
occurred.

 

In determining whether any
rights, options or warrants entitle the Holders to subscribe for or purchase
shares of Common Stock at less than such Last Reported Sale Prices for the 10
consecutive Trading Day period ending on the Trading Day immediately preceding
the Ex-Date of such issuance, 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, options 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 distribute to all or
substantially all Holders of the 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-Date for such distribution;

 

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

 

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-Date relating to such
distribution; and

 

82

 

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-Date relating to
such distribution.

 

Such
adjustment shall become effective immediately prior to the open of business 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 shall be increased based on
the following formula:

 

where,

 

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

 

CR¢ = the Conversion Rate in
effect immediately after the Ex-Date for 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

 

MP0 = the average
of the Last Reported Sale Prices of the Common Stock over the first 10
consecutive Trading Day period after the effective date of the Spin-Off (the “valuation
period”).

 

Such
adjustment shall occur on the 10th Trading Day from, and including, the
effective date of the Spin-Off; provided that
in respect of any conversion within the 10 Trading Days following 

 

83

 

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.  If one or
more Trading Days of any Observation Period occurs on or after the Ex-Date for
a Spin-Off but on or prior to the effective date for such Spin-Off, such Observation
Period shall be suspended on the first such Trading Day and shall resume on the
second Trading Day of the valuation period for such Spin-Off, with references
in the above definitions to 10 Trading Days deemed replaced with references to
one (1) Trading Day.

 

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 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 any cash dividend or
distribution 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-Date for such distribution;

 

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

 

SP0 = the Last Reported Sale Price
of Common Stock on the Trading Day immediately preceding the Ex-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 the close of business on the Stockholder
Record Date for such dividend or distribution; provided
that if the portion of the cash so 

 

84

 

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 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 (taken
together) 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

 

85

 

SP¢ = the average of the Last
Reported Sale Prices of Common Stock over the 10 consecutive Trading Day period
commencing on the Trading Day next succeeding the date such tender or exchange
offer expires.

 

Such adjustment shall occur at the close of business
on the 10th Trading Day
immediately following, and including, the Trading Day next succeeding the date
such tender or exchange offer expires; provided that
in respect of any conversion within the 10 Trading Days immediately following,
and including, the expiration date of any tender or exchange offer, references
with respect to 10 Trading Days shall be deemed replaced with such lesser
number of Trading Days as have elapsed between the expiration date of such
tender or exchange offer and the Conversion Date in determining the applicable
Conversion Rate. In addition, if the expiration date of such tender or exchange
offer occurs on any Trading Day of any Observation Period except the last
Trading Day of such Observation Period, such Observation Period shall be
suspended on the first Trading Day immediately following such expiration date
and shall resume on the second Trading Day immediately following such
expiration date, with references in the above definitions to 10 Trading Days
deemed replaced with references to one (1) Trading Day. 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.

 

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 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 of the Securities 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 shares of
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 shall
be in effect.

 

86

 

(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
Designated Event, Fundamental Change and upon each Trading Day during an
Observation Period in connection with any conversion of the Securities.

 

(i)            Notwithstanding Section 12.4(a), (b), (c), (d) or
(e), if a Conversion Rate adjustment becomes effective on any Ex-Date and a
Holder that has converted Securities on or after such Ex-Date and on or prior
to the related record date would be treated as the record holder of shares of
Common Stock as of the related Conversion Date based on an adjusted Conversion
Rate for such Ex-Date, then the Conversion Rate adjustment relating to such
Ex-Date will not be made for such converting Holder.  Instead, such Holder will be treated as if
such Holder were the record owner of the shares of the Common Stock on an
unadjusted basis and participate in the related dividend, distribution or other
event giving rise to such adjustment.

 

(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 shall not be entitled to an increased Conversion
Rate in connection with such conversion.

 

(l)            If
the application of Section 12.4(a), (b), (c), (d) or (e) (except
in the case of an adjustment made in connection with a share combination
pursuant to Section 12.4(a)) would result in a decrease in the Conversion
Rate, no adjustment to the Conversion Rate will be made.

 

(m)          To the extent that the Company has a rights plan in
effect at the time of conversion of Securities into Common Stock, the Holder
will receive, in addition to any Common Stock, the rights under the rights
plan, unless prior to any conversion, the rights have separated from the Common
Stock, in which case the Conversion Rate will be adjusted at the time of
separation as if the Company distributed to all holders of the Common Stock,
shares Capital Stock, evidences of indebtedness or assets as described in Section 12.4(c),
subject to readjustment in the event of the expiration, termination or
redemption of such rights.

 

87

 

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 Actions

 

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

 

(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 25 Scheduled Trading Days
prior to the applicable date specified in clause (x) or 

 

88

 

(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
shall 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.

 

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 shall 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 shall 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 shall in good faith and as expeditiously as
possible, to the extent then 

 

89

 

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 shall,
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 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 each case as a result of which Holders of outstanding Common Stock
shall be entitled to receive cash, securities or other property or assets (the “Reference
Property”) 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(12)
providing for the conversion and settlement of the Securities as set forth in
this Indenture. Such supplemental indenture shall provide for 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 

 

90

 

therefore,
the kind or amount of cash, securities or property or asset that shall
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 shall be
changed to a right to convert such Security by reference to the Reference
Property; provided, however,
upon conversion, a Holder shall 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) shall be
deemed to be the weighted average of the types and amounts of consideration
received by 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.

 

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 

 

91

 

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

[RESERVED]

 

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 of the principal
amount thereof that is equal to $1,000 or an integral multiple of $1,000, for
cash on the date (the “Designated
Event Repurchase Date”) specified by the Company that is not less
than twenty (20) calendar days and not more than thirty five
(35) calendar days after the date of the Designated Event Company Notice
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”); provided, however, that notwithstanding the foregoing, Holders shall
not have the right to require the Company to repurchase any Securities under
clauses (1) or (2) of the definition of Fundamental Change (and the Company
shall not be required to deliver the Designated Event Repurchase Notice
incidental thereto) if at least 90% of the consideration paid for the 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 such clause (2) 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 Global Select 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.

 

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

 

92

 

(ii)           delivery or book-entry transfer (in compliance with
Applicable Procedures) 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 this
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 occurrence 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:

 

93

 

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

 

(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 or the
Fundamental Change repurchase price, if applicable;

 

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

 

(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 this 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 in whole or in part 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.

 

94

 

(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 shall 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 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 shall 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 shall cease to be outstanding, (ii) interest shall cease to
accrue on such Securities, and (iii) all other rights of the Holders of
such Securities shall 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 or transfer 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.

 

95

 

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/ Daniel J. Finnegan

  
	
   

  	
  Name:

  	
  Daniel J. Finnegan

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  AMERICAN
  STOCK TRANSFER & TRUST COMPANY, LLC

  
	
   

  	
  as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Herbert J. Lemmer

  
	
   

  	
  Name:

  	
  Herbert J. Lemmer

  
	
   

  	
  Title:

  	
  Vice President

  

 

96Exhibit 10.1

 

CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS OF THIS
AGREEMENT, CONFIDENTIAL PORTIONS HAVE BEEN OMMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION.

 

PRICELINE.COM  INCORPORATED 1999 OMNIBUS PLAN

 

PERFORMANCE SHARE UNIT AGREEMENT

 

THIS PERFORMANCE SHARE UNIT AGREEMENT (“Agreement”) is
made as of the 4th day of March, 2010 by and between priceline.com
Incorporated, a Delaware corporation, with its principal United States office
at 800 Connecticut Avenue, Norwalk, Connecticut 06854, and
                                      
(the “Participant”).

 

WITNESSETH:

 

Pursuant to terms of the priceline.com Incorporated
1999 Omnibus Plan (the “Plan”), the Board of Directors of the Company (the “Board”)
has authorized this Agreement.  The
Participant has been granted as of March 4, 2010 (the “Grant Date”) the
number of performance share units (the “Performance Share Units”) set forth
below.  Unless otherwise indicated, any
capitalized term used herein, but not defined herein, shall have the meaning
ascribed to such term in the Plan.  The
Performance Share Units comprising this award may be recorded in an unfunded
Performance Share Unit account in the Participant’s name maintained by the
Company.  The Participant will have no
rights as a stockholder of the Company by virtue of any Performance Share Unit
awarded to the Participant until shares of Stock (as defined below), if any,
are issued to the Participant as described in this Agreement.

 

1.                                      Definitions

 

(a)                                 “Company” shall mean priceline.com
Incorporated, any of its subsidiaries or affiliates.

 

(b)                                 “Consolidated
Pro Forma EBITDA” shall mean the Company’s operating income, excluding
depreciation and amortization expense and including the impact of foreign currency
transactions and other expense, all determined in accordance with U.S. GAAP,
adjusted to exclude the impact of those items excluded from the non-GAAP
financial metric “pro forma EBITDA,” as publicly disclosed annually or
quarterly, as applicable, by the Company in connection with the Company’s
annual and quarterly earnings announcements. 
Consolidated Pro Forma EBITDA as publicly disclosed typically excludes
and/or includes items that are, among other things, non-cash in nature, or
related to unusual or non-recurring events, or in response to changes in laws
or regulations, or to account for gains, losses or expenses determined to be
extraordinary or unusual in nature or infrequent in occurrence, or are
unpredictable as to amount or timing, not driven by core operating results and
render comparisons with prior periods less meaningful, or related to the
acquisition of a business or the disposition of a business or a segment of a
business, or related to a change in accounting principles.  Consolidated Pro Forma EBITDA shall also be
adjusted (i) to exclude the financial results from any acquisition or to
include the prospective forecasted results for any disposition of a business or
a segment of a business made during the Performance Period and (ii) to exclude the on-going impact of change
in accounting principles.  Notwithstanding the foregoing, in determining
Consolidated Pro 

 

[***] = Confidential treatment requested for
redacted portion; redacted portion has been filed separately with the
Securities and Exchange Commission.

 

 

Forma
EBITDA, the Committee shall have the authority to make additional adjustments
that it considers, in its good faith judgment, necessary to maintain the intent
and principles consistent with the foregoing adjustments.

 

(c)                                  “Continuous Service” shall mean the
Participant’s service with the Company or any Subsidiary or Affiliate whether
as an employee, director or consultant, which is not interrupted or terminated.

 

(d)                                 “Cumulative Consolidated Pro Forma EBITDA”
shall mean the Consolidated Pro Forma EBITDA during the Performance Period,
calculated on a cumulative basis, net of any losses.

 

(e)                                  “Determination Date” shall mean March 1,
2013.

 

(f)                                   “Disability” shall mean that (i) the
Participant is unable to engage in any substantial gainful activity by reason
of any medically determinable physical or mental impairment that can be
expected to result in death or can be expected to last for a continuous period
of not less than twelve (12) months or (ii) the Participant is, by reason
of any medically determinable physical or mental impairment that can be
expected to result in death or can be expected to last for a continuous period
of not less than twelve (12) months, receiving income replacement benefits for
a period of not less than three (3) months under an accident and health
plan covering employees of the Company.

 

(g)                                  “Good Reason” shall mean (i) a
material diminution in the Participant’s authority, duties or responsibilities,
(ii) relocation of the Company’s executive office in Connecticut to a
location more than thirty-five (35) miles from its current location or more
than thirty-five (35) miles further from the Participant’s residence at the
time of relocation, or (iii) any material breach of an employment
agreement, if any, that is in effect at any time between the Participant and
the Company.

 

Before a termination by a
Participant will constitute termination for Good Reason, the Participant must
give the Company a Notice of Good Reason within ninety (90) calendar days
following the occurrence of the event that constitutes Good Reason.  Failure to provide such Notice of Good Reason
within such 90-day period shall be conclusive proof that the Participant shall
not have Good Reason to terminate employment.

 

Good Reason shall exist
only if (A) the Employer fails to remedy the event or events constituting
Good Reason within thirty (30) calendar days after receipt of the Notice of
Good Reason from the Participant and (B) the Participant terminates his or
her employment within sixty (60) days after the end of the period set forth in
clause (A) above.  If the
Participant determines that Good Reason for termination exists and timely files
a Notice of Good Reason, such determination shall be presumed to be true and
the Company will have the burden of proving that Good Reason does not exist.

 

(h)                                 “Notice of Good Reason” means a written
notice by the Participant to the Company which sets forth in reasonable detail
the specific reason for a termination of employment for Good Reason and the
facts and circumstances claimed to provide a basis for such termination and is
provided to the Company in accordance with the terms set forth in Section 1(g) hereof.

 

[***] = Confidential treatment requested for
redacted portion; redacted portion has been filed separately with the
Securities and Exchange Commission.

 

2

 

(i)                                     “Performance Period” shall mean the
period commencing on January 1, 2010 and ending on December 31, 2012.

 

(j)                                    “Plan Year” shall mean the calendar year.

 

(k)                                 “Stock” shall mean shares of common
stock, par value $0.008, of the Company.

 

(l)                                     “Target Amount” shall have the meaning
given such term under Section 2.

 

(m)                             “Vesting Factor” means the factor by
which to multiply the Target Amount determined in accordance with the following
table:

 

	
  If the Cumulative Consolidated Pro Forma

  EBITDA for the Performance Period is:

  	
   

  	
  Then the Vesting Factor or Vesting

  Factor Range is:

  
	
  [***]

  	
   

  	
  0x

  
	
  [***]

  	
   

  	
  0x to 1x

  
	
  [***]

  	
   

  	
  1x

  
	
  [***]

  	
   

  	
  1x to 2x

  
	
  [***]

  	
   

  	
  2x to 3x

  
	
  [***]

  	
   

  	
  3x

  

 

2.                                      The Grant

 

Subject to the terms and conditions set forth herein,
the Participant is granted
                    
(                    )
Performance Share Units as of the Grant Date (the “Target Amount”).

 

3.                                      Vesting; Effect of Termination of Continuous
Service; Change in Control

 

(a)                                 Vesting at End of Performance Period. 
If the Participant remains in Continuous Service through and including
the Determination Date and no Change in Control occurs prior to the
Determination Date, then the Participant shall be entitled to receive a number
of shares of Stock determined by multiplying the Target Amount by the
Applicable Vesting Factor.  The “Applicable
Vesting Factor” shall be equal to either (i) the sole Vesting Factor that
corresponds to the actual Cumulative Consolidated Pro Forma EBITDA set forth in
the table in Section 1(m) above in the event there is no Vesting
Factor Range, or (ii) the sum of (A) the lowest Vesting Factor in the
applicable Vesting Factor Range that corresponds to the actual Cumulative
Consolidated Pro Forma EBITDA set forth in the table in Section 1(m) above,
plus (B) the ProRata Vesting Factor Increase.  The “ProRata Vesting Factor Increase” is the
quotient of (1) the excess of the actual Cumulative Consolidated Pro Forma
EBITDA over the lowest Cumulative Consolidated Pro Forma EBITDA in the range of
numbers in which the actual Cumulative Consolidated Pro Forma EBITDA falls (set
forth in the table in Section 1(m) above), divided by (2) the
result of a fraction, the numerator of which is the difference between the
lowest and highest Cumulative Consolidated Pro Forma EBITDA in the range of
numbers in which the actual Cumulative Consolidated Pro Forma EBITDA falls (set
forth in the table in Section 1(m) above), and the denominator of which
is the difference between the lowest and 

 

[***] = Confidential treatment requested for
redacted portion; redacted portion has been filed separately with the
Securities and Exchange Commission.

 

3

 

highest applicable
Vesting Factor in the applicable Vesting Factor Range (set forth in the table
in Section 1(m) above).  All
shares of Stock to be issued to the Participant under this Section 3(a),
if any, shall be issued to the Participant as soon as practicable after the
Determination Date but in no event later than March 15, 2013.  If the Participant becomes entitled to any
shares of Stock under this Section 3(a), he or she shall not be entitled
to receive any shares of Stock under any other subsection of this Section 3.

 

(b)                                 Termination for Cause. 
If, prior to the Determination Date, the Participant’s Continuous
Service is (i) terminated by the Company
for Cause or (ii) voluntarily terminated by the Participant
other than on account of Good Reason,
death or Disability, then the Participant shall receive no shares of Stock
under this Agreement.

 

(c)                                  Termination Prior to a Change in Control. 
If, prior to the Determination Date and prior to a Change in Control,
the Participant’s Continuous Service is terminated by the Company other than
for Cause or by the Participant on account of Good Reason, death or Disability,
then the Participant’s Performance Share Unit number shall be determined (or
that of the Participant’s designated beneficiary in the event of the
Participant’s death) in accordance with Exhibit 1, and the
Participant shall at the time of such termination be vested in a number of
shares of Stock determined by the product of (i) such Performance Share
Unit number, multiplied by (ii) a fraction, the numerator of which is the
lesser of 36 or the number of full months completed since January 1, 2010
as of the date of such termination, and the denominator of which is 36.  Subject to Section 3(f), all shares of
Stock to be issued to the Participant under this Section 3(c), if any,
shall be issued to the Participant (or the Participant’s designated beneficiary
in the event of the Participant’s death) as soon as practicable after the
Participant’s Continuous Service is terminated but in no event later than March 15
of the calendar year following the calendar year in which the Participant’s
Continuous Service is terminated (or, if the Participant’s Continuous Service
is terminated on or after January 1, 2013, March 15, 2013).  If the Participant becomes entitled to any
shares of Stock under this Section 3(c), he or she shall not be entitled
to receive any shares of Stock under any other subsection of this Section 3.

 

(d)                                 Change in Control. 
If a Change in Control occurs prior to the Determination Date and the Participant
remains in Continuous Service through and including the Determination Date,
then the Participant’s Performance Share Unit number shall be determined in
accordance with Exhibit 1, and the Participant shall be vested in (i) if
the Change in Control occurs prior to January 1, 2013, the sum of (A) a
number of shares of Stock determined by multiplying such Performance Share Unit
number by a fraction, the numerator of which is the lesser of 36 and the number
of full months completed since January 1, 2010 as of the date of such
Change in Control, and the denominator of which is 36, and (B) a number of
shares of Stock equal to the product of the Target Amount, multiplied by the
fraction, the numerator of which is the number of full months that have been completed
during the period commencing on the Change in Control and ending on December 31,
2012 (plus one (1) if the Change in Control occurs on any day of the month
other than the first or last day), and the denominator of which is 36, or (ii) if
the Change in Control occurs on or after January 1, 2013, a number of
shares of Stock equal to the Performance Share Unit number.  All shares of Stock to be issued to the
Participant under this Section 3(d), if any, shall be issued to the
Participant as soon as practicable after the Determination Date but in no event
later than March 15, 2013.  If the
Participant becomes entitled to any shares of Stock under this Section 3(d),
he or she shall not be entitled to receive any shares of Stock under any other
subsection of this Section 3.

 

[***] = Confidential treatment requested for
redacted portion; redacted portion has been filed separately with the
Securities and Exchange Commission.

 

4

 

(e)                                  Termination Coincident with or Following
a Change in Control.  If a Change in Control occurs prior to the
Determination Date, and the Participant’s Continuous Service is terminated
prior to the Determination Date in connection with such Change in Control or
following such Change in Control  by
the Company other than for Cause or by the Participant on account of Good
Reason, death or Disability, then the Participant’s Performance Share Unit
number (or that of the Participant’s designated beneficiary in the event of the
Participant’s death) shall be determined in accordance with Exhibit 1,
and the Participant shall be vested at the time of such termination in (i) if
the termination occurs prior to January 1, 2013, the sum of (A) a
number of shares of Stock determined by multiplying such Performance Share Unit
number by a fraction, the numerator of which is the lesser of 36 and the number
of full months completed since January 1, 2010 as of the effective date of
such Change in Control, and the denominator of which is 36, and (B) a
number of shares of Stock equal to the product of the Target Amount, multiplied
by the fraction, the numerator of which is the number of full months that have
been completed during the period commencing on the effective date of the Change
in Control and ending on the earlier of December 31, 2012 or the date of
such termination (plus one (1) if the termination occurs on any day of the
month other than the first or last day), and the denominator of which is 36, or
(ii) if the termination occurs on or after January 1, 2013, a number
of shares of Stock equal to the Performance Share Unit number.  Subject to Section 3(f), all shares of
Stock to be issued to the Participant under this Section 3(e) as a
result of the Participant’s termination of Continuous Service on or after the
effective date of the Change in Control, if any, shall be issued to the
Participant (or the Participant’s designated beneficiary in the event of the
Participant’s death) as soon as practicable after the Participant’s Continuous
Service is terminated but in no event later than March 15 of the calendar
year following the calendar year in which the Participant’s Continuous Service
is terminated.  If the Participant
becomes entitled to any shares of Stock under this Section 3(e), he or she
shall not be entitled to receive any shares of Stock under any other subsection
of this Section 3.

 

(f)                                   Notwithstanding anything in this
Agreement to the contrary, if the Participant is a “specified employee” (within
the meaning of Section 409A of the Code) and the issuance of the shares of
Stock pursuant to Sections 3(c) and 3(e) is considered to be a “deferral
of compensation” (as such phrase is defined for purposes of Section 409A
of the Code), then the Participant’s date of issuance of the shares of Stock
shall be the date that is the first day of the seventh month after the date of
the Participant’s “separation from service” with the Company (determined in
accordance with Section 409A of the Code).

 

(g)                                  For purposes of calculations made under
this Section 3, results shall be rounded to the nearest 100th using the
common rounding method (i.e., increase the last digit by 1 if the next
digit is 5 or more).

 

4.                                      Nontransferability of Grant

 

Except as otherwise provided herein or in the Plan, no
Performance Share Units shall be assigned, negotiated, pledged, or hypothecated
in any way or be subject to execution, attachment or similar process.  No transfer of the Participant’s rights with
respect to such Performance Share Units, whether voluntary or involuntary, by
operation of law or otherwise, shall be permitted.  Immediately upon any attempt to transfer such
rights, such Performance Share Units, and all of the rights related thereto,
shall be forfeited by the Participant.

 

[***] = Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Securities and
Exchange Commission.

 

5

 

5.                                      Distribution and Voting Rights

 

Performance Share Units shall have no distribution,
dividend or voting rights.

 

6.                                      Stock; Adjustment Upon Certain Events

 

(a)                                 Stock to be issued under this Agreement,
if any, shall be made available, at the discretion of the Board, either from
authorized but unissued Stock, from issued Stock reacquired by the Company or from
Stock purchased by the Company on the open market specifically for this
purpose.

 

(b)                                 The existence of this Agreement and the
Performance Share Units granted hereunder shall not affect in any way the right
or power of the Board or the stockholders of the Company to make or authorize
any adjustment, recapitalization, reorganization or other change in the Company’s
capital structure or its business, any merger or consolidation of the Company
or any affiliate, any issue of bonds, debentures, preferred or prior preference
stocks ahead of or affecting the Stock, the authorization or issuance of
additional shares of Stock, the dissolution or liquidation of the Company or
any affiliate or sale or transfer of all or part of the assets or business of
the Company or any affiliate, or any other corporate act or proceeding.

 

(c)                                  Upon a Change in Control, the purchaser(s) of
the Company’s assets or stock or the surviving entity in a merger or
consolidation may, in his, her or its discretion, deliver to the Participant
the same kind of consideration that is delivered to the stockholders of the
Company as a result of such Change in Control, or the Board may cancel all
outstanding Performance Share Units in exchange for consideration in cash or in
kind which consideration in both cases shall be determined by the Board.

 

(d)                                 In the event of any dividend or other
distribution (whether in the form of cash, Stock, or other property),
recapitalization, Stock split, reverse split, reorganization, merger,
consolidation, spin-off, combination, repurchase, or share exchange, or other
similar corporate transaction or event that affects the Stock such that an
adjustment is required in order to prevent dilution or enlargement of the
rights of holders of Performance Share Units under the Plan, then the Committee
shall make such equitable changes or adjustments to any or all of (i) the
number and kind of shares of Stock or other property (including cash) that may
thereafter be issued in connection with the Performance Share Units granted under
the Plan, (ii) the number and kind of shares of Stock or other property
(including cash) issued or issuable in respect of outstanding Performance Share
Units, (iii) performance targets, and (iv) any individual limitations
applicable to the Performance Share Units granted under the Plan.

 

7.                                      Determinations

 

The Committee (by proper delegation or otherwise)
shall determine the extent to which an award has been earned, if at all, in
accordance with Section 3 of this Agreement on or prior to the Determination
Date.  Such determination and all other
determinations, interpretations or other actions made or taken pursuant to the
provisions of this Agreement by the Committee in good faith shall be final,
conclusive and binding for all purposes and upon all persons, including,
without limitation, the Participant and the Company, and their respective
heirs, executors, administrators, personal representatives and other successors
in interest.

 

[***] = Confidential treatment requested for
redacted portion; redacted portion has been filed separately with the
Securities and Exchange Commission.

 

6

 

8.                                      Other Conditions

 

The transfer of any Stock under this Agreement, if
any, shall be effective only at such time as counsel to the Company shall have
determined that the issuance and delivery of such Stock is in compliance with
all applicable laws, regulations of governmental authority and the requirements
of any securities exchange on which Stock is traded.

 

9.                                      Withholding Taxes

 

The Participant shall be liable for any and all taxes
and contributions of any kind required by law to be withheld with respect to
the delivery of any shares of Stock under this Agreement.  The Participant agrees that the Participant’s
employer may, in its discretion, (a) require the Participant to remit to
the Company on the date on which the Participant becomes the owner of shares of
Stock under this Agreement cash in an amount sufficient to satisfy all
applicable required withholding taxes and social security contributions related
to such vesting, (b) deduct from his or her regular salary payroll cash,
on a payroll date coincident with or following the date on which the
Participant becomes the owner of shares of Stock under this Agreement, in an amount
sufficient to satisfy such obligations, or (c) withhold from the total
number of shares of Stock the Participant is to receive on a determination date
a number of shares that has a total value equal to the amount necessary to
satisfy any and all such withholding tax obligations.

 

10.                               Distribution of Stock

 

Subject to Section 8,
the Company shall cause the Participant to be the record owner of any shares of
Stock to which the Participant becomes entitled to receive under this Agreement
in accordance with the payment terms described in Section 3.

 

11.                               Incorporation of the Plan

 

The Plan, as it exists on the date of this Agreement
and as amended from time to time, is hereby incorporated by reference and made
a part hereof, and the Performance Share Units and this Agreement shall be
subject to all terms and conditions of the Plan.  In the event of any conflict between the
provisions of this Agreement and the provisions of the Plan, the terms of the
Plan shall control, except as expressly stated otherwise.

 

12.                               Miscellaneous

 

(a)                                 This Agreement shall inure to the benefit
of and be binding upon the parties hereto and their respective heirs, personal
legal representatives, successors, trustees, administrators, distributees,
devisees and legatees.  The Company shall
assign to, and require, any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business
and/or assets of the Company to expressly assume and agree in writing to
perform this Agreement.  Notwithstanding
the foregoing, this Agreement may not be assigned by the Participant.

 

(b)                                 The Participant acknowledges that the
Company intends for the information contained in Section 1(m) and Exhibit 1
hereof to remain confidential. 
Notwithstanding any other provision hereof, the Participant’s
entitlement to any award or payment hereunder is contingent upon the
Participant maintaining the confidentiality of the information contained in 

 

[***] = Confidential treatment requested for
redacted portion; redacted portion has been filed separately with the
Securities and Exchange Commission.

 

7

 

Section 1(m) and
Exhibit 1.  The Participant
agrees that he or she shall not disclose or cause the disclosure of such
information and shall hold such information confidential.

 

(c)                                  No modification or waiver of any of the
provisions of this Agreement shall be effective unless in writing and signed by
the party against whom it is sought to be enforced.  To the extent applicable, it is intended that
this Agreement comply with the provisions of Section 409A of the Code, so
that the income inclusion provisions of Section 409A(a)(1) of the
Code do not apply to the Participant. 
This Agreement shall be administered in a manner consistent with this
intent.  References to Section 409A
of the Code will also include any regulations or any other formal guidance
promulgated with respect to such Section by the U.S. Department of the
Treasury or the Internal Revenue Service.

 

(d)                                 This Agreement may be executed in one or
more counterparts, all of which taken together shall constitute one agreement.

 

(e)                                  The failure of any party hereto at any
time to require performance by another party of any provision of this Agreement
shall not affect the right of such party to require performance of that
provision, and any waiver by any party of any breach of any provision of this
Agreement shall not be construed as a waiver of any continuing or succeeding
breach of such provision, a waiver of the provision itself, or a waiver of any
right under this Agreement.

 

(f)                                   The headings of the sections of this
Agreement have been inserted for convenience of reference only and shall in no
way restrict or modify any of the terms or provisions hereof.

 

(g)                                  The Company shall pay all fees and
expenses necessarily incurred by the Company in connection with this Agreement
and will from time to time use its reasonable efforts to comply with all laws
and regulations which, in the opinion of counsel to the Company, are applicable
thereto.

 

(h)                                 All notices, consents, requests,
approvals, instructions and other communications provided for herein shall be
in writing and validly given or made when delivered, or on the second
succeeding business day after being mailed by registered or certified mail,
whichever is earlier, to the persons entitled or required to receive the same,
at the addresses set forth at the heading of this Agreement or to such other
address as either party may designate by like notice.  Notices to the Company shall be addressed to
its principal office, attention of the Company’s General Counsel.

 

(i)                                     The Plan and this Agreement constitute
the entire Agreement and understanding between the parties with respect to the
matters described herein and supersede all prior and contemporaneous agreements
and understandings, oral and written, between the parties with respect to such
subject matter.

 

(j)                                    This Agreement shall be governed and
construed and the legal relationships of the parties determined in accordance with
the laws of the state of Delaware without reference to principles of conflict
of laws.

 

(k)                                 The Company represents and warrants that
it is duly authorized by its Board and/or the Committee (and by any other
person or body whose authorization is required) to enter into this Agreement,
that there is no agreement or other legal restriction which would prevent it 

 

[***] = Confidential treatment requested for
redacted portion; redacted portion has been filed separately with the
Securities and Exchange Commission.

 

8

 

from entering into, and
carrying out its obligations under, this Agreement, and that the officer
signing this Agreement is duly authorized and empowered to sign this Agreement
on behalf of the Company.

 

[***] = Confidential treatment
requested for redacted portion; redacted portion has been filed separately with
the Securities and Exchange Commission.

 

9

 

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement as of the day and year first above written.

 

	
  PRICELINE.COM
  INCORPORATED

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Jeffery Boyd

  	
   

  
	
  Chief Executive
  Officer

  	
   

  

 

[***] = Confidential treatment requested for
redacted portion; redacted portion has been filed separately with the
Securities and Exchange Commission.

 

10

 

Exhibit 1

 

The Performance Share Unit
number shall be determined in accordance with this Exhibit 1 if,
prior to the Determination Date, a Change in Control occurs and/or the
Participant’s Continuous Service terminates. 
If no Change in Control occurs or the Participant’s Continuous Service
does not terminate prior to the Determination Date, the Performance Share Unit
number shall be determined in accordance with the table in Section 1(m) hereof.  Upon any date of determination before the
Determination Date as set forth in the Agreement or in connection with a
determination pursuant to Section 3(d) hereof, the Participant’s
Performance Share Unit number shall be determined as of the most recently
completed fiscal quarter for the period commencing January 1, 2010.  Such Performance Share Unit number shall be
equal to the product of (1) the Target Amount, multiplied by either (2)(a) the
sole Mid-Period Vesting Factor under the column with the heading “Mid-Period
Vesting Factor Ranges” in the chart below corresponding to the actual
Cumulative Consolidated Pro
Forma EBITDA per applicable quarter for which the determination is made or (b) the
sum of (i) the lowest Mid-Period Vesting Factor in the applicable
Mid-Period Vesting Factor Range corresponding to the actual Cumulative
Consolidated Pro
Forma EBITDA per applicable quarter for which the determination is made,
plus (ii) the ProRata Mid-Period Vesting Factor Increase; provided,
however, that in the event that the Participant’s Continuous Service is
terminated prior to the 6th fiscal quarter completed since January 1,
2010, the Mid-Period Vesting Factor shall not exceed 2x.

 

The “ProRata Mid-Period
Vesting  Factor Increase” means the
quotient of (1) the excess of the actual Cumulative Consolidated Pro Forma EBITDA over the lowest
Cumulative Consolidated Pro
Forma EBITDA within the specified range per the applicable quarter for which
the determination is made, divided by (2) the result of a fraction, the
numerator of which is the difference between the lowest and highest Cumulative
Consolidated Pro
Forma EBITDA within such specified range per the applicable quarter for
which the determination is made, and the denominator of which is the difference
between the lowest and highest specified Mid-Period Vesting Factor for such
quarter.

 

[***] = Confidential treatment requested for
redacted portion; redacted portion has been filed separately with the
Securities and Exchange Commission.

 

11

 

U.S. (Consolidated — Group
#1)

 

All amounts are in millions
of U.S. dollars.

 

	
  Cumulative

  Consolidated

  Pro Forma

  EBITDA

  per

  specified

  quarter

  	
   

  	
  1st fiscal

  quarter

  completed

  since

  l/l/10

  	
   

  	
  2nd fiscal

  quarter

  completed

  since

  l/l/10

  	
   

  	
  3rd fiscal

  quarter

  completed

  since

  l/l/10

  	
   

  	
  4th fiscal

  quarter

  completed

  since

  l/l/10

  	
   

  	
  5th fiscal

  quarter

  completed

  since

  1/l/10

  	
   

  	
  6th fiscal

  quarter

  completed

  since

  1/1/10

  	
   

  	
  7th fiscal

  quarter

  completed

  since

  1/1/10

  	
   

  	
  8th fiscal

  quarter

  completed

  since

  l/l/10

  	
   

  	
  9th fiscal

  quarter

  completed

  since

  1/1/10

  	
   

  	
  10th fiscal

  quarter

  completed

  since

  1/1/10

  	
   

  	
  11th fiscal

  quarter

  completed

  since

  1/1/10

  	
   

  	
  12th fiscal quarter completed since

  1/1/10

  	
   

  	
  Mid-Period

  Vesting

  Factor

  Ranges

  (Earned

  shares as a

  factor of the

  Target

  Amount)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Less than

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
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  Equals Zero

  	
   

  
	
  Equal to or greater than

  	
   

  	
  [***]

  	
   

  	
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  [***]

  	
   

  	
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  Equals Zero to 1x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  But less than

  	
   

  	
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  Equal to or greater than

  	
   

  	
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  Equals 1x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  But less than

  	
   

  	
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  Equal to or greater than

  	
   

  	
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  Equals 1x to 2x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  But less than

  	
   

  	
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  Equal to or greater than

  	
   

  	
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  Equals 2x to 3x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
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  [***]

  	
   

  	
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  [***]

  	
   

  	
  [***]

  	
   

  	
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  Equal to or greater than

  	
   

  	
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  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  Equals 3x

  	
   

  

 

[***] = Confidential treatment requested for
redacted portion; redacted portion has been filed separately with the
Securities and Exchange Commission.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}]]