Document:

QuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 4.12  

        EXECUTION COPY 

 

 
  INDENTURE    
    

Dated
as of October 24, 2003 

between

Level
3 Communications, Inc., 

as
Issuer 

and 

The
Bank of New York, 

as
Trustee 

$294,732,000 

9%
Convertible Senior Discount Notes due 2013 

(Senior
Debt Securities) 

 

  

CROSS-REFERENCE TABLE*  

	Trust Indenture Act Section
 
	 	Indenture Section
	 
	310 (a)(1)	 	7.10	 
	(a)(2)	 	7.10	 
	(a)(3)	 	N.A.	 
	(a)(4)	 	N.A.	 
	(a)(5)	 	N.A.	 
	(b)	 	7.08, 7.10	 
	(c)	 	N.A.	 
	311(a)	 	7.11	 
	(b)	 	7.11	 
	(c)	 	N.A.	 
	312 (a)	 	2.05	 
	(b)	 	11.03	 
	(c)	 	11.03	 
	313(a)	 	7.06	 
	(b)(1)	 	7.06	 
	(b)(2)	 	7.06	 
	(c)	 	7.06	 
	(d)	 	7.06	 
	314(a)	 	4.02, 4.03	 
	(b)	 	N.A.	 
	(c)(1)	 	11.04	 
	(c)(2)	 	11.04	 
	(c)(3)	 	N.A.	 
	(d)	 	N.A.	 
	(e)	 	11.05	 
	(f)	 	N.A.	 
	315(a)	 	7.01(b	)
	(b)	 	7.05	 
	(c)	 	7.01	 
	(d)	 	7.01(c	)
	(e)	 	6.11	 
	316(a)(1)(A)	 	6.05	 
	(a)(1)(B)	 	6.04	 
	(a)(2)	 	N.A.	 
	(b)	 	6.07	 
	(c)	 	1.05(e	)
	317(a)(1)	 	6.08	 
	(a)(2)	 	6.09	 
	(b)	 	2.04	 
	318(a)	 	N.A.	 

N.A.
means not applicable. 

*This
Cross-Reference Table is not part of the Indenture. 

i

 
 
 

TABLE OF CONTENTS    
    

	 
	 	 
	 	Page

	ARTICLE 1	 	DEFINITIONS AND INCORPORATION BY REFERENCE	 	1
	 	
 Section 1.01.	
 	

Definitions	
 	

1
	 	Section 1.02.	 	Incorporation by Reference of Trust Indenture Act	 	8
	 	Section 1.03.	 	Rules of Construction	 	8
	 	Section 1.04.	 	Acts of Holders.	 	8
	

ARTICLE 2	
 	

THE SECURITIES	
 	

9
	 	
 Section 2.01.	
 	

Title and Terms	
 	

9
	 	Section 2.02.	 	Denominations	 	10
	 	Section 2.03.	 	Form and Dating	 	10
	 	Section 2.04.	 	Execution and Authentication	 	11
	 	Section 2.05.	 	Registrar, Paying Agent and Conversion Agent	 	11
	 	Section 2.06.	 	Paying Agent to Hold Money in Trust.	 	11
	 	Section 2.07.	 	Holder Lists	 	12
	 	Section 2.08.	 	Transfer and Exchange.	 	13
	 	Section 2.09.	 	Replacement Securities	 	14
	 	Section 2.10.	 	Outstanding Securities; Determinations of Holders' Action	 	15
	 	Section 2.11.	 	Temporary Securities	 	15
	 	Section 2.12.	 	Cancellation	 	15
	 	Section 2.13.	 	Persons Deemed Owners	 	16
	 	Section 2.14.	 	Transfer Provisions.	 	16
	 	Section 2.15.	 	CUSIP Numbers	 	18
	

ARTICLE 3	
 	

REDEMPTION	
 	

18
	 	
 Section 3.01.	
 	

Optional Redemption	
 	

18
	 	Section 3.02.	 	Notices to Trustee	 	18
	 	Section 3.03.	 	Selection of Securities to Be Redeemed	 	18
	 	Section 3.04.	 	Notice of Redemption	 	19
	 	Section 3.05.	 	Effect of Notice of Redemption	 	20
	 	Section 3.06.	 	Deposit of Redemption Price	 	20
	 	Section 3.07.	 	Securities Redeemed in Part	 	20
	 	Section 3.08.	 	Conversion Arrangement on Call for Redemption	 	20
	

ARTICLE 4	
 	

COVENANTS	
 	

21
	 	
 Section 4.01.	
 	

Payment of Accreted Value and Interest	
 	

21
	 	Section 4.02.	 	Maintenance of Office or Agency	 	21
	 	Section 4.03.	 	Money for Securities Payments to Be Held in Trust	 	21
	 	Section 4.04.	 	Statement as to Compliance	 	22
	 	Section 4.05.	 	Repurchase Upon Designated Event	 	22
	 	Section 4.06.	 	Limitation on Liens	 	24
	 	Section 4.07.	 	Special Interest Notice	 	24
	 	Section 4.08.	 	Calculation of Original Issue Discount	 	25
	

ARTICLE 5	
 	

CONSOLIDATION, MERGER, SALE, LEASE OR CONVEYANCE	
 	

25
	 	
 Section 5.01.	
 	

When the Company May Merge, Etc	
 	

25
	 	Section 5.02.	 	Successor Corporation Substituted	 	25
	 	Section 5.03.	 	Purchase Option on Change of Control	 	26
	 	 	 	 	 

ii

 

	

ARTICLE 6	
 	

EVENTS OF DEFAULT	
 	

26
	 	
 Section 6.01.	
 	

Events of Default	
 	

26
	 	Section 6.02.	 	Acceleration	 	27
	 	Section 6.03.	 	Other Remedies	 	28
	 	Section 6.04.	 	Waiver of Past Defaults	 	28
	 	Section 6.05.	 	Control by Majority	 	28
	 	Section 6.06.	 	Limitation on Suits	 	28
	 	Section 6.07.	 	Rights of Holders to Receive Payment	 	28
	 	Section 6.08.	 	Collection Suit by Trustee	 	29
	 	Section 6.09.	 	Trustee May File Proofs of Claim	 	29
	 	Section 6.10.	 	Priorities	 	29
	 	Section 6.11.	 	Undertaking for Costs	 	29
	 	Section 6.12.	 	Notice of Default or Event of Default	 	29
	

ARTICLE 7	
 	

TRUSTEE	
 	

29
	 	
 Section 7.01.	
 	

Duties of Trustee.	
 	

29
	 	Section 7.02.	 	Rights of Trustee	 	30
	 	Section 7.03.	 	Individual Rights of Trustee	 	31
	 	Section 7.04.	 	Trustee's Disclaimer	 	32
	 	Section 7.05.	 	Notice of Defaults	 	32
	 	Section 7.06.	 	Reports by Trustee to Holders	 	32
	 	Section 7.07.	 	Reports by Company	 	32
	 	Section 7.08.	 	Compensation and Indemnity	 	32
	 	Section 7.09.	 	Replacement of Trustee	 	33
	 	Section 7.10.	 	Successor Trustee by Merger	 	33
	 	Section 7.11.	 	Eligibility; Disqualification	 	34
	 	Section 7.12.	 	Preferential Collection of Claims Against Company	 	34
	 	Section 7.13.	 	Money Held in Trust	 	34
	

ARTICLE 8	
 	

DISCHARGE OF INDENTURE	
 	

34
	 	
 Section 8.01.	
 	

Discharge of Liability on Securities	
 	

34
	 	Section 8.02.	 	Application of Trust Funds	 	34
	 	Section 8.03.	 	Repayment to the Company	 	34
	

ARTICLE 9	
 	

AMENDMENTS	
 	

35
	 	
 Section 9.01.	
 	

Without Consent of Holders	
 	

35
	 	Section 9.02.	 	With Consent of Holders	 	35
	 	Section 9.03.	 	Compliance with Trust Indenture Act	 	36
	 	Section 9.04.	 	Revocation and Effect of Consents	 	36
	 	Section 9.05.	 	Notation on or Exchange of Securities	 	36
	 	Section 9.06.	 	Trustee to Sign Supplemental Indentures	 	36
	 	Section 9.07.	 	Effect of Supplemental Indentures	 	36
	 	 	 	 	 

iii

 

	

ARTICLE 10	
 	

CONVERSIONS	
 	

36
	 	
 Section 10.01.	
 	

Right to Convert	
 	

36
	 	Section 10.02.	 	Exercise of Conversion Privilege; Issuance of Common Stock on Conversion; No Adjustment for Interest, Accretion or Dividends	 	37
	 	Section 10.03.	 	Cash Payments in Lieu of Fractional Shares	 	38
	 	Section 10.04.	 	Adjustment of the Conversion Price	 	39
	 	Section 10.05.	 	Effect of Reclassification, Consolidation, Merger or Sale	 	44
	 	Section 10.06.	 	Taxes on Shares Issued	 	45
	 	Section 10.07.	 	Reservation of Shares; Shares to Be Fully Paid; Listing of Common Stock	 	45
	 	Section 10.08.	 	Responsibility of Trustee	 	46
	 	Section 10.09.	 	Notice to Holders Prior to Certain Actions	 	46
	

ARTICLE 11	
 	

MISCELLANEOUS	
 	

47
	 	
 Section 11.01.	
 	

Trust Indenture Act Controls	
 	

47
	 	Section 11.02.	 	Notices	 	47
	 	Section 11.03.	 	Communication by Holders with Other Holders	 	48
	 	Section 11.04.	 	Certificate and Opinion as to Conditions Precedent	 	48
	 	Section 11.05.	 	Statements Required in Certificate or Opinion.	 	48
	 	Section 11.06.	 	Separability Clause	 	48
	 	Section 11.07.	 	Rules by Trustee, Paying Agent, Conversion Agent and Registrar	 	49
	 	Section 11.08.	 	Legal Holidays	 	49
	 	Section 11.09.	 	Governing Law	 	49
	 	Section 11.10.	 	No Recourse Against Others	 	49
	 	Section 11.11.	 	Successors	 	49
	 	Section 11.12.	 	Multiple Originals	 	49

	Exhibit A-1	 	—	 	Form of Global Security
	Exhibit A-2	 	—	 	Form of Certificated Security
	Exhibit B	 	—	 	Transfer Certificate

iv

   
        THIS INDENTURE, dated as of October 24, 2003, is by and between Level 3 Communications, Inc., a Delaware corporation (the
"Company"), and The Bank of New York, a corporation duly organized and existing under the laws of the State of New York (the
"Trustee"), having a Corporate Trust Office at 101 Barclay Street, Floor 8 West, New York, New York 10286. 

        Each
party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders (as defined below) of the Company's 9% Convertible Senior Discount
Notes Due 2013 (the "Securities"): 

ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE  

        Section 1.01.
Definitions. 

        "144A Global Security" means a permanent Global Security in the form of the Security attached hereto as Exhibit A-1
that is deposited with and registered in the name of the Depositary, representing Securities eligible to be resold in reliance on Rule 144A under the Securities Act. 

        "Accreted Value" of any Security as of or to any date of determination prior to October 15, 2007, means, as of any date of
determination, an amount equal to the sum of (a) the Issue Price of such Security plus (b) the aggregate of the portions of the original issue discount (the excess of the amounts
considered as part of the "stated redemption price at maturity" of such Security within the meaning of Section 1273(a)(2) of the Code or any successor provisions, whether denominated as
principal or interest, over the Issue Price of such Security) that shall theretofore have accrued pursuant to Section 1272 of the Code (without regard to Section 1272(a)(7) of the Code)
from the date of issue of such Security to the date of determination (which amount shall be accrued on a daily basis and compounded semiannually on each Accretion Measurement Date at a rate of 9% per
annum from the Issue Date through the date of determination on the basis of a 360-day year of twelve 30-day months), minus all amounts theretofore paid in respect of
such Security, which amounts are considered as part of the "stated redemption price at maturity" of such Security within the meaning of Section 1273(a)(2) of the Code or any successor
provisions (whether such amounts paid were denominated as principal or interest). The Accreted Value of any Security on or after October 15, 2007,
will mean the principal amount at maturity of such Security. Notwithstanding the foregoing, if the Company elects to commence the accrual of cash interest on the Securities on or after
October 15, 2004 and prior to October 15, 2007, the Securities shall cease to accrete, and the Accreted Value and the principal amount at maturity of each Security shall be the Accreted
Value on the date of commencement of such accrual as calculated in accordance with the first sentence of this definition. 

        "Accretion Measurement Date" means April 15 and October 15 of each year. 

        "Acquired Debt" means, with respect to any specified Person, (a) indebtedness of any other Person existing at the time such Person
merges with or into or consolidates with such specified Person and (b) indebtedness secured by a Lien encumbering any property acquired by such specified Person, which indebtedness in each case
was not incurred in anticipation of, and was outstanding prior to, such merger, consolidation or acquisition. 

        "Act" shall have the meaning set forth in Section 1.04(a) of this Indenture. 

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

1

 

        "Agent Members" shall have the meaning given in Section 2.14(e) of this Indenture. 

        "Authorized Newspaper" means a newspaper, printed in the English language or in an official language of the country of publication,
customarily published on each Business Day, whether or not published on Saturdays, Sundays or holidays, and of general circulation in each place in connection with which the term is used or in the
financial community of each such place. Whenever successive publications are required to be made in Authorized Newspapers, the successive publications may be made in the same or in different
Authorized Newspapers in the same city meeting the foregoing requirements and in each case on any Business Day. 

        "Bankruptcy Law" means Title 11, U.S. Code or any similar federal, state, or foreign law for the relief of debtors. 

        "Board of Directors" means either the board of directors of the Company or any duly authorized committee of such board. 

        "Board Resolution" means a copy of one or more resolutions, certified by an Officer of the Company to have been duly adopted or consented
to by the applicable Board of Directors and to be in full force and effect, and delivered to the Trustee. 

        "Business Day" means a day that in the City of New York is not a day on which banking institutions are authorized or obligated by law or
regulation to close. 

        "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 and exchangeable into an equity
interest), warrants or options to acquire an equity interest in such Person. 

        "Certificated Securities" means Securities that are in the form of the Securities attached hereto as Exhibit A-2. 

        "Change of Control" at such time after the original issuance of the Securities means the occurrence of one or more of the following
events: (a) any "person" or "group" (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act or any successor provisions to either of the foregoing), including any
group acting for the purpose of acquiring, holding, voting or disposing of securities within the meaning of Rule 13d-5(b)(1) under the Exchange Act, other than any one or
more of the Permitted Holders, becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act, except that a person will be deemed to have "beneficial ownership" of
all shares that any such person has the right to acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of 35% or more of the total voting
power of the Voting Stock of the Company; provided, however, that the Permitted Holders are the
"beneficial owners" (as defined in Rule 13d-3 under the Exchange Act, except that a person will be deemed to have "beneficial ownership" of all shares that any such person has the
right to acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly, in the aggregate of a lesser percentage of the total voting power of the
Voting Stock of the Company than such other person or group (for purposes of this clause (a), such person or group shall be deemed to beneficially own any Voting Stock of a corporation (the
"specified corporation") held by any other corporation (the "parent corporation") so long as such person
or group beneficially owns, directly or indirectly, in the aggregate a majority of the total voting power of the Voting Stock of such parent corporation); or (b) the sale, transfer, assignment,
lease, conveyance or other disposition, directly or indirectly, of all or substantially all the assets of the Company and its Subsidiaries, considered as a whole (other than a disposition of such
assets as an entirety or virtually as an entirety to a wholly owned Subsidiary or one or more Permitted Holders) shall have occurred; or (c) during any period of two consecutive years,
individuals who at the beginning of such period constituted the Board of Directors of the Company (together with any new 

2

 

directors
whose election or appointment by such board or whose nomination for election by the shareholders of the Company was approved by a vote of a majority of the directors then still in office who
were either directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of the Board of Directors
of the Company then in office; or (d) the shareholders of the Company shall have approved any plan of liquidation or dissolution of the Company;  provided, however, that a Change of Control under (a) and (b) above shall not be deemed to
have occurred if either (x) the daily market price per share of Common Stock for any five Trading Days within the period of 10 consecutive Trading Days ending immediately after the later of the
Change of Control or the public announcement of the Change of Control (in the case of a Change of Control under clause (a) above) or the period of 10 consecutive Trading Days ending
immediately before the Change of Control (in the case of a Change of Control under clause (b) above) shall equal or exceed 105% of the Conversion Price in effect on the date of the
Change of Control or the public announcement of the Change of Control (provided that for purposes of the foregoing, the Conversion Price shall be
determined without regard to temporary increases therein pursuant to Section 10.04(g) of this Indenture, as applicable; or (y) all of the consideration (excluding cash payments
for fractional shares) in the transaction or transactions constituting the Change of Control consists of shares of common stock that are, or upon issuance will be, traded on the New York Stock
Exchange or the American Stock Exchange or quoted on the Nasdaq National Market and as a result of such transaction or transactions the Securities become convertible solely into such common stock. 

        "Clearstream" means Clearstream Banking, société anonyme. 

        "Closing Sale Price" of the shares of 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 in
composite transactions for the New York Stock Exchange or such other principal United States securities exchange on which shares of Common Stock may be traded or, if the shares of Common Stock are not
listed on a United States national or regional securities exchange, as reported by the Nasdaq system or by the National Quotation Bureau Incorporated. In the absence of such quotations, the Company
shall be entitled to determine the Closing Sale Price on the basis of such quotations as it considers appropriate. Closing Sale Price shall be determined without reference to extended or
after hours trading. 

        "Code" means the Internal Revenue Code of 1986, as amended. 

        "Common Stock" means shares of the Company's Common Stock, $0.01 par value per share, as they exist on the date of this Indenture or any
other shares of Capital Stock of the Company into which the Common Stock shall be reclassified or changed. 

        "Company" means the party named as the "Company" in the first paragraph of this Indenture until a successor replaces it pursuant to the
applicable provisions of this Indenture and, thereafter, shall mean such successor. The foregoing sentence shall likewise apply to any subsequent such successor or successors. 

        "Company Order" means a written request or order signed in the name of the Company by any two Officers. 

        "Conversion Agent" means the Trustee or any other Person appointed by the Company to accept Securities presented for conversion. 

        "Conversion Price" shall have the meaning set forth in Exhibit A-1 hereto. 

        "Corporate Trust Office" means the principal office of the Trustee at which at any time the trust created by this Indenture shall be
administered, which office at the date hereof is located at 101 

3

 

Barclay
Street, Floor 8 West, New York, New York 10286, Attention: Corporate Trust Administration, or such other address as the Trustee may designate from time to time by notice to the Holders and the
Company, or the principal corporate trust office of any successor Trustee (or such other address as a successor Trustee may designate from time to time by notice to the Holders and the Company). 

        "Current Market Price" shall have the meaning set forth in Section 10.04(f)(1) of this Indenture. 

        "Custodian" means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law. 

        "Default" means any event which is, or after notice or passage of time or both would be, an Event of Default. 

        "Defaulted Interest" shall have the meaning set forth in Section 2.06(b) of this Indenture. 

        "Designated Event" means the occurrence of a Change of Control or a Termination of Trading. 

        "Designated Event Date" shall have the meaning set forth in Section 4.05 of this Indenture. 

        "Designated Event Offer" shall have the meaning set forth in Section 4.05 of this Indenture. 

        "Designated Event Offer Termination Date" shall have the meaning set forth in Section 4.05 of this Indenture. 

        "Designated Event Payment" shall have the meaning set forth in Section 4.05 of this Indenture. 

        "Designated Event Payment Date" shall have the meaning set forth in Section 4.05 of this Indenture. 

        "Depositary" shall have the meaning set forth in Section 2.03(b) of this Indenture. 

        "Determination Date" shall have the meaning set forth in Section 10.04(j) of this Indenture. 

        "DTC" shall have the meaning set forth in Section 2.03(b) of this Indenture. 

        "Distribution" shall have the meaning set forth in Section 10.04(d) of this Indenture. 

        "Euroclear" means Euroclear S.A. / N.V., as operator of the Euroclear System. 

        "Event of Default" shall have the meaning set forth in Section 6.01 of this Indenture. 

        "Exchange Act" means the Securities Exchange Act of 1934, and the rules and regulations promulgated thereunder, as in effect from time to
time. 

        "Expiration Time" shall have the meaning set forth in Section 10.04(e) of this Indenture. 

        "Fair Market Value" has the meaning set forth in Section 10.04(f)(2) of this Indenture. 

        "GAAP" means generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of
the America Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as may be approved
by a significant segment of the accounting profession of the United States, which are in effect on the Issue Date. 

        "Global Security" shall have the meaning set forth in Section 2.03 of this Indenture. 

        "Holder" or "Securityholder" means a person in whose name a Security is registered on the
Registrar's books. 

        "Indenture" means this Indenture, as amended or supplemented from time to time in accordance with the terms hereof, including the
provisions of the TIA that are deemed to be a part hereof. 

4

 

        "Initial Purchasers" shall mean CRC (Bermuda) Reinsurance Limited, Markel Insurance Company of Canada, Federated Insurance Company of
Canada, Federated Life Insurance Company of Canada, Commonwealth Insurance Company, Commonwealth Insurance Company of America, Lombard General Insurance Company of Canada, Ranger Insurance Company,
United States Fire Insurance Company, The North River Insurance Company, Seneca Insurance Company, Inc., Seneca Specialty Insurance Company, Odyssey America Reinsurance Corporation, Odyssey
Reinsurance Corporation, Hudson Insurance Company, Newline Underwriting Management Limited, Falcon Insurance Company Limited, TIG Insurance Company and Riverstone Management Limited. 

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

        "Issue Date" of any Security means the date on which the Security was originally issued or deemed issued as set forth on the face of the
Security. 

        "Issue Price" of any Security means $704.73 per $1,000 principal amount at maturity. 

        "Legal Holiday" shall have the meaning set forth in Section 11.08 of this Indenture. 

        "Legend" shall have the meaning set forth in Section 2.08(f) of this Indenture. 

        "Lien" means any mortgage or deed of trust, pledge, hypothecation, security interest, lien, charge, encumbrance or other security
agreement of any kind or nature whatsoever; provided, however, that Liens shall not include defeasance
trusts or funds. For purposes of this definition, the sale, lease, conveyance or other transfer by the Company or any of its subsidiaries of, including the grant of indefeasible rights of use or
equivalent arrangements with respect to, dark or lit communications fiber capacity or communications conduit shall not constitute a Lien. 

        "Material Subsidiary" means any Subsidiary of the Company which at the date of determination is a "significant subsidiary" as defined in
Rule 1-02(w) of Regulation S-X under the Securities Act and the Exchange Act. 

        "Non-electing Share" shall have the meaning set forth in Section 10.05 of this Indenture. 

        "Non-U.S. Person" means a person who is not a U.S. person, as defined in Regulation S. 

        "Officer" means the Chairman and Chief Executive Officer, the President, any Vice President, the Chief Financial Officer, the Treasurer,
the Controller or the Secretary or Assistant Secretary of such Person or any other officer designated by the board of directors of such Person serving in a similar capacity. 

        "Officers' Certificate" means a written certificate containing the information specified in Sections 11.04 and 11.05, signed in the
name of the Company by any two Officers, and delivered to the Trustee. An Officers' Certificate given pursuant to Section 4.04 shall be signed by the principal financial, principal executive or
principal accounting officer of the Company but need not contain the information specified in Sections 11.04 and 11.05. 

        "Opinion Of Counsel" means a written opinion containing the information specified in Sections 11.04 and 11.05, from legal counsel
who is acceptable to the Trustee in its reasonable discretion. The counsel may be an employee of, or counsel to, the Company or the Trustee. 

        "Paying Agent" means any Person (including the Company acting as Paying Agent) authorized by the Company to pay the Accreted Value of or
interest on any Securities on behalf of the Company. 

        "Payment Default" shall have the meaning given in Section 6.01(f) of this Indenture. 

        "Permitted Holders" means the members of the Company's Board of Directors on April 28, 1998, and their respective estates, spouses,
ancestors, and lineal descendants, the legal representatives of any of the foregoing and the trustees of any bona fide trusts of which the foregoing are the sole 

5

 

beneficiaries
or the grantors, or any person of which the foregoing "beneficially owns" (as defined in Rule 13d-3 under the Exchange Act) at least 662/3% of the total
voting power of the Voting Stock of such person. 

        "Person" means any individual, corporation, company, partnership, joint venture, limited liability company, association, joint stock
company, trust, unincorporated organization, government or agency or political subdivision thereof or any other entity. 

        "Place of Payment" means the place or places where the Accreted Value of and interest on such Securities are payable as specified. 

        "Purchased Shares" shall have the meaning set forth in Section 10.04(e) of this Indenture. 

        "QIBS" shall have the meaning set forth in Section 2.03(b) of this Indenture. 

        "Record Date" shall have the meaning set forth in Section 10.04(f)(3) of this Indenture. 

        "Redemption Condition" shall have the meaning set forth in Section 3.01 of this Indenture. 

        "Redemption Date", when used with respect to any Security to be redeemed, in whole or in part, means the date fixed for such redemption by
or pursuant to this Indenture. 

        "Redemption Price" when used with respect to any of the Securities to be redeemed, means the price fixed for such redemption pursuant to
Article 3 and the Securities. 

        "Registrar" shall have the meaning set forth in Section 2.05 of this Indenture. 

        "Regular Record Date" for the interest payable on any Interest Payment Date means the April 1 or October 1 (whether or not a
Business Day), as the case may be, next preceding such Interest Payment Date. 

        "Regulation S" means Regulation S under the Securities Act. 

        "Regulation S Global Security" means a permanent Global Security in registered form representing the aggregate principal amount at
maturity of Securities sold in reliance on Regulation S under the Securities Act. 

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

        "Restricted Security" means a Security required to bear the restrictive legend set forth in the form of Security set forth in
Exhibit A-1 of this Indenture. 

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

        "SEC" means the Securities and Exchange Commission. 

        "Security" or "Securities" means any of the Company's 9% Convertible Senior Discount Notes
Due 2013, as amended or supplemented from time to time, issued under this Indenture. 

        "Security Register" has the meaning set forth in Section 2.07 of this Indenture. 

        "Securityholder" or "Holder" means a person in whose name a Security is registered on the
Registrar's books. 

6

 

        "Securities Act" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder, as in effect from
time to time. 

        "Special Interest" has the meaning set forth in Exhibit A-1 to this Indenture. 

        "Special Interest Notice" has the meaning set forth in Section 4.07 of this Indenture. 

        "Special Record Date" has the meaning set forth in Section 2.06(b) of this Indenture. 

        "Specified Indebtedness" means (a) the Company's 9.125% Senior Notes due 2008, 11% Senior Notes due 2008, 10.5% Senior Discount
Notes due 2008, 10.75% Senior Euro Notes due 2008, 12.875% Senior Discount Notes due 2010, 11.25% Senior Euro Notes due 2010, 11.25% Senior Notes due 2010, 6.0% Convertible Subordinated Notes due
2009, 6.0% Convertible Subordinated Notes due 2010 and 2.875% Convertible Senior Notes due 2010, and (b) any indebtedness of the Company for borrowed money that (i) is in the form of, or
represented by, bonds, notes, debentures or other securities (other than promissory notes or similar evidence of indebtedness under bank loans, reimbursement agreements, receivables facilities or
other bank, insurance or other institutional financing agreements under Section 4(2) of the Securities Act) or any guarantee thereof and (ii) is, or may be, quoted, listed or
purchased and sold on any stock exchange, automated securities trading system or over-the-counter or other securities market (including, without prejudice to the generality of
the foregoing, the market for securities eligible for resale pursuant to Rule 144A under the Securities Act). 

        "Spinoff Valuation Period" shall have the meaning set forth in Section 10.04(d) of this Indenture. 

        "Stated Maturity", when used with respect to a Security or any installment of interest thereon, means the date specified in such Security
as the fixed date on which the Accreted Value of such Security or such installment of interest is due and payable, including pursuant to any mandatory redemption provision (but excluding any provision
providing for the repurchase of such Security at the option of the Holder thereof upon the happening of any contingency beyond the control of the Company unless such contingency has occurred). 

        "Subsidiary" of any Person means (a) a corporation more than 50% of the combined voting power of the outstanding Voting Stock of
which is owned, directly or indirectly, by such Person or by one or more other Subsidiaries of such Person or by such Person and one or more Subsidiaries thereof or (b) any other Person (other
than a corporation) in which such Person, or one or more other Subsidiaries of such Person and one or more other Subsidiaries thereof, directly or indirectly, has at least a majority ownership and
power to direct the policies, management and affairs thereof. 

        "TIA" means the Trust Indenture Act of 1939 as in effect on the date of this Indenture, provided, however, that in the event the TIA is
amended after such date, TIA means, to the extent required by any such amendment, the TIA as so amended. 

        "Termination of Trading" will be deemed to have occurred if the Common Stock (or other common stock into which the Securities are then
convertible) is neither listed for trading on a U.S. national securities exchange nor approved for trading on the Nasdaq National Market. 

        "Trading Day" means (a) if the applicable security is quoted on the Nasdaq National Market, a day on which trades may be made
thereon, (b) if the applicable security is listed or admitted for trading on the New York Stock Exchange or another national securities exchange, a day on which the New York Stock Exchange or
such other national securities exchange is open for business or (c) if the applicable security is not so listed, admitted for trading or quoted, any day other than a Saturday or Sunday or a day
on which banking institutions in the State of New York are authorized or obligated by law or executive order to close. 

        "Transfer" means any sale, assignment, pledge, hypothecation, or other disposition or encumbrance. 

        "Trigger Event" shall have the meaning set forth in Section 10.04(d) of this Indenture. 

7

   
        "Trustee" means the party named as the "Trustee" in the first paragraph of this Indenture
until a successor replaces it pursuant to the applicable provisions of this Indenture and, thereafter, shall mean such successor. The foregoing sentence shall likewise apply to any subsequent such
successor or successors. 

        "Voting Stock" of any Person means the Capital Stock of such Person which ordinarily has voting power for the election of directors (or
persons performing similar functions) of such Person, whether at all times or only for so long as no senior class of securities has such voting power by reason of any contingency. 

        Section 1.02.
Incorporation by Reference of Trust Indenture Act. Whenever this Indenture refers to a provision of the TIA, the
provision is incorporated by reference in and made a part of this Indenture. The following TIA terms used in this Indenture have the following meanings: 

        "Commission" means the SEC. 

        "Indenture Securities" means the Securities. 

        "Indenture Security Holder" means a Securityholder. 

        "Indenture to be Qualified" means this Indenture. 

        "Indenture Trustee" or "Institutional Trustee" means the Trustee. 

        "Obligor" on the indenture securities means the Company. 

        All
other TIA terms used in this Indenture that are defined by the TIA, defined by a TIA reference to another statute or defined by an SEC rule have the meanings assigned to them by such
definitions. 

        Section 1.03.  Rules of Construction. Unless the context otherwise requires: 

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

        (b)   an
accounting term not otherwise defined has the meaning assigned to it in accordance with generally accepted accounting principles as in effect from time to time; 

        (c)   "or"
is not exclusive; 

        (d)   "including"
means including, without limitation; and 

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

        Section 1.04.
Acts of Holders. 

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

        (b)   The
fact and date of the execution by any Person of any such instrument or writing may be proved by the affidavit of a witness of such execution or by a certificate of a
notary public or other officer authorized by law to take acknowledgments of deeds, certifying that the individual signing such instrument or writing acknowledged to such officer the execution thereof.
Where such execution is by a 

8

 

signer
acting in a capacity other than such signer's individual capacity, such certificate or affidavit shall also constitute sufficient proof of such signer's authority. 

        The
fact and date of the execution of any such instrument or writing, or the authority of the Person executing the same, may also be proved in any other manner which the Trustee deems
sufficient. 

        (c)   The
ownership of Securities shall be proved by the register maintained by the Registrar. 

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

        (e)   If
the Company shall solicit from the Holders any request, demand, authorization, direction, notice, consent, waiver or other Act, the Company may, at its option, by or
pursuant to a Board Resolution, fix in advance a record date for the determination of Holders entitled to give such request, demand, authorization, direction, notice, consent, waiver or other Act, but
the Company shall have no obligation to do so. If such a record date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other Act may be given before or after such
record date, but only the Holders of record at the close of business on such record date shall be deemed to be Holders for the purposes of determining whether Holders of the requisite proportion of
outstanding Securities have authorized or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver or other Act, and for that purpose the outstanding Securities
shall be computed as of such record date; provided that no such authorization, agreement or consent by the Holders on such record date shall be deemed effective unless it shall become effective
pursuant to the provisions of this Indenture not later than six months after the record date. 

ARTICLE 2

THE SECURITIES  

        Section 2.01. Title and Terms. The aggregate principal amount at maturity of Securities which may be
authenticated and delivered under this Indenture is limited to $294,732,000, except for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of,
other Securities pursuant to Section 2.08, 2.09, 2.11, 3.07 or 4.05. 

        The
Securities shall be known and designated as the "9% Convertible Senior Discount Notes Due 2013" of the Company. Their Stated Maturity shall be October 15, 2013. The Securities
shall be issued at a discount of 29.527% to their aggregate principal amount at maturity, and shall accrete at a rate of 9% per annum, compounded semiannually, to 100% of their aggregate principal
amount at maturity by October 15, 2007. On October 15, 2007, cash interest shall commence accruing at a rate of 9% per annum, which shall be payable semiannually in arrears on
April 15 and October 15 in each year, commencing on April 15, 2008, and at said Stated Maturity, until the Accreted Value thereof is paid or duly provided for. The Company may
elect, upon not less than 60 days prior notice to the Holders and the Trustee, to commence the accrual of cash interest on all outstanding Securities on or after October 15, 2004, in
which case the outstanding principal amount at maturity of each Security shall on such commencement date be reduced to the Accreted Value of such Security as of such commencement date and cash
interest shall be payable with respect to such Security on each April 15 and October 15 thereafter, as set forth or referred to in the text of the Securities. 

        Accreted
Value of and interest on the Securities will be payable, and the Securities may be exchanged or transferred, at the office or agency of the Company in The City of New York,
which, unless otherwise provided by the Company, will be the offices of the Trustee. At the option of the 

9

 

Company,
interest may be paid by check mailed to addresses of the Persons entitled thereto as such addresses shall appear on the Security Register. 

        The
interest rate on the Securities is subject to increase by the addition of Special Interest and otherwise, all as set forth or referred to in the text of the Securities appearing in
Exhibit A-1 hereto. 

        The
Securities shall be convertible into shares of Common Stock as provided in Article 10. 

        The
Securities shall be redeemable as provided in Article 3. 

        Section 2.02.
Denominations. The Securities will be issued without coupons and in fully registered form only, in minimum
denominations of $1,000 principal amount at maturity and integral multiples thereof. 

        Section 2.03.  Form and Dating. The Securities and the Trustee's certificate of authentication shall be substantially in the
forms set forth on Exhibits A-1 and A-2, which are a part of this Indenture and incorporated by reference herein. The Securities may have notations, legends or endorsements
required by law, stock exchange rule or usage. The Company shall provide any such notations, legends or endorsements to the Trustee in writing. Each Security shall be dated the date of its
authentication. 

        (a)   Certificated Securities. Securities shall be issued initially only in certificated form substantially in the form of  Exhibit A-2 attached hereto. 

        (b)   Global Securities. Securities not issued in certificated form shall be issued in the form of one or more permanent global
Securities in registered form, substantially in the form set forth in Exhibit A-1 (each, a "Global
Security"), which shall be deposited with the Trustee at its Corporate Trust Office, as custodian for the Depositary and registered in the name of The Depository Trust Company
("DTC") or the nominee thereof (such depositary, or any successor thereto, and any such nominee being hereinafter referred to as the
"Depositary"), duly executed by the Company and authenticated by the Trustee as hereinafter provided. The aggregate principal amount at maturity of the
Global Securities may from time to time be increased or decreased by adjustments made on the records of the Trustee and the Depositary as hereinafter provided. 

        (c)   Global Securities in General. Each Global Security shall represent such of the outstanding Securities as shall be
specified therein and each shall provide that it shall represent the aggregate amount of outstanding Securities from time to time endorsed thereon and that the aggregate amount of outstanding
Securities represented thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges, redemptions and conversions. 

        Any
adjustment of the aggregate principal amount at maturity of a Global Security to reflect the amount of any increase or decrease in the amount of outstanding Securities represented
thereby shall be made by the Trustee as required by Section 2.14 hereof and shall be made on the records of the Trustee and the Depositary. 

        (d)   Book-Entry Provisions. The Company shall execute and the Trustee shall, in accordance with this
Section 2.03(c), authenticate and deliver initially one or more Global Securities that (i) shall be registered in the name of the Depositary, (ii) shall be delivered by the
Trustee to the Depositary or pursuant to the Depositary's instructions and (iii) shall bear legends substantially to the following effect: 

        "UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO LEVEL 3 COMMUNICATIONS, INC. (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 THE DEPOSITORY
TRUST 

10

 

COMPANY
(AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO
TRANSFERS TO NOMINEES OF THE DEPOSITORY TRUST COMPANY OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN
ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN ARTICLE TWO OF THE INDENTURE REFERRED TO ON THE REVERSE HEREOF." 

        Section 2.04.
Execution and Authentication. The Securities shall be executed on behalf of the Company by any Officer. The signature
of the officer of the Company on the Securities may be manual or facsimile. 

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

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

        Section 2.05.
Registrar, Paying Agent and Conversion Agent. The Company shall maintain an office or agency where Securities may be
presented for registration of transfer or for exchange ("Registrar"), an office or agency where Securities may be presented for purchase or payment
("Paying Agent") and an office or agency where Securities may be presented for conversion ("Conversion
Agent"). The Registrar shall keep a register of the Securities and of their transfer and exchange. The Company may have one or more co-registrars, one or more
additional paying agents and one or more additional conversion agents. The term Paying Agent includes any additional paying agent, including any named
pursuant to Section 4.02. The term Conversion Agent includes any additional conversion agent, including any named pursuant to Section 4.02. 

        The
Company shall enter into an appropriate agency agreement with any Registrar, Paying Agent, Conversion Agent or co-registrar (other than the Trustee). Such agreement shall
implement the provisions of this Indenture that relate to such agent. The Company shall notify the Trustee of the name and address of any such agent. If the Company fails to maintain a Registrar,
Paying Agent or Conversion Agent, the Trustee shall act as such and shall be entitled to appropriate compensation therefor pursuant to Section 7.07. The Company or any Subsidiary or an
Affiliate of either of them may act as Paying Agent, Registrar, Conversion Agent or co-registrar. 

        The
Company initially appoints the Trustee as Registrar, Conversion Agent and Paying Agent in connection with the Securities. 

        Section 2.06.  Paying Agent to Hold Money in Trust. 

        (a)   Except
as otherwise provided herein, on or prior to 10:00 am New York City time each due date of payments in respect of any Security, the Company shall deposit with the
Paying Agent a sum of money (in immediately available funds if deposited on the due date) sufficient to make such payments when so becoming due. The Company shall require each Paying Agent (other than
the Trustee) to 

11

 

agree
in writing that the Paying Agent shall hold in trust for the benefit of Holders or the Trustee all money held by the Paying Agent for the making of payments in respect of the Securities and
shall notify the Trustee of any Default by the Company in making any such payment. At any time during the continuance of any such Default, the Paying Agent shall, upon the written request of the
Trustee, forthwith pay to the Trustee all moneys held in trust. If the Company, a Subsidiary or an Affiliate of either of them acts as Paying Agent, it shall segregate the money held by it as Paying
Agent and hold it as a separate trust fund. The Company at any time may require Paying Agent to pay all money held by it to the Trustee and to account for any funds disbursed by it. Upon doing so, the
Paying Agent shall have no further liability for the money. 

        (b)   Except
as otherwise specified with respect to the Securities, any interest on any Security that is payable, but is not punctually paid or duly provided for, within
30 days following any applicable payment date (herein called "Defaulted Interest"), shall forthwith cease to be payable to the Holder thereof on the relevant Regular Record Date by virtue of
having been such Holder, and such Defaulted Interest may be paid by the Company, at its election in each case, as provided in clause (i) or (ii) below. 

        (i)    The
Company may elect to make payment of any Defaulted Interest to the Persons in whose names the Securities are registered at the close of business on a date for the
payment of such Defaulted Interest (the "Special Record Date"), which shall be fixed in the following manner: The Company shall notify the Trustee in writing of the amount of Defaulted Interest
proposed to be paid on each Security and the date of the proposed payment (which shall not be less than 20 days after such notice is received by the Trustee), and at the same time the Company
shall deposit with the Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for
such deposit on or prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this clause
provided. Thereupon the Trustee shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 days and not less than 10 days prior to the
date of the proposed payment and not less than 10 days after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Company of such Special
Record Date and, in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, first-class
postage prepaid, to each Holder of Securities at his address as it appears on the list of Holders maintained pursuant to this Indenture not less than 10 days prior to such Special Record Date.
Notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor having been mailed as aforesaid, such Defaulted Interest shall be paid to the Persons in whose names the
Securities are registered at the close of business on such Special Record Date and shall no longer be payable pursuant to the following clause (ii). 

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

        Section 2.07.  Holder Lists. The Trustee shall preserve in as current a form as is reasonably practicable the most recent list
available to it of the names and addresses of Holders (the "Security Register"). If the Trustee is not the Registrar, the Company shall cause to be furnished to the Trustee at least semiannually on
April 1 and October 1 a listing of Holders dated within 15 days of the date on which the list is furnished and at such other times as the Trustee may request in writing a list in
such form and as of such date as the Trustee may reasonably require of the names and addresses of Holders. 

12

 

        Section 2.08.
Transfer and Exchange. 

        (a)   Subject
to Section 2.14 hereof, upon surrender for registration of transfer of any Securities, together with a written instrument of transfer satisfactory to the
Registrar duly executed by the Securityholder or such Securityholder's attorney duly authorized in writing, at the office or agency of the Company designated as Registrar or co-registrar
pursuant to Section 2.05, the Company shall execute and the Trustee shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Securities of any
authorized denomination or denominations, of a like aggregate principal amount at maturity. The Company shall not charge a service charge for any registration of transfer or exchange, but the Company
may require payment of a sum sufficient to pay all taxes, assessments or other governmental charges that may be imposed in connection with the transferor exchange of the Securities from the
Securityholder requesting such transferor exchange. 

        At
the option of the Holder, Securities may be exchanged for other Securities of any authorized denomination or denominations, of a like aggregate principal amount at maturity, upon
surrender of the Securities to be exchanged, together with a written instrument of transfer satisfactory to the Registrar duly executed by the Securityholder or such Securityholder's attorney duly
authorized in writing, at such office or agency. Whenever any Securities are so surrendered for exchange, the Company shall execute, and the Trustee shall authenticate and deliver, the Securities that
the Holder making the exchange is entitled to receive. 

        The
Company shall not be required to make, and the Registrar need not register, transfers or exchanges of Securities selected for redemption (except, in the case of Securities to be
redeemed in part, the portion thereof not to be redeemed) or any Securities in respect of which a notice of Redemption or notice of a Designated Event has been given and not withdrawn by the Holder
thereof in accordance with the terms of this Indenture (except, in the case of Securities to be purchased in part, the portion thereof not to be purchased) or any Securities for a period of
15 days before the mailing of a notice of redemption of Securities to be redeemed. 

        (b)   Notwithstanding
any provision to the contrary herein, so long as a Global Security remains outstanding and is held by or on behalf of the Depositary, transfers of a
Global Security, in whole or in part, shall be made only in accordance with Section 2.14 and this Section 2.08(b). Transfers of a Global Security shall be limited to transfers of such
Global Security in whole, or in part, to nominees of the Depositary or to a successor of the Depositary or such successor's nominee. Owners of beneficial interests in the Securities represented by
Global Securities shall hold such interests pursuant to the procedures and practices of the Depositary. Owners of beneficial interests who purchased such interests pursuant to Regulation S may
hold their interests in a Global Security through Euroclear or Clearstream, if they are participants in such systems, or indirectly through organizations that are participants in such systems. Owners
of beneficial interests who purchased such interests pursuant to Regulation S may also hold such interests through organizations other than Euroclear or Clearstream that are participants in the
Depositary's system. Euroclear and Clearstream will hold interests in the Global Securities on behalf of their participants through customers' securities accounts in their respective names on the
books of their respective depositaries, which in turn, will hold such interests in the Global Securities in customers' securities accounts in the depositories' names on the books of the Depositary.
All interests in a Global Security, including those held through Euroclear or Clearstream may be subject to the procedures and requirements of the Depositary. Those interests held through Euroclear
and Clearstream will be subject to the procedures and requirements of such systems. 

        (c)   Successive
registrations and registrations of transfers and exchanges as aforesaid may be made from time to time as desired, and each such registration shall be noted on
the register for the Securities. 

13

 

        (d)   Any
Registrar appointed pursuant to Section 2.05 hereof shall provide to the Trustee such information as the Trustee may reasonably require in connection with the
delivery by such Registrar of Securities upon transfer or exchange of Securities. 

        (e)   No
Registrar shall be required to make registrations of transfer or exchange of Securities during any periods designated in the text of the Securities or in this
Indenture as periods during which such registration of transfers and exchanges need not be made. 

        (f)    If
Securities are issued upon the transfer, exchange or replacement of Securities subject to restrictions on transfer and bearing the legends set forth on the forms of
Securities attached hereto as Exhibits A-1 and A-2 setting forth such restrictions (collectively, the "Legend"), or if a request
is made to remove the Legend on a Security, the Securities so issued shall bear the Legend, or the Legend shall not be removed, as the case may be, unless there is delivered to the Company and the
Registrar such satisfactory evidence, which shall include an Opinion of Shearman & Sterling LLP or any other counsel reasonably acceptable to the Company, as may be reasonably required by the
Company and the Registrar, that neither the Legend nor the restrictions on transfer set forth therein are required to ensure that transfers thereof comply with the provisions of Rule 144A or
Rule 144 under the Securities Act or that such Securities are not "restricted" within the meaning of Rule 144 under the Securities Act. Upon (i) provision of such satisfactory
evidence, or (ii) notification by the Company to the Trustee and Registrar of the sale of such Security pursuant to a registration statement that is effective at the time of such sale, the
Trustee, at the written direction of the Company, shall authenticate and deliver a Security that does not bear the Legend. If the Legend is removed from the face of a Security and the Security is
subsequently held by an Affiliate of the Company, the Legend shall be reinstated. 

        Section 2.09.  Replacement Securities. If any mutilated Security is surrendered to the Trustee, or the Company and the Trustee
receive evidence to their satisfaction of the destruction, loss or theft of any Security, and there is delivered to the Company and the Trustee such security or indemnity to save each of them
harmless, then, in the absence of notice to the Company or the Trustee that such Security has been acquired by a protected purchaser (within the meaning of Section 8-303 of the
Uniform Commercial Code), the Company shall execute, and upon the Company's written request the Trustee shall authenticate and deliver, in exchange for any such mutilated Security or in lieu of any
such destroyed, lost or stolen Security, a new Security of like tenor and principal amount at maturity, bearing a number not contemporaneously outstanding. 

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

        Upon
the issuance of any new Securities under this Section, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith. 

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

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

14

 

        Section 2.10.
Outstanding Securities; Determinations of Holders' Action. Securities outstanding at any time are all the Securities
authenticated by the Trustee, except for those cancelled by it, those paid pursuant to Section 2.09, those delivered to it for cancellation pursuant to Section 2.12 and those described
in this Section 2.10 as not outstanding. A Security does not cease to be outstanding because the Company or an Affiliate thereof holds the Security; provided, however, that in determining
whether the Holders of the requisite principal amount at maturity of Securities have given or concurred in any request, demand, authorization, direction, notice, consent or waiver hereunder,
Securities owned by the Company or any other obligor upon the Securities or any Affiliate of the Company or such other obligor shall be disregarded and deemed not to be outstanding, except that, in
determining whether the Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Securities which a Responsible Officer of the
Trustee actually knows to be so owned shall be so disregarded. Subject to the foregoing, only Securities outstanding at the time of such determination shall be considered in any such determination
(including, without limitation, determinations pursuant to Articles 6 and 9). 

        If
a Security is replaced pursuant to Section 2.09, it ceases to be outstanding unless the Trustee receives proof satisfactory to it that the replaced Security is held by a
protected purchaser. 

        If
the Paying Agent holds, in accordance with this Indenture, on a Redemption Date, or on the Business Day following a Redemption Date or a Designated Event Payment Date, or on Stated
Maturity, money sufficient to pay amounts owed with respect to Securities payable on that date, then immediately after such Redemption Date, Designated Event Payment Date or Stated Maturity, as the
case may be, such Securities shall cease to be outstanding and interest, if any (including contingent interest, if any), and Special Interest, if any, on such Securities shall cease to accrue;
provided that if such Securities are to be redeemed, notice of such redemption has been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee has been made. 

        If
a Security is converted in accordance with Article 10, then from and after the time of conversion on the Conversion Date, such Security shall cease to be outstanding and
interest, if any (including contingent interest, if any), shall cease to accrue on such Security. 

        Section 2.11.
Temporary Securities. Pending the preparation of definitive Securities, the Company may execute, and upon Company
Order the Trustee shall authenticate and deliver, temporary Securities that are printed, typewritten or otherwise produced, in any authorized denomination, substantially of the tenor of the definitive
Securities in lieu of which they are issued and with such appropriate insertions, omissions, substitutions and other variations as the Officers executing such Securities may determine, as conclusively
evidenced by their execution of such Securities. 

        If
temporary Securities are issued, the Company will cause definitive Securities to be prepared without unreasonable delay. After the preparation of definitive Securities, the temporary
Securities shall be exchangeable for definitive Securities upon surrender of the temporary Securities at the office or agency of the Company designated for such purpose pursuant to
Section 2.05, without charge to the Holder. Upon surrender for cancellation of any one or more temporary Securities, the Company shall execute and the Trustee shall authenticate and deliver in
exchange therefor a like principal amount at maturity of definitive Securities of authorized denominations. Until so exchanged, the temporary Securities shall in all respects be entitled to the same
benefits under this Indenture as definitive Securities. 

        Section 2.12.
Cancellation. All Securities surrendered for payment, purchased by the Company pursuant to Article 3,
conversion, redemption or registration of transfer or exchange (other than Securities exchanged pursuant to Section 10.02) shall, if surrendered to any person other than the Trustee, be
delivered to the Trustee and shall be promptly cancelled by it. The Company may at any time deliver to the Trustee for cancellation any Securities previously authenticated and delivered hereunder that
the Company may have acquired in any manner whatsoever, and all Securities so 

15

 

delivered
shall be promptly cancelled by the Trustee. The Company may not issue new Securities to replace Securities it has paid or delivered to the Trustee for cancellation or that any Holder has
converted pursuant to Article 10. No Securities shall be authenticated in lieu of or in exchange for any Securities cancelled as provided in this Section, except as expressly permitted by this
Indenture. All cancelled Securities held by the Trustee shall be disposed of by the Trustee in accordance with the Trustee's customary procedure. 

        Section 2.13.
Persons Deemed Owners. Prior to due presentment of a Security for registration of transfer, the Company, the Trustee
and any agent of the Company or the Trustee may treat the Person in whose name such Security is registered as the owner of such Security for the purpose of receiving payment of the Accreted Value at
maturity of the Security or the payment of any Redemption Price or Designated Event Payment in respect thereof, and accrued but unpaid interest thereon, for the purpose of conversion and for all other
purposes whatsoever, whether or not such Security be overdue, and neither the Company, the Trustee nor any agent of the Company or the Trustee shall be affected by notice to the contrary. 

        Section 2.14.
Transfer Provisions. 

        (a)   A
Global Security may not be transferred, in whole or in part, to any Person other than the Depositary or a nominee or any successor thereof, and no such transfer to any
such other Person may be registered; provided that the foregoing shall not prohibit any transfer of a Security that is issued in exchange for a Global Security but is not itself a Global Security. No
transfer of a Security to any Person shall be effective under this Indenture or the Securities unless and until such Security has been registered in the name of such Person. Notwithstanding any other
provisions of this Indenture or the Securities, transfers of a Global Security, in whole or in part, shall be made only in accordance with Section 2.08 and this Section 2.14. 

        (b)   Subject
to the succeeding paragraph, every Security shall be subject to the restrictions on transfer provided in the Legend including the delivery of an opinion of
counsel, if so provided. Whenever any Restricted Security is presented or surrendered for registration of transfer or for exchange for a Security registered in a name other than that of the Holder,
such Security must be accompanied by a certificate in substantially the form set forth in Exhibit B, dated the date of such surrender and signed by the Holder of such Security, as to compliance
with such restrictions on transfer. The Registrar shall not be required to accept for such registration of transfer or exchange any Security not so accompanied by a properly completed certificate. 

        (c)   The
restrictions imposed by the Legend upon the transferability of any Security shall cease and terminate when such Security has been sold pursuant to an effective
registration statement under the Securities Act or transferred in compliance with Rule 144 under the Securities Act (or any successor provision thereto) or, if earlier, upon the expiration of
the holding period applicable to sales thereof under Rule 144(k) under the Securities Act (or any successor provision). Any Security as to which such restrictions on transfer shall have
expired in accordance with their terms or shall have terminated may, upon a surrender of such Security for exchange to the Registrar in accordance with the provisions of this Section 2.14
(accompanied, in the event that such restrictions on transfer have terminated by reason of a transfer in compliance with Rule 144 or any successor provision, by an opinion of Shearman &
Sterling LLP or any other counsel having substantial experience in practice under the Securities Act and otherwise reasonably acceptable to the Company, addressed to the Company and in form acceptable
to the Company, to the effect that the transfer of such Security has been made in compliance with Rule 144 or such successor provision), be exchanged for a new Security, of like tenor and
aggregate principal amount at maturity, which shall not bear the restrictive Legend. The Company shall inform the Trustee of the effective date of any registration statement registering the Securities
under the Securities Act. The Trustee shall not be liable for any action taken or omitted to be taken by it in good faith in accordance with the aforementioned opinion of counsel or registration
statement. 

16

   
        (d)   As used in the preceding clause (b) and (c) of this Section 2.14, the term "transfer"
encompasses any sale, pledge, transfer, hypothecation or other disposition of any Security. 

        (e)   The
following provisions shall apply only to Global Securities: 

        (i)    Notwithstanding
any other provisions of this Indenture or the Securities, a Global Security shall not be exchanged in whole or in part for a Security registered in the
name of any Person other than the Depositary or one or more nominees thereof; provided that a Global Security may be exchanged for Securities registered in the names of any person designated by the
Depositary in the event that (x) the Depositary has notified the Company that it is unwilling or unable to continue as Depositary for such Global Security or such Depositary has ceased to be a
"clearing agency" registered under the Exchange Act, and a successor Depositary is not appointed by the Company within 90 days, (y) the Company has provided the Depositary with written
notice that it has decided to discontinue use of the system of book-entry transfer through the Depositary or any successor Depositary or (z) an Event of Default has occurred and is
continuing with respect to the Securities. Any Global Security exchanged pursuant to clauses (x) or (y) above shall be so exchanged in whole and not in part, and any Global Security
exchanged pursuant to clause (z) above may be exchanged in whole or from time to time in part as directed by the Depositary. Any Security issued in exchange for a Global Security or any portion
thereof shall be a Global Security; provided that any such Security so issued that is registered in the name of a Person other than the Depositary or a nominee thereof shall not be a Global Security. 

        (ii)   Securities
issued in exchange for a Global Security or any portion thereof shall be issued in definitive, fully registered form, without interest coupons, shall have an
aggregate principal amount at maturity equal to that of such Global Security or portion thereof to be so exchanged, shall be registered in such names and be in such authorized denominations as the
Depositary shall designate and shall bear the applicable legends provided for herein. Any Global Security to be exchanged in whole shall be surrendered by the Depositary to the Trustee, as Registrar.
With regard to any Global Security to be exchanged in part, either such Global Security shall be so surrendered for exchange or, if the Trustee is acting as custodian for the Depositary or its nominee
with respect to such Global Security, the principal amount at maturity thereof shall be reduced, by an amount equal to the portion thereof to be so exchanged, by means of an appropriate adjustment
made on the records of the Trustee. Upon any such surrender or adjustment, the Trustee shall authenticate and deliver the Security issuable on such exchange to or upon the order of the Depositary or
an authorized representative thereof. 

        (iii)  Subject
to the provisions of clause (v) below, the registered Holder may grant proxies and otherwise authorize any Person, including Agent Members (as
defined below) and persons that may hold interests
through Agent Members, to take any action which a holder is entitled to take under this Indenture or the Securities. 

        (iv)  In
the event of the occurrence of any of the events specified in clause (i) above, the Company will promptly make available to the Trustee a reasonable supply of
Certificated Securities in definitive, fully registered form, without interest coupons. 

        (v)   Neither
any members of, or participants in, the Depositary (collectively, the "Agent Members") nor any other Persons on
whose behalf Agent Members may act shall have any rights under this Indenture with respect to any Global Security registered in the name of the Depositary or any nominee thereof, or under any such
Global Security, and the Depositary or such nominee, as the case may be, may be treated by the Company, the Trustee and any agent of the Company or the Trustee as the absolute owner and holder of such
Global Security for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Company, the Trustee or any agent of the Company or the Trustee from giving effect to any
written certification, proxy or other authorization furnished by the Depositary or such nominee, as the case may be, or impair, as 

17

 

between
the Depositary, its Agent Members and any other person on whose behalf an Agent Member may act, the operation of customary practices of such Persons governing the exercise of the rights of a
holder of any Security. 

        (f)    The
Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this Indenture or under
applicable law with respect to any transfer of any interest in any Security (including any transfers between or among Agent Members or beneficial owners of interests in any Global Security) other than
to require delivery of such certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required by the terms of, this Indenture, and to examine
the same to determine substantial compliance as to form with the express requirements hereof. 

        (g)   Neither
the Trustee nor any agent shall have any responsibility for any actions taken or not taken by the Depositary. 

        Section 2.15.
CUSIP Numbers. The Company will issue the Securities with one or more "CUSIP" numbers (if then generally in use),
and, if so, the Trustee shall use "CUSIP" numbers in notices of redemption as a convenience to Holders; provided that any such notice may state that no representation is made as to the correctness of
such numbers either as printed on the Securities or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Securities, and
any such redemption shall not be affected by any defect in or omission of such numbers. The Company will promptly notify the Trustee in writing of any change in the CUSIP numbers. 

ARTICLE 3

REDEMPTION  

        Section 3.01. Optional Redemption. Prior to October 15, 2008, the Company cannot redeem the
Securities. Beginning on October 15, 2008, the Company may redeem the Securities for cash in whole at any time, or in part from time to time, in accordance with the provisions of
paragraph 7 of the Securities. Any redemption shall be made pursuant to paragraph 7 of the Securities and this Article 3. 

        Section 3.02.  Notices to Trustee. If the Company elects to redeem Securities pursuant to the optional redemption provisions of
paragraph 7 of the Securities, it shall furnish to the Trustee, at least 45 days but not more than 60 days before a Redemption Date (unless a shorter period shall be satisfactory
to the Trustee), an Officers' Certificate setting forth (i) the Section of this Indenture pursuant to which the redemption shall occur, (ii) the Redemption Date, (iii) the
Accreted Value of Securities (if less than all) to be redeemed, (iv) the Redemption Price and the amount of any accrued and unpaid interest payable on the Redemption Date and (v) the
CUSIP number of the Securities being redeemed. 

        Section 3.03.  Selection of Securities to Be Redeemed. If less than all the Securities are to be redeemed, the Trustee shall select
the Securities to be redeemed by a method that complies with the requirements of the principal national securities exchange, if any, on which the Securities are listed or quoted or, if the Securities
are not so listed, on a pro rata basis by lot or by any other method that the Trustee considers fair and appropriate. The Trustee shall make the selection not more than 60 days and not less
than 30 days before the Redemption Date from Securities outstanding and not previously called for redemption. The Trustee may select for redemption a portion of the Accreted Value of any
Securities that has a denomination larger than $1,000 principal amount at maturity. Securities and portions thereof will be redeemed in the amount of $1,000 principal amount at maturity or integral
multiples of $1,000 (assuming no exercise by the Company of its right to elect to commence the accrual of cash interest on the Securities on or after October 15, 2004 and prior to
October 15, 2007). 

18

 

        Provisions
of this Indenture that apply to Securities called for redemption also apply to portions of Securities called for redemption. The Trustee shall notify the Company promptly of
the Securities or portions of Securities to be called for redemption. 

        If
any Security selected for partial redemption is converted in part after such selection, the converted portion of such Security shall be deemed (so far as possible) to be the portion
to be selected for redemption. The Securities (or portion thereof) so selected shall be deemed duly selected for redemption for all purposes hereof. Upon any redemption of less than all the
Securities, the Company and the Trustee may treat as outstanding any Securities surrendered for conversion during the period of
15 days next preceding the mailing of a notice of redemption and need not treat as outstanding any Security authenticated and delivered during such period in exchange for the unconverted
portion of any Security converted in part during such period. 

        In
the event of any redemption of less than all the Securities, the Company will not be required to (i) issue or register the transfer or exchange of any Security during a period
of 15 days next preceding the mailing of a notice of redemption for such Securities for redemption, or (ii) register the transfer or exchange of any Security so selected for redemption,
in whole or in part, except the unredeemed portion of any Security being redeemed in part, in which case the Company will execute and the Trustee will authenticate and deliver to the holder a new
Security equal in principal amount at maturity to the unredeemed portion of the Security surrendered. 

        Section 3.04.
Notice of Redemption. At least 30 days but not more than 60 days before a Redemption Date, the Company
shall mail by first class mail a notice of redemption to each Holder whose Securities are to be redeemed, at such holder's registered address. 

        The
notice shall identify the Securities to be redeemed and shall state: 

        (A)  the
Redemption Date; 

        (B)  the
Redemption Price and any accrued and unpaid interest payable on the Redemption Date; 

        (C)  if
any Security is being redeemed in part, the portion of the Accreted Value of such Security to be redeemed and that, after the Redemption Date, upon surrender of such
Security, a new Security or Securities in Accreted Value equal to the unredeemed portion will be issued in the name of the holder thereof; 

        (D)  that
Securities called for redemption must be surrendered to the Paying Agent to collect the Redemption Price and any accrued and unpaid interest, if any; 

        (E)  that
interest on Securities called for redemption and for which funds have been set apart for payment, ceases to accrue on and after the Redemption Date (unless the
Company defaults in the payment of the Redemption Price or any accrued and unpaid interest, or the Paying Agent is prohibited from making such payment pursuant to the terms of this Indenture); 

        (F)  the
aggregate Accreted Value of Securities (if less than all) that are being redeemed; 

        (G)  the
CUSIP number of the Securities (provided that any such notice may state that no representation is made as to the correctness or accuracy of the CUSIP numbers printed
in the notice or on the Securities and that reliance may be placed only on the other identification numbers printed on the Securities); 

        (H)  the
name and address of the Paying Agent; 

        (I)   that
Securities called for redemption may be converted at any time prior to the close of business on the last Trading Day immediately preceding the Redemption Date and
if not converted prior to the close of business on such date, the right of conversion will be lost; and 

19

 

        (J)   that
in the case of Securities or portions thereof called for redemption on a date that is also an Interest Payment Date, the interest due on such date shall be paid to
the person in whose name the Security is registered at the close of business on the relevant Regular Record Date. 

        The
notice, if mailed in the manner herein provided, shall be conclusively presumed to have been given, whether or not the holder receives such notice. In any case, failure to give such
notice by mail or any defect in the notice to the holder of any Security designated for redemption as a whole or in part shall not affect the validity of the proceedings for the redemption of any
Security. 

        At
the Company's request, the Trustee shall give notice of redemption in the Company's name and at the Company's expense. 

        Section 3.05.
Effect of Notice of Redemption. Once notice of redemption is mailed, Securities called for redemption become due and
payable on the Redemption Date at the Redemption Price set forth in the Security. 

        Section 3.06.
Deposit of Redemption Price. On or before 10 a.m. New York City time on the Redemption Date, the Company shall
deposit with the Trustee or with the Paying Agent money in immediately available funds sufficient to pay the Redemption Price of and accrued interest, if any, on all Securities to be redeemed on that
date. The Trustee or the Paying Agent shall return to the Company any money not required for that purpose. 

        On
and after the Redemption Date, unless the Company shall default in the payment of the Redemption Price or any accrued and unpaid interest, interest will cease to accrue on the
Accreted Value of the Securities or portions thereof called for redemption and for which funds have been set apart for payment, and such Securities, or portions thereof, shall cease after the close of
business on the Business Day immediately preceding the Redemption Date to be convertible into Common Stock and, except as provided in this Section 3.06 and Article 4 of this Indenture,
to be entitled to any benefit or security under this Indenture, and the Holders thereof shall have no right in respect of such Securities, or portions thereof, except the right to receive the
Redemption Price thereof and unpaid interest to (but excluding) the Redemption Date. In the case of Securities or portions thereof redeemed on a Redemption Date which is also an Interest Payment Date,
the interest due on such date shall be paid to the person in whose name the Security is registered at the close of business on the relevant Regular Record Date. 

        Section 3.07.
Securities Redeemed in Part. Upon surrender of a Security that is redeemed in part only, the Company shall issue and
the Trustee shall authenticate and deliver to the Holder a new Security equal in principal amount at maturity to the unredeemed portion of the Security surrendered, at the expense of the Company. 

        Section 3.08.  Conversion Arrangement on Call for Redemption. In connection with any redemption of Securities, the Company may
arrange for the purchase and conversion of any Securities by an arrangement with one or more investment bankers or other purchasers to purchase such Securities by paying to the Trustee in trust for
the holders, on or before the date fixed for redemption, an amount not less than the applicable Redemption Price, together with interest accrued to the date fixed for redemption, of such Securities.
Notwithstanding anything to the contrary contained in this Article 3, the obligation of the Company to pay the Redemption Price of such Securities, together with interest accrued to the date
fixed for redemption, shall be deemed to be satisfied and discharged to the extent such amount is so paid by the purchasers. If such an agreement is entered into, a copy shall be filed with the
Trustee prior to the date fixed for redemption. Any Securities not duly surrendered for conversion by the holders thereof may, at the option of the Company, be deemed, to the fullest extent permitted
by law, acquired by such purchasers from such holders and (notwithstanding anything to the contrary contained in Article 10) surrendered by such purchasers for conversion, all as of immediately
prior to the close of business on the date fixed for redemption (and the right to convert any such 

20

 

Securities
shall be deemed to have been extended through such time), subject to payment of the above amount as aforesaid. At the direction of the Company, the Trustee shall hold and dispose of any
such amount paid to it in the same manner as it would moneys deposited with it by the Company for the redemption of Securities. Without the Trustee's prior written consent, no arrangement between the
Company and such purchasers for the purchase and conversion of any Securities shall increase or otherwise affect any of the powers, duties, responsibilities or obligations of the Trustee as set forth
in this Indenture, and the Company agrees to indemnify the Trustee from, and defend and hold it harmless against, any loss, liability or expense arising out of or in connection with any such
arrangement for the purchase and conversion of any Securities between the Company and such purchasers to which the Trustee has not consented in writing, including the costs and expenses incurred by
the Trustee in the defense of any claim or liability arising out of or in connection with the exercise or performance of any of its powers, duties, responsibilities or obligations under this
Indenture. 

ARTICLE 4

COVENANTS  

        Section 4.01. Payment of Accreted Value and Interest. The Company covenants and agrees for the benefit of
the Holders that it will duly and punctually pay prior to noon New York City time on any date of payment the Accreted Value of and interest on the Securities in accordance with the terms of the
Securities and this Indenture. At the option of the Company, all payments of Accreted Value may be paid by check to the registered Holder of the Registered Security or other person entitled thereto
against surrender of such Security. 

        Section 4.02.
Maintenance of Office or Agency. The Company shall maintain in each Place of Payment an office or agency where the
Securities may be presented or surrendered for payment or conversion, where the Securities may be surrendered for registration of transfer or exchange and where notices and demands to or upon the
Company in respect of the Securities and this Indenture may be served. The Company will give prompt written notice to the Trustee of the location, and any change in the location, of each such office
or agency. If at any time the Company shall fail to maintain any such required
office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee. 

        The
Company may from time to time designate one or more other offices or agencies where the Securities may be presented or surrendered for any or all of such purposes, and may from time
to time rescind such designations; provided, however, that no such designation or rescission shall in
any manner relieve the Company of its obligation to maintain an office or agency in accordance with the requirements set forth above for the Securities. The Company will give prompt written notice to
the Trustee of any such designation or rescission and of any change in the location of any such other office or agency. The Company hereby designates as a Place of Payment for the Securities the
office or agency of the Company in the Borough of Manhattan, The City of New York, and initially appoints the Trustee at its Corporate Trust Office as Paying Agent in such city and as its agent to
receive all such presentations, surrenders, notices and demands. 

        Section 4.03.
Money for Securities Payments to Be Held in Trust. If the Company shall at any time act as its own Paying Agent with
respect to the Securities, it will, on or before each due date of the Accreted Value of, or interest on the Securities, segregate and hold in trust for the benefit of the Persons entitled thereto a
sum sufficient to pay the Accreted Value or interest so becoming due until such sums shall be paid to such Persons or otherwise disposed of as herein provided, and will promptly notify the Trustee of
its action or failure so to act. 

        Whenever
the Company shall have one or more Paying Agents for the Securities, it will, on or before each due date of the Accreted Value, or interest on the Securities, deposit with a
Paying Agent 

21

 

a
sum sufficient to pay the Accreted Value or interest so becoming due, such sum to be held in trust for the benefit of the Persons entitled to such Accreted Value or interest and (unless such Paying
Agent is the Trustee) the Company will promptly notify the Trustee of its action or failure so to act. 

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

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

        (ii)   give
the Trustee written notice of any default by the Company (or any other obligor upon the Securities) in the making of any such payment of Accreted Value or
interest; and 

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

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

        Except
as otherwise provided in the Securities, any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the Accreted Value of
or interest on any Security and remaining unclaimed for two years after such Accreted Value, or interest has become due and payable shall be paid to the Company upon Company Request or (if then
held by the Company) shall be discharged from such trust; and the Holder of such Security shall thereafter, as an unsecured general creditor, look only to the Company for payment of such Accreted
Value of or interest on any Security, without interest thereon, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before being
required to make any such repayment, shall at the expense of the Company cause notice to be mailed to the Holders or published once in an Authorized Newspaper to the effect that such money remains
unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such mailing or publication, any unclaimed balance of such money then remaining will be
repaid to the Company. 

        Section 4.04.
Statement as to Compliance. The Company will deliver to the Trustee, within 120 days after the end of each
fiscal year (which as of the date hereof is December 31), a brief certificate from the principal executive officer, principal financial officer or principal accounting officer as to his or her
knowledge of the Company's compliance with all conditions and covenants under this Indenture and, in the event of any noncompliance, specifying such noncompliance and the nature and status thereof.
For purposes of this Section 4.04, such compliance shall be determined without regard to any period of grace or requirement of notice under this Indenture. 

        Section 4.05.
Repurchase Upon Designated Event. Following a Designated Event (the date of each such occurrence being the
"Designated Event Date"), the Company shall notify the holders of Securities in writing of such occurrence and shall make an offer (the
"Designated Event Offer") to repurchase all Securities then outstanding at a repurchase price in cash (the "Designated Event
Payment") equal to 101% of the Accreted Value thereof as of the Designated Event Payment Date (as defined below), plus accrued and unpaid interest, if any, to, but excluding,
the Designated Event Payment Date. 

22

 

        Notice
of a Designated Event shall be mailed by or at the direction of the Company to the holders of Securities as shown on the Security Register of such holders maintained by the
Registrar not more than 20 days after the applicable Designated Event Date at the addresses as shown on the Security Register of holders maintained by the Registrar, with a copy to the Trustee
and the Paying Agent. The Designated Event Offer shall remain open until a specified date (the "Designated Event Offer Termination Date") which is at
least 20 Business Days from the date such notice is mailed. During the period specified in such notice, holders of Securities may elect to tender their Securities in whole or in part in integral
multiples of $1,000 principal amount at maturity in exchange for cash. Payment shall be made by the Company in respect of Securities properly tendered pursuant to this Section 4.05 on a
Business Day specified by the Company (the "Designated Event Payment Date") which shall be no later than 60 days after the applicable Designated
Event. 

        The
notice, which shall govern the terms of the Designated Event Offer, shall include such disclosures as are required by law and shall state: 

        (a)   that
any Security not accepted for payment will continue to accrue interest in accordance with the terms thereof; 

        (b)   that
a Designated Event Offer is being made pursuant to this Section 4.05 and that all Securities properly tendered and not withdrawn will be accepted for
payment; 

        (c)   the
event, transaction or transactions that constitute the Designated Event; 

        (d)   the
Designated Event Payment for each Security, the Designated Event Offer Termination Date and the Designated Event Payment Date; 

        (e)   that,
unless the Company defaults on making the Designated Event Payment, any Security accepted for payment pursuant to the Designated Event Offer shall cease to accrue
interest on the Designated Event Payment Date and no further interest shall accrue on or after such date; 

        (f)    that
holders electing to have Securities repurchased pursuant to a Designated Event Offer will be required to surrender their Securities to the Paying Agent at the
address specified in the notice prior to 5:00 p.m., New York City time, on the Designated Event Offer Termination Date and must complete any form letter of transmittal proposed by the Company
and acceptable to the Trustee and the Paying Agent; 

        (g)   that
holders of Securities will be entitled to withdraw their election if the Paying Agent receives, not later than 5:00 p.m., New York City time, on the
Designated Event Offer Termination Date, a facsimile transmission or letter setting forth the name of the holder, the principal amount at maturity of Securities the holder delivered for purchase, the
principal amount at maturity of Securities the holder is withdrawing from his election (if less than the full election), the Security certificate number (if any) and a statement that such holder is
withdrawing his election to have such Securities purchased; 

        (h)   that
holders whose Securities are repurchased only in part will be issued Securities equal in principal amount at maturity to the unpurchased portion of the Securities
surrendered; 

        (i)    the
instructions that holders must follow in order to tender their Securities; and 

        (j)    that
in the case of a Designated Event Payment Date that is also an Interest Payment Date, the interest due on such date shall be paid to the person in whose name the
Security is registered at the close of business on the relevant Designated Event Offer Termination Date. 

23

   
        On the Designated Event Offer Termination Date, the Company shall (i) accept for payment all Securities or portions thereof properly tendered pursuant to the Designated Event
Offer, (ii) deposit with the Paying Agent money sufficient to pay the Designated Event Payment with respect to all Securities or portions thereof so tendered and accepted and
(iii) deliver or cause to be delivered to the Trustee the Securities so accepted together with an Officers' Certificate setting forth the aggregate principal amount at maturity of Securities or
portions thereof tendered to and accepted for payment by the Company. On the Designated Event Payment Date, the Paying Agent shall deliver the Designated Event Payment to the holders of Securities so
accepted and the Trustee shall promptly authenticate and deliver or cause to be transferred by book entry to such holders a new Security equal in principal amount at maturity to any unpurchased
portion of the Security surrendered, if any; provided, however, that such new Securities will be in a
principal amount at maturity of $1,000 or an integral multiple thereof. Any Securities not so accepted shall be promptly mailed or delivered by the Company to the holder thereof. 

        In
the case of any reclassification, change, consolidation, merger, share exchange, combination or sale or conveyance to which this Section 4.05 applies in which the Common Stock
of the Company is changed or exchanged as a result into the right to receive stock, securities or other property or assets (including cash) which includes shares of common stock of the Company or
another person that are, or upon issuance will be, traded on a United States national securities exchange or approved for trading on an established automated over-the-counter
trading market in the United States and such shares constitute at the time such change or exchange becomes effective in excess of 50% of the aggregate Fair Market Value of such stock, securities,
other property and assets (including cash) (as determined by the Company, which determination shall be conclusive and binding), then the person formed by such consolidation or resulting from such
merger or share exchange or which acquires such assets, as the case may be, shall execute and deliver to the Trustee a supplemental indenture (which shall comply with the TIA as in force at the date
of execution of such supplemental indenture) modifying the provisions of this Indenture relating to the right of holders of Securities to cause the Company to repurchase Securities following a
Designated Event, including the applicable provisions of this Section 4.05 and the definitions of Designated Event, Change of Control and Termination of Trading, as appropriate, as determined
in good faith by the Company (which determination shall be conclusive and binding), to make such provision apply to such common stock and the issuer thereof if different from the Company and Common
Stock of the Company (in lieu of the Company and the Common Stock of the Company). 

        The
Designated Event Offer shall be made by the Company in compliance with all applicable provisions of the Exchange Act, and all applicable tender offer rules promulgated thereunder, to
the extent such laws and regulations are then applicable and shall include all instructions and materials that the Company shall reasonably deem necessary to enable such holders of Securities to
tender their Securities. 

        Section 4.06.
Limitation on Liens. The Company will not, directly or indirectly, incur or suffer to exist any Lien (other than
existing Liens) securing Specified Indebtedness of any nature whatsoever on any of its properties or assets, whether owned at the issue date of the Securities or thereafter acquired, without making
effective provision for securing the Securities equally and ratably with (or, if the obligation to be secured by the Lien is subordinated in right of payment to the Securities, prior to) the
obligations so secured for so long as such obligations are so secured. The Lien, if granted, to secure the Securities may also secure obligations in addition to Specified Indebtedness. Any Lien
created to secure the Securities pursuant to this Section 4.06 may provide by its terms that such Lien will be automatically and unconditionally released and discharged upon the full and
unconditional release and discharge of the Lien securing the Specified Indebtedness and that the holders of some or all of such Specified Indebtedness may exclusively control the disposition of
property subject to such Lien. 

24

 

        The
foregoing restrictions in this Section 4.06 shall not apply to (a) Liens to secure Acquired Debt; provided,  however, that (i) such Lien
attaches to the acquired property prior to the time of the acquisition of such property and (ii) such Lien
does not extend to or cover any other property; and (b) Liens to secure indebtedness incurred to refinance, in whole or in part, debt secured by any Lien referred to in the foregoing
clause (a) or this clause (b) so long as such Lien does not extend to any other property (other than improvements and accessions to the original property) and the principal
amount of indebtedness so secured is not increased. 

        Section 4.07.
Special Interest Notice. In the event that the Company is required to pay Special Interest to Holders, the Company
will provide written notice ("Special Interest Notice") to the Trustee of its obligation to pay Special Interest no later than fifteen days prior
to the proposed payment date for the Special Interest, and the Special Interest Notice shall set forth the amount of Special Interest to be paid by the Company on such payment date. The Trustee shall
not at any time be under any duty or responsibility to any Holders to determine the Special Interest, or with respect to the nature, extent, or calculation of the amount of Special Interest owed, or
with respect to the method employed in such calculation of the Special Interest. 

        Section 4.08.
Calculation of Original Issue Discount. The Company shall file with the Trustee promptly at the end of each calendar
year (i) a written notice specifying the amount of original issue discount (including daily rates and accrual periods) accrued on Outstanding Securities as of the end of such year and
(ii) such other specific information relating to such original issue discount as may then be relevant under the Internal Revenue Code of 1986, as amended from time to time. 

ARTICLE 5

CONSOLIDATION, MERGER, SALE, LEASE OR CONVEYANCE  

        Section 5.01. When the Company May Merge, Etc. The Company may not, in a single transaction or
series of related transactions, consolidate or merge with or into or effect a share exchange with (whether or not the Company is the surviving corporation), or sell, assign, transfer, lease, convey or
otherwise dispose of all or substantially all of its properties or assets as an entirety or substantially as an entirety to, any Person unless: 

        (a)   either 

        (i)    the
Company shall be the surviving or continuing corporation, or 

        (ii)   the
Person formed by or surviving any such consolidation, merger or share exchange (if other than the Company) or the Person which acquires by sale, assignment,
transfer, lease, conveyance or other disposition the properties and assets of the Company substantially as an entirety: 

        (1)   shall
be a corporation organized and validly existing under the laws of the United States or any State thereof or the District of Columbia and 

        (2)   shall
expressly assume, by supplemental indenture in form reasonably satisfactory to the Trustee, executed and delivered to the Trustee, the due and punctual payment of
the Accreted Value of and interest on all of the Securities and the performance of every covenant of the Securities and this Indenture on the part of the Company to be performed or observed,
including, without limitation, modifications to rights of holders to cause the repurchase of Securities upon a Designated Event in accordance with the penultimate paragraph of Section 4.05 and
conversion rights in accordance with Article 10 to the extent required by such Sections; 

        (b)   immediately
after giving effect to such transaction no Default and no Event of Default shall have occurred and be continuing; and 

25

 

        (c)   the
Company or such successor Person shall have delivered to the Trustee an Officers' Certificate and an Opinion of Counsel each stating that such consolidation, merger,
share exchange, conveyance, transfer or lease and, if a supplemental indenture is required in connection with such transaction, such supplemental indenture, comply with this provision of this
Indenture and that all conditions precedent in this Indenture relating to such transaction have been satisfied. 

        For
purposes of this Section 5.01, the transfer (by lease, assignment, sale or otherwise, in a single transaction or series of transactions) of all or substantially all of the
properties or assets of one or more Subsidiaries of the Company, the Capital Stock of which individually or in the aggregate constitutes all or substantially all of the properties and assets of the
Company, shall be deemed to be the transfer of all or substantially all of the properties and assets of the Company. 

        Section 5.02.
Successor Corporation Substituted. Upon any such consolidation, merger, share exchange, sale, assignment, conveyance,
lease, transfer or other disposition in accordance with Section 5.01, the successor Person formed by such consolidation or share exchange or into which the Company is merged or to which such
sale, assignment, conveyance, lease, transfer or other disposition is made will succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with the
same effect as if such successor had been named as the Company herein, and thereafter (except in the case of a lease) the predecessor corporation will be relieved of all further obligations and
covenants under this Indenture and the Securities. 

        Section 5.03.
Purchase Option on Change of Control. This Article Five does not affect the obligations of the Company (including
without limitation any successor to the Company) under Section 4.05. 

ARTICLE 6

EVENTS OF DEFAULT  

        Section 6.01. Events of Default. An "Event of Default" with respect to the Securities occurs if: 

        (a)   the
Company defaults in the payment of Accreted Value of the Securities when due at maturity, upon repurchase, upon acceleration or otherwise, including, without
limitation, failure of the Company to make any optional redemption payment when required pursuant to Article 3 of the Indenture; or 

        (b)   the
Company defaults in the payment of any installment of interest on the Securities when due (including any interest payable in connection with a repurchase pursuant to
Section 4.05 or in connection with any optional redemption payment pursuant to Article 3 of the Indenture) and continuance of such default for 30 days or more; or 

        (c)   the
Company defaults in the payment of the Designated Event Payment in respect of the Securities on the date therefor; or 

        (d)   the
Company fails to provide timely notice of any Designated Event in accordance with Section 4.05; or 

        (e)   the
Company defaults (other than a default set forth in clause (a), (b), (c) or (d) above) in the performance of, or breaches, any other covenant or
warranty of the Company set forth in this Indenture or the Securities and fails to remedy such default or breach within a period of 60 days after the receipt of written notice (specifying such
default or breach and requiring it to be remedied and stating that such notice is a "Notice of Default" hereunder) from the Trustee or the holders of at least 25% in aggregate principal amount at
maturity of the then outstanding Securities; or 

        (f)    a
default under any credit agreement, mortgage, indenture or instrument under which there may be issued or by which there may be secured or evidenced any indebtedness
for money borrowed by the Company or any Material Subsidiary (or the payment of which is guaranteed or secured by the 

26

 

Company
or any of its Material Subsidiaries), whether such indebtedness or guarantee exists on the date of this Indenture or is created thereafter, which default (i) is caused by a failure to
pay when due any principal of such indebtedness within the grace period provided for in such indebtedness, which failure continues beyond any applicable grace period (a
"Payment Default"), or (ii) results in the acceleration of such indebtedness prior to its express maturity (without such acceleration being
rescinded or annulled) and, in each case, the principal amount, or principal amount at maturity, as applicable, of such indebtedness, together with the principal amount, or principal amount at
maturity, as applicable, of any other such indebtedness under which there is a Payment Default or the maturity of which has been so accelerated, aggregates $25,000,000 or its foreign currency
equivalent or more and such Payment Default is not cured or such acceleration is not annulled within 10 days after receipt of written notice (specifying such default and requiring the Company
to cause such Payment Default to be cured or cause such acceleration to be rescinded or annulled and stating that such notice is a "Notice of Default" hereunder) by the Company from the Trustee or by
the Company and the Trustee from any holder of Securities; or 

        (g)   failure
to pay a final, nonappealable judgment or final, nonappealable judgments (other than any judgment as to which a reputable insurance company has accepted full
liability) for the payment of money entered by a court or courts of competent jurisdiction against the Company or any Material Subsidiaries of the Company, which judgments remain unstayed, unbonded or
undischarged for a period of 60 days, provided that the aggregate amount of all such judgments exceeds $25,000,000 or its foreign currency
equivalent; or 

        (h)   the
Company or any Material Subsidiary, pursuant to or within the meaning of any Bankruptcy Law: 

        (i)    commences
a voluntary case, 

        (ii)   consents
to the entry of an order for relief against it in an involuntary case, 

        (iii)  consents
to the appointment of a Custodian of it or for all or substantially all of its property, 

        (iv)  makes
a general assignment for the benefit of its creditors, or 

        (v)   makes
the admission in writing that it generally is unable to pay its debts as the same become due; or 

        (i)    a
court of competent jurisdiction enters a judgment, order or decree under any Bankruptcy Law that: 

        (i)    is
for relief against the Company or any Material Subsidiary in an involuntary case, and the order or decree remains unstayed and in effect for 90 days, 

        (ii)   appoints
a Custodian of the Company or any Material Subsidiary, and the order or decree remains unstayed and in effect for 90 days, or 

        (iii)  orders
the liquidation of the Company or any Material Subsidiary, and the order or decree remains unstayed and in effect for 90 days. 

        The
term "Bankruptcy Law" means Title 11, U.S. Code or any similar Federal or state law for the relief of debtors. The term "Custodian" means any receiver, trustee, assignee,
liquidator or similar official under any Bankruptcy Law. 

        Section 6.02.
Acceleration. If an Event of Default (other than an Event of Default with respect to the Company specified in clauses
(h) and (i) of Section 6.01) occurs and is continuing, then and in every such case the Trustee, by written notice to the Company, or the holders of at least 25% in aggregate
principal amount at maturity of the then outstanding Securities, by written notice to the 

27

 

Company
and the Trustee, may declare the then Accreted Value of and accrued and unpaid interest on, all the Securities to be due and payable. Upon such declaration, such Accreted Value, and accrued
and unpaid interest shall become immediately due and payable, notwithstanding anything contained in this Indenture or the Securities to the contrary. If any Event of Default with respect to the
Company specified in clause (h) or (i) of Section 6.01 occurs, all Accreted Value of, and accrued and unpaid interest on, the Securities then outstanding shall become
automatically due and payable, without any declaration or other act on the part of the Trustee or any holder of Securities. 

        The
holders of a majority in aggregate principal amount at maturity of the then outstanding Securities by notice to the Trustee may rescind an acceleration of the Securities and its
consequences if all existing Events of Default (other than nonpayment of Accreted Value of, and interest on, the Securities which has become due solely by virtue of such acceleration) have been cured
or waived and if the rescission would not conflict with any judgment or decree of any court of competent jurisdiction. No such rescission shall affect any subsequent Default or Event of Default or
impair any right consequent thereto. 

        Section 6.03.
Other Remedies. If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy by
proceeding at law or in equity to collect the payment of Accreted Value of or interest on the Securities or to enforce the performance of any provision of the Securities or this Indenture. The Trustee
may maintain a proceeding even if it does not possess any of the Securities or does not produce any of them in the proceeding. A delay or omission by the Trustee or any Holder in exercising any right
or remedy occurring upon an Event of Default shall not impair the right or remedy or constitute a waiver of or acquiescence in the Event of Default. All remedies are cumulative to the extent permitted
by law. 

        Section 6.04.
Waiver of Past Defaults. The holders of a majority in aggregate principal amount at maturity of the Securities then
outstanding may, on behalf of the holders of all the Securities, waive an existing Default or Event of Default and its consequences, except a Default or Event of Default in the payment of the Accreted
Value of, or interest on, the Securities (other than the non-payment of Accreted Value of, and interest on, the Securities which has become due solely by virtue of an acceleration which
has been duly rescinded as provided above), or in respect of a covenant or provision of this Indenture which cannot be modified or amended without the consent of all holders of Securities. When a
Default or Event of Default is waived, it is cured and stops continuing. No waiver shall extend to any subsequent or other Default or Event of Default or impair any right consequent thereon. 

        Section 6.05.
Control by Majority. The holders of a majority in aggregate principal amount at maturity of the then outstanding
Securities may direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on it. However, the Trustee may refuse
to follow any direction that conflicts with law or this Indenture that the Trustee determines may be unduly prejudicial to the rights of other holders of Securities or that may involve the Trustee in
personal liability; provided, however, that the Trustee shall have no duty or obligation (subject to
Section 7.01) to ascertain whether or not such actions or forbearances are unduly prejudicial to such holders; provided further,  however, that the
Trustee may take any other action the Trustee deems proper that is not inconsistent with such directions. 

        Section 6.06.  Limitation on Suits. A Holder may not pursue any remedy with respect to this Indenture or the Securities unless:

        (a)   the
Holder gives to the Trustee notice of a continuing Event of Default; 

        (b)   the
Holders of at least 25% in aggregate principal amount at maturity of the then outstanding Securities make a written request to the Trustee to pursue the remedy; 

28

 

        (c)   such
Holder or Holders offer and, if requested, provide to the Trustee indemnity satisfactory to the Trustee against any loss, liability or expense; 

        (d)   the
Trustee does not comply with the request within 30 days after receipt of the request and the offer and, if requested, the provision of indemnity; and 

        (e)   during
such 30-day period the holders of a majority in aggregate principal amount at maturity of the then outstanding Securities do not give the Trustee a
direction inconsistent with the request. 

        A
Holder may not use this Indenture to prejudice the rights of another Holder or to obtain a preference or priority over another holder. 

        Section 6.07.
Rights of Holders to Receive Payment. Notwithstanding any other provision of this Indenture, the right of any Holder
to receive payment of Accreted Value, and interest on the Security,
on or after the respective due dates expressed in the Security, or to bring suit for the enforcement of any such payment on or after such respective dates, or to bring suit for the enforcement of the
right to convert the Security shall not be impaired or affected without the consent of the Holder. 

        Section 6.08.  Collection Suit by Trustee. If an Event of Default specified in Section 6.01(a), (b) or
(c) occurs and is continuing, the Trustee may recover judgment in its own name and as trustee of an express trust against the Company for the whole amount of Accreted Value of and interest
remaining unpaid on the Securities and interest on overdue principal and interest and such further amount as shall be sufficient to cover the costs and, to the extent lawful, expenses of collection,
including the compensation, expenses, disbursements and advances of the Trustee, its agents and counsel. 

        Section 6.09.
Trustee May File Proofs of Claim. The Trustee may file such proofs of claim and other papers or documents as
may be necessary or advisable in order to have the claims of the Trustee and the holders of Securities allowed in any judicial proceedings relative to the Company, its creditors or its property.
Nothing contained herein shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or
composition affecting the Securities or the rights of any holder thereof, or to authorize the Trustee to vote in respect of the claim of any holder in any such proceeding. 

        Section 6.10.
Priorities. Any money collected by the Trustee pursuant to this Article shall be applied in the following
order, at the date or dates fixed by the Trustee and, in case of the distribution of such money on account of Accreted Value or interest, upon presentation of the Securities and the notation thereon
of the payment if only partially paid and upon surrender thereof if fully paid: 

        FIRST:
To the payment of all amounts due the Trustee and any predecessor Trustee under Section 7.07. 

        SECOND:
To the payment of the amounts then due and unpaid upon the Securities for Accreted Value and interest, in respect of which or for the benefit of which such money has been
collected, ratably, without preference or priority of any kind, according to the aggregate amounts due and payable on such Securities for Accreted Value and interest, respectively; and 

        THIRD:
To the payment of the remainder, if any, to the Company. 

        Section 6.11.
Undertaking for Costs. In any suit for the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as a Trustee, a court in its discretion may require the filing by any party litigant in the suit, other than the Trustee, of an undertaking to
pay the costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys fees and expenses, against any party litigant in the suit, having due regard to
the merits and good faith of the claims or defenses made by the party litigant. This Section does not apply to a suit by the Trustee, a suit by a holder pursuant to Section 6.07 or a
suit by holders of more than 10% in aggregate principal amount at maturity of the then outstanding Securities. 

29

 

        Section 6.12.  Notice of Default or Event of Default. The Company shall deliver to the Trustee, as soon as reasonably practicable
and in any event within 30 days after an executive officer of the Company becomes aware of the occurrence of any Event of Default or any event which, with notice or the lapse of time or both,
would constitute an Event of Default, an Officers' Certificate setting forth the details of such Event of Default or Default and the action which the Company proposes to take with respect thereto. 

ARTICLE 7

TRUSTEE  

        Section 7.01. Duties of Trustee. 

        (a)   If
an Event of Default has occurred and is continuing, the Trustee shall exercise the rights and powers vested in it by this Indenture and use the same degree of care
and skill in its exercise as a prudent person would exercise or use under the circumstances in the conduct of such person's own affairs. 

        (b)   Except
during the continuance of an Event of Default: 

        (i)    the
Trustee need perform only those duties that are specifically set forth in this Indenture and no implied covenants or obligations shall be read into this Indenture
against the Trustee; and 

        (ii)   in
the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein,
upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture, but in case of any such
certificates or opinions which by any provision hereof are specifically required to be furnished to the Trustee, the Trustee shall examine the certificates and opinions to determine whether or not
they conform to the requirements of this Indenture, but need not confirm or investigate the accuracy of mathematical calculations or other facts stated therein. 

        This
Section 7.01(b) shall be in lieu of Section 315(a) of the TIA and such Section 315(a) is hereby expressly excluded from this Indenture, as
permitted by the TIA. 

        (c)   The
Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act or its own willful misconduct, except that: 

        (i)    this
paragraph (c) does not limit the effect of paragraph (b) of this Section 7.01; 

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

        (iii)  the
Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to
Section 6.05. 

Section 7.01(c)(i),
(ii) and (iii) shall be in lieu of Sections 315(d)(1), 315(d)(2) and 315(d)(3) of the TIA and such Sections 315(d)(1), 315(d)(2)
and 315(d)(3) are hereby expressly excluded from this Indenture, as permitted by the TIA. 

        (d)   The
Trustee may refuse to perform any duty or exercise any right or power or expend or risk its own funds or otherwise incur any financial liability unless it receives
indemnity satisfactory to it against any loss, liability or expense. 

        Section 7.02.
Rights of Trustee. Subject to its duties and responsibilities under the TIA, 

        (a)   the
Trustee may conclusively rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document 

30

 

reasonably
believed by it to be genuine and to have been signed or presented by the proper party or parties; 

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

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

        (d)   the
Trustee shall not be liable for any action taken, suffered, or omitted to be taken by it in good faith which it reasonably believes to be authorized or within its
rights or powers conferred under this Indenture; 

        (e)   the
Trustee may consult with counsel selected by it and any advice or opinion of such counsel shall be full and complete authorization and protection in respect of any
action taken or suffered or omitted by it hereunder in good faith and in accordance with such advice or opinion of such counsel; 

        (f)    the
Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request, order or direction of any of the Holders,
pursuant to the provisions of this Indenture, unless such Holders shall have offered to the Trustee security or indemnity reasonably satisfactory to it against the costs, expenses and liabilities
which may be incurred therein or thereby; 

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

        (h)   the
Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation
into such facts or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled, during normal business hours, to examine
the books, records and premises of the Company, personally or by agent or attorney at the sole cost of the Company and shall incur no liability or additional liability of any kind by reason of such
inquiry or investigation; 

        (i)    the
Trustee shall not be deemed to have notice of any Default or Event of Default unless a Responsible Officer of the Trustee has actual knowledge thereof or unless
written notice of any event which is in fact such a Default is received by the Trustee at the Corporate Trust Office of the Trustee, and such notice references the Securities and this Indenture; 

        (j)    the
rights, privileges, protections, immunities and benefits given to the Trustee, including its right to be indemnified, are extended to, and shall be enforceable by,
the Trustee in each of its capacities hereunder, and to each agent, custodian and other Person employed to act hereunder; 

        (k)   the
Trustee may request that the Company deliver an Officers' Certificate setting forth the names of individuals and/or titles of officers authorized at such time to
take specified actions pursuant to this Indenture, which Officers' Certificate may be signed by any person authorized to sign an Officers' Certificate, including any person specified as so authorized
in any such certificate previously delivered and not superseded; and 

31

 

        (l)    In
no event shall the Trustee be liable for special, indirect or consequential loss or damage of any kind whatsoever (including but no limited to lost profits), even if
the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action. 

        Section 7.03.  Individual Rights of Trustee. The Trustee in its individual or any other capacity may become the owner or pledgee of
Securities and may otherwise deal with the Company or its Affiliates with the same rights it would have if it were not Trustee. Any Paying Agent, Registrar, Conversion Agent or
co-registrar may do the same with like rights. However, the Trustee must comply with Sections 7.10 and 7.11. 

32

   
        Section 7.04. Trustee's Disclaimer. The Trustee makes no representation as to the validity or adequacy of this Indenture or the
Securities, shall not be accountable for the Company's use or application of the proceeds from the Securities, and shall not be responsible for any statement in any registration statement for the
Securities under the Securities Act or in any offering document for the Securities, the Indenture or the Securities (other than its certificate of authentication), or the determination as to which
beneficial owners are entitled to receive any notices hereunder. 

        Section 7.05.
Notice of Defaults. If a Default occurs and if it is known to the Trustee, the Trustee shall give to each
Securityholder notice of all current Defaults known to it within 90 days after any such Default occurs or, if later, within 15 days after it is known to the Trustee, unless such Default
shall have been cured or waived before the giving of such notice. Notwithstanding the preceding sentence, except in the case of a Default described in Sections 6.01(a) and 6.01(b), the
Trustee may withhold the notice if and so long as a committee of its Responsible Officers in good faith determines that withholding the notice is in the interests of Holders. The second sentence of
this Section 7.05 shall be in lieu of the proviso to Section 315(b) of the TIA and such proviso is hereby expressly excluded from this Indenture, as permitted by the TIA. 

        Section 7.06.
Reports by Trustee to Holders. Within 60 days after each May 15 beginning with the May 15
following the date of this Indenture, the Trustee shall mail to each Securityholder a brief report dated as of such May 15 that complies with TIA Section 313(a), if required by such
Section 313(a). The Trustee also shall comply with TIA Section 313(b). 

        A
copy of each report at the time of its mailing to Holders shall be filed with the SEC and each securities exchange, if any, on which the Securities are listed. The Company agrees to
notify the Trustee promptly whenever the securities become listed on any Securities exchange and of any delisting thereof. 

        Section 7.07.
Reports by Company. The Company will file with the Trustee and the SEC, and transmit to Holders, such information,
documents, and other reports, and such summaries thereof, as may be required pursuant to the TIA (or, if the Company is not subject to the TIA, such information, documents, and other reports, and
summaries thereof as would be required if the Company were subject to the TIA) at the times and in the manner provided pursuant to the TIA; provided
that any such information, documents, or reports required to be filed with the SEC pursuant to Section 13 or 15(d) of the Exchange Act will be filed with the Trustee within 15
calendar days after the same is so required to be filed with the SEC. 

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

        Section 7.08.  Compensation and Indemnity. The Company agrees: 

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

        (b)   to
reimburse the Trustee upon its request for all reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with any provision of
this Indenture or any documents executed in connection herewith (including the compensation and the expenses, advances and disbursements of its agents and counsel), except any such expense,
disbursement or advance as may be attributable to its negligence, bad faith or willful misconduct; and 

32

 

        (c)   to
indemnify each of the Trustee and any predecessor Trustee and their agents, officers, directors and employees for, and to hold them harmless against, any and all
loss, damage, claim, liability, cost or expense (including attorneys' fees and expenses and taxes (other than taxes based upon, measured by or determined by the income of the Trustee)) incurred
without negligence, misconduct or bad faith on its part, arising out of or in connection with the acceptance or administration of this trust, including the costs and expenses of defending itself
against any claim (whether asserted by the Company or any Holder or any other Person) or liability in connection with the exercise or performance of any of its powers or duties hereunder. 

        To
secure the Company's payment obligations in this Section 7.07, the Trustee shall have a lien prior to the Securities on all money or property held or collected by the Trustee,
except that held in trust to pay interest installments (including contingent interest, if any), Special Interest, if any, the Accreted Value, Redemption Price, Designated Event Payment or interest, if
any, due on overdue amounts, as the case may be, in respect of any particular Securities. 

        The
Company's payment obligations pursuant to this Section 7.07 shall survive the discharge of this Indenture or the earlier termination or resignation of the Trustee. When the
Trustee incurs expenses after the occurrence of a Default specified in Section 6.01(f) or Section 6.01(g), the expenses, including
the reasonable charges and expenses of its counsel, are intended to constitute expenses of administration under any bankruptcy law. 

        Section 7.09.  Replacement of Trustee. The Trustee may resign by so notifying the Company; provided, however, that no such
resignation shall be effective until a successor Trustee has accepted its appointment pursuant to this Section 7.08. The Holders of a majority in aggregate principal amount at maturity of the
Securities at the time outstanding may remove the Trustee by so notifying the Trustee and the Company. The Company shall remove the Trustee if: 

        (a)   the
Trustee fails to comply with Section 7.10; 

        (b)   the
Trustee is adjudged bankrupt or insolvent; 

        (c)   a
receiver or public officer takes charge of the Trustee or its property; or 

        (d)   the
Trustee otherwise becomes incapable of acting. 

        If
the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the Company shall promptly appoint, by resolution of its Board of Directors, a
successor Trustee. 

        A
successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company satisfactory in form and substance to the retiring Trustee and the
Company. Thereupon the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee under this
Indenture. The successor Trustee shall mail a notice of its succession to Holders. The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee, subject to
the lien provided for in Section 7.07. 

        If
a successor Trustee does not take office within 30 days after the retiring Trustee gives its notice of resignation or is removed, the retiring Trustee, the Company or the
Holders of a majority in aggregate principal amount at maturity of the Securities at the time outstanding may petition any court of competent jurisdiction at the expense of the Company for the
appointment of a successor Trustee. 

        If
the Trustee fails to comply with Section 7.10, any Securityholder may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a
successor Trustee. 

        Section 7.10.
Successor Trustee by Merger. If the Trustee consolidates with, merges or converts into, or transfers all or
substantially all its corporate trust business or assets (including the administration of the trust created by this Indenture) to, another corporation, the resulting, surviving or transferee
corporation without any further act shall be the successor Trustee. 

33

 

        Section 7.11.
Eligibility; Disqualification. The Trustee shall at all times satisfy the requirements of TIA
Section 310(a)(1). The Trustee (or its parent holding company) shall have a combined capital and surplus of at least $50,000,000 as set forth in its most recent published annual report of
condition. Nothing herein contained shall prevent the Trustee from filing with the SEC the application referred to in the penultimate paragraph of TIA Section 310(b). The Trustee shall comply
with TIA Section 310(b); provided, however, that there shall be excluded from the operation of TIA Section 310(b)(1) any indenture or indentures under which other securities or
certificates of interest or participation in other securities of the Company are outstanding if the requirements for such exclusion set forth in TIA Section 310(b)(1) are met. 

        Section 7.12.
Preferential Collection of Claims Against Company. The Trustee shall comply with TIA Section 311(a), excluding
any creditor relationship listed in TIA Section 311(b). A Trustee who has resigned or been removed shall be subject to TIA Section 311(a) to the extent indicated therein. 

        Section 7.13.
Money Held in Trust. Money held by the Trustee in trust hereunder need not be segregated from other funds except to
the extent required by law. The Trustee (acting in any capacity hereunder) shall be under no liability for interest on any money received by it hereunder unless otherwise agreed in writing with the
Company. 

ARTICLE 8

DISCHARGE OF INDENTURE  

        Section 8.01. Discharge of Liability on Securities. When (i) the Company delivers to the Trustee all
outstanding Securities (other than Securities replaced pursuant to Section 2.09) for cancellation or (ii) all outstanding Securities have become due and payable and the Company deposits
with the Trustee cash sufficient to pay all amounts due and owing on all outstanding Securities (other than Securities replaced pursuant to Section 2.09), and if in either case the Company pays
all other sums payable hereunder by the Company, then this Indenture shall, subject to Section 7.07, cease to be of further effect. The Trustee shall join in the execution of a document
prepared by the Company acknowledging satisfaction and discharge of this Indenture on demand at the cost and expense of the Company and accompanied by an Officers' Certificate and Opinion of Counsel. 

        Section 8.02.
Application of Trust Funds. Subject to the provisions of the last paragraph of Section 4.03, all money
deposited with the Trustee pursuant to Section 8.01 shall be held in trust and applied by it, in accordance with the provisions of the Securities and this Indenture, to the payment, either
directly or through any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of the principal (and premium, if any), and
any interest for whose payment such money has been deposited with or received by the Trustee, but such money need not be segregated from other funds except to the extent required by law. 

        Section 8.03.
Repayment to the Company. The Trustee and the Paying Agent shall return to the Company upon written request any money
held by them for the payment of any amount and any shares of Common Stock with respect to the Securities that remain unclaimed for two years, subject to applicable unclaimed property law. After
return to the Company, as applicable, Holders entitled to the money must look to the Company for payment as general creditors unless an applicable abandoned property law designates another person and
the Trustee and the Paying Agent shall have no further liability to the Holders with respect to such money or securities for that period commencing after the return thereof. 

34

 

ARTICLE 9

AMENDMENTS  

        Section 9.01. Without Consent of Holders. The Company and the Trustee may amend or supplement this
Indenture or the Securities without notice to or consent of any Securityholder: 

        (a)   to
comply with Article 5 or Section 10.05; 

        (b)   to
cure any ambiguity, omission, defect or inconsistency, or to make any other change that does not adversely affect the rights of any Securityholder; 

        (c)   to
evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Securities; or 

        (d)   to
comply with the provisions of the TIA, or with any requirement of the SEC arising as a result of the qualification of this Indenture under the TIA. 

        Section 9.02.
With Consent of Holders. The Company and the Trustee may amend or supplement this Indenture or the Securities without
notice to any Securityholder but with the written consent of the Holders of a majority in aggregate principal amount at maturity of the Securities then outstanding. The Holders of a majority in
aggregate principal amount at maturity of the Securities then outstanding may waive compliance by the Company with restrictive provisions of this Indenture other than as set forth in this
Section 9.02 below, and waive any past Default under this Indenture and its consequences, except a Default in the payment of amounts due in respect of any Security or in respect of a provision
which under this Indenture cannot be modified or amended without the consent of the Holder of each outstanding Security affected. 

        Subject
to Section 9.04, without the written consent of each Securityholder affected, the Company may not: 

        (a)   change
the Stated Maturity of the Accreted Value of, or any installment of interest (including contingent interest, if any), if any, on, any Security; 

        (b)   reduce
the Accreted Value of, or the rate or amount of interest (including contingent interest), if any, on, any Security, whether upon acceleration, redemption or
otherwise, or alter the manner of calculation of interest, if any, or the rate or amount of accrual thereof on any Security; 

        (c)   change
the currency for payment of Accreted Value of, or interest (including contingent interest, if any), on any Security or change any Place of Payment where the
Accreted Value of or interest on any Security is payable; 

        (d)   impair
the right to institute suit for the enforcement of any payment of any amount with respect to any Security when due; 

        (e)   adversely
affect the conversion rights provided in Article 10; 

        (f)    modify
the provisions of this Indenture requiring the Company to make an offer to repurchase Securities upon a Designated Event in a manner adverse to the Holders of the
Securities; 

        (g)   reduce
the percentage of principal amount at maturity of the outstanding Securities necessary to modify or amend this Indenture or to consent to any waiver provided for
in this Indenture; 

        (h)   waive
a Default or Event of Default in the payment of any amount with respect to any Security when due (except as provided in Section 6.02 and 6.04); 

        (i)    make
any changes in this Section 9.02; 

        (j)    make
any change in the provisions of this Indenture permitting Holders of a majority in aggregate principal amount at maturity of Securities to waive past Defaults or
Events of Default or the 

35

 

rights
of Holders to receive payments of Accreted Value of or interest on the Securities or to bring suit to enforce such payment; or 

        (k)   modify
any provision of this Indenture relating to the calculation of Accreted Value with respect to the Securities. 

        It
shall not be necessary for the consent of the Holders under this Section 9.02 to approve the particular form of any proposed amendment, supplement or waiver, but it shall be
sufficient if such consent approves the substance thereof. 

        After
an amendment under this Section 9.02 becomes effective, the Company shall mail to each Holder a notice briefly describing the amendment. Failure to mail the notice or a
defect in the notice shall not effect the validity of the amendment. 

        Section 9.03.
Compliance with Trust Indenture Act. Every supplemental indenture executed pursuant to this Article shall
comply with the TIA. 

        Section 9.04.
Revocation and Effect of Consents. Until an amendment, waiver or other action by Holders becomes effective, a consent
thereto by a Holder of a Security hereunder is a continuing consent by the Holder and every subsequent Holder of that Security or portion of the Security that evidences the same obligation as the
consenting Holder's Security, even if notation of the consent, waiver or action is not made on the Security. However, unless otherwise agreed in writing by such Holder or a predecessor Holder any such
Holder or subsequent Holder may revoke the consent, waiver or action as to such Holder's Security or portion of the Security if the Trustee receives the notice of revocation before the date the
amendment, waiver or action becomes effective. After an amendment, waiver or action becomes effective, it shall bind every Securityholder. 

        Section 9.05.
Notation on or Exchange of Securities. Securities authenticated and delivered after the execution of any supplemental
indenture pursuant to this Article 9 may, and shall if required by the Trustee, bear a notation in form approved by the Trustee as to any matter provided for in such supplemental indenture. If
the Company shall so determine, new Securities so modified as to conform, in the opinion of the Trustee and the Board of Directors of the Company, to any such supplemental indenture may be prepared
and executed by the Company and authenticated and delivered by the Trustee in exchange for outstanding Securities. 

        Section 9.06.
Trustee to Sign Supplemental Indentures. The Trustee shall sign any supplemental indenture authorized pursuant to
this Article 9 if the amendment contained therein does not adversely affect the rights, duties, liabilities or immunities of the Trustee. If it does, the Trustee may, but need not, sign such
supplemental indenture. In signing such supplemental indenture the Trustee shall receive, and (subject to the provisions of Section 7.01) shall be fully protected in relying upon, an Officers'
Certificate and an Opinion of Counsel stating that such amendment is authorized or permitted by this Indenture. 

        Section 9.07.
Effect of Supplemental Indentures. Upon the execution of any supplemental indenture under this Article 9, this
Indenture shall be modified in accordance therewith, and such supplemental indenture shall form a part of this Indenture for all purposes, and every Holder of Securities theretofore or
thereafter authenticated and delivered hereunder shall be bound thereby. 

ARTICLE 10

CONVERSIONS  

        Section 10.01. Right to Convert. Subject to and upon compliance with the provisions of this Indenture
(including Section 3.08 of this Indenture), each Holder of Securities shall have the right, at his or her option, at any time after April 24, 2004 and on or before the close of business
on the last Trading Day prior to the Stated Maturity of the Securities (except that, (a) with respect to any Security 

36

 

or
portion thereof which is called for redemption prior to such date, such right shall terminate, except as provided in Article 3, at the close of business on the last Trading Day preceding the
date fixed for redemption (unless the Company defaults in payment of the Redemption Price in which case the conversion right will terminate at the close of business on the date such default is cured)
and (b) with respect to any Security or portion thereof subject to a duly completed election for repurchase, such right shall terminate at the close of business on the Designated Event Offer
Termination Date (unless the Company defaults in the payment due upon repurchase or such holder elects to withdraw the submission of such election to repurchase in accordance with
Section 4.05)) to convert the Accreted Value of any Security held by such Holder, or any portion of a Security, into that number of fully paid and non-assessable shares of Common
Stock (as such shares shall then be constituted) obtained by dividing (i) the Accreted Value or portion thereof to be converted (a) as of such date, in the case of a Conversion Date on
or after October 15, 2007 or (b) as of the Accretion Measurement Date immediately preceding the Conversion Date (or, if the Conversion Date is an Accretion Measurement Date, as of the
Conversion Date), in the case of a Conversion Date prior to October 15, 2007 by (ii) the Conversion Price in effect at such time, by surrender of the Security so to be converted in whole
or in part in the manner provided in Section 10.02. Notwithstanding anything in this Indenture to the contrary, in no event shall a Holder convert a portion of a Security unless such portion of
the Security has a principal amount at maturity of $1,000 (assuming no exercise by the Company of its right to elect to commence the accrual of cash interest on the Securities on or after
October 15, 2004 and prior to October15, 2007) or an integral multiple thereof. A Holder of Securities is not entitled to any rights of a holder of Common Stock until such Holder of Securities
has converted his or her Securities to Common Stock, and then only to the extent such Securities are deemed to have been converted to Common Stock under this Article 10. 

        Section 10.02.
Exercise of Conversion Privilege; Issuance of Common Stock on Conversion; No Adjustment for Interest, Accretion or
Dividends. To exercise, in whole or in part, the conversion privilege with respect to any Security, the Holder of such Security shall surrender such Security, duly endorsed, at
an office or agency maintained by the Company pursuant to Section 4.02, accompanied by the funds, if any, required by the last paragraph of this Section 10.02, and shall give written
notice of conversion in the form provided on the Securities (or such other notice which is acceptable to the Company) to the office or agency that the Holder of Securities elects to convert such
Security or such portion thereof specified in said notice. Such notice shall also state the name or names (with address or addresses) in which the certificate or certificates for shares of Common
Stock which are issuable on such conversion shall be issued, and shall be accompanied by transfer taxes, if required pursuant to Section 10.06. Each such Security surrendered for conversion
shall, unless the shares issuable on conversion are to be issued in the same name as the registration of such Security, be duly endorsed by, or be accompanied by instruments of transfer in form
satisfactory to the Company duly executed by, the Holder or his or her duly authorized attorney. The Holder of such Securities will not be required to pay any tax or duty
which may be payable in respect of the issue or delivery of Common Stock on conversion, but will be required to pay any tax or duty which may be payable in respect of any transfer involved in the
issue or delivery of Common Stock in a name other than the same name as the registration of such Security. 

        As
promptly as practicable after satisfaction of the requirements for conversion set forth above, the Company shall issue and shall deliver to such holder at the office or agency
maintained by the Company for such purpose pursuant to Section 4.02, a certificate or certificates for the number of full shares of Common Stock (including any full shares as a result of
rounding fractional shares up to a full number of shares pursuant to Section 10.03) issuable upon the conversion of such Security or portion thereof in accordance with the provisions of this
Article 10 and (i) a check or cash (which payment, if any, shall be paid no later than five Business Days after satisfaction of the requirements for conversion set forth above) or
(ii) fractional shares (if not rounded up to a full number of shares pursuant to Section 10.03), in each case in respect of any fractional interest in respect of a share of Common Stock, 

37

 

pursuant
to Section 10.03. Certificates representing shares of Common Stock may have notations, legends or endorsements required by law, stock exchange rule or usage; provided that any such
notation, legend or endorsement required by usage is in a form acceptable to the Company. Certificates representing shares of Common Stock will not be issued or delivered unless all taxes and duties,
if any, payable by the holder have been paid. In case any Security of a denomination of an integral multiple greater than $1,000 is surrendered for partial conversion, and subject to
Section 2.04, the Company shall execute, and the Trustee shall authenticate and deliver to the holder of the Security so surrendered, without charge to him or her, a new Security or Securities
in authorized denominations in an aggregate Accreted Value equal to the unconverted portion of the surrendered Security. 

        Each
conversion shall be deemed to have been effected as to any such Security (or portion thereof) on the date on which the requirements set forth above in this Section 10.02 have
been satisfied as to such Security (or portion thereof), and the Person in whose name any certificate or certificates for shares of Common Stock are issuable upon such conversion shall be deemed to
have become on said date the holder of record of the shares represented thereby; provided, however, that
any such surrender on any date when the Company's stock transfer books are closed shall constitute the Person in whose name the certificates are to be issued as the record holder thereof for all
purposes on the next succeeding day on which such stock transfer books are open, but such conversion shall be at the Conversion Price in effect on the date upon which such Security is surrendered. 

        Any
Security or portion thereof surrendered for conversion during the period from the close of business on the Regular Record Date for any interest payment through the close of business
on the last Trading Day immediately preceding such Interest Payment Date shall (unless such Security or portion thereof being converted has been called for redemption on a date during the period from
the close of business on such Regular Record Date to the close of business on the last Trading Day immediately preceding the corresponding Interest Payment Date pursuant to a notice of redemption
mailed by the Company to the holders in accordance with the provisions of Section 3.04 of this Indenture) be accompanied by payment, in funds acceptable to the Company, of an amount equal to
the interest otherwise payable on such Interest Payment Date on the Accreted Value being converted; provided,  however, that such payment may be reduced by
the amount of any existing payment default in respect of such Securities. An amount equal to such payment
shall be paid by the Company on such Interest Payment Date to the holder of such Security at the close of business on such Regular Record Date. Except as provided above in this Section 10.02,
no adjustment shall be made for interest accrued or for any accretion that occurs after the applicable Accretion Measurement Date on any Security converted or for dividends on any shares issued upon
the conversion of such Security as provided in this Article 10. If any Security or portion thereof that has been called for redemption on a date during the period from the close of business on
a Regular Record Date to the close of business on the last Trading Day immediately preceding the corresponding Interest Payment Date is converted after such Regular Record Date for the payment of
interest and prior to such corresponding Interest Payment Date, interest payable on such Interest Payment Date shall be payable notwithstanding such conversion, and such interest shall be paid to the
holder of such Security on the applicable Regular Record Date. 

        Section 10.03.
Cash Payments in Lieu of Fractional Shares. If more than one Security shall be surrendered for conversion at one
time by the same holder, the number of full shares which shall be issuable upon conversion shall be computed on the basis of the aggregate Accreted Value of the Securities (or specified portions
thereof to the extent permitted hereby) so surrendered for conversion (a) as of such date, in the case of a Conversion Date on or after October 15, 2007 or (b) as of the Accretion
Measurement Date immediately preceding the Conversion Date (or, if the Conversion Date is an Accretion Measurement Date, as of the Conversion Date), in the case of a Conversion Date prior to
October 15, 2007. In respect of any fractional share of stock that otherwise would be issuable upon the conversion of any Security or Securities, the Company shall make an adjustment therefor
in cash based upon the current market price thereof or, the Company shall, at its option, (i) round such 

38

 

fraction
up to the nearest full number of shares for issuance upon conversion or (ii) if permitted by law and relevant Nasdaq or stock exchange rules, issue such fractional shares. For purposes
of this Section 10.03, the "current market price" of a share of Common Stock shall be the Closing Sale Price on the last Business Day immediately preceding the day on which the Securities (or
specified portions thereof) are deemed to have been converted. 

        Section 10.04.
Adjustment of the Conversion Price. The Conversion Price shall be adjusted from time to time by the Company as
follows: 

        (a)   In
case the Company shall hereafter pay a dividend or make a distribution to all holders of the outstanding Common Stock in shares of Common Stock, the Conversion Price
shall be reduced so that the same shall equal the price determined by multiplying the Conversion Price in effect at the opening of business on the date following the date fixed for the determination
of stockholders entitled to receive such dividend or other distribution by a fraction, 

        (i)    the
numerator of which shall be the number of shares of Common Stock outstanding at the close of business on the date fixed for such determination; and 

        (ii)   the
denominator of which shall be the sum of the number of shares of Common Stock outstanding at the close of business on the date fixed for the determination of
stockholders entitled to receive such dividend or other distribution plus the total number of shares of Common Stock constituting such dividend or other distribution, 

        such
reduction to become effective immediately after the opening of business on the day following the date fixed for such determination. For the purpose of this paragraph (a), the
number of shares of Common Stock at any time outstanding shall not include shares held in the treasury of the Company. The Company will not pay any dividend or make any distribution on shares of
Common Stock held in the treasury of the Company. If any dividend or distribution of the type described in this Section 10.04 is declared but not so paid or made, the Conversion Price shall
again be adjusted to the Conversion Price that would then be in effect if such dividend or distribution had not been declared. 

        (b)   In
case the Company shall issue rights or warrants to all holders of its outstanding shares of Common Stock entitling them to subscribe for or purchase shares of Common
Stock at a price per share less than the Current Market Price on the date fixed for determination of stockholders entitled to receive such rights or warrants, the Conversion Price shall be reduced so
that the same shall equal the price determined by multiplying the Conversion Price in effect immediately prior to the date fixed for determination of stockholders entitled to receive such rights or
warrants by a fraction, 

        (i)    the
numerator of which shall be the sum of the number of shares of Common Stock outstanding at the close of business on the date fixed for determination of stockholders
entitled to receive such rights or warrants plus the number of shares that the aggregate offering price of the total number of shares so offered would purchase at such Current Market Price, and 

        (ii)   the
denominator of which shall be the number of shares of Common Stock outstanding on the date fixed for determination of stockholders entitled to receive such rights
or warrants plus the total number of additional shares of Common Stock offered for subscription or purchase. 

        Such
adjustment shall be successively made whenever any such rights or warrants are issued, and shall become effective immediately after the opening of business on the day following the
date fixed for determination of stockholders entitled to receive such rights or warrants. To the extent that shares of Common Stock are not delivered after the expiration of such rights or warrants,
the Conversion Price shall be readjusted to the Conversion Price that would then be in effect had the adjustments made upon the issuance of such rights or warrants been made on the basis of delivery
of only the number of shares of Common Stock actually delivered. If such rights or warrants are not so issued, the Conversion Price shall again be adjusted to be the Conversion Price that would then
be in effect if such date fixed 

39

 

for
the determination of stockholders entitled to receive such rights or warrants had not been fixed. In determining whether any rights or warrants entitle the holders to subscribe for or purchase
shares of Common Stock at less than such Current Market Price, and in determining the aggregate offering price of such shares of Common Stock, there shall be taken into account any consideration
received by the Company for such rights or warrants and any amount payable on exercise or conversion thereof, the value of such consideration, if other than cash, to be determined by the Board of
Directors. 

        (c)   In
case outstanding shares of Common Stock shall be subdivided into a greater number of shares of Common Stock, the Conversion Price in effect at the opening of business
on the day following the day upon which such subdivision becomes effective shall be proportionately reduced, and conversely, in case outstanding shares of Common Stock shall be combined into a smaller
number of shares of Common Stock, the Conversion Price in effect at the opening of business on the day following the day upon which such combination becomes effective shall be proportionately
increased, such reduction or increase, as the case may be, to become effective immediately after the opening of business on the day following the day upon which such subdivision or combination becomes
effective. 

        (d)   In
case the Company shall, by dividend or otherwise, distribute to all holders of its Common Stock shares of any class of capital stock of the Company or evidences of
its indebtedness or assets, including cash and securities (any such distribution, a "Distribution";  provided, however, that the term "Distribution" shall not include, and this
Section 10.04(d) shall not apply to, (x) any rights or warrants referred to in Section 10.04(b) and (y) any dividend or distribution referred to in
Section 10.04(a)), then, in each such case (unless the Company elects to reserve such Distribution for distribution to the Holders upon the conversion of the Securities so that any such Holder
converting Securities will receive upon such conversion, in addition to the shares of Common Stock to which such holder is entitled, the amount and kind of such Distribution which such holder would
have received if such holder had converted its Securities into Common Stock immediately prior to the Record Date), the Conversion Price shall be reduced so that the same shall be equal to the price
determined by multiplying the Conversion Price in effect on the Record Date with respect to such distribution by a fraction, 

        (i)    the
numerator of which shall be the Current Market Price on such Record Date less (A) in the case of Distributions other than cash, the Fair Market Value (as
determined by the Board of Directors, whose determination shall be conclusive, and described in a resolution of the Board of Directors) on the Record Date of the portion of such Distributions
applicable to one share of Common Stock and
(B) in the case of Distributions of cash, the amount of such Distributions applicable to one share of Common Stock; and 

        (ii)   the
denominator of which shall be the Current Market Price on such Record Date, 

such
adjustment to become effective immediately prior to the opening of business on the day following such Record Date; provided,  however, that if the then Fair
Market Value (as so determined) of the portion of the Distribution so distributed applicable to one share of Common Stock
is equal to or greater than the Current Market Price on the Record Date, in lieu of the foregoing adjustment, adequate provision shall be made so that each Holder shall have the right to receive upon
conversion the amount of Distribution such holder would have received had such holder converted each Security on the Record Date. If such Distribution is not so paid or made, the Conversion Price
shall again be adjusted to be the Conversion Price that would then be in effect if such Distribution had not been declared. If the Board of Directors determines the Fair Market Value of any
distribution for purposes of this Section 10.04 by reference to the actual or when issued trading market for any securities, it must in doing so consider the prices in such market over the same
period used in computing the Current Market Price on the applicable Record Date. Notwithstanding the foregoing, if the Distribution distributed by the Company to all holders of its Common Stock
consists of Capital Stock of, or similar equity interests in, a Subsidiary or other business unit, the Conversion Price shall be reduced so that 

40

 

the
same shall be equal to the price determined by multiplying the Conversion Price in effect on the Record Date with respect to such distribution by a fraction: 

        (i)    the
numerator of which shall be the average Closing Sale Price of one share of Common Stock over the Spinoff Valuation Period; and 

        (ii)   the
denominator of which shall be the sum of (x) the average Closing Sale Price of one share of Common Stock over the ten consecutive Trading Day period (the
"Spinoff Valuation Period") commencing on and including the fifth Trading Day after the date on which "ex-dividend trading" commences on the
Common Stock on the New York Stock Exchange or such other national or regional exchange or market on which the Common Stock is then listed or quoted and (y) the average Fair Market Value (as
determined by the Board of Directors, whose determination shall be conclusive, and described in a resolution of the Board of Directors) over the Spinoff Valuation Period of the portion of the
Distribution so distributed applicable to one share of Common Stock, 

such
adjustment to become effective immediately prior to the opening of business on the day following such Record Date; provided,  however, that the Company may
in lieu of the foregoing adjustment make adequate provision so that each Holder shall have the right to receive upon
conversion the amount of
Distribution such holder would have received had such holder converted each Security on the Record Date with respect to such Distribution. 

        Rights
or warrants distributed by the Company to all holders of Common Stock entitling the holders thereof to subscribe for or purchase shares of the Company's Capital Stock (either
initially or under certain circumstances), which rights or warrants, until the occurrence of a specified event or events ("Trigger Event"):
(i) are deemed to be transferred with such shares of Common Stock; (ii) are not exercisable; and (iii) are also issued in respect of future issuances of Common Stock, shall be
deemed not to have been distributed for purposes of this Section 10.04 (and no adjustment to the Conversion Price under this Section 10.04 will be required) until the occurrence of the
earliest Trigger Event, whereupon such rights and warrants shall be deemed to have been distributed and an appropriate adjustment (if any is required) to the Conversion Price shall be made under this
Section 10.04. If any such right or warrant, including any such existing rights or warrants distributed prior to the date of this Indenture, are subject to events, upon the occurrence of which
such rights or warrants become exercisable to purchase different securities, evidences of indebtedness or other assets, then the date of the occurrence of any and each such event shall be deemed to be
the date of distribution and record date with respect to new rights or warrants with such rights (and a termination or expiration of the existing rights or warrants without exercise by any of the
holders thereof). In addition, in the event of any distribution (or deemed distribution) of rights or warrants, or any Trigger Event or other event (of the type described in the preceding sentence)
with respect thereto that was counted for purposes of calculating a distribution amount for which an adjustment to the Conversion Price under this Section 10.04 was made, (1) in the case
of any such rights or warrants that shall all have been redeemed or repurchased without exercise by any holders thereof, the Conversion Price shall be readjusted upon such final redemption or
repurchase to give effect to such distribution or Trigger Event, as the case may be, as though it were a cash distribution, equal to the per share redemption or repurchase price received by a holder
or holders of Common Stock with respect to such rights or warrants (assuming such holder had retained such rights or warrants), made to all holders of Common Stock as of the date of such redemption or
repurchase, and (2) in the case of such rights or warrants that shall have expired or been terminated without exercise by any holders thereof, the Conversion Price shall be readjusted as if
such rights and warrants had not been issued. 

41

   
        No adjustment of the Conversion Price shall be made pursuant to this Section 10.04 in respect of rights or warrants distributed or deemed distributed on any Trigger Event to the
extent that such rights or warrants are actually distributed, or reserved by the Company for distribution to Holders of Securities upon conversion by such Holders of Securities to Common Stock. 

        For
purposes of this Section 10.04(d) and 10.04(a) and (b), any dividend or distribution to which this Section 10.04(d) is applicable that also
includes shares of Common Stock, or rights or warrants to subscribe for or purchase shares of Common Stock (or both), shall be deemed instead to be (1) a dividend or distribution of the
evidences of indebtedness, assets or shares of capital stock other than such shares of Common Stock or rights or warrants (and any Conversion Price adjustment required by this Section 10.04
with respect to such dividend or distribution shall then be made) immediately followed by (2) a dividend or distribution of such shares of Common Stock or such rights or warrants (and any
further Conversion Price adjustment required by Sections 10.04(a) and (b) with respect to such dividend or distribution shall then be made), except 

        (A)  the
Record Date of such dividend or distribution shall be substituted as "the date fixed for the determination of stockholders entitled to receive such dividend or other
distribution", "the date fixed for the determination of stockholders entitled to receive such rights or warrants" and "the date fixed for such determination" within the meaning of
Section 10.04(a) and (b) and 

        (B)  any
shares of Common Stock included in such dividend or distribution shall not be deemed "outstanding at the close of business on the date fixed for such determination"
within the meaning of Section 10.04(a). 

        (e)   In
case a tender or exchange offer made by the Company or any Subsidiary for all or any portion of the Common Stock shall expire and such tender or exchange offer (as
amended upon the expiration thereof) shall require the payment to stockholders of consideration per share of Common Stock having a Fair Market Value (as determined by the Board of Directors, whose
determination shall be conclusive and described in a resolution of the Board of Directors) that as of the last time (the "Expiration Time") tenders or
exchanges may be made pursuant to such tender or exchange offer (as it may be amended) exceeds the Closing Sale Price of a share of Common Stock on the Trading Day next succeeding the Expiration Time,
the Conversion Price shall be reduced so that the same shall equal the price determined by multiplying the Conversion Price in effect immediately prior to the Expiration Time by a fraction, 

        (i)    the
numerator of which shall be the number of shares of Common Stock outstanding (including any tendered or exchanged shares) at the Expiration Time multiplied by the
Closing Sale Price of a share of Common Stock on the Trading Day next succeeding the Expiration Time, and 

        (ii)   the
denominator of which shall be the sum of (x) the Fair Market Value (determined as aforesaid) of the aggregate consideration payable to stockholders based on
the acceptance (up to any maximum specified in the terms of the tender or exchange offer) of all shares validly tendered or exchanged and not withdrawn as of the Expiration Time (the shares deemed so
accepted up to any such maximum, being referred to as the "Purchased Shares") and (y) the product of the number of shares of Common Stock
outstanding (less any Purchased Shares) at the Expiration Time and the Closing Sale Price of a share of Common Stock on the Trading Day next succeeding the Expiration Time, 

such
adjustment to become effective immediately prior to the opening of business on the day following the Expiration Time. If the Company is obligated to purchase shares pursuant to any such tender or
exchange offer, but the Company is permanently prevented by applicable law from effecting any such purchases or all such purchases are rescinded, the Conversion Price shall again be adjusted to be the
Conversion Price that would then be in effect if such tender or exchange offer had not been made. 

42

 

        (f)    The
following terms shall have the meaning indicated: 

        (1)   "Current Market Price" shall mean the average of the daily Closing Sale Prices per share of Common Stock for the ten
consecutive Trading Days immediately preceding the earlier of such date of determination and the day before the "ex" date with respect to the issuance, distribution, subdivision or combination
requiring such computation immediately prior to the date in question. For purpose of this paragraph, the term "ex" date, (1) when used with respect to any issuance or distribution, means the
first date on which the Common Stock trades, regular way, on the relevant exchange or in the relevant market from which the Closing Sale Price was obtained without the right to receive such issuance
or distribution, and (2) when used with respect to any subdivision or combination of shares of Common Stock, means the first date on which the Common Stock trades, regular way, on such exchange
or in such market after the time at which such subdivision or combination becomes effective. 

        If
another issuance, distribution, subdivision or combination to which this Section 10.04 applies occurs during the period applicable for calculating
"Current Market Price" pursuant to the definition in the preceding paragraph, "Current Market Price"
shall be calculated for such period in a manner determined by the Board of Directors to reflect the impact of such issuance, distribution, subdivision or combination on the Closing Sale Price of the
Common Stock during such period. 

        (2)   "Fair Market Value" shall mean the amount which a willing buyer would pay a willing seller in an arm's-length
transaction. 

        (3)   "Record Date" shall mean, with respect to any dividend, distribution or other transaction or event in which the holders
of Common Stock have the right to receive any cash, securities or other property or in which the Common Stock (or other applicable security) is exchanged for or converted into any combination of cash,
securities or other property, the date fixed for determination of stockholders entitled to receive such cash, securities or other property (whether such date is fixed by the Board of Directors or by
statute, contract or otherwise). 

        (g)   The
Company may make such reductions in the Conversion Price, in addition to those required by Section 10.04(a), (b), (c), (d) or (e) as the Board
of Directors considers to be advisable to avoid or diminish any income tax to holders of Common Stock or rights to purchase Common Stock resulting from any dividend or distribution of stock (or rights
to acquire stock) or from any event treated as such for income tax purposes. 

        To
the extent permitted by applicable law, the Company from time to time may reduce the Conversion Price by any amount for any period of time if the period is at least twenty
(20) days, the reduction is irrevocable during the period and the Board of Directors shall have made a determination that such reduction would be in the best interests of the Company, which
determination shall be conclusive. Whenever the Conversion Price is reduced pursuant to the preceding sentence, the Company shall mail to holders of record of the Securities a notice of the increase
at least fifteen (15) days prior to the date the reduced Conversion Price takes effect, and such notice shall state the increased Conversion Price and the period during which it will be in
effect. 

        (h)   No
adjustment in the Conversion Price shall be required unless such adjustment would require an increase or decrease of at least one percent (1%) in such price;  provided, however, that any adjustments that by reason of this Article 10 are not required to be
made shall be carried forward and taken into account in any subsequent adjustment. All calculations under this Article 10 shall be made by the Company and shall be made to the nearest
one-thousandth (1/1,000) of a dollar or to the nearest one-ten thousandth (1/10,000) of a share, as the case may be. No adjustment need be made for rights to purchase Common
Stock pursuant to a Company plan for reinvestment of dividends or interest. To the extent the Securities become convertible into cash, assets, property or securities (other than capital stock of the
Company), no adjustment need be made thereafter as to the cash, assets, 

43

 

property
or such securities. Interest will not accrue on any cash into which the Securities are convertible. The Conversion Price shall be adjusted only once for a single event or occurrence that
would require an adjustment under more than one of Section 10.04(a), (b), (c), (d) or (e). 

        (i)    Whenever
the Conversion Price is adjusted as herein provided, the Company shall promptly file with the Trustee and any Conversion Agent other than the Trustee an
Officers' Certificate setting forth the Conversion Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment. Unless and until a Responsible Officer of the
Trustee shall have received such Officers' Certificate, the Trustee shall not be deemed to have actual knowledge of any adjustment of the Conversion Price and may assume that the last Conversion Price
of which it has knowledge is still in effect. Promptly after delivery of such certificate, the Company shall prepare a notice of such adjustment of the Conversion Price setting forth the adjusted
Conversion Price and the date on which each adjustment becomes effective and shall mail such notice of such adjustment of the Conversion Price to the holder of each Security, within twenty
(20) days after execution thereof. Failure to deliver such notice shall not affect the legality or validity of any such adjustment. 

        (j)    In
any case in which this Section 10.04 provides that an adjustment shall become effective immediately after (1) a record date or Record Date for an event,
(2) the date fixed for the determination of stockholders entitled to receive a dividend or distribution pursuant to Section 10.04(a), (3) a date fixed for the determination of
stockholders entitled to receive rights or warrants pursuant to Section 10.04(b), or (4) the Expiration Time for any tender or exchange offer pursuant to Section 10.04, (each a
"Determination Date"), the Company may elect to defer until the occurrence of the applicable Adjustment Event (as hereinafter defined)
(x) issuing to the holder of any Security converted after such Determination Date and before the occurrence of such Adjustment Event, the additional shares of Common Stock or other securities
issuable upon such conversion by reason of the adjustment required by such Adjustment Event over and above the Common Stock issuable upon such conversion before giving effect to such adjustment and
(y) paying to such holder any amount in cash in lieu of any fraction pursuant to Section 10.03. For purposes of this Section 10.04, the term "Adjustment Event" shall mean: 

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

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

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

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

        (k)   For
purposes of this Section 10.04, the number of shares of Common Stock at any time outstanding shall not include shares held in the treasury of the Company but
shall include shares issuable in respect of scrip certificates issued in lieu of fractions of shares of Common Stock. The Company will not pay any dividend or make any distribution on shares of Common
Stock held in the treasury of the Company. 

        Section 10.05.
Effect of Reclassification, Consolidation, Merger or Sale. If any of the following events occur: (i) any
reclassification or change of the outstanding shares of Common Stock (other than a change in par value, or from par value to no par value, or from no par value to par value, or as a result of a
subdivision or combination), (ii) any consolidation, merger, share exchange or combination of the Company with another Person or (iii) any sale or conveyance of all or substantially all
of the properties and assets of the Company as an entirety or substantially as an entirety, in each case as a result of which holders of Common Stock shall receive stock, securities or other property
or assets (including cash) with respect to or in exchange for such Common Stock, then the Company or the 

44

 

successor
or purchasing Person, as the case may be, shall execute with the Trustee a supplemental indenture (which shall comply with the TIA as in force at the date of execution of such supplemental
indenture if such supplemental indenture is then required to so comply) providing that the Securities shall be convertible into the kind and amount of shares of stock and other securities or property
or assets (including cash) receivable upon such reclassification, change, consolidation, merger, share exchange, combination, sale or, conveyance by a holder of a number of shares of Common Stock
issuable upon conversion of the Securities (assuming, for such purposes, a sufficient number of authorized shares of Common Stock available to convert all such Securities) immediately prior to such
reclassification, change, consolidation, merger, share exchange, combination, sale or conveyance assuming such holder of Common Stock did not exercise his or her rights of election, if any, as to the
kind or amount of securities, cash or other property receivable upon such consolidation, merger, share exchange, sale or conveyance provided that, if the kind or amount of securities, cash or other
property receivable upon such consolidation, merger, share exchange, sale or conveyance is not the same for each share of Common Stock in respect of which such rights of election have not been
exercised ("Non-electing Share"), then, for the purposes of this Section 10.05, the kind and amount of securities, cash or other
property receivable upon such consolidation, merger, share exchange, sale or conveyance for each Non-electing Share shall be deemed to be the kind and amount so receivable per share by a
plurality of the Non-electing Shares). Such supplemental indenture shall provide for adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided for
in this Article Sixteen. If, in the case of any such reclassification, change, consolidation, merger, share exchange, combination, sale or conveyance, the stock or other securities and assets
receivable thereupon by a holder of shares of Common Stock includes shares of stock or other securities and assets of a person other than the successor or purchasing person, as the case may be, in
such reclassification, change, consolidation, merger, share exchange, combination, sale or conveyance, then such supplemental indenture shall also be executed by such other person and shall contain
such additional provisions to protect the interests of the holders of the Securities as the Board of Directors shall reasonably consider necessary by reason of the foregoing. 

        The
Company shall cause notice of the execution of such supplemental indenture to be mailed to each holder of Securities within 20 days after execution thereof. Failure to deliver
such notice shall not affect the legality or validity of such supplemental indenture. 

        The
above provisions of this Section 10.05 shall similarly apply to successive reclassifications, changes, consolidations, mergers, share exchanges, combinations, sales and
conveyances. 

        If
this Section 10.05 applies to any event or occurrence, Section 10.04 shall not apply. 

        Section 10.06.
Taxes on Shares Issued. The issue of stock certificates on conversions of Securities shall be made without charge to
the converting Holder for any tax in respect of the issue thereof. The Company shall not, however, be required to pay any tax which may be payable in respect of any transfer involved in the issue and
delivery of stock in any name other than that of the holder of any Security converted, and the Company shall not be required to issue or deliver any such stock certificate unless and until the person
or persons requesting the issue thereof shall have paid to the Company the amount of such tax or shall have established to the satisfaction of the Company that such tax has been paid. 

        Section 10.07.
Reservation of Shares; Shares to Be Fully Paid; Listing of Common Stock. The Company shall provide, free from
preemptive rights, out of its authorized but unissued shares or shares held in treasury, sufficient shares to provide for the conversion of the Securities from time to time as such Securities are
presented for conversion. Before taking any action which would cause an adjustment reducing the Conversion Price below the then par value, if any, of the shares of Common Stock issuable upon
conversion of the Securities, the Company shall take all corporate action which may, in 

45

 

the
opinion of its counsel, be necessary in order that the Company may validly and legally issue shares of such Common Stock at such adjusted Conversion Price. 

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

        The
Company further covenants that as long as the Common Stock is quoted on the Nasdaq National Market, or its successor, the Company shall cause all Common Stock issuable upon
conversion of the Securities to be eligible for such quotation in accordance with, and at the times required under, the requirements of such market, and if at any time the Common Stock becomes listed
on the New York Stock Exchange or any other national securities exchange, the Company shall cause all Common Stock issuable upon conversion of the Securities to be so listed and remain listed. 

        Section 10.08.  Responsibility of Trustee. The Trustee and any Conversion Agent shall have no duty, responsibility or liability to
any Holder to determine whether any facts exist which may require any adjustment of the Conversion Price, or with respect to the nature or extent of any such adjustment when made, or with respect to
the method employed, or herein or in any supplemental indenture provided to be employed, in making the same. Neither the Trustee nor any Conversion Agent shall be accountable with respect to the
registration under securities laws, listing, validity or value (or the kind or amount) of any shares of Common Stock, or of any other securities or property, which may at any
time be issued or delivered upon the conversion of any Security, and neither the Trustee nor any Conversion Agent makes any representation with respect thereto. Neither the Trustee nor any Conversion
Agent shall be responsible for any failure of the Company to make any cash payment or to issue, transfer or deliver any shares of stock or stock certificates or other securities or property upon the
surrender of any Security for the purpose of conversion; and the Trustee and any Conversion Agent shall not be responsible for any failure of the Company to comply with any of the covenants of the
Company contained in this Article 10. 

        Section 10.09.
Notice to Holders Prior to Certain Actions. If: 

        (a)   the
Company declares a dividend (or any other distribution) on its Common Stock (other than in cash out of retained earnings); 

        (b)   the
Company authorizes the granting to the holders of its Common Stock of rights or warrants to subscribe for or purchase any share of any class of Common Stock or any
other rights or warrants (other than rights or warrants referred to in the second paragraph of Section 10.04(d)); 

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

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

then
the Company shall cause to be filed with the Trustee and at the office or agency maintained for the purpose of conversion of the Securities pursuant to Section 4.02 shall caused to be
mailed to each holder of Securities, at their last addresses as they shall appear on the Security Register of the Company as promptly as possible but in any event at least 10 days prior to the
applicable date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend or distribution of rights or warrants, or, if a record is
not to be taken, the date as of which the holders of Common Stock of record to be entitled to such dividend or distribution are to be determined or (y) the date on which such reclassification,
consolidation, merger, share exchange, sale, transfer, dissolution, liquidation or winding-up is expected to become effective or occur, and the date as of which it is expected that holders
of Common Stock of record shall be entitled to exchange their 

46

 

Common
Stock for securities or other property deliverable upon such reclassification, consolidation, merger, share exchange, sale, transfer; dissolution, liquidation or winding-up. Failure
to give such notice, or any defect therein, shall not affect the legality or validity of such dividend, distribution, reclassification, consolidation, merger, share exchange, sale, transfer,
dissolution, liquidation or winding-up. Such notice shall also be published by and at the expense of the Company not later than the aforesaid filing date at least once in an Authorized
Newspaper. 

ARTICLE 11

MISCELLANEOUS  

        Section 11.01. Trust Indenture Act Controls. If any provision of this Indenture limits, qualifies, or
conflicts with another provision which is required to be included in this Indenture by the TIA, the required provision shall control. 

        Section 11.02.  Notices. Any request, demand, authorization, notice, waiver, consent or communication shall be in writing and
delivered in person or mailed by first-class mail, postage prepaid, addressed as follows, or transmitted by facsimile transmission (confirmed in writing) to the following facsimile numbers: 

        if
to the Company, to: 

Level
3 Communications, Inc.

1025 Eldorado Boulevard

Broomfield, Colorado 80021

Attn.: General Counsel

Facsimile: (720) 888-5619 

        with
a copy to: 

Willkie
Farr & Gallagher LLP

787 Seventh Avenue

New York, NY 10019

Attention: John S. D'Alimonte

Facsimile No.: (212) 728-8111 

        if
to the Trustee, to: 

The
Bank of New York

101 Barclay Street, 8W

New York, New York 10286

Attention: Corporate Trust Administration

Facsimile No.: (212) 815-5707 

        The
Company or the Trustee by notice given to the other in the manner provided above may designate additional or different addresses for subsequent notices or communications. 

        Any
notice or communication given to a Holder shall be mailed to the Holder, by first-class mail, postage prepaid, at the Holder's address as it appears on the registration books of the
Registrar and shall be sufficiently given if so mailed within the time prescribed. 

        Failure
to mail a notice or communication to a Holder or any defect in it shall not affect its sufficiency with respect to other Holders. If a notice or communication is mailed in the
manner provided above, it is duly given, whether or not received by the addressee. 

        If
the Company mails a notice or communication to the Holders, it shall mail a copy to the Trustee and each Registrar, Paying Agent, Conversion Agent or co-registrar. 

47

 

        Section 11.03.
Communication by Holders with Other Holders. Holders may communicate pursuant to TIA
Section 312(b) with other Holders with respect to their rights under this Indenture or the Securities. The Company, the Trustee, the Registrar, the Paying Agent, the Conversion Agent and
anyone else shall have the protection of TIA Section 312(c). 

        Section 11.04.
Certificate and Opinion as to Conditions Precedent. Upon any request or application by the Company to the Trustee to
take any action under this Indenture, the Company shall furnish to the Trustee: 

        (a)   an
Officers' Certificate stating that, in the opinion of the signers, all conditions precedent, if any, provided for in this Indenture relating to the proposed action
have been complied with; and 

        (b)   an
Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent have been complied with. 

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

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

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

        Section 11.05.
Statements Required in Certificate or Opinion. 

        Each
Officers' Certificate or Opinion of Counsel with respect to compliance with a covenant or condition provided for in this Indenture shall include: 

        (a)   a
statement that each person making such Officers' Certificate or Opinion of Counsel has read such covenant or condition; 

        (b)   a
brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such Officers' Certificate or Opinion
of Counsel are based; 

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

        (d)   a
statement that, in the opinion of such person, such covenant or condition has been complied with. 

        Section 11.06.
Separability Clause. In case any provision in this Indenture or in the Securities shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

48

 

        Section 11.07.  Rules by Trustee, Paying Agent, Conversion Agent and Registrar. The Trustee may make reasonable rules for
action by or at a meeting of Holders. The Registrar, the Conversion Agent and the Paying Agent may make reasonable rules for their functions. 

        Section 11.08.
Legal Holidays. A "Legal Holiday" is any day other than a Business
Day. If any specified date (including a date for giving notice) is a Legal Holiday, the action shall be taken on the next succeeding day that is not a Legal Holiday, and, if the action to be taken on
such date is a payment in respect of the Securities, no interest (including contingent interest, if any) or Special Interest, if any, shall accrue for the intervening period. 

        Section 11.09.
Governing Law. THIS INDENTURE AND EACH SECURITY SHALL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF THE STATE OF
NEW YORK, AND FOR ALL PURPOSES SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 

        Section 11.10.
No Recourse Against Others. A director, officer, employee or stockholder, as such, of the Company shall not have any
liability for any obligations of the Company under the Securities or for any claim based on, in respect of or by reason of such obligations or their creation. By accepting a Security, each
Securityholder shall waive and release all such liability. The waiver and release shall be part of the consideration for the issue of the Securities. 

        Section 11.11.
Successors. All agreements of the Company in this Indenture and the Securities shall bind its successor. All
agreements of the Trustee in this Indenture shall bind its successor. 

        Section 11.12.
Multiple Originals. This Indenture may be executed in any number of counterparts, each of which shall be an
original, but such counterparts shall together constitute but one and the same instrument. 

49

 

        IN
WITNESS WHEREOF, the undersigned, being duly authorized, have executed this Indenture on behalf of the respective parties hereto as of the date first above written. 

	

 	
 	

LEVEL 3 COMMUNICATIONS, INC.
	

 	
 	

By:	
 	

/s/  THOMAS C. STORTZ      
 Name: Thomas C. Stortz

Title: Group Vice President
	

 	
 	

THE BANK OF NEW YORK, as Trustee
	

 	
 	

By:	
 	

/s/  VAN K. BROWN      
 Name: Van K. Brown

Title: Vice President

50

   EXHIBIT A-1  

{FORM OF FACE OF GLOBAL SECURITY}

        FOR
U.S. FEDERAL INCOME TAX PURPOSES, THIS SECURITY WAS ISSUED WITH "ORIGINAL ISSUE DISCOUNT." THE TOTAL AMOUNT OF ORIGINAL ISSUE DISCOUNT IS 29.527% OF ITS PRINCIPAL AMOUNT AT MATURITY,
THE ISSUE DATE IS OCTOBER 24, 2003 AND THE YIELD TO MATURITY ON THE ISSUE DATE IS 9%, COMPOUNDED SEMIANNUALLY. 

        UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO LEVEL 3 COMMUNICATIONS, INC. (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 THE DEPOSITORY
TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 

        TRANSFERS
OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS TO NOMINEES OF THE DEPOSITORY TRUST COMPANY, OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF
PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN ARTICLE TWO OF THE INDENTURE REFERRED TO ON THE REVERSE HEREOF. 

        THIS
SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND
THIS SECURITY, AND THE COMMON STOCK DELIVERABLE UPON CONVERSION HEREOF MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION
THEREFROM. EACH PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY
RULE 144A THEREUNDER. THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS SECURITY MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY
(I) TO THE COMPANY OR ANY OF ITS SUBSIDIARIES (II) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT)
IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (III) IN AN OFFSHORE TRANSACTION TO NON-U.S. PERSONS THAT OCCURS OUTSIDE OF THE UNITED STATES IN ACCORDANCE WITH REGULATION S
UNDER THE SECURITIES ACT, (IV) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT INCLUDING THE EXEMPTION PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR
(V) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES (I) THROUGH (V) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF
THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY 

A-1-1

 

PURCHASER
OF THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE. 

        THE
FOREGOING LEGEND MAY BE REMOVED FROM THIS SECURITY ON SATISFACTION OF THE CONDITIONS SPECIFIED IN THE INDENTURE. 

A-1-2

 
LEVEL 3 COMMUNICATIONS, INC.

9% Convertible Senior Discount Notes Due 2013

	No.:	 	CUSIP:
	

Issue Date:                        , 2003	
 	

Principal Amount at Maturity: $

        LEVEL
3 COMMUNICATIONS, INC., a Delaware corporation, promises to pay to Cede & Co., or registered assigns, the principal amount at maturity as set forth on
Schedule I hereto, on October 15, 2013, subject to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same
effect as if set forth at this place. This Security is convertible as specified on the other side of this Security. 

        Interest
Payment Dates: April 15 and October 15, commencing April 15, 2008 (unless the Company elects to commence the accrual of cash interest on the Securities on
or after October 15, 2004 and prior to October 15, 2007). 

        Record
Dates: April 1 and October 1, commencing April 1, 2008. 

	

 	
 	

LEVEL 3 COMMUNICATIONS, INC.
	

 	
 	

By:	
 	

 Name:

Title:

A-1-3

 
TRUSTEE'S CERTIFICATE OF AUTHENTICATION

        The
Bank of New York, as Trustee, certifies that this is one of the Securities referred to in the within-mentioned Indenture. 

	

By:	
 	

 Authorized Signatory	
 	

 

Dated:

A-1-4

   {FORM OF REVERSE SIDE OF SECURITY}

Level 3 Communications, Inc.

9% CONVERTIBLE SENIOR DISCOUNT NOTE DUE 2013

	1.
	PRINCIPAL
AMOUNT AT MATURITY. Level 3 Communications, Inc., a Delaware corporation (the "Company"), promises to pay the principal sum
of                        Dollars on
October 15, 2013, at the office or agency of the Company referred to below.

	2.
	INTEREST.
Level 3 Communications, Inc., a Delaware corporation (the "Company"), promises to pay interest on the principal amount at maturity of this Security at the rate per
annum shown above. The Company will pay interest semi-annually in arrears on April 15 and October 15 of each year, beginning April 15, 2008, and cash interest accruing
from October 15, 2007, or from the most recent Interest Payment Date to which interest has been paid or duly provided for, at the rate of 9% per annum, until the principal amount at maturity
hereof is paid or duly provided for; provided that no cash interest shall accrue on the Accreted Value of this Security prior to October 15, 2007, and no cash interest shall be paid on this
Security prior to April 15, 2008, except that the Company may elect, upon not less than 60 days prior notice given in the manner provided for in the Indenture, to commence the accrual of
cash interest (at the rate shown above) on all outstanding Securities on or after October 15, 2004, in which case the outstanding principal amount at maturity of this Security shall on such
commencement date be reduced to the Accreted Value of this Security as of such commencement date and cash interest shall be payable with respect to this Security on each April 15 and
October 15 thereafter. The Company shall pay interest on overdue Accreted Value at the rate borne by the Securities, and it shall pay interest on overdue installments of interest at the same
rate to the extent lawful. Interest will be computed on the basis of a 360-day year composed of twelve 30-day months.

	3.
	SPECIAL
INTEREST. The Holder of this Security is entitled to the benefits of a Registration Agreement, dated as of October 24, 2003, between the Company and the Initial
Purchasers named therein (the "Registration Agreement"). Capitalized terms used in this paragraph but not defined herein have the meanings assigned to them in the Registration Agreement. In the event
that (i) the Shelf Registration Statement has not been filed with the SEC on or prior to October 24, 2004, (ii) the Shelf Registration Statement has not been declared effective on
or prior to December 23, 2004, or (iii) after the Shelf Registration Statement has been declared effective, such Registration Statement thereafter ceases to be effective or usable in
connection with resales of the Securities at any time that the Company is obligated to maintain the effectiveness thereof pursuant to the Registration Agreement (each such event referred to in clauses
(i) through (iii) above being referred to herein as a "Registration Default"), interest (the "Special Interest") shall accrue (in addition to stated interest, if any, on the Securities)
from and including the date on which the first such Registration Default shall occur to but excluding the date on which all Registration Defaults have been cured, at a rate per annum equal to 0.50% of
the Accreted Value of the Securities; provided, however, that such rate per annum shall increase by 0.25% per annum from and including the 91st day after the first such Registration Default (and each
successive 91st day thereafter) unless and until all Registration Defaults have been cured; provided further, however, that in no event shall the Special Interest accrue at a rate in excess of 1.00%
per annum. Accrued Special Interest, if any, shall be paid in cash in arrears semiannually on April 15 and October 15 in each year; and the amount of accrued Special Interest shall be
determined on the basis of the number of days actually elapsed and the Accreted Value for each such day.

	4.
	METHOD
OF PAYMENT. The Company will pay interest on the Securities (except defaulted interest) to the person in whose name each Security is registered at the close of business on the
April 1 or October 1 immediately preceding the relevant Interest Payment Date (each a "Regular Record Date") (other than with respect to a Security or portion thereof called for
redemption on a 

A-1-5

 

Redemption
Date, or repurchased in connection with a Designated Event on a repurchase date, during the period from the close of business on a Regular Record Date to (but excluding) the next succeeding
Interest Payment Date, in which case accrued interest shall be payable (unless such Security or portion thereof is converted) to the Holder of the Security or portion thereof redeemed or repurchased
in accordance with the applicable redemption or repurchase provisions of the Indenture). The Holder must surrender Securities to a Paying Agent to collect payment of Accreted Value. The Company will
pay the Accreted Value of and interest on the Securities at the office or agency of the Company maintained for such purpose, in money of the United States that at the time of payment is legal tender
for payment of public and private debts. Until otherwise designated by the Company, the Company's office or agency maintained for such purpose will be the principal Corporate Trust Office of the
Trustee (as defined below). However, the Company may pay Accreted Value and interest by check payable in such money, and may mail such check to the Holders at their respective addresses as set forth
in the Security Register of Holders of Securities. 

	5.
	PAYING
AGENT AND REGISTRAR. The Bank of New York (together with any successor Trustee under the Indenture referred to below, the "Trustee") will act as Paying Agent and Registrar. The
Company may change the Paying Agent, Registrar or co-registrar without prior notice. Subject to certain limitations in the Indenture, the Company or any of its subsidiaries may act in any
such capacity.

	6.
	INDENTURE.
This is one of a duly authorized issue of securities of the Company designated as its "9% Convertible Senior Discount Notes Due 2013" issued under an indenture dated as of
October 24, 2003 (the "Indenture"), between the Company and the Trustee. The terms of the Securities include those stated in the Indenture and those made part of the Indenture by reference to
the Trust Indenture Act of 1939 (the "TIA") as in effect on the date of the Indenture. The Securities are subject to, and qualified by, all such terms, certain of which are summarized hereon, and
Holders are referred to the Indenture and the TIA for a statement of such terms. The Securities are unsecured and unsubordinated obligations of the Company limited to (except as otherwise provided in
the Indenture) up to $294,732,000 in aggregate principal amount at maturity. Capitalized terms not defined below have the same meaning as is given to them in the Indenture.

	7.
	OPTIONAL
REDEMPTION. No sinking fund is provided for the Securities. The Securities are redeemable as a whole, or from time to time in part, at any time at the option of the Company in
accordance with the Indenture and this Security, provided that the Securities are not redeemable prior to October 15, 2008. If redeemed at the option of the Company, the Securities will be
redeemed on the conditions and at the Redemption Prices set forth below. 

If
the Closing Sale Price of the Common Stock has exceeded the applicable Specified Percentage (as defined below) of the then applicable Conversion Price for at least 20 Trading Days in any
consecutive 30-day trading period ending on the Trading Day prior to the mailing of the notice of redemption, the Company may redeem for cash all or a portion of the Securities at any time
after October 15, 2008, by providing not less than 30 nor more than 60 days' notice by mail to each Holder of the Securities to be redeemed, at a redemption price in cash equal to 100%
of the Accreted Value as of the Redemption Date of the Securities to be redeemed plus accrued and unpaid interest to, but excluding, the Redemption Date. 

"Specified
Percentage" is equal to (1) 140% if the date of the mailing of the notice of redemption is during the 12-month period beginning October 15, 2008, (2) 140%
if the date of the mailing of the notice of redemption is during the 12-month period beginning October 15, 2009, provided,  however, that if the
Initial Purchasers have Transferred 331/3% or more of the aggregate principal amount at maturity of the Securities
(as of the Issue Date) prior to the Trading Day immediately preceding the date of the mailing of the notice of redemption, the Specified Percentage shall be 

A-1-6

 

automatically
reduced to 130%, and (3) 140% if the date of the mailing of the notice of redemption is during the 36-month period beginning October 15, 2010,  provided, however, that if the Initial Purchasers have Transferred 331/3% or more of the
aggregate principal amount at maturity of the Securities (as of the Issue Date) prior to the Trading Day immediately preceding the date of the mailing of the notice of redemption, the Specified
Percentage shall be automatically reduced to 120%. For purposes of this definition of "Specified Percentage," any one or more of the following shall be deemed not to constitute a Transfer of
Securities by the Initial Purchasers: (i) a Transfer of Securities to any Person directly or indirectly controlled by or under direct or indirect common control with Fairfax Financial Holdings
Limited (any such Person a "Fairfax Entity") or (ii) a Transfer of Securities to a trust or other Person for the benefit of one or more Fairfax Entities. 

Notice
of redemption will be mailed by first class mail at least 30 days but not more than 60 days before the date fixed for redemption to each Holder of Securities to be redeemed at his
or her registered address. Securities in denominations larger than $1,000 principal amount at maturity may be redeemed in part but only in integral multiples of $1,000 (assuming no exercise by the
Company of its right to elect to commence the accrual of cash interest on the Securities on or after October 15, 2004 and prior to October 15, 2007). If less than all the Securities are to be
redeemed, the Trustee shall select the Securities to be redeemed by a method that complies with the requirements of the principal national securities exchange, if any, on which the Securities are
listed or quoted, or, if the Securities are not so listed, on a pro rata basis by lot or by any other method that the Trustee considers fair and appropriate. On and after the Redemption Date, interest
ceases to accrue on Securities or portions thereof called for redemption (unless the Company defaults in the payment of the Redemption Price). If this Security is redeemed on a date which is also an
Interest Payment Date, the interest due on such date will be paid to the person in whose name this Security is registered at the close of business on the relevant Regular Record Date. 

	8.
	DESIGNATED
EVENT. Upon the occurrence of a Designated Event, the Company shall make a Designated Event Offer to repurchase all outstanding Securities at a price equal to 101% of the
aggregate Accreted Value of the Securities as of the Designated Event Payment Date, plus accrued and unpaid interest to, but excluding, the date of repurchase, such offer to be made as provided in the
Indenture. To accept the Designated Event Offer, the Holder hereof must comply with the terms thereof, including surrendering this Security, with the "Option of Holder to Elect Repurchase" portion
hereof completed, to the Company, a depositary, if appointed by the Company, or a Paying Agent, at the address specified in the notice of the Designated Event Offer mailed to Holders as provided in
the Indenture, prior to the Designated Event Offer Termination Date.

	9.
	DENOMINATIONS,
TRANSFER, EXCHANGE. The Securities are in registered form without coupons in denominations of $1,000 principal amount at maturity and integral multiples of $1,000. The
transfer of Securities may be registered and Securities may be exchanged as provided in the Indenture. As a condition of transfer, the Registrar and the Trustee may require a Holder, among other
things, to furnish appropriate endorsements and transfer documents, and the Company and the Registrar may require a Holder to pay any taxes and fees required by law or permitted by the Indenture. The
Company or the Registrar need not exchange or register the transfer of any Security or portion of a Security selected for redemption or submitted for repurchase or surrendered for conversion. Also,
the Company or the Registrar need not exchange or register the transfer of any Security for a period of 15 days before the mailing of a notice of redemption for such Securities to be redeemed.

	10.
	PERSONS
DEEMED OWNERS. The registered Holder of a Security shall be treated as its owner for all purposes. 

A-1-7

 
	11.
	AMENDMENTS
AND WAIVERS. Subject to certain exceptions, the Indenture or the Securities may be amended or supplemented with the consent of the Holders of at least a majority in
principal amount at maturity of the then outstanding Securities, and any existing default may be waived with the consent of the Holders of a majority in principal amount at maturity of the then
outstanding Securities. 

Without
the consent of any Holder, the Indenture or the Securities may be amended to: (a) to comply with Article 5 or Section 10.05; (b) to cure any ambiguity, omission,
defect or inconsistency, or to make any other change that does not adversely affect the rights of any Securityholder; (c) to evidence and provide for the acceptance of appointment hereunder by
a successor Trustee with respect to the Securities; or (d) to comply with the provisions of the TIA, or with any requirement of the SEC arising as a result of the qualification of this
Indenture under the TIA. 

Without
the written consent of each Securityholder affected, the Company may not: (a) change the Stated Maturity of the Accreted Value of, or any installment of interest (including contingent
interest, if any), if any, on, any Security; (b) reduce the Accreted Value of, or the rate or amount of interest (including contingent interest), if any, on, any Security, whether upon
acceleration, redemption or otherwise, or alter the manner of calculation of interest, if any, or the rate or amount of accrual thereof on any Security; (c) change the currency for payment,
Accreted Value of, or interest (including contingent interest, if any), on any Security or change any Place of Payment where the Accreted Value of or interest on any Security is payable;
(d) impair the right to institute suit for the enforcement of any payment of any amount with respect to any Security when due; (e) adversely affect the conversion rights provided in
Article 10; (f) modify the provisions of the Indenture requiring the Company to make an offer to repurchase Securities upon a Designated Event in a manner adverse to the Holders;
(g) reduce
the percentage of principal amount at maturity of the outstanding Securities necessary to modify or amend this Indenture or to consent to any waiver provided for in this Indenture; (h) waive a
Default or Event of Default in the payment of any amount with respect to any Security when due (except as provided in Section 6.02 or 6.04); (i) make any changes in Section 9.02
of the Indenture; (j) make any change in the provisions of the Indenture permitting Holders of a majority in aggregate principal amount at maturity of Securities to waive past Defaults or
Events of Default or the rights of Holders to receive payments of Accreted Value of or interest on the Securities or to bring suit to enforce such payment; or (k) modify any provision of the
Indenture relating to the calculation of Accreted Value with respect to the Securities. 

	12.
	DEFAULTS
AND REMEDIES. An Event of Default is: (a) default in payment of the Accreted Value of the Securities, when due at maturity, upon repurchase, upon acceleration or
otherwise; (b) default for 30 days or more in payment of any installment of interest on the Securities; (c) default in the payment of the Designated Event Payment in respect of
the Securities on the date therefor; (d) failure to provide timely notice of a Designated Event; (e) default by the Company (other than a default set forth in clause (a), (b),
(c) or (d) above) for 60 days or more after notice in the observance or performance of any other covenants in the Indenture; (f) default under any credit agreement,
mortgage, indenture or instrument under which there may be issued or by which there may be secured or evidenced any indebtedness for money borrowed by the Company or any of its Material Subsidiaries
(or the payment of which is guaranteed or secured by the Company or any of its Material Subsidiaries), whether such indebtedness or guarantee exists on the date of the Indenture or is created
thereafter, which default (i) is caused by a failure to pay when due any principal of such indebtedness within the grace period provided for in such indebtedness, which failure continues beyond
any applicable grace period (a "Payment Default"), or (ii) results in the acceleration of such indebtedness prior to its express maturity (without such acceleration being rescinded or annulled)
and, in each case, the principal amount of such 

A-1-8

 

indebtedness,
together with the principal amount of any other such indebtedness under which there is a Payment Default or the maturity of which has been so accelerated, aggregates $25,000,000 or more
and such Payment Default is not cured or such acceleration is not annulled within 10 days after notice; or (g) failure by the Company or any Material Subsidiary of the Company to pay
final, nonappealable judgments (other than any judgment as to which a reputable insurance company has accepted full liability) aggregating in excess of $25,000,000, which judgments are not stayed,
bonded or discharged within 60 days after their entry; or (h) certain events involving bankruptcy, insolvency or reorganization of the Company or any Material Subsidiary. If an Event of
Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount at maturity of the then outstanding Securities may declare the then Accreted Value of and accrued and
unpaid interest on all Securities then outstanding to be due and payable immediately, except that in the case of an Event of Default arising from certain events of bankruptcy, insolvency, or
reorganization with respect to the Company, the then Accreted Value of all outstanding Securities becomes due and payable without further action or notice. Holders may not enforce the Indenture or the
Securities except as provided in the Indenture. The Trustee may require an indemnity reasonably satisfactory to it before it enforces the Indenture or the Securities. Subject to certain limitations,
Holders of a majority in principal amount at maturity of the then outstanding Securities may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders notice of
any continuing default (except a default in payment of Accreted Value or interest) if it determines that withholding notice is in their interests. The Company must furnish annual compliance
certificates to the Trustee. 

	13.
	TRUSTEE
DEALINGS WITH THE COMPANY. The Trustee or any of its Affiliates, in their individual or any other capacities, may make or continue loans to or guaranteed by, accept deposits
from and perform services for the Company or its Affiliates and may otherwise deal with the Company or its Affiliates as if it were not Trustee.

	14.
	NO
RECOURSE AGAINST OTHERS. No director, officer, employee, shareholder or Affiliate, as such, of the Company shall have any liability for any obligations of the Company under the
Securities or the Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. Each Holder by accepting a Security waives and releases all such liability. The
waiver and release are part of the consideration for the Securities.

	15.
	AUTHENTICATION.
This Security shall not be valid until authenticated by the manual signature of the Trustee or an authenticating agent.

	16.
	ABBREVIATIONS.
Customary abbreviations may be used in the name of a Holder or an assignee, such as: TEN CO = tenants in common, TEN ENT = tenants by the entireties, JT
TEN = joint tenants with right of survivorship and not as tenants in common, CUST = Custodian and U/G/MA = Uniform Gifts to Minors Act.

	17.
	CONVERSION.
Subject to and upon compliance with the provisions of the Indenture, the registered Holder of this Security has the right at any time after April 24, 2004 and on or
before the close of business on the last Trading Day prior to the Maturity Date (or in case this Security or any portion hereof is (a) called for redemption prior to such date, before the close
of business on the last Trading Day preceding the date fixed for redemption (unless the Company defaults in payment of the Redemption Price in which case the conversion right will terminate at the
close of business on the date such default is cured) or (b) subject to a duly completed election for repurchase, on or before the close of business on the Designated Event Offer Termination
Date (unless the Company defaults in payment due upon repurchase or such Holder elects to withdraw the submission of such election to repurchase) to convert the Accreted Value hereof, or any portion
of such Accreted Value, into that number of fully paid and non-assessable shares of common stock of the Company ("Common Stock") obtained by dividing (i) the Accreted Value or 

A-1-9

 

portion
thereof (a) as of such date, in the case of a Conversion Date on or after October 15, 2007 or (b) as of the Accretion Measurement Date immediately preceding the Conversion
Date (or, if the Conversion Date is an Accretion Measurement Date, as of the Conversion Date), in the case of a Conversion Date prior to October 15, 2007 by (ii) the conversion price of
$9.991 per share (the "Conversion Price"), as adjusted from time to time as provided in the Indenture, upon surrender of this Security to the Company at the office or agency maintained for such
purpose (and at such other offices or agencies designated for such purpose by the Company), accompanied by written notice of conversion duly executed (and if the shares of Common Stock to be issued on
conversion are to be issued in any name other than that of the registered Holder of this Security by instruments of transfer, in form satisfactory to the Company, duly executed by the registered
Holder or its duly authorized attorney) and, in case such surrender shall be made during the period from the close of business on the Regular Record Date immediately preceding any Interest Payment
Date through the close of business on the last Trading Day immediately preceding such Interest Payment Date (unless this Security or the portion thereof being converted has been called for redemption
on a date in such period), also accompanied by payment, in funds acceptable to the Company, of an amount equal to the interest otherwise payable on such Interest Payment Date on the principal amount
of this Security then being converted. Subject to the aforesaid requirement for a payment in the event of conversion after the close of business on a Regular Record Date immediately preceding an
Interest Payment Date, no adjustment shall be made on conversion for interest accrued or accretion hereon or for dividends on Common Stock delivered on conversion. The right to convert this Security
is subject to the provisions of the Indenture relating to conversion rights in the case of certain consolidations, mergers, share exchanges or sales or transfers of substantially all the Company's
assets. In no event shall a Holder convert a portion of this Security unless such portion of this Security has a principal amount at maturity of $1,000 (assuming no exercise by the Company of its
right to elect to commence the accrual of cash interest on the Securities on or after October 15, 2004 and prior to October 15, 2007) or an integral multiple thereof. 

        The
Company shall, in respect of fractional shares representing fractions of shares of Common Stock upon any such conversion, (i) make an adjustment in cash based upon the current
market price of the Common Stock on the last Trading Day prior to the date of conversion, (ii) round such fraction up to the nearest whole number of shares or (iii) if permitted by law
and relevant Nasdaq or stock exchange rules, issue fractional shares. 

        The
Company will furnish to any Holder upon written request and without charge a copy of the Indenture. Requests may be made to: Level 3 Communications, Inc., 1025 Eldorado Blvd.,
Broomfield, CO 80021, Attention: Vice President, Investor Relations, or by telephone at (720) 888-2500. 

	18.
	GOVERNING
LAW. THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS
OF LAW TO THE EXTENT THAT THE APPLICAION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. 

A-1-10

   FORM OF CONVERSION NOTICE

	To:
	Level
3 Communications, Inc. 

        The
undersigned owner of the Security hereby irrevocably exercises the option to convert this Security, or portion hereof (which is $1,000 principal amount at maturity or an integral
multiple thereof (assuming no exercise by the Company of its right to elect to commence the accrual of cash interest on the Securities on or after October 15, 2004 and prior to October15,
2007)) below designated, into shares of Common Stock of Level 3 Communications, Inc., in accordance with the terms of the Indenture referred to in this Security, and directs that the shares
issuable and deliverable upon the conversion, together with any check in payment for fractional shares and Securities representing any unconverted principal amount at maturity hereof, be issued and
delivered to the owner hereof unless a different name has been indicated below. If shares or any portion of this Security not converted 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. Any amount required to be paid by the undersigned on account of interest and taxes accompanies this Security. 

	Dated:	 	 
	Fill in for registration of shares if to be delivered, and Securities if to be issued, other than to and in the name of the owner

(Please Print):	 	

 Signature
	

 (Name)	
 	

Principal amount at maturity to be converted (if less than all):
	

 	
 	

 $            ,000
	

 (Street Address)	
 	

 Social Security or other Taxpayer Identification Number
	

 (City, State and Zip Code)	
 	

 
	

Signature Guarantee:	
 	

 
	

	
 	

 

Signatures
must be guaranteed by an eligible Guarantor Institution (banks, brokers, dealers, savings and loan associations and credit unions) with membership in an approved signature guarantee
medallion program pursuant to Securities and Exchange Commission Rule 17Ad-15 if shares are to be issued, or Securities are to be delivered, other than to and in the name of the
registered Holder. 

A-1-11

 
ASSIGNMENT FORM

        To
assign this Security, fill in the form below: 

        (I)
or (we) assign and transfer this Security to 

(Insert assignee's social security or tax I.D. no.) 

(Print or type assignee's name, address and zip code) 

and
irrevocably appoint                        agent to transfer this Security on the books of the Company. The agent may substitute
another to act for him. 

	Your Signature:	 	 
	 	 	
 (Sign exactly as your name appears on the other side of this Security)
	

Date:	
 	

 
	 	 	

	
Medallion Signature Guarantee:	
 	

 
	 	 	

A-1-12

 
OPTION OF HOLDER TO ELECT REPURCHASE

        If
you wish to have this Security repurchased by the Company pursuant to Section 4.05 of the Indenture, check the Box: o 

        If you wish to have a portion of this Security purchased by the Company pursuant to Section 4.05 of the Indenture, state the principal amount at maturity
(in multiples of $1,000): $            . 

	Date:	 	 	 	Your Signature:	 	 
	 	 	
	 	 	 	
 (Sign exactly as your name appears on the other side of this Security)
	

Medallion Signature Guarantee:	
 	

 	
 	

 
	 	 	 	 	

A-1-13

 
SCHEDULE I

LEVEL 3 COMMUNICATIONS, INC.

9% Convertible Senior Discount Notes Due 2013

A-1-14

	Date
 
	 	Principal Amount at Maturity
 
	 	Notation

   EXHIBIT A-2  

        {Form of Certificated Security}  

        FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS SECURITY WAS ISSUED WITH "ORIGINAL ISSUE DISCOUNT." THE TOTAL AMOUNT OF ORIGINAL ISSUE DISCOUNT IS
29.527% OF ITS PRINCIPAL AMOUNT AT MATURITY, THE ISSUE DATE IS OCTOBER 24, 2003 AND THE YIELD TO MATURITY ON THE ISSUE DATE IS 9%, COMPOUNDED SEMIANNUALLY. 

        THIS
SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND
THIS SECURITY AND THE COMMON STOCK DELIVERABLE UPON CONVERSION HEREOF MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM.
EACH PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A
THEREUNDER. 

        THE
HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS SECURITY MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) TO THE
COMPANY OR ANY OF ITS SUBSIDIARIES (II) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION
MEETING THE REQUIREMENTS OF RULE 144A, (III) IN AN OFFSHORE TRANSACTION TO NON-U.S. PERSONS THAT OCCURS OUTSIDE OF THE UNITED STATES IN ACCORDANCE WITH REGULATION S UNDER THE
SECURITIES ACT, (IV) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT INCLUDING THE EXEMPTION PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR
(V) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES (I) THROUGH (V) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF
THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE. 

        THE
FOREGOING LEGEND MAY BE REMOVED FROM THIS SECURITY ON SATISFACTION OF THE CONDITIONS SPECIFIED IN THE INDENTURE. 

A-2-1

 
LEVEL 3 COMMUNICATIONS, INC.

9% Convertible Senior Discount Notes Due 2013

	No.:	 	CUSIP:
	

Issue Date:                        , 2003	
 	

Principal Amount at Maturity: $

        LEVEL
3 COMMUNICATIONS, INC., a Delaware corporation, promises to pay to                        or registered assigns, the
principal amount at maturity of $                        , on
October 15, 2013, subject to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place. This Security is convertible as specified on the other side of this Security. 

        Interest
Payment Dates: April 15 and October 15, commencing April 15, 2008 (unless the Company elects to commence the accrual of cash interest on the Securities on
or after October 15, 2004 and prior to October 15, 2007). 

        Record
Dates: April 1 and October 1, commencing April 1, 2008. 

	

 	
 	

LEVEL 3 COMMUNICATIONS, INC.
	

 	
 	

By:	
 	

 Name:

Title:

A-2-2

 
TRUSTEE'S CERTIFICATE OF AUTHENTICATION

        The
Bank of New York, as Trustee, certifies that this is one of the Securities referred to in the within-mentioned Indenture. 

	

By:	
 	

 Authorized Signatory	
 	

 

Dated:

A-2-3

 
{FORM OF REVERSE SIDE IS IDENTICAL TO EXHIBIT A-1}

A-2-4

   EXHIBIT B  

Transfer Certificate

        In
connection with any transfer of any of the Securities within the period prior to the expiration of the holding period applicable to the sales thereof under
Rule 144(k) under the Securities Act of 1933, as amended (the "Securities Act") (or any successor provision), the undersigned registered
owner of this Security hereby certifies with respect to
$                                         
 principal amount at maturity of the above-captioned Securities presented or surrendered on the date hereof (the
"Surrendered Securities") for registration of transfer, or for exchange or conversion where the securities deliverable upon such exchange or conversion
are to be registered in a name other than that of the undersigned registered owner (each such transaction being a "transfer"), that such transfer complies with the restrictive legend set forth on the
face of the Surrendered Securities for the reason checked below: 

        o A
transfer of the Surrendered Securities is made to the Company or any subsidiaries; or 

        o The transfer of the Surrendered Securities complies with Rule 144A under the Securities Act; or 

        o The transfer of the Surrendered Securities complies with Regulation S under the Securities Act; or 

        o The transfer of the Surrendered Securities is pursuant to an effective registration statement under the
Securities Act; or 

        o The transfer of the Surrendered Securities is pursuant to another available exemption from the registration
requirement of the Securities Act; and unless the box below is checked, the undersigned confirms that, to the undersigned's knowledge, such Securities are not being transferred to an "affiliate" of
the Company as defined in Rule 144 under the Securities Act (an "Affiliate"). 

        o The transferee is an Affiliate of the Company. 

	DATE:	 	 	 	 
	 	 	
	 	
 Signature(s)

        (If
the registered owner is a corporation, partnership or fiduciary, the title of the Person signing on behalf of such registered owner must be stated.) 

	

Signature Guarantee	
 	

 
	

 Participant in a Recognized Signature

Guarantee Medallion Program	
 	

 
	

By:	
 	

 Authorized Signatory	
 	

 

B-2-1

QuickLinks

INDENTURE

TABLE OF CONTENTSExhibit 10.21

 

 

LEASE AGREEMENT

 

THIS LEASE AGREEMENT (“Lease”) is made this 6th day of July,
2000, by and between the “Landlord” and the ‘Tenant” hereafter set forth.

 

WITNESSETH:

 

1.             DEFINITIONS.  In addition to the
definitions contained elsewhere in this Lease, the following definitions shall
apply:

 

	
  (a)

  	
   

  	
  Landlord:

  	
   

  	
  Edgewood General Partnership

  
	
   

  	
   

  	
  Address:

  	
   

  	
  1408 North Westshore Boulevard, Suite 512

  
	
   

  	
   

  	
   

  	
   

  	
  Tampa, Florida 33607

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Tenant:

  	
   

  	
  H.R. Logic, Inc.

  
	
   

  	
   

  	
  Address:

  	
   

  	
  1408 North Westshore Boulevard, Suite 604

  
	
   

  	
   

  	
   

  	
   

  	
  Tampa, Florida 33607

  

 

(c)           Premises: 
Suite No. 200 consisting of approximately 3,281 rentable square feet
(which the parties expressly agree are contained in the Premises), on the
attached Exhibit “A” expressly made a part hereof. The Premises are located on
the second floor of the structure, hereinafter called the “Building”, located
at N. Westshore Blvd., Tampa, FL 33607. The parties expressly agree that there
are 3,281 rentable square feet within the Premises and 145,923 rentable square
feet within the Building, despite the fact that such figures may not be
precise. For the purposes of Items 1 (i), and 5, 11 and 15 of this Lease, the
term “Building” includes its appurtenances, and its parking facilities.

 

(d)           “Use of Premises”: General and
Administrative

 

(e)           “Commencement Date”: The later of
December 1, 2000 (“the anticipated Commencement Date”), or the date
Landlord delivers to Tenant possession of the Premises. If, however, Tenant
takes possession of the Premises prior to the anticipated Commencement Date,
then the date Tenant so takes possession shall be the Commencement Date.

 

(f)            “Term”: Not less than thirty six months
commencing on the Commencement Date, this Lease to end on the last day of the
36th calendar month after the Commencement Date. The terms and conditions of this Lease are fully contingent upon the
simultaneous execution of the First Amendment of Lease dated July 7, 2000.

 

(g)           “Rent”: (See also Item 3.) Rent and all other
sums payable by Tenant to Landlord under this Lease, plus any applicable
tax, shall be paid to Landlord, without demand, recoupment, abatement,
deduction or offset, at its office presently located at P.O. Box 22197.
Tampa. Florida 33622. or at such other place as Landlord may hereafter
specify in writing.

 

1

 

	
  YEAR

  	
   

  	
  DATES

  	
   

  	
  *RATE PER

  RSF

  	
   

  	
  ANNUAL

  	
   

  	
  MONTHLY

  	
   

  
	
  Year 1

  	
   

  	
  12/1/00-

  11/30/01

  	
   

  	
  $

  	
  19.25

  	
   

  	
  $

  	
  63,159.25

  	
   

  	
  $

  	
  5,263.27

  	
   

  
	
  Year 2

  	
   

  	
  10/01/01-

  11/30/02

  	
   

  	
  $

  	
  19.75

  	
   

  	
  $

  	
  64,799.75

  	
   

  	
  $

  	
  5,399.98

  	
   

  
	
  Year 3

  	
   

  	
  12/01/02-

  11/30/03

  	
   

  	
  $

  	
  20.25

  	
   

  	
  $

  	
  66,440.25

  	
   

  	
  $

  	
  5,536.69

  	
   

  

 

*Not inclusive of applicable sales tax

 

(h)           “Base Year means the calendar year in which
the Lease commences.

 

(i)            “Operating Expense Base Amount” means the
operating expenses of the Building, as defined at Item 4 hereof, in the Base
Year of this Lease.

 

(j)            “Real
Estate Tax Base Amount” means the total amount of real property taxes on the
Land and Building, as defined at Item 4 hereof, in the Base Year of this Lease.

 

(k)           “Proportionate
Share”: The net rentable area in the Premises (3,281 square feet) divided by
the net rentable area in the Building (145,923 square feet), which equals 2.3
percent If Tenant leases from Landlord any additional space in the Building
pursuant to the terms and provisions of this Lease, then Tenant’s Proportionate
Share shall be increased accordingly.

 

(1)           “Additional
Rent”: As described in Item 3 of this Lease.

 

(m)          “Land”:
Land shall mean real property described in Exhibit D.

 

(n)           “Building”: Building shall mean the
improvements presently or hereafter constructed on the Land.   I

 

2.             PREMISES
AND TERM.  Landlord, in
consideration of the Rent hereinafter reserved to be paid and of the covenants,
conditions and agreements to be kept and performed by Tenant, hereby ‘leases,
lets and demises to Tenant, and Tenant hereby leases and hires from Landlord,
that certain space called the Premises as described above in Item 1,
Section (c).

 

If Landlord, for any reason whatsoever, cannot
deliver possession of the Premises to Tenant on or before the anticipated
Commencement Date, this Lease shall not be void or voidable, nor shall Landlord
be liable to Tenant for any claim, loss or damage resulting therefrom, but, in
that event, there shall be an abatement of Rent and Additional Rent covering
the period between the anticipated Commencement Date and the time when Landlord
can so deliver possession, the date when Landlord can so deliver possession
being deemed to be the “Commencement Date” (Commencement Date). The ending date
of this Lease shall be extended

 

2

 

for
not less than an identical period of time that transpired between the
anticipated Commencement Date and the date thereafter Landlord so delivered
possession (Commencement Date), it being the parties’ intent that this Lease
have not less than a complete Term as described and contemplated in Item 1,
Section (i) above. To this end, if the actual Commencement Date is a day
other than the first day of a particular month, the Term of this Lease shall not
expire until the last day of the last month of the proposed Term as described
in Item 1, Section (g). If the Commencement Date is other than me
anticipated Commencement Date, the parties representatives shall execute a
letter amendment to this Lease (which they are hereby authorized to do) whereby
the Commencement Date and expiration date of this Lease will be specified;
however, their failure to do so shall have no effect on the other contents of
this Lease, such contemplated execution to be merely for clarification
purposes. By occupying the Premises, Tenant shall be conclusively deemed to
have accepted the Premises as complying fully with each, every, any and all of
Landlord’s covenants and obligations with respect to the delivery thereof.
Tenant shall also have the nonexclusive right to use the parking facilities
appurtenant to the Building.

 

3.             RENT. Tenant covenants and agrees to pay without
demand, recoupment, abatement, deduction or offset, to Landlord Rent (and
Additional Rent) for the Premises on or before the first (1st) day of the first
(1st) full calendar month of the Term hereof and on or before the first (1st)
day of each and every successive calendar month thereafter during the full Term
of this Lease, subject to the adjustments as provided hereinafter, along with
any applicable tax, at the current rate of six and three-quarters (6.75%)
percent. In the event the Commencement Date occurs on a day other than the
first (1st) day of a calendar month, the first Rent payment shall be in the
amount of the Rent for one (1) full calendar month, plus the prorated Rent for
the calendar month in which the Term of this Lease commences,’ such payment to
be due on the Commencement Date.

 

Whenever under the terms of this Lease any sum of money is required to
be paid by Tenant in addition to the Rent herein reserved, whether or not such
sum is herein described as “Additional Rent”, or a provision is made for the
collection of said sum as “Additional Rent” said sum shall nevertheless, at
Landlord’s option, if not paid when due, be deemed Additional Rent, and shall
be collectible as such with the first installment of Rent thereafter falling
due hereunder.  In the event any
installment or increment of Rent or Additional Rent payable under this Lease
shall not be paid when due, a “late charge” of five percent (5%) of the amount
overdue may be charged (as Additional Rent) by Landlord for the purpose of
defraying the expense and inconvenience incident to handling such overdue
payment and for the purpose of compensating Landlord for its attendant
inconvenience and loss of cash flow.

 

4.             OPERATING EXPENSE ADJUSTMENTS.  The
Landlord and Tenant each acknowledge that the Rent specified in Item 3 of this
Lease does not provide for increases in operating expenses and real estate
taxes in excess of the Base Year Amounts. Accordingly, during the term of this
Lease, and any extension(s) thereto, beginning with the first calendar year
subsequent to the Base Year, Tenant shall pay to Landlord, as additional rent,
its proportionate share of estimated increases in operating expenses and real
estate taxes over the Base Year amounts.

 

Commencing on January 1 of the calendar year
following the Base Year and continuing on the first day of each calendar month
thereafter until the expiration or other termination of this Lease, Tenant
shall pay to Landlord, as additional monthly rental, an amount equal to
one-twelfth of the Tenant’s Proportionate Share of the amount by which budgeted
operating expenses and real estate taxes for the current calendar year exceeds
the Base Year Amounts. In the event the amount of additional monthly rental
collection hereunder for the preceding twelve month period is less than the
actual excesses for such year, Tenant shall remit the balance thereof to the
Landlord within five (5) days after the receipt of such notice. In the event
the amount of additional monthly rental collection hereunder for the preceding
twelve month period is greater

 

3

 

than
the actual excesses for such period, Landlord shall remit the difference to the
Tenant accompanied by said notice.

 

The term “operating expenses” includes all expenses incurred by
Landlord with respect to the maintenance and operation of the Building of which
the leased “Premises” are a part, including, but not limited to, the following:
maintenance, repair and replacement costs; electricity, fuel, water, sewer, gas
and other utility charges; security, window washing and janitorial services;
trash; landscaping and pest control; management fees, wages and benefits
payable to employees of Landlord whose duties are directly connected with the
operation and-maintenance of the Building; all services, supplies, repairs,
replacements or other expenses for maintaining and operating the Building or
project including parking and common areas; the cost, including interest,
amortized over its useful life, of any capital improvements made to the
Building by Landlord after the date of this lease which is required under any
governmental law or regulation that was not applicable to the Building at the
time it was constructed; the cost, including interest, amortized over its
useful life, of installation of any device or other equipment for the purpose
of improving operating efficiency; all other expenses which would generally be
regarded as operating and maintenance expenses which would reasonably be
amortized over a period not to exceed five years; all insurance premiums
Landlord is required to pay or deems necessary to pay, including public liability
insurance, with respect to the Building. The term operating expenses does not
include the following: repairs, restoration or other work occasioned by fire,
wind, the elements or other casualty; income and franchise taxes of Landlord;
real estate broker’s commissions, attorney’s fees, costs and disbursements and
other expenses incurred in connection with negotiations or disputes with
Tenants, other occupants; advertising expenses and expenses for the renovating
of space for new Tenants; interest or principal payments on any mortgage or
other indebtedness of Landlord; any depreciation allowance or expense; or
operating expenses which are the responsibility of Tenant.

 

The term “Taxes” means the aggregate amount of real property taxes and
assessments taxes, assessed, imposed, or levied by any lawful authority upon
the Land and the Building in any calendar year during the term of this Lease;
and, shall also include administrative costs and contingency fees paid to
independent consultants engaged to negotiate, on behalf of Landlord,
assessments impaired by applicable taxing authorities.

 

If Landlord, in its sole discretion in operating the
Building, chooses to install any energy or labor saving devices, equipment,
fixtures or appliances to or in the Building that otherwise might be considered
a capital expenditure, then Landlord may depreciate the cost of the equipment,
device, appliance or fixture into the Operating Expenses of the Building,
including interest at a reasonable rate, all according to generally accepted
accounting principles applied on a consistent basis.

 

5.             USE OF PREMISES.  The
Premises shall be used by Tenant as described above in Item 1,
Section (d), and for no other business or purpose whatsoever without the
prior written discretionary consent of Landlord. Tenant shall not do or permit
to be done in or about the Premises or Building, nor bring or keep or permit to
be brought or kept therein, anything which is prohibited by, or will in any way
conflict with, any law, statute, ordinance or governmental rule or regulation
now in force or which may hereafter be enacted or promulgated, or which is
presently or hereafter prohibited by any standard form of fire insurance policy
or will presently or hereafter in any way increase the existing rate of or
affect any fire or other insurance upon the Building or any of its contents, or
presently or hereafter cause a cancellation of any insurance policy covering
the Building or any of its contents, or presently or hereafter cause a
cancellation of any insurance policy covering the Building or any part thereof
or any of its contents. Tenant shall not do or permit anything to be done in or
about the Premises or Building, which will presently or hereafter in any way
obstruct or interfere with the rights of other Tenants of the Building, or
injure or annoy them or use or allow to be used the Premises or Building for
any improper, immoral, unlawful or objectionable purpose (as determined by

 

4

 

Landlord);
nor shall Tenant cause, maintain, or permit any nuisance (as determined by
Landlord or by law) in or about the Premises or commit or suffer to be
committed any waste in, on, or about the Premises or Building. Tenant shall be
responsible for all losses and damages to Landlord as a result of Tenant’s
failure to use, occupy and surrender the Premises or Building in strict
accordance with the contents of this Lease, and such responsibility shall
survive the expiration or earlier termination of this Lease. Tenant, at Tenant’s
expense, shall comply with all laws, rules, orders, statutes, ordinances,
directions, regulations and requirements of all federal, state, county and
municipal authorities pertaining to Tenant’s use and occupancy of the Premises
or Building and with the recorded covenants, conditions and restrictions
pertaining thereto, regardless of when they become effective or applicable,
including, without limitation, all applicable federal, state and local laws,
regulations or ordinances pertaining to air and water quality, Hazardous
Materials, waste disposal, air emissions and other environmental matters, all
zoning and other land use matters, and with any direction of any public officer
or officials which shall impose any duty upon Landlord or Tenant with respect
to the use or occupation of the Premises. For the purposes of this Item 5, the
term “Tenant” includes Tenant’s agents, employees, principals, officers,
successors, assigns, subtenants, invitees, contractors and consultants.

 

6.             ASSIGNMENT AND SUBLETTING. Tenant shall not assign the right of
occupancy under this Lease, or any other interest therein, or sublet the
Premises, or any portion thereof, without the prior written consent of
Landlord, which the parties agree may be withheld at Landlord’s sole discretion.
Tenant absolutely shall have no right of assignment or subletting if it is, or
has ever been, in default of this Lease. If Landlord elects to grant its
written consent to any proposed assignment or sublease (whether by Tenant or by
others claiming by or through Tenant), Tenant or such others agree to pay
Landlord an administrative fee in a reasonable amount (but not less than
$150.00), plus attorney’s fees to process and approve such assignment or
sublease, and Landlord may prescribe the substance and form of such assignment
f r sublease.

 

Notwithstanding any assignment of this Lease, or the subletting of the
Premises, or any portion thereof, Tenant shall continue to be fully liable for
the performance of the terms, conditions and covenants of this Lease,
including, but not limited to, the payment of Rent and Additional Rent This-
continuing liability shall be absolute and unconditional and shall remain in
full force and effect without regard to, and shall not be released, discharged,
diminished, reduced or in any other way affected by; (a) any amendment or
modification of, or supplement to, this Lease or any further assignment or
transfer thereof or any further sublease pertaining thereto; or (b) any action
taken or not taken by Landlord against any assignee or subtenants; or (c) any
agreement which modifies any of the rights or obligations of the parties (or
their respective successors) under this Lease; or (d) any agreement which
extends the time within which an obligation under this Lease is to be performed;
or (e) any waiver of the performance of an obligation required under this
Lease; or (f) any failure to enforce any of the obligations set forth in this
Lease. Consent by Landlord to one or more assignments or sublettings shall not
operate as a waiver of Landlord’s rights as to any subsequent assignments or
sublettings. Landlord shall have the additional option, which shall be
exercised by providing Tenant with written notice, of terminating Tenant’s
rights and obligations under this Lease rather than permitting any assignment
or subletting by Tenant, any statement or implication in this Lease or at law
to the contrary notwithstanding.

 

If Landlord permits any assignment or subletting by Tenant and if the
monies (no matter how characterized) received as a result of such assignment or
subletting [when compared to the monies still payable by Tenant to Landlord]
should be greater than would have been received hereunder had not Landlord
permitted such assignment or subletting, then the excess shall be payable by
Tenant to Landlord, it being the parties’ intention that Landlord, and not
Tenant, in consideration for Landlord’s permitting such assignment or
subletting, shall be the party to receive any profit from any such assignment
or subletting. If there are one or more assignments

 

5

 

or
sublettings by Tenant to which Landlord consents, then any and all extension
options to be exercised subsequent to the date of such assignment or subletting
and all options to lease additional space in the Building to be exercised
subsequent to the date of such assignment or subletting are absolutely waived
and terminated at Landlord’s sole discretion. In the event of the transfer and
assignment by Landlord of its interest in this Lease and/or sale of the
Building containing the Premises, either of which it may do at its sole option,
Landlord shall thereby be released from any further obligations hereunder, and
Tenant agrees to look solely to such successor in interest of Landlord for
performance of such obligations. The provisions of Item 35 hereafter dealing
with “Notices” shall be amended to provide the correct names and addresses of
the assignee or subtenant. If Tenant is a partnership or corporation whose
stock is not regularly traded on a bona fide public exchange, and if any
transfer, sale, pledge or other disposition of a partnership interest or the
common stock shall occur which changes the power to vote the majority of
interest in the partnership or of the outstanding capital stock of the company,
such action shall be considered an assignment under the terms of this Lease.
Any breach of this Item 6 by Tenant will constitute an automatic default under
the terms of this Lease, per Item 19 hereof.

 

7.             ACCESS TO THE PREMISES. 
Landlord or its authorized agent or agents shall have the right to enter
upon the Premises at all reasonable times for the purposes of inspecting the
same, preventing waste, making such repairs as Landlord may consider necessary
(but without any obligation to do so except as expressly provided for herein),
and showing the Premises to prospective Tenants, mortgagees and/or purchasers.
If during the last month of the Term, Tenant shall have removed all or
substantially all of Tenant’s property therefrom, Landlord may immediately
enter and alter, renovate and redecorate the Premises without elimination or
abatement of Rent or Additional Rent or incurring liability to Tenant for any
compensation or offsets in Rent or Additional Rent and charges owed and such
acts shall have no effect upon this Lease.

 

8.             LANDLORD’S SERVICES. 
Landlord shall, at its expense, furnish the Premises with (i)
electricity subject to Item (ii) heat and air conditioning during reasonable
and usual business hours (exclusive of Saturday afternoons, Sundays and
nationally-recognized holidays) reasonably required for the occupation of the
Premises, such heat and air-conditioning to be provided by utilizing the
existing Building systems, it being expressly understood and agreed by the parties
that Landlord specifically shall not be liable for any losses or damages of any
nature whatsoever incurred by Tenant due to any failure of the equipment to
function properly, or while it is being repaired, or due to any governmental
laws, regulations or restrictions pertaining to the furnishing or use of such
heat and air-conditioning; (iii) elevator service; (iv) lighting replacement
for customary fluorescent lighting provided by-Landlord; (v) toilet room
supplies; (vi) daily janitor service during the time and in the manner that
such janitor service is customarily furnished in first class office Buildings
in the metropolitan area where the Building is located; (vii) water; and (via)
sewerage. The foregoing services are designated “Building Standard”.

 

Tenant will pay $35.00 per hour per floor (this price is subject to
change) for HVAC after normal business hours which are:

Monday through Friday 8:00 a.m. - 6:00 p.m.

Saturday 8:00 a.m. - 12:00 noon.

 

Tenant agrees that Landlord is only
responsible for Building Standard maintenance and Building Standard services.
If other, more complete or specialty services and maintenance (over Building
Standard) are required, then Tenant solely shall be and is responsible for same
and for any and all expenses and costs of any nature whatsoever associated with
same. To this end, Tenant is and shall be solely responsible for any expenses
and costs of any nature whatsoever associated with, among other things,
maintaining upgraded Tenant improvements in the Premises, replacing
non-Building Standard lighting fixtures and bulbs in the Premises, servicing,

 

6

 

operating
and maintaining any separate and non-Building Standard HVAC systems and
faculties serving the Premises, etc.

 

Landlord shall not be liable for any damages directly or indirectly or
consequentially resulting from, nor shall any Rent or Additional Rent herein
set forth be reduced or abated by reason of, (1) installation, use, or
interruption of use of any equipment in connection with the furnishing of any
of me foregoing services, or (2) failure to furnish, or delay in furnishing,
any such services when such failure or delay is caused by accident or any
condition beyond the reasonable control of Landlord or by the making of
necessary repairs or improvements to the Premises or to the Building or because
of any governmental laws, regulations or restrictions. The temporary failure to
furnish any such services shall not be construed as an eviction of Tenant or
relieve Tenant from the duty of observing and performing each, every, any and
all of the provisions of this Lease.

 

9.             ELECTRICAL OVERLOAD; STRUCTURAL OVERLOAD.

 

(A)          Tenant’s use of electrical services furnished
by Landlord shall be subject to the following:

 

(1)           Tenant’s
electrical equipment shall be restricted to that equipment which individually
does not have a rated capacity greater than .5 kilowatts per hour and/or
require voltage other than 120/208 volts, single phase. Collectively, Tenant’s
equipment shall not have an electrical design load greater than an average of
five (5) watts per square foot (including overhead lighting).

 

(2)           Tenant’s
overhead lighting shall not have a design load greater than an average of two
(2) watts per square foot

 

(3)           If
Tenant’s consumption of electrical services exceeds either the rated capacities
and/or design loads as per subsections (1) and (2) above, then Tenant shall
remove such equipment and/or lighting to achieve compliance within ten (10)
days after receiving notice from Landlord. Or upon receiving Landlord’s prior
written approval, such equipment and/or lighting may remain in the Premises,
subject to the following:

 

(a)           Tenant shall pay for all costs of installations and maintenance of
submeter, wiring, air-conditioning and other items required by Landlord, in
Landlord’s discretion, to accommodate Tenant’s excess design loads and
capacities;

(b)           Tenant shall pay to Landlord, upon demand, the cost of the excess
demand and consumption of electrical service at rates determined by Landlord
which shall be in accordance with any applicable laws; and

(c)           Landlord may, at its option, upon not less than thirty (30) days’ prior
written notice to Tenant, discontinue the availability of such extraordinary
utility service. If Landlord gives any such notice, Tenant will contract
directly with the public utility for the supplying of such utility service to
the Premises.

 

(B)           Tenant shall not place a load upon any floor
of the Premises exceeding 50 pounds per square foot, which such floor was designed
to carry and which may be allowed by law. Landlord reserves the right to
prescribe the weight and position of all heavy equipment and similar items, and
to prescribe the reinforcing necessary, if any, which in the opinion of
Landlord may be required under the circumstances, such reinforcing to be at
Tenant’s pre-paid expense.

 

10.           PARKING AREAS. 
Landlord shall keep and maintain in good condition parking areas that
may be provided. Landlord reserves the right to control the method, manner and
time of parking in parking spaces. Landlord shall not be responsible at all,
any statement or implication elsewhere in this Lease to the contrary
notwithstanding, for the security of the parking areas provided pursuant to
this Lease. Any and all parking charges payable by Tenant, whether to

 

7

 

Landlord or to Landlord’s designate(s), shall
be Additional Rent; furthermore, if Tenant fails to pay duly, fully and timely
such parking charges, Landlord [or its designate(s)] may discontinue, without
notice to Tenant (or anyone else), the availability of ((he parking space(s)
the subject of such parking charges, no matter by whom such parking spaces are
or were. being utilized or are in the future to be utilized, anything to the
contrary elsewhere in this Lease notwithstanding.

 

11.           LEASEHOLD IMPROVEMENTS.  The
Premises are rented “as is”, without
any additional services or improvements to be rendered by Landlord, other than
those services described in Item 8 and such other services or improvements as
may be described in Exhibit “B” attached hereto and expressly made a part
hereof. If Landlord is to additionally alter, remodel, improve, or do any
physical act or thing to the space as presently constituted or as described in Exhibit
“B”, same shall be at the sole expense of Tenant and shall be affected only by
a “Work Order” signed by the parties. 
In the absence of a “Work Order” signed by the parties, Landlord is
under no obligation to make any such alteration, remodeling or improvement or
do any physical act or thing to the space.

 

Any and all extraordinary
(as so determined by Landlord at its sole discretion) expenses and costs of any
nature whatsoever attributable to the installation, maintenance and/or removal
of telephone equipment, computer equipment and the like shall be borne solely
by Tenant.

 

12.           REPAIRS AND MAINTENANCE  .  Landlord will, at its own cost and expense,
except as may be provided elsewhere herein, make necessary repairs of damage to
the Building corridors, lobby, structural members of the Building, and
equipment used to provide the Building Standard services referred to in Item 8,
unless any such damage is caused by acts or omissions of Tenant, its agents
customers, employees, principals, contractors, consultants, assigns, subtenants
or invitees, in which event Tenant will bear the cost of such repairs. Tenant
will allow no maintenance or repairs to be done in, on, to or about the
Premises other than by a licensed contractor (such term to include all degrees
and levels of subcontractors) approved by Landlord in writing prior to any such
maintenance or repairs being undertaken.  
Landlord shall be entitled to require such contractor to be bonded and
insured in such amounts and with such companies as Landlord may in its
discretion prescribe. Tenant will not injure the Premises or the Building but
will maintain the Premises in a clean, attractive, condition and in good
repair, except as to damage to be repaired by Landlord as provided above. Upon
termination of this Lease, Tenant will surrender and deliver the Premises to
Landlord in the same condition in which they existed at the commencement of
this Lease, excepting only ordinary wear and tear and damage arising from any
cause not required to be repaired by Tenant, or Landlord approved alterations
and improvements. This Item 12 shall not apply in the case of damage or
destruction by fire or other casualty which is covered by insurance maintained
by Landlord on the Building (as to which Item 15 hereof shall apply) or damage
resulting from an Eminent Domain taking (as to which Item 17 hereof shall
apply).

 

13.           ALTERATIONS AND IMPROVEMENTS.  Tenant
absolutely shall not make any alterations, additions or improvements to or in
the Building outside the Premises. Furthermore, Tenant shall make no
alterations or improvements (including additions) to or in the Premises without
the prior written approval of Landlord, unless in each instance and for each
such alteration or improvement, Landlord or a contractor approved by Landlord
is hired to do such alterations or improvement. Such approval shall not be
unreasonably withheld in the case of alterations or improvements to the
interior of the Premises if such alterations or improvements are normal for the
use described in Item 1(d) of this Lease, do not adversely affect utility of
the Premises for future Tenants, do not alter the exterior of the Building, and
are accompanied by insurance satisfactory to Landlord and by prepayment or bond
provisions or waivers by the contractor in form satisfactory to Landlord
sufficient to protect the Building from claims of lien of any sort; otherwise,
such approval may be withheld for any reason whatsoever. Furthermore, such
alterations or improvements absolutely shall not affect the mechanical,
plumbing, electrical and HVAC systems in the Premises or the Building and shall
not be of a structural nature.

 

8

 

Tenant
shall conduct its work in such a manner as to maintain harmonious labor
relations and as not to interfere with the operation of the Building and shall,
prior to the commencement of the work, submit to Landlord copies of all
necessary permits. Landlord reserves the right to have final approval of the
contractors hired by Tenant. All such contractors hired by Tenant shall be, at
levels and coverage’s prescribed by Landlord, licenses, bonded and insured, and
Landlord may require evidence of same, which Tenant agrees to secure and
provide Landlord prior to the commencement of any work by such contractors. All
alterations or improvements, whether temporary or permanent in character, made
in or upon the Premises, either by Landlord or Tenant, shall be Landlord’s
properly and at the end of the term hereof shall remain in or upon the Premises
without compensation to Tenant. If, however, Landlord shall request in writing,
Tenant will, prior to expiration or earlier termination of this Lease, remove
any and all alterations, and improvements placed or installed by Tenant in the
Premises, and will repair any damage caused by such removal. All of Tenant’s
furniture, movable trade fixtures and equipment not attached to the Building
may be removed by Tenant at the expiration of this Lease, if Tenant so elects,
and shall be so removed, if required by Landlord, and, if not so removed,
shall, at the option of Landlord, become the property of Landlord. To the
extent Tenant makes any alterations or improvements and/or to the extent
Landlord on behalf of Tenant under an “Extra Work Agreement” makes such alterations
or improvements, and as a result thereof it can be determined that thereupon
was caused an increase in real estate taxes or insurance premiums, then Tenant
shall be responsible for reimbursing Landlord for such increases as Landlord
may pay.

 

14.           INDEMNITY.  Landlord shall not be liable
for, and Tenant will indemnify and save Landlord (and Landlord’s officers,
principals, agents, employees and insurers) harmless of and from, each, every,
and all fines, suits, damages, claims, demands, losses and actions (including
attorney’s fees) for any injury to person or damage to or loss of property on
or about the Premises and Building caused by the negligence or misconduct or
breach of this Lease by Tenant, its employees, agents, principals, contractors,
consultants, assigns, subtenants, invitees or by any other person entering the
Premises or the Building under express or implied invitation of Tenant, or
arising out of Tenant’s use of the Premises. Landlord absolutely shall not be
liable or responsible for any loss or damage to any property or the death or
injury to any person occasioned by theft, crime (of any nature whatsoever),
fire, act of God, public enemy, injunction, riot, strike, insurrection, war,
court order, requisition of governmental body or authority, by other Tenants of
the Building or by any other matter beyond the absolute control of Landlord, or
for any injury or damage or inconvenience which may arise through repair or
alteration of any part of the Building, or failure to make repairs, or from any
cause whatsoever except Landlord’s negligence or intentional act. It is
specifically understood and agreed that there shall be no personal liability on
Landlord (nor on Landlord’s officers, principals, agents and employees) with
respect to any of the covenants, conditions or provisions of this Lease; in me
event of a breach or default by Landlord of any of its obligations under this
Lease, Tenant shall look solely to the equity of Landlord in the Building for
the satisfaction of any and all of Tenant’s right and remedies.

 

15.           DAMAGE BY FIRE OR THE ELEMENTS.  In
the event that the Building is totally destroyed by fire, tornado or other
casualty, or in the event the Premises or Building is so damaged that, within
Landlord’s discretion, rebuilding or repairs cannot be completed within one
hundred eighty (180) days after the date of such damage, Landlord, within sixty
(60) days of the casualty, shall give Tenant written notice of the estimated
time for completion or of Landlord’s intent not to repair. In such event,
either Landlord or Tenant may, at its option, by written notice to the other
given not more than thirty (30) days after the date of such fire or other
casualty, terminate this Lease. In such event, the Rent and Additional Rent
shall be abated during the unexpired portion of this Lease effective with the
date of such fire or other casualty.

 

In the event the Building or the Premises are damaged by fire, tornado,
or other casualty covered by Landlord’s insurance but only to such extent that
rebuilding or repairs can be completed within one hundred eighty (180) days
after the date of such damage, or if the damage should be more serious but
neither Landlord nor Tenant elects to terminate this Lease, then

 

9

 

Landlord
shall, within thirty (30) days after the date of such damage or such election,
commence to rebuild or repair the Building and/or the Premises and shall
proceed with reasonable diligence to restore the Building and/or the Premises
to substantially the same condition in which it/they was/were immediately prior
to the happening of the casualty, except that Landlord shall not be required to
rebuild, repair or replace any part of the furniture, equipment, fixtures and
other improvements which may have been placed by Tenant or other Tenants or
occupants within the Building or Premises. Landlord shall, unless such damage
is deemed by Landlord to be the result of the negligence or willful misconduct
of Tenant or Tenant’s employees, agents, principals, contractors,
consultants, assigns, subtenants or invitees, allow Tenant a fair diminution of
Rent and Additional Rent during the time of such rebuilding or repairs. In the
event any mortgagee, or the holder of any deed of trust, security agreement or
mortgage on the Building, requires that the insurance proceeds be used to
retire the mortgage debt, Landlord shall have no obligation to rebuild and this
Lease shall terminate upon notice to Tenant. Any insurance which may be carried
by Landlord or by Tenant against loss or damage to the Premises or its contents
shall be for the sole benefit of the party carrying such insurance and under
its sole control.

 

16.           BUILDINGS
RULES AND REGULATIONS.  Tenant shall
faithfully observe and comply with the Rules and Regulations printed on or
annexed to (and expressly made a part of) this Lease and all reasonable
modifications of and additions thereto from time to time put into effect by
Landlord. Landlord shall not be responsible to Tenant for the nonperformance of
any of said Rules and Regulations by any other Tenant, occupant, invitee or
visitor of the Building. Tenant shall and does hereby have an affirmative
obligation (to include indemnification of Landlord, per Item 14 hereof) to
notify its agents, employees, principals, assigns, subtenants and invitees of
the contents of such Rules and Regulations and of this Lease and to assure
their compliance therewith.

 

17.         EMINENT DOMAIN.  If the whole or a portion of the Building is
taken for any public or quasi- public use under any statute or by right of
Eminent Domain or private purchase in lieu thereof, then at Landlord’s option,
but not otherwise, this Lease, the Term hereby demised and each, every, any and
all rights of Tenant hereunder shall immediately cease and terminate and the
Rent and Additional Rent shall be adjusted as of the date of such termination.
Tenant shall be entitled to no part of the award made for such condemnation (or
other taking) or the purchase price thereof. Nevertheless, anything to the
contrary notwithstanding, likewise at Landlord’s option, but not otherwise, if
the Premises are unaffected by such condemnation (or other taking), then this
Lease and each and every one of its provisions shall continue in full force and
effect Should by Eminent Domain the Tenants Premises be made unusable and or
unable to be occupied then the Tenant shall have the right to terminate this
Lease Agreement.

 

18.           SIGNS
AND ADVERTISING.  Without the prior
written approval of Landlord, which may be withheld at Landlord’s discretion,
Tenant shall not permit the painting or display of any signs, placard,
lettering, or advertising material of any kind on or near the exterior of the
Premises or the Building. Notwithstanding the foregoing, Tenant may, with
Landlord’s prior approval, display Tenant’s name on or near the entrance to the
Premises, in a Building-standard manner prescribed by Landlord.

 

19.           TENANT’S
DEFAULT.  The happening, of any one
or more of the following events, shall constitute a default hereunder:

 

a)     Tenant’s failure to pay the
Rent, Additional Rent, or any other sums (no matter how characterized) payable
hereunder for a period of three (3) days after written notice by Landlord;

 

b)    Tenant’s failure to observe,
keep or perform any of the other terms, covenants, agreements or conditions of
this Lease or in the Building Rules and Regulations for a period of ten (10)
days after written notice by Landlord;

 

10

 

c)     The insolvency of Tenant;

 

d)     Tenant’s making an assignment
for the benefit of creditors;

 

e)     A receiver or trustee being
appointed for Tenant or a substantial portion of Tenant’s assets;

 

f)      Tenant’s voluntarily
petitioning for relief under, or otherwise seeking the benefit of, any bankruptcy, reorganization,
arrangement or insolvency law;

 

g)     Tenant’s deserting, vacating
or abandoning any portion of the Premises or attempting to mortgage, pledge or
otherwise encumber-in any way its interest hereunder;

 

h)     Tenant’s interest under this
Lease being sold under execution or other legal process;

 

i)      Tenant’s interest under this
Lease being affected, modified or altered by any unauthorized assignment or
subletting or by operation of law;

 

j)      Any of the goods or chattels
of Tenant used in, or incident to, the operation of Tenant’s business at, from
or in the Premises being seized, sequestered, or impounded by virtue of, or
under authority of, any legal proceeding;

 

k)     If Tenant shall be late in
the payment of any sums due hereunder as rent or additional rent three (3)
times in any twelve month period;

 

l)      Tenant’s failure to operate
continuously during normal business hours from the Premises in a fully-staffed,
fully-equipped manner and/or as contemplated by Item 1(d) of this Lease; or

 

m)    Tenant’s failure to take
occupancy of the Premises when same is tendered by Landlord to Tenant; or

 

n)     Any attempted assignment or
submitting of this Lease without Landlord’s written consent.

 

In the event of any of the foregoing
happenings, Landlord, as its election, may exercise any one or more of the
following options, the exercise of any of which shall not be deemed to preclude
the exercise of any others herein listed or otherwise provided or permitted by
statute or general law at the same time or in subsequent times or actions (all
of which are cumulative):

 

1.     Terminate Tenant’s rights to possession under this Lease and re-enter
and retake possession of the Premises and relet or attempt to relet the
Premises on behalf of Tenant at such rent and under such terms and conditions
as Landlord may deem best under the circumstances for the purpose of reducing
Tenant’s liability. Landlord shall not be deemed to have thereby accepted a
surrender of the Premises, and Tenant shall remain rally liable for any and all
Rent, Additional Rent, or other sums (no matter how characterized) due under
this Lease and for all damages suffered by Landlord because of Tenant’s breach
of any of the covenants of this Lease.

 

2.     Declare this Lease to be terminated and ended, and re-enter upon and
take possession of the Premises whereupon all right, title and interest of
Tenant in the Premises shall end.

 

11

 

3.     Accelerate and declare the entire remaining unpaid Rent and Additional
Rent for the balance of this Lease to be immediately due and payable forthwith,
and may at once, take legal action to recover and collect the same

 

No re-entry or retaking possession of the Premises by Landlord shall be
construed as an election on its part to terminate this Lease, unless a specific
written notice of such intention is given to Tenant, nor shall pursuit of any
remedy herein provided constitute a forfeiture or waiver of any Rent,
Additional Rent or other monies due to Landlord hereunder or of any damages
accruing to Landlord by reason of the violations of any of the terms,
provisions and covenants herein contained. Landlord’s acceptance of Rent or
Additional Rent or other monies following any event of default hereunder shall
not be construed as Landlord’s waiver of such event of default. No forbearance
by Landlord of action upon any violation or breach of any of the terms,
provisions, and covenants herein contained shall be deemed or construed to
constitute a waiver of the terms, provisions, and covenants herein contained,
Forbearance by Landlord to enforce one or more of the remedies herein provided
upon an event of default shall not be deemed or construed to constitute a
waiver of any other violation or default. Legal actions to recover for loss or
damage that Landlord may suffer by reason of termination of this Lease or the
deficiency from any reletting as provided for above shall include the expense
of repossession or reletting and any repairs or remodeling undertaken by
Landlord following repossession.

 

THE PARTIES HERETO SHALL, AND THEY HEREBY DO, WAIVE TRIAL BY JURY IN
ANY ACTION, PROCEEDING, OR COUNTERCLAIM BROUGHT BY EITHER OF THE PARTIES HERETO
AGAINST THE OTHER ON ACCOUNT OF ANY MATTERS WHATSOEVER ARISING OUT OF, OR IN
ANY WAY CONNECTED, WITH THIS LEASE, THE RELATIONSHIP OF LANDLORD AND TENANT,
TENANT’S USE OR OCCUPANCY OF THE PREMISES AND/OR BUILDING, AND/OR CLAM OF LOSS,
INJURY OR DAMAGE. THE COVENANTS CONTAINED HEREIN ARE INDEPENDENT. In the event
Landlord commences any proceeding to enforce this Lease or the Landlord/Tenant relationship
between the parties or for nonpayment of Rent, Additional Rent or other monies
due Landlord from Tenant under this Lease, Tenant will not interpose any
counterclaim of whatever nature or description in any such proceedings. In the
event Tenant must, because of applicable court rules, interpose any
counterclaim or other claim against Landlord in such proceedings, Landlord and
Tenant covenant and agree that, in addition to any other lawful remedy of
Landlord, upon motion of Landlord, such counterclaim or other claim asserted by
Tenant shall be severed out of the proceedings instituted by Landlord (and, if
necessary, transferred to a court of different jurisdiction), and the
proceedings instituted by Landlord may proceed to final judgment separately and
apart from and without consolidation with or reference to the status of each
counterclaim or any other claim asserted by Tenant.

 

The parties hereto agree that any and all suits for any and every
breach of this Lease shall be instituted and maintained only in those courts of
competent jurisdiction in the county or municipality in which the Building is
located and Tenant, hereby submits to the jurisdiction of Florida courts. In
the event of litigation by and between the parties [or their respective successor(s)]
to enforce the terms and provisions of this Lease, the prevailing party shall
be entitled to recover from the non-prevailing party the prevailing party’s
reasonable attorney’s fees and court costs, all through final appeal.

 

Time is of the essence of this Lease; and in
case Tenant shall fail to perform the covenants and obligations on its part to
be performed at the time fixed for the performance of such respective covenants
and obligations by the provisions of this Lease, Landlord may declare Tenant to
be in default of such Lease.

 

20.           CONTRACTUAL LANDLORD’S LIEN. 
Landlord shall have, at all times, a valid security interest to secure
payment of all Rent, Additional Rent and other sums of money

 

12

 

becoming due hereunder from
Tenant, and to secure payment of any damages or loss which Landlord may suffer
by reason of the breach by Tenant of any covenant, agreement or condition
contained herein, upon all goods, wares, equipment, fixtures, furniture, improvements
and other personal property or Tenant presently or which may hereinafter be
situated in the Premises, and all proceeds therefrom, and such property shall
not be removed therefrom without consent of Landlord until all arrearages in
Rent and Additional Rent as well as any and all other sums of money then due to
Landlord hereunder, shall first have been paid and discharged and all of he
covenants, agreements, and conditions hereof have been fully complied with and
performed by Tenant. In consideration of this Lease, upon the occurrence of an
event of default by Tenant, Landlord may, in addition to any other remedies
provided herein, enter upon the Premises and take possession of any and all
goods, wares, equipment, fixtures, furniture, improvements, and other personal
property of Tenant situated on or in the Premises, without liability for
trespass or conversion, and sell the same at public or private sale, with or
without having such property at the sale, after giving Tenant reasonable notice
of the time and place of any public sale or of the time after which any private
sale is to be made, at which sale Landlord or its assigns may purchase unless
otherwise prohibited by law. Unless otherwise provided by law, and without
intending to exclude any other manner of giving Tenant reasonable notice, the
requirement of reasonable notice shall be met if such notice is given in the
manner prescribed in Item 35 dealing with “Notices” in this Lease at least five
(5) days before the time of sale. The proceeds from any such disposition, less
any and all expenses connected with the taking of possession, holding and
selling of the property (including reasonable attorney’s fees and other
expenses), shall be applied as a credit against the indebtedness secured by the
security interest granted in this Item 20. Any surplus shall be paid to Tenant
or as otherwise required by law, and Tenant shall pay any deficiencies
forthwith. Upon request by Landlord, Tenant agrees to execute and deliver to
Landlord a financing statement in form sufficient to perfect the security
interest oaf Landlord in the aforementioned property and proceeds thereof under
the provisions of the Uniform Commercial Code then in force in the State of
Florida.

 

21.           SUBORDINATION.  In
consideration of the execution of this Lease by Landlord, Tenant accepts this
Lease subject to any deeds of conveyance and any deeds of trust, master leases,
security interests or mortgages and all renewals, modifications, extensions,
spreads, consolidations and replacements of the foregoing which might now or
hereafter constitute a lien upon the Building (or the land upon which it is
situated) or improvements therein or thereon or upon the Premises and to zoning
ordinances and other Building and fire ordinances and governmental regulations
relating to the use of the property (hereinafter collectively referred to as a
“superior interest”. Although no instrument or act on the part of Tenant shall
be necessary to effectuate such subordination, Tenant shall, nevertheless, for
the purpose of confirmation, at any time hereafter, on demand in the form(s)
prescribed by Landlord, execute any instruments, estoppel certificates,
releases or other documents that may be requested or required by any purchaser
or any holder of any superior interest for the purpose of subjecting and
subordinating this Lease to such deed of conveyance or to the lien of any such
deed of trust, master lease, security interest, mortgage, or superior interest.
Tenant hereby appoints Landlord attorney-in-fact, irrevocably, to execute and
deliver any such instrument or document for Tenant should Tenant fail or refuse
to do so.

 

13

 

22.           QUIET ENJOYMENT. Provided Tenant has fully, duly and timely
performed all of the terms, covenants, agreements and conditions of this Lease
on its part to be performed, including the payment of Rent, Additional Rent and
all other sums due hereunder, Tenant shall peaceably and quietly hold and enjoy
the Premises, except as described in Item 21 above, against Landlord and all
persons claiming by, through or under Landlord, for the Term (as may be
extended) herein described, subject to me provisions and conditions of this
Lease.

 

23.           SECURITY DEPOSIT. 
Upon Tenant’s execution of this Lease, Tenant shall pay a security
deposit of five thousand nine hundred ten dollars and forty-two cents
($5,910.42) (which equates to the amount of the last month’s rent) for the
performance by Tenant of all the terms, covenants and conditions of this Lease
upon Tenant’s part to be performed. Unless required to do so by law, Landlord
shall have no obligation to segregate such security deposit from any other
funds of Landlord, and interest earned on such security deposit, if any, shall
belong to Landlord.   Security deposits
shall not be considered advance payments of Rent or a measure of Landlord’s
damages, in the case of a default by Tenant. The security deposit shall be
returned to Tenant within thirty (30) days after the Expiration Date, provided
Tenant has fully performed its obligations hereunder. Regardless of any
permitted assignment of this Lease by Tenant, Landlord may return the security
deposit to the original Tenant in the absence of evidence satisfactory to
Landlord of an assignment of the right to receive the security deposit or the
balance thereof, which shall satisfy in full Landlord’s obligation to return
the security deposit. Landlord shall have the right to apply any part of said
security deposit to cure any default of Tenant and if Landlord does so, Tenant
shall upon demand deposit with the Landlord the amount so applied so that
Landlord shall have the full security deposit on deposit at all times during
the Term of this Lease. In the event of a sale or lease of the Building subject
to this Lease, Landlord shall transfer the security deposit to the Purchaser or
lessee, and Landlord shall thereupon be released from all liability for the
return of such security deposit and Tenant shall look solely to the successor
Landlord for the return of the security deposit. This provision shall apply to
every transfer or assignment made of the security deposit to a successor
Landlord. The security deposit shall not be assigned or encumbered by Tenant
without the prior written consent of Landlord and any such unapproved assignment
or encumbrance shall be void.

 

24.           MECHANIC’S LIENS. 
Tenant is prohibited from making, and agrees not to make, alterations in
the Premises, except as permitted by Item 13, and Tenant shall not permit any
mechanic’s lien or liens to be placed upon the Premises or the Building or
improvements thereon during the Term (as may be extended) hereof caused by or
resulting from any work performed, materials furnished or obligation incurred
by or at the request of Tenant, and in the case of the filing of any
such lien, Tenant will promptly pay or statutorily bond same. If default in
payment or statutory bonding thereof shall continue for ten (10) days after
written notice thereof from Landlord to Tenant, Landlord shall have the right
and privilege, at Landlord’s option, of paying the same or any portion thereof
without inquiry as to the validity thereof, and any amounts so paid, including
expenses, interest, and attorney’s fees, shall be so much additional
indebtedness hereunder due from Tenant to Landlord and shall be repaid to
Landlord immediately on rendition of a bill therefor, together with interest
per annum at the maximum rate permitted by law until repaid, and if not so paid
within ten (10) days of the rendition of such bill, shall constitute default under
Item 19 hereof.

 

The interest of Landlord shall
not be subject to liens for improvements made by Tenant in or to the Premises
or the Building. Tenant shall notify every contractor making such improvements
of the provision set forth in the immediately preceding sentence of this
paragraph. The parties agree, should Landlord so request, to execute,
acknowledge and deliver without charge to the other a Memorandum of Lease in
recordable form containing a confirmation that the interest of Landlord (as well
as those parties holding interests superior to, or inferior to, Landlord) shall
not be subject to liens for improvements made by Tenant to the Premises or the
Building.

 

14

 

25.           FORCE
MAJEURE.  Whenever a period of time is herein
prescribed for action to be taken by Landlord, Landlord shall not be liable or
responsible for, and there shall be excluded from the computation for any such
period of time, any delays due to strikes, riots, acts of God, shortages of
labor or material, theft, crime, fire, public enemy, injunction, insurrection,
court order, requisition of governmental body or authority, war, governmental
laws, regulations or restrictions or any other causes of any kind whatsoever
which are beyond the absolute control of Landlord.

 

26.           SEVERABILITY.  If any clause or provision of this Lease is
illegal, invalid or unenforceable under present or future laws effective during
the Term (as may be extended) of this Lease, then and in that event, it is the
intention of the parties hereto that the remainder of this Lease shall not be
affected thereby.

 

27.           HOLDING
OVER.  The failure of Tenant
to surrender the Premises on the date provided herein for the expiration of the
Term (as may have been theretofore extended) of this Lease (or at the time this
Lease may be terminated otherwise by Landlord), and the subsequent holding over
by Tenant, with or without the consent of Landlord, shall result in the
creation of a tenancy at will at double the Rent payable at the time of the
date provided herein for the expiration of this Lease or at the time this Lease
may be terminated otherwise by Landlord. This provision does not give Tenant
any right to hold over at the expiration of the Term (as may have been
heretofore extended) of this Lease, and shall not be deemed, the parties agree,
to be a renewal of the Lease Term (as may have been heretofore extended),
either by operation of law or otherwise.

 

28.           RELOCATION.  If the premises consist of less than two
thousand five hundred (2,500) square feet, Landlord may at any time during the
Term (as may be extended) of this Lease relocate Tenant and substitute for the
Premises other space (which would then become the “Premises” for the purpose of
this Lease) in the Building. The parties expressly agree that Landlord shall
pay the reasonable physical moving costs of such relocation, but shall not be
responsible for any other losses, expenses, costs, damage or injuries of any
nature whatsoever. Tenant’s new space shall be comparable to the Premises
hereby leased. Tenant shall relocate within thirty (30) days (or such
additional time as Landlord may direct) of Landlord’s written notice to Tenant
that Tenant do so, Tenant’s failure to relocate timely shall be a Default (see
Item 19 of this Lease), no curative notice of any nature (after the expiration
of such 30 day or additional period) to be due Tenant from Landlord. Upon such
a Default by Tenant, Landlord shall have all the rights and remedies described
in said Item 19.

 

29.           RENT
SEPARATE COVENANT.  Tenant
shall not for any reason withhold or reduce Tenant’s required payments of Rent,
Additional Rent and other charges provided in the Lease, it being expressly
understood and agreed contractually by the parties that the payment of Rent and
Additional Rent is a contractual covenant by Tenant that is independent of the
other covenants of the parties under this Lease.

 

30.           JOINT AND SEVERAL LIABILITY; CHANGE IN
BUSINESS FORM.  If two or more
individuals, corporations, partnerships, or other business associations (or any
combination of two or more thereof) shall sign this Lease as Tenant, the
liability of each such individual, corporation, partnership or other business
association to pay Rent and Additional Rent and perform all other obligations hereunder
shall be deemed to be joint and several. In like manner, if Tenant is a
partnership or other business association, the members of which are, by virtue
of statute or general law, subject to personal liability, the liability of each
such member shall be joint and several. Tenant may not and shall not change or
convert its business form and/or composition in any way whatsoever without
Landlord’s prior, written and solely discretionary consent.

 

31.           ABSENCE OF OPTION.  The
submission of this Lease for examination does not constitute a reservation of
or option for the Premises, and this Lease becomes effective only upon
execution and delivery thereof by Landlord.

 

15

 

32.           CORPORATE TENANCY.  If
Tenant is a corporation, the undersigned officer of Tenant hereby warrants and
certifies to Landlord that Tenant is a corporation in good standing and is
authorized to do business in the State of Florida. The undersigned officer of
Tenant hereby further warrants and certifies to Landlord that he or she, as
such officer, is authorized and empowered to bind the corporation to the terms
of this Lease by his or her signature thereto. Landlord, before it accepts and
delivers this Lease, may require Tenant to supply it with a certified copy of
the corporate resolution authorizing the execution of this Lease by Tenant. If
Tenant is a corporation (other than one whose shares are regularly and publicly
traded on a recognized stock exchange), Tenant represents that the ownership
and power to vote its entire outstanding capital stock belongs to and is vested
in the officer or officers executing this Lease or members of his, her or their
immediate family. If there shall occur any change in the ownership of and/or
power to vote the majority of the outstanding capital stock of Tenant, whether
such change of ownership by sale, assignment, bequest, inheritance, operation
of law or otherwise, without the prior written discretionary consent of
Landlord, then Landlord shall have the option to terminate this Lease upon
thirty (30) days’ written notice to Tenant so stating, furthermore, Tenant
shall have an affirmative obligation to notify immediately Landlord of any such
change.

 

33.           BROKERAGE COMMISSION. 
Carter & Associates, L.L.C. d/b/a Carter & Associates, L.L.C.,
L.C., a Georgia L.L.C., (“Carter”) has represented Landlord in connection with
this Lease. Carter shall be paid a commission by Landlord pursuant to the terms
of a separate agreement. Tenant warrants that there are no other claims aside
from those stated above for broker’s commissions or finder’s fees in connection
with its execution of this Lease and agrees to indemnify and save Landlord
completely harmless from any liability that may arise from such claim,
including reasonable attorney’s fees.

 

34.           LANDLORD’S DEFAULT. 
Landlord shall in no event be charged with default in the performance of
any of its obligations under this Lease unless and until Landlord shall have
failed to perform such obligations within ten (10) days (or within such
additional time as is reasonably required to remedy any such default) after
written notice to Landlord by Tenant properly specifying and detailing the
particulars of wherein and whereby Tenant claims Landlord has failed to perform
any such obligations. If the holder of record of the first mortgage covering
the Premises shall have given prior written notice to Tenant that it is the
holder of such first mortgage and such notice includes the address at which
notices to such mortgagee are to be sent, then Tenant shall give such
mortgagees notice simultaneously with any notice given to Landlord to correct
any default of Landlord as herein above provided. Such mortgagee shall have the
right within thirty (30) days (or within such additional time as is reasonably
required to correct any such default) after receipt of such notice to correct
or remedy such default before Tenant may take any action under this Lease by reason of such default. Any
notice of default given Landlord by Tenant shall be null and void unless
simultaneous notice has been given by Tenant to said first mortgagee. It is
specifically understood and agreed, anything in this Lease to the contrary
notwithstanding, that there shall be no personal liability on Landlord (nor on
Landlord’s officers, principals, agents and employees) with respect to any of
the covenants, conditions or provisions of this Lease; in the event of a breach
or default by Landlord of any of its obligations under this Lease; Tenant shall
look solely to the equity of Landlord in the Building for the satisfaction of
Tenant’s remedies, and in absolutely no event shall Landlord be liable for
prospective profits or special, indirect, or consequential damages. Likewise,
anything in this Lease to the contrary notwithstanding, in no event shall
Tenant have the right to terminate this Lease as a result of any default by
Landlord, but rather, Tenant’s remedies against Landlord shall be solely
limited to a claim for damages and/or a claim for injunction except for as
provided for in Paragraphs 15 and 17.

 

35.           NOTICES.  Any notice or document required or permitted
to be delivered hereunder shall be deemed to be delivered or given when (a)
actually received or (b) signed for or “refused” as indicated on the postal
service return receipt. Delivery shall and must be by personal delivery or

 

16

 

by United States mail, postage prepaid, certified or registered mail,
addressed to the parties hereto at the respective address set out opposite
their names below, or at such other address as they may hereafter specif6y by
written notice delivered in accordance herewith:

 

	
  LANDLORD:

  	
   

  	
  EDGEWORD GENERAL PARTNERSHIP

  
	
   

  	
   

  	
  c/o Carter & Associates

  
	
   

  	
   

  	
  1408 North Westshore Boulevard, Suite 512

  
	
   

  	
   

  	
  Tampa, Florida 33607

  
	
   

  	
   

  	
   

  
	
  TENANT:

  	
   

  	
  HR Logic, Inc.

  
	
   

  	
   

  	
  1408 North Westshore Boulevard, Suite 200

  
	
   

  	
   

  	
  Tampa, Florida 33607

  
	
   

  	
   

  	
   

  
	
  COPY TO:

  	
   

  	
  HR Logic, Inc.

  
	
   

  	
   

  	
  Attn: Christina Harris

  
	
   

  	
   

  	
  402 43rd Street

  
	
   

  	
   

  	
  West Bradenton, Florida
  34209

  

 

36.           INSURANCE.  Tenant shall not conduct or permit to be conducted any activity,
or place any equipment, materials or other items in, on or about the Premises
or the Building, which will in any way increase the rate of fire or liability
or casualty insurance on the Building. Should Tenant fail to comply with the
foregoing covenant on its part to be performed, Tenant shall reimburse Landlord
for such increased amount upon written demand therefor from Landlord, the same
to be considered Additional Rent payable hereunder.

 

Tenant
shall, at Tenant’s sole expense, obtain and keep in force at all times during
the Term (as maybe extended) of this Lease comprehensive general liability
insurance, including property damage, on an occurrence basis, with limits of
not less than One Million Dollars ($1,000,000.00) combined Single limit,
insuring Landlord and Tenant against any liability arising out of the
ownership, use, occupancy or maintenance of the Premises and all areas
appurtenant thereto, with Landlord named as an additional insured. The limit of
said insurance shall not, however, limit the liability of Tenant hereunder.
Tenant may carry said insurance under a blanket policy, provided an endorsement
naming Landlord as an additional insured is attached thereto. Tenant shall
furnish Landlord with a Certificate of Insurance, confirming that Landlord has
been named as an additional insured and providing for written notice to
Landlord in the event of any change or termination in the maintenance of such
insurance.

 

Tenant
shall maintain insurance upon all property in the Premises owned by Tenant or
for which Tenant is legally liable. Tenant shall maintain insurance against
such other perils and in such amounts as Landlord may in writing from time to
time require. The insurance required to be obtained and maintained under this
Lease shall be with a company or companies licensed to issue the relevant
insurance and licensed to do business in the State of Florida. Such insurance
company or companies shall each have a policyholder’s rating of no less that
“A” in the most recent edition of Best’s Insurance Reports. No policy shall be
cancelable or subject to reduction of coverage except after thirty (30) days’
prior written notice to Landlord. All policies of insurance maintained by
Tenant shall be in a form, and shall have a substance, acceptable to Landlord
with satisfactory evidence that all premiums have been paid. Tenant agrees not
to

 

17

 

violate or permit to be
violated any of the conditions of provisions of the insurance policies required
to be furnished hereunder, and agrees to promptly notify Landlord of any fire,
loss or other casualty. If Tenant fails to procure and maintain insurance as
required hereunder, Landlord may do so, and Tenant shall, on written demand, as
Additional Rent, reimburse Landlord for all monies expended by Landlord to
procure and maintain such insurance within five (5) days of the receipt of such
demand.

 

Tenant
hereby waives and releases Landlord of and from any and all liabilities, claims
and losses for which Landlord is or may be held liable to the extent Tenant
receives or is entitled to receive insurance proceeds on account thereof. .

 

Upon
Landlord’s written request for same, Tenant will provide Landlord with written
evidence of Tenant’s compliance with its obligations under this Item 36.

 

37.           RECORDING. 
This Lease shall not be recorded without Landlord’s prior written
discretionary consent.

 

38.           STATUTORILY
MANDATED NOTIFICATION. As
required by F.S. 404.056(8), Landlord hereby notifies Tenant as follows: “RADON
GAS: Radon is a naturally occurring radioactive gas that, when it has
accumulated in a Building in sufficient quantities, may present health risks to
persons who are exposed to it over time. Levels of radon that exceed federal
and state guidelines have been found in Buildings in Florida. Additional
information regarding radon and radon testing may be obtained from your county
public health unit.”

 

39.           NON-DISCLOSURE. 
Tenant agrees that it will not divulge or disclose to third parties the
terms, provisions and conditions of this Lease with the sole exception being to
Tenant’s accounting firm. Tenant’s breach of this Item 39 shall constitute a
Default under Item 19 of this Lease, no curative notice to Tenant from Landlord
being required.

 

40.           HAZARDOUS MATERIALS. 
Tenant shall not cause or permit any Hazardous Materials (as hereinafter
defined) to be brought upon, kept or used in or about the Premises or the
Building by Tenant, its agents, principals, employees, assigns, subtenants,
contractors, consultants or invitees without prior written consent of Landlord,
which consent may be withheld for any reason whatsoever or for no reason at
all. If Tenant breaches the obligations stated in the immediately preceding
sentence, or if the presence of Hazardous Material on the Premises or around
the Building caused or permitted by Tenant (or the aforesaid others) results in
contamination of the Premises or the Building or the surrounding area(s), or if
contamination of the Premises or the Building or the surrounding area(s) by
Hazardous Material otherwise occurs for which Tenant is legally, actually or
factually liable or responsible to Landlord (or any party claiming by, through
or under Landlord) for damages, losses, costs or expenses resulting therefrom,
then Tenant shall fully and completely indemnify, defend and hold harmless
Landlord (or any party claiming by, through or under Landlord) from any and all
claims, judgments, damages, penalties, fines, costs, liabilities or losses
[including, without limitation: (i) diminution in the value of the Premises
and/or the Building and/or the land on which title Building is located and/or
any adjoining area(s) which Landlord owns or in which it holds a property
interest; (ii) damages for the loss or restriction on use of rentable or usable
space of any amenity of the Premises, the Building or the land on which the
Building is located; (iii) damages arising from any adverse impact on marketing
of space; and (iv) any sums paid in settlement of claims, attorney’s fees,
consultants’ fees and expert fees] which arise during or after the Term of this
Lease, as may be extended, as a consequence of such contamination. This
indemnification of

 

18

 

Landlord by Tenant includes, without limitations, costs incurred in
connection with any investigation of site conditions or any clean-up, remedial,
removal or restoration work required by any federal, state or local
governmental agency or political subdivision because of Hazardous Material
present in the soil or ground water on o£ under the Premises or the Building.
Without limiting the foregoing, if the presence of any Hazardous Material on,
under or about the Premises, the Building or the surrounding area(s) caused or
permitted by Tenant (or the aforesaid others) results in any contamination of
the Premises, the Building or the surrounding area(s), Tenant shall immediately
take all actions at its sole expense as are necessary or appropriate to return
the Premises, the Building and the surrounding area(s) to the condition
existing prior to the introduction of any such Hazardous Material thereto;
provided that Landlord’s prior written discretionary approval of such actions
by Tenant shall be first obtained. The foregoing obligations and
responsibilities of Tenant shall survive the expiration or earlier termination
of this Lease.

 

As used herein, the term “Hazardous Material” means any hazardous or
toxic substance, material or waste, including, but not limited to, those
substances, materials, and wastes listed in the United States Department of
Transportation Hazardous Materials Table (49 CFR 172.101) or by the
Environmental Protection Agency as hazardous substances (40 CFR Part 302) and
amendments thereto, or such substances, materials and wastes that are or become
regulated under any applicable local, state or federal law. “Hazardous
Material” includes any and all material or substances which are defined as
“hazardous waste”, “extremely hazardous waste” or a “hazardous substance” pursuant
to state, federal or local governmental law. “Hazardous Substance” includes,
but is not restricted to asbestos, polychlorobiphenyls (“PCB’s”) and petroleum.
Tenant shall be able to store and use normal office cleaning materials.

 

Landlord and its agents shall have the right, but not the duty, to
inspect the Premises -at any time and from time to time to determine whether
Tenant is complying with the terms of this Item 40. If Tenant is not in
compliance with this Item 40, Landlord shall have the right to immediately
enter upon the Premises to remedy any contamination caused by Tenant’s failure
so to comply, notwithstanding any other provision of this Lease. Landlord shall
use its best efforts to minimize interference with Tenant’s business, but shall
not be liable for any interference caused thereby.

 

Tenant shall not (either with or without negligence) cause or permit
the escape, disposal or release of any biologically or chemically active or
other hazardous substances, or materials. Tenant shall not allow the storage or
use of such substances or materials in any manner not sanctioned by law of by
the highest standards prevailing in the industry for the storage and use of
such substances or materials, nor allow to be brought into the Project any such
materials or substances except to use in the ordinary course of Tenant’s
business, and then only after written notice is given to Landlord of the
identity of such substances or materials. Without limitation, hazardous
substances and materials shall include those described in the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as amended, 42
U.S.C. Section 9601 et seq., any applicable state or local laws and the
regulations adopted under these acts. If any lender or governmental agency
shall ever require testing to ascertain whether or not there has been any
release of hazardous materials, then the reasonable costs thereof shall be
reimbursed by Tenant to Landlord upon demand as additional charges if such
requirement applies to the Premises. In addition, Tenant shall execute
affidavits, representations and the like from time to time at Landlord’s
request concerning Tenant’s best knowledge and belief regarding the presence of
hazardous substances or materials on the Premises. In all events, Tenant shall
indemnify Landlord in the manner elsewhere provided in this lease from any
release of hazardous materials on the Premises occurring while Tenant is in
possession, or elsewhere if caused by Tenant or persons acting under Tenant.
The within covenants shall survive the expiration or earlier termination of the
lease term.

 

19

 

Any non-compliance by Tenant with its duties,
responsibilities and obligations under this Item 40 shall be an “automatic” (no
notice of any nature from Landlord to Tenant being required) default of this
Lease (see Item 19).

 

41.           NOTICE TO OWNERS, PROSPECTIVE TENANTS AND
BUYERS OF REAL PROPERTY REGARDING “THE AMERICANS WITH DISABILITIES ACT”.  Please be advised that a Tenant of real property may be subject to the Americans With
Disabilities Act (the ADA), a Federal law codified at 42 USC Section 12101
et seq. Among other requirements of the ADA that could apply to your property,
Title III of the ADA requires Tenants of “public accommodations” to remove
barriers to allow access by disabled persons and provide auxiliary aids and
services for hearing, vision or speech impaired persons by January 26,
1992. The regulations under Title III of the ADA are codified at 28 CFR Part
36.

 

We
recommend that you and your attorney review the ADA and the regulations, and,
if appropriate, your lease, to determine if this law could apply to you, and
the nature of the requirements. These are legal issues. You are responsible for
conducting your own independent investigation of these issues. The Landlord
cannot give you legal advice on these issues.

 

42.           AMENDMENTS.  This
Lease contains the entire agreement between the parties hereto and may not be
altered, changed or amended, except by written instrument signed by both
parties hereto. No provision of this Lease shall be deemed to have been waived
by Landlord unless such waiver is in writing signed by Landlord and addressed
to Tenant, nor shall any custom or practice which may grow up between the parties
in the administration of the provisions hereof be construed to waive or lessen
the right of Landlord to insist upon the performance by Tenant in strict
accordance with the terms hereof. The terms, provisions, covenants, and
conditions contained in this Lease shall apply to, inure or the benefit of, and
be binding upon the parties hereto, and upon their respective successors in
interest and legal representative, except as otherwise herein expressly
provided,

 

The
parties each acknowledge that they have thoroughly read and understand this
Lease (to include its Exhibits and attachments) in its entirety, that they are
completely familiar with each, every, any and all of the terms, covenants,
provisions and conditions set
forth therein, and mat there are no other representations, promises, covenants,
assurances, conditions, statements, understandings, warranties or agreements
(collectively, “Representations”) concerning this Lease which do not appear in
writing therein. This Lease supersedes and revokes all previous negotiations,
arrangements, letters of intent, offers to lease, lease proposals, brochures,
Representations, and information or data conveyed, whether oral or in writing,
between the parties and/or their respective representatives or any other person(s)
purporting to represent either Landlord or Tenant. Each party acknowledges that
it has not been induced to enter into this Lease by any Representations not
expressly set forth herein. The parties further acknowledge that the terms and
provisions contained within this Lease have been fully, freely and fairly
negotiated by and between them.

 

20

 

IN
WITNESS WHEREOF, the parties, either for themselves or by and through their
undersigned, duly authorized representatives, have executed this Lease for the
purpose therein expressed.

 

	
  Signed,
  sealed and delivered

  in
  the presence of:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TENANT:

  	
   

  
	
   

  	
   

  	
  HR
  LOGIC, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
  /s/
  Joseph Bello

  
	
   

  	
  Witness 1 as to Lessor

  	
   

  	
  Name:

  	
  Joseph
  Bello

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Operating Officer

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Witness 2 as to Lessor

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LANDLORD

  EDGEWOOD
  GENERAL PARTNERSHIP

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
  /s/  David Henry Simon

  
	
   

  	
  Witness 1 as to Landlord

  	
   

  	
  Name:

  	
  David
  Henry Simon

  
	
   

  	
   

  	
  Title:

  	
  President,
  Daper Tampa, Inc., a General

  
	
  By:

  	
   

  	
   

  	
   

  	
  Partner
  of Edgewater General Partnership

  
	
   

  	
  Witness 2 as to Landlord

  	
   

  	
   

  	
   

  
						

 

21

 

EXHIBIT A

PREMISES

 

EXHIBIT B

LANDLORD’S WORK

 

EXHIBIT C

BUILDING RULES AND REGULATIONS

 

EXHIBIT D

LEGAL DESCRIPTION

 

 

Exhibits are available
upon request

 

22

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00062-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00062-of-00352.parquet"}]]