Document:

Exhibit 4.3

CERTIFICATE OF DESIGNATION 

OF 

4.875% CUMULATIVE CONVERTIBLE PERPETUAL PREFERENCE
SHARES

OF 

BUNGE LIMITED

Set out below are the voting
powers, designation, relative, participating, optional and other rights,
preferences and qualifications, limitations and restrictions of the series of
preference shares of Bunge Limited (the “Company”), designated as the 4.875%
Cumulative Convertible Perpetual Preference Shares (the “Convertible
Preference Shares”) approved by a resolution of the Finance and Risk Policy
Committee of the Board of Directors as authorized by a resolution of the Board
of Directors on November 13, 2006:

1.     Designation
and Amount; Ranking. (a) There shall be created from the 10,000,000
preference shares, par value US$0.01 each, of the Company authorized to be
issued pursuant to the memorandum of association and bye-laws of the Company, a
series of Convertible Preference Shares, and the number of shares of such
series shall be 6,900,000. Such number of shares may be decreased by resolution
of the Board of Directors; provided that no decrease shall reduce the number of
Convertible Preference Shares to a number less than that of the Convertible
Preference Shares then issued and outstanding plus the number of such shares
issuable upon exercise of options or rights then outstanding.

(b)   The
Convertible Preference Shares will, with respect to both dividend rights and
rights upon the liquidation, winding-up or dissolution of the Company, rank (i)
senior to all Junior Shares; (ii) on a parity with all other Parity Shares; and
(iii) junior to all Senior Shares.

2.     Definitions.
As used herein, the following terms shall have the following meanings: (a) “Accrued
Dividends” shall mean, with respect to any Convertible Preference Share, as
of any date, the accrued and unpaid dividends on such share from and including
the most recent Dividend Payment Date (or the Issue Date, if such date is prior
to the first Dividend Payment Date) to but not including such date.

(b)   “Accumulated
Dividends” shall mean, with respect to any Convertible Preference Share, as
of any date, the aggregate accumulated and unpaid dividends on such share from
the Issue Date until the most recent Dividend Payment Date on or prior to such
date. There shall be no Accumulated Dividends with respect to any Convertible
Preference Shares prior to the first Dividend Payment Date.

(c)   “Affiliate”
shall have the meaning ascribed to it, on the date hereof, under Rule 405 of
the Securities Act.

 

 

(d)   “Board of
Directors” shall mean the board of directors of the Company or, with
respect to any action to be taken by the Board of Directors, any committee or
person duly authorized to take such action.

(e)   “Business
Day” shall mean any day other than a Saturday, Sunday or other day on which
commercial banks in The City of New York are authorized or required by law or
executive order to close.

(f)    “Bye-Laws”
shall mean the bye-laws of the Company, as amended or amended and restated from
time to time.

(g)   “Closing
Sale Price” means the closing sale price per share (or if no closing sale
price is reported, the average of the closing bid and ask prices or, if more
than one in either case, the average of the average closing bid and the average
closing ask prices) on such date as reported on the principal U.S. securities
exchange on which Common Shares are traded or, if Common Shares are not listed
on a U.S. national or regional securities exchange on the principal other U.S.
market on which Common Shares are then traded. In the absence of such a market,
the Closing Sale Price will be an amount determined in good faith by the Board
of Directors to be the fair value of one of the Common Shares.

(h)   “Common
Share Cap” means 2% of the number of Common Shares of the Company issued
and outstanding immediately prior to the time Common Shares of the Company are
issued to pay Accumulated Dividends.

(i)    “Common
Shares” shall mean the common shares, par value US$0.01 each, of the
Company, or any other class of shares resulting from successive changes or
reclassifications of such common shares consisting solely of changes in par
value, or from par value to no par value, or as a result of a subdivision,
combination, or merger, amalgamation, consolidation or similar transaction in
which the Company is a constituent company or corporation.

(j)    “Conversion
Price” shall mean US $92.20, subject to adjustment as set forth in
Section 7(c).

(k)   “Conversion
Rate” shall mean the rate at which one Convertible Preference Share
may be converted.

(l)    “Deferral
Period” means the period commencing on any Dividend Payment Date on which
the Company fails to declare and pay Accumulated Dividends (and there are no
Passed Dividends outstanding) and ending on the date on which all Passed
Dividends have been settled by

 2
 

 

 

issuing and delivering sufficient Common Shares to
holders of the Convertible Preference Shares.

(m)  “Dividend
Payment Date” shall mean March 1, June 1, September 1 and December 1 of
each year, commencing March 1, 2007.

(n)   “Dividend
Record Date” shall mean February 15, May 15, August 15 and November 15 of
each year.

(o)   “DTC”
or “Depository” shall mean The Depository Trust Company.

(p)   “Effective
Date” shall mean the date on which any Fundamental Change occurs.

(q)   “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended, and the
rules and regulations promulgated thereunder.

(r)    “Fundamental Change” shall mean any of the following events: (i) the
consolidation or amalgamation with, or merger with or into, another Person or
the sale, assignment, conveyance, transfer, lease or other disposition, in one
or a series of related transactions, of all or substantially all of the
Company’s assets (determined on a consolidated basis), or the consolidation or
amalgamation by any person with, or merger with or into, the Company, other
than pursuant to a transaction in which the persons that “beneficially owned”
(as defined in Rule 13d-3 under the Exchange Act) directly or indirectly, the
Voting Shares of the Company immediately prior to such transaction beneficially
own, directly or indirectly, Voting Shares representing a majority of the total
voting power of all issued and outstanding classes of Voting Shares of the
continuing, surviving or transferee person in substantially the same proportion
among themselves as such ownership immediately prior to such transaction (ii)
the sale, lease or transfer, in one or a series of related transactions, of all
or substantially all of the Company’s assets (determined on a consolidated
basis) to any Person or group (as such term is used in Section 13(d)(3) of the
Exchange Act), other than pursuant to a transaction in which persons that
‘‘beneficially owned’’ (as defined in Rule 13d-3 under the Exchange Act)
directly or indirectly, our voting shares immediately prior to such transaction
beneficially own, directly or indirectly, voting shares representing a majority
of the total voting power of such person or group; (iii) the adoption of a plan
the consummation of which would result in the liquidation or dissolution of the
Company; (iv) the acquisition, directly or indirectly, by any Person or group
(as such term is used in Section 13(d)(3) of the Exchange Act) of beneficial
ownership (as defined in Rule 13d-3 under the Exchange Act) of more than 50% of
the aggregate voting power

 3
 

 

 

of
the Voting Shares of the Company; (v) during any period of two consecutive
years, individuals who at the beginning of such period comprised the Board of
Directors (together with any new directors whose appointment by such Board of
Directors or whose nomination for election by the shareholders of the Company
was approved by a vote of 66% of the directors of the Company then still in
office who were either directors at the beginning of such period or whose
appointment or nomination for election was previously so approved) cease for
any reason to constitute a majority of the Board of Directors then in office;
or (vi) the Common Shares of the Company cease to be listed on a national
securities exchange or an over-the-counter market in the United States;
provided, however, that a Fundamental Change will not be deemed to have
occurred in the case of a merger, consolidation or amalgamation, if (i) at
least 90% of the consideration (excluding cash payments for fractional shares
and cash payments pursuant to dissenters’ appraisal rights) in the merger,
consolidation or amalgamation consists of common shares of a company incorporated or organized under the laws of
Bermuda, the United States or any political or subdivision thereof, any full
member state of the European Union, Canada or any political or subdivision
thereof, Australia or Switzerland, traded on a national securities exchange or
on an over-the-counter market in the United States (or which will be so traded
or quoted when issued or exchanged in connection with such transaction) and
(ii) as a result of such transaction or transactions the Convertible Preference
Shares become convertible solely into such common shares.

(s)   “Fundamental
Change Notice Date” shall mean a day that is within ten Trading Days after
the Effective Date.

(t)    “Holder”
or “holder” shall mean a holder of record of the Convertible Preference Shares.

(u)   “Issue Date”
shall mean November 20, 2006, the original date of issuance of the Convertible
Preference Shares.

(v)   “Junior
Shares” shall mean all Common Shares of the Company, the Company’s Series A
Preference Shares, and each other class of shares or series of preference
shares established by the Board of Directors after the Issue Date, the terms of
which do not expressly provide that such class or series ranks senior to or on
parity with the Convertible Preference Shares as to dividend rights or rights
upon the liquidation, winding-up or dissolution of the Company.

(w)  “Liquidation
Preference” shall mean, with respect to each Convertible Preference Share,
US$100.00 plus, upon voluntary or involuntary liquidation, winding-up or dissolution,
an amount equal to

 4
 

 

 

Accumulated
Dividends at such time up to an additional US$25.00 per Convertible Preference
Share.

(x)    “Market
Disruption Event” shall mean the occurrence or continuation of any of the
following events or circumstances: (i)
the Company is required to obtain the consent or approval of its
shareholders or a regulatory body (including, without limitation, any
securities exchange) or governmental authority to issue its Common Shares and
such consent or approval has not yet been obtained, even though the Company has
used commercially reasonable efforts to obtain the required consent or
approval; (ii) trading in securities
generally on the principal exchange on which the Company’s Common Shares are
listed and traded shall have been suspended or materially disrupted or minimum
prices shall have been established on any such exchange or market by the SEC,
by the relevant exchange or any other regulatory body or governmental authority
having jurisdiction; (iii) the
Company reasonably believes that the issuance of its Common Shares would not be
in compliance with a rule or regulation of the SEC and the Company is unable to
comply with such rule or regulation or such compliance is impracticable,
provided that no single suspension contemplated by this subsection (iii) may
exceed 90 consecutive days and multiple suspension periods contemplated by this
subsection (iii) may not exceed an aggregate of 180 days in any 360-day period;
(iv) there is a material adverse
change in general domestic or international economic, political or financial
conditions, including without limitation as a result of terrorist activities,
or the effect of international conditions on the financial markets in the
United States, such as to make it, in the judgment of the Company,
impracticable to proceed with the issuance of its common shares; (v) a material disruption shall have
occurred in commercial banking or securities settlement or clearing services in
the United States; or (vi) a banking
moratorium shall have been declared by federal or New York State authorities of
the United States.

(y)   “Market
Value” shall mean the average Closing Sale Price of the Common Shares of
the Company for a five consecutive Trading Day period on the NYSE (or such
other national securities exchange or automated quotation system on which the
Common Shares of the Company are then listed or authorized for quotation or, if
the Common Shares of the Company are not so listed or authorized for quotation,
an amount determined in good faith by the Board of Directors to be the fair
value of the Common Shares) ending on the Trading Day immediately preceding the
date of determination.

(z)    “NYSE”
shall mean the New York Stock Exchange, Inc.

 5
 

 

 

(aa) “Officer”
shall mean the Chairman, the Chief Executive Officer, the Chief Financial
Officer, the Treasurer, the Secretary or any Assistant Secretary of the
Company.

(bb) “Officers’
Certificate” shall mean a certificate signed by two Officers.

(cc) “Opinion of
Counsel” shall mean a written opinion from legal counsel who is acceptable
to the Transfer Agent. The counsel may be an employee of or counsel to the
Company or the Transfer Agent.

(dd) “Parity
Shares” shall mean any class of shares or series of preference shares
established after the Issue Date by the Board of Directors, the terms of which
expressly provide that such class or series will rank on parity with the
Convertible Preference Shares as to dividend rights or rights upon the liquidation,
winding-up or dissolution of the Company.

(ee) “Passed
Dividend” means any Accrued Dividend due and not paid on a Dividend Payment
Date.

(ff)   “Person”
shall mean any individual, company, corporation, general partnership, limited
partnership, limited liability partnership, joint venture, association,
joint-stock company, trust, limited liability company, unincorporated
organization or government or any agency or political subdivision thereof.

(gg) “SEC” or
“Commission” shall mean the United States Securities and Exchange Commission.

(hh) “Securities
Act” shall mean the United States Securities Act of 1933, as amended.

(ii)   “Senior
Shares” shall mean any class of shares or series of preference shares
established after the Issue Date by the Board of Directors and/or members of
the Company, the terms of which expressly provide that such class or series
will rank senior to the Convertible Preference Shares as to dividend rights or
rights upon the liquidation, winding-up or dissolution of the Company.

(jj)   “Share Price” shall mean the Closing Share Price on the Effective
Date.

(kk) “Total
Common Share Cap Amount” means the limit on the aggregate number of Common
Shares of the Company that are issued and delivered to holders of the
Convertible Preference Shares to settle any

 6
 

 

 

Passed Dividends.  The Total Common Share Cap Amount shall
initially mean 18,000,000 Common Shares of the Company, adjusted as of any date
on which the Conversion Price is adjusted in the same manner as the Conversion
Price is adjusted, as described in Section 7(c).

(ll)   “Trading
Day” shall mean a day during which trading in securities generally occurs
on the NYSE or, if the Company’s Common Shares are not listed on the NYSE, on
the principal other U.S. national or regional securities exchange on which the
Company’s Common Shares are then listed or, if the Company’s Common Shares are
not listed on a U.S. national or regional securities exchange, on the principal
other U.S. market on which the Company’s Common Shares are then traded.

(mm) “Transfer Agent” shall mean Mellon
Investor Services LLC, the Company’s
duly appointed transfer agent, branch, registrar and conversion and dividend
disbursing agent for the Convertible Preference Shares. The Company may, in its
sole discretion, remove the Transfer Agent with ten days’ prior notice to the
Transfer Agent; provided that the Company shall appoint a successor Transfer
Agent who shall accept such appointment prior to the effectiveness of such
removal.

(nn) “Underwriting
Agreement” shall mean that certain Underwriting Agreement with respect to
the Convertible Preference Shares, dated November 14, 2006, between the Company
and Credit Suisse Securities (USA) LLC.

(oo) “Voting
Rights Triggering Event” shall mean that dividends on the Convertible Preference
Shares are in arrears and unpaid for six or more quarterly periods (whether or
not consecutive).

(pp) “Voting
Shares” shall mean, with respect to any Person, securities of any class or
classes of Capital Shares in such Person entitling the holders thereof (whether
at all times or only so long as no senior class of shares has voting power by
reason of contingency) to vote in the election of members of the Board of
Directors or other governing body of such Person. For purposes of this
definition, “Capital Shares” shall mean, with respect to any Person, any and
all shares, interests, participations or other equivalents (however designated)
of corporate shares or stock or partnership interests and any and all warrants,
options and rights with respect thereto (whether or not currently exercisable),
including each class of common shares and preference shares of such Person.

 7
 

 

 

3.     Dividends.

(a)   Subject to
applicable law, the holders of the issued and outstanding Convertible
Preference Shares shall be entitled, when, as and if declared by the Board of
Directors out of funds of the Company legally available therefor, to receive
cumulative dividends in the form of cash, Common Shares, or a combination of
cash and Common Shares at the rate per annum of 4.875% per share on the
Liquidation Preference (equivalent to US$4.875 per annum per share), payable
quarterly in arrears (the “Dividend Rate”). Dividends payable for each
full dividend period will be computed by dividing the Dividend Rate by four and
shall be payable in arrears on each Dividend Payment Date (commencing March 1,
2007) for the quarterly period ending immediately prior to such Dividend
Payment Date, to the holders of record of Convertible Preference Shares at the
close of business on the Dividend Record Date applicable to such Dividend
Payment Date. Such dividends shall be cumulative from the most recent date as
to which dividends shall have been paid or, if no dividends have been paid,
from the Issue Date (whether or not in any dividend period or periods there
shall be funds of the Company legally available for the payment of such
dividends) and shall accrue on a day-to-day basis, whether or not earned or
declared, from and after the Issue Date. Dividends payable for any partial
dividend period, including the initial partial dividend period ending
immediately prior to March 1, 2007, shall be computed on the basis of days
elapsed over a 360-day year consisting of twelve 30-day months. Accumulations
of dividends on Convertible Preference Shares shall not bear interest.

(b)   Passed
Dividends may be paid only in Common Shares, subject to a cash adjustment for
fractional Common Shares as provided in Section 7(f). While any Passed
Dividends are outstanding, the Company may continue to pay any current
dividend, subject to the Company’s obligation to pay all Passed Dividends in
Common Shares.

(c)   Until
the fifth anniversary of the commencement of a Deferral Period, the Company may
limit the aggregate number of Common Shares issued and delivered to holders of
the Convertible Preference Shares to settle any Passed Dividends since the
commencement of the relevant Deferral Period to the Common Share Cap. Unless a
Market Disruption Event is in effect, if a Deferral Period continues beyond the
fifth anniversary of the commencement thereof, or if the Company pays
Accumulated Dividends earlier than the fifth anniversary of the commencement of
such Deferral Period, the Company shall thereafter be immediately obligated to
issue and deliver Common Shares to holders of the Convertible Preference Shares
until all Passed Dividends are settled in full, subject to the Common Share Cap
and the Total Common Share Cap Amount.

 8

 

(d)   No dividend
will be declared or paid upon, or any sum set apart for the payment of
dividends upon, any issued and outstanding Convertible Preference Share with
respect to any dividend period unless all dividends for all preceding dividend
periods have been declared and paid, or declared and cash and/or such number of
Common Shares, if any, sufficient for the payment thereof, have been set apart
and/or reserved for the payment of such dividend, upon all issued and
outstanding Convertible Preference Shares.

(e)   No dividends
or other distributions (other than a dividend or distribution payable solely in
Parity Shares or Junior Shares (in the case of Parity Shares) or Junior Shares
(in the case of Junior Shares) and other than cash paid in lieu of fractional
shares) may be declared, made or paid, or set apart for payment upon, any
Parity Shares or Junior Shares, nor may any Parity Shares or Junior Shares be
redeemed, repurchased or otherwise acquired for any consideration (or any money
paid to or made available for a sinking fund for the redemption of any Parity
Shares or Junior Shares) by or on behalf of the Company (except by conversion
into or exchange for Parity Shares or Junior Shares (in the case of Parity
Shares) or Junior Shares (in the case of Junior Shares)), unless Accumulated
Dividends shall have been or contemporaneously are, declared and paid, or are
declared and a sum in cash or Common Shares sufficient for the payment thereof
is set apart or reserved for such payment on the Convertible Preference Shares
and any Parity Shares for all dividend payment periods terminating on or prior
to the date of such declaration, payment, redemption, purchase or acquisition.
Notwithstanding the foregoing, if full dividends have not been paid on the
Convertible Preference Shares and any Parity Shares, dividends may be declared
and paid on the Convertible Preference Shares and such Parity Shares so long as
the dividends are declared and paid pro rata so that the amounts of dividends
declared per share on the Convertible Preference Shares and such Parity Shares
will, in all cases, bear to each other the same ratio that accumulated and
unpaid dividends per share on the Convertible Preference Shares and such Parity
Shares bear to each other.

(f)    Holders of
Convertible Preference Shares shall not be entitled to any dividends on the
Convertible Preference Shares, whether payable in cash, property or Common
Shares, in excess of full cumulative dividends. No interest, or sum of money in
lieu of interest, shall be payable in respect of any dividend payment or
payments on the Convertible Preference Shares that may be in arrears.

(g)   The holders of
Convertible Preference Shares at the close of business on a Dividend Record
Date will be entitled to receive the dividend payment on those Convertible
Preference Shares on the

 9
 

 

 

corresponding
Dividend Payment Date notwithstanding the subsequent conversion thereof or the
Company’s default in payment of the dividend due on such Dividend Payment Date.
However, Convertible Preference Shares surrendered for conversion during the
period between the close of business on any Dividend Record Date and the close
of business on the Business Day immediately preceding the applicable Dividend
Payment Date must be accompanied by payment of an amount equal to the dividend
payable on the Convertible Preference Shares on that Dividend Payment Date. A
holder of Convertible Preference Shares on a Dividend Record Date who (or whose
transferee) tenders any Convertible Preference Shares for conversion on the corresponding
Dividend Payment Date will receive the dividend payable by the Company on the
Convertible Preference Shares on that date, and the converting holder need not
include payment in the amount of such dividend upon surrender of Convertible
Preference Shares for conversion. Except as provided above with respect to a
voluntary conversion pursuant to Section 7, the Company shall make no payment
or allowance for unpaid dividends, whether or not in arrears, on converted
Convertible Preference Shares or for dividends on the Common Shares issued upon
conversion.

4.     Fundamental
Change.

(a)   Upon the
occurrence of a Fundamental Change, each holder of Convertible Preference
Shares shall, in the event that the Market Value for the period ending on the
Effective Date is less than US$65.86, and subject to the Company being able to
complete such transactions in compliance with applicable law, have a one-time
option (the “Fundamental Change Option”) to convert all of such holder’s
outstanding Convertible Preference Shares into fully paid and non-assessable
Common Shares at an adjusted Conversion Price equal to the greater of (i) the
Market Value for the period ending on the Effective Date and (ii) one-third of
US$65.86. The Fundamental Change Option must be exercised, if at all, during
the period of not less than 30 days nor more than 60 days after the Fundamental
Change Notice Date. The US$65.86 and one-third of US$65.86 prices referred to
in this subparagraph (a) shall be adjusted as of any date on which the Conversion
Price is adjusted. Such adjusted prices shall equal the respective prices
applicable immediately prior to the adjustment multiplied by a fraction, the
numerator of which shall be the Conversion Price as so adjusted and the
denominator of which shall be the Conversion Price immediately prior to the
adjustment to the Conversion Price.

(b)   In the event
of a Fundamental Change, notice of such Fundamental Change shall be given by
the Company to all holders of the Convertible Preference Shares by the
Fundamental Change Notice Date,

 10
 

 

 

by
first-class mail to each record holder of Convertible Preference Shares, at
such holder’s address as the same appears on the register of members of the
Company. Each such notice shall state (i) that a Fundamental Change has occurred;
(ii) the last day on which the Fundamental Change Option may be exercised (the
“Expiration Date”) pursuant to the terms hereof; (iii) the name and
address of the Transfer Agent; and (iv) the procedures that holders must follow
to exercise the Fundamental Change Option.

(c)   On or before
the Expiration Date, each holder of Convertible Preference Shares wishing to
exercise the Fundamental Change Option shall surrender the certificate or
certificates representing the Convertible Preference Shares to be converted, in
the manner and at the place designated in the notice described in Section 4(b),
and on such date or as soon as reasonably practicable thereafter the cash or
Common Shares due to such holder shall be issued and delivered to the Person
whose name appears on such certificate or certificates as the owner thereof,
and the Convertible Preference Shares represented by each surrendered
certificate shall have the status of authorized but unissued preference shares.
Upon surrender (in accordance with the notice described in Section 4(b)) of the
certificate or certificates representing any Convertible Preference Shares to
be so converted (properly endorsed or assigned for transfer, if the Company
shall so require and the notice shall so state), such Convertible Preference
Shares shall be converted by the Company at the adjusted Conversion Price, if
applicable, as described in Section 4(a).

(d)   The rights of
holders of Convertible Preference Shares pursuant to this Section 4 are in
addition to, and not in lieu of, the rights of holders of Convertible
Preference Shares provided for in Section 7 hereof.

(e)   Adjustment
of Conversion Rate Upon a Fundamental Change.  If a holder exercises its right
pursuant to Section 4(a) hereof to exercise its Fundamental Change Option, then
in the circumstances set forth in subparagraph (f) below, such holder will be
entitled to receive, in addition to a number of Common Shares equal to the
applicable Conversion Rate, an additional number of Common Shares (the “Additional Shares”) upon
conversion as set forth in subparagraph (f) below.

(f)    Determination
of Additional Shares.  The number of Additional Shares
shall be determined for the Convertible Preference Shares by reference to the
table below, based on the Effective
Date and the Share Price.

(i)     The following table sets forth the Share
Price, Effective Date and the increase in the Conversion Rate, expressed

 11
 

 

 

as a number of additional
Common Shares to be received for each Convertible Preference Share, upon a
conversion in connection with a Fundamental Change:

Additional Common
Shares

 

	
   

  	
   

  	
  Effective Date

  December 1,

  	
   

  	
   

  	
   

  
	
  Share Price(1)

  	
   

  	
  November 14,

  2006

  	
   

  	
  December 1,

  2007

  	
   

  	
  December 1,

  2008

  	
   

  	
  December 1,

  2009

  	
   

  	
  December 1,

  2010

  	
   

  	
  December 1,

  2011

  	
   

  	
  Thereafter

  	
   

  
	
  $65.86

  	
   

  	
  0.4338

  	
   

  	
  0.4338

  	
   

  	
  0.4338

  	
   

  	
  0.4338

  	
   

  	
  0.4338

  	
   

  	
  0.4338

  	
   

  	
  0.4338

  	
   

  
	
  $70.00

  	
   

  	
  0.3810

  	
   

  	
  0.3744

  	
   

  	
  0.3709

  	
   

  	
  0.3723

  	
   

  	
  0.3734

  	
   

  	
  0.3732

  	
   

  	
  0.3732

  	
   

  
	
  $75.00

  	
   

  	
  0.3277

  	
   

  	
  0.3185

  	
   

  	
  0.3127

  	
   

  	
  0.3126

  	
   

  	
  0.3133

  	
   

  	
  0.3133

  	
   

  	
  0.3133

  	
   

  
	
  $80.00

  	
   

  	
  0.2841

  	
   

  	
  0.2722

  	
   

  	
  0.2637

  	
   

  	
  0.2613

  	
   

  	
  0.2611

  	
   

  	
  0.2611

  	
   

  	
  0.2611

  	
   

  
	
  $85.00

  	
   

  	
  0.2486

  	
   

  	
  0.2344

  	
   

  	
  0.2229

  	
   

  	
  0.2174

  	
   

  	
  0.2155

  	
   

  	
  0.2154

  	
   

  	
  0.2154

  	
   

  
	
  $90.00

  	
   

  	
  0.2198

  	
   

  	
  0.2036

  	
   

  	
  0.1895

  	
   

  	
  0.1803

  	
   

  	
  0.1755

  	
   

  	
  0.1751

  	
   

  	
  0.1751

  	
   

  
	
  $95.00

  	
   

  	
  0.1964

  	
   

  	
  0.1789

  	
   

  	
  0.1624

  	
   

  	
  0.1472

  	
   

  	
  0.1363

  	
   

  	
  0.1341

  	
   

  	
  0.1341

  	
   

  
	
  $100.00

  	
   

  	
  0.1776

  	
   

  	
  0.1592

  	
   

  	
  0.1412

  	
   

  	
  0.1232

  	
   

  	
  0.1074

  	
   

  	
  0.1021

  	
   

  	
  0.1021

  	
   

  
	
  $105.00

  	
   

  	
  0.1620

  	
   

  	
  0.1435

  	
   

  	
  0.1246

  	
   

  	
  0.1046

  	
   

  	
  0.0846

  	
   

  	
  0.0739

  	
   

  	
  0.0739

  	
   

  
	
  $110.00

  	
   

  	
  0.1491

  	
   

  	
  0.1308

  	
   

  	
  0.1118

  	
   

  	
  0.0907

  	
   

  	
  0.0677

  	
   

  	
  0.0492

  	
   

  	
  0.0492

  	
   

  
	
  $115.00

  	
   

  	
  0.1383

  	
   

  	
  0.1205

  	
   

  	
  0.1017

  	
   

  	
  0.0805

  	
   

  	
  0.0562

  	
   

  	
  0.0299

  	
   

  	
  0.0299

  	
   

  
	
  $120.00

  	
   

  	
  0.1290

  	
   

  	
  0.1120

  	
   

  	
  0.0939

  	
   

  	
  0.0731

  	
   

  	
  0.0488

  	
   

  	
  0.0233

  	
   

  	
  0.0233

  	
   

  
	
  $125.00

  	
   

  	
  0.1210

  	
   

  	
  0.1049

  	
   

  	
  0.0876

  	
   

  	
  0.0677

  	
   

  	
  0.0444

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  
	
  $150.00

  	
   

  	
  0.0922

  	
   

  	
  0.0807

  	
   

  	
  0.0680

  	
   

  	
  0.0535

  	
   

  	
  0.0370

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  
	
  $175.00

  	
   

  	
  0.0732

  	
   

  	
  0.0653

  	
   

  	
  0.0563

  	
   

  	
  0.0458

  	
   

  	
  0.0337

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  
	
  $200.00

  	
   

  	
  0.0592

  	
   

  	
  0.0539

  	
   

  	
  0.0477

  	
   

  	
  0.0402

  	
   

  	
  0.0312

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  

(1)             The
Share Price set forth in the table will be adjusted as of any date on which the
Conversion Price is adjusted. The adjusted Share Prices will equal the Share
Prices applicable immediately prior to the adjustment multiplied by a fraction,
the numerator of which is the Conversion Price as so adjusted and the
denominator of which is the Conversion Price immediately prior to the
adjustment to the Conversion Price. In addition, the number of Additional
Shares in the table will be subject to adjustment in a manner corresponding to
the adjustments made in the Conversion Price.

(ii)   The exact Share Price and Effective Date may
not be set forth in the table above, in which case:

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

 12
 

 

 

(B)   If the Share Price is in excess of US$200.00
per share (subject to adjustment as per the table above), no Additional Shares
will be issued upon conversion of the Convertible Preference Shares.

(C)   If the Share Price is less than or equal to
US$65.86 per share (subject to adjustment as per the table above), no
Additional Shares will be issued upon conversion of the Convertible Preference
Shares.

Notwithstanding
the foregoing, in no event will the total number of common shares issuable upon
conversion of the Convertible Preference Shares above exceed 1.5184 Common
Shares per US$100 Liquidation Preference per Convertible Preference Share,
subject to adjustment pursuant to Section 7.

5.     Voting.

(a)   The
Convertible Preference Shares shall have no voting rights except as set forth
below or in the Bye-Laws or as otherwise required by Bermuda law from time to time:

(i)    If and
whenever at any time or times a Voting Rights Triggering Event occurs, then the
holders of Convertible Preference Shares, voting as a single class with any
other series of preference shares having similar voting rights that are
exercisable (the “Voting Rights Class”), will be entitled at the next
annual general or special general meeting to elect two directors to the Board
of Directors. Upon the election of any such additional directors, the number of
directors that comprise the Board of Directors may be increased by such number
of additional directors.

(ii)   Such voting
rights may be exercised at a special general meeting of the holders of shares
including the Convertible Preference Shares comprising the Voting Rights Class,
called as hereinafter provided, or at any general meeting held for the purpose
of electing directors until such time as all dividends in arrears on the
Convertible Preference Shares shall have been paid in full, at which time or
times such voting rights shall terminate. The Company will facilitate
the election or appointment of these two directors in a manner consistent with
the Bye-laws and applicable law.  The
terms of the directors so elected will be determined in accordance with the
Bye-laws.  If such voting rights terminate
before such directors’ term of office would otherwise expire, the Board of
Directors may ask such directors to tender

 13
 

 

 

their resignation as
directors upon termination of such voting rights.

(iii)  At any time
when such voting rights shall have vested in holders of shares including the
Convertible Preference Shares comprising the Voting Rights Class, the Chairman
of the Company or the Board of Directors may call, and, upon written request of
the record holders of shares representing at least twenty-five percent (25%) of
the voting power of the shares then comprising the Voting Rights Class,
addressed to the Secretary of the Company, the Board of Directors shall call a
special general meeting of the holders of shares then comprising the Voting
Rights Class. Such meeting shall be convened, and notice thereof shall be
given, in accordance with the Bye-Laws. Notwithstanding the provisions of this
Section 5(a)(iii), no such special general meeting shall be called during a
period within the 60 days immediately preceding the date fixed for the next
annual general meeting of shareholders, in which such case, the election of
directors pursuant to Section 5(a)(i) shall be held at such annual general
meeting of shareholders.

(iv)  At any meeting
held for the purpose of electing directors at which the holders of shares
including the Convertible Preference Shares comprising the Voting Rights Class
shall have the right to elect directors as provided herein, the presence in
person or by proxy of the holders of shares representing more than fifty
percent (50%) in voting power of the then issued and outstanding shares
comprising the Voting Rights Class shall be required and shall be sufficient to
constitute a quorum of such class for the election of directors by such class. The
affirmative vote of the holders of Convertible Preference Shares constituting a
majority of the Convertible Preference Shares present at such meeting, in
person or by proxy, shall be sufficient to elect any such director.

(v)   For so long as
the foregoing voting rights are vested in the holders of the Convertible
Preference Shares, any vacancy in respect of any director elected pursuant to
the voting rights created under this Section 5(a) shall be filled only by vote
of the holders of shares including the Convertible Preference Shares comprising
the Voting Rights Class at a special general meeting called in accordance with
the procedures set forth in this Section 5, or, if no such special general
meeting is called, at the next annual general meeting of shareholders.

 14

 

 

(vi)  So long as any
Convertible Preference Shares remain issued and outstanding, unless a greater
percentage shall then be required by law, the affirmative vote or consent of
the holders of at least 66% of the issued and outstanding Convertible
Preference Shares voting or consenting, as the case may be, separately as one
class, will be required for amendments to the Company’s memorandum of
association, the Bye-Laws or this Certificate of Designation that would vary
adversely the specified rights, preferences, privileges or voting rights of
holders of Convertible Preference Shares.

(vii) In exercising
the voting rights set forth in this Section 5(a) or Section 5(c), the Bye-Laws
or otherwise under Bermuda law, each Convertible Preference Share shall be
entitled to one vote.

(b)   The Company
may authorize or increase the authorized amount of Common Shares or
undesignated preference shares, or create or issue any class or series of
Parity Shares or Junior Shares, without the consent of the holders of
Convertible Preference Shares, and in taking such actions the Company shall be
deemed not to have varied adversely the rights, preferences, privileges or
voting rights of holders of Convertible Preference Shares.

(c)   So long as any
Convertible Preference Shares remain issued and outstanding the affirmative
vote or consent of the holders of at least 66% of the issued and outstanding
Convertible Preference Shares voting or consenting, as the case may be,
separately as one class, will be required to authorize, increase the authorized
amount of, or issue any class or series of Senior Shares.

6.     Liquidation
Rights.

(a)   In the event
of any liquidation, winding-up or dissolution of the Company, whether voluntary
of involuntary, each holder of Convertible Preference Shares shall be entitled
to receive and to be paid, out of the assets of the Company available for
distribution to its shareholders, the Liquidation Preference, in preference to
the holders of, and before any payment or distribution is made on, any Junior
Shares, including, without limitation, on any Common Shares.

(b)   Neither the
sale, conveyance, exchange or transfer (for cash, shares, securities or other
consideration) of all or substantially all the assets or business of the
Company (other than in connection with the liquidation, winding-up or
dissolution of its business) nor the merger,

 15
 

 

 

amalgamation
or consolidation of the Company into or with any other Person shall be deemed
to be a liquidation, winding-up or dissolution, voluntary or involuntary, for
the purposes of this Section 6.

(c)   After the
payment to the holders of the Convertible Preference Shares of the Liquidation
Preference provided for in this Section 6, the holders of Convertible
Preference Shares shall have no right or claim to any of the remaining assets
of the Company.

(d)   In the event
the assets of the Company available for distribution to the holders of
Convertible Preference Shares upon any liquidation, winding-up or dissolution
of the Company, whether voluntary or involuntary, shall be insufficient to pay
in full all amounts to which such holders are entitled pursuant to Section
6(a), no such distribution shall be made on account of any Parity Shares upon
such liquidation, dissolution or winding-up unless proportionate distributable
amounts shall be paid on account of the Convertible Preference Shares, ratably,
in proportion to the full distributable amounts for which holders of the
Convertible Preference Shares and the Parity Shares are entitled upon such
liquidation, dissolution or winding-up.

7.     Conversion.

(a)   Each holder of
Convertible Preference Shares shall have the right, at its option, exercisable
at any time and from time to time from the Issue Date to convert, subject to
the terms and provisions of this Section 7, and subject to the Company being
able to complete such transactions in compliance with applicable law, any or
all of such holder’s Convertible Preference Shares. In such case, such
converted Convertible Preference Shares shall be converted into such whole
number of fully paid and non-assessable Common Shares as is equal, subject to
Section 7(g), to the product of the number of Convertible Preference Shares
being so converted multiplied by the quotient of (i) the Liquidation Preference
divided by (ii) the Conversion Price (as defined below) then in effect.

The conversion right of a holder
of Convertible Preference Shares shall be exercised by the holder by the
surrender to the Company of the certificates representing shares to be
converted at any time during usual business hours at its principal place of
business or the offices of its duly appointed Transfer Agent to be maintained
by it, accompanied by written notice to the Company in the form of Exhibit B
that the holder elects to convert all or a portion of the Convertible Preference
Shares represented by such certificate and specifying the name or names (with
address) in which a certificate or certificates for Common Shares are to be
issued and (if so required by the Company or its duly appointed Transfer Agent)
by a written instrument or instruments of transfer in form reasonably

 16
 

 

 

satisfactory to the Company or
its duly appointed Transfer Agent duly executed by the holder or its duly
authorized legal representative and transfer tax stamps or funds therefor, if
required pursuant to Section 7(i) . Immediately prior to the close of business
on the date of receipt by the Company or its duly appointed Transfer Agent of
notice of conversion of Convertible Preference Shares, each converting holder
of Convertible Preference Shares shall become the holder of record of the
Common Shares into which such holder’s Convertible Preference Shares are
convertible notwithstanding that certificates representing such Common Shares
shall not then be actually delivered to such holder. On the date of any
conversion, all rights with respect to the Convertible Preference Shares so
converted, including the rights, if any, to receive notices, will terminate,
except for the rights of holders thereof to (i) receive certificates for the
number of Common Shares into which such Convertible Preference Shares have been
converted and cash, in lieu of any fractional shares as provided in Section
7(f); and (ii) exercise the rights to which they are entitled as holders of
Common Shares.

(b)   If the last
day for the exercise of the conversion right shall not be a Business Day, then
such conversion right may be exercised on the next preceding Business Day.

(c)   The Conversion
Price shall be subject to adjustment as follows:

(i)    In case the
Company shall at any time or from time to time (A) pay a dividend (or other
distribution) payable on the Common Shares in Common Shares of the Company
(other than the issuance of Common Shares in connection with the conversion of
preference shares); (B) subdivide the issued and outstanding Common Shares into
a larger number of Common Shares; (C) consolidate or combine the issued and
outstanding Common Shares into a smaller number of Common Shares; (D) issue any
Common Shares in a reclassification of the Common Shares; or (E) pay a dividend
or make a bonus issue or distribution to all holders of Common Shares (other
than a dividend or bonus issue or distribution subject to Section 7(c)(ii))
pursuant to a shareholder rights plan, “poison pill” or similar arrangement and
excluding dividends payable on the Convertible Preference Shares then, and in
each such case, the Conversion Price in effect immediately prior to such event
shall be adjusted (and any other appropriate actions shall be taken by the
Company) so that the holder of any Convertible Preference Shares thereafter
surrendered for conversion shall be entitled to receive the number of Common
Shares that such holder would have owned or would have been entitled to receive
upon or by reason of any of the events described above, had such Convertible
Preference Shares

 17
 

 

 

been
converted into Common Shares immediately prior to the occurrence of such event.
An adjustment made pursuant to this Section 7(c)(i) shall become effective
retroactively (x) in the case of any such dividend or bonus issue or
distribution, to the day immediately following the close of business on the
record date for the determination of holders of Common Shares entitled to
receive such dividend or bonus issue or distribution or (y) in the case of any
such subdivision, consolidation, combination or reclassification, to the close
of business on the day upon which such corporate action becomes effective.

(ii)   In case the
Company shall at any time or from time to time issue to all holders of its
Common Shares rights, options or warrants entitling the holders thereof to
subscribe for or purchase Common Shares (or securities convertible into or
exchangeable for Common Shares) at a price per share less than the Market Value
for the period ending on the date of issuance (treating the price per share of
any security convertible or exchangeable or exercisable into Common Shares as
equal to (A) the sum of the price paid to acquire such security convertible,
exchangeable or exercisable into Common Shares plus any additional
consideration payable (without regard to any anti-dilution adjustments) upon
the conversion, exchange or exercise of such security into Common Shares
divided by (B) the number of Common Shares into which such convertible,
exchangeable or exercisable security is initially convertible, exchangeable or
exercisable), other than (i) issuances of such rights, options or warrants if
the holder of Convertible Preference Shares would be entitled to receive such
rights, options or warrants upon conversion at any time of Convertible Preference
Shares into Common Shares and (ii) issuances that are subject to certain
triggering events (until such time as such triggering events occur), then, and
in each such case, the Conversion Price then in effect shall be adjusted by
dividing the Conversion Price in effect on the day immediately prior to the
record date of such issuance by a fraction (y) the numerator of which shall be
the sum of the number of Common Shares issued and outstanding on such record
date plus the number of additional Common Shares issued or to be issued upon or
as a result of the issuance of such rights, options or warrants (or the maximum
number into or for which such convertible or exchangeable securities initially
may convert or exchange or for which such options, warrants or other rights
initially may be exercised) and (z) the denominator of which shall be the sum
of the number of Common Shares issued and

 18
 

 

 

outstanding
on such record date plus the number of Common Shares which the aggregate
consideration for the total number of such additional Common Shares so issued
(or into or for which such convertible or exchangeable securities may convert
or exchange or for which such options, warrants or other rights may be
exercised plus the aggregate amount of any additional consideration initially
payable upon the conversion, exchange or exercise of such security) would
purchase at the Market Value for the period ending on the date of conversion;
provided, that if the Company distributes rights or warrants (other than those
referred to above in this subparagraph (c)(ii)) pro rata to the holders of
Common Shares, so long as such rights or warrants have not expired or been
redeemed by the Company, (y) the holder of any Convertible Preference Shares
surrendered for conversion shall be entitled to receive upon such conversion,
in addition to the Common Shares then issuable upon such conversion (the “Conversion
Shares”), a number of rights or warrants to be determined as follows: (i)
if such conversion occurs on or prior to the date for the distribution to the
holders of rights or warrants of separate certificates evidencing such rights
or warrants (the “Distribution Date”), the same number of rights or
warrants to which a holder of a number of Common Shares equal to the number of
Conversion Shares is entitled at the time of such conversion in accordance with
the terms and provisions applicable to the rights or warrants and (ii) if such
conversion occurs after the Distribution Date, the same number of rights or
warrants to which a holder of the number of Common Shares into which such
Convertible Preference Shares were convertible immediately prior to such
Distribution Date would have been entitled on such Distribution Date had such
Convertible Preference Shares been converted immediately prior to such
Distribution Date in accordance with the terms and provisions applicable to the
rights and warrants and (z) the Conversion Price shall not be subject to
adjustment on account of any declaration, distribution or exercise of such
rights or warrants.

(iii)  In case the
Company shall at any time make a distribution, by dividend or otherwise, to all
holders of its Common Shares consisting exclusively of cash (excluding any cash
portion of distributions referred to in clause ‎(E)
of paragraph (c)(i) above and cash distributed upon a merger, amalgamation or
consolidation to which paragraph 7(g) below applies) in an amount per share of
Common Shares that, when combined with the per share amounts of all other
all-cash distributions to all

 19
 

 

 

holders
of Common Shares made within the 90-day period ending on the record date for
the distribution giving rise to an adjustment pursuant to this Section
7(c)(iii), exceeds US$0.16 per share of Common Shares (the “Dividend
Threshold Amount”), then the Conversion Price will be adjusted by
multiplying:

(A)  the Conversion
Price in effect immediately prior to the close of business on the record date
fixed for the determination of holders of Common Shares entitled to receive
such distribution by

(B)   a fraction,
the numerator of which will be the Market Value of a Common Share of the
Company on the date on which “ex-dividend trading” commences for such a
distribution minus the amount of cash per Common Share so distributed in excess
of the Dividend Threshold Amount for which an adjustment has not otherwise been
made pursuant to this Section 7(c)(iii) and the denominator of which will be
the Market Value of a Common Share on the date on which “ex-dividend trading”
commences for such a distribution. For the purposes of this paragraph, “ex-dividend
trading” means the first date on which the Common Shares trade on the
applicable exchange or market without the right to receive the applicable
distribution.

Subject to Section 7(d), such adjustment shall become effective immediately
after the record date for the determination of holders of Common Shares
entitled to receive the distribution giving rise to an adjustment pursuant to
this Section 7(c)(iii). The Dividend Threshold Amount is subject to adjustment
under the same circumstances under which the Conversion Price is subject to
adjustment pursuant to Section 7(c)(i) or Section 7(c)(ii). If an adjustment is
required to be made under this Section 7(c)(iii) as a result of a cash dividend
in any quarterly period that exceeds the Dividend Threshold Amount, the
adjustment will be based upon the amount by which the distribution exceeds the
Dividend Threshold Amount (the “Dividend Increase”). If an adjustment is
required to be made under this Section 7(c)(iii) other than as a result of a
quarterly dividend, the adjustment will be based upon the full amount of the
dividend increase. Notwithstanding the foregoing, in no event will the
Conversion Price be less than US$65.86, subject to adjustment as set forth in
this Section 7(c).

 

 20

 

 

(iv)  In case the
Company at any time or from time to time shall take any action affecting its
Common Shares (it being understood that the issuance or sale of Common Shares
(or securities convertible into or exchangeable for Common Shares, or any
options, warrants or other rights to acquire Common Shares) to any Person at a
price per share less than the Conversion Price then in effect shall not be
deemed such an action), other than an action described in any of Section
7(c)(i) through Section 7(c)(iii), inclusive, or Section 7(g), then the
Conversion Price shall be adjusted in such manner and at such time as the Board
of Directors in good faith determines to be equitable in the circumstances
(such determination to be evidenced in a resolution, a certified copy of which
shall be mailed to the holders of the Convertible Preference Shares).

(v)   In case the Company or any of its
subsidiaries shall at any time complete a tender or exchange offer for the
Company’s Common Shares that involves an aggregate consideration that, together
with (a) any cash and other consideration payable in a tender or exchange offer
by the Company or any of its subsidiaries for Common Shares of the Company
expiring within the then-preceding 12 months in respect of which no adjustment
has been made and (b) the aggregate amount of any such all-cash distributions
referred to in Section 7(c)(iii) to all holders of the Company’s Common Shares
within the preceding 12 months in respect of which no adjustments have been
made, exceeds 15% of the market capitalization of the Company on the expiration
of such tender offer.

(vi)  In case the
Company makes a distribution to all holders of Common Shares consisting of
evidences of indebtedness, shares other than Common Shares or assets (including
securities, but excluding those dividends, rights, options, warrants and
distributions referred to in the preceding items).

(vii) Notwithstanding
anything herein to the contrary, no adjustment under this Section 7(c) need be
made to the Conversion Price unless such adjustment would require an increase
or decrease of at least 1.0% of the Conversion Rate then in effect. Any lesser
adjustment shall be carried forward and shall be made at the time of and
together with the next subsequent adjustment, if any, which, together with any
adjustment or adjustments so carried forward, shall amount to an increase or
decrease of at least 1.0% of such Conversion Price, provided that

 21
 

 

 

with respect to
adjustments to be made to the Conversion Price in connection with cash
dividends paid by the Company, the Company will make such adjustments,
regardless of whether such aggregate adjustments amount to 1.0% or more of the
Conversion Price, no later than March 1 of each calendar year.

(viii)             The
Company reserves the right to make such reductions in the Conversion Price in
addition to those required in the foregoing provisions as it considers
advisable in order that any event treated for U.S. federal income tax purposes
as a dividend of shares or share rights will not be taxable to the recipients.
In the event the Company elects to make such a reduction in the Conversion
Price, the Company will comply with the requirements of Rule 14e-1 under the
Exchange Act, and any other securities laws and regulations under the Exchange
Act if and to the extent that such laws and regulations are applicable in
connection with the reduction of the Conversion Price.

(d)   If the Company
shall take a record of the holders of its Common Shares for the purpose of
entitling them to receive a dividend or other distribution, and shall
thereafter (and before the dividend or distribution has been paid or delivered
to shareholders) legally abandon its plan to pay or deliver such dividend or
distribution, then thereafter no adjustment in the Conversion Price then in effect
shall be required by reason of the taking of such record.

(e)   Upon any
increase or decrease in the Conversion Price, then, and in each such case, the
Company promptly shall deliver to each holder of Convertible Preference Shares
a certificate signed by an Officer, setting forth in reasonable detail the
event requiring the adjustment and the method by which such adjustment was
calculated and specifying the increased or decreased Conversion Price then in
effect following such adjustment.

(f)    No fractional
shares or securities representing fractional Common Shares shall be issued upon
the conversion of any Convertible Preference Shares, whether voluntary or
mandatory, or in respect of dividend payments on the Convertible Preference
Shares made in Common Shares. If more than one Convertible Preference Share
shall be surrendered for conversion at one time by the same holder, the number
of Common Shares issuable upon conversion thereof shall be computed on the
basis of the aggregate Liquidation Preference of the Convertible Preference
Shares so surrendered. If the conversion of any Convertible Preference Shares
results in a fraction, an amount equal to such fraction of the Closing Sale
Price at the close of business on the Trading Day next

 22
 

 

 

preceding
the date of conversion, shall be paid to such holder in cash by the Company.

(g)   In the event
of any reclassification of issued and outstanding Common Shares (other than a
change in par value, or from par value to no par value, or from no par value to
par value), or in the event of any consolidation, amalgamation or merger of the
Company with or into another Person or any consolidation, merger or
amalgamation of another Person with or into the Company (other than a
consolidation, amalgamation or merger in which the Company is the continuing,
resulting or surviving Person and which does not result in any reclassification
or change of issued and outstanding Common Shares), or in the event of any sale
or other disposition to another Person of all or substantially all of the
assets of the Company (computed on a consolidated basis) (any of the foregoing,
a “Transaction”), each Convertible Preference Share then issued and
outstanding shall, without the consent of any holder of Convertible Preference
Shares, become convertible at any time, at the option of the holder thereof,
only into the kind and amount of securities (of the Company or another issuer),
cash and other property receivable upon such Transaction by a holder of the
number of Common Shares into which such Convertible Preference Shares could
have been converted immediately prior to such Transaction, after giving effect
to any adjustment event. The provisions of this Section 7(g) and any
equivalent thereof in any such securities similarly shall apply to successive
Transactions. The provisions of this Section 7(g) shall be the sole right
of holders of Convertible Preference Shares in connection with any Transaction
and, subject to applicable law, such holders shall have no separate vote
thereon.

(h)   The Company
shall at all times reserve and keep available for issuance upon the conversion
of the Convertible Preference Shares such number of its authorized but unissued
Common Shares as will from time to time be sufficient to permit the conversion
of all issued and outstanding Convertible Preference Shares, and shall use its
best efforts to take all action required to increase the authorized number of
Common Shares if at any time there shall be insufficient unissued Common Shares
to permit such reservation or to permit the conversion of all issued and
outstanding Convertible Preference Shares.

(i)    The issuance
or delivery of certificates for Common Shares upon the conversion of
Convertible Preference Shares shall be made without charge to the converting
holder of Convertible Preference Shares for such certificates or for any tax in
respect of the issuance or delivery of such certificates or the securities
represented thereby, and such certificates shall be issued or delivered in the
respective names of, or in such names as

 23
 

 

 

may
be directed by, the holders of the Convertible Preference Shares converted;
provided, however, that the Company shall not be required to pay any tax which
may be payable in respect of any transfer involved in the issuance and delivery
of any such certificate in a name other than that of the holder of the
Convertible Preference Shares converted, and the Company shall not be required
to issue or deliver such certificate unless or until the Person or Persons
requesting the issuance or delivery thereof shall have paid to the Company the
amount of such tax or shall have established to the reasonable satisfaction of
the Company that such tax has been paid.

8.     Mandatory
Conversion.

(a)   At any time on
or after December 1, 2011, the Company may, at its option, cause the
Convertible Preference Shares to be automatically converted into Common Shares
at the Conversion Price pursuant to this Section 8(a) if the closing price of
the Common Shares equals or exceeds 130% of the Conversion Price then in effect
for at least 20 Trading Days in any consecutive 30-day trading period on the
NYSE (or such other national or regional securities exchange or the principal
other U.S. market on which the Common Shares are then traded), including the
last Trading Day of such 30-Trading Day period, ending on the Trading Day prior
to the Company’s issuance of a press release announcing the mandatory
conversion as described in Section 8(b).

(b)   To exercise
the mandatory conversion right described in Section 8(a), the Company must
issue a press release prior to the opening of business on the first Trading Day
following any date on which the conditions described in Section 8(a) are met,
announcing such a mandatory conversion. The Company shall also give notice by
mail or by publication (with subsequent prompt notice by mail) to the record
holders of Convertible Preference Shares (not more than four Business Days
after the date of the press release) of the mandatory conversion announcing the
Company’s intention to convert the Convertible Preference Shares. The
conversion date will be a date selected by the Company (the “Mandatory
Conversion Date”) and will be no more than ten days after the date on which
the Company issues the press release described in this Section 8(b).

(c)   In addition to
any information required by applicable law or regulation, the press release and
notice of a mandatory conversion described in Section 8(b) shall state, as
appropriate: (i) the Mandatory Conversion Date; (ii) the number of Common
Shares to be issued upon conversion of each Convertible Preference Share; (iii)
the number of Convertible Preference Shares to be converted; and (iv) that
dividends on

 24
 

 

 

the
Convertible Preference Shares to be converted will cease to accrue on the
Mandatory Conversion Date.

(d)   On and after
the Mandatory Conversion Date, dividends will cease to accrue on the
Convertible Preference Shares called for a mandatory conversion pursuant to
Section 8(a) and all rights of holders of such Convertible Preference Shares
will terminate, except for the right to receive the Common Shares into which
the Convertible Preference Shares are convertible and cash in lieu of any
fractional Common Shares in accordance with Section 7(f). The dividend payment
with respect to the Convertible Preference Shares called for a mandatory
conversion pursuant to Section 8(a) on a date during the period between the
close of business on any Dividend Record Date to the close of business on the
corresponding Dividend Payment Date will be payable on such Dividend Payment
Date to the record holder of such Convertible Preference Share on such Dividend
Record Date if such Convertible Preference Share has been converted after such
Dividend Record Date and prior to such Dividend Payment Date. Except as
provided in the immediately preceding sentence with respect to a mandatory
conversion pursuant to Section 8(a), no payment or adjustment will be made upon
conversion of Convertible Preference Shares for Accrued Dividends or for
dividends with respect to the Common Shares issued upon such conversion.

(e)   The Company
may not authorize, issue a press release or give notice of any mandatory
conversion pursuant to Section 8(a) unless, prior to giving the conversion
notice, all Accumulated Dividends on the Convertible Preference Shares for periods
ended prior to the date of such conversion notice shall have been paid.

(f)    In addition
to the mandatory conversion right described in Section 8(a), if there are fewer
than 250,000 Convertible Preference Shares issued and outstanding, the Company
shall have the right, at any time on or after December 1, 2011, at its option,
to cause the Convertible Preference Shares to be automatically converted into
that number of Common Shares equal to the quotient of (i) the Liquidation
Preference divided by (ii) the lesser of (A) the Conversion Price then in
effect and (B) the Market Value for the period ending on the second Trading Day
immediately prior to the Mandatory Conversion Date, with any resulting
fractional Common Shares to be settled in cash in accordance with Section 7(f).
The provisions of clauses ‎(b), ‎(c),
‎(d) and ‎(e) of this
Section 8 shall apply to any mandatory conversion pursuant to this clause ‎(f); provided that (i) the Mandatory Conversion Date
described in Section 8(b) shall not be fewer than 15 days nor more than 30 days
after the date on which the Company issues a press release pursuant to Section
8(b) announcing such mandatory conversion and (ii) the press release and notice
of mandatory

 25
 

 

 

conversion
described in Section 8(c) will not state the number of Common Shares to be
issued upon conversion of each Convertible Preference Share.

(g)   Notwithstanding
any other provision of this Certificate of Designation, any delivery of Common
Shares issuable upon conversion of Convertible Preference Shares may be
effected by way of share repurchase and issuance, reclassification, bonus
issue, share consolidation, share subdivision or any other manner permitted by
law, and any delivery of Common Shares in payment of any dividend may be
effected by bonus issue or in any other manner permitted by law.

9.     Consolidation,
Amalgamation, Merger and Sale of Assets.

(a)   The Company,
without the consent of the holders of any of the issued and outstanding
Convertible Preference Shares voting separately as a class, may consolidate or
amalgamate with or merge into any other Person or convey, transfer or lease all
or substantially all its assets to any Person or may permit any Person to
consolidate or amalgamate with or merge into, or transfer or lease all or
substantially all its properties to, the Company; provided, however, that (a)
the continuing company, successor, transferee or lessee is incorporated or
organized under the laws of Bermuda, the United States or any political
subdivision thereof, any full member state of the European Union, Canada or any
political subdivision thereof, Australia or Switzerland; (b) the Convertible
Preference Shares will become shares of such continuing company, successor,
transferee or lessee, having in respect of such continuing company, successor,
transferee or lessee the same powers, preferences and relative participating,
optional or other special rights and the qualification, limitations or
restrictions thereon that the Convertible Preference Shares had immediately
prior to such transaction; and (c) the Company delivers to the Transfer Agent
an Officers’ Certificate and an Opinion of Counsel stating that such
transaction complies with this Certificate of Designation. The foregoing
transactions shall be deemed not to vary adversely the rights of the holders of
Convertible Preference Shares.

(b)   Upon any
consolidation or amalgamation by the Company with, or merger by the Company
into, any other person or any conveyance, transfer or lease of all or
substantially all the assets of the Company as described in Section 9(a), the
continuing company or successor resulting from such consolidation or
amalgamation or into which the Company is merged or the transferee or lessee to
which such conveyance, transfer or lease is made, will succeed to, and be
substituted for, and may exercise every right and power of, the Company under
the Convertible Preference Shares, and thereafter, except in the case of a lease,
the predecessor (if still

 26
 

 

 

in
existence) will be released from its obligations and covenants with respect to
the Convertible Preference Shares.

10.   Certificates.

(a)   Form and
Dating. The Convertible Preference Shares and the Transfer Agent’s
certificate of authentication shall be substantially in the form set forth in
Exhibit A, which is hereby incorporated in and expressly made a part of this
Certificate of Designation. The Convertible Preference Shares certificate may
have notations, legends or endorsements required by law, stock exchange rule,
agreements to which the Company is subject, if any, or usage (provided that any
such notation, legend or endorsement is in a form acceptable to the Company).
Each Convertible Preference Shares certificate shall be dated the date of its
authentication. The terms of the Convertible Preference Shares certificate set
forth in Exhibit A are part of the terms of this Certificate of Designation.

(i)    Global Convertible Preference Shares. The
Convertible Preference Shares shall, upon issue, be represented initially in
the form of one or more fully registered global certificates with the global
securities legend set forth in Exhibit A hereto (the “Global Convertible
Preference Shares”), which shall be deposited on behalf of the purchasers
represented thereby with the Transfer Agent, as custodian for DTC (or with such
other custodian as DTC may direct), and registered in the name of DTC or a
nominee of DTC, duly executed by the Company and authenticated by the Transfer
Agent as hereinafter provided. The number of Convertible Preference Shares
represented by Global Convertible Preference Shares may from time to time be
increased or decreased by adjustments made on the register of members of the
Company and recorded, as appropriate, on the records of the Transfer Agent and
DTC or its nominee as hereinafter provided.

(ii)   Book-Entry Provisions. In the event Global
Convertible Preference Shares are deposited with or on behalf of DTC, the
Company shall execute and the Transfer Agent shall authenticate and deliver
initially one or more Global Convertible Preference Shares certificates that
(a) shall be registered in the name of DTC as depository for such Global
Convertible Preference Shares or the nominee of DTC and (b) shall be delivered
by the Transfer Agent to DTC or pursuant to DTC’s instructions or held by the
Transfer Agent as custodian for DTC.

Members of, or participants in, DTC (“Agent Members”)
shall have no rights under this Certificate of Designation with respect to any
Global Convertible

 27
 

 

 

Preference Shares held on their
behalf by DTC or by the Transfer Agent as the custodian of DTC or under such
Global Convertible Preference Shares, and DTC (or its nominee) may be treated
by the Company, the Transfer Agent and any agent of the Company or the Transfer
Agent as the absolute owner of such Global Convertible Preference Shares for
all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall
prevent the Company, the Transfer Agent or any agent of the Company or the
Transfer Agent from giving effect to any written certification, proxy or other
authorization furnished by DTC or impair, as between DTC and its Agent Members,
the operation of customary practices of DTC governing the exercise of the
rights of a holder of a beneficial interest in any Global Convertible
Preference Shares.

(iii)  Certificated Convertible Preference Shares;
Certificated Common Shares. Except as provided in this paragraph
11(a) or in paragraph 11(c), owners of beneficial interests in Global
Convertible Preference Shares will not be entitled to receive physical delivery
of certificates representing Convertible Preference Shares in fully registered
form (“Certificated Convertible Preference Shares”).

(b)   Execution
and Authentication. Two Officers shall sign the Convertible Preference
Shares certificate for the Company by manual or facsimile signature, under the
common seal of the Company if appropriate, or a facsimile thereof.

If an Officer whose signature is on a Convertible
Preference Shares certificate no longer holds that office at the time the
Transfer Agent authenticates the Convertible Preference Shares certificate, the
Convertible Preference Shares certificate shall be valid nevertheless.

A Convertible Preference Shares certificate shall not be
valid until an authorized signatory of the Transfer Agent manually signs the
certificate of authentication on the Convertible Preference Shares certificate.
The signature shall be conclusive evidence that the Convertible Preference
Shares certificate has been authenticated under this Certificate of
Designation.

The Transfer Agent shall authenticate and deliver
certificates for up to 6,900,000 Convertible Preference Shares for original
issue upon a written order of the Company signed by two Officers or by an
Officer and an Assistant Treasurer of the Company. Such order shall specify the
number of Convertible Preference Shares to be authenticated and the date on
which the original issue of Convertible Preference Shares is to be
authenticated. The Transfer Agent may appoint an authenticating agent
reasonably acceptable to the Company to authenticate the certificates for
Convertible

 28
 

 

 

Preference Shares. Unless limited
by the terms of such appointment, an authenticating agent may authenticate
certificates for Convertible Preference Shares whenever the Transfer Agent may
do so. Each reference in this Certificate of Designation to authentication by
the Transfer Agent includes authentication by such agent. An authenticating
agent has the same rights as the Transfer Agent or agent for service of notices
and demands.

(c)   Transfer
and Exchange. (i) Transfer and Exchange
of Certificated Convertible Preference Shares. When Certificated
Convertible Preference Shares are presented to the Transfer Agent with a
request to register the transfer of such Certificated Convertible Preference
Shares or to exchange such Certificated Convertible Preference Shares for an
equal number of Certificated Convertible Preference Shares, the Transfer Agent
shall register the transfer or make the exchange as requested if its reasonable
requirements for such transaction are met; provided, however, that the
Certificated Convertible Preference Shares surrendered for transfer or
exchange:

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

(B)   are being
transferred or exchanged pursuant to an effective registration statement under
the Securities Act or pursuant to clause ‎(ii) or ‎(iii) below.

(ii)   Restrictions on Transfer of Certificated Convertible
Preference Shares for a Beneficial Interest in Global Convertible Preference
Shares. Certificated Convertible Preference Shares may not be
exchanged for a beneficial interest in Global Convertible Preference Shares
except upon satisfaction of the requirements set forth below. Upon receipt by
the Transfer Agent of Certificated Convertible Preference Shares, duly endorsed
or accompanied by appropriate instruments of transfer, in form reasonably
satisfactory to the Company and the Transfer Agent, together with written
instructions directing the Transfer Agent to make an adjustment on the register
of members with respect to such Global Convertible Preference Shares to reflect
an increase in the number of Convertible

 29
 

 

 

Preference
Shares represented by the Global Convertible Preference Shares and to direct
DTC to make any appropriate corresponding adjustment, then the Transfer Agent
shall cancel such Certificated Convertible Preference Shares and cause, or
direct DTC to cause, in accordance with the standing instructions and
procedures existing between DTC and the Transfer Agent, the number of
Convertible Preference Shares represented by the Global Convertible Preference
Shares to be increased accordingly. If no Global Convertible Preference Shares
are then issued and outstanding, the Company shall issue and the Transfer Agent
shall authenticate, upon written order of the Company in the form of an
Officers’ Certificate, new Global Convertible Preference Shares representing
the appropriate number of shares.

(iii)  Transfer and Exchange of Global Convertible
Preference Shares. The transfer and exchange of Global Convertible
Preference Shares or beneficial interests therein shall be effected through
DTC, in accordance with this Certificate of Designation (including applicable
restrictions on transfer set forth herein, if any), and the procedures of DTC
therefor.

(iv)  Transfer of a Beneficial Interest in Global
Convertible Preference Shares for Certificated Convertible Preference Shares.

(A)  Any Person
having a beneficial interest in Convertible Preference Shares may upon request,
but only with the consent of the Company, exchange such beneficial interest for
Certificated Convertible Preference Shares representing the same number of
Convertible Preference Shares. Upon receipt by the Transfer Agent of written
instructions or such other form of instructions as is customary for DTC from
DTC or its nominee on behalf of any Person having a beneficial interest in
Global Convertible Preference Shares and upon receipt by the Transfer Agent of
a written order or such other form of instructions as is customary for DTC,
then, the Transfer Agent or DTC, at the direction of the Transfer Agent, will
cause, in accordance with the standing instructions and procedures existing
between DTC and the Transfer Agent, the number of Convertible Preference Shares
represented by the Global Convertible Preference Shares to be reduced on the
register of members and, following such reduction, the Company will execute and
the Transfer Agent will authenticate and deliver to the transferee Certificated
Convertible Preference Shares.

(B)   Certificated
Convertible Preference Shares issued in exchange for a beneficial interest in a
Global Convertible Preference Shares pursuant to this paragraph ‎10(c)(iv)
shall be registered in such names and

 30
 

 

 

in
such authorized denominations as DTC, pursuant to instructions from its direct
or indirect participants or otherwise, shall instruct the Transfer Agent. The
Transfer Agent shall deliver such Certificated Convertible Preference Shares to
the Persons in whose names such Convertible Preference Shares are so registered
in accordance with the instructions of DTC.

(v)   Restrictions on Transfer and Exchange of Global
Convertible Preference Shares. Notwithstanding any other provisions
of this Certificate of Designation (other than the provisions set forth in
paragraph ‎10(c)(vi)), Global Convertible Preference
Shares may not be transferred as a whole except by DTC to a nominee of DTC or
by a nominee of DTC to DTC or another nominee of DTC or by DTC or any such
nominee to a successor depository or a nominee of such successor depository.

(vi)  Authentication of Certificated Convertible Preference
Shares. If at any time:

(A)  DTC notifies
the Company that DTC is unwilling or unable to continue as depository for the
Global Convertible Preference Shares and a successor depository for the Global
Convertible Preference Shares is not appointed by the Company within 90 days
after delivery of such notice;

(B)   DTC ceases to
be a clearing agency registered under the Exchange Act and a successor
depository for the Global Convertible Preference Shares is not appointed by the
Company within 90 days; or

(C)   the Company,
in its sole discretion, notifies the Transfer Agent in writing that it elects
to cause the issuance of Certificated Convertible Preference Shares under this
Certificate of Designation,

then the Company will execute,
and the Transfer Agent, upon receipt of a written order of the Company signed
by two Officers or by an Officer and an Assistant Treasurer of the Company
requesting the authentication and delivery of Certificated Convertible
Preference Shares to the Persons designated by the Company, will authenticate
and deliver Certificated Convertible Preference Shares equal to the number of
Convertible Preference Shares represented by the Global Convertible Preference
Shares, in exchange for such Global Convertible Preference Shares.

 31

 

 

(vii) Cancellation or Adjustment of Global Convertible
Preference Shares. At such time as all beneficial interests in
Global Convertible Preference Shares have either been exchanged for
Certificated Convertible Preference Shares, converted or canceled, such Global
Convertible Preference Shares shall be returned to DTC for cancellation or
retained and canceled by the Transfer Agent. At any time prior to such
cancellation, if any beneficial interest in Global Convertible Preference
Shares is exchanged for Certificated Convertible Preference Shares, converted
or canceled, the number of Convertible Preference Shares represented by such
Global Convertible Preference Shares shall be reduced and an adjustment shall
be made on the books and records of the Transfer Agent with respect to such
Global Convertible Preference Shares, by the Transfer Agent or DTC, to reflect
such reduction.

(viii)             Obligations with Respect to Transfers and Exchanges
of Convertible Preference Shares.

(A)  To permit
registrations of transfers and exchanges, the Company shall execute and the
Transfer Agent shall authenticate Certificated Convertible Preference Shares
and Global Convertible Preference Shares as required pursuant to the provisions
of this paragraph 10.

(B)   All
Certificated Convertible Preference Shares and Global Convertible Preference
Shares issued upon any registration of transfer or exchange of Certificated
Convertible Preference Shares or Global Convertible Preference Shares shall be
the valid securities of the Company, entitled to the same benefits under this
Certificate of Designation as the Certificated Convertible Preference Shares or
Global Convertible Preference Shares surrendered upon such registration of
transfer or exchange.

(C)   Prior to due
presentment for registration of transfer of any Convertible Preference Shares,
the Transfer Agent and the Company may treat the Person in whose name such
Convertible Preference Shares are registered as the absolute owner of such
Convertible Preference Shares and neither the Transfer Agent nor the Company
shall be affected by notice to the contrary.

 32
 

 

 

(D)  No service
charge shall be made to a Holder for any registration of transfer or exchange
upon surrender of any Convertible Preference Shares certificate or Common
Shares certificate at the office of the Transfer Agent maintained for that
purpose. However, 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 Convertible Preference Shares
certificates or Common Shares certificates.

(ix)   No Obligation of the Transfer Agent.

(A)  The Transfer
Agent shall have no responsibility or obligation to any beneficial owner of
Global Convertible Preference Shares, a member of, or a participant in DTC or
any other Person with respect to the accuracy of the records of DTC or its
nominee or of any participant or member thereof, with respect to any ownership
interest in the Convertible Preference Shares or with respect to the delivery
to any participant, member, beneficial owner or other Person (other than DTC)
of any notice or the payment of any amount, under or with respect to such
Global Convertible Preference Shares. All notices and communications to be
given to the Holders and all payments to be made to Holders under the
Convertible Preference Shares shall be given or made only to the Holders (which
shall be DTC or its nominee in the case of the Global Convertible Preference
Shares). The rights of beneficial owners in any Global Convertible Preference
Shares shall be exercised only through DTC subject to the applicable rules and
procedures of DTC. The Transfer Agent may rely and shall be fully protected in
relying upon information furnished by DTC with respect to its members, participants
and any beneficial owners.

(B)   The Transfer
Agent shall have no obligation or duty to monitor, determine or inquire as to
compliance with any restrictions on transfer imposed under applicable law with
respect to any transfer of any interest in any Convertible Preference Shares
(including any transfers between or among DTC participants, members or
beneficial owners in any Global Convertible Preference Shares), other than to
examine the same to

 33
 

 

 

determine
substantial compliance as to form with the express requirements hereof.

(d)   Replacement
Certificates. If a mutilated Convertible Preference Shares certificate is
surrendered to the Transfer Agent or if the Holder of a Convertible Preference
Shares certificate claims that the Convertible Preference Shares certificate
has been lost, destroyed or wrongfully taken, the Company shall issue and the
Transfer Agent shall countersign a replacement Convertible Preference Shares
certificate if the reasonable requirements of the Transfer Agent are met. If required
by the Transfer Agent or the Company, such Holder shall furnish an indemnity
bond sufficient in the judgment of the Company and the Transfer Agent to
protect the Company and the Transfer Agent from any loss which either of them
may suffer if a Convertible Preference Shares certificate is replaced. The
Company and the Transfer Agent may charge the Holder for their expenses in
replacing a Convertible Preference Shares certificate.

(e)   Temporary
Certificates. Until definitive Convertible Preference Shares certificates
are ready for delivery, the Company may prepare and the Transfer Agent shall
countersign temporary Convertible Preference Shares certificates. Temporary
Convertible Preference Shares certificates shall be substantially in the form
of definitive Convertible Preference Shares certificates but may have
variations that the Company considers appropriate for temporary Convertible
Preference Shares certificates. Without unreasonable delay, the Company shall
prepare and the Transfer Agent shall countersign definitive Convertible
Preference Shares certificates and deliver them in exchange for temporary
Convertible Preference Shares certificates.

(f)    Cancellation.
(i) In the event the Company shall purchase or otherwise acquire Certificated
Convertible Preference Shares, the same shall thereupon be delivered to the
Transfer Agent for cancellation.

(ii)   At such time
as all beneficial interests in Global Convertible Preference Shares have either
been exchanged for Certificated Convertible Preference Shares, converted,
repurchased or canceled, such Global Convertible Preference Shares shall
thereupon be delivered to the Transfer Agent for cancellation.

(iii)  The Transfer
Agent and no one else shall cancel and destroy all Convertible Preference
Shares certificates surrendered for transfer, exchange, replacement or
cancellation and deliver a certificate of such destruction to the Company
unless the Company directs the Transfer Agent to deliver canceled

 34
 

 

 

Convertible
Preference Shares certificates to the Company. The Company may not issue new
Convertible Preference Shares certificates to replace Convertible Preference
Shares certificates to the extent they evidence Convertible Preference Shares
which the Company has purchased or otherwise acquired.

11.   Additional Rights
of Holders. [Reserved.]

12.   Other
Provisions.

(a)   With respect
to any notice to a holder of Convertible Preference Shares that is required to
be provided hereunder, neither failure to mail such notice, nor any defect
therein or in the mailing thereof, to any particular holder shall affect the
sufficiency of the notice or the validity of the proceedings referred to in
such notice with respect to the other holders or affect the legality or
validity of any distribution, rights, warrant, reclassification, consolidation,
amalgamation, merger, conveyance, transfer, dissolution, liquidation or
winding-up, or the vote upon any such action. Any notice that was mailed in the
manner herein provided shall be conclusively presumed to have been duly given
whether or not the holder receives the notice.

(b)   Convertible
Preference Shares issued and converted shall be in compliance with the
applicable requirements of Bermuda law, have the status of authorized but
unissued preference the Company undesignated as to series and may, along with
any and all other authorized but unissued preference shares of the Company, be
designated or redesignated and issued or reissued, as the case may be, as part
of any series of preference the Company, except that any issuance or reissuance
of Convertible Preference Shares must be in compliance with this Certificate of
Designation.

(c)   The
Convertible Preference Shares shall be issuable only in whole shares.

(d)   All notice
periods referred to herein shall commence on the date of the mailing of the
applicable notice.

 35

EXHIBIT A

FORM OF CONVERTIBLE PREFERENCE
SHARES

FACE OF SECURITY

[UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE
COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OF PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE& CO. OR 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.](1)

(1)             Subject to removal if
not a global security.

 

 

 

	
  Certificate Number

  	
  Number
  of 

  Cumulative Convertible

  
	
   

  	
  Perpetual
  Preference Shares

  
	
  [·]

  	
  [·]

  

 

 

CUSIP
NO.: [·]

4.875% Cumulative Convertible
Perpetual Preference Shares 

(liquidation preference US$100.00 per Cumulative 

Convertible Perpetual Preference Share) 

of 

Bunge Limited

Bunge Limited, a limited liability company formed under
the laws of Bermuda (the “Company”), hereby certifies that CEDE&CO.
(the “Holder”) is the registered owner of [·] fully paid and non-assessable preference shares of the Company designated
the 4.875% Cumulative Convertible Perpetual Preference Shares (liquidation preference
US$100.00 per Convertible Preference Share) (the “Convertible Preference
Shares”). The Convertible Preference Shares are transferable on the
register of members of the Company by the Transfer Agent, in person or by a
duly authorized attorney, upon surrender of this certificate duly endorsed and
in proper form for transfer. The designations, rights, privileges,
restrictions, preferences and other terms and provisions of the Convertible
Preference Shares represented hereby are set forth in and such shares shall in
all respects be subject to the provisions of the Certificate of Designation
authorized November 13, 2006, as the same may be amended from time to time (the
“Certificate of Designation”). Capitalized terms used herein but not
defined shall have the meaning given them in the Certificate of Designation.
The Company will provide a copy of the Certificate of Designation to a Holder
without charge upon written request to the Company at its principal place of
business.

Reference is hereby made to select provisions of the
Convertible Preference Shares set forth on the reverse hereof, and to the
Certificate of Designation, which select provisions and the Certificate of
Designation shall for all purposes have the same effect as if set forth at this
place.

Upon receipt of this certificate, the Holder is bound by
the Certificate of Designation and by the memorandum of association and
bye-laws of the Company and is entitled to the benefits thereunder.

Unless the Transfer Agent’s Certificate of Authentication
hereon has been properly executed, these Convertible Preference Shares shall
not be entitled to any benefit under the Certificate of Designation or be valid
or obligatory for any purpose.

 

IN WITNESS WHEREOF, the Company has executed this
certificate this [·] day of November, 2006. 

	
   

  	
  BUNGE LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

TRANSFER AGENT’S CERTIFICATE OF
AUTHENTICATION

These are the Convertible Preference Shares referred to
in the within-mentioned Certificate of Designation.

Dated:      , 2006 

	
   

  	
  MELLON INVESTOR SERVICES
  LLC, as Transfer Agent,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

 

REVERSE OF SECURITY

Dividends on each Convertible Preference Share shall be
payable at a rate per annum set forth in the face hereof or as provided in the
Certificate of Designation.

The Convertible Preference Shares shall be convertible
into the Company’s Common Shares in the manner and according to the terms set
forth in the Certificate of Designation.

The Company will furnish without charge to each holder
who so requests the powers, designations, preferences and relative,
participating, optional or other special rights of each class of shares and the
qualifications, limitations or restrictions of such preferences and/or rights.

 

ASSIGNMENT

FOR VALUE RECEIVED, the undersigned assigns and transfers
the Convertible Preference Shares evidenced hereby to:

(Insert assignee’s social
security or tax identification number)

(Insert address and zip code of
assignee)

and irrevocably appoints:

agent to transfer the Convertible
Preference Shares evidenced hereby on the register of members of the Company.
The agent may substitute another to act for him or her.

Date:

Signature:

(Sign exactly as your name
appears on the other side of this Convertible Preference Shares Certificate)

Signature Guarantee:(2)

(2)             (Signature
must be guaranteed by an “eligible guarantor institution” that is a bank,
stockbroker, savings and loan association or credit union meeting the
requirements of the Transfer Agent, which requirements include membership or
participation in the Securities Transfer Agents Medallion Program (“STAMP”) or
such other “signature guarantee program” as may be determined by the Transfer
Agent in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.)

 

EXHIBIT B

NOTICE OF CONVERSION

(To be Executed by the Holder 

in order to Convert the Convertible Preference Shares)

The undersigned hereby irrevocably elects to convert (the
“Conversion”) 4.875% Cumulative Convertible Perpetual Preference Shares
(the “Convertible Preference Shares”), represented by share certificate
No(s)_______________ (the “Convertible Preference Shares Certificates”)
into common shares (“Common Shares”) of Bunge Limited (the “Company”)
according to the conditions of the Certificate of Designation of the
Convertible Preference Shares (the “Certificate of Designation”), as of
the date written below. If shares are to be issued in the name of a person
other than the undersigned, the undersigned will pay all transfer taxes payable
with respect thereto and is delivering herewith the Convertible Preference
Shares Certificates. No fee will be charged to the holder for any conversion,
except for transfer taxes, if any. A copy of each Convertible Preference Shares
Certificate is attached hereto (or evidence of loss, theft or destruction
thereof).

The undersigned represents and warrants that all offers
and sales by the undersigned of the Common Shares issuable to the undersigned
upon conversion of the Convertible Preference Shares shall be made pursuant to
registration of the Common Shares under the Securities Act of 1933 (the “Act”),
or pursuant to any exemption from registration under the Act.

 

Capitalized terms used but not defined herein shall have
the meanings ascribed thereto in or pursuant to the Certificate of Designation.

	
  Date of Conversion:

  	
   

  
	
   

  	
   

  
	
  Applicable Conversion Price:

  	
   

  
	
   

  	
   

  
	
  Number of Convertible
  Preference Shares to be Converted:

  	
   

  
	
   

  	
   

  
	
  Number of Common Shares to be
  Issued:*

  	
   

  
	
   

  	
   

  
	
  Signature:

  	
   

  
	
   

  	
   

  
	
  Name:

  	
   

  
	
   

  	
   

  
	
  Address:**

  	
   

  
	
   

  	
   

  
	
  Fax No.:

  	
   

  
										

*                    The
Company is not required to issue Common Shares until the original Convertible
Preference Shares Certificate(s) (or evidence of loss, theft or destruction
thereof) to be converted are received by the Company or its Transfer Agent. The
Company shall issue and deliver certificates representing its Common Shares to
an overnight courier not later than three business days following receipt of
the original Convertible Preference Shares Certificate(s) to be converted.

**             Address
where certificates representing Common Shares and any other payments or
certificates shall be sent by the Company.NOT VALID
UNLESS COUNTERSIGNED BY TRANSFER AGENT.

INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE

	
  NUMBER

  	
   

  	
  SHARES

  
	
  

  	
  EARTH
  BIOFUELS

  	
  

  

 

	
  AUTHORIZED COMMON STOCK:

  	
   

  	
  CUSIP NO. 27031F 10 2

  
	
  [ILLEGIBLE]

  	
   

  	
   

  
	
  PAR VALUE:
  $0.001

  	
   

  	
   

  
	
  400,000,000
  SHARES

  	
   

  	
   

  

 

	
  This Certifies that

  	
  SPECIMEN
  ONLY

  	
   

  
	
   

  	
  NON-TRANSFERABLE

  	
   

  

 

Is The Record Holder Of

Shares of EARTH BIOFUELS, INC. Common Stock

transferable on the books
of the Corporation by the holder hereof, in person or by duly authorized
attorney, upon surrender of this Certificate properly endorsed.  This Certificate is not valid until
countersigned by the Transfer Agent and registered by the Registrar.

Witness the
facsimile seal of the Corporation and the facsimile signatures of its duly
authorized officers.

Dated:

	
  [ILLEGIBLE]

  	
  [SEAL]

  	
  [ILLEGIBLE]

  	
   

  
	
  SECRETARY

  	
  PRESIDENT

  

 

	
  NOT VALID UNLESS COUNTERSIGNED BY
  TRANSFER AGENT

  	
  Countersigned
  & Registered

  Nevada Agency and Trust Company

  50 West Liberty Street • Suite 880 • Reno Nevada 89501

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Signature

  

 

 

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

	
  TEN COM

  	
  - as tenants in
  common

  	
  UNIF GIFT MIN ACT -

  	
  Custodian

  
	
  TEN ENT

  	
  - as tenants by
  the entireties

  	
   

  	
  (Cust)

  	
  (Minor)

  
	
  JT TEN

  	
  - as joint
  tenants with right of

  	
   

  	
  under Uniform
  Gifts to Minors

  
	
   

  	
  survivorship and
  not as tenants

  	
   

  	
  Act

  	
   

  
	
   

  	
  in common

  	
   

  	
  (State)

  
						

 

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

For Value
Received,
                                 
hereby sell, assign and transfer un

	
  PLEASE INSERT SOCIAL
  SECURITY OR OTHER

  	
   

  
	
  IDENTIFYING
  NUMBER OF ASSIGNEE

  	
   

  

 

	
   

  	
   

  
	
   

  	
   

  

 

(PLEASE PRINT OR
TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE)

Shares

of the capital stock
represented by the within certificate, and do hereby irrevocably constitute and
appoint

Attorney

to transfer the said
stock on the books of the within named Corporation with full power of
substitution in the premises.

	
  Dated

  	
   

  	
   

  

 

 

	
   

  	
   

  	
   

  
	
   

  	
  NOTICE:

  	
  THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND
  WITH THE NAME AS WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR
  WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATEVER

  

 

NOTICE SIGNATURE GUARANTEED:

SIGNATURE(S) MUST BE GUARANTEED BY A FIRM WHICH IS
A MEMBER OF A REGISTERED NATIONAL STOCK EXCHANGE, OR BY A BANK (OTHER THAN A
SAVINGS BANK), OR A TRUST COMPANY.  THE
GUARANTEEING FIRM MUST BE A MEMBER OF THE MEDALLION GUARANTEE
PROGRAM.

TRANSFER FEE WILL APPLY

SPECIMEN
ONLY

NON-TRANSFERABLE

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