Document:

Certificate of Designations

 Exhibit 4.1 
  

CERTIFICATE OF DESIGNATIONS OF 
  
 7.50% SERIES A CUMULATIVE CONVERTIBLE PERPETUAL PREFERRED STOCK 
  
 OF BLOCKBUSTER INC. 
  
 Pursuant to Section 151 of the 
 General
Corporation Law of the State of Delaware 
  
 Blockbuster Inc., a
Delaware corporation (the “Company”), certifies that pursuant to the authority contained in Article IV of its Second Amended and Restated Certificate of Incorporation (the “Restated Certificate of Incorporation”),
and in accordance with the provisions of Section 151 of the General Corporation Law of the State of Delaware (the “DGCL”), the Preferred Stock Committee (designated by the Board of Directors of the Company (the “Board
of Directors”)) by resolution adopted by unanimous written consent, pursuant to Section 141(f) of the DGCL, on November 14, 2005, duly approved and adopted the following resolution, which resolution remains in full force and
effect on the date hereof: 
  
 RESOLVED, that
pursuant to the authority vested in the Preferred Stock Committee by the Board of Directors, and in the Board of Directors by the Restated Certificate of Incorporation, the Preferred Stock Committee designated by the Board of Directors does hereby
designate, create, authorize and provide for the issue of a series of the Company’s preferred stock, par value $0.01 per share, with a liquidation preference of $1,000 per share plus an amount equal to the sum of all accumulated and unpaid
dividends (including additional dividends, if any), subject to adjustment as provided in Section 18(ii) hereof, which shall be designated as 7.50% Series A Cumulative Convertible Perpetual Preferred Stock (the “Series A Preferred
Stock”) consisting of 172,500 shares, no shares of which have heretofore been issued by the Company, having the following powers, designations, preferences and relative, participating, optional and other special rights, and qualifications,
limitations and restrictions thereof: 
  
 Section 1. Ranking. The
Series A Preferred Stock will rank, with respect to payment of dividends and distribution of assets upon the liquidation, winding-up or dissolution of the Company: (i) senior to all Junior Stock, (ii) on parity with all Parity Stock and
(iii) junior to all Debt Obligations and Senior Stock. The Company’s ability to issue Capital Stock that ranks senior to its Series A Preferred Stock shall be subject to the provisions of Section 5 hereof. 
  
 Section 2. Dividends. 
  
 (i) Each holder of shares of the outstanding Series A Preferred Stock
(together, the “Holders”) shall be entitled, when, as and if declared by the Board of Directors or a duly authorized committee thereof out of assets of the Company legally available therefor, to receive cumulative dividends at the
initial rate per annum of 7.50% (subject to increase as set forth in Section 2(ii) and Section 2(iii) below) of the liquidation preference of $1,000 per share of Series A Preferred Stock, subject to adjustment as provided in Section 18(ii)
hereof (such liquidation preference, as adjusted from time to time, the “Liquidation Preference”) (initially equivalent 

 
to $75.00 per annum per share) payable quarterly in arrears (such rate, as the same may be adjusted from time to time pursuant to Section 2(ii) and for any
Additional Dividends pursuant to Section 2(iii) below, 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 February 15, 2006) for the quarterly period ending immediately prior to such Dividend Payment Date, to the holders of record of Series A Preferred Stock at the close of business on the Dividend Record Date applicable to
such Dividend Payment Date. Such dividends shall accumulate 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
assets of the Company legally available for the payment of such dividends in whole or in part). The initial dividend on the Series A Preferred Stock, for the period commencing on November 15, 2005, to but excluding February 15, 2006, shall
be $18.75 per share and shall be payable, when, as and if declared, on February 15, 2006. Each subsequent quarterly dividend on the Series A Preferred Stock, when, as and if declared, shall be $18.75 per share (subject to increase as set forth
in Section 2(ii) and Section 2(iii) below). Dividends payable for any partial dividend period, including the initial dividend period ending immediately prior to February 15, 2006, shall be computed on the basis of days elapsed over a 360-day
year consisting of twelve 30-day months. 
  
 (ii) If the Company
shall have failed to pay dividends (whether in cash or shares of Class A Common Stock pursuant to Section 3 below) on the Series A Preferred Stock on any six Dividend Payment Dates, whether or not consecutive, (the “Initial Six-Quarter
Period”) the Dividend Rate shall increase on and after the day after such sixth Dividend Payment Date by one percentage point (100 basis points), and on the Dividend Payment Date on which the Company has paid in full all accumulated and
unpaid dividends on the Series A Preferred Stock for all dividend periods up to and including such Dividend Payment Date, the Dividend Rate shall decrease by one percentage point (100 basis points). After the Initial Six-Quarter Period and the
taking of action by the Company to cause a decrease in the Dividend Rate as provided in the prior sentence, if and whenever one full quarterly dividend payable on the Series A Preferred Stock is not paid, the Dividend Rate shall increase by one
percentage point (100 basis points) until the Company has paid in full all accumulated and unpaid dividends on the Series A Preferred Stock for all dividend periods terminating on or prior to the date on which the accumulated and unpaid dividends
are paid in full. 
  
 (iii) Upon a Registration Default,
additional dividends (“Additional Dividends”) shall accumulate on the Series A Preferred Stock on and after the date such Registration Default occurs at the rate of 0.25% of the Liquidation Preference per annum for the first 90 days
following such date and at a rate of 0.50% of the Liquidation Preference per annum on and after the 91st day
following such date to but excluding the date all Registration Defaults have been cured. A “Registration Default” shall have the meaning set forth in the Registration Rights Agreement among the Company, [·] and [·] dated as of November 15,
2005 relating to the Series A Preferred Stock (as amended from time to time), which such term is, and all terms relating thereto are, incorporated herein as if made herein. 
  

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 (iv) No dividend will be declared or paid upon, or any sum set apart or shares of Class A Common
Stock distributed for the payment of dividends upon, any outstanding share of the Series A Preferred Stock with respect to any dividend period unless all dividends for all preceding dividend periods have been declared and paid or declared and a
sufficient sum of money or number of shares of Class A Common Stock have been set apart or shares of Class A Common Stock distributed for the payment of such dividend, upon all outstanding shares of Series A Preferred Stock. 
  
 (v) No dividends or other distributions (other than a dividend or
distribution payable solely in shares of Parity Stock or Junior Stock (in the case of Parity Stock) or Junior Stock (in the case of Junior Stock) and other than cash paid in lieu of fractional shares in accordance with Section 16 hereof) may be
declared, made or paid, or set apart for payment upon, any Parity Stock or Junior Stock, nor may any Parity Stock or Junior Stock be redeemed, purchased or otherwise acquired for any consideration (or any money paid to or made available for a
sinking fund for the redemption of any Parity Stock or Junior Stock) by or on behalf of the Company (except by conversion into or exchange for shares of Parity Stock or Junior Stock (in the case of Parity Stock) or Junior Stock (in the case of
Junior Stock)), unless all accumulated and unpaid dividends shall have been or contemporaneously are declared and paid, or are declared and a sum of cash or number of shares of Class A Common Stock sufficient for the payment thereof is set
apart for such payment, on the Series A Preferred Stock and any Parity Stock 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 Series A Preferred Stock and any Parity Stock, dividends may be declared and paid on the Series A Preferred Stock and such Parity Stock so long as the dividends are declared and paid pro rata so that the
amounts of dividends declared per share on the Series A Preferred Stock and such Parity Stock will in all cases bear to each other the same ratio that accumulated and unpaid dividends per share on the shares of Series A Preferred Stock and such
other Parity Stock bear to each other. 
  
 (vi) Holders shall not
be entitled to any dividends on the Series A Preferred Stock, whether payable in cash, property or stock, in excess of full cumulative dividends calculated pursuant to this Section 2. No interest, or sum of money in lieu of interest, shall be
payable in respect of any dividend payment or payments on the Series A Preferred Stock that may be in arrears. 
  
 (vii) With respect to dividends that have been declared for payment, a Holder at the close of business on a Dividend Record Date will be entitled to
receive the dividend payment on its Series A Preferred Stock on the next succeeding Dividend Payment Date notwithstanding the Company’s default in payment of the dividend due on that Dividend Payment Date. 
  
 (viii) Dividends in arrears on the Series A Preferred Stock in respect of a
dividend period not declared for payment (“Delayed Dividends”) may be declared by the Board of Directors or a duly authorized committee thereof and paid on any date fixed by the Board of Directors or a duly authorized committee
thereof, whether or not a Dividend Payment Date, to the Holders of record as they appear on the stock register of the Company on a record date 

  

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selected by the Board of Directors or a duly authorized committee thereof, which shall (a) not precede the date the Board of Directors or an authorized
committee thereof declares the dividend payable and (b) not be more than 60 days prior to the date the dividend is paid. 
  
 Section 3. Method of Payment of Dividends. 
  
 (i) Subject to restrictions set forth herein, dividends on Series A Preferred Stock may be paid, at the sole discretion of the Company, (a) in cash;
(b) by delivery of shares of Class A Common Stock; or (c) through any combination of cash or Class A Common Stock. 
  
 (ii) Shares of Class A Common Stock issued in payment or partial payment of a dividend shall be valued for such purpose at 95% of the average of the
daily Volume-Weighted Average Price for each of the five consecutive Trading Days ending on the second Trading Day immediately prior to the Dividend Record Date for such dividend. 
  
 (iii) Dividend payments on the Series A Preferred Stock will be made in cash, except to the extent the Company elects to
make all or any portion of such payment in Class A Common Stock by giving notice to Holders and issuing a press release, each in accordance with Section 3(v) and Section 13 hereof, of such election at least ten (10) Trading Days prior to
the Dividend Record Date for such dividend. 
  
 (iv) During the
period commencing on the date of the original issuance of any shares of Series A Preferred Stock and ending on the second anniversary of such date, no payment or partial payment of a dividend on the Series A Preferred Stock may be made by delivery
of Class A Common Stock unless: 
  
 (a) an
effective registration statement exists at the time of delivery of such shares of Class A Common Stock; or 
  
 (b) in the case of dividends paid by delivery of shares of Class A Common Stock issued on or after the first anniversary of the date
of the original issuance of any shares of Series A Preferred Stock, at the time of delivery of such shares, the Company satisfies the requirements of Rule 144(c) of the Securities Act. 
  
 (v) The notice and press release specified in Section 3(iii) will set forth the portion of such payment that will be made in
cash (by specifying the dollar amount) and the portion that will be made in shares of Class A Common Stock. In addition, with respect to any such payment to be made during the period commencing on the original issuance date of any shares of
Series A Preferred Stock and ending on the second anniversary of such date, such notice will: 
  
 (a) with respect to delivery of shares of Class A Common Stock for which the Company relies on Section 3(iv)(a) above, state whether
an effective registration statement exists and is available for resales of shares of Class A Common Stock that are issued in respect of dividends; and 
  

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 (b) with respect to delivery of shares of Class A Common Stock for which the Company
relies on Section 3(iv)(b) above: 
  
 (1) state
whether the Company is in compliance and will be in compliance with Rule 144(c) under the Securities Act on the date of delivery of dividends in the form of Class A Common Stock; 
  
 (2) set forth the relevant text of Rule 144(e) under the Securities Act regarding the calculation methods of
volume limitations; 
  
 (3) include a statement
that investors must make their own determination as to whether they are entitled to rely on Rule 144 under the Securities Act in respect of resales of shares of Class A Common Stock that are issued in respect of dividends; and 
  
 (4) include a statement that investors may be required to
make certain filings with the Securities and Exchange Commission (the “SEC”) and other regulatory authorities in relation to any resales of shares of Class A Common Stock pursuant to Rule 144 under the Securities Act.

  
 (vi) No fractional shares of Class A Common Stock will be
delivered to Holders in payment or partial payment of a dividend. In lieu of delivery of a fractional share, a cash adjustment will be paid to each Holder in accordance with Section 16 hereof. Any portion of any such payment that is declared and not
paid through the delivery of Class A Common Stock will be paid in cash. 
  
 Section 4. Liquidation Preference. 
  
 (i) In the event of any voluntary or involuntary liquidation, winding up or dissolution of the Company, each Holder shall be entitled to receive out of the assets of the Company available for distribution to stockholders of the Company,
before any payment or distribution of assets is made to holders of the Class A Common Stock or Class B Common Stock or any other Junior Stock but after any payment or distribution in respect of Debt Obligations or Senior Stock, the Liquidation
Preference, plus accumulated and unpaid dividends (whether or not declared and including Additional Dividends, if any) thereon to the date fixed for liquidation, winding up or dissolution. 
  
 (ii) Neither the sale 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 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 4. 
  

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 (iii) In the event the assets of the Company available for distribution to Holders 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 4(i) and amounts to which holders of Parity Stock are entitled, no
such distribution shall be made on account of any shares of Parity Stock upon such liquidation, dissolution or winding-up unless proportionate distributable amounts shall be paid on account of the shares of Series A Preferred Stock and holders of
Parity Stock, ratably, in proportion to the full distributable amounts for which Holders and holders of any Parity Stock are entitled upon such liquidation, winding-up or dissolution, with the amount allocable to each series of such stock determined
on a pro rata basis of the aggregate liquidation preference of the outstanding shares of each series and accumulated and unpaid dividends (including, in the case of Series A Preferred Stock, Additional Dividends, if any) to which each series is
entitled. 
  
 (iv) After the payment to the Holders of full
preferential amounts provided for in Sections 4(i) and 4(iii) hereof, the Holders as such shall have no right or claim to any of the remaining assets of the Company. 
  
 Section 5. Voting Rights. 
  
 (i) Holders shall have no voting rights, except as set forth in this Section 5 or as expressly required by applicable state law from time to time.

  
 (ii) If and whenever six full quarterly dividends, whether or
not consecutive, payable on the Series A Preferred Stock, are not paid, the number of directors constituting the Board of Directors will be increased by two and the holders of the Series A Preferred Stock, voting as a single class with any other
preferred stock having similar voting rights that are exercisable, shall have a right to elect those additional directors to the Board of Directors until all accumulated and unpaid dividends on the Series A Preferred Stock have been paid in full. To
exercise this right, any holder of the Series A Preferred Stock, may by written notice request that the Board of Directors call a special meeting of the holders of the Company’s preferred stock for the purpose of electing the additional
directors and, if such non-payment of dividends is continuing, the Board of Directors shall call such meeting within 35 days after such written request. Such voting rights and the terms of the directors so elected will continue until such time as
all accumulated and unpaid dividends on the Series A Preferred Stock have been paid in full, and at such time, the number of directors will, without further action, be reduced by two. 
  
 (iii) So long as any shares of Series A Preferred Stock are outstanding, in addition to any other vote of stockholders of
the Company required under applicable law or the Restated Certificate of Incorporation, the affirmative vote or consent of the Holders of at least 66 2/3% of the then outstanding shares of the Series A Preferred Stock will be required to approve (a) any amendment of the Restated Certificate of Incorporation if the amendment would alter or change
the powers, preferences, privileges or rights of the Series A Preferred Stock so as to affect the Holders adversely, (b) the issuance, authorization or increase in the authorized amount of, or the issuance or authorization of any obligation or
security convertible into or evidencing a right to purchase, by merger, consolidation or otherwise, any class or series of Senior Stock, or (c) any reclassification by merger, consolidation or otherwise, any authorized stock of the

  

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Company into any class or series of, or any obligation or security convertible into or evidencing a right to purchase, any Senior Stock; provided that no
such vote shall be required for the Company to issue, authorize or increase the authorized amount of, or issue or authorize any obligation or security convertible into or evidencing a right to purchase, any Parity Stock or Junior Stock. 

 
 (iv) In any case where the Holders are entitled to vote, each share of
Series A Preferred Stock shall be entitled to one vote. 
  
 Section 6. Termination of Conversion Rights. 
  
 (i) On
or after November 20, 2010, the Company may at any time, by providing not less than 15 nor more than 45 days’ notice, terminate the conversion right set forth in Section 7 below for all shares of Series A Preferred Stock; provided that the
Company may exercise this right only if the Closing Sale Price of the Class A Common Stock for at least 20 Trading Days in a period of 30 consecutive Trading Days, including the last Trading Day of such 30-day period, ending on the Trading Day
prior to the date the Company gives notice of termination (by press release as described in Section 6(ii) hereof), equals or exceeds 130% of the Conversion Price on each such Trading Day. 
  
 (ii) To exercise its right to terminate the conversion right of the Series A Preferred Stock described in Section 6(i)
hereof, the Company must issue a press release prior to the close of business on the first Trading Day following any date on which the conditions described in Section 6(i) hereof are met, announcing such election to terminate the conversion right of
the Series A Preferred Stock. The Company will also give notice by mail or by publication (with subsequent prompt notice by mail) to the Holders (not more than seven Business Days after the date of the press release) of the election to terminate the
conversion right of the Series A Preferred Stock. The termination date will be a date selected by the Company (the “Termination Date”) and will be no more than 45 days or less than 15 days after the date on which the Company gives
notice of such termination by issuing the press release described in this Section 6(ii). 
  
 (iii) In addition to any information required by applicable law or regulation, the press release and notice of termination described in Section 6(i) shall state, as appropriate: 
  
 (a) the Termination Date; and 
  
 (b) the number of shares of Class A Common Stock to be
issued upon conversion of each share of Series A Preferred Stock. 
  
 (iv) On and after the close of business on the Termination Date, the right to convert the Series A Preferred Stock as set forth in Section 7 below will automatically terminate. The dividend payment with respect to the Series A Preferred
Stock for which a Termination Date occurs during the period between the close of business on any Dividend Record Date for the payment of dividends to the close of business on the corresponding Dividend Payment Date will be payable on such Dividend
Payment Date to the record holder of 

  

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such share on such Dividend Record Date regardless of whether a holder tenders its shares of Series A Preferred Stock for conversion on or prior to the
Termination Date. 
  
 (v) The Company may not authorize, issue a
press release or give notice of any termination pursuant to Section 6(i) hereof unless, prior to giving the termination notice, all accumulated and unpaid dividends on the Series A Preferred Stock for periods ended prior to the date of such press
release or notice shall have been paid. 
  
 (vi) In addition to
the Company’s right to terminate the conversion right described in Section 6(i) hereof, if there are fewer than 15,000 shares of Series A Preferred Stock outstanding, the Company shall have the right, at any time on or after November 20,
2010, at its option in accordance with this clause (vi), to redeem for cash all such outstanding shares of Series A Preferred Stock, to the extent of lawfully available funds therefor, at a redemption price per share of Series A Preferred Stock
equal to the Liquidation Preference plus an amount equal to accumulated and unpaid dividends (including Additional Dividends, if any) to, but excluding, the Redemption Date. To exercise the redemption right for the Series A Preferred Stock as set
forth in this Section 6(vi), the Company shall issue a notice by press release at any time after November 20, 2010 setting forth a redemption date (the “Redemption Date”) for the Series A Preferred Stock, which shall be at
least 15 days but no more than 45 days after the date of such notice, followed by a notice by mail or by publication (with subsequent prompt notice by mail) to Holders not more than seven Business Days after the date of such press release notice;
provided that the Company may not issue a redemption notice or press release, or otherwise exercise its redemption right set forth in this Section 6(vi), if at such time there are greater than 15,000 shares of Series A Preferred Stock or the
Company shall not have paid all accumulated and unpaid dividends on the Series A Preferred Stock for all dividend periods ended prior to the date of such press release or notice. On and after the Redemption Date, all rights of Holders will terminate
except for the right to receive the redemption price for the shares of Series A Preferred Stock redeemed. The dividend payment with respect to the Series A Preferred Stock for which a Redemption Date occurs 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 share on such Dividend Record Date regardless of whether a Holder
tenders its share of Series A Preferred Stock for conversion on or prior to the Redemption Date. For the avoidance of doubt, the designation of a Redemption Date by the Company pursuant to this Section 6(vi) shall not terminate any conversion right
with respect to the Series A Preferred Stock as set forth in Section 7 below. 
  
 Section 7. Conversion at the Option of the Holder. 
  
 (i) Subject to the Company’s right to terminate the conversion right as described in Section 6(i) hereof, each Holder shall have the right, at any time, at its option, from the Issue Date to convert any or all of
such Holder’s shares of Series A Preferred Stock into shares of Class A Common Stock at an initial conversion price of $5.15 per share (as such conversion price may be adjusted, the “Conversion Price”) subject to
adjustment as set forth in Section 8 hereof. The conversion rate per share of Series A Preferred Stock at any time (as such conversion rate may be adjusted, the “Conversion Rate”) is equal to $1,000 plus any 

  

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accumulated and unpaid dividends to the Conversion Date for such share (including Additional Dividends, if any, but not including any dividends accumulated
for the dividend period including such Conversion Date, unless the Company has specified a Termination Date or Redemption Date as described in Section 6 hereof after a Dividend Record Date and on or prior to the related Dividend Payment Date)
divided by the Conversion Price at such time. 
  
 (ii) Shares of
Series A Preferred Stock 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 a payment in cash in an amount equal to the dividend payable on the Series A Preferred Stock on that Dividend Payment Date unless the Company has specified a Termination Date during such period. A Holder on a Dividend Record Date who
(or whose transferee) tenders any shares for conversion on the corresponding Dividend Payment Date shall receive the dividend payable by the Company if declared and paid on the Series A Preferred Stock on that date, and the converting holder shall
not be required to include payment in the amount of such dividend upon surrender of shares of Series A Preferred Stock for conversion. 
  
 (iii) Subject to Section 18(i) hereof, the conversion right of a Holder shall be exercised by the Holder of shares of Series A Preferred Stock represented
by physical certificates other than the Global Preferred Stock by the surrender to the Company of the certificates representing shares of Series A Preferred Stock 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 A that the Holder elects to convert all or a portion of the shares of Series A Preferred Stock
represented by such certificate and specifying the name or names (with address) in which a certificate or certificates representing shares of Class A Common Stock 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 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 18(vii) hereof. If a Holder’s shares of Series A Preferred Stock are represented by Global Preferred Stock, such Holder must comply with the Depositary’s procedures for converting a
beneficial interest in such Global Preferred Stock and, if required, pay funds equal to dividends payable on the next Dividend Payment Date to which such Holder is not entitled and, if required by Section 18(vii) hereof, pay all taxes or duties, if
any. The date on which a Holder satisfies the foregoing requirements for conversion is referred to herein as the “Conversion Date”. The Company will deliver shares of Class A Common Stock due upon conversion, together with any
cash in lieu of fractional shares in accordance with Section 16 hereof, no later than the fifth Business Day following the Conversion Date. Immediately prior to the close of business on the Conversion Date, each converting Holder shall be deemed to
be the holder of record of Class A Common Stock issuable upon conversion of such Holder’s Series A Preferred Stock notwithstanding that the share register of the Company shall then be closed or that certificates representing such
Class A Common Stock shall not then be actually delivered to such Holder. On the Conversion Date all rights with respect to the shares of Series A Preferred Stock so converted, including the rights, if any, to receive notices, will terminate,
except the rights of Holders thereof to: (a) receive certificates representing the number of whole shares of Class A Common Stock into 

  

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which such shares of Series A Preferred Stock have been converted and cash, in lieu of any fractional shares, in accordance with Section 16 hereof;
(b) receive Additional Shares, cash or Reference Property, as applicable, payable upon a Fundamental Change, in accordance with Section 9(iii); and (c) exercise the rights to which they are entitled as holders of Class A Common Stock.

  
 Section 8. Anti-dilution Adjustments. 
  
 (i) Anti-Dilution Adjustments. The Conversion Price shall be subject to the
following adjustments from time to time: 
  
 (a)
Stock Dividends. In case the Company shall pay or make a dividend or other distribution to all holders of Class A Common Stock in shares of Class A Common Stock, the Conversion Price, as in effect at the opening of business on the day
following the date fixed for the determination of stockholders of the Company entitled to receive such dividend or other distribution, shall be decreased by multiplying such Conversion Price by a fraction of which the numerator shall be the number
of shares of Class A Common Stock outstanding at the close of business on the date fixed for such determination and the denominator shall be the sum of such number of shares and the total number of shares constituting such dividend or other
distribution, such decrease to become effective immediately after the opening of business on the day following the date fixed for such determination. 
  
 (b) Stock Purchase Rights. In case the Company shall issue to all holders of its Class A Common Stock rights, options or warrants,
entitling them to subscribe for or purchase shares of common stock of the Company or securities convertible into or exchangeable for shares of common stock of the Company for a period expiring within 60 days from the date of issuance of such rights,
options or warrants at a price per share of common stock (or having a conversion price per share) less than the Market Value as of the date fixed for the determination of stockholders of the Company entitled to receive such rights, options or
warrants (other than pursuant to a dividend reinvestment, share purchase or similar plan), the Conversion Price in effect at the opening of business on the day following the date fixed for such determination shall be decreased by multiplying such
Conversion Price by a fraction, the numerator of which shall be the number of shares of Class A Common Stock outstanding at the close of business on the date fixed for such determination plus the number of shares of Class A Common Stock
which the aggregate consideration expected to be received by the Company upon the exercise, conversion or exchange of such rights, options or warrants (as determined in good faith by the Board of Directors, whose determination shall be conclusive
and described in a Board Resolution) would purchase at such Market Value and the denominator of which shall be the number of shares of Class A Common Stock outstanding at the close of business on the date fixed for such determination plus the
number of shares of Class A Common Stock so offered for subscription or purchase, either directly or indirectly, such decrease to become 

  

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effective immediately after the opening of business on the day following the date fixed for such determination; provided, however, that no such
adjustment of Conversion Price shall be made if the Holders would be entitled to receive such rights, options or warrants upon conversion at any time of shares of Series A Preferred Stock into Class A Common Stock; provided further, however,
that if any of the foregoing rights, options or warrants is only exercisable upon the occurrence of a Triggering Event, then the Conversion Price will not be adjusted until such Triggering Event occurs. 
  
 (c) Stock Splits; Reverse Splits; Reclassifications and
Combinations. In case outstanding shares of Class A Common Stock shall be subdivided, split or reclassified into a greater number of shares of Class A Common Stock, the Conversion Price in effect at the opening of business on the day
following the day upon which such subdivision, split or reclassification becomes effective shall be proportionately decreased, and, conversely, in case outstanding shares of Class A Common Stock shall each be combined or reclassified into a
smaller number of shares of Class A Common Stock, the Conversion Price in effect at the opening of business on the day following the day upon which such combination or reclassification becomes effective shall be proportionately increased, such
increase or decrease, as the case may be, to become effective immediately after the opening of business on the day following the day upon which such subdivision, split, reclassification or combination becomes effective. 
  
 (d) Cash Distributions. In case the Company shall, by
dividend or otherwise, make distributions to all holders of its Class A Common Stock exclusively in cash (excluding any distribution consisting of cash in part which is provided for in Section 8(i)(f) hereof) immediately after the close of
business on such date for determination, the Conversion Price shall be decreased by dividing the Conversion Price in effect immediately prior to the close of business on the date fixed for determination of the stockholders of the Company entitled to
receive such distribution by a fraction, (A) the numerator of which shall be equal to the Market Value of a share of Class A Common Stock as of the date fixed for such determination and (B) the denominator of which shall be equal to
the Market Value of a share of Class A Common Stock as of the date fixed for such determination less the per share amount of the dividend or distribution. 
  

Notwithstanding the foregoing, in no event will an adjustment pursuant to this Section 8(i)(d) result in a Conversion Price of less
than $4.20, subject to adjustment in accordance with Sections 8(i)(a), 8(i)(b), 8(i)(c), 8(i)(e) and 8(i)(f) hereof. 
  
 (e) Common Stock Repurchase Premiums. In the case that a tender or exchange offer made by the Company or any Subsidiary of the Company for
all or any portion of the Class A Common Stock shall expire and such tender or exchange offer (as amended through the expiration thereof) shall 

  

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require the payment to stockholders of the Company (based on the acceptance, up to any maximum specified in the terms of the tender or exchange offer, of
Purchased Shares (as defined below)) of an aggregate consideration having a Fair Market Value (as determined in good faith by the Board of Directors, whose determination shall be conclusive and described in a Board Resolution) per share of the
Class A Common Stock that exceeds the Closing Sale Price of the Class A Common Stock on the Trading Day next succeeding the last date on which tenders or exchanges may be made pursuant to such tender or exchange offer, then, immediately
prior to the opening of business on the day after the last day (such day, the “Expiration Time”) tenders could have been made pursuant to such tender or exchange offer (as amended through the expiration thereof), the Conversion
Price shall be decreased by multiplying the Conversion Price immediately prior to the close of business on the Expiration Time by a fraction (1) the numerator of which shall be equal to (x) the product of (I) the Market Value as of
the date of the Expiration Time and (II) the number of shares of Class A Common Stock outstanding (including any Purchased Shares (as defined below)) on the Expiration Time less (y) the amount of cash plus the Fair Market Value (determined
as aforesaid) of the aggregate consideration payable to stockholders of the Company pursuant to the tender or exchange offer (assuming the acceptance, up to any maximum specified in the terms of the tender or exchange offer, of Purchased Shares (as
defined below)), and (2) the denominator of which shall be equal to the product of (x) the Market Value as of the Expiration Time and (y) the number of shares of Class A Common Stock outstanding (including any Purchased Shares
(as defined below)) on the Expiration Time less the number of all shares validly tendered, not withdrawn and accepted for payment on the Expiration Time (such validly tendered shares, up to any such maximum, being referred to as the
“Purchased Shares”). 
  
 (f)
Debt, Asset or Security Distributions. In case the Company shall, by dividend or otherwise, distribute to all holders of its Class A Common Stock evidences of its indebtedness, assets or securities (but excluding any dividend or distributions
referred to in Section 8(i)(a), 8(i)(b) or 8(i)(d)), the Conversion Price shall be decreased by multiplying the Conversion Price in effect immediately prior to the close of business on the date fixed for the determination of stockholders of the
Company entitled to receive such distribution by a fraction, the numerator of which shall be the Market Value of a share of Class A Common Stock as of the date fixed for such determination less the then Fair Market Value (as determined in good
faith by the Board of Directors, whose determination shall be conclusive and described in a Board Resolution) of the portion of the assets or evidences of indebtedness so distributed applicable to one share of Class A Common Stock and the
denominator of which shall be the Market Value of a share of Class A Common Stock as of the date fixed for such determination, such adjustment to become effective immediately prior to the opening of business on the day following the date fixed
for the determination of stockholders of the Company entitled to receive such distribution. 
  

 12 

 (ii) Right and Warrants. If the Company distributes rights or warrants (other than those referred to
above in Section 8(i)(b) hereof) pro rata to the holders of Class A Common Stock, so long as such rights or warrants have not expired or been redeemed by the Company, the Holder of any shares of Series A Preferred Stock surrendered for
conversion shall be entitled to receive upon such conversion, in addition to the shares of Class A Common Stock then issuable upon such conversion (the “Conversion Shares”), a number of rights or warrants to be determined as
follows: 
  
 (a) 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 shares of Class A Common Stock 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 
  
 (b) if such conversion occurs after the Distribution Date,
the same number of rights or warrants to which a holder of the number of shares of Class A Common Stock into which such Series A Preferred Stock was convertible immediately prior to such Distribution Date would have been entitled on such
Distribution Date had such Series A Preferred Stock been converted immediately prior to such Distribution Date in accordance with the terms and provisions applicable to the rights and warrants. 
  
 The Conversion Price shall not be subject to adjustment on account of any declaration,
distribution or exercise of such rights or warrants. 
  
 (iii) De
Minimis Adjustments. Notwithstanding anything herein to the contrary, no adjustment under this Section 8 shall be made to the Conversion Price unless such adjustment would require an increase or decrease of at least one percent (1.0%) of the
Conversion Price 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 one percent (1.0%) of such Conversion Price; provided, however, that notwithstanding the foregoing, all such carried forward adjustments shall be made at the time the Company shall have
designated a Termination Date, Redemption Date or upon giving a Fundamental Change Notice, and at the time of conversion of Series A Preferred Stock. No adjustment under this Section 8 shall be made if such adjustment will result in a Conversion
Price that is less than the par value of the Class A Common Stock. All adjustments to the Conversion Price shall be calculated to the nearest 1/100th of a share of Class A Common Stock (or if there is not a nearest 1/100th of a share to
the next lower 1/100th of a share). 
  
 (iv) Tax-Related
Adjustments. The Company may make such decreases in the Conversion Price, in addition to those required by this Section 8, as the Board of Directors considers advisable in order to avoid or diminish any income tax to any holders of shares of
Class A Common Stock resulting from any dividend or distribution of stock or issuance of rights or warrants to purchase or subscribe for stock or from any event treated as such for 

  

 13 

 
income tax purposes. In the event the Company elects to make such an decrease 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 thereunder if and to the extent that such laws and regulations are applicable in connection with the decrease of the Conversion Price. 
  
 (v) Stockholder Rights Plans. Upon conversion of the Series A Preferred
Stock, the Holders shall receive, in addition to the shares of Class A Common Stock and any cash for fractional shares in accordance with Section 16 hereof, if any, the rights issued under any future stockholder rights plan the Company may
establish whether or not such rights are separated from the Class A Common Stock prior to conversion. A distribution of rights pursuant to a stockholder rights plan will not result in an adjustment to the Conversion Price pursuant to Section
8(i)(b) or 8(i)(f) provided that the Company has provided for the Holders to receive such rights upon conversion. 
  
 (vi) Notice of Adjustment. Whenever the Conversion Price is adjusted in accordance with this Section 8, the Company shall (a) compute the Conversion
Price in accordance with this Section 8 and prepare and transmit to the Transfer Agent an Officer’s Certificate setting forth the Conversion Price, the method of calculation thereof in reasonable detail, and the facts requiring such adjustment
and upon which such adjustment is based and (b) as soon as practicable following the occurrence of an event that requires an adjustment to the Conversion Price pursuant to this Section 8 (or if the Company is not aware of such occurrence, as
soon as practicable after becoming so aware), the Company or, at the request and expense of the Company, the Transfer Agent shall provide a written notice to the Holders of the occurrence of such event and a statement setting forth in reasonable
detail the method by which the adjustment to the Conversion Price was determined and setting forth the adjusted Conversion Price. 
  
 (vii) Reversal of Adjustment. If the Company shall take a record of the holders of its Class A Common Stock 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 stockholders) 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. 
  
 (viii) Exceptions to Adjustment. The applicable Conversion Price shall not be adjusted: 
  
 (a) upon the issuance of any shares of the Class A Common Stock or Class B Common Stock pursuant to any
present or future plan providing for the reinvestment of dividends or interest payable on the Company’s securities and the investment of additional optional amounts in shares of Class A Common Stock or Class B Common Stock under any plan;

  
 (b) upon the issuance of any shares of the
Class A Common Stock or Class B Common Stock or options or rights to purchase those shares pursuant 

  

 14 

 
to any present or future employee, director or consultant benefit plan or program of or assumed by the Company or any of its Subsidiaries; 
  
 (c) upon the issuance of any shares of the Class A
Common Stock or Class B Common Stock pursuant to any option, warrant, right or exercisable, exchangeable or convertible security outstanding as of the Issue Date; 
  
 (d) for a change in the par value or no par value of the Class A Common Stock or Class B Common Stock;
or 
  
 (e) for accumulated and unpaid dividends.

  
 Section 9. Fundamental Change. 
  
 (i) Within ten Trading Days after the Effective Date of a Fundamental Change
(or, in the case of a Fundamental Change described in clause (b) of the definition of such term, within ten Trading Days prior to the anticipated Effective Date of such Fundamental Change), the Company shall give notice of such Fundamental
Change in accordance with Section 13(ii) hereof to each record holder of Series A Preferred Stock (the “Fundamental Change Notice”). Such Fundamental Change Notice shall state: 
  
 (a) the events causing the Fundamental Change; 

 
 (b) whether the Company will make a cash payment in lieu
of issuing shares of Class A Common Stock upon exercise by Holders of the Fundamental Change Option as set forth under Section 9(ii) below; 
  
 (c) the Effective Date or anticipated Effective Date of such Fundamental Change and the period of time during which a Holder may exercise
its Fundamental Change Option as set forth below; 
  
 (d) in the case of a Public Acquirer Fundamental Change, whether the Company elects to adjust the Conversion Rate as described under Section 9 below; 
  

(e) the name and address of the Transfer Agent; and 
  
 (f) if applicable, the expected determination of the number of Additional Shares to be added to the
Conversion Rate as set forth pursuant to Section 9(iii) below. 
  
 Simultaneously
with the Fundamental Change Notice, the Company shall publish a notice containing the foregoing information in a newspaper of general circulation in The City of New York or publish the information on its website or through such other public medium
as the Company may use at that time. 
  

 15 

 (ii) Additional Conversion Right Upon a Fundamental Change. After the Company gives notice of a
Fundamental Change on a “Fundamental Change Notice Date”, Holders shall have a one-time option (the “Fundamental Change Option”) to convert, in addition to the conversion right set forth under Section 7 above, all
of their outstanding shares of Series A Preferred Stock into fully paid and nonassessable shares of Class A Common Stock (or, in the case of a Fundamental Change described in clause (b) of its definition, Reference Property) at an adjusted
Conversion Rate per share of Series A Preferred Stock equal to the Liquidation Preference, plus any accumulated and unpaid dividends, including Additional Dividends, if any, to, but excluding, the Conversion Date divided by 95% of the average of the
daily Volume Weighted Average Price per share of the Class A Common Stock for each of the ten consecutive Trading Days commencing on the Trading Day immediately following the Conversion Date or, in the case where the Company shall deliver
Reference Property in settlement of the Fundamental Change Option following the Effective Date of a Fundamental Change set forth in clause (b) of the definition of that term and such Reference Property consists of cash or securities or other
property, the Company will adjust the Conversion Rate based upon the face value of such cash or 95% of the average price of such securities over such ten consecutive Trading Days, and if such securities or other property are not listed on a national
securities exchange or authorized for quotation on an automated quotation system, the average of the mid-point of the prices of at least three nationally recognized investment banking firms selected by the Company for this purpose. The Fundamental
Change Option shall be exercisable during a period of not less than 15 days nor more than 45 days after the Fundamental Change Notice Date, or not less than 15 days nor more than 45 days after the Effective Date in the case of a Fundamental Change
described in clause (b) of the definition of that term. In lieu of issuing some or all of the shares of Class A Common Stock or Reference Property issuable upon a Fundamental Change Option, the Company may, at its option, make a cash
payment following the Effective Date of a Fundamental Change set forth in clause (b) of the definition of that term equal to the Liquidation Preference per share plus accumulated and unpaid dividends (including Additional Dividends, if any) to,
but excluding, the Conversion Date. 
  
 (iii) Adjustment to the
Conversion Rate Upon a Fundamental Change. 
  
 (a) If a Holder converts its Series A Preferred Stock (other than pursuant to a Fundamental Change Option) at any time beginning on the Fundamental Change Notice Date after a notice is given to Holders regarding a Fundamental Change
described in clause (b) of the definition of that term, and ending at the close of business on the 30th Trading Day immediately following the Effective Date of such Fundamental Change, the Company will increase the applicable Conversion Rate by
a number of additional shares (the “Additional Shares”) for such Series A Preferred Stock as described in Section 9(iii)(b) hereof; provided that (a) such increase in the Conversion Rate shall not take place if such
Fundamental Change is not consummated and (b) the Company shall issue shares of Class A Common Stock at the Conversion Rate (without such increase) on or prior to the fifth Business Day following the Conversion Date and the Additional
Shares described in Section 9(iii)(b) hereof will be issued after the later to occur of (i) the fifth Business Day following the Effective Date and 

  

 16 

 
(ii) the fifth Business Day following the relevant Conversion Date. On and after the Effective Date, Holders entitled to receive Additional Shares
pursuant to this Section 9(iii)(a) shall, as set forth under Section 11 below, receive Reference Property based on the number of Additional Shares set forth above. 
  
 (b) The number of Additional Shares will be determined by reference to the table below, based on the
Effective Date and the price of the Class A Common Stock (the “Stock Price”). If the consideration (excluding cash payments for fractional shares or pursuant to statutory appraisal rights) for the Class A Common Stock
consists solely of cash, then the Stock Price will be the cash amount paid per share of the Class A Common Stock. Otherwise, the Stock Price will be the average of the Closing Sale Price per share of the Class A Common Stock for the five
consecutive Trading Days immediately preceding the Effective Date. 
  
 (c) The following table sets forth the number of Additional Shares per share of Series A Preferred Stock to be added to the Conversion Rate in connection with the Fundamental Change referred to in Section 9(iii)(a):

  
 Number of Additional Shares 
  

																			
	 	  	Stock Price

	 Effective Date

	  	$4.20

	  	$5.00

	  	$7.50

	  	$10.00

	  	$12.50

	  	$15.00

	  	$20.00

	  	$30.00

	  	$50.00

	 November 15, 2005
	  	43.9205	  	32.7486	  	16.7822	  	10.5291	  	7.5370	  	5.7394	  	3.8916	  	2.4445	  	0.0000
	 November 15, 2006
	  	43.9205	  	29.7645	  	14.3179	  	8.6367	  	5.5836	  	4.4802	  	2.9852	  	1.8726	  	0.0000
	 November 15, 2007
	  	43.9205	  	27.8456	  	12.8357	  	7.4014	  	4.7784	  	3.6264	  	2.5243	  	1.6265	  	0.0000
	 November 15, 2008
	  	43.9205	  	24.5488	  	9.9749	  	5.2605	  	3.2041	  	2.4286	  	1.7227	  	1.1299	  	0.0000
	 November 15, 2009
	  	43.9205	  	20.1151	  	5.0286	  	1.3302	  	0.6734	  	0.5264	  	0.3927	  	0.2618	  	0.0000
	 November 20, 2010
	  	43.9205	  	17.4967	  	0.0000	  	0.0000	  	0.0000	  	0.0000	  	0.0000	  	0.0000	  	0.0000
	 Thereafter
	  	43.9205	  	17.4967	  	0.0000	  	0.0000	  	0.0000	  	0.0000	  	0.0000	  	0.0000	  	0.0000

  
 The Stock Prices set forth in the
table will be adjusted as of any date on which the Conversion Price of the Series A Preferred Stock is adjusted. The adjusted Stock Prices will equal the Stock Prices applicable immediately prior to the adjustment divided by a fraction, the
numerator of which is the Conversion Price immediately prior to the adjustment to the Conversion Price and the denominator of which is the Conversion Price as so adjusted. 
  
 (iv) The exact Stock Price and Effective Date may not be set forth in the table, in which case: 
  
 (1) if the Stock Price is between two Stock Prices in the
table or the Effective Date is between two Effective Dates in the table, the number of Additional Shares will be determined by straight-line interpolation between the Additional Share amounts set forth for the higher and lower Stock Prices and the
two Effective Dates, as applicable, based on a 365-day year; 
  

 17 

 (2) if the Stock Price is in excess of $50.00 per share (subject to adjustment in the
same manner as the Stock Price), no Additional Shares will be added to the Conversion Rate; and 
  
 (3) if the Stock Price is less than or equal to $4.20 per share (subject to adjustment in the same manner as the Stock Price), no
Additional Shares will be added to the Conversion Rate. 
  
 (v)
Notwithstanding the foregoing, in no event will the Conversion Rate exceed 238.0952 shares, subject to adjustment in the same manner as the Conversion Price is subject to adjustment pursuant to Section 8 hereof but on an inversely proportional
basis. 
  
 Section 10. Conversion After a Public Acquirer
Fundamental Change. 
  
 (i) In the event of a Public Acquirer
Fundamental Change, the Company may, in lieu of increasing the Conversion Rate as described in Section 9(iii) hereof, elect to adjust the Conversion Rate and related conversion obligation such that, from and after the Effective Date of such Public
Acquirer Fundamental Change, the Holders who elect to convert shares of Series A Preferred Stock pursuant to Section 7 shall be entitled to convert their shares of Series A Preferred Stock into a number of shares of Public Acquirer Common Stock that
have been registered, or the resale of which will be registered, under the Securities Act, by multiplying the Conversion Rate in effect immediately before the Public Acquirer Fundamental Change by a fraction: 
  
 (a) the numerator of which shall be the average of the
Closing Sale Price of the Class A Common Stock for the five consecutive Trading Days prior to but excluding the Effective Date of such Public Acquirer Fundamental Change; and 
  
 (b) the denominator of which shall be the average of the Closing Sale Price of the Public Acquirer Common
Stock for the five consecutive Trading Days commencing on the Trading Day next succeeding the Effective Date of such Public Acquirer Fundamental Change. 
  
 Such adjusted Conversion Rate and related conversion obligation into Public Acquirer Common Stock shall be immediately following the Effective Date of the Fundamental
Change, and the Conversion Price per share of Series A Preferred Stock shall be $1,000 divided by such adjusted Conversion Rate into Public Acquirer Common Stock. At any time following the Effective Date of such Fundamental Change, the Conversion
Rate shall equal $1,000 plus accumulated and unpaid dividends to the related Conversion Date divided by such Conversion Price. The adjusted Conversion Price shall be subject to adjustment as set forth under Section 8 above, and the applicable
Conversion Rate shall be subject to further adjustment for Additional Shares as set forth pursuant to Section 9 above. 
  
 (ii) Upon the Company’s decision to adjust the Conversion Rate and related conversion obligation upon a Public Acquirer Fundamental Change, Holders
may convert their Series A Preferred Stock at the adjusted Conversion Rate as described in Section 10(i) but will 

  

 18 

 
not be entitled to the increase in the Conversion Rate by the Additional Shares as described in Section 9(iii) hereof. The registered shares of Public
Acquirer Common Stock, or the shares of Public Acquirer Common Stock registered for resale, as the case may be, shall be listed, or approved for listing subject only to the official notice of issuance, on a national securities exchange or the Nasdaq
National Market. 
  
 (iii) The Company shall state, in the notice
of a Fundamental Change required to be issued pursuant to Section 9(i), whether it has elected to adjust the Conversion Rate pursuant to Section 10(i), rather than increase the Conversion Rate pursuant to Section 9(iii). With respect to each Public
Acquirer Fundamental Change, the Company shall make only one election, and the Company shall not change that election once it has first mailed any such notice or made any such public announcement or publication. However, if the Company elects to
change the conversion right in connection with a Public Acquirer Fundamental Change as described in this Section 10 and that such Public Acquirer Fundamental Change ultimately is not consummated, then the Company shall not be obligated to give
effect to that particular election. 
  
 Section 11.
Recapitalizations, Reclassifications and Changes in the Company’s Stock. 
  
 (i) In the event of any reclassification of outstanding shares of Class A Common Stock (other than a change in par value, or from par value to no par value, or from no par value to par value), or any
consolidation or merger of the Company (other than with a Subsidiary of the Company) with or into another Person or any merger of another Person with or into the Company (other than a consolidation or merger in which the Company is the resulting or
surviving Person and which does not result in any reclassification or change of outstanding Class A Common Stock), or 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”), upon conversion of its shares of Series A Preferred Stock on and after the related effective date for such Transaction, a Holder will be entitled to receive 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 shares of Class A Common Stock into which such shares of Series A Preferred Stock were convertible
into immediately prior to such Transaction, after giving effect to any adjustment event (the “Reference Property”). The provisions of this Section 11(i) and any equivalent thereof in any such securities similarly shall apply to
successive Transactions. 
  
 (ii) In the event holders of
Class A Common Stock have the opportunity to elect the form of consideration to be received in any Transaction, the Company shall make adequate provision whereby the Holders shall have a reasonable opportunity to determine the form of
consideration into which all of the Series A Preferred Stock, treated as a single class, shall be convertible from and after the effective date of such Transaction. The determination: (a) will be made by Holders representing a plurality of
shares of Series A Preferred Stock participating in such determination, (b) will be subject to any limitations to which all of the holders of Class A Common Stock are subject, including, but not limited to, pro rata reductions applicable
to any portion of the consideration payable in such Transaction and (c) will be conducted in such a 

  

 19 

 
manner as to be completed by the date which is the earlier of: (1) the deadline for elections to be made by holders of Class A Common Stock, and
(2) two Trading Days prior to the anticipated effective date of such Transaction. 
  
 (iii) This provision does not limit the rights of Holders in the event of a Fundamental Change, including the Company’s obligation to increase the Conversion Rate by the additional number of shares in connection
with a conversion or the Company’s right to elect to adjust the conversion obligation pursuant to Section 10 hereof. 
  
 Section 12. Consolidation, Merger and Sale of Assets. 
  
 (i) The Company, without the consent of the Holders, may consolidate 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 with or merge into, or transfer or lease all or substantially all its properties to, the Company; provided, however, that (a) the successor, transferee or lessee is
organized under the laws of the United States or any political subdivision thereof; (b) the shares of Series A Preferred Stock will become or be exchanged for shares of such successor, transferee or lessee, having in respect of such successor,
transferee or lessee the same powers, preferences and relative participating, optional or other special rights and the qualification, limitations or restrictions thereon, the Series A Preferred Stock had immediately prior to such transaction; and
(c) the Company delivers to the Transfer Agent an Officer’s Certificate and an Opinion of Counsel, acceptable to the Transfer Agent, stating that such transaction complies with this Certificate of Designations. 
  
 (ii) Upon any consolidation 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 12(i) hereof, the successor resulting from such consolidation 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 shares of Series A Preferred Stock, and thereafter, except in the
case of a lease, the predecessor (if still in existence) will be released from its obligations and covenants with respect to the Series A Preferred Stock. Nothing in this Section 12 limits the rights of Holders set out in Section 9 hereof.

  
 Section 13. Notices. 
  
 (i) When the Company is required, pursuant to this Certificate of
Designations, to give notice to Holders by issuing a press release, rather than directly to holders, the Company shall do so in a public medium that is customary for such press release; provided, however, that in such cases, publication of a
press release through the Dow Jones News Service shall be considered sufficient to comply with such notice obligation. 
  
 (ii) When the Company is required, pursuant to this Certificate of Designations, to give notice to Holders without specifying the method of giving such
notice, the Company shall do so by sending notice via first class mail or by overnight courier to the Holders of record as of a reasonably current date or by publication, as provided in Section 13(iii) hereof. 
  

 20 

 (iii) When the Company is required, pursuant to this Certificate of Designations, to give notice by
publication, the Company shall do so by publishing a notice in the national edition of The Wall Street Journal, The New York Times or a newspaper of national circulation chosen in good faith by the Company. 
  
 (iv) When the Company is required to give notice herein to any Holder within
a specified number of Trading Days prior to a specified event, the Company will identify such Trading Days in good faith based on its reasonable expectations for the application of the definition of “Trading Days” set forth herein. Any
notice issued in reliance on such identification will satisfy the Company’s obligation with respect to the timing of such notice, notwithstanding any subsequent events that may cause such days to fail to be Trading Days. 
  
 Section 14. Form. 
  
 (i) The shares of Series A Preferred Stock shall be issued in the form of one
or more permanent global shares (each, a share of “Global Preferred Stock”) in definitive, fully registered form with the global legend (the “Global Stock Legend”) and, until such time as otherwise determined by the
Company and the Transfer Agent, the restricted stock legend (the “Restricted Stock Legend”), each as set forth on the form of Series A Preferred Stock Certificate attached hereto as Exhibit B, which is hereby incorporated in and
expressly made a part of the terms of the Series A Preferred Stock. 
  
 (ii) Each share of Global Preferred Stock may have notations, legends or endorsements required by law, stock exchange rules, 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). The shares of Global Preferred Stock shall be deposited on behalf of the Holders represented thereby with the Transfer Agent, at its New York office, as custodian for the Depositary, and
registered in the name of the Depositary or a nominee of the Depositary, duly executed by the Company and countersigned and registered by the Transfer Agent as hereinafter provided. 
  
 (iii) The aggregate number of shares represented by each share of Global Preferred Stock may from time to time be increased
or decreased by adjustments made on the records of the Transfer Agent and the Depositary or its nominee as hereinafter provided. This Section 14 shall apply only to a share of Global Preferred Stock deposited with or on behalf of the Depositary. The
Company shall execute and the Transfer Agent shall, in accordance with this Section 14, countersign and deliver initially one or more shares of Global Preferred Stock that (a) shall be registered in the name of Cede & Co. or other
nominee of the Depositary and (b) shall be delivered by the Transfer Agent to Cede & Co. or pursuant to instructions received from Cede & Co. or held by the Transfer Agent as custodian for the Depositary pursuant to an
agreement between the Depositary and the Transfer Agent. 
  
 (iv)
Members of, or participants in, the Depositary (“Agent Members”) shall have no rights under this Certificate of Designations with respect to any share of Global Preferred Stock held on their behalf by the Depositary or by the
Transfer Agent as the custodian of the Depositary, or under such share of Global Preferred Stock, and the Depositary may be treated by the Company, the Transfer Agent and any agent of the Company or the Transfer 

  

 21 

 
Agent as the absolute owner of such share of Global Preferred Stock 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 the Depositary or impair, as between the Depositary and its Agent Members,
the operation of customary practices of the Depositary governing the exercise of the rights of a holder of a beneficial interest in any shares of Global Preferred Stock. 
  
 (v) Owners of beneficial interests in shares of Global Preferred Stock shall not be entitled to receive physical delivery of
certificated shares of Series A Preferred Stock, unless (x) the Depositary notifies the Company that it is unwilling or unable to continue as Depositary for the shares of Global Preferred Stock or if at any time the Depositary ceases to be a
clearing agency registered under the Exchange Act and, in either case a successor is not appointed within 90 days or (y) the Company in its discretion determines not to have all of the Series A Preferred Stock represented by the shares of
Global Preferred Stock. Any Series A Preferred Stock that is exchangeable pursuant to the preceding sentence is exchangeable for certificated shares of Series A Preferred Stock issuable for such number of shares and registered in such names as the
Depositary shall direct. Subject to the foregoing, the shares of Global Preferred Stock are not exchangeable, except for shares of Global Preferred Stock representing the same aggregate number of shares and registered in the name of the Depositary
or its nominee. 
  
 (vi) (a) An Officer shall sign the share of
Global Preferred Stock for the Company, in accordance with the Company’s bylaws and applicable law, by manual or facsimile signature. 
  
 (b) If an Officer whose signature is on a share of Global Preferred Stock no longer holds that office at the time the Transfer Agent
countersigns the share of Global Preferred Stock, the share of Global Preferred Stock shall be valid nevertheless. 
  
 (c) A share of Global Preferred Stock shall not be valid until an authorized signatory of the Transfer Agent manually countersigns such
share of Global Preferred Stock. The signature shall be conclusive evidence that such share of Global Preferred Stock has been authenticated under the terms of the Series A Preferred Stock. Each share of Global Preferred Stock shall be dated the
date of its authentication. 
  
 Section 15. Transfer of
Securities. 
  
 (i) The shares of Series A Preferred Stock, the
shares of Class A Common Stock issuable upon conversion of the Series A Preferred Stock and any shares of Class A Common Stock delivered as payment for a dividend or Additional Shares in connection with an increase in the Conversion Rate
pursuant to this Certificate of Designations (collectively, the “Securities”) have not been registered under the Securities Act or any other applicable securities laws and may not be offered or sold except in compliance with the
registration requirements of the Securities Act and any other applicable securities laws, or pursuant to an 

  

 22 

 
exemption from registration under the Securities Act and any other applicable securities laws, or in a transaction not subject to such laws. 
  
 (ii) Notwithstanding any provision to the contrary herein, transfers of a
share of Global Preferred Stock, in whole or in part, or of any beneficial interest therein, shall be made as follows: 
  
 (a) Transfers of a share of Global Preferred Stock shall be limited to transfers of such share of Global Preferred Stock in whole, but not
in part, to nominees of the Depositary or to a successor of the Depositary or such successor’s nominee. 
  
 (b) If an owner of a beneficial interest in a share of Global Preferred Stock deposited with the Depositary or with the Transfer Agent as
custodian for the Depositary wishes at any time to transfer its interest in such share of Global Preferred Stock bearing the Restricted Stock Legend to a Person who is eligible to take delivery thereof in the form of a beneficial interest in a share
of Global Preferred Stock bearing the Restricted Stock Legend, such owner may, subject to the rules and procedures of the Depositary, cause the exchange of such interest for a new beneficial interest in the applicable share of Global Preferred
Stock. Upon receipt by the Transfer Agent at its office in The City of New York of (1) instructions from the Holder directing the Transfer Agent to transfer its interest in the applicable share of Global Preferred Stock, such instructions to
contain the name of the transferee and appropriate account information, (2) a certificate in the form of the Certificate of Transfer attached hereto as Exhibit C, given by the transferor, to the effect set forth therein, and (3) such other
certifications, legal opinions and other information as the Company or the Transfer Agent may reasonably require to confirm that such transfer is being made in accordance with the transfer restrictions set forth in the Restricted Stock Legend, the
Transfer Agent shall effect such transfer of such shares of Global Preferred Stock. 
  
 (c) If a request is made by the owner of a beneficial interest to transfer its interest from a share of Global Preferred Stock bearing the
Restricted Stock Legend to a share of Global Preferred Stock not bearing the Restricted Stock Legend, the transfer shall not be made unless there is delivered to the Company and the Transfer Agent such satisfactory evidence, which may include an
Opinion of Counsel, as may be reasonably required by the Company, that such shares of Series A Preferred Stock are not “restricted securities” within the meaning of Rule 144 under the Securities Act. Upon provision of such satisfactory
evidence, the Transfer Agent shall instruct the Depositary to reduce or cause to be reduced such share of Global Preferred Stock bearing the Restricted Stock Legend by the number of shares of the beneficial interest therein to be exchanged and to
debit or cause to be debited from the account of the Person making such transfer the beneficial interest in the share of Global Preferred Stock that is being transferred, and concurrently with such reduction and debit, the 

  

 23 

 
Transfer Agent will instruct the Depositary to increase or cause to be increased the applicable share of Global Preferred Stock not bearing the Restricted
Stock Legend by the aggregate number of shares being exchanged and to credit or cause to be credited to the account of the transferee the beneficial interest in the share of Global Preferred Stock that is being transferred. 
  
 (iii) Except in connection with a registration statement relating to the
Securities, if shares of Series A Preferred Stock in certificated form are delivered upon the transfer, exchange or replacement of shares of Series A Preferred Stock bearing the Restricted Stock Legend, or if a request is made to remove such
Restricted Stock Legend on shares of Series A Preferred Stock, the certificates representing the shares of Series A Preferred Stock so issued shall bear the Restricted Stock Legend and the Restricted Stock Legend shall not be removed unless there is
delivered to the Company and the Transfer Agent such satisfactory evidence, which may include an Opinion of Counsel licensed to practice law in the State of New York, as may be reasonably required by the Company, that such shares of Series A
Preferred Stock are not “restricted securities” within the meaning of Rule 144 under the Securities Act. Upon provision of such satisfactory evidence, the Transfer Agent, at the direction of the Company, shall countersign and deliver
certificates representing the shares of Series A Preferred Stock that do not bear the Restricted Stock Legend. 
  
 (iv) Shares of Class A Common Stock issued upon a conversion of the shares of Series A Preferred Stock bearing the Restricted Stock Legend or upon
the payment of dividends or Additional Shares in connection with an increased Conversion Rate, prior to the second anniversary of the Issue Date, shall be in global form and bear a common stock legend, a form of which is attached hereto as Exhibit D
(the “Restricted Class A Common Stock Legend”). Transfers of shares of Class A Common Stock held in certificated and global form may be effected in the same manner as transfers of the Series A Preferred Stock, mutatis
mutandis. 
  
 (v) The Company will refuse to register any
transfer of Securities that is not made in accordance with the provisions of the Restricted Stock Legend or the Restricted Common Stock Legend, as applicable; provided that the provisions of this Section 15(v) shall not be applicable to any share of
Series A Preferred Stock that does not bear any Restricted Stock Legend or any Restricted Common Stock Legend. 
  
 Section 16. Fractional Shares. 
  
 No fractional shares of Class A Common Stock shall be issued to Holders. In lieu of any fraction of a share of Class A Common Stock that would
otherwise be issuable in respect of the aggregate number of shares of the Series A Preferred Stock surrendered by a Holder upon a conversion or issuable to a Holder in respect of a stock dividend or payment in connection with an increased Conversion
Rate in shares of Class A Common Stock, such Holder shall have the right to receive an amount in cash (computed to the nearest cent) equal to the same fraction of (a) in the case of any payment of a stock dividend or payment in connection
with an increased Conversion Rate, the Closing Sale Price on the Trading Day next preceding the issuance of such Class A Common Stock or (b) in the case of Class A Common Stock issuable upon conversion, the Closing Sale Price on the
Trading Day next preceding the Conversion Date. 
  

 24 

 Section 17. Definitions. 
  
 (i) “Additional Dividends” shall have the meaning ascribed thereto in Section 2(iii). 
  
 (ii) “Additional Shares” shall have the meaning ascribed
thereto in Section 9(iii) hereof. 
  
 (iii) “Agent
Members” shall have the meaning ascribed thereto in Section 14(iv) hereof. 
  
 (iv) “Board of Directors” shall have the meaning ascribed thereto in the preamble hereof and, as used herein, shall include any duly authorized committee of the Board of Directors. 
  
 (v) “Board Resolution” shall mean a copy of a resolution
certified by the Secretary or an Assistant Secretary of the Company to have been duly adopted by the Board of Directors and to be in full force and effect on the date of such certification, and delivered to the Transfer Agent. 
  
 (vi) “Business Day” means any day other than a Saturday or
Sunday or any other day on which banks in The City of New York are authorized or required by law or executive order to close. 
  
 (vii) “Capital Stock” of any Person means any and all shares, interests, participations or other equivalents however designated of
corporate stock or other equity participations, including partnership interests, whether general or limited, of such Person and any rights (other than debt securities convertible or exchangeable into an equity interest), warrants or options to
acquire an equity interest in such Person. 
  
 (viii)
“Class A Common Stock” shall mean the class A common stock, par value $0.01 per share, of the Company, or any other class of stock resulting from successive changes or reclassifications of such class A common stock consisting solely
of changes in par value, or from par value to no par value, or as a result of a subdivision, combination, merger, consolidation or similar transaction in which the Company is a constituent Corporation. Following a Transaction pursuant to which the
Series A Preferred Stock is convertible into Reference Property, the “Class A Common Stock” for purposes of this Certificate of Designations shall mean a unit of such Reference Property based on one share of Class A Common Stock
immediately prior to such Transaction. 
  
 (ix) “Class B
Common Stock” shall mean the class B common stock, par value $0.01 per share, of the Company, or any other class of stock resulting from successive changes or reclassifications of such class B common stock consisting solely of changes in
par value, or from par value to no par value, or as a result of a subdivision, combination, merger, consolidation or similar transaction in which the Company is a constituent corporation. 
  

 25 

 (x) The “Closing Sale Price” of the Class A Common Stock on any date means the
closing sale price per share (or if no closing sale price is reported, the average of the closing bid and ask prices or, if more than one in either case, the average of the average closing bid and the average closing ask prices) on such date as
reported on the principal United States securities exchange on which such Class A Common Stock is traded or, if such Class A Common Stock is not listed on a United States national or regional securities exchange, as reported by Nasdaq or
by the National Quotation Bureau Incorporated. In the absence of such a quotation, the Closing Sale Price of the Class A Common Stock will be the average of the mid-point of the last bid and ask prices for the Class A Common Stock on the
relevant date from each of at least three nationally recognized independent investment banking firms selected by the Company for this purpose. 
  
 (xi) “Company” shall have the meaning ascribed thereto in the preamble hereof. 
  
 (xii) “Conversion Date” shall have the meaning ascribed
thereto in Section 7(iii). 
  
 (xiii) “Conversion
Price” shall have the meaning ascribed thereto in Section 7(i) hereof. 
  
 (xiv) “Conversion Rate” shall have the meaning ascribed thereto in Section 7(i) hereof. 
  
 (xv) “Conversion Shares” shall have the meaning ascribed thereto in Section 8(ii) hereof. 
  
 (xvi) “Debt Obligations” shall mean all of the
Company’s existing and future debt obligations or indebtedness of any kind. 
  
 (xvii) “Delayed Dividends” shall have the meaning ascribed thereto in Section 2(viii) hereof. 
  
 (xviii) “Depositary” shall mean Depository Trust Company (“DTC”) or its successor depositary. 
  
 (xix) “DGCL” shall have the meaning ascribed thereto in the
preamble hereof. 
  
 (xx) “Distribution Date”
shall have the meaning ascribed thereto in Section 8(ii)(a) hereof. 
  
 (xxi) “Dividend Payment Date” shall mean February 15, May 15, August 15 and November 15 of each year (or the next succeeding Business Day if such date is not a Business Day), commencing
February 15, 2006. 
  
 (xxii) “Dividend
Rate” shall have the meaning ascribed thereto in Section 2(i) hereof. 
  

 26 

 (xxiii) “Dividend Record Date” shall mean (a) with respect to a dividend payment
other than Delayed Dividends, the first calendar day (or the next succeeding Business Day if such day is not a Business Day) of the calendar month in which such Dividend Payment Date falls and (b) with respect to Delayed Dividends, the record
date selected pursuant to Section 2(viii) hereof. 
  
 (xxiv)
“DTC” shall have the meaning ascribed thereto in Section 17(xviii) of this Section 17. 
  
 (xxv) “Effective Date” shall mean the actual effective date of a Fundamental Change. 
  
 (xxvi) “Exchange Act” shall mean the Securities Exchange Act
of 1934, as amended, and the rules and regulations promulgated thereunder. 
  
 (xxvii) “Expiration Time” shall have the meaning ascribed thereto in Section 8(i)(e) hereof. 
  
 (xxviii) “Fair Market Value” means the amount that a willing buyer would pay a willing seller in an arm’s length transaction.

  
 (xxix) “Fundamental Change” means (a) a
“person” or “group” within the meaning of Section 13(d) of the Exchange Act other than the Company, its Subsidiaries or any employee benefit plan of the Company or any of its Subsidiaries, files a Schedule TO or any
schedule, form or report under the Exchange Act disclosing that the person or group has become the direct or indirect ultimate “beneficial owner”, as defined in Rule 13d-3 under the Exchange Act, of the common equity of the Company
representing more than 50% of the voting power of its common equity; (b) consummation of any share exchange, consolidation or merger of the Company pursuant to which the Class A Common Stock will be converted into cash, securities or other
property or any sale, lease or other transfer in one transaction or a series of transactions of all or substantially all of the consolidated assets of the Company and its Subsidiaries, taken as a whole, to any Person other than a Subsidiary of the
Company; provided, however, that a transaction where the holders of more than 50% of all classes of the common equity of the Company immediately prior to the transaction own, directly or indirectly, more than 50% of all classes of common
equity of the continuing or surviving corporation or transferee immediately after the event shall not be a Fundamental Change; (c) the Company is liquidated or dissolved or holders of its Capital Stock approve any plan or proposal for its
liquidation or dissolution; or (d) the Class A Common Stock ceases to be listed on a national securities exchange or quoted on Nasdaq or another over-the-counter market in the United States; provided, however, that a Fundamental
Change shall not be deemed to have occurred in the case of a merger or consolidation if at least 90% of the consideration in the aggregate for all classes of the Company’s Capital Stock (and excluding cash payments for fractional shares and
cash payment pursuant to dissenters’ appraisal rights) in the merger or consolidation constituting the Fundamental Change consists of shares of common stock of a United States company with full voting rights traded on a national securities
exchange or quoted on the NASDAQ (or which shall be so traded or quoted when issued or exchanged in connection with such Fundamental Change) (such securities being referred to as “Publicly Traded Securities”). 
  

 27 

 (xxx) “Fundamental Change Notice” shall have the meaning ascribed thereto in Section
9(i) hereof. 
  
 (xxxi) “Fundamental Change Notice
Date” shall have the meaning ascribed thereto in Section 9(ii) hereof. 
  
 (xxxii) “Fundamental Change Option” shall have the meaning ascribed thereto in Section 9(ii) hereof. 
  
 (xxxiii) “Global Preferred Stock” shall have the meaning ascribed thereto in Section 14(i) hereof. 
  
 (xxxiv) “Global Stock Legend” shall have the meaning
ascribed thereto in Section 14(i) hereof. 
  
 (xxxv)
“Holders” shall have the meaning ascribed thereto in Section 2(i) hereof. 
  
 (xxxvi) “Initial Six-Quarter Period” shall have the meaning ascribed thereto in Section 2(ii) hereof. 
  
 (xxxvii) “Issue Date” shall mean November 15, 2005, the
original date of issuance of the Series A Preferred Stock. 
  
 (xxxviii) “Junior Stock” shall mean Class A Common Stock and Class B Common Stock of the Company and each other class of Capital Stock or series of preferred stock established after the Issue Date, by the Board of
Directors, the terms of which do not expressly provide that such class or series ranks senior to or on parity with the Series A Preferred Stock as to dividend rights or rights upon the liquidation, winding-up or dissolution of the Company.

  
 (xxxix) “Liquidation Preference” shall have
the meaning ascribed thereto in Section 2(i) hereof. 
  
 (xl)
“Market Value” means, with respect to any date of determination, the average Closing Sale Price of the Class A Common Stock for a five consecutive Trading Day period on the New York Stock Exchange (or such other national
securities exchange or automated quotation system on which the Class A Common Stock is then listed or authorized for quotation or, if not so listed or authorized for quotation, the average of the mid-point of the last bid and ask prices for the
Class A Common Stock on the relevant date from each of at least three nationally recognized independent investment banking firms selected by the Company for this purpose) preceding the earlier of (i) the day preceding the date of
determination and (ii) the day before the “ex date” with respect to the issuance or distribution requiring such computation. For purposes of this definition, the term “ex date” when used with respect to any issuance or
distribution, means the first date on which the Class A Common Stock trades, regular way, on the New York Stock Exchange or other principal U.S. securities exchange or quotation system on which the Class A Common Stock is listed or quoted
at that time, without the right to receive the issuance or distribution. 
  

 28 

 (xli) “Officer” means the Chief Executive Officer, the Chief Financial Officer, the
Treasurer, or the General Counsel of the Company. 
  
 (xlii)
“Officer’s Certificate” means a certificate signed by two Officers of the Company. 
  
 (xliii) “Opinion of Counsel” shall mean a written opinion from legal counsel who is acceptable to the Company or the Transfer Agent. The
counsel may be an employee of or counsel to the Company or Transfer Agent. 
  
 (xliv) “Parity Stock” shall mean any class of Capital Stock or series of preferred stock established after the Issue Date, the terms of which expressly provide that such class or series will rank on
parity with the Series A Preferred Stock as to dividend rights or rights upon the liquidation, winding-up or dissolution of the Company. 
  
 (xlv) “Person” means any individual, corporation, limited liability company, partnership, joint venture, trust, unincorporated
organization or government or any agency or political subdivision thereof. 
  
 (xlvi) “Public Acquirer Common Stock” shall have the meaning ascribed to such term in the definition of “Public Acquirer Fundamental Change” in Section 17(xlvii) hereof. 

 
 (xlvii) “Public Acquirer Fundamental Change” means any
acquisition of the Company pursuant to clause (b) of the definition of Fundamental Change that would otherwise obligate the Company to increase the Conversion Rate as described in Section 9(iii) hereof in which the acquirer has a class of
common stock traded on a national securities exchange or quoted on the Nasdaq National Market or which will be so traded or quoted when issued or exchanged in connection with such Fundamental Change (the “Public Acquirer Common
Stock”). If an acquirer does not itself have a class of common stock satisfying the foregoing requirement, it will be deemed to have Public Acquirer Common Stock if a corporation that directly or indirectly owns at least a majority of the
acquirer, has a class of common stock satisfying the foregoing requirement and all references to Public Acquirer Common Stock will refer to such class of common stock. Majority owned for these purposes means having the “beneficial
ownership” (as defined in Rule 13d-3 under the Exchange Act) of more than 50% of the total voting power of all shares of the respective entity’s capital stock that are entitled to vote generally in the election of directors. 
  
 (xlviii) “Purchased Shares” shall have the meaning ascribed
thereto in Section 8(i)(e) hereof. 
  
 (xlix) “Redemption
Date” shall have the meaning ascribed thereto in Section 6(vi). 
  
 (l) “Reference Property” shall have the meaning ascribed thereto in Section 11(i) hereof. 
  

 29 

 (li) “Registration Default” shall have the meaning ascribed thereto in Section 2(iii).

  
 (lii) “Restated Certificate of Incorporation”
shall have the meaning ascribed thereto in the preamble hereof. 
  
 (liii) “Restricted Class A Common Stock Legend” shall have the meaning ascribed thereto in Section 15(iv) hereof. 
  
 (liv) “Restricted Stock Legend” shall have the meaning ascribed thereto in Section 14(i) hereof. 
  
 (lv) “SEC” shall have the meaning ascribed thereto in
Section 3(v)(b)(4) hereof. 
  
 (lvi) “Securities”
shall have the meaning ascribed thereto in Section 15(i) hereof. 
  
 (lvii) “Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and regulation promulgated thereunder. 
  
 (lviii) “Senior Stock” shall mean each class of Capital Stock or series of preferred stock established after the Issue Date, the terms of
which expressly provide that such class or series will rank senior to the Series A Preferred Stock as to dividend rights or rights upon the liquidation, winding-up or dissolution of the Company. 
  
 (lix) “Series A Preferred Stock” shall have the meaning
ascribed thereto in the preamble hereof. 
  
 (lx)
“Subsidiary” means, with respect to any Person, (a) any corporation, association or other business entity of which more than 50% of the total voting power of shares of Capital Stock entitled (without regard to the occurrence of
any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of that Person (or a combination thereof) and
(b) any partnership (1) the sole general partner or the managing general partner of which is such Person or a Subsidiary of such Person or (2) the only general partners of which are such Person or of one or more Subsidiaries of such
Person (or any combination thereof). 
  
 (lxi)
“Termination Date” shall have the meaning ascribed thereto in Section 6(ii). 
  
 (lxii) “Trading Day” means a day during which trading in securities generally occurs on the New York Stock Exchange or, if the Class A Common Stock is not listed on the New York Stock Exchange,
on the principal other national or regional securities exchange on which the Class A Common Stock is then listed or, if the Class A Common Stock is not listed on a national or regional securities exchange, on Nasdaq or, if the Class A
Common Stock is not quoted on Nasdaq, on the principal other market on which the Class A Common Stock is then traded. 
  

 30 

 (lxiii) “Transaction” shall have the meaning ascribed thereto in Section 11(i) hereof.

  
 (lxiv) “Transfer Agent” means EquiServe Trust
Company N.A. unless and until a successor is selected by the Company, and then such successor; provided that any Transfer Agent may also serve as paying agent or conversion agent, as the case may be. 
  
 (lxv) “Triggering Event” means a specified event the
occurrence of which entitles the holders of rights, options or warrants to exercise such rights, option or warrants. 
  
 (lxvi) “Volume-Weighted Average Price” means, as to the Class A Common Stock per share on a Trading Day, the volume-weighted average
price per share of Class A Common Stock on the New York Stock Exchange (or such other national securities exchange or automated quotation system on which the Class A Common Stock is then listed or authorized for quotation or, if not so
listed or authorized for quotation, the average of the mid-point of the last bid and ask prices for the Class A Common Stock on the relevant date from each of at least three nationally recognized independent investment banking firms selected by
the Company for this purpose) during the regular principal trading hours on such exchange or quotation system on that Trading Day, as displayed by Bloomberg Business News or such other comparable service determined in good faith by the Company that
has replaced Bloomberg Business News. 
  
 Section 18.
Miscellaneous. 
  
 (i) Notwithstanding any provision herein
to the contrary, in accordance with Sections 5, 6, 7, 8 or 9, the procedures for conversion of shares of Series A Preferred Stock not held in certificated form will be governed by arrangements among the Depositary of the shares of Series A Preferred
Stock, its participants and Persons that may hold beneficial interests through such participants designed to permit settlement without the physical movement of certificates. Payments, transfers, deliveries, exchanges and other matters relating to
beneficial interests in global security certificates may be subject to various policies and procedures adopted by the Depositary from time to time including procedures for the payment of funds equal to dividends payable to which a Holder is not
entitled upon conversion and taxes or duties, if any. 
  
 (ii) The
liquidation preference and the annual dividend rate set forth herein each shall be subject to equitable adjustment whenever there shall occur a stock split, combination, reclassification or other similar event involving the Series A Preferred Stock.
Such adjustments shall be determined in good faith by the Board of Directors (and such determination shall be conclusive) and submitted by the Board of Directors to the Transfer Agent. 
  
 (iii) For the purposes of Section 8, the number of shares of Class A Common Stock at any time outstanding shall not
include shares held in the treasury of the Company but shall include shares issuable in respect of scrip certificates issued in lieu of fractions of shares of Class A Common Stock. 
  
 (iv) If the Company shall take any action affecting the Class A Common Stock, other than any action described in
Section 8, that in the opinion of the Board of Directors would 

  

 31 

 
materially adversely affect the conversion rights of the Holders, then the Conversion Price for the Series A Preferred Stock may be adjusted, to the extent
permitted by law, in such manner, and at such time, as the Board of Directors may determine to be equitable in the circumstances. 
  
 (v) The Company covenants that it will at all times reserve and keep available, free from preemptive rights, out of the aggregate of its authorized but
unissued shares of Class A Common Stock for the purpose of effecting conversion of the Series A Preferred Stock, the full number of shares of Class A Common Stock deliverable upon the conversion of all outstanding shares of Series A
Preferred Stock not theretofore converted. For purposes of this Section 18(v), the number of shares of Class A Common Stock that shall be deliverable upon the conversion of all outstanding shares of Series A Preferred Stock shall be computed as
if at the time of computation all such outstanding shares were held by a single Holder. 
  
 (vi) The Company covenants that any shares of Class A Common Stock issued upon conversion of the Series A Preferred Stock or issued in respect of a stock dividend payment or Additional Shares in connection with
an increased Conversion Rate shall be validly issued, fully paid and non-assessable. 
  
 (vii) The Company shall pay any and all documentary stamp or similar issue or transfer taxes payable in respect of the issue or delivery of shares of Class A Common Stock or other securities or property upon
conversion of the Series A Preferred Stock pursuant thereto; provided, however, that the Company shall not be required to pay any tax that may be payable in respect of any transfer involved in the issue or delivery of shares of Class A
Common Stock or other securities or property in a name other than that of the Holder of the Series A Preferred Stock to be converted and no such issue or delivery shall be made unless and until the Person requesting such issue or delivery has paid
to the Company the amount of any such tax or established, to the reasonable satisfaction of the Company, that such tax has been paid or is not applicable. 
  
 (viii) Except as otherwise provided in Section 6(vi) hereof, the Series A Preferred Stock is not redeemable. 
  
 (ix) The Series A Preferred Stock is not entitled to any preemptive or
subscription rights in respect of any securities of the Company. 
  
 (x) Whenever possible, each provision hereof shall be interpreted in a manner as to be effective and valid under applicable law, but if any provision hereof is held to be prohibited by or invalid under applicable law, such provision shall
be ineffective only to the extent of such prohibition or invalidity, without invalidating or otherwise adversely affecting the remaining provisions hereof. If a court of competent jurisdiction should determine that a provision hereof would be valid
or enforceable if a period of time were extended or shortened or a particular percentage were increased or decreased, then such court may make such change as shall be necessary to render the provision in question effective and valid under applicable
law. 
  
 (xi) Series A Preferred Stock may be issued in fractions
of a share which shall entitle the Holder, in proportion to such Holder’s fractional shares, to exercise voting rights, 

  

 32 

 
receive dividends, participate in distributions and have the benefit of all other rights of Holders of Series A Preferred Stock. 
  
 (xii) Subject to applicable escheat laws, any monies set aside by the Company
in respect of any payment with respect to shares of the Series A Preferred Stock, or dividends thereon, and unclaimed at the end of two years from the date upon which such payment is due and payable shall revert to the general funds of the Company,
after which reversion the Holders of such shares shall look only to the general funds of the Company for the payment thereof. Any interest accumulated on funds so deposited shall be paid to the Company from time to time. 
  
 (xiii) Except as may otherwise be required by law, the shares of Series A
Preferred Stock shall not have any voting powers, preferences and relative, participating, optional or other special rights, other than those specifically set forth in this Certificate of Designations or the Restated Certificate of Incorporation.

  
 (xiv) The headings of the various subdivisions hereof are for
convenience of reference only and shall not affect the interpretation of any of the provisions hereof. 
  
 (xv) If any of the voting powers, preferences and relative, participating, optional and other special rights of the Series A Preferred Stock and
qualifications, limitations and restrictions thereof set forth herein is invalid, unlawful or incapable of being enforced by reason of any rule of law or public policy, all other voting powers, preferences and relative, participating, optional and
other special rights of Series A Preferred Stock and qualifications, limitations and restrictions thereof set forth herein which can be given effect without the invalid, unlawful or unenforceable voting powers, preferences and relative,
participating, optional and other special rights of Series A Preferred Stock and qualifications, limitations and restrictions thereof shall, nevertheless, remain in full force and effect, and no voting powers, preferences and relative,
participating, optional or other special rights of Series A Preferred Stock and qualifications, limitations and restrictions thereof herein set forth shall be deemed dependent upon any other such voting powers, preferences and relative,
participating, optional or other special rights of Series A Preferred Stock and qualifications, limitations and restrictions thereof unless so expressed herein. 
  

(xvi) Shares of Series A Preferred Stock that (a) have not been issued on or before December 8, 2005 or (b) have been issued and
reacquired in any manner, including shares of Series A Preferred Stock purchased or redeemed or exchanged or converted, shall (upon compliance with any applicable provisions of the laws of Delaware) have the status of authorized but unissued shares
of preferred stock of the Company undesignated as to series and may be designated or redesignated and issued or reissued, as the case may be, as part of any series of preferred stock of the Company, provided that any issuance of such shares as
Series A Preferred Stock must be in compliance with the terms hereof. 
  
 (xvii) If any of the Series A Preferred Stock certificates shall be mutilated, lost, stolen or destroyed, the Company shall issue, in exchange and in substitution for and upon cancellation of the mutilated Series A Preferred Stock
certificate, or in lieu of and substitution for the Series A Preferred Stock certificate lost, stolen or destroyed, a new Series A Preferred Stock certificate of like tenor and representing an equivalent amount of shares of Series A Preferred Stock,
but only upon receipt of evidence of such loss, theft or destruction of such Series A Preferred Stock certificate and indemnity, if requested, satisfactory to the Company and the Transfer Agent. 
  

 33 

 IN WITNESS WHEREOF, the Company has caused this Certificate of Designations to be duly executed by Edward B. Stead,
Executive Vice President and General Counsel of the Company this fourteenth day of November, 2005. 
  

			
	 BLOCKBUSTER INC.

		
	 By:
	 	/s/ Edward B. Stead
	 Name:
	 	 Edward B. Stead

	 Title:
	 	 Executive Vice President and
 General Counsel

  

 34 

  
 EXHIBIT A 

 
 FORM OF NOTICE OF CONVERSION 
  
 (To be Executed by the Registered Holder 
 in order to convert the 7.50% Series A Cumulative Convertible Perpetual Preferred Stock) 
  
 The undersigned hereby irrevocably elects to convert (the “Conversion”), as of the date written below,
         shares of 7.50 % Series A Cumulative Convertible Perpetual Preferred Stock (the “Series A Preferred Stock”), represented by stock certificate No(s).
         (the “Preferred Stock Certificates”) into shares of class A common stock, par value $0.01 per share (“Class A Common Stock”), of Blockbuster Inc. (the “Company”)
according to the conditions of the Certificate of Designations establishing the terms of the Series A Preferred Stock, dated November 14, 2005, as such may be amended from time to time (the “Certificate of Designations”). 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 such certificates. No fee will be charged to the holder for any conversion,
except for transfer taxes, if any. A copy of each Preferred Stock 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 shares of Class A Common Stock issuable to the undersigned upon
conversion of the Series A Preferred Stock shall be made pursuant to registration of the Class A Common Stock under the Securities Act of 1933 (the “Act”) or pursuant to an exemption from registration under the Act. 
  
 The Company is not required to issue shares of Class A Common Stock until the original
Preferred Stock 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 shares of Class A Common Stock to an overnight courier as
promptly as practicable following receipt of the original Preferred Stock Certificate(s) to be converted. 
  
 Capitalized terms used but not defined herein shall have the meanings ascribed thereto in or pursuant to the Certificate of Designations. 
  

					
	Date of Conversion:	  	_______________________________	  	 
			
	Applicable Conversion Rate:	  	_______________________________	  	 
		
	Exercise of Fundamental Change Option:	  	 ̈ yes     ̈ no
			
	Number of Shares of Series A Preferred Stock:	  	_______________________________	  	 
			
	Number of Shares of Class A Common Stock to be Issued:	  	_______________________________	  	 

  

			
		
	 Signature: 
	 	 

			
		
	 Name: 
	 	 

			
		
	 Address1: 
	 	 

			
		
	 Fax No.: 
	 	 

	1	Address where shares of Class A Common Stock and any other payments or certificates shall be sent by the Company. 

  

 A-1 

  
 EXHIBIT B 

 
 FORM OF SERIES A PREFERRED STOCK CERTIFICATE 
  
 7.50% SERIES A CUMULATIVE CONVERTIBLE PERPETUAL PREFERRED STOCK 
 (Liquidation Preference $1,000 per Share) 
  
 Blockbuster Inc. 
  
 Incorporated under the Laws of the State of Delaware 
  
 CUSIP: 093679306 
 CERTIFICATE NUMBER 1 _________ SHARES 
  
 This represents and certifies that CEDE & CO is the owner of _______
fully paid and non-assessable shares of 7.50% Series A Cumulative Convertible Perpetual Preferred Stock (Liquidation Preference $1,000 per Share), of Blockbuster Inc. (the “company”) transferable upon the books of the company by the
holder hereof in person or by the holder’s duly authorized attorney upon surrender of this certificate properly endorsed. This certificate and the shares represented hereby are issued and shall be held subject to all of the provisions of the
Restated Certificate of Incorporation and all amendments thereto (copies of which are on file at the office of the company), to which the holder hereof by acceptance hereof expressly assents. 
  
 [INSERT IF GLOBAL PREFERRED STOCK] UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR
IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL IN AS MUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO. HAS AN INTEREST HEREIN. 
  
 TRANSFERS OF THIS GLOBAL PREFERRED STOCK SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S
NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL PREFERRED STOCK SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE CERTIFICATE OF DESIGNATIONS REFERRED TO BELOW. 
  
 IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT
SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH REGISTRAR AND TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS. 
  
 THE SECURITY EVIDENCED BY THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT OF 1933”), OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER: 
  
 (1) REPRESENTS THAT IT IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT OF 1933; 
  
 (2) AGREES THAT IT
WILL NOT, PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”) THAT IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS
SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY), RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY OR THE CLASS A 

  

 B-1 

 
COMMON STOCK ISSUABLE UPON CONVERSION OF SUCH SECURITY EXCEPT (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) TO A QUALIFIED INSTITUTIONAL BUYER
IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT OF 1933, (C) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT OF 1933 (IF AVAILABLE), OR (D) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN
DECLARED EFFECTIVE UNDER THE SECURITIES ACT OF 1933 AND WHICH CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER; AND 
  
 (3) AGREES THAT IT WILL, PRIOR TO ANY TRANSFER OF THIS SECURITY WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS SECURITY, FURNISH TO
THE ISSUER AND TRANSFER AGENT SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS MAY BE REQUIRED TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT. IN ANY CASE, THE HOLDER HEREOF WILL NOT, DIRECTLY OR INDIRECTLY, ENGAGE IN ANY HEDGING TRANSACTION WITH REGARD TO THIS SECURITY OR ANY SHARES OF CLASS A COMMON STOCK ISSUABLE UPON CONVERSION OF SUCH SECURITY, EXCEPT AS PERMITTED
BY THE SECURITIES ACT OF 1933. 
  
 IN WITNESS WHEREOF, Blockbuster Inc. has
executed this Certificate as of the date set forth below. 
  

			
	BLOCKBUSTER INC.
		
	 By:
	 	 
	 Name: 
	 	 
	 Title:
	 	 
		
	 By:
	 	 
	 Name: 
	 	 
	 Title:
	 	 
		
	 Dated: 
	 	________________________________

  

 B-2 

  
 TRANSFER AGENT’S
CERTIFICATE OF AUTHENTICATION 
  
 This is one of the certificates representing
shares of Preferred Stock referred to in the within mentioned Certificate of Designations. 
  

			
	as Transfer Agent
		
	 By:
	 	 
	 Name: 
	 	 
	 Title:
	 	 Authorized Signatory

		
	 Dated: 
	 	________________________________

  

 B-3 

  
 REVERSE OF THE SECURITY

  
 The company will furnish to any stockholder, upon request and
without charge, a full statement of the information required by §151(f) of the General Corporation Law of the State of Delaware with respect to the powers, designations, preferences and relative, participating, optional, or other special rights
of the 7.50% Series A Cumulative Convertible Perpetual Preferred Stock (Liquidation Preference $1,000 per Share) and the qualifications, limitations or restrictions on those preferences or rights of such preferred stock and each other class or
series authorized to be issued. Any such request must be made to the secretary of the company or to the Transfer Agent. 
  
 ASSIGNMENT 
  
 For Value Received, ___________ hereby sells, assigns and transfers unto _________ (print or typewrite name, address and social security or other
identifying number of assignee) Shares of the stock represented by this Certificate, and does hereby irrevocably constitute and appoint attorney, to transfer the said stock on the books of the within named company with full power of substitution in
the premises. 
  
 Dated: ________________________
  

			
	 X
	 	 

  
 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. 
  

 B-4 

  
 EXHIBIT C 

 
 FORM OF CERTIFICATE OF TRANSFER OF PREFERRED STOCK 
 (Transfers pursuant to Section 14 of the Certificate of Designations) 
  
 Re: Blockbuster Inc. (the “Company”) 
  
 7.50% Series A Cumulative Convertible Perpetual Preferred Stock 
  
 Reference is hereby made to the Certificate of Designations establishing the terms of the Series A Cumulative Convertible Perpetual Preferred Stock
(“Series A Preferred Stock”), dated November 14, 2005, as such may be amended from time to time (the “Certificate of Designations”). Capitalized terms used but not defined herein shall have the respective meanings given to
them in the Certificate of Designations. 
  
 This Letter relates
to _____ shares of Series A Preferred Stock (the “Securities”), which are held in the form of a Global Preferred Share (CUSIP NO. 093679306) with the Depositary in the name of __________ (the “Transferor”) to effect the transfer
of the Securities. 
  
 In connection with such request, and in
respect of such shares of Series A Preferred Stock, the Transferor does hereby certify that the shares of Series A Preferred Stock are being transferred (i) in accordance with applicable securities laws of any state of the United States or any
other jurisdiction and (ii) in accordance with their terms. 
  
 CHECK ONE BOX BELOW: 
  
 (1)
 ̈ to a transferee that the Transferor reasonably believes is a qualified institutional buyer within the meaning of Rule 144A under the
Securities Act of 1933 (the “Securities Act”) purchasing for its own account or for the account of a qualified institutional buyer in a transaction meeting the requirements of Rule 144A; 
  
 (2)  ̈ pursuant to an exemption from registration under the Securities Act provided by Rule 144 thereunder (if available); 
  
 (3)  ̈ in accordance
with another exemption from the registration requirements of the Securities Act (based upon an opinion of counsel if the Company so requests); or 
  
 (4)  ̈ pursuant to a registration statement that
has been declared effective under the Securities Act and which continues to be effective at the time of such transfer. 
  
 Unless one of the boxes is checked, the Transfer Agent will refuse to register any of the Securities evidenced by this certificate in the name of any
person other than the registered holder thereof; provided, however, that if box (2) or (3) is checked, the Transfer Agent shall be entitled to require, prior to registering any such transfer of the Securities, such legal opinions,
certifications and other information as the Company has reasonably requested to confirm that such transfer is being made pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act, such as
the exemption provided by Rule 144. 
  

			
	[Name of Transferor]
		
	 By:
	 	 
	 Name: 
	 	 
	 Title:
	 	 

  
 Dated:
______________________________ 
  

 C-1 

  
 EXHIBIT D 

 
 RESTRICTED CLASS A COMMON STOCK LEGEND 
  
 THE SECURITY EVIDENCED BY THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT OF 1933”), OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER: 
  
 (1) REPRESENTS THAT IT IS A “QUALIFIED INSTITUTIONAL
BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT OF 1933; 
  
 (2) AGREES THAT IT WILL NOT, PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”) THAT IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE COMPANY OR ANY
AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY), RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY EXCEPT (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) TO A QUALIFIED INSTITUTIONAL
BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT OF 1933, (C) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT OF 1933 (IF AVAILABLE), OR (D) PURSUANT TO A REGISTRATION STATEMENT THAT HAS
BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT OF 1933 AND WHICH CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER; AND 
  
 (3) AGREES THAT IT WILL, PRIOR TO ANY TRANSFER OF THIS SECURITY WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS SECURITY, FURNISH TO
THE ISSUER AND TRANSFER AGENT SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS MAY BE REQUIRED TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT. IN ANY CASE, THE HOLDER HEREOF WILL NOT, DIRECTLY OR INDIRECTLY, ENGAGE IN ANY HEDGING TRANSACTION WITH REGARD TO THIS SECURITY, EXCEPT AS PERMITTED BY THE SECURITIES ACT OF 1933. 
  

 D-1Purchase Agreement

 Exhibit 10.1 
  
 BLOCKBUSTER INC. 
  
 150,000 Shares 
  
 7 1/2% Series A Cumulative Convertible Perpetual Preferred
Stock 
  
 Purchase Agreement 
  
 New York, New York 
 November 8, 2005 
  
 [·] 
 [·] 
 As Representatives of the Initial Purchasers 
 c/o [·] 
 [·] 
 [·] 
  
 Ladies and Gentlemen: 
  
 Blockbuster Inc., a Delaware corporation (the “Company”), proposes to issue and sell to the several parties named in Schedule I hereto (the “Initial Purchasers”), for whom you (the
“Representatives”) are acting as representatives, 150,000 shares of 7 1/2% Series A Cumulative
Convertible Perpetual Preferred Stock (the “Firm Securities”). The Company also proposes to grant to the Initial Purchasers an option to purchase up to 22,500 shares to cover over-allotments, if any (the “Option
Securities” and, together with the Firm Securities, the “Securities”). To the extent there are no additional parties listed on Schedule I other than you, the term Representatives as used herein shall mean you as the Initial
Purchasers, and the terms Representatives and Initial Purchasers shall mean either the singular or plural as the context requires. The use of the neuter in this Agreement shall include the feminine and masculine wherever appropriate. Certain terms
used herein are defined in Section 19 hereof. 
  
 In
connection with the sale of the Securities, the Company has prepared a Preliminary Offering Memorandum, dated November 8, 2005 (the “Preliminary Memorandum”), and will prepare an offering memorandum, dated November 8, 2005
(as amended or supplemented at the Execution Time, including any and all exhibits thereto and any information incorporated by reference therein, the “Final Memorandum” and, with the Preliminary Memorandum, each a
“Memorandum”). The Final Memorandum sets forth certain information concerning the Company, the Securities and the Common Stock issuable upon conversion thereof. The Company hereby confirms that it has authorized the use of each
Memorandum, and any amendment or supplement thereto, in connection with the offer and sale of the Securities by the Initial Purchasers as described herein. Unless stated to the contrary, any references herein to the terms “amend”,
“amendment” or “supplement” with respect to the Final Memorandum shall be 

 
deemed to refer to and include any information filed under the Exchange Act subsequent to the Execution Time that is incorporated by reference therein.

  
 The Securities are convertible into shares of Common Stock at
the conversion price, as set forth in the Final Memorandum, and in the certificate of designations for the Securities (the “Certificate of Designations”) to be filed with the Secretary of State of the State of Delaware. The sale of
the Securities to the Initial Purchasers will be made without registration of the Securities or the shares of Common Stock issuable upon the conversion of the Securities. 
  
 In connection with the sale of the Securities, the Company also proposes to enter into a Registration Rights Agreement, to
be dated as of the Closing Date (as defined in Section 3), between the Company and the Initial Purchasers (the “Registration Rights Agreement”). 
  
 1. Representations and Warranties. The Company represents and warrants to each Initial Purchaser as set forth below
in this Section 1. 
  
 (a) Offering
Memorandum. The Preliminary Memorandum, as of its date, did not, and the Final Memorandum, in the form first used by the Initial Purchasers to confirm sales of the Securities and as of the Closing Date, will not, contain any untrue statement of
a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that the Company makes no representation or warranty with
respect to any statements or omissions made in reliance upon and in conformity with information relating to any Initial Purchaser furnished to the Company in writing by such Initial Purchaser through the Representatives expressly for use in the
Preliminary Memorandum or the Final Memorandum. 
  
 (b) Incorporated Documents. The documents incorporated by reference in the Preliminary Memorandum and the Final Memorandum, when filed with the Commission, conformed or will conform, as the case maybe, in all material respects to the
requirements of the Exchange Act and the rules and regulations of the Commission thereunder, and did not and will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in
order to make the statements therein, in the light of the circumstances under which they were made, not misleading. 
  
 (c) Financial Statements. The financial statements and the related notes thereto included or incorporated by reference in the
Preliminary Memorandum and the Final Memorandum present fairly in all material respects the financial position of the Company and its subsidiaries as of the dates indicated and the results of their operations and the changes in their cash flows for
the periods specified; such financial statements have been prepared in conformity with generally accepted accounting principles applied on a consistent basis throughout the periods covered thereby; and the other financial information included or
incorporated by reference in the Preliminary Memorandum and the Final Memorandum has been derived from the accounting records of the Company and its subsidiaries and presents fairly in all material respects the information shown thereby. 

 

 2 

 (d) No Material Adverse Change. Except as otherwise disclosed in the Preliminary
Memorandum and the Final Memorandum, since the date of the most recent financial statements of the Company included or incorporated by reference in the Preliminary Memorandum and the Final Memorandum, (i) there has not been any material change
in the capital stock or long-term debt of the Company or any of its subsidiaries, or any dividend or distribution of any kind declared, set aside for payment, paid or made by the Company on any class of capital stock, or any material adverse change,
or any development involving a prospective material adverse change, in or affecting the business, financial position or results of operations of the Company and its subsidiaries taken as a whole; (ii) neither the Company nor any of its
subsidiaries has entered into any transaction or agreement that is material to the Company and its subsidiaries taken as a whole or incurred any liability or obligation, direct or contingent, that is material to the Company and its subsidiaries
taken as a whole; and (iii) neither the Company nor any of its subsidiaries has sustained any loss or interference with its business from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor
disturbance or dispute or any action, order or decree of any court or governmental agency, authority or body or any arbitrator that (x) could reasonably be expected to have a material adverse effect on the performance of this Agreement, the
Registration Rights Agreement, or the Company’s obligations under the Securities or (y) could reasonably be expected to have a material adverse effect on the business, financial position or results of operations of the Company and its
subsidiaries, taken as a whole (a “Material Adverse Effect”). 
  
 (e) Organization and Good Standing. The Company and each of its subsidiaries have been duly organized and are validly existing and
in good standing under the laws of their respective jurisdictions of organization, are duly qualified to do business and are in good standing in each jurisdiction in which their respective ownership or lease of property or the conduct of their
respective businesses requires such qualification, and have all requisite corporate, limited liability company or limited partnership, as applicable, power and authority necessary to own or hold their respective properties and to conduct the
businesses in which they are engaged, except where the failure to be so qualified or have such power or authority would not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect. 
  
 (f) Capitalization. The Company’s authorized and
outstanding capitalization is as set forth in the Final Memorandum, and the capital stock of the Company conforms in all material respects to the description thereof contained in the Final Memorandum; the outstanding shares of Common Stock have been
duly and validly authorized and issued and are fully paid and non-assessable; the shares of Common Stock initially issuable upon conversion of the Securities have been duly and validly authorized and, when issued upon conversion and in accordance
with the terms of the Certificate of Designations, will be validly issued, fully paid and non-assessable; the Board of Directors of the Company has duly and validly adopted resolutions reserving such shares of Common Stock for issuance upon
conversion; the holders of the outstanding shares of capital stock of the Company are not entitled to any preemptive or other rights to subscribe for the Securities or the shares of Common Stock issuable upon conversion thereof; and, except as set
forth in the 

  

 3 

 
Final Memorandum, no options, warrants or other rights to purchase, agreements or other obligations to issue, or rights to convert any obligations into or
exchange any securities for, shares of capital stock of or ownership interests in the Company are outstanding. 
  
 (g) Due Authorization. The Company has full right, power and authority to execute and deliver this Agreement and the Registration
Rights Agreement and to perform its respective obligations hereunder and thereunder; and all action required to be taken for the due and proper authorization, execution and delivery of this Agreement and the Registration Rights Agreement and the
consummation of the transactions contemplated thereby has been duly and validly taken. 
  
 (h) Purchase and Registration Rights Agreements. This Agreement has been duly authorized, executed and delivered by the Company and
the Registration Rights Agreement has been duly authorized by the Company and, when duly executed and delivered in accordance with its terms by each of the parties thereto, will constitute a valid and legally binding agreement of the Company
enforceable against the Company in accordance with its terms, except to the extent that enforcement thereof may be limited by (i) the effects of bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other similar laws
relating to or affecting creditors’ rights generally and (ii) general equitable principles (whether considered in a proceeding in equity or at law); and this Agreement and the Registration Rights Agreement conforms in all material respects
to the descriptions thereof contained in the Preliminary Memorandum and the Final Memorandum. 
  
 (i) Securities. The Securities have been duly authorized and, when issued and delivered to and paid for by the Initial Purchasers
in accordance with the terms of this Agreement, will be validly issued, fully paid and non-assessable and free of statutory and contractual preemptive rights and similar rights and will conform in all material respects to the description thereof
contained in each Memorandum; the certificates for the Securities are in due and proper form and the holders of the Securities and the Common Stock into which the Securities are convertible will not be subject to personal liability by reason of
being such holders; the Certificate of Designations has been duly approved and adopted by a resolution of the Board of Directors, which resolution remains in full force and effect, and will be filed with the Secretary of State of the State of
Delaware on or before the Closing Date; and the Certificate of Designations conforms in all material respects to the description thereof contained in each Memorandum. 
  
 (j) No Violation or Default. Neither the Company nor any of its subsidiaries is (i) in violation
of its charter or by-laws or similar organizational documents; (ii) in default, and no event has occurred that, with notice or lapse of time or both, would constitute such a default, in the due performance or observance of any term, covenant or
condition contained in any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which the Company or any of its subsidiaries is a party or by which the Company or any of its subsidiaries is bound or to which any of
the property or assets of the Company or any of its subsidiaries is subject; or (iii) in violation of any law or statute or any judgment, order, rule or regulation of any court or arbitrator or governmental or 

  

 4 

 
regulatory authority, except, in the case of clauses (ii) and (iii) above, for any such default or violation that would not, individually or in the
aggregate, be reasonably expected to have a Material Adverse Effect. 
  
 (k) No Conflicts. The execution, delivery and performance by the Company of this Agreement and the Registration Rights Agreement, the issuance and sale of the Securities or the issuance of the Common Stock upon
conversion thereof, the Company’s compliance with the Certificate of Designations and the consummation of the transactions contemplated by this Agreement and the Registration Rights Agreement will not (i) conflict with or result in a
breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any property or assets of the Company or any of its subsidiaries pursuant to,
any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which the Company or any of its subsidiaries is a party or by which the Company or any of its subsidiaries is bound or to which any of the property or assets
of the Company or any of its subsidiaries is subject, (ii) result in any violation of the provisions of the charter or by-laws or similar organizational documents of the Company or any of its subsidiaries or (iii) result in the violation
of any law or statute or any judgment, order, rule or regulation of any court or arbitrator or governmental or regulatory authority, except, in the case of clauses (i) and (iii) above, for any such conflict, breach or violation that would
not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect. 
  
 (l) No Consents Required. No consent, approval, authorization, order, registration or qualification of or with any court or
arbitrator or governmental or regulatory authority is required for the execution, delivery and performance by the Company of each of this Agreement and the Registration Rights Agreement, the issuance and sale of the Securities or the issuance of the
Common Stock upon conversion thereof, the Company’s compliance with the Certificate of Designations and the consummation of the transactions contemplated by this Agreement and the Registration Rights Agreement, except for such consents,
approvals, authorizations, orders and registrations or qualifications as may be required (i) under applicable state securities laws in connection with the purchase and resale of the Securities by the Initial Purchasers and (ii) with
respect to the Common Stock issuable upon conversion of the Securities and shelf registration under the Securities Act and applicable state securities laws as contemplated by the Registration Rights Agreement. 
  
 (m) Legal Proceedings. Except as described in the
Preliminary Memorandum and the Final Memorandum, there are no legal, governmental or regulatory investigations, actions, suits or proceeding spending to which the Company or any of its subsidiaries is or may be a party or to which any property of
the Company or any of its subsidiaries is or may be the subject that, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect; and no such investigations, actions, suits or proceedings are threatened or, to
the knowledge of the Company, contemplated by any governmental or regulatory authority or threatened by others. 
  

 5 

 (n) Independent Accountant. PricewaterhouseCoopers LLP, which has certified
certain financial statements of the Company and its subsidiaries, is an independent registered public accounting firm with respect to the Company and its subsidiaries within the meaning of Rule 101 of the Code of Professional Conduct of the American
Institute of Certified Public Accountants and its interpretations and rulings thereunder. 
  
 (o) Title to Real and Personal Property. The Company and its subsidiaries have good title to, or valid leasehold interests in, all
items of real and personal property that are material to the business of the Company and its subsidiaries, taken as a whole, it each case free and clear of all liens, encumbrances, claims and defects and imperfections of title except those that are
disclosed in the Final Memorandum or would not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect. 
  
 (p) Title to Intellectual Property. The Company and its subsidiaries own or possess or can acquire on reasonable terms adequate
rights to use all patents, patent applications, trademarks, service marks, trade names, trademark registrations, service mark registrations, copyrights, licenses and know-how (including trade secrets and other unpatented and/or unpatentable
proprietary or confidential information, systems or procedures) necessary for the conduct of their respective businesses, except where the failure to own or possess the same would not, individually or in the aggregate, be reasonably expected to have
a Material Adverse Effect; and the conduct of their respective businesses will not conflict in any material respect with any such rights of others, and the Company and its subsidiaries have not received any notice of any claim of infringement of or
conflict with any such rights of others, that, in any such case, if determined adversely to the Company or any of its subsidiaries would, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect. 
  
 (q) Investment Company Act. Neither the Company nor
any of its subsidiaries is, and after giving effect to the offering and sale of the Securities and the application of the proceeds thereof as described in the Final Memorandum none of them will be, an “investment company” or an entity
“controlled” by an “investment company” within the meaning of the Investment Company Act of 1940, as amended, and the rules and regulations of the Commission thereunder (collectively, “Investment Company Act”).

  
 (r) Taxes. The Company and its
subsidiaries have paid all federal, state, local and foreign taxes and filed all tax returns required to be paid or filed through the date hereof except where the failure to pay or file would not, individually or in the aggregate, be reasonably
expected to have a Material Adverse Effect; and except as otherwise disclosed in the Preliminary Memorandum and the Final Memorandum, there is no tax deficiency that has been, or could reasonably be expected to be, asserted against the Company or
any of its subsidiaries or any of their respective properties or assets, except for any deficiency that would not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect. 
  
 (s) Licenses and Permits. The Company and its
subsidiaries possess all licenses, certificates, permits and other authorizations issued by, and have made all declarations 

  

 6 

 
and filings with, the appropriate federal, state, local or foreign governmental or regulatory authorities that are necessary for the ownership or lease of
their respective properties or the conduct of their respective businesses as described in the Preliminary Memorandum and the Final Memorandum, except where the failure to possess or make the same would not, individually or in the aggregate, be
reasonably expected to have a Material Adverse Effect; and except as described in the Preliminary Memorandum and the Final Memorandum, neither the Company nor any of its subsidiaries has received notice of any revocation or modification of any such
license, certificate, permit or authorization that if determined adversely to the Company or any of its subsidiaries, would, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect or has any reason to believe that
any such license, certificate, permit or authorization will not be renewed in the ordinary course other than such failures to renew that would not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect.

  
 (t) No Labor Disputes. No labor
disturbance by or dispute with employees of the Company or any of its subsidiaries exists or, to the best knowledge of the Company, is contemplated or threatened that, in any such case, would, individually or in the aggregate, be reasonably expected
to have a Material Adverse Effect. 
  
 (u)
Compliance With Environmental Laws. The Company and its subsidiaries (i) are in compliance with any and all applicable federal, state, local and foreign laws, rules, regulations, decisions and orders relating to the protection of human
health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants (collectively, “Environmental Laws”); (ii) have received and are in compliance with all permits, licenses or other
approvals required of them under applicable Environmental Laws to conduct their respective businesses; and (iii) have not received notice of any actual or potential liability for the investigation or remediation of any disposal or release of
hazardous or toxic substances or wastes, pollutants or contaminants, except in any such case for any such failure to comply with, or failure to receive required permits, licenses or approvals, or liability, as would not, individually or in the
aggregate, be reasonably expected to have a Material Adverse Effect. 
  
 (v) Compliance With ERISA. Each employee benefit plan, within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), that is maintained,
administered or contributed to by the Company or any of its affiliates for employees or former employees of the Company and its affiliates has been maintained in compliance with its terms and the requirements of any applicable statutes, orders,
rules and regulations, including but not limited to ERISA and the Internal Revenue Code of 1986, as amended (the “Code”), except where the failure to so maintain any such plan would not, individually or in the aggregate, be
reasonably expected to have a Material Adverse Effect; no prohibited transaction, within the meaning of Section 406 of ERISA or Section 4975 of the Code, has occurred with respect to any such plan excluding transactions effected pursuant
to a statutory or administrative exemption and except where such transaction or transactions would not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect; and for each such plan, if any, that is subject to
the funding rules of Section 412 of the Code or Section 302 of ERISA, 

  

 7 

 
no “accumulated funding deficiency” as defined in Section 412 of the Code has been incurred, whether or not waived, and the fair market value
of the assets of each such plan (excluding for these purposes accrued but unpaid contributions) exceeds the present value of all benefits accrued under such plan determined using reasonable actuarial assumptions. 
  
 (w) Accounting Controls. The Company and its
subsidiaries maintain systems of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations; (ii) transactions are
recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s
general or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. 
  
 (x) Insurance. The Company and its subsidiaries have
insurance covering their respective properties, operations, personnel and businesses, including business interruption insurance, which insurance is in amounts and insures against such losses and risks as are adequate to protect the Company and its
subsidiaries and their respective businesses. 
  
 (y) Anti-Bribery. Neither the Company nor any of its subsidiaries nor, to the best knowledge of the Company, any director, officer, agent, employee or other person associated with or acting on behalf of the Company or any of its
subsidiaries has (i) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to any political activity, (ii) made any direct or indirect unlawful payment to any foreign or domestic
government official or employee from corporate funds, (iii) violated or is in violation of any provision of the Foreign Corrupt Practices Act of 1977, as amended, or (iv) made any bribe, rebate, payoff, influence payment, kickback or other
unlawful payment. 
  
 (z) Foreign Assets
Control. None of the Company, any of its subsidiaries or, to the knowledge of the Company, any director, officer, agent, employee or affiliate (as defined in Rule 501(b) under the Securities Act) of the Company or any of its subsidiaries is
currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”). None of the Company, or such of its subsidiaries as are U.S. persons, engage in any business with
or in any country, person, or entity subject to sanctions under any of the Trading With the Enemy Act, the International Emergency Economic Powers Act, the United Nations Participation Act, and the Syria Accountability and Lebanese Sovereignty Act,
all as amended, or any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating thereto (collectively, the “Sanctions
Laws and Regulations”), or, any person or entity in those countries or with those persons, or perform contracts in support of projects in or for the benefit of those countries or those persons. 
  

 8 

 The Company will not use, and will cause each subsidiary not to use, the proceeds from
the offering, directly or indirectly, for any purpose or activity that would cause any person associated with the offering to violate any of the Sanctions Laws and Regulations, or in connection with business, operations or contracts within the
countries, or with the governments or with any person or entity, in each case that are prohibited by the Sanctions Laws and Regulations, or in connection with contracts in support of projects in or for the benefit of such countries, governments,
persons or entities. 
  
 (aa) Anti-Money
Laundering. Neither the Company nor any of its subsidiaries has engaged in any financial transactions in order to conceal the identity, source or destination of the proceeds from any category of offenses designated by the Financial Action Task
Force on Money Laundering’s “The Forty Recommendations” of June 20, 2003 in violation of the laws or regulations of the United States or any other jurisdiction in which the Company does business. 
  
 (bb) Solvency. On and immediately after the Closing
Date, the Company (after giving effect to the issuance of the Securities) will be Solvent. As used in this paragraph, the term “Solvent” means, with respect to a particular date, that on such date (i) the present fair market value (or
present fair saleable value) of the assets of the Company is not less than the total amount required to pay the liabilities of the Company on its total existing debts and liabilities (including contingent liabilities) as they become absolute and
matured; (ii) the Company is able to realize upon its assets and pay its debts and other liabilities, contingent obligations and commitments as they mature and become due in the normal course of business; (iii) assuming consummation of the
issuance of the Securities as contemplated by this Agreement and the Final Memorandum, the Company is not incurring debts or liabilities beyond its ability to pay as such debts and liabilities mature; (iv) the Company is not engaged in any
business or transaction, and does not propose to engage in any business or transaction, for which its property would constitute unreasonably small capital after giving due consideration to the prevailing practice in the industry in which the Company
is engaged; and (v) the Company is not a defendant in any civil action that would result in a judgment that the Company is or would become unable to satisfy. 
  
 (cc) No Broker’s Fees. Neither the Company nor any of its subsidiaries is a party to any
contract, agreement or understanding with any person (other than this Agreement) that would give rise to a valid claim against any of them or any Initial Purchaser for a brokerage commission, finder’s fee or like payment in connection with the
offering and sale of the Securities. 
  
 (dd)
No Integration. Neither the Company nor any of its Affiliates has, directly or through any agent, sold, offered for sale, solicited offers to buy or otherwise negotiated in respect of, any security (as defined in the Securities Act), that is
or will be integrated with the sale of the Securities in a manner that would require registration of the Securities or the Common Stock upon conversion thereof under the Securities Act. 
  

 9 

 (ee) No General Solicitation. None of the Company or any of its Affiliates or any
other person acting on its or their behalf (other than the Initial Purchasers, as to which no representation is made) has solicited offers for, or offered or sold, the Securities or the Common Stock upon conversion thereof by means of any form of
general solicitation or general advertising within the meaning of Rule 502(c) of Regulation D or in any manner involving a public offering within the meaning of Section 4(2) of the Securities Act. 
  
 (ff) Securities Law Exemptions. Assuming the accuracy
of the representations and warranties of the Initial Purchasers contained in Section 4 and their compliance with their agreements set forth herein, it is not necessary in connection with the offer, sale and delivery of the Securities to the
Initial Purchasers in the manner contemplated by this Agreement to register the Securities or the Common Stock issuable upon the conversion thereof under the Act. 
  
 (gg) No Stabilization. The Company has not taken, directly or indirectly, any action designed to or
that could reasonably be expected to cause or result in any stabilization or manipulation of the price of the Securities. 
  
 (hh) Forward-Looking Statements. No forward-looking statement (within the meaning of Section 27A of the Securities Act and
Section 21 E of the Exchange Act) contained in the Preliminary Memorandum and the Final Memorandum has been made or reaffirmed without a reasonable basis or has been disclosed other than in good faith. 
  
 (ii) Statistical and Market Data. The Company
believes that the disclosure of the statistical and market-related data included or incorporated by reference in the Preliminary Memorandum and the Final Memorandum is accurate in all material respects. 
  
 (jj) Rule 144A. The Securities satisfy the
requirements set forth in Rule 144A(d)(3) under the Act. 
  
 (kk) Reporting Requirements. Except as disclosed in the Memorandum, the Company is subject to and in full compliance with the reporting requirements of Section 13 or Section 15(d) of the Exchange Act.

  
 (ll) Registration Statement. No holder
of securities of the Company (other than the Registrable Securities (as defined in the Registration Rights Agreement)) will be entitled to have such securities registered under the registration statement required to be filed by the Company pursuant
to the Registration Rights Agreement. 
  
 Any certificate signed
by any officer of the Company and delivered to the Representatives or counsel for the Initial Purchasers in connection with the offering of the Securities shall be deemed a representation and warranty by the Company, as to matters covered thereby,
to each Initial Purchaser. 
  

 10 

 2. Purchase and Sale. 
  
 (a) Subject to the terms and conditions and in reliance upon the representations and warranties herein set
forth, the Company agrees to sell to each Initial Purchaser, and each Initial Purchaser agrees, severally and not jointly, to purchase from the Company, at a purchase price of $967.50 per share, the number of Firm Securities set forth opposite such
Initial Purchaser’s name in Schedule I hereto. 
  
 (b) Subject to the terms and conditions and in reliance upon the representations and warranties herein set forth, the Company hereby grants an option to the several Initial Purchasers to purchase, severally and not jointly, the Option
Securities at the same purchase price as the Initial Purchasers paid for the Firm Securities, from the date hereof to the settlement date for the Option Securities (the “Settlement Date”). The option may be exercised only to cover
over-allotments in the sale of the Firm Securities by the Initial Purchasers. The option may be exercised in whole or in part at any time (but not more than once) not less than three Business Days prior to the 30th day after the date of the Closing Date upon written or telegraphic notice by the Representatives to the Company setting forth the number of Option
Securities as to which the Initial Purchasers are exercising the option and the Settlement Date. Delivery of the Option Securities, and payment therefor, shall be made as provided in Section 3 hereof. The Settlement Date for the Option
Securities, if any, shall not be more than 30 days after the Closing Date. The number of Option Securities to be purchased by each Initial Purchaser shall be the same percentage as such Initial Purchaser is purchasing of the Firm Securities, subject
to such adjustments as the Representatives shall deem advisable. 
  
 (c) 50,000 of the Firm Securities (the “Directed Shares”) will initially be reserved by the several Initial Purchasers for offer and sale to certain existing stockholders of the Company specified by the
Company (the “Directed Share Participants”) and any allocation of such Directed Shares among such persons will be made in accordance with timely directions received by the Representatives from the Company (the “Directed Share
Program”). To the extent that any Directed Shares are not affirmatively reconfirmed for purchase by any Directed Share Participant on or immediately after the date of this Agreement, such Directed Shares may be offered to other investors as
part of the offering contemplated hereby. 
  
 3. Delivery and
Payment. Delivery of and payment for the Firm Securities and the Option Securities (if the option provided for in Section 2(b) hereof shall have been exercised on or before the third Business Day prior to the Closing Date) shall be made at
10:00 A.M., New York City time, on November 15, 2005, or at such time on such later date (not more than three Business Days after the foregoing date) as the Representatives shall designate, which date and time may be postponed by agreement
between the Representatives and the Company or as provided in Section 9 hereof (such date and time of delivery and payment for the Securities being herein called the “Closing Date”). Delivery of the Securities shall be made to
the Representatives for the respective accounts of the several Initial Purchasers against payment by the several Initial Purchasers through the Representatives of the purchase price thereof, to or upon the order of the Company by wire transfer
payable in same-day funds to the account specified by the Company. Delivery of the Securities shall be made through the facilities of The Depository Trust Company unless the Representatives shall otherwise instruct. 
  

 11 

 If the option provided for in Section 2(b) hereof is exercised after the third Business Day prior to
the Closing Date, the Company will deliver the Option Securities (at the expense of the Company) to the Representatives on the date specified by the Representatives (which shall be three Business Days after exercise of said option), for the
respective accounts of the several Initial Purchasers, against payment by the several Initial Purchasers through the Representatives of the purchase price thereof to or upon the order of the Company by wire transfer payable in same-day funds to the
account specified by the Company. If settlement for the Option Securities occurs after the Closing Date, the Company will deliver to the Representatives on the Settlement Date, and the obligation of the Initial Purchasers to purchase the Option
Securities shall be conditioned upon receipt of, supplemental opinions, certificates and letters confirming as of such date the opinions, certificates and letters delivered on the Closing Date pursuant to Section 6 hereof. 
  
 4. Offering by Initial Purchasers. Each Initial Purchaser, severally
and not jointly, represents and warrants to and agrees with the Company that: 
  
 (a) it is a qualified institutional buyer (a “QIB”) within the meaning of Rule 144A under the Securities Act (“Rule 144A”) and an accredited investor within the meaning of
Rule 501(a) of Regulation D under the Securities Act (“Regulation D”). 
  
 (b) neither it nor any of its Affiliates nor any person acting on behalf of it or any such Affiliate has solicited offers for or offered
or sold, and will not offer or sell, any Securities except to those persons it reasonably believes to be qualified institutional buyers (as defined in Rule 144A under the Act) and that, in connection with each such sale, it has taken or will take
reasonable steps to ensure that the purchaser of such Securities is aware that such sale is being made in reliance on Rule 144A. 
  
 (c) neither it nor any of its Affiliates nor any person acting on its or their behalf has made or will make offers or sales of the
Securities in the United States by means of any form of general solicitation or general advertising (within the meaning of Regulation D) in the United States or in any manner involving a public offering within the meaning of Section 4(2) of the
Act. 
  
 (d) With respect to resales made in
reliance on Rule 144A of any of the Securities, it shall deliver either with the confirmation of such resale or otherwise prior to settlement of such resale a notice to the effect that the resale of such Securities has been made in reliance upon the
exemption from the registration requirements of the Securities Act provided by Rule 144A. 
  
 (e) Each Initial Purchaser acknowledges and agrees that the Company and, for purposes of the opinions to be delivered to the Initial
Purchasers pursuant to Sections 6(a) and 6(b), counsel for the Company and counsel for the Initial Purchasers, respectively, may rely upon the accuracy of the representations and warranties of the Initial Purchasers, and compliance by the Initial
Purchasers with their agreements, contained in Sections 4(a) through 4(d) inclusive, and each Initial Purchaser hereby consents to such reliance. 
  

 12 

 5. Agreements. The Company agrees with each Initial Purchaser that: 
  
 (a) The Company will furnish to each Initial Purchaser,
without charge, during the period referred to in paragraph (c) below, as many copies of the Final Memorandum and any amendments and supplements thereto as it may reasonably request. 
  
 (b) The Company will file promptly all reports and any definitive proxy or information statement required to
be filed by the Company with the Commission in order to comply with the Exchange Act during the period referred to in paragraph (d) below. 
  
 (c) The Company will not amend or supplement the Final Memorandum, other than by filing documents under the Exchange Act that are
incorporated by reference therein, without the prior written consent of the Representatives which consent shall not be unreasonably withheld or delayed; provided, however, that, prior to the completion of the distribution of the
Securities by the Initial Purchasers (as determined by the Representatives and communicated to the Company), the Company will not file any document under the Exchange Act that is incorporated by reference in the Final Memorandum unless the Company
has furnished the Representatives with a copy of such document for their review and the Representatives have not reasonably objected to the filing of such document. 
  
 (d) If at any time prior to the completion of the distribution of the Securities by the Initial Purchasers
(as determined by the Representatives and communicated to the Company), any event occurs as a result of which the Final Memorandum, as then amended or supplemented, would include any untrue statement of a material fact or omit to state any material
fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, or if it should be necessary to amend or supplement the Final Memorandum to comply with applicable law, the Company promptly
(i) will notify the Representatives of any such event; and (ii) subject to the requirements of paragraph (c) of this Section 5, will prepare an amendment or supplement that will correct such statement or omission or effect such
compliance. 
  
 (e) The Company will arrange, if
necessary, for the qualification of the Securities for sale by the Initial Purchasers under the laws of such jurisdictions as the Initial Purchasers may reasonably request and will maintain such qualifications in effect so long as required for the
sale of the Securities; provided that in no event shall the Company be obligated to (i) qualify to do business in any jurisdiction where it is not now so qualified, (ii) take any action that would subject it to service of process in
suits in any jurisdiction where it is not now so subject or (iii) subject itself to taxation in any jurisdiction if it is not otherwise so subject. The Company will promptly advise the Representatives of the receipt by the Company of any
notification with respect to the suspension of the qualification of the Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose. 
  

 13 

 (f) The Company will not, and will not permit any of its Affiliates to, resell any
Securities or Common Stock issued upon conversion thereof that have been or may be acquired by any of them except pursuant to an offering registered under the Act. 
  
 (g) Except as contemplated by the Registration Rights Agreement, neither the Company, nor any of its
Affiliates, nor any person acting on its or their behalf (except the Initial Purchasers for which no representation is given) will, directly or indirectly, make offers or sales of any security, or solicit offers to buy any security, under
circumstances that would require the registration of the Securities or the Common Stock issuable upon conversion thereof under the Act. 
  
 (h) Neither the Company, nor any of its Affiliates, nor any person acting on its or their behalf will engage in any form of general
solicitation or general advertising (within the meaning of Regulation D) in connection with any offer or sale of the Securities in the United States. 
  
 (i) So long as any of the Securities or Common Stock issued or issuable upon conversion of the Securities are “restricted
securities” within the meaning of Rule 144(a)(3) under the Act, the Company will, during any period in which it is not subject to and in compliance with Section 13 or 15(d) of the Exchange Act, provide to each holder of such restricted
securities and to each prospective purchaser (as designated by such holder) of such restricted securities, upon the request of such holder or prospective purchaser, any information required to be provided by Rule 144A(d)(4) under the Act. This
covenant is intended to be for the benefit of each holder, and the prospective purchasers designated by such holder, from time to time of such restricted securities. 
  
 (j) Any information provided by the Company to publishers of publicly available databases about the terms of
the Securities shall include a statement that the Securities have not been registered under the Act and are subject to restrictions under Rule 144A under the Act. 
  
 (k) The Company will reserve and keep available at all times, free of pre-emptive rights, the full number of
shares of Common Stock issuable upon conversion of the Securities. 
  
 (l) The Company will assist the Representatives in arranging for the Securities to be eligible for clearance and settlement through The Depository Trust Company. 
  
 (m) The Company will not for a period of 90 days following
the Execution Time, without the prior written consent of each of the Representatives, offer, sell, contract to sell, pledge or otherwise dispose of (or enter into any transaction which is designed to, or might reasonably be expected to, result in
the disposition (whether by actual disposition or effective economic disposition due to cash settlement or otherwise) by the Company), directly or indirectly, or file (or participate in the filing of) a registration statement with the Commission in
respect of, or establish or increase a put equivalent position or liquidate or decrease a call equivalent position within the meaning of Section 16 of the 

  

 14 

 
Exchange Act and the rules and regulations of the Commission promulgated thereunder with respect to, any shares of capital stock of the Company or any
securities convertible or exercisable or exchangeable for such capital stock, or publicly announce an intention to effect any such transaction; provided, however, that (i) the Company may issue and sell Common Stock or issue
options for the purchase of its Common Stock, and file related registration statements pursuant to any employee stock option plan, stock ownership plan, dividend reinvestment plan or outside director stock incentive plan, of the Company in effect at
the Execution Time; (ii) the Company may issue Common Stock issuable upon the conversion of securities or the exercise of warrants or options outstanding at the Execution Time, or hereafter granted under the Company’s stock incentive plans
that exist as of the Execution Time; (iii) the Company may issue up to 5,720,000 shares of Common Stock as consideration for purchases or acquisitions of other businesses or entities, provided, however, that any such Common Stock issued as
consideration for any such purchases or acquisitions entered into during the 90-day period following the Execution Time; (iv) the Company may issue up to 5,720,000 shares of Common Stock as part of any deferred payment to be made under and in
accordance with any acquisition-related agreement or any obligation to issue Common Stock in connection with contractual put or call obligations either existing at the Execution Time or entered into during the 90-day period following the Execution
Time, provided, however, that Common Stock issued as obligations for any such deferred payment or obligations entered into during such 90-day period shall be aggregated with any shares issued under clause (iii) hereof; (v) the Company may
pay dividends on its outstanding securities in shares of Common Stock; and (vi) the Company may issue the Securities and file registration statements in respect of the Securities and shares of Common Stock issuable upon conversion of the
Securities or delivered as dividends or make-whole premiums under the terms of the Securities, and may issue Common Stock upon conversion of such securities of the Company. 
  
 (n) The Company will not take, directly or indirectly, any action designed to or which has constituted or
which could reasonably be expected to cause or result in, stabilization or manipulation of the price of the Securities. 
  
 (o) Between the date hereof and the Closing Date, the Company will not do or authorize any act or thing that would result in an adjustment
of the conversion price of the Securities. 
  
 (p) The Company agrees to pay the costs and expenses relating to the following matters: (i) the preparation, printing or reproduction of each Memorandum and each amendment or supplement thereto; (ii) the printing (or reproduction)
and delivery (including postage, air freight charges and charges for counting and packaging) of such copies of each Memorandum, and all amendments or supplements thereto, as may, in each case, be reasonably requested for use in connection with the
offering and sale of the Securities; (iii) the preparation of the Certificate of Designations and the issuance of the Securities; (iv) the preparation, printing, authentication, issuance and delivery of certificates for the Securities,
including any stamp or transfer taxes in connection with the original issuance and sale of the Securities to the Initial Purchasers; (v) the printing (or 

  

 15 

 
reproduction) and delivery of this Agreement and the Registration Rights Agreement, any blue sky memorandum, the closing documents and all other agreements
or documents printed (or reproduced) and delivered in connection with the offering of the Securities; (vi) any registration or qualification of the Securities for offer and sale under the securities or blue sky laws of the several states and
any other jurisdictions specified pursuant to Section 5(e) (including filing fees and the reasonable fees and expenses of counsel for the Initial Purchasers relating to such registration and qualification); (vii) the transportation and
other expenses incurred by the Company’s representatives in connection with presentations to prospective purchasers of the Securities; (viii) the fees and expenses of the Company’s accountants and the fees and expenses of counsel
(including local and special counsel) for the Company; (ix) the fees and disbursements of any transfer agent or registrar for the Securities; and (x) all other costs and expenses incident to the performance by the Company of its
obligations hereunder. 
  
 (q) The Company will
apply the net proceeds from the sale of the Securities in the manner described in the Final Memorandum. 
  
 (r) Prior to the completion of the distribution of the Securities, the Company will promptly notify the Representatives of any material
development relating to any investigation of the Company conducted by the Commission, including the discovery of any new or additional information that in the opinion of the Company may reasonably be expected to affect the outcome of such
investigation. 
  
 6. Conditions to the Obligations of the
Initial Purchasers. The obligations of the Initial Purchasers to purchase the Firm Securities and the Option Securities, as the case may be, shall be subject to the accuracy of the representations and warranties on the part of the Company
contained herein at the Execution Time, the Closing Date and any Settlement Date pursuant to Section 3 hereof, to the accuracy of the statements of the Company made in any certificates pursuant to the provisions hereof, to the performance by
the Company of its obligations hereunder and to the following additional conditions: 
  
 (a) The Company shall have requested and caused Shearman & Sterling LLP, counsel for the Company, to furnish to the
Representatives its opinion and letter, dated the Closing Date and addressed to the Representatives, to the effect set forth in Exhibits A and B. 
  
 (b) The Representatives shall have received from Davis Polk & Wardwell, counsel for the Initial Purchasers, such opinion or
opinions, dated the Closing Date and addressed to the Representatives, with respect to the issuance and sale of the Securities, the Final Memorandum (as amended or supplemented at the Closing Date) and other related matters as the Representatives
may reasonably require, and the Company shall have furnished to such counsel such documents as they reasonably request for the purpose of enabling it to pass upon such matters. 
  
 (c) The Company shall have furnished to the Representatives a certificate of the Company, signed by the
chief financial officer of the Company, dated the Closing Date, 

  

 16 

 
to the effect that such officer has carefully examined the Final Memorandum, any amendment or supplement to the Final Memorandum and, to the knowledge of
such officer, that: 
  
 (i) the representations
and warranties of the Company in this Agreement are true and correct in all material respects on and as of the Closing Date with the same effect as if made on the Closing Date, and the Company has complied with all the agreements and satisfied all
the conditions on its part to be performed or satisfied hereunder at or prior to the Closing Date; and 
  
 (ii) since the date of the most recent financial statements included in the Final Memorandum (exclusive of any amendment or supplement
thereto), there has been no material adverse change in the business, financial condition or results of operations of the Company and its subsidiaries, taken as a whole, whether or not arising from transactions in the ordinary course of business,
except as set forth in or contemplated by the Final Memorandum (exclusive of any amendment or supplement thereto). 
  
 (d) The Initial Purchasers shall have received on the date hereof and on the Closing Date a letter, dated the date hereof and the Closing
Date, in form and substance reasonably satisfactory to the Initial Purchasers, from PricewaterhouseCoopers LLC, independent public accountants, containing statements and information of the type ordinarily included in accountants’ “comfort
letters” to underwriters with respect to the financial statements and certain financial information contained in or incorporated by reference into the Final Memorandum, and such letter shall use a “cut-off date” not earlier than the
date hereof. 
  
 (e) Subsequent to the Execution
Time or, if earlier, the dates as of which information is given in the Final Memorandum (exclusive of any amendment or supplement thereto), there shall not have been (i) any material change in the capital stock (excluding the Securities), or
long-term debt of the Company or any of its subsidiaries with respect to the period subsequent to September 30, 2005 other than as set forth in the letter dated the date hereof referred to in Section 6(e) hereof; or (ii) any change in
or affecting the business, financial conditions or results of operations of the Company and its subsidiaries, taken as a whole except as set forth in or contemplated in the Final Memorandum (exclusive of any amendment or supplement thereto) the
effect of which, in any case referred to in clause (i) or (ii) above, is, in the absolute judgment of the Representatives, so material and adverse as to make it impractical or inadvisable to market the Securities as contemplated by the
Final Memorandum (exclusive of any amendment or supplement thereto). 
  
 (f) Subsequent to the Execution Time, (i) there shall not have been any decrease in the rating of any of the Company’s debt securities by any “nationally recognized statistical rating organization”
(as defined for purposes of Rule 436(g) under the Act) or (ii) no such organization shall have publicly announced that it has under surveillance or review, or has changed its outlook with respect to, its rating of the Securities or of any

  

 17 

 
other debt securities or preferred stock issued or guaranteed by the Company (other than an announcement with positive implications of a possible upgrading).

  
 (g) The Securities shall have been designated
as PORTAL-eligible securities in accordance with the rules and regulations of the NASD, and the Securities shall be eligible for clearance and settlement through The Depositary Trust Company. 
  
 (h) The Initial Purchasers shall have received a counterpart
of the Registration Rights Agreement that shall have been executed and delivered by a duly authorized officer of the Company. 
  
 (i) On or prior to the Closing Date, the Company shall have caused the Certificate of Designations to be filed with the Commission and the
Secretary of State of the State of Delaware in a timely manner. 
  
 (j) On or prior to the Closing Date, the Company shall have furnished to the Representatives such further information, certificates and documents as the Representatives may reasonably request. 
  
 (k) At the Execution Time, the Company shall have furnished
to the Representatives a letter substantially in the form of Exhibit C hereto from each of the directors and executive officers of the Company identified in Exhibit D hereto addressed to the Representatives. 
  
 (l) At the Execution Time, the Company shall have furnished
to the Representatives a letter substantially in the form of Exhibit E hereto from each of the directors and executive officers of the Company identified in Exhibit F hereto addressed to the Representatives. 
  
 If any of the conditions specified in this Section 6 shall not have been
fulfilled in all material respects when and as provided in this Agreement, or if any of the opinions and certificates mentioned above or elsewhere in this Agreement shall not be in all material respects reasonably satisfactory in form and substance
to the Representatives and counsel for the Initial Purchasers, this Agreement and all obligations of the Initial Purchasers hereunder may be cancelled at, or at any time prior to, the Closing Date by the Representatives. Notice of such cancellation
shall be given to the Company in writing or by telephone or facsimile confirmed in writing. 
  
 The documents required to be delivered by this Section 6 will be delivered at the office of counsel for the Initial Purchasers, Davis Polk & Wardwell, 450 Lexington Avenue, New York, New York 10017,
prior to 9 A.M. on the Closing Date and any Settlement Date. 
  
 7. Reimbursement of Expenses. If the sale of the Securities provided for herein is not consummated because any condition to the obligations of the Initial Purchasers set forth in Section 6 hereof is not satisfied, because of any
termination pursuant to Section 10 (i) hereof or because of any refusal, inability or failure on the part of the Company to perform any agreement herein or comply with any provision hereof other than by reason of a default by any of the
Initial 

  

 18 

 
Purchasers, the Company will promptly reimburse the Initial Purchasers severally through [·] for all reasonable out-of-pocket expenses (including fees and disbursements of counsel) that shall have been incurred by them in connection with the proposed purchase and sale of
the Securities. 
  
 8. Indemnification and Contribution.

  
 (a) The Company agrees to indemnify and hold
harmless each Initial Purchaser, the directors, officers, employees and Affiliates of each Initial Purchaser and each person who controls any Initial Purchaser within the meaning of either the Act or the Exchange Act against any and all losses,
claims, damages or liabilities, joint or several, to which they or any of them may become subject under the Act, the Exchange Act or other federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in the Preliminary Memorandum, the Final Memorandum (or in any supplement or
amendment thereto), or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they
were made, not misleading, and agrees to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably incurred by it in connection with investigating or defending any such loss, claim, damage, liability or action;
provided, however, that the Company will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon any such untrue statement or alleged untrue statement or omission or
alleged omission made in the Preliminary Memorandum or the Final Memorandum, or in any amendment thereof or supplement thereto, in reliance upon and in conformity with written information furnished to the Company by or on behalf of any Initial
Purchaser through the Representatives specifically for inclusion therein; provided further, that with respect to any untrue statement or omission of material fact made in any Preliminary Memorandum, the indemnity agreement contained in this
Section 8(a) shall not inure to the benefit of any Initial Purchaser from whom the person asserting any such loss, claim, damage or liability purchased the securities concerned, to the extent that any such loss, claim, damage or liability of
such Initial Purchaser occurs under the circumstance that (y) the untrue statement or omission of a material fact contained in the Preliminary Memorandum was corrected in the Final Memorandum and (z) there was not sent or given to such
person, at or prior to the written confirmation of the sale of such securities to such person, a copy of the Final Memorandum. This indemnity agreement will be in addition to any liability that the Company may otherwise have. 
  
 (b) The Company agrees to indemnify and hold harmless each
Initial Purchaser, the directors, officers, employees and Affiliates of each Initial Purchaser and each person who controls any Initial Purchaser within the meaning of either the Act or the Exchange Act against any and all losses, claims, damages or
liabilities, joint or several, to which they or any of them may become subject under the Act, the Exchange Act or other federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities
(or actions in respect thereof) related to (directly or 

  

 19 

 
indirectly), arising out of, or in connection with the Company’s determination as to which persons are entitled to participate in the Directed Share
Program and the number of shares allocated to any of such Persons (including the determination of any such allocation), except that this shall not apply to the extent that such loss, claim, damage or liability is finally judicially determined to
have resulted primarily from the gross negligence or willful misconduct of the Initial Purchasers. 
  
 (c) Each Initial Purchaser severally, and not jointly, agrees to indemnify and hold harmless the Company, each of its directors, each of
its officers, and each person, if any, who controls the Company within the meaning of either the Act or the Exchange Act, to the same extent as the foregoing indemnity from the Company to each Initial Purchaser, but only with reference to written
information relating to such Initial Purchaser furnished to the Company by or on behalf of such Initial Purchaser through the Representatives specifically for inclusion in the Preliminary Memorandum, the Final Memorandum or in any amendment or
supplement thereto. This indemnity agreement will be in addition to any liability that any Initial Purchaser may otherwise have. The Company acknowledges that the statements set forth in the last paragraph of the cover page regarding delivery of the
Securities and, the third paragraph, the fifth and sixth sentences of the ninth paragraph and the tenth paragraph under the heading “Plan of Distribution” in the Preliminary Memorandum and the Final Memorandum, constitute the only
information furnished in writing by or on behalf of the Initial Purchasers for inclusion in the Preliminary Memorandum, the Final Memorandum or in any amendment or supplement thereto. 
  
 (d) Promptly after receipt by an indemnified party under this Section 8 of notice of the commencement
of any action, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 8, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the
indemnifying party (i) will not relieve it from liability under paragraph (a), (b) or (c) above unless and to the extent it has been materially prejudiced through the forfeiture by the indemnifying party of substantial rights and
defenses and (ii) will not, in any event, relieve the indemnifying party from any obligations to any indemnified party other than the indemnification obligation provided in paragraph (a), (b) or (c) above. If any action shall be
brought against an indemnified party and it shall have notified the indemnifying party thereof, the indemnifying party shall be entitled to appoint counsel (including local counsel) of the indemnifying party’s choice at the indemnifying
party’s expense to represent the indemnified party in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be responsible for the fees and expenses of any separate counsel, other than local
counsel if not appointed by the indemnifying party, retained by the indemnified party or parties except as set forth below); provided, however, that such counsel shall be reasonably satisfactory to the indemnified party.
Notwithstanding the indemnifying party’s election to appoint counsel (including local counsel) to represent the indemnified party in an action, the indemnified party shall have the right to employ separate counsel (including local counsel), and
the indemnifying party shall bear the reasonable fees, costs and expenses of such separate counsel if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of
interest; (ii) the actual or 

  

 20 

 
potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and the indemnified party shall have
reasonably concluded that there may be legal defenses available to it and/or other indemnified parties that are different from or additional to those available to the indemnifying party; (iii) the indemnifying party shall not have employed
counsel reasonably satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of the institution of such action; or (iv) the indemnifying party shall authorize the indemnified party to employ
separate counsel at the expense of the indemnifying party. An indemnifying party will not, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any pending or
threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement,
compromise or consent includes an unconditional release of each indemnified party from all liability arising out of such claim, action, suit or proceeding and does not include an admission of fault, culpability or a failure to act, by or on behalf
of such indemnified party. 
  
 (e) In the event
that the indemnity provided in paragraph (a), (b) or (c) of this Section 8 is unavailable to or insufficient to hold harmless an indemnified party for any reason, the Company and the Initial Purchasers severally agree, in lieu of the
indemnity provided in paragraph (a), (b) or (c) of this Section 8 to contribute to the aggregate losses, claims, damages and liabilities (including legal or other expenses reasonably incurred in connection with investigating or
defending any loss, claim, damage, liability or action) (collectively “Losses”) to which the Company and one or more of the Initial Purchasers may be subject in such proportion as is appropriate to reflect the relative benefits received by
the Company on the one hand and by the Initial Purchasers on the other from the offering of the Securities; provided, however, that in no case shall any Initial Purchaser (except as may be provided in any agreement among the Initial
Purchasers relating to the offering of the Securities) be responsible for any amount in excess of the purchase discount or commission applicable to the Securities purchased by such Initial Purchaser hereunder. If the allocation provided by the
immediately preceding sentence is not permitted by applicable law, the Company and the Initial Purchasers severally shall contribute in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the
Company on the one hand and of the Initial Purchasers on the other in connection with the statements or omissions that resulted in such Losses, as well as any other relevant equitable considerations. Benefits received by the Company shall be deemed
to be equal to the total net proceeds from the offering (before deducting expenses) received by it, and benefits received by the Initial Purchasers shall be deemed to be equal to the total purchase discounts and commissions in each case set forth on
the cover of the Final Memorandum. Relative fault shall be determined by reference to, among other things, whether any untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to
information provided by the Company on the one hand or the Initial Purchasers on the other, the intent of the parties and their relative knowledge, access to information and opportunity to correct or 

  

 21 

 
prevent such untrue statement or omission. The Company and the Initial Purchasers agree that it would not be just and equitable if contribution were
determined by pro rata allocation or any other method of allocation that does not take account of the equitable considerations referred to above. Notwithstanding the provisions of this paragraph (e), no person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 8, each person who controls an Initial Purchaser
within the meaning of either the Act or the Exchange Act and each director, officer, employee, Affiliate and agent of an Initial Purchaser shall have the same rights to contribution as such Initial Purchaser, and each person who controls the Company
within the meaning of either the Act or the Exchange Act and each officer and director of the Company shall have the same rights to contribution as the Company, subject in each case to the applicable terms and conditions of this paragraph (e).

  
 9. Default by an Initial Purchaser. If any one or more
Initial Purchasers shall fail to purchase and pay for any of the Securities agreed to be purchased by such Initial Purchaser hereunder and such failure to purchase shall constitute a default in the performance of its or their obligations under this
Agreement, the remaining Initial Purchasers shall be obligated severally to take up and pay for (in the respective proportions which the principal amount of Securities set forth opposite their names in Schedule I hereto bears to the aggregate
principal amount of Securities set forth opposite the names of all the remaining Initial Purchasers) the Securities which the defaulting Initial Purchaser or Initial Purchasers agreed but failed to purchase; provided, however, that in
the event that the aggregate principal amount of Securities which the defaulting Initial Purchaser or Initial Purchasers agreed but failed to purchase shall exceed 10% of the aggregate principal amount of Securities set forth in Schedule I hereto,
the remaining Initial Purchasers shall have the right to purchase all, but shall not be under any obligation to purchase any, of the Securities, and if such nondefaulting Initial Purchasers do not purchase all the Securities, this Agreement will
terminate without liability to any nondefaulting Initial Purchaser or the Company. In the event of a default by any Initial Purchaser as set forth in this Section 9, the Closing Date shall be postponed for such period, not exceeding five
Business Days, as the Representatives shall determine in order that the required changes in the Final Memorandum or in any other documents or arrangements may be effected. Nothing contained in this Agreement shall relieve any defaulting Initial
Purchaser of its liability, if any, to the Company or any nondefaulting Initial Purchaser for damages occasioned by its default hereunder. 
  
 10. Termination. This Agreement shall be subject to termination in the absolute discretion of the Representatives, by notice given to the Company
prior to delivery of and payment for the Securities, if at any time prior to such time (i) trading in any of the Company’s securities shall have been suspended by the Commission or the New York Stock Exchange or trading in securities
generally on the New York Stock Exchange shall have been suspended or materially limited; (ii) a banking moratorium shall have been declared by federal, Delaware or New York State authorities; or (iii) there shall have occurred any
outbreak or escalation of hostilities, declaration by the United States of a national emergency or war or other calamity or crisis the effect of which on financial markets is such as to make it, in the judgment of the Representatives, impracticable
or inadvisable to proceed with the offering or delivery of the 

  

 22 

 
Securities as contemplated by the Final Memorandum (exclusive of any amendment or supplement thereto). 
  
 11. No Fiduciary Duty. The Company hereby acknowledges that the
Initial Purchasers are each acting solely as an initial purchaser in connection with the purchase and sale of the Securities. The Company further acknowledges that the Initial Purchasers are acting pursuant to a contractual relationship created
solely by this Agreement entered into on an arm’s length basis and in no event do the parties intend that the Initial Purchasers act or be responsible as a fiduciary to the Company, its management, stockholders, creditors or any other person in
connection with any activity that the Initial Purchasers may undertake or has undertaken in furtherance of the purchase and sale of the Company’s securities, either before or after the date hereof. The Initial Purchasers hereby expressly
disclaim any fiduciary obligations to the Company, either in connection with the transactions contemplated by this Agreement or any matters leading up to such transactions, and the Company hereby confirms its understanding and agreement to that
effect. The Company and the Initial Purchasers agree that they are each responsible for making their own independent judgments with respect to any such transactions. The Company and the Initial Purchasers further agree that any opinions or views
expressed by the Initial Purchasers to the Company regarding such transactions, including but not limited to any opinions or views with respect to the price or market for the Securities, do not constitute advice or recommendations to the Company
that give rise to a fiduciary duty to the Company. The Company hereby waives and releases, to the fullest extent permitted by law, any claims that the Company may have against the Initial Purchasers with respect to any breach or alleged breach of
any fiduciary duty to the Company in connection with the transactions contemplated by this Agreement or any matters leading up to such transactions. 
  
 12. Representations and Indemnities to Survive. The respective agreements, representations, warranties and indemnities and other statements of the
Company or its officers and of the Initial Purchasers set forth in or made pursuant to this Agreement or any certificate delivered pursuant hereto will remain in full force and effect, regardless of any investigation made by or on behalf of the
Initial Purchasers or the Company or any of the indemnified persons referred to in Section 8 hereof, and will survive delivery of and payment for the Securities. The provisions of Sections 7 and 8 hereof shall survive the termination or
cancellation of this Agreement. 
  
 13. Notices. All
communications hereunder will be in writing and effective only on receipt, and, if sent to the Representatives, will be mailed, delivered or telefaxed to (i) [·] (Fax Number: [·]); and (ii) [·] (Fax Number: [·]); or, if sent to the Company, will be mailed, delivered or telefaxed to Blockbuster Inc., 1201
Elm Street, Dallas, Texas 75270 (Fax Number: (212) 854-3677), attention of General Counsel, with a copy mailed, delivered or telefaxed to John D. Wilson at Shearman & Sterling LLP, 525 Market Street, San Francisco, California 94105
(Fax Number: (415) 616-1100). 
  
 14. Successors. This
Agreement will inure to the benefit of and be binding upon the parties hereto and their respective successors and the indemnified persons referred to in Section 8 

  

 23 

 
hereof, and, except as expressly set forth in Section 5(i) hereof, no other person will have any right or obligation hereunder. 
  
 15. Applicable Law. This Agreement will be governed by and construed
in accordance with the laws of the State of New York applicable to contracts made and to be performed within the State of New York. 
  
 16. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall constitute an original and all of which together
shall constitute one and the same instrument. 
  
 17. Authority
of the Representative. Any action by the Initial Purchasers may be taken by the Representatives on behalf of such Initial Purchasers and any such action shall be binding upon the Initial Purchasers. 
  
 18. Headings. The section headings used herein are for convenience
only and shall not affect the construction hereof. 
  
 19.
Definitions. The terms which follow, when used in this Agreement, shall have the meanings indicated. 
  
 “Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations of the Commission promulgated thereunder.

  
 “Affiliate” shall have the meaning specified
in Rule 501(b) of Regulation D. 
  
 “Business
Day” shall mean any day other than a Saturday, a Sunday or a legal holiday or a day on which banking institutions or trust companies are authorized or obligated by law to close in The City of New York. 
  
 “Commission” shall mean the Securities and Exchange
Commission. 
  
 “Common Stock” shall mean the
Company’s Class A common stock, par value $0.01 per share. 
  
 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission promulgated thereunder. 
  
 “Execution Time” shall mean the date and time that this Agreement is executed and delivered by the parties
hereto. 
  
 “Investment Company Act” shall mean
the Investment Company Act of 1940, as amended, and the rules and regulations of the Commission promulgated thereunder. 
  
 “NASD” shall mean the National Association of Securities Dealers, Inc. 
  
 “PORTAL” shall mean the Private Offerings, Resales and Trading through Automated Linkages system of the
NASD.  
  
 “Regulation D” shall mean
Regulation D under the Act. 
  

 24 

 If the foregoing is in accordance with your understanding of our agreement, please sign and return to us
the enclosed duplicate hereof, whereupon this Agreement and your acceptance shall represent a binding agreement between the Company and the several Initial Purchasers. 
  

					
	 Very truly yours,

	
	BLOCKBUSTER INC.
		
	By:	 	/S/    LARRY J. ZINE
	 	 	 Name:
	 	 Larry J. Zine

	 	 	 Title:
	 	 Executive Vice President,
 Chief Financial Officer and
 Chief Administrative Officer

  

 25 

					
	 The foregoing Agreement is hereby confirmed
 and accepted as of the date first above written.

	
	[·]
		
	By:	 	[·]
	 	 	 Name:
	 	 [·]

	 	 	 Title:
	 	 Vice President

	
	[·]
		
	By:	 	[·]
	 	 	 Name:
	 	 [·]

	 	 	 Title:
	 	 Vice President

	
	 For themselves as Representatives
 and on behalf of the other several Initial Purchasers
 named in Schedule I to the foregoing Agreement

  

 26

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